Example VICTORY-LINER STRATEGIC-PLAN

VICTORY LINER, INC.
Utility Road, PNR Compound, Baguio City |1
VICTORY LINER INC.

Strategic Plan
In Partial Fulfillment
Of the Requirements for the Subject
Strategic Management
Submitted by:
Abad, Andrea Mae
Baddu, Gelyn
Balandino, Althea Marie
Bitania, Krisha Nicole
Callanta, William
Cruz, Michael
Submitted to:
Mrs. Janice Castillo
TABLE OF CONTENTS
VICTORY LINER, INC.
Company Logo . . . . . . . . . . . . . . . . . . . . . .
Company History . . . . . . . . . . . . . . . . . .
Nature of Business Operations . . . . . . . . . . . . . .
Mission Statement . . . . . . . . . . . . . . . . . .
Vision Statement . . . . . . . . . . . . . . . . . .
Values . . . . . . . . . . . . . . . . . . . . .
SWOT Matrix . . . . . . . . . . . . . . . . . . .
SWOT Matching
a. Strengths . . . . . . . . . . . . . . . . . .
b. Weaknesses . . . . . . . . . . . . . . . . . .
c. Strengths . . . . . . . . . . . . . . . . . .
d. Threats . . . . . . . . . . . . . . . . . .
TOWS Matching . . . . . . . . . . . . . . . . . . .
Competitive Profile Matrix (CPM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Boston Consulting Group (BCG) Matrix
a. BCG Matrix Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Strategic Position and Action Evaluation
a. SPACE Matrix Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal Factor Evaluation (IFE) Matrix
a. IFE Matrix Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
External Factor Evaluation (EFE) Matrix
a. EFE Matrix Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Internal External (IE) Matrix
a. IE Matrix Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Grand Strategy Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quantitative Strategic Planning Matrix
a. QSPM Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operational Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
List of Tables and Figures

