1.

The role of the top management and the importance of company policy

Top management is responsible for establishing policies, guidelines and strategic

objectives, as well as for providing leadership and direction for quality management
within the organization. It should also establish those responsible and hold them
accountable for a wide variety of management system processes

2. The total environment of the firm

Definition of Business Environment is sum or collection of all internal and external

factors such as employees, customers needs and expectations, supply and demand,
management, clients, suppliers, owners, activities by government, innovation in
technology, social trends, market trends, economic changes, etc.

3. Industry analysis – positioning the firm in a specific environment

Industry analysis reviews the economic, political and market factors that influence the
way the industry develops. Major factors can include the power manipulated by
suppliers and buyers, the condition of competitors, and the possibility of new market
entrants.
Strategic Leadership And The Industry Environment Analysis
1. Reading trade journals.
2. Attending trade shows.
3. Attending industry networking functions.
4. Open conversations with your. Customers and their competitors. Suppliers and their
competitors. Participation on industry boards. Research on the internet.

4. Value chain

Value chain analysis is a means of evaluating each of the activities in a company's value
chain to understand where opportunities for improvement lie. Conducting a value chain
analysis prompts you to consider how each step adds or subtracts value from your final
product or service

5. Corporate strategy and long-range planning

Long-range planning is usually considered to assume present knowledge about future

conditions. Strategic planning, however, assumes that your organization must be quick
 to respond to a dynamic, changing environment, which may require changes in the
future.

6. Key aspects of corporate organization, operating policies and control

The major characteristics of a corporation are separate legal existence, limited liability
of stockholders, transferable ownership rights, ability to acquire capital, continuous life,
corporation management, government regulations, and additional taxes.

Operating Policies
 promote delegation of authority.
 promote consistency and reduce arbitrary bases for decisions.
 support continuity.
 increase the ability of the different levels of management to better cooperate with each
other.

Elements of a good Control System

 1) Feedback.
 2) Control must be objective.
 3) Prompt reporting of deviations.
 4) Control should be forward-looking.
 5) Flexible controls.
 6) Hierarchical suitability.
 7) Economical control.
 8) Strategic control points.

7. General policies of administration (International resistance Company Philadelphia,

Pennsylvania)

Administrative policies inform employees of the office's rules, the business's

expectations and values, and HR-related issues such as paid time off and health
insurance eligibility. Administrative policies must cover a wide array of needs within the
business and serve as a guide for how it operates.

8. Categories of functional operating policies

 Functional Policies are prepared for different functions such as production, marketing,
finance, personnel etc. Functional policies are decided keeping in view the
organizational policies. These policies help in coordination of efforts of different people.
These are those policies which are initiated by the managers.

9. The strategy of using foreign investors and licensees: A Philippine perspective

POTENTIAL BENEFITS THAT CAN BE DERIVED FROM COOPERATION WITH A FOREIGN

FIRM

Company Goals: POTENTIAL BENEFITS Access to the patent rights or manufacturing

rights Trademark Technical service agreement Management contract Access to foreign
marketing channels Additional capital investment Protection from nationalization Invest
in a foreign joint venture.

Access to the patent rights or manufacturing rights The Philippine company may want
access to the patent rights or manufacturing rights for certain types of product.

10. A profile of Philippine management

Management style tends towards the paternalistic as is often found in strongly hierarchical
cultures.

However, managers need to be aware of certain strong Filipino characteristics, which underpin
personal relationships within the country.

Firstly, people are extremely careful to ensure that others do not suffer embarrassment or any
sense of shame (hiya) as a result of their own actions or their inability to meet the expectations
of others. It is considered to be very bad behaviour to criticise another in public, as this is the
greatest insult that can be given. To be openly criticised in public results in a loss of self-esteem
and personal dignity. Any attack on an individual’s self-esteem may have to be revenged.

Therefore, managers are keen to treat subordinates with respect whilst, at the same time,
maintaining the dignity of the position of boss. Instructions will be given clearly and precisely
and subordinates will be expected to follow those instructions with little or no discussion.

Secondly, relationship bonds run deep in Filipino culture and the manager expects loyalty. In
return for this loyalty the boss will look after the interests of those subordinates. It is very much
a reciprocal arrangement.
 11. Corporate Strategy
Corporate strategy is a unique plan or framework that is long-term in nature, designed with an
objective to gain a competitive advantage over other market participants while delivering both
on customer/client and stakeholder promises (i.e. shareholder value).
12. Case study 1
 Generoso Pharmaceuticals & Chemicals, Inc.

