Thesis, Graduate (Master in Management)--University of the Philippines Mindanao, October 2005.

In 1974, the government created the Coconut Industry Investment Fund (CIIF). CIIF companies were acquired and set-up to pursue the vertical integration program of the coconut industry and for the farmers to participate and benefit from coconut programs of the government. Legaspi Oil Coco Fibers Corporation (LEGCOCO) was organized in January, 2003, as a member of the CIIF group, to develop the coco coir (or coco fiber) business and to promote its environmental utility through appropriate applications. LEGCOCO is currently engaged in the manufacturing of coco fiber from coconut husks with coco peat (coco organic soil) as its by-products. LEGCOCO is a rising star in an emerging industry as demonstrated by its high growth and high market shares. Like most stars, the heavy investments in LEGCOCO are projected to pay high dividends. As the current leader in the Philippines Coir Industry, LEGCOCO should defend its ground and insure its place on top of the industry. To do so, the company must confront issues such as the maximization of its plant output, and the development of current and new products. This strategic plan for LEGCOCO is the result of extensive analyses on the firm's external and internal environments conducted by this researcher. These analyses were done in order to identify the company's internal strengths and weaknesses as well as the opportunities and threats it is likely to face. The data upon which the analyses were based were gathered from interviews with company personnel, review of internal documents, as well as information available from other secondary sources. The analyses revealed the following: LEGCOCO's strengths centered on its wide business network, simple and efficient organizational structure, flexible product line, market leadership with high profit margins and availability of capital. For its weaknesses, its plant's capacity is not optimized, lack of product standards, low efficiency ratio and poor equity ratio. Among its opportunities are increasing consumer awareness, abundance of raw materials, high demand for its products, and existence of better machineries and equipment. The threat on the other hand, centered on cutting of coconut trees which may affect the supply and superior products from other countries. By matching key internal and external factors, broad strategies were formulated which are expected to contribute to the realization of the organization's vision: "To be recognized globally as a world-class and premier producer of high-value added products converted from coconut farm waste. A partner to Filipino coconut farmers in contributing to a mutually beneficial, equitable and sustainable coconut industry." The strategic options were subjected to further analysis using the Quantitative Strategic Planning Matrix (QSPM). LEGCOCO's top management has decided that the strategies that gathered the top three QSPM scores would be selected for implementation. After consultation with LEGCOCO's top management, it was decided that the top three strategies for implementation would be (1) Production improvement. (2) Product development and (3) Concentric Diversification. This paper ends with a presentation of the researcher?s proposed implementation and control programs to ensure that the strategies are properly executed.