Eastern Visayas State University

College of Business and Entrepreneurship

Tacloban City

PAPER II
In
PROJECT MANAGEMENT
(OMP 413)

Prepared by:

Group 1
BSOA 4B
BARCOMA, JEVALYN

BARROSA, CARLO

BARTOLOME, RONALYN

BASILIO, KAREN

BOHOL, CLAIRE RITA

BONIOL, RALPH DALE

CABRILLAS, RACHEL

CAGNAN, PAULO

Prepared to:
Prof. Rose Anna L. Refuerzo, DM
Subject Professor
I. ISSUE/OPPORTUNITY IN SAN MIGUEL CORP.
San Miguel Corporation is no doubt one of the oldest and largest companies in the
Philippines. In its 100-year history, it has established a clear leadership position in the
Philippine beer industry, as well as having made successful forays into other related and
unrelated product areas. The company’s success proves their strength, capabilities and
resources that can leverage to build a sustainable competitive advantage in the
marketplace. Despite being in the top spot in beer industry, the said corporation also
encounter some issues and circumstances which lead them in creating new opportunities.
Like, Managing Regulations and Business Environment where San Miguel operates in an
environment where it faces numerous regulations and government diktats. In International
business, Risk management areas, the firm needs to navigate environment by building
strong relationship with lobby groups and political network. Next, the E-Commerce and
social media Oriented Business Models where E-commerce business model can help
San Miguel to tie up with local suppliers and logistics provider in international market.
Social media growth can help San Miguel to reduce the cost of entering new market and
reaching to customers at a significantly lower marketing budget. It can also lead to crowd
sourcing various services and consumer-oriented marketing based on the data and
purchase behavior.
Another is the Increasing Standardization where SMC Succession can leverage
this trend to reduce the number of offerings in the market and focus the marketing efforts
on only the most successful products. Lastly the Control Measures for COVID-19
Pandemic; the global pandemic and the wide-scale economic disruption caused by the
lockdown has changed operation of the SM. The Covid-19 crisis disproportionately
affected SMS’s workers, multiplying the burden on daily wage earners. The pandemic's
impact on businesses brought a pressing issue to San Miguel Corporation. It has become
one of the most challenging periods in our nation’s history and this time, this can reduce
the potential of success of SMC Succession.
 Grid Analysis: Showing Unweighted and Weighted Assessment of How
Issues/Opportunities Satisfies each factor
Figure 1: Unweighted Assessment of How Each Issue Satisfies Each Factor

Most
Customer
Factors: Pressing Cost Sustainability Total:
Care
Matter
Weights:
Managing Regulations
and Business 1 0 2 2
Environment
E-Commerce and Social-
media Oriented Business 0 2 1 2
Models
Increasing
2 0 0 2
Standardization
Control Measures for
3 4 5 4
COVD-19

Figure 2: Weighted Assessment of How Each Issue Satisfies Each Factor

Most
Customer
Factors: Pressing Cost Sustainability Total:
Care
Matter
Weights:
5 4 5 2
Managing Regulations
and Business 5 0 10 4 19
Environment
E-Commerce and Social-
media Oriented Business 0 8 5 4 17
Models
Increasing
10 0 0 4 14
Standardization
Control Measures for
15 16 25 8 64
COVD-19

As you can see in the table, it appears that the Control Measures for COVID-19
is the most pressing issue that needs to be address.
 II. PROPOSED ALTERNATIVE COURSES OF ACTION WITH DESCRIPTIONS
Table 1: Multicriteria Analysis Table

Comparison of San Miguel Corporation Control Measures for COVID-19 Pandemic

Criterion 5
Criterion 1 Criterion 2 Criterion 4
Criterion 3 rating
rating rating rating
rating Average
(Cost of (Customer rating
(Feasibility of (Eases in
(Sustainability) relation and
Implementation) Implementation) Coordination)
satisfaction)