VICTORY LINER, INC.
TABLES
Table 1 TOWS Matching . . . . . . . . . . . . . . . .
Table 2 CPM
Table 3 BCG Matrix
Table 4 SPACE Matrix
Table 5 IFE Matrix
Table 6 EFE Matrix
Table 7 QSPM
Table 8 Operational Plan
FIGURES
Figure 1 Strategic position and action evaluation (SPACE)
Figure 2 IE Matrix
Figure 3 GSM
COMPANY LOGO
VICTORY LINER, INC.
COMPANY HISTORY
Inspired from the Americans who made “victory” a household word after the war, Jose, registered
“Victory Liner” under the name of his friend, Santiago Crisostomo. Jose commissioned another friend, Po
Chuan, to build a truck that was open on both sides to accommodate more passengers. The first terminal
was located along Azcarraga (now Claro M. Recto Avenue) corner Juan Street in Divisoria with a bus
route to and from Batangas Pier to Divisoria, and later, Olonggapo. Jose was the first driver and
mechanic, while his brother in-law Leonardo was the bus conductor. After the Second World War, the US
VICTORY LINER, INC.
military left their jeep and trucks in the Philippines because the cost of bringing it back was too high. This
was when young businessman, Jose Isaac Hernandez, found a business opportunity in the scraps that were
left behind. Together with his brother-in-law, Leonardo and Eugenio, they gathered parts to build a truck
that could transport patis (fish sauce), bagoong (shrimp paste), and rice. However, after learning that there
was a high demand for public transportation, Jose quickly changes his mind thinking that going in that
direction would be a more lucrative business. He was right.
NATURE OF THE COMPANY
Victory Liner, Inc. (VLI) is one of the largest provincial bus companies operating in the
Philippines, servicing routes mainly to the provinces of Central Luzon which includes, Zambales,
Pampanga, Bulacan and Northern Luzon which includes Benguet, Pangasinan, Bataan, Nueva Vizcaya,
Kalinga, Isabela and Cagayan. Today, Victory Liner has grown as one of the largest bus transportation
business groups in the Philippines, servicing all key destinations in Northern and Central Luzon. Victory
Liner deploys more than 900 buses in its daily operations. It is the sister company of five star.
MISSION STATEMENT
We move people better, safer by providing timely, cost efficient and quality transport services. Guided by
our company values, we realize our vision.
VISION STATEMENT
Victory Liner, Inc. shall be the leading transport company of choice in the Philippines. Our business is to
satisfy our customers, uplift the lives of our employees, provide maximum return to our shareholders, and
contribute to nation building.
VALUES
D - iligence
E - xcellence
I - ntegrity
SWOT ANALYSIS
VICTORY LINER, INC.
SWOT analysis is a planning methodology that helps organizations build a strategic plan to meet
goals, improve operations and keep the business relevant. During SWOT analysis, organizations identify
strengths, weaknesses, opportunities and threats (the four factors SWOT stands for) pertaining to
organizational growth, products and services, business objectives and market competition.
A two-by-two matrix is used to build a SWOT analysis, with horizontal pairings of internal
(strengths and weakness) and external (opportunities and threats) factors and vertical pairings of helpful
(strengths and opportunities) and harmful (weaknesses and threats) factors in achieving an objective.
Final results of the analysis will help the organization determine whether objectives, products, services,
projects or goals are a strategic fit. The best strategic fits are when the internal environment (strengths and
weaknesses) aligns with the external environment (opportunities and threats). A SWOT analysis is
essentially a way to get the organization focused on specific goals, projects and objectives. It’s an
organized approach that helps businesses identify ways to improve efficiency and productivity.
SWOT MATRIX
Strengths
1. Largest Bus transportation group in the country servicing all destination in Northern Luzon
and Southern Tagalog.
2. Victory Liner together with its sister companies, Five Star and Sta. Lucia Express uses
Tachograph for monitoring the speed of the drivers.
3. Offers chartered buses to accommodate pre-planned group tours.
4. Well oriented staff and cleanliness of the bus.
5. Competitive fare.
Weaknesses
1. Insufficient promotional and marketing efforts
2. High maintenance cost
3. Fast driving drivers and safety concerns
4. Slow wi-fi connections
5. Sensitive to oil prices
Opportunities
VICTORY LINER, INC.
1. New destination
2. Internet advertising
3. More people are becoming travel enthusiast
4. Partnership with Air Asia Philippines
5. Research and development
Threats
1. Strong competition
2. Accidents
3. Traffic
4. The usage of other means of transportation such as jeep, taxi and van
5. Government intervention
TOWS MATCHING
A TOWS analysis is a variant of a SWOT analysis and is an acronym for Threats, Opportunities,
Weaknesses and Strengths. Similar to a SWOT, a TOWS analysis will involve the identification of an
organisation’s strengths, weaknesses, opportunities and threats; however, often a key criticism of a
SWOT analysis is that it doesn’t show the relationships between the different factors and categories. For
example, a particular threat might make a weakness much more significant. Whereas a TOWS analysis
will look to match internal factors to external factors to help identify relevant strategic options that an
organisation could pursue. It can help an organisation to see how it can take advantage of opportunities,
reduce threats, overcome weaknesses and exploit any strengths.
A TOWS is a commonly used strategic planning tool and can add real value to an organisation,
helping to take strategic planning one step further. Below is an example TOWS matrix. A TOWS analysis
enables an organisation to match its internal strengths, and external opportunities (SO) to develop ‘maxi-
maxi’ strategies – those with the greatest potential for success. For example, strengths such as high brand
recognition or customer loyalty could be combined with the opportunity to launch a new product or
service.
At the other extreme, it highlights the organisation’s vulnerability to threats based on its
weaknesses and facilitates the development of strategies that minimise these and avoid threats (WT) –
‘mini-mini’ strategies. For example, such strategies could include developing strategic alliances or a more
drastic strategy could be to withdraw from a specific market altogether.
VICTORY LINER, INC.
In between, mini-maxi (WO) and maxi-mini strategies (ST) are designed to strengthen
weaknesses, utilising opportunities, and minimise threats utilising strengths. An example mini-maxi
strategy (WO) is that an organisation may have identified an opportunity to outsource some aspects of its
business operations, overcoming the weakness of lack of specific skills within the organisation.
It’s important to remember that a TOWS analysis will not point to which specific strategy to adopt, but it
does focus attention the areas where action is required, and given some indication of the nature of that
action.
Table 1. TOWS MATCHING
STRENGTH WEAKNESSES
SO WO
S1, O5 W1, O2
1. The company should innovate more product 1. We should use the power of the
and service through the research and internet/social medias to advertise our
development to be able to give excellent services service and be known to the people.
to the customer. W2, O5
OPPORTUNITIES
S3, O3 2. We should research and innovate on what

2. Since ether are many travel enthusiasts this are the ways for the company to be able to
days, Victory Liner offer tour packages wherein reduce the cost of their operations without
the customers can enjoy their holiday close to reducing the quality of their services.
nature. W1, O1
S5, O2 3. The company should use this opportunity
3. To continue to be on top, the Victory Liner to open new destinations of Southern Luzon
should promote their services to make the public To widen their market.
aware of their existence. W5, O5
4. With the help of the Research and
VICTORY LINER, INC.
ST WT
S4, T1 W3, T2
1. Even though there are many bus companies, 1. There should be a training and seminar
how the Victory Liner still provides best for the drivers so they will be aware for the
services even at a price on par with other rules and regulations of the company, the
THREATS
competitors. road, and traffic rules.

