Thesis, Graduate (Master in Management)--University of the Philippines Mindanao, April 2007.

The demands of the business climate in the global economy require an enterprise to be agile and adaptable.

The demands of the business climate in the global economy require an enterprise to be agile and adaptable. Circumstances require a careful and timely assessment of internal and external factors in order to anticipate changes, take advantage of opportunities, and adequately prepare for challenges that lie ahead. This strategic plan for the Packaging Materials Group of Lapanday Foods Corporation, formerly known as Lapanday Packaging Incorporated, undertakes a change in outlook. It departs from the traditional practice of viewing the Group as merely a support facility of the main business of Lapanday-the growing and export of fresh produce. This study undertakes to establish a formal and logical process to planning the activities of Group from 2007 to 2011. Moreover, this study endeavors to establish the strategic process at an operational level in order create a more proactive stance for the organization. The evaluation of the forces external to the organization was conducted using PEST Analysis and Porter?s Five Forces Model. Some of the major opportunities and challenges affecting the Packaging Materials Group are as follows: Growth in banana exports especially in markets such as the Middle East, Instability of world oil prices and fluctuation of currencies, The availment of fiscal and non-fiscal incentives allowed by the BOI, Low product differentiation resulting to high power of buyers of packaging materials, competitive pricing amongst sellers, and high number of sellers. On the other hand, the evaluation of the internal forces was conducted on the four major functional areas of Human Resources, Marketing, Finance, and Production/Operations. Such evaluation was conducted utilizing different tools of analysis for each functional area. The resulting IFE Score indicates that the Group is a marginally strong organization-internally. Below are some of major strengths and weaknesses: asset turnovers drive return on Equity and are above the industry average, able to generate supplemental funding, both externally and internally, the group is heavily invested in Inventories and Fixed Assets, and obligations are mainly current, cost structure of cartons include finance charges which could in turn boost selling price, liquidity concerns, lapses in quality assurance for plastic plant products. An evaluation of the corporate vision and mission statements generated a proposal to restate the new vision and create a mission applicable to the Group. Furthermore, the annual goals-setting process was scrutinized which supported the need for the establishment of medium to long-term goals. Matching all the strengths and weaknesses generated in the internal analysis with the opportunities and challenges of the external analysis yielded 14 strategies as depicted in the Strengths, Weaknesses, Opportunities and Challenges (SWOC) Matrix. However, closer scrutiny of these strategies show that these can be classified into three mutually exclusive sets?Profit Maximization, Organizational Reform, and Product Development. Taking these strategies in account of the Group?s drive to be more determinant of its own destiny, and not merely dependent on its banana growing/exporting affiliates, it was proposed by this writer that all three strategies need to be implemented. The Profit Maximization strategies are to be supported by reforms within the organization while Product Development provides avenues to generate income from segments previously untapped by the Group. The details of affecting these three core strategies are played out in the Implementing Programs, which took on the need for changes on the basis of each functional area?Human Resources, Marketing Finance, and Production/Operations. A Goals Action Plan was also generated to provide more specifics on implementing the three core strategies. The last chapter of this study sets forth the means by which the abovementioned strategies are monitored and evaluated. Four KRAs (key results areas) have been identified?Finance, Marketing, Product Development, and Operations. Each of these KRAs has specific Performance Indicators by which to gauge the achievement of goals. Furthermore, a discussion on information systems delve on the need for more customized reports in view of adequately and timely generation of information and the maximization of the present automated system in use.