Alternative 1

Differentiation
8 9 10 8 10 9
Strategy

Alternative 2

Centralized 8 10 9 8 10 9
Digital
Management
System
Alternative 3

Cross- 6 7 9 8 10 8
functional
response
Strategy
Alternative 4

Production 7 7 6 5 8 6.6
and
Distribution
strategy

Ratings: 1–2 = very low, 3–4 = low, 5–6 = medium, 7–8 = high, 9–10 = very high
 Table 2: Multicriteria Analysis (with Weighted Criteria)

Comparison of San Miguel Corporation Control Measures for COVID-19 Pandemic

Criterion 5
Criterion 1 Criterion 2 Criterion 4
Criterion 3 rating
rating rating rating
rating Average
(Customer rating
(Feasibility of (Cost of (Eases in
(Sustainability) relation and
Implementation) Implementation) Coordination)
satisfaction)

Alternative 1
.30 .20 .15 .15 .20
Differentiation
Strategy
Alternative 2

Centralized 8 x .30 = 8 x .20 = 10 x .15 = 9 x .15 = 10 x .20 = 8.85

Digital 2.40 1.60 1.50 1.35 2.0
Management
System
Alternative 3

Cross- 8 x .30 = 8 x .20 = 9 x .15 = 10 x .15 = 10 x .20 = 8.85

functional 2.40 1.60 1.35 1.50 2.0
response
Strategy
Alternative 4

Production 6 x .30 = 7 x .20 = 9 x .15 = 8 x .15 = 10 x .20 = 7.75

and 1.80 1.40 1.35 1.2 2.0
Distribution
strategy

Ratings: 1–2 = very low, 3–4 = low, 5–6 = medium, 7–8 = high, 9–10 = very high
 As with other industries, the food and beverage sector
are feeling the impact of the coronavirus outbreak in a
number of ways. COVID-19 jolted the consumer-packaged
goods industry in ways that neither retailers nor
manufacturers were prepared for.

Unparalleled demand has led to panicked shoppers,

massive out-of-stocks, and starkly empty shelves in retailers
throughout the country. On top of that, a disrupted and distracted workforce across the
entire supply chain is making it very difficult to ensure product availability to worried
consumers. For instance, San Miguel Corporation has been the Philippines’ leading food
and beverage company. It was originally founded in 1890 as a single brewery in the
Philippines. The Company has since then transformed itself from a beverage, food and
packaging business into a diversified conglomerate with businesses in fuel and oil,
energy, infrastructure, and real estate industries. The Company's product portfolio
includes beer; spirits; non-alcoholic beverages; poultry; animal feeds; flour; fresh and
processed meats; dairy products; coffee; various packaging products; a range of refined
petroleum products; and cement.

The global pandemic and the wide-scale economic disruption caused by the lockdown
has changed the world. The Covid-19 crisis disproportionately affected millions of
Filipinos living below the poverty line, multiplying the burden on daily wage earners and
those already struggling to make ends meet. The pandemic's impact on businesses
brought a pressing issue to San Miguel Corporation. It has become one of the most
challenging periods in our nation’s history.

Between a spike in demand and disrupted and distracted workforces, there are
some unique challenges confronting the consumer-packaged goods industry, particularly
the food and beverage companies during this pandemic outbreak. To help navigate this
trying time, we have mounted alternatives to deal with the possible responses to the
current crisis. Some of the many advices we have compiled are:
 • Differentiation Strategy
• Centralized Digital Management System
• Cross- functional response Strategy
• Production and Distribution Strategy

III. BEST ALTERNATIVE COURSE OF ACTION

Among these four (4) alternatives stated above, the Differentiation Strategy and
Centralized Digital Management System are the two alternatives that has a high rating
analysis. The Centralized digital information management system is used to support and
promote cooperation in the building process. This strategy is helpful during these trying
times because its Internet-based. Meanwhile the differentiation strategy, it is an approach
that businesses develop by providing customers with something unique, different and
distinct from items their competitors may offer in the marketplace. The main objective of
implementing a differentiation strategy is to increase competitive advantage. These two
alternative strategies touch every customer in a suitable and affordable way and these
serves as an actionable way to reach the company’s goals during these trying times.