I. Summary Mr. David Generoso is the President of Generoso Pharmaceuticals and Chemicals
Inc. He married Elizabeth Reyes, a nurse and a certified world accountant and they have been
blessed with 5 children. After 5 years of combing the Central Luzon region, in 1978, David
established a company called Generoso Pharmaceuticals and Chemicals (GPC) with Elizabeth
and a business associate Mr. Rafael Buenaventura, the team do up shop at the Generoso
residence in Tarlac. An initial capitalization of P300 started the business with a dozen bottles
from the pharmaceutical firms which they had been machine accessible with before. David
initial success in his attempt on manufacturing chemicals on veterinary medicine encouraged
him to start his own specify of pharmaceutical in 1983. There is a fast turnover of participants in
the industry. It is very difficult to expand. Small companies always constantly struggle the
stigma of being a local company with inferior quality. Small manufacturers tend to cost cut in
production costs in the absence of economies of scale. GPC suffers in their costly promotion
expense with buyers including doctors, pharmacists and hospitals. In 1988, the American
principal offered his plans to David of GPC engaging in the contract manufacturing of
pharmaceutical products for both the domestic and export markets. The proposed project was
to compound locally all products that it will manufacture and sell, importing only the active
ingredients and bulk materials that it is unable to produce locally. The American principal
dropped his plans to David which came in time with the Generics bill. The only thing that made
David sad is that they need to hire a German expatriate to oversee the problem and the
additional budget for the project. No Filipino chemist who specialize the technology of the
project could qualify for GPC to remain competitive. That is why they need to hire German
expatriate to oversee the project. The lack of qualified chemists is an industry problem for
which GPC has not been spared. The company was now a going concern valued at P40 million.
The proposed project would cost approximately P135 million.

II. Statement of the Problem The problem on this case study is on how the Generoso
Pharmaceuticals & Chemicals, Inc. (GPC), determine the possible actions should take in order to
stay in competition, where to find additional capital, on how to hire German emigrant to
oversee the project and how to produce such amounts of products needed in the local and
international market at the minimum of cost.

III. Alternative Courses of Action

In the local market, the project will position itself as a specialty pharmaceutical
manufacturer which can manufacture products not currently available from the industry’s
contract manufacturers. 

The need to hire a German expatriate to oversee the problem and the

additional budget for the project. No Filipino chemist who specialize the technology of the
project could qualify for GPC to remain competitive 

The company was now a going concern valued at P40 million. The proposed

project would cost approximately P135 million.

SWOT Analysis Strength

Liquidity of the Company A wide supply for raw materials Ready for expansion Optimal and
better product quality A good leader A conservative cash management Reputation of good
customer service A good relationship of partnerships with suppliers and marketing allies.

Weakness

Less quality of their products Expansions are too expensive Lack of additional capital and
financial stability Poor management Capital constraints to finance future projects

Opportunities

American principal proposed project to GPC

Generic Bill Act advantage to the firm

Business expansion

Ability to grow rapidly in the business industry

Opening to exploit emerging new technologies

Threats

Risky project because it’s too costly

Fast turnover of participants and competitors in the industry

Entry and increasing rivalry of new competitors

Costly regulatory requirements

Stability of the economy

IV. Recommendation

We, therefore recommend that the best solution of this case study is to accept the proposal of
American principal of the project for Generoso Pharmaceuticals & Chemicals, Inc. in order for
them to stay in competition and reputation and to be able to stand and grow in the business
industry. The company can borrow financial from creditors or other financial intermediaries
that will provide the needed budget. The company will hire experienced German Chemists, who
can make the company stays in the competition and can achieved high quality of products.

 Business world industry report: Pharmaceuticals

An efficient distribution is the lifeblood of a business, it can radically bolster a vendor

financial performance and stand between success and marginalization. It can be achieved
only by promoting inclusive leadership, cross-functional collaboration, lateral thinking and
data-driven decision making. The corporate culture is still one of the core predictors of a
successful transformation initiative. For this reason, we need to foster an environment
where all stakeholders are incentivized to bring new ideas, develop sound business
judgment, take risks (especially on reversible decisions), adopt a robust and action-oriented
decision-making approach and privilege speed to bureaucracy. Opinions might differ on
several topics but the organization should be perfectly aligned on values, vision and business
goals. The goal, let’s not forget, is to create an environment where suppliers and their value-
chain partners can thrive, where a win-win approach can create prospects for growth and
profitability for all parties. Well managed Distribution Channels not only improve the short-
term financial performance, by reducing costs and increasing sales but also play a crucial role
in shaping a dynamic and well-functioning ecosystem. They lead to an enhanced competitive
position, an effective execution of the go-to-market plan, an efficient allocation and use of
resources and more enlightened and engaged teams.