S4, T4 W1, T1
2. Many alternative substitutes are available in 2. There should be a promotional and
the market, but Victory Liner provides a relaxing marketing efforts to not be left behind by
and more convenient way of transportation to other competitors.
with our friendly staff and clean bus. W4, T3
S2, T2 3. The company should enhance the speed
of the internet connection so that customers
COMPETITIVE PROFILE MATRIX
Competitive Profile Matrix (CPM) compares a company and its rivals. The matrix reveals
strengths and weaknesses for each company, and critical success factors show areas of success or areas of
improvement. Understanding a few key elements of the competitive profile matrix will help with the
interpretation. The weight reflected how the important the factor is in succeeding in the industry. The
score ranges from 0, signaling low important the factor is in succeeding in the industry. The sum must
add up to 1.
Each company is given a raring showing how well it is performing when measured against the
success factor. Ratings range from 1 to 4, where 4 means a major strength, 3 means a minor strength, 2
means a minor weakness and 1 means major weakness. A company’s weighted score for each success
factors is derived by multiplying the weight and the rating. The total weighted score is the sum of the
individual success factors. The score indicates how well a business is doing in key success factors. The
total score shows how well a company is doing overall and in comparison to its competitors.
Table 2. COMPETITIVE PROFILE MATRIX
CRITICAL WEIGH VICTORY LINER, PANGASINAN GENESIS

SUCCESS T INC. SOLID NORTH TRANSPORT
FACTORS TRANSIT, INC SERVICE, INC.
RATIN WEIGHT RATIN WEIGHT RATIN WEIGHT
(CSF)
VICTORY LINER, INC.
G ED G ED G ED
SCORE SCORE SCORE
a. Breadth of .08 4 .32 3 .24 3 .24
Product Line
(Scope)
b. Effectiveness or
sales 0 1 0 1 0 1 0
distribution
c. Patent 0 1 0 1 0 1 0
Advantage
d. Location of .09 4 .36 3 .27 3 .27
facilities
e. Union 0 1 0 1 0 1 0
Relations
f. Production .05 4 .20 3 .15 4 .20
Capacity
g. Technological .12 4 .48 3 .36 4 .48
Advantage
h. E-commerce .09 3 .27 3 .27 3 .27
facilities
i. Market Share .06 3 .18 2 .12 3 .18
Experience
j. Global 0 1 0 1 0 1 0
Expansion
k. Inventory .05 2 .10 2 .10 2 .10
System
l. Financial .05 4 .20 3 .15 4 .20
Position
m. Management .09 3 .27 3 .27 3 .27
n. Customer .10 4 .40 3 .30 3 .30
Loyalty
o. Product .10 4 .40 4 .40 4 .40
Quality
p. Customer .12 4 .48 4 .48 4 .48
Service
TOTAL 1.00 3.66 3.11 3.39

VICTORY LINER, INC.
The competitive of a company can be assessed on the basis of its general strength rating. If the
dissimilarity among firm’s overall rating and the points of lower rated rivals is greater than the firm has
greater net competitive advantage. Alternatively, if the dissimilarity among a firm’s overall rating and the
points of higher-rated rivals is larger than the company has net competitive disadvantage. In the results
above, CPM matrix demonstrates that Victory Liner, Inc. is the market leader and dominates its rivals
with the highest point of 3.66. Genesis Transport Service is the runner up with 3.39 points and
Pangasinan Solid North is the weakest rival among those three with the score of 3.11. The matrix also
shows that the Victory Liner is strong position in the market place.
SPACE MATRIX ANALYSIS
The Strategic Position and Action Evaluation (SPACE) Matrix is one of the strategic
management tool for analyzing the company and its environment to formulating the strategies. It is four-
quadrant structure which specify whether aggressive, defensive, competitive or conservative strategies are
most suitable for a given organization, company or business.
The SPACE Analysis is most frequently in use during professional industry or market analysis of
a company. The SPACE Matrix axis signify the two external stability (ES) and industry strength (IS) and
two internal dimensions of a competitive company which are competitive advantage (CA) and financial
strength (FS). These 4 dimensions are the most significant determinants of a company’s overall strategic
position in the industry or marketplace. The SPACE matrix is broken down into four quadrants
(Aggressive, Conservative, Defensive and Competitive), where each quadrant suggest a different type or
a nature of a strategy.
The competitive advantage and environmental strength allot a numerical value ranging from -6
(worst) to -1 (best) to each of the factors. Allot value ranging from +6 (best) to + (worst) to all of the
factors that constitute the industry strength and financial strength dimensions. Calculate an average score
for IS, ES, CA and FS by summing the numbers allotted to the factors of the entire dimension separately
and dividing by the set of factors included in the dimension.
Add or combine the two scores of two dimensions that lay in the x-axis and design the resultant
point on X, in the same way add scores of dimensions that lay in the y-axis and plot the consequential
point on Y. Then, plot the intersection of the both new XY points. Sketch a directional vector from the
basis of the Strategic Position and Action Evaluation (SPACE) matrix throughout the new intersection
VICTORY LINER, INC.
points. This vector discloses the kind of strategies suggested for the firm such as aggressive, defensive ,
conservative or competitive.
Table 3. SPACE MATRIX ANALYSIS
INTERNAL STRATEGIC POSITION EXTERNAL STATEGIC POSITION

X AXIS
Competitive (CA) Industry (IS)

