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

On the 13 October 1956, San Miguel Foods and Beverages, Inc. (FB), formerly known as San Miguel Pure Foods company, Inc. (SMPFC) was incorporated to primarily engage in the business of manufacturing and marketing of processed meat products. Later on, FB diversified into poultry and livestock operations through its subsidiaries such as feeds, flour milling, dairy and coffee operations, franchising and young animal rations, manufacturing and distribution. Focusing in fresh meats processing operations in Mindanao. It involves in slaughtering/processing that requires major activities such as receiving of live hogs, weighing, hanging, stunning, killing, scalding, defeathering, eviscerating, chilling, packaging, among others. It also involves fabrication process that requires certain activities such as cutting, marinating, and deboning the product in accordance with the company standard and specifications, among others, until warehouse, and distribution. The company utilizes third and party-owned facilities in all Mindanao meat-processing operations from production to warehouse until distribution covered by integrated tolling management contract for three years. The company also deploys equipped personnel in each of the third party contractors in order to safeguard the quality and compliance of the required standard parameters and to ensure the quality of the product. However, the utilization of both plants in Mindanao was not fully optimized. In addition, both plants reported with unfavorable efficiency recovery such as, high mortality, low yield efficiency and increasing shipping expense cost. Records show that the highest mortality rate, lowest yield recovery and highest shipping expense costs experienced in SMIN area. These issues and problems are hindering the potential of SMFI to become a sustainable economic meat business. This is where the conceptual framework was initiated to help the company achieve the sustainability and growth by means of a methodology. The strategic plan employs the Comprehensive Strategic Management framework of Fred R David. This is divided into three-stage process: (10 Strategy formulation, (2) Strategy Implementation, (3) Strategy Evaluation. The strategic approach starts with environmental scanning or external analysis. This is also essential to recognize opportunities and threats. Opportunities are favorable environmental factors that may contribute to the business? progress and performance. On the other hand, threats are unfavorable environmental factors that may provoke the downfall and low performance of the business. These factors are summarized into opportunities and threats, which are evaluated quantitatively using the External Factor Evaluation matrix (EFE). The next level approach refers to internal analysis. This is an examination of the competency, financial position and competitive viability in the industry of the company. Conducting an internal analysis usually incorporates methods that provide relevant information about the strengths and weaknesses of the company. Similarly, these factors are summarized into strengths and weaknesses, which are evaluated quantitatively using the Internal Factor Evaluation matrix (IFE). The third approach is the evaluation of combined factors by the help of Strengths, Weaknesses, Opportunities and Threats analysis (SWOT analysis) to help develop a strong business strategy. The final level approach is the application of relevant tools such as Internal and External matrix (IE) and Strategic Position and Action Evaluation matric (SPACE). These tools help the company decide what type of strategy the company should undertake to generate strategic options. As a result, the matrices reveal that our company should pursue a conservative strategy. It needs to use its internal strengths such as market penetration, market development, product development and related diversification strategies. From the assessment conducted using relevant tools, one strategy got a higher assessment rate that suggests focus on adding new but related product or service strategy. This strategy suggests a program on outsourcing another meat processing plant in General Santos (Gensan) area. This program is akin to the (W-O) Weaknesses-Opportunities and (W-T) Weaknesses-Threats generated during SWOT matrix analysis. The realization of new plant facility in Gensan could decrease the shipping expense cost by Php 0.15 in cost per kilo dressed weight (cost/kdw) or Php15.93 million in entire five years of operation from 2021 to 2025. Thus, the encompassing bottom line will have a positive result above 7% in each year of operation.