13. Case study 2

 San Miguel Corporation and A. Soriano Corporation

San Miguel Corporation and A. Soriano Corporation Background of the Study In

the early 1980 the San Miguel Corporation (SMC) and A. Soriano Corporation
(ANSCOR) Group of Companies, under the leadership of Andres Soriano, Jr.
addressed a long felt need for an effective formal planning system for the two
companies. According to Soriano, the companies had developed their budgeting
and long-ranged planning systems several years earlier but, despite the many
advantages these gave them they still were not satisfied with their ability to
 respond to the rapid changes in the environment around them. The therefore,
search for a process that would enable them to upgrade their planning
capability. In November 1982, Dr. Lorange addressed a joint dinner-meeting of
SMC and ANSCOR Group and shares his insights on the implementation of the
strategic planning of the two companies. Following are excerpts from an article
prepared by Lorange during the meeting. Time Frame 1982 The time of Marcos
regime. In which the control of the ownership has been turned political. Rapid
changes to environment merely occurred.

Viewpoint
A. Andres Soriano He has fully supported the Strategic Plan and encourages
employees to participate in the implementation of the plan. He was convinced
and believed that the Strategic Plan to be implemented will largely help the
company to solve its problem regarding environmental changes and the
competition.
B. Dr. Peter Lorange Dr. Peter Lorange was glad about how the company
responds to the Strategic Plan he proposed. The Strategic Plan became
successful according to him because it gathered support not only from the Top
Management but also from the lower level of management. Statement of the
Problem The company implemented a new strategic planning to answer the
problem. The problem is how the company asses the success of the strategic
plan in order to develop the implemented system.

14. Case study 3

 Henry Sy and John Gokongwei

 A case study about Henry Sys and John Koenig ay Danna-palatal A case study
about Henry Sys and John Seignior’s success. Case Background Henry Sys and
John Koenig were both born very poor. This situation, one may conclude, served
as a blessing for the two most celebrated entrepreneurs in the Philippines on
their Journey to wealth. Shoeless and with only clothes on his back, Henry Sys
started his entrepreneurial career by tending at his father’s sari-sari store n
Cube. But Henry dreamed of something big for his future.
 Headed of having his own business to provide him enough money.
 In 1945, he put up a small shoe store in Carried, Quip. From then on, that
humble shoe store became Shoemaker Commonly known as”SW). Since there
was a constant pouring of capital back into this venture, he then expanded into
textiles household goods and was then opening outlets to selected parts of the
country, centering at thunderstorms. On the other hand, John Go (“kingwood”
meaning “bright” was suffixed later to his name later)started his road to success
 by hawking wares in Cube. This led to his dream of building his own retailing
kingdom.
 He first started by trading and manufacturing Ron starch in 1955 and has soon
expanded into supplying groceries and animal foodstuffs in bulk. Later, he
ventured also in textiles, banking and realest, hotels and shopping complex
developments. The abrupt expansion of the enterprises of the two business
tycoons marked the start off period of transition for the business empire built
over the past three decades by these two businessmen. Since then, Henry Sys
has always been proud that his SMS outlets had been gradually upgrading larger
commercial complexes without drawing on bank credits.
 John kingies also managed to put projects without having major borrowings. He
had only relied to the big sums of cash Universal Reapportioning and
Commonwealth s Corporation were generating and from the support of his
relatives associates.
 Strengths 30th Henry Sys and John Koenig are health conscious. They value
health more than they value their ventures. Henry engaged not in any forms of
vices while John has already quitted smoking. Being Filipino-Chinese, both have
good business strategies (I. E. , no major borrowing), as one may identify this
particular characteristic f their race.
 This helped them put up projects without relying to bank credits. It is important
in a business to lesser your liabilities and increase your assets. As for their
businesses, the “innovation technique” they presented towards their shopping
malls for example, attract people and may somehow feel that they, the
customers, are Just step behind their needs and wants. Koenig History Universal
Robins Corporation (ARC) traces its beginnings all the way back to 1954. Onion
Koenig was doing very well then as a trader/importer.
 He had learned the read when his tanner died bettor the war, and and worked
nard through the war and postwar years to prosper. However, while he thrived,
he took a long hard look at his company, and correctly predicted that trading
would remain a low-margin business. On the other hand, a successful
manufacturer controlling its own production and distribution would command
more profitable margins. Mr.. John decided to construct a corn milling plant to
produce glucose and cornstarch, Universal Corn Products (CUP), the first linchpin
of the company that would become he ARC we know today.
 For a time, business was good. However, Mr.. John was still looking ahead,
working with an eye towards the future. While the business was doing ‘err well,
it was producing essentially a commodity, which a customer could easily access
elsewhere.
 To stay ahead in the game, Mr. John had to diversify by producing and marketing
his own branded consumer foods, similar to the multinational companies in the
country like Nestle and Procter & Gamble. In a sense, he wanted to put up the
first ‘local’ NC, borne out of their best practices. Thus, in 1961, Consolidated
Food Corporation was born.
  Their first ‘home run’ product was Blend 45, the first locally-manufactured coffee
blend, dubbed as the “Piano coffee”. This became the largest-selling coffee
brand in the market, even beating market leaders Cafe© Purr and Unsafe. After
coffee came chocolates. Nips, a panned chocolate was staple of Filipino
childhood. In 1963, Robins Farms started operations, beginning Ninth poultry
products. This was also the beginning of the vertical integration of the Koenig
businesses, as the farms would be able to purchase feeds from CUP in he future.
 Later that decade, Robotics Laboratories would be put up, to cater to the
determinate needs of the farms businesses. Robins Farms expanded as it
entered the hogs business in the latter part of the ass. 1966 saw the
establishment of Universal Robins Corporation, which pioneered the salty snacks
industry through Chic Curls, Choppy, and Potato Chips, under the “Jack ‘n Jill”
brand. Other snack products would follow over the years, as the company
successfully introduced market leaders like Pretzels, Opiates, and Max. The
coming decades saw more acquisitions and expansion.
 In the early sass, the family entered the commodities business through the
formation of Continental Milling Corporation, for flour milling and production.
Rhea late sass brought the acquisition of three sugar mills and refineries, under
ARC Sugar. These two businesses provided stable cash flows, and allowed for
further derelict integration in the supply chain, to help ARC weather any
volatility in the cyclical commodities markets. In line with this strategy, the late
sass saw the entry of ARC into the plastics business, through ARC Packaging.
 While the businesses became more diversified, the companies were slowly
integrated in order to streamline and minimize costs. In 2005, the present
structure of the group was completed.
 All the different companies are now organized under the Universal Robins
Corporation umbrella, divided into 3 focused groups: the Branded Consumer
Group, comprised of BAG Domestic (including packaging) and International the
Agro-Industrial group, comprised of Universal Corn Products, Robins Farms, and
Robotics and the Commodities group, with the Sugar and Flour divisions.