(-6 worst, -1 best) (+1 worst, +6 best)
-3 Market Share +5 Profit Potential
-3 Capacity Utilization +3 Extent of leverage
-2 Technological know-how +5 Capacity Utilization
-3 Customer Loyalty +4 Productivity
-2 Product Life Cycle +4 Profit Potential
-3 Control over supplies +2 Ease of Entry
Average -2.67 Average +3.83

Total axis x score: 1. 16
Y AXIS
Financial (FS) Environmental (ES)

(+1 worst, +6 best) (-6 worst, -1 best)
+4 Cashflow -4 Technological Changes
+5 Return on Investment -3 Competition
+4 Price Earnings Ratio -5 Inflation Rates
+3 Leverage -3 Price range of competitors
+3 Liquidity -3 Ease of exit from market
+3 Inventory Turnover -2 Demand Variability
-5 Risk involved in business
Average +3.67 Average -3.57

Total axis y score: 0.10
VICTORY LINER, INC.
Figure 1. Strategic Position and Action Matrix (SPACE)

1
CONSERVATIVE AGRESSIVE
0.8
0.6
0.4
0.2
0
-2 -1 0 1 2
-0.2
-0.4
-0.6
-0.8
DEFENSIVE -1 COMPETITIVE
SPACE MATRIX EVALUATION
Formulation:
Competitive Advantage + Industrial Strengths
Y= FS-ES
Y= 3.67 +(-3.57)
Y= 0.10
Financial Strengths + Environmental Strengths
X= IS-CA
X= 3.83+(-2.67)
X= 1.16
According to the graph above, Victory Liner, Inc. falls into the aggressive quadrant of the
SPACE Matrix. It is located at the coordinates of 1.16 for x-component and a y-component of .10. It
shows that the company has a strong competitive position in the market with rapid growth. It needs to use
its internal strengths to develop a market penetration and market development strategy. Other possible
strategies include product development, integration with other companies and diversification. Victory
VICTORY LINER, INC.
Liner, Inc. has been in the industry for more than 7 decades and is one of the leading bus companies on
the Northern Luzon that is why we suggest that they choose the aggressive strategy because the company
have a major competitive advantage in a high-growth industry. The competitive advantage that we can
name is that Victory Liner, Inc. is competing fairly well in an unstable industry. Even though there are
now many bus companies in the market, Victory Liner is still one of the best choice and trusted by the
customers.
BOSTON CONSULTING GROUP
The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with
long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio
of products to decide where to invest, to discontinue or develop products. It’s also known as the
Growth/Share Matrix. The matrix is divided into four quadrants based on an analysis of market growth
and relative share. These are the dogs, question marks, stars and cash cows.
Dog products are the products with low growth or market share. They frequently break even,
neither earning nor consuming a great deal of cash. The best marketing advice for any business is to
eliminate dogs from their product portfolio since they drain resources and may result in losses. Some of
these businesses can however, generate partial revenue with little costs.
Question Marks are products in high growth markets with low market share making the future
performance of the business uncertain. A question mark that is capable of seizing growing amounts of the
market share is likely to be profitable. On the contrary, a question mark that is unable to maintain market
growth will generate low profit. The best marketing advice for organizations is to invest wisely in
question marks and define a plan for ensuring that the market share can be increased.
Stars are products in high growth markets with high market share. Stars are both cash generators
and cash users. They are the primary units in which the company should invest its money, because stars
are expected to become cash cows and generate positive cash flow. Yet, not all stars become cash flows.
This is especially true in rapidly changing industries, where new innovative products can be soon be
outcompeted by new technological advancements, so instead of becoming a cash cow, becomes a dog.
Cash Cows are products in low growth markets with high market share. They are able to generate
large profits that can be used the organization to improve other sections of business. With cash flows,
there is less competitive pressure due to the low growth rate of the market. The proceeds from these may
be used to support star products.
VICTORY LINER, INC.
Table 4. BCG MATRIX
QUESTION MARK
STAR
 Cargo Services
 Ordinary Bus
 Regular Air Conditioned Bus
CASH COWS DOGS
 First Class Deluxe Bus  WI-FI Connection
 Deluxe Bus
BCG MATRIX EVALUATION
There is a high growth market and high market share with the ordinary and the regular
airconditioned buses of the company. For a reason that it can generate more return on investment than
other type of their buses. That is why they must put an effort to invest more money.
In the fast-growing market, cargo services offer by the company have a high growth market but
are low in their market share. This mean that they have invested money, but it brings little in return which
causes them to not meet their target sales. On the other hand, considering Deluxe and First-Class Deluxe
buses, they have a low growth market but are high in their market share. This mean that this kind of
business are giving the company a higher cash return. But according to growth-share matrix, business
should not invest into it but rather support them, so they can maintain their current market share. To sum
it up, Victory Liner Incorporation are operating and doing well with their business, that is why there is no
low growth market neither low market share which helps them to have a higher return and higher sales for
a long-term process.
EXTERNAL FACTOR EVALUATION MATRIX
External Factor Evaluation (EFE) Matrix is a strategic analysis tool used to evaluate firm’s
external environment and to reveal its strengths as well as weaknesses.
VICTORY LINER, INC.
Key External Factors. When using the EFE matrix we identify the key external opportunities and threats
that are affecting or might affect a company. By analyzing the external environment with the tools like
PESTLE analysis, Porter’s Five Forces or Profile Matrix, the key external factors can be identified. The
general rule is to identify as many key external and internal factors as possible.
Weights. Each key factor should be assigned a weight ranging from 0.0 (low importance) to 1.0 (high
importance). The number indicates how important the factor is if a company wants to succeed in an
industry. If there were no weights assigned, all the factors would be equally important, which is an
impossible scenario in the real world. The sum of all the weights must equal 1.0. Separate factors should
not be given too much emphasis (assigning a weight of 0.30 or more) because the success in an industry
is rarely determined by one or few factors.
Ratings. The ratings in external matrix refer to how effectively company’s current strategy responds to
the opportunities and threats. The numbers range from 4 to 1, where 4 means a superior response, 3 –
above average response, 2 – average response and 1 – poor response. Ratings, as well as weights, are
assigned subjectively to each factor. In our example, we can see that the company’s response to the
opportunities is rather poor, because only one opportunity has received a rating of 3, while the rest have
received the rating of 1. The company is better prepared to meet the threats, especially the first threat.
Weighted Score. The score is the result of weight multiplied by rating. Each key factor must receive a
score. Total weighted score is simply the sum of all individual weighted scores. The firm can receive the
same total score from 1 to 4 in both matrices. The total score of 2.5 is an average score. In external
evaluation a low total score indicates that company’s strategies aren’t well designed to meet the
opportunities and defend against threats. In internal evaluation a low score indicates that the company is
weak against its competitors.
Table 5. EFE MATRIX
Weight Rate Total Weight
(.01-1) (1-4) (Weight x Rate)

