Thesis (Master in Management) -- University of the Philippines Mindanao, July 2022

The Asian Hybrid Seed Technologies Inc., a family-owned corporation which was based in Bukidnon, was established in October 2, 1995 to help the farmers optimize the use of hybrid corn seed through agro-engineering and advance technological approach. The main objective of the company is to introduce advance technology in corn farming using high quality hybrid corn seeds. The company is engaged I production and selling of hybrid corn seed to the local government unit, agricultural cooperatives, private companies and individual farmers. The company has the bulk of its sale from government transactions. For the past four years, the company projected a positive growth rate in their net profit with an average amount of 7.5 million. Their sales have also earned a positive growth rate with an average amount of 404 million. Indeed, the company has a strong financial performance. However, there are some problem areas which significantly affect to the company's financial status. One of which is the unreliable accounting information system that hinders the management to generate data to be used in planning and decision-making purposes. In addition, higher debt-to-equity ratio contributed to the higher financial risk of the company. Enhancing their working capital management through business re-engineering will help the company source additional capital for their operational expenditures and investments. Another potential problem identified is too much reliance on sale to government.it was noted that the bulk of their sales are coming from these transactions, however, giving importance to retail and private sale will capture untapped markets which contributes to the profit margin of the company. Furthermore, poor management of people is also considered potential problem of the company that deteriorates the efficiency of business process. This strategic plan will help the company in improving its internal business operations and be more responsive to its external environment. A modified framework used to formulate the strategic management plan is adopted from the framework of Thomas Wheelen and J. David Hunger (Thomas Wheelen and J, David Hunger, 2012). External analysis was conducted using the PESTLE analysis to identify opportunities and threats affecting the company and to the industry. Analysis of internal environment was conducted through examining the core functional areas of the company to identify strengths and weaknesses of the company. To come up with strategies, the results from both EFE and IFE matrices were used as inputs and were applied on two more tools: (1) internal ?External (-E) matrix and (2) strengths, weaknesses, opportunities and threats (SWOT) matrix. The generated strategies were then evaluated using the Quantitative Strategic Planning matrix (QSPM). The result of the QSPM indicates that the strategic choice must be system improvement and market penetration. System improvement involves implementation of comprehensive accounting system (AIS) which is necessary in generating data needed for management planning and decision-making. Another is enhancing working capital through efficient and effective business process flow. The business process re-engineering (BPR) model will be used in order to examine the business process of the company. Furthermore, strengthening human resource development will also be part of system improvement through establishment of training and development programs, and standardize remuneration and monetary benefit packages of the employees. Market penetration, on the other hand, involves promotional innovation and brand awareness through strategic partnership to government agencies and agricultural cooperatives in disseminating information about hybrid corn seed farming. Demand forecasting will also be part of this strategy to maximize potential demand for retail and private sales. For the control systems and monitoring of proposed program implementation, Balance Scoreboard (BSC) is being used. This has been developed in order to properly evaluate the implementation of programs that will support the proposed strategies to achieve its goals for the next three years. The BSC shows the priority of activities, responsible persons to perform the task timeframe of programs and activities and monitoring process to keep track of the progress of each activity.