15. Case study 4

 Philippine Journalists, Inc.

1. Time Context – October 20, 1972 (History and start of the experience of the company under
martial law)
2. View Point – Mr. Eduardo B. Olaguer (Chairman of the Board and CEO)
3. Major Policy Statement - The Philippine Journalist Inc., is a publishing company of group of
journal such as People’s journal, Journal Tonight etc. it is known for local and international
standards in publishing journals, and aims to equal other company not only locally but also to
other parts of the world by the following years to come.
4. Current Operational Policies
a. Management – As what the case shows, Poor management that resulted in many problems
for the company especially in the event of the Martial Law. b. Marketing – The PJI is a company
known for publishing different kinds of journal, which is why advertising is not a big issue that
need to be discussed. Well in their case, because of the martial law perhaps this was the
greatest hindrance to the future plans of the company. c. Finance – From the history of the
company, it has shown the poor level of stocks of the company. This is mainly because of the
Martial law that resulted to much more problems such as: unavailability of stocks, no transfer
of book and no stock certificates were issued at that time. d. Operations – The operations of the
business was normal ever since the martial law started. Publishing different journals not only
locally but also internationally. e. Human resources – The company shows basic information
about the structure of a business enterprise that compose the top, middle management and
the rank and file. 5. Statement of the Problem – How will the PIJ resolve the DBP loan exposure
and what are the steps to be undertaken to prevent things like this to happen again?
6. Statement of Objectives
a. Short-term objectives
i. To be able to balance the assets of the company that will suffice to its liabilities
ii. To solve the negative book value of some particular
PJI Point of view

We analyzed this case based on the point of view of the chairman of the board and chief
executive officer of PJI that the privatization of the company from the standpoint of the
government economic recovery should enjoy priority over the recovery of sequestered shares
as ill-gotten wealth.

Time Context
As of March 31, 1988, the capital deficiency has been reduced to 92.7 million resulting from
profitable operations and with a much improved liquidity position despite the heavy interest
burden on the DBP loans.

Case analysis
The privatization of PJI is one of the highest priorities or it will mean a substantial addition to
the government and a further boost to the economic recovery program of the country indeed,
it is more urgent and deserves greater priority and attention then the recovery of the alleged ill-
gotten wealth of Benjamin Romualdez, who received directly and indirectly cash funds from PJI
and the prosecution of the former DBP governors who approved the questionable PJI loans to
the damage and prejudice of DBP and the National Government, all in violation of the anti-graft
and corrupt practices act.