OPPORTUNITIES
1. New destination 0.14 4 0.56

2. Internet advertising 0.07 3 0.21
3. More people are becoming travel enthusiast 0.08 3 0.24
4. Partnership with Air Asia Philippines 0.09 3 0.27
5.Research and development 0.12 4 0.48
VICTORY LINER, INC.
THREATS
1. Strong competition 0.12 2 0.24
2.Accidents (malfunction of unit) 0.10 2 0.20
3. Traffic 0.07 1 0.07
4. The usage of other means of transportation such as 0.13 2 0.26
jeep, taxi and van
5. Government intervention 0.08 1 0.08
TOTAL 1.00 2.61
EXTERNAL FACTOR EVAULUATION ANALYSIS
The EFE matrix result is 2.61 which means that Victory Liner is excellent in managing and
grabbing opportunities for the company and in reducing and avoiding possible threats that may arise.
Opportunities on the expansion of the company are the rise of new destination, internet
advertising, more people are becoming travel enthusiast, partnership with Air Asia Philippines and
research and development. These opportunities will likely lessen these threats for the company such as
the strong competition, accidents (malfunction of unit), traffic, the usage of other means of transportation
such as jeep, taxi and van from Government intervention.
INTERNAL FACTOR EVALUATION MATRIX
Internal Factor Evaluation (IFE) is a strategy formulation tool which is used to examine the strengths
and weaknesses in the functional area of a business. In IFE Matrix, it is more important to thoroughly
understand the factors included rather than the actual numbers. Therefore intuitive judgements are
required in developing IFE Matrix is given for the Victory Liner (one of the leading bus company in the
country). Internal analysis is an attempt to determine the organizational capability in operations and
achieve performance. Determination of internal strategic factors can be done by comparing and
evaluating the past performance of the company, key competitors of the company, and industry.
Strengths are the fields from which company may get the most profit and efficiency. Mostly strengths
should cover weaknesses and that means that the company has a good management strategic.
Weaknesses are the fields which the company should take care of because those can generate losses two
ways: directly or any other companies on the market can expose weak areas and that leads to losses.
VICTORY LINER, INC.
The weight score ranges from 0.01 to 1 where 0.01 is the lowest and 0.9 as the highest factor. The rating
is scored from 1 to 4 wherein 1 is the least important factor and 4 as the crucial figure.
Table 6. IFE MATRIX
Weight Rate Total Weight
(.01-1) (1-4) (Weight x Rate)

