MBA106-Business Policy

Regina Gulo Pacho

Activities and Assignment 2

Strategic Management guidelines: SM PRIME HOLDINGS, INC.

I. Outline of Organizational Structure at least 3 Departments (what are the

responsibilities)

Chairman and President

Chief O perating O fficer

Finance and
Internal Audit Marketing O perations Legal Affairs Investor Relations
Administration

Department Functions and Responsibilities

Finance and Administration  Bookkeeping-Involves the day to day

recording, analysis and interpretation of
the company’s financial transactions
 Financial Reporting and Control-
Recorded transactions are summarized
into various reports such as balance sheet
and income statement, these are reported
to both internal (e.g management) and
external (e.g BIR, SEC) users.
Monitoring and control of assets and
other accounts are done using these
reports
 Tax and Compliance-Income taxes,
output tax and other taxes are remitted
accurately and on-time to ensure
compliance to Philippine laws and
regulatory bodies like the Bureau of
Internal Revenue.
 Treasury and Working Capital
Management-Cash is the most liquid
asset and for this reason, it should be
closely monitored to anticipate for any
shortage or of any short-term investment
opportunities. This is done through bank
reconciliation, cash position reports, cash
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forecasting, etc.
 Capital Budgeting-Potential major
projects or investments are to be
evaluated prior, its projected cash inflows
and outflows, and this is done through
capital budgeting which is one of the
functions of the finance department
 Assisting management in making key
strategic decisions- Strategic financial
planning and analysis are also done from
time to time to assist management in
making major decisions, like public
offering of stocks, bond issuance, etc.

Internal Audit  Evaluates the effectiveness and efficiency

of internal controls
 Evaluate operational procedures, risk
management and governance processes
 Determine compliance with policies and
procedures
 Evaluate compliance with rules and
guidelines established by regulatory
agencies
 Review the strength of code of ethics and
actions to handle violations
 Verify physical assets (like surprise cash
count of petty cash fund custodians) and
inventory
 Investigate employee complaints and
alleged fraudulent activities
 Assess compliance with accounting
standards and conduct additional review
on accounting practices which the
external auditors may not focus on

Marketing  Mainly responsible in promoting the

company’s positive image and its
products/services
 Reach out to customers, existing and
prospects, and even to investors and to
the community where the company
operates
 They serve as the media liaison-e.g
tasked on advertisements (print
ads/digital media)
 Conducts customer and market research

Operations  They are tasked in ensuring the smooth

operations of the company and that its
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products and services are of utmost

quality
 Administration of business practices to
create the highest level of efficiency
possible within the company
 They are closely monitoring the
conversion materials and labor into goods
and services as efficiently as possible to
maximize the profit of the company
 They try to balance costs with revenue to
achieve the highest net operating profit
possible

Legal Affairs  Drafting and reviewing of contracts

 Provides legal advice to the company
 Interprets laws and rules affecting the
operations of the company; prepares
contracts and instruments to which the
company is a party, and interprets
provisions of contracts covering work
performed for the company by outside
parties
 Assists the company in the promulgation
of rules governing the activities of the
company
 Answers legal queries from the public-
customers, suppliers, etc.

Investor Relations  They represent the company to investors

and represent investors to the company
 Provide financial information to investors
in a timely and accurate way
 Provide nonfinancial data to support
company valuations
 Observe the rules of securities and
exchange commission
 Present investor feedback to company
management and board
 Communicate effectively and honestly
with investors
 The department keeps the lines of
communication and information open
between investors and the company
 Coordination of meetings and
conferences for shareholders and the
press
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Regina Gulo Pacho

II. Add your existing Mission / Vision (from previous assignment) if you don't have
create another one

Selected Company: SM PRIME HOLDINGS, INC.

Vision:

To build and manage innovative integrated property developments that are catalysts for a
better quality of life.

Mission:

We will serve the ever-changing needs and aspirations of our customers, provide
opportunities for the professional growth of our employees, foster social responsibility in the
communities we serve, enhance shareholder value for our investors and ensure that
everything we do safeguards a healthy environment for future generations.

