Arm Art Garments (AAG) is a customized garment manufacturer which envisions itself to be the front-runner among the garment manufacturers in Davao City providing top-notch quality made-to-order apparel and printing services to its clients. They aspire to deliver excellence to its clients and compete with integrity through its wide array of products from polo shirts, statement round neck shirts, sports uniforms to bags, tumblers and other form of tokens. But, despite being in the industry for over six years, AAG has not yet completely realize its vision and still has a week presence in the market. Currently, AAG has two locations, in Bangkal and Ma-a, with ten regular employees working different tasks. AAG was awarded with a 12-head computerized embroidery machine by the Department of Science and Technology, which is payable starting from 2018 until 2021. This gave the opportunity to expand its services, with embroidering as its latest add-on service. With regards to marketing, they only rely on word-of-mouth and Facebook marketing, which is not enough to gain new customers and to penetrate a new market segment. They also do not have any established accounting practice that would allow the company to monitor and trace its expenses, as well as the cash inflow. This contributed to AAG?s declining net profit margin despite the increasing gross profit margin. In addition, they have not yet established human resource practices that promote growth and development among their employees. The owner is also the sole decision-maker and manager of the entire operations, which is risky for the company as their entire operations might be put into halt if the owner is not present. With that, a strategic plan is necessary for the company so as to have a guide in what implementing programs and activities suit AAG in order to achieve business efficiency and profitability. This strategic plan involves analyses of the external and internal environment of AAG, as well as the development of values, goals, objectives, vision, and mission statements. The results from the analysis phase were utilized in the strategy formulation and plotted into matrices. The Internal-external (IE) matrix and SWOT matrix suggested ?Hold and Maintain? strategies for the company. These strategies involve Market Penetration, Product Development, and Operational Efficiency. Among these major strategies, Market Penetration was the most attractive strategy for AAG based on the results from the Quantitative Strategic Planning Method (QSPM), a tool used for strategy selection. Market Penetration strategy involves programs and activities that help increase the market presence of the company by penetrating and gaining new customers and at the same time, strengthening the loyalty of its existing clients. These includes conducting a brand awareness campaign through digital channels and traditional marketing, strengthening customer loyalty through initiating exclusive supply agreements and adjusting product prices, increasing and improving production, widening the distribution network, and standardizing operating procedures. Strategies that were not chosen would also be implemented once the market penetration strategy is already established. All penetrators for the proposed strategy would be done starting on the third and fourth quarter of 2019 and the implementation proper would be executed in a span of three years, from 2020 to 2022.

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