Thesis (Master in Management) -- University of the Philippines Mindanao, April 2018

Hexamindz Corporation is a construction company based in Davao City, Philippines. The company started in 2008 and with a rapid, steady progress, it enhanced its operational capabilities by becoming an ISO 9001:2015 certified firm. Moreover, the company just recently upgraded its license classification becoming a Triple-A licensed contractors granted by the Philippine contractors Accreditation Board (PCAB). In spite of this admirable feat, the company is still faced with several issues affecting their overall performance. These issues are the untimely completion of projects, outdated organizational structure, weak performance evaluation and high financial liquidity. The controllable cause of failure to complete projects on time is the high incidence of construction equipment breakdown deployed on project sites. The outdated organizational structure caused overlapping of roles and functions affecting the flow of decision within the organization. The company?s weak performance evaluation to date is more focused on assessing the behavioral response of employees towards their assigned roles. Lastly, the high financial liquidity of the company creates unwanted risk brought about excess funds not utilized in other revenue generating initiatives. The proponent obtained data through distribution of functional surveys, one-on-one interview, browsing office records and getting relevant sources of information from the internet. The conceptual framework adapted in the strategic planning process of the company is taken from Fred David?s Strategic Management Model (2011). This framework consists of a three-phase approach namely strategy formulation, implementation and evaluation. In strategy formulation, the company?s corporate objectives are assessed and then linked in to the internal and external factors surrounding the company. There are various tools utilized in this phase which are the External Factor Evaluation (EFE) for assessing the external factors. Poster?s Five-Forces for understanding the competitive situation in the industry, and Internal Factor Evaluation (IFE) on analyzing the internal strengths and weaknesses of the company. The formulation of strategies is based on addressing the findings from the EFE and IFE through the use of Quantitative Strategic Planning Matrix (QSPM) tool. Lastly, the implementing strategy will be evaluated within a specific timeline as to monitor the progress along and its impact to the company?s corporate objectives. The best strategy to address the above-sited issues of the company is backward integration having corresponding activities of acquiring additional heavy equipment units and accrediting more construction materials suppliers. The acquisition of additional equipment will increase operation capacity that will minimize, if not prevent, delays in construction progress. The accreditation of more suppliers will eliminate risk of construction supply stock-outs that will hamper operations. These activities lead to address potential delays in projects completion as well as improve utilization of financial funds. However, the effectivity of these will not be attained without the modification of existing organizational structure and revision of key performance evaluation process as a way to improve the business is to make it efficient and to have measurable sets of performance indicators. The implementation of strategy is seen to improve the company?s edge over competitors as it may improve the organization structure, project completion timeliness and efficiency that will strengthen its acquisition of more infrastructure projects in the promising years of the industry. Moreover, the strategy effectively takes advantage of the low interest rates of banks to support the investment mentality of management. Lastly, the strategy may promote trust and confidence to clients that will put the company in a position as the preferred construction firm in the country.