2Fort Bonifacio Global City I.

Introduction Fort Bonifacio is the home of the Philippine

Army in an underdeveloped stretch of land in the are of Taguig in Metro Manila. In
March 1992, the Aquino administration signed a Republic Act mandating the conversion
of this military reservations into alternative productive uses. The proximity of Fort
Bonifacio to the business hub of Manila makes it an ideal development site for a state-of-
the-art business center. Since the country’s governing boy has to do some other things in
other priorities, the concept of privitization takes place. Bidding was held on January 6,
1995 where top corporations were present. The final bidder who won in the bidding was
the Metro Pacific Corporation (MPC). They acquire the property for Php 39.2 billion
pesos or at about Php33,000 per square meter over their tough competitor, the Ayala land
who bid for the property for Php9,000. The latter has been known in the industry as the
developer of the Makati business configurations. After winning the bidding, intensive
plans for the immediate development has to be finalized. The aim of developing the
property into something productive made them to strategize and will view the property in
the future as the dream city or the city of the future through the injection of the state- of-
the-art facilities for the global business enterprise. Although MPC has a lot of business in
many other industries, they consider this property as their crown jewel. When making big
businesses, of course, it entails a lot of money. Aside from the mere acquisition of the
property, the development itself dictates that a large amount of investment is needed.
Since MPC is a multinational corporation, it created their subsidiary project facilitator,
the Bonifacio Land Corporation. This is a 13-company consortium headed by the mother
company, the MPC. However, not until the 1997 Asian financial crisis, the company
experienced major setbacks. The full swing started the following year after the
acquisition. The creation of “Big Delta” or the Global City’s main hub for business
enterprise entails lots of money. The Global City has created the “Big Delta” and other
facilities like the NBC Tent, the Bonifactio Global City’s open field, the Fort, and other
residential and businesses. The facilties were massive to the extent that it rose up the
short-term debts of the developer. The only hope for capital gain is the revenue the
Global City can generate. II. Point of View The researcher took ING Barings (managerial
consultant) point of view. The researcher took advantage of this point of view in order
not to create any bias. The bias itself will be emphasized if the point of view is internal
and as the concept of intellectual services, managerial consultants or even strategic
consultancy is highly appreciated. B.A. 190 Case Presentation Jaffy Bratt Rosales
Mandawe
3. 3Fort Bonifacio Global City III. Problem of the Case The main problem of the case
evolved from the simple consideration of the external factors such us the unstability of
the financial performance of the economy especially during the late 1990’s to the extent
of considering the company internal deliberations. The internal factors mainly happened
to be the payment of debts in the short-term. The cost initially outweighs the benefits and
to write off these costs only give problem to the developer. IV. Objectives To be able
to indentify factors (SWOT-driven) in which the company can utilize to promote
sustainable development; To be able to know the effective utilization of these factors
(SWOT-driven) through the help of strategic marketing; And, to be able to help solve
the company’s problem through the utilization of the concepts of Strategic Marketing. V.
SWOT Analysis Strengths: Strategic Location. Main hub for business enterprises and
other related business since it is known as the city within a city through its strategic
location. B.A. 190 Case Presentation Jaffy Bratt Rosales Mandawe
4. 4Fort Bonifacio Global City Convenience. Considering the ambience and the
readiness of the property towards convenient workplace enables us to identify that the
itself is set to be convenient provided that it is near other major cities and the seat of
government. Accessibility. Since the property is bounded by different major urbanized
cities, transportation by air, land and sea is not anymore a quandary. This dictates future
investments thereby increasing revenues. Attractiveness. Wrapping up all these, since
businesses operate in busy lifestyle, the property is very attractive because it paves way
to businesses in their market penetrating activities considering that the property is highly
volatile to market exposure. Weaknesses: Privatization. In simplier terms, when a
property is privatized, the only regulation of the intervening and governing body has
limitations. The main threat here is not about the property itself but the businesses in
play. High Cost due to urbanization. This only means that the property accompanies
high cost since it is strategically located. The venturing business will be affected in any
way and is reflective to the services they offer and/or to the facilitative support they have.
