Smc_Case_Study

I Background of the Study In the early 1980s 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. Therefore, they 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. 1982. The time of Marcos regime. In which the control of the ownership has been turned political. Rapid changes to environment merely occurred. II Objectives * To determine loopholes in the planning process. * To develop a strategy for an efficient planning process. * To decide on the need for developing a planning manual for the planning process. III Main Problems * the planning process is much time consuming which involved more work than one might reasonably expect of people;  * the two companies emphasized in developing the objectives and strategic programs led to past strategies outweighing the new strategies;  * There were some Business Family and Element Teams who were asking for "hand-holding" to guide to the process. IV Solutions * Constitute a more active team of managers in the planning process, develop new strategies based on the past, and provide planning manuals to all Business Family and Element Teams. In order for the process to be easily done, there’s really a need to select on the best superiors in the team. They should be flexible enough in solving any problems encountered by the company and for designing strategic plans to be implemented which could really ease the problem. Experience could be a best resource for developing new strategy, therefore, any substance should let go the past and get something that would help in developing any plans. Furthermore, with the help of alternative, managers will be more active in the organizations and learn firsthand how the organizations operate. The more active managers are within the organization, the more aware they become of the inefficiencies and ineffective aspects of the operations. * Formalize a decision team, formulate all-new strategies, and resist giving plan manuals. New strategies may lead to enhanced performance. The formation of a decision team would lead to better decision making and plan implementation. Innovation of new ideas lead to greater employee motivation and participation Experience could be a best resource for developing new strategy, therefore, any substance should let go the past and get something that would help in developing any new plans. The two companies should be innovative enough in any strategic plans. They should not focus on their past failure strategy but rather base the strategy to be developed on its’ lapses. The two companies should have a manager who could really contribute to the development of the firm. * The two companies should warn themselves and think of the possibilities and consequences that their firm will encounter if all the things needed is not provided. The teams in this firm seem to have been in a trouble of getting and acquiring any plans for the development in the firm. The bodies should be guided in making their work efficient. Providing hand holding for the family teams could really help in such a way that: * The capabilities and skills of the personnel will be evaluated; * The performance efficiency and effectiveness of the personnel will be determined; * Plans are materialized and initiated at a small time frame; * Loopholes within the organizational strategy, goals, and mission will be resolved. V Recommendation The SMC calls for a careful planning and evaluation of the firm. I do recommend that each personnel should take their part in the business for it to have a development. The bodies of the group should be aware that they all play the significant role in the business, maybe not in the same way, but in the same purpose. The development of new strategies must include the development of a planning manual in order to maintain the efficient and effective performance of the organization and the prevention of “hand-holding” by the different family and element teams. Despite not having the luxury of time in making decisions, a more active team of managers would generate better decisions made through employee cohesion, collusion and synergy. Since the processes in an organization are cycles, knowing gaps within the planning process would lead to more efficient planning and in time, the organization will reach the apex of its operations. San Miguel Corporation and A. Soriano Corporation Case Study