Thesis (Master in Management) -- University of the Philippines Mindanao, April 2019

The Tnalak Multipurpose Cooperative (the Cooperative) is a worker cooperative that is engaged in labor service contracting to third parties particularly in the banana industry. The cooperative has around 26,000 member-workers in 11 satellite offices in the different parts of Mindanao. The Cooperative has to concretize its management system through strategic management approach to achieve sustainability. The Cooperative endeavors to provide livelihood opportunities and wide range of benefits to its member-workers through secured employment in its labor service contracting engagement with clients. To further expand the benefits of its member-workers, the Cooperative has to adapt to external opportunities in order to wide its scope and to increase its market share. Due to its strong reliance on its existing major clients in the agricultural sector, particularly in the banana industry, active marketing efforts have not been performed. Thus, the Cooperative was unable to penetrate new markets despite the growing economy in Mindanao with increasing demand for reliable labor service contractors. Moreover, the labor service contracting industry is bound by stringent and changing labor regulations. The Cooperative's internal environment has to be strengthened to expand business prospects and to withstand such external challenges that threaten its continuity, and the members as a whole. This paper is a result of the comprehensive study of the external and internal environments relative to the Cooperative's philosophies and actual operations. This study adapted to Fred r. David's Model of Strategic Management Process (2011). From a review of the Cooperative's purpose and principles, external environment and internal environment analyses were performed. Strategies were formulated using different matching tools such as the Strategic Position and Action Evaluation (SPACE) Matrix and the Strengths, Weaknesses, Opportunities and Threats (SWOT) Matrix. The proposed strategies were derived using the Quantitative Strategic Planning Matrix (QSPM). Implementing programs were crafted through strategic human resources, marketing, operations and finance management. To ensure implementation, concrete strategy evaluation and control measures through a Performance Management Systems(PMS) were developed. This paper presents a four-year comprehensive strategic plan for the Cooperative that is focused on market penetration. Responses to the external environment shall include job generation by mobilizing the agricultural sector in Mindanao, the growing banana industry, and thousands of the young population entering the labor force in Mindanao. The Cooperative shall also respond to its internal environment primarily its lack of formal marketing functions, a marketing department shall be established to have on-going marketing activities following a comprehensive marketing plan. The objective is to increase the Cooperative's service revenue and member's count by 100% in 2023. This paper is also recommending a secondary strategy, which is concentric diversification. Profits generated from market penetration shall be accumulated to capitalize business diversification programs. Concentric diversification strategies, which started with the Cooperative's switch to multipurpose operation, will necessitate further project feasibility. Hence, this will be implemented after the primary markets have been penetrated. This strategic management system would enable the Cooperative to successfully align with its purpose and principles. Through market penetration and business diversification strategies, it could double the members' financial package and dividends and patronage refund in 10 years.