III. Define the values of the company

 Accountability: It is the acknowledgment and assumption of responsibility for

actions, products, decisions, and policies, and to disclose the results in a transparent manner.
The company ensures that it complies with every stipulation in any contract it entered into,
with customers, employees, suppliers, investors, banks and other parties. It follows rules and
regulations as mandated by the Philippine laws and other regulatory bodies.

 Integrity: It is the quality of fairness and the practice of being honest and showing a consistent
and uncompromising adherence to strong moral and ethical principles and values. The
company is fair and just in all of its undertakings, like, it only charge to customers equitable to
the cost of products/services that it renders and a fair mark up, it compensates the employees
what is due to them- that is, commensurate to their service performed, it delivers what it has
committed, among others.

 Vigilance: The company exercises alertness and give careful attention to what is happening or
to what will happen, in order to notice any possible danger, so that as much as possible, it can
be avoided or at the least, damage will be minimized. The company ensures that all of its raw
materials are of high quality; however, in situations where materials below standards are
noticed to have been purchased, the company will pull out those materials to ensure that they
will not be utilized in the construction; consequently, danger will be avoided. Also, the
company ensures that its work environment employs equipment and furniture of utmost
standards so that the safety and welfare of employees are secured.
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IV. Create a SWOT Analysis for Internal and External use our templates (Define at least
2 (two) analysis for Internal and External
STRENGTHS
Internal Strengths
The company has a strict hiring process to
ensure that its personnel are qualified and
competent, thus, quality of products and
services are most likely be secured
The company is highly stable- financially
and in terms of its status in the market.
Since it has good finance standing, the
company can pay off its due obligations on
time, and can ut into investment its spare
money
The company has a well-established set of
guidelines, in terms of finance,
administration, marketing and operations
WEAKNESSES
Internal Weaknesses
Compensation and other benefits might not
be enough as perceived by other employees,
and this might result to them resigning from
the company
Since the company has already been in the
market for quite a while, some employees
might tend to be lax and complacent with
how they carry out their functions, that they
might tend to be contented and not seek for
further improvements and innovations, like
automation of reports instead of manually
doing them, etc.
Real estate is not a liquid investment.
Constructing and selling the same requires a
lot of papers and longer process
OPPORTUNITIES
Internal Opportunities
Technology is rapidly changing and this
even affects how customers want their
products and services to be delivered and to
this, the company can very well take the
opportunity of adapting to this change and
add value to its existing offerings
Digital marketing is a trend nowadays, and
External Strengths
Potential applicants usually are highly
qualified and are well-experienced
professionals
The company is proven to have the capacity
to adapt to changes- in technology, laws,
regulations and even to changes in
customers’ preferences
The company has a good branding, this is
achieved by having an active promotion and
digital marketing
External Weaknesses
Compensations to and other benefits of
employees as offered by competitors might
be better and this could attract the
company’s employees to move to other
companies
The company has been dealing with various
suppliers. And this might result to dealing
with the existing ones only, thereby
eliminating the opportunity of dealing with
potentially- better suppliers
Since investing in a real estate company is
risky and return will be longer, some
investors might not be interested in
investing anymore
External Opportunities
To tap the international market especially
those with emerging economies
To enter into less urbanized areas to position
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this can also be utilized by the company to
better promote its products and services, at a
lower cost compared to the traditional
promotion and marketing schemes
With the companies good financial standing
and being highly liquid, the company has
the opportunity to use its excess cash in
short-term investments which will further
increase its balance
THREATS
Internal Threats
With the growing number of real estate
companies, employees are sometimes
tempted to resign and move to another
company to look for higher compensation
and better career opportunities
Rapid increase in the cost of materials,
goods and supplies. This might affect the
finances, like how products are priced,
which in turn might affect the willingness of
potential customers to buy. A drop in sales of
real estate properties will have a drastic effect
in the finances of the company, as well as to
its image
Economic crisis which might affect the buying