STRENGTH
1.Largest Bus transportation group in the country 0.15 4 0.60
servicing all destination in Northern Luzon and Southern
Tagalog
2.Victory Liner together with its sister companies, Five 0.08 3 0.24
Star and Sta. Lucia Express uses Tachograph for
monitoring the speed of the drivers
3.Offers chartered buses to accommodate pre-planned 0.07 3 0.21
group tours
4.Well oriented staff and cleanliness of the bus 0.09 4 0.36
5.Competitive fare 0.13 4 0.52
WEAKNESSES
1.Insufficient promotional and marketing efforts 0.08 2 0.16
2.High maintenance cost 0.12 1 0.12
3.Fast driving drivers and safety concerns 0.12 1 0.12
4.Slow Wi-Fi connections 0.07 2 0.14
5.Sensitive to oil prices 0.09 2 0.18
TOTAL 1.00 2.65
INTERNAL FACTOR EVALUATION ANALYSIS
The total weighted score ranges from 1 to 4 (where 1 is low, 4 is high and 2.5 is average)
regardless of the total number of internal factors used in the analysis. If the total weighted score is less
than 2.5 it indicates that the organization is weak internally. On the other hand, the score above 2.5 show
strong internal position. In the results of Victory Liner, the total weighted score of 2.65 which is above
average, and it means that the company is strong internally.
VICTORY LINER, INC.
INTERNAL-EXTERNAL MATRIX
The Internal-External (IE) matrix is another strategic management tool used to analyze working
conditions and strategic position of a business. It is based on an analysis of internal and external business
factors which are combined into one suggestive model. The IE matrix belongs to the group of strategic
portfolio management tools. It is organized into nine cell matrices.
The IE matrix is based on the following two criteria:
1. The score from the EFE matrix- the score is plotted on the y-axis
2. The score from the IFE matrix -the score is plotted on the x-axis
The IE matrix works in a way that you plot the total weighted score form the EFE matrix on the y-
axis and draw a horizontal line across the plane. The point where your horizontal line meets your vertical
line is the determinant of your strategy. The point shows the strategy that the company should follow.
On the x axis of the IE matrix, an IFE total weighted score of 1.09 to 1.99 represents a weak internal
position. A score of 2.0 to 2.99 is considered average. A score of 3.0 to 4.0 is strong. On the y axis, an
EFE total weighted score of 1.0 to 1.99 is considered low. A score of 2.00 to 2.99 is medium and a score
of 3.0 to 4.0 is high. Your horizontal and vertical lines meet in one of the nine cells in the IE matrix. You
should follow a strategy depending on in which cell those lines intersect. The IE matrix can be divided
into three major regions that have different strategy implications.
Cell I, II and III suggest the grow and build strategy. This means intensive and aggressive tactical
strategies. The strategies should focus on market penetration, market development, and product
development. From a operational objective, a backward integration, forward integration and horizontal
integration should also be considered. Cell IV, V, and VI suggest the hold and maintain strategy. In this
case, your tactical strategies should focus on market penetration and product development. Cell VII, VIII
and IX are characterized with the harvest or divest strategy. If cost for rejuvenating the business are low,
then it should be attempted to revitalize the business.
Figure 2. INTERNAL EXTERNAL MATRIX
TOTAL IFE SCORE
(1-1.99)
VICTORY LINER, INC.
I II III
IV V VI
VICTORY LINER
GROW AND BUILD INC.
(2.65-2.61)
VII VIII IX
HOLD DIVEST
AND MAINTAIN AND HARVEST
(1-1.99) (2-2.99) (3-4)
INTERNAL EXTERNAL EVALUATION
The IFE Total Weighted Score is 2.66 which represent average position while the EFE Total
Weighted Average Score is 2.65 that represent also an average position. The Victory Liner Incorporation
represent Hold and Maintain, this cell show that they use tactical strategies wherein Victory Liner are
continuous in improving their market share, competitive pricing and customer service. Moreover, this
strategies will help them improved their decision making.
GRAND STRATEGY MATRIX
Grand Strategy Matrix is famous tool for alternative strategies in addition to Space Matrix, BCG
Matrix, IE Matrix and SWOT Matrix. All the firms can fall in one of the GSM’s four strategy quadrants.
Grand Strategy Matrix evaluation is based on two dimensions; market growth and competitive position.
Each quadrant provides the set of possible strategies in which company falls such as Quadrant 2 contains
market development, market penetration, product development, horizontal integration, divestiture, and
liquidation strategies. Quadrant 3 contains the set of retrenchment, related diversification, divestiture, and
liquidation strategies. Quadrant 4 contains the set of diversification joint ventures and unrelated
diversification strategies.
Figure 3. Grand Strategy Matrix (GSM)

VICTORY LINER, INC.
0.8
Quadrant 2 Quadrant 1
0.6
0.4 Strong Competitive

Weak Competitive
0.2 Position
Position
0
-2 -1 0 1 2
-0.2
-0.4
-0.6
-0.8
-1
Quadrant 3 Quadrant 4
Slow Market Growth

GRAND STRATEGY MATRIX EVALUATION
The figure shows that the Victory Liner, Inc. is in the first quadrant according to the grand
strategy matrix. The company should do backward, forward and horizontal integration, market
penetration, market development, product development and diversification strategies. The company needs
better strategies to remain competitive and it is important to note that the company needs to focus on the
current market and open new services that can perpetrate other markets. Victory Liner needs to develop
strategies to increase its market growth since the company has a better competitive advantage compared
to other companies in the market. The company can consider diversification as an effective approach to
minimize risks within the industry. The company can afford to take benefit of external opportunities in
many areas.
QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

