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

Davao Thermo Biotech Corporation (DTBC) is an environmental solution that envisions itself to be a leading sustainable enterprise that acts as a powerful catalyst for the effective management of Philippine ecosystems. DTBC is a Davao-based company that collects biodegradable waste from business establishments in Visayas and Mindanao and is looking forward to penetrating different business establishments in the Luzon area. The waste management services tolling fees paid by the business establishments to DTBC serves as the main revenue source of the company. Aside from that, the company also earn revenues from the sale of its natural fertilizer which is byproduct of the collected waste which are treated through a fermentation process using YMO technology of Japan. The sale of fertilizer, however, is highly dependent on the volume and substrates of the collected biodegradable wastes. For the past years of operations, the company is encountered different challenges in all of its key functional areas, especially in financial aspect. In fact, the DTBC has been on the red mark over the past years of its operation due to a combination of market and organizational challenges. In market, there is still low receptiveness of the targeted clients to engage the services of DTBC more so that the latter is offering pioneering bio-wastes management services. On the organizational aspect, the challenges in profitability and liquidity had restricted the company to be aggressively penetrating the targeted clients to increase the level of its operations, particularly in generating the desired substrates for the fermentation process using the YMO technology. These challenges currently encountered by the company further justify the need for the formulation of its strategic plan paper. The first part of this paper covers the analysis phase which includes the external and internal environment scanning. The tools STEEP analysis and Porter?s Five Forces Model are utilized in the external environment analysis while all the four key functional areas of the business are being examined in the internal environment analysis. In order to assess whether the company has a weak or strong external and internal position, the External Factor Evaluation (EFE) Matrix and the Internal Factor Evaluation (IFE) Matrix are used which are indicated at the end of each analysis. In the strategy formulation phase, the results of the EFE and IFE matrices, are plotted into the Internal-External Matrix and the SWOT matrix is used in order to come up with a list of strategic options which are grouped together to form the major strategies. The resulting analyses led to the identification of major strategies that include market penetration, product development, and operational efficiency. These major strategies are plotted in the Quantitative Strategic Planning Method (QSPM) matrix to identify the attractiveness of each major strategy relative to the identified key external and internal factors. The strategy with the highest Total Attractiveness Score (TAS) is considered to be the best strategy for DTBC. Results of the QSPM suggested that market penetration is the best strategy for the company. The successful of the market penetration strategy is guided by the formulation of various implementing programs such as the hiring of a business development officer, conducting research for the best mix of substrates, and exploiting networks of independent BOD advisers to source out funds for the hauling equipment. The programs utilize some of the strategic options derived from the SWOT analysis. Timeline of activities and financial projection in the statement of comprehensive income is also created where it is expected that the company will earn positive income beginning 2021. This positive net income would signal a good operating performance of the company and would help stabilize its financial conditions. In the control and evaluation of the implementing programs for the company, the Balance Scoreboard (BSC) is prepared. The BSC shall ensure monitoring and proper implementation of the strategy. Along with the BSC, monitoring and evaluation sheet shall also be provided which will be used in the quarterly performance review