Thesis, Graduate (Master in Management)--University of the Philippines Mindanao, April 2010.

Confidential.

The focus of this strategic paper is to formulate a strategic plan for Turbo Systems operations in the Philippines. It has subsidiary functions which forms part of the mother company?s overall operation in the Philippines. Turbo System has in almost a hundred years enjoyed technological leadership and ultimately market leadership in turbocharging large diesel engines that are in operations on ships, in power plants, generator sets, on diesel locomotives and in large off-road trucks in many corners of the world. However, the new challenges in the global landscape is fast changing the industries where turbocharging is most active including the Philippines. In view of this, it is imperative that these challenges be best addressed by a systematic study by using integrative tools such as strategic management to better understand and address the main issues with appropriate strategies. An analysis of the firm?s external environment identified the following opportunities and threats. OPPORTUNITIES: 1. Increasing business activity in Marine Industry. 2. Privatization of Government owned Diesel Power Plants. 3. Inclusions of Guam and Marianas in Philippines jurisdiction. 4. Lack of upcoming power generation projects to cope up with demand. 5. Strict regulations toward better emissions. 6. Faster start-up, Mobility and shorter commissioning time of diesel power plants compared to turbine based power plants. 7. Archipelagic nature of the Philippines limits the access to grid power. THREATS: 1. Increasing number of backyard shops with tie-ups from foreign service companies. 2. Government?s over-all thrust to minimize the use of expensive oil fired power plants. 3. Slowing down of economic and industrial activities due to present global economic crisis. 4. Intensive promotion for alternative and renewable energy sources. Analyzing the internal environment of Turbo System shows the following major strength and weaknesses: STRENGTHS: 1. The original Equipment Manufacturer (OEM) advantage. 2. Leadership in technology and market. 3. Flexible Service Maintenance Products. 4. Loyal customers. 5. Good financial performance. 6. Good HR Practices. 7. Research and Development. 8. Local presence. 9. Strict adherence to Safety Policy. 10. Corporate support for continuous sustainability effort. WEAKNESSES: 1. Inability to enter into government contract. 2. High price of products and services. 3. Low service man hour utilization. 4. Highly technical job requirement. 5. High cost of training. 6. Maturing Service Engineers. 7. Weak marketing focus on competition. After conducting an analysis of the internal and external environment the proposed grand strategies are focused on Core Competency and Growth in Market Share. These strategies are aligned with the vision, mission and goals of the company and the sustainability efforts of the company in balancing economic success, environmental stewardship and social progress to be benefit all its stakeholders. The implementing programs are assigned as a function in the organization and designed to complement the existing strategies of the company. A strategic control is put in place to monitor the effectiveness of the strategy implemented. The Key Result Areas are identified to reflect measures on performance and success in the changes. Key Performance Indicators will focus on the following key Result Areas: Training elements, Team Responsiveness, Increase Orders Received, Visit Performance Execute Business Development Project.