The Quantitative Strategic Planning Matrix is a strategic tool which is used to evaluate alternative
set of strategies. The QSPM incorporate earlier stage details in an organize way to calculate the score of
multiple strategies in order to find the best match strategy for the organization.
It is an excellent tool for assimilating and prioritizing key internal, external, and competitive
information needed for devising an effective strategic plan. The relative importance of various facts,
VICTORY LINER, INC.
figures, trends, and data is deciding among feasible alternative strategies to pursue is critically important
in formulating strategies that can provide major competitive advantages to the firm. The QSPM provides
a clear framework for this prioritization process.
Table 7. QUANTITATIVE STRATEGIC PLANNING AND EVALUATION

Market Penetration Market Development
KEY FACTORS W A.S T.A.S W A.S T.A.S.

.
STRENGTHS
1. Largest bus transportation group in the country
servicing all destination in Northern Luzon and
0.16 4 0.64 0.16 4 0.64
Southern Tagalog
2. Victory Liner together with its sister companies,
Five Star and Sta. Lucia Express uses Tachograph 0.08 3 0.24 0.08 3 0.24
for monitoring the speed of the drivers
3. Offers chartered buses to accommodate pre-
planned group tours 0.07 3 0.21 0.07 2 0.14
4. Well oriented staff and cleanliness of bus 0.09 4 0.36 0.09 3 0.27
5. Competitive fare 0.13 4 0.52 0.13 4 0.52
WEAKNESSES
1. Insufficient promotional and marketing efforts 0.08 2 0.16 0.08 3 0.24
2. High maintenance cost 0.12 1 0.12 0.12 2 0.24
3. Fast driving drivers and safety concerns 0.13 1 0.13 0.13 2 0.26
4. Slow Wi-Fi connections 0.07 2 0.14 0.07 3 0.21
5. Sensitive to oil prices 0.07 2 0.14 0.07 2 0.14
Sum Weights 100% 2.66 100%
OPPORTUNITIES
1. New destination 0.17 4 0.68 0.17 4 0.68
2. Internet advertising 0.07 3 0.21 0.07 4 0.28
3. More people are becoming travel enthusiast 0.05 3 0.15 0.05 3 0.15
4. Partnership with Air Asia Philippines 0.10 3 0.30 0.10 3 0.30
5. Research and development 0.12 4 0.48 0.12 4 0.38
THREATS
1. Strong competition 0.09 2 0.18 0.09 3 0.27
2. Accidents 0.10 2 0.20 0.10 3 0.30
3. Traffic 0.05 1 0.05 0.05 1 0.05
4. The usage of other means of transportation such 0.15 2 0.30 0.15 3 0.45
as jeep,taxi and van
5. Government intervention 0.10 1 0.10 0.10 1 0.10
Sum Total Attractiveness Score 5.31 5.86
VICTORY LINER, INC.
MARKET PENETRATION
Market penetration is a measure of how much a product or service is being used by customers
compared to the total estimated market for that product or service. Market penetration can also be used in
developing strategies employed to increase the market share of a particular product or service.
Victory Liner have been operating for almost seventy-five years already, in order for them to
increase their market share, they should have more promotional strategies and campaigns. This will
benefit the product and helps to expand the brand name and brand value in the market. The company
should ensure on promoting their product through every available medium so that it reaches the
customers, and product awareness is built up.
Another strategy that the company can use in attracting more customers is to add new
destinations. Geographical expansion works well for a company that wants to expand its service territory
because it needs a physical location to serve its customers.
MARKET DEVELOPMENT
Market development is a strategic step taken by a company to develop the existing market rather
than looking for a new market. The company looks for new buyers to pitch the product to a different
segment of consumers in an effort to increase sales.
A strong research and development department will ensure that the product is extremely
innovative and advantageous in having a strong competitive advantage. Victory liner is known for its
different types of buses that are typically provided as well by their competitors. However ,investing and
innovating vehicle maintenance offers longevity of the engine and other components, it also reduces
repair costs and it can be used to strengthen the reliability and quality assurance rendered on their existing
and potential customers .
The quality of the service should be appealing to the customers. Creating and establishing a
subjective feeling of safety to passengers on buses is important and then in such case, the price of the
product will not matter for quality-conscious customers. One way to ensure this is to provide protection to
engine parts by using good quality lubricants that matches the vehicle’s needs.
OPERATIONAL PLAN
VICTORY LINER, INC.
The day to day operations of our bus company include a focus on providing the best passengers
services as well as an enjoyable and having a safe trip. We understand that the purpose of a bus company
is to allow those in our community to have a good time while travelling and we remain focused on using
our many resources to provide a comfortable and affordable transportation that you can go home safe.
To this end, a big part of our operations plan is to continue to attract passengers the best in
travelling where you can travel around the scope of Northern and Central Luzon. We have found that
having a free Wi-Fi inside the bus are one of the attractive features of the bus because internet
accessibility while you are travelling, and that internet connection persuade some of the passengers and
then they automatically connected because the password are on board.
Victory Liner should use the market development strategy based from the results of their
attractive scores. Market penetration garnered a total average score of 5.31 which is lower by 0.55
compared to market development which have a higher score of 5.86. Victory Liner have proven its
quality of service for a very long time already, therefore they must improve their safety and security in
regards to the malfunctioning of their vehicles and the accidents committed by their employees. The type
of business offered circulates on the transportation of passengers and products thus the need of intensive
attention to safety is relevant to their market development.
We have already enjoyed great success in using this strategy, and we intend to fully exploit this
strategy in the future.
Table 8. OPERATIONAL PLAN