capacity of customers, especially that
investment in real estate company requires a
large sum of money.
itself, this can be done by acquisition of or
joint venture with smaller construction
companies to widen its market
The increasing demand for integrated
communities of work-live-play. The
company can further expand its market to
highly urbanized locations which have a
growing number of offices/work
establishments. Traffic is a fact to almost all
cities, having your home near your work
location will be very attractive to customers
and will have a wide acceptance
External Threats
Potential adverse political situations or crisis
like war, which might affect the operations of
the company, e,g stoppage in the construction,
damage to property and the likes
Occurrence of natural calamities like
earthquake and floods which might affect the
operations of the company, e,g stoppage in
the construction, damage to property and the
likes
The existence and emergence of competitors
who offer the same or at times higher
quality and with better patronage from the
market
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V. Define the Major Goals (Reference to follow: Strategic Management Template 6.1
Specific Objective)
Strategy
Goal: Deliver high quality of
products and services which are Proper planning, feasibility studies and
above industry standards
* To constantly provide
customers with a fresh and world- construction, during construction, pre-
class mall experience through
innovative and state-of-the-art
facilities and services
Goal: Foster social responsibility
in the communities the company
serves
*To undertake wide-ranging
corporate social responsibility
initiatives that provide greater
service for customers with
special needs, and ensure
environmental sustainability
through various programs on
energy, water and air
conservation
Goal: Provide opportunities for
the professional growth of the
employees
*To be an employer of choice,
offering comprehensive
opportunities for career growth
and enhancement
Goal: Enhance shareholder
value for the investors
*To deliver sustainable long-term
growth and increasing
shareholder value
Goal: Be a big contributor in
nation building and improvement Continuously offer high quality real estate
*To uphold its role as a catalyst
for economic development
Action Step Person/s Year Completion Evaluation
Various departments such By independent external
market research are properly conducted Depends on which stage of
as Finance, Marketing, Based on project consultants, by the
in every stage of the process, e.g pre- the construction/selling the
Operations, and Legal completion company’s internal audit or
company is into
Affairs own review committee
selling and post-selling
Each staff of the company
is encouraged in joining Can be assessed through
Participate in various activities which have
events that encourage employee surveys, e.g how
the goals of protecting the environment, Based on event successful
protecting the environment, Annually aware they are of the
creating awareness on the importance of completion
whether provided by programs relating to
healthy and safe environment
outside parties or company- environment protection
provided
 Annually, during
performance  After
evaluation (for performance Obvious increase in the
promotion evaluation performance and quality of
Hire professionals who are qualified and opportunities) output by relevant
 As the need
competent. Assign tasks that match with employee who participated
Human arises or as training  After
their qualifications. Provide schooling and in trainings. In case of
Resources/Employees opportunities/schola training/scholarship/
training opportunities for continuous
rship become schooling is finished promoted employee,
professional development continuous improvement in
available
the performance even after
getting the promotion
Constructing high quality and marketable
real estate products to ensure sales and
profits. Maximize the utilization of
resources (without sacrificing quality) to Various departments such Can be assessed thru its
Monthly, quarterly or Every end of reporting
aid increasing company profit. Excess as Finance, Operations and financial statements, stock
annually period or fiscal year
cash are properly invested or used to pay Marketing market
off debts, in either way, it must result to
savings (or at least zero penalty) and or
additional income to the company
properties that will improve the standard
of living of the customers. Maintain its
Can be assessed thru its
stability so that employees are secured
Management and Daily, Monthly, quarterly financial statements, status
with their employment, hence, become Continuous
employees or annually in the market, customer
financially stable. Also continuous
and employee feedback
dealings with banks, suppliers and
investors. These all will contribute in
economic development
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VI. Create a process for evaluation and control for monitoring the activities

Data Collection
Goal and Identify and
to Measure and
Objectives Define Indicators
Compare
Identification and Standards
Performance

Create an Analysis
Disseminate Plan & Reporting Identify Roles &
result (internal Templates. Identify if Responsbilities,
and external) corrective action is analyze deviations
needed.