Decentralization. Directive approach towards management system can also trigger the
property’s weakness. Directive approach illustrates individualism in terms of managerial
efforts for growth. This equates to the concept of decentralization. Multiplicity. This
pertains to the internal competition the property can offer. Multiplicity in this sense is the
competition arising from two or more businesses covering the same industry. This is a
threat since this is an internal consideration that the property needs so much attention for
repositioning the business structure and configuration. Opportunities: Large-Scale
Investments. The very big opportunity the property can offer is the large market it will
serve. This sums up all the above-mentioned internal strengths. B.A. 190 Case
Presentation Jaffy Bratt Rosales Mandawe
5. 5Fort Bonifacio Global City Working towards Globalization. When the businesses
found competitive advantage in the marketplace, when they embrace globalization, the
property will be embracing it as well. This links to global exposure. Referrals. When
the services of the property are exemplary and/or excellent, invitation to bid for certain
partition of the property will be positively be identified. Geometric Exponential
Progression and Geographic Acquisition. This is the concept of of internal growth and
expansion. When a certain property performs well, expansion is at reach to efficiently
deliver the services. Threats: Volatility on Security. When the property is volatile,
threats such as terrorism and other security related incidents are of suspicious probability.
Geographic Disturbances. This pertains to uncontrollable phenomena in the
environmental aspects or nature of the property. Geographic Competition. As stated
above, internal competition brought up the property’s weakness. In this case, geographic
competition trigger the property’s development. Environmental Issues. Since
diversified businesses are in the property’s internal consideration, external weakness or
the threat in simpliest form is also attributable to the business’ environmental issues
which is covered by the property’s administration. VI. Alternative Courses of Action
B.A. 190 Case Presentation Jaffy Bratt Rosales Mandawe
6. 6Fort Bonifacio Global City Alternative 1. “On Sale” This alternative dictates the
company will sell some of their assets in order to write off their debts in the short-term.
The concept will be beneficial especially if the company is protecting core businesses
while disposing the inactives. This will also relates to the proper inventory management
concepts where a certain company can use to exercise effectiveness and efficiency. When
the company will sell some of their assets, it is just like reforming the existing asset into
useful and income-generating asset. Alternative 2. “Transfer” Instead of selling some of
their properties or assets, this alternative teaches us to write off immediate problem the
company is facing. It is impractical to sell asset (idle or generating) when the affected
property is creating the big risk of the company. There is a probability that the affected
property can not suffice the risk if you will be selling already existing assets. Therefore,
the transfer of the affected property to some interested party can be taken as an
alternative. Alternative 3. “Seek Help”. As what the phrase clearly illustrates, this
alternative is both beneficial and essential if the preceding alternatives fail. The concept
of this alternative is to seek potential help whether in the government of private sector.
This also pertains to a long-term agreement between the one who seeks help and the one
who lends help. The tendency for this alternative towards failure is minimal since help in
this regard does not only limit to single entity but bundle of entities who happen to have
bundle interest with the property and the businesses inside it. VII. Recommendation After
scrutinizing the above alternatives, the researchers (as if we’re managerial consultants)
believe in the third alternative. This is because major setbacks of the first two alternatives
are too obvious. First, when you will be selling something, it does not necessarily reflects
that it will guarantee the solution B.A. 190 Case Presentation Jaffy Bratt Rosales
Mandawe
7. 7Fort Bonifacio Global City because the sold item, property or whatsoever (idle or
generating) has liberally economic uses. Secondly, the cost of the planning state alone, if
you happen to transfer the ownership of the property to an interested party will not just
waste a lot of money but most of all, time. Therefore, seeking help is a good thing to
consider with an effort to make the property useful in a sense. For example, government
assistance is helpful with a promise of successful operation to outweigh and recover
costs. Clear illustration using this alternative was when the U.S. Government saved AIG
amidst the US financial crisis.