Key Areas in operation Objectives Department or Budget Duration
people involved
Advertisement
 Radio broadcast To create awareness Marketing 303,500 per
(30 seconds twice a Department year Yearly
year
 Tarpaulin (50 pcs.
1000*500 25,000)
 TV commercials
 Online booking
VICTORY LINER, INC.
Product Development To have an

environmental impact Research and 98.89 per
 Natural Gas and help lessen the Development liter
polluted air in Baguio. Department Yearly
Hiring of People:
 Conductor, driver, To satisfy the needs and Human Resource 30,000 May-July
attendant wants of the customer Department monthly
salary
COMPUTATION OF BUDGET
ADVERTISING Per Year

Type of Advertisement Quantity Price Total Amount
Online booking 200 passengers per day on a 1,000 per head 200,000
regular day
TV commercials 30 seconds once a year 50,000 50,000
Radio 20 second twice a year 14,250 28,500
Tarpaulin 50 pieces 500 25,000
TOTAL 303,500
VICTORY LINER, INC.
REFERENCES
http://mba-lectures.com/management/principles-of-management/1091/competitive -profile-matrix-of-
coca-cola.htmi
https://mba-tutorials.com/quantitative-strategic-planning-matrix-qspm/
http://www.victoryliner.com
http://strategyclub.com/CBJ%20Article.pdf
http://www.maxi-pedia.com/internal+external+IE+matrix
VICTORY LINER, INC.
APPENDICES
VICTORY LINER, INC.
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VICTORY LINER, INC.

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VICTORY LINER, INC.

Utility Road, PNR Compound, Baguio City |1

VICTORY LINER INC.

List of Tables and Figures

NATURE OF THE COMPANY

Table 1. TOWS MATCHING

S3, O3 2. We should research and innovate on what

competitors. road, and traffic rules.

COMPETITIVE PROFILE MATRIX

Table 2. COMPETITIVE PROFILE MATRIX

CRITICAL WEIGH VICTORY LINER, PANGASINAN GENESIS

TOTAL 1.00 3.66 3.11 3.39

SPACE MATRIX ANALYSIS

Table 3. SPACE MATRIX ANALYSIS

INTERNAL STRATEGIC POSITION EXTERNAL STATEGIC POSITION

Competitive (CA) Industry (IS)

Average -2.67 Average +3.83

Financial (FS) Environmental (ES)

Average +3.67 Average -3.57

Figure 1. Strategic Position and Action Matrix (SPACE)

SPACE MATRIX EVALUATION

Competitive Advantage + Industrial Strengths

Financial Strengths + Environmental Strengths

BOSTON CONSULTING GROUP

Table 4. BCG MATRIX

CASH COWS DOGS

 First Class Deluxe Bus  WI-FI Connection

BCG MATRIX EVALUATION

EXTERNAL FACTOR EVALUATION MATRIX

Table 5. EFE MATRIX

Weight Rate Total Weight

(.01-1) (1-4) (Weight x Rate)

1. New destination 0.14 4 0.56

EXTERNAL FACTOR EVAULUATION ANALYSIS

INTERNAL FACTOR EVALUATION MATRIX

Table 6. IFE MATRIX

Weight Rate Total Weight

(.01-1) (1-4) (Weight x Rate)

INTERNAL FACTOR EVALUATION ANALYSIS

The IE matrix is based on the following two criteria:

Figure 2. INTERNAL EXTERNAL MATRIX

TOTAL IFE SCORE

(1-1.99) (2-2.99) (3-4)

INTERNAL EXTERNAL EVALUATION

GRAND STRATEGY MATRIX

Figure 3. Grand Strategy Matrix (GSM)

0.4 Strong Competitive

Slow Market Growth

QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

Table 7. QUANTITATIVE STRATEGIC PLANNING AND EVALUATION

KEY FACTORS W A.S T.A.S W A.S T.A.S.

Table 8. OPERATIONAL PLAN

Product Development To have an

ADVERTISING Per Year

Radio 20 second twice a year 14,250 28,500

Tarpaulin 50 pieces 500 25,000

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