Thesis (Master in Management) -- University of the Philippines Mindanao, 2023

Synchrotek Corporation – General Santos is a company engaged in the sales and services of marine engines, generator sets, and related components. Cummins (engines and generator sets), ZF Gearbox, Fleetguard filters, Cramaco alternators, and Snap-on tools are among the quality items distributed by the company. The company has its share of financial and performance issues for the last five years. Due to the consequences of the pandemic, the corporation saw its lowest sales in 2020, which ultimately led to losses. Despite a large rise in income over the prior year in 2021, the firm nevertheless managed to post a loss due to increasing operational and sales costs. In 2022, while the net profit is now positive, it is still far lower than it was in the days before the epidemic in 2019. On the marketing side, the company also had its challenges. In 2020, the business only had a few customers and in 2022, despite having the most income, the firm reported the fewest customers. The company also has difficulties with sales forecasting as the actual sales for units and parts were significantly lower than the corresponding forecasts. A strategic plan was devised to help the company overcome its current issues and obtain its objectives in the five years. The plan utilizes the strategic model canvas formulated by Azevedo et. al. in 2018 as its framework. An analysis of the external environment was done using the PEST method. The insights gathered from the analysis of the external environment were used to formulate an external factor evaluation (EFE) matrix. A total score of 2.35 was obtained from the EFE matrix analysis, which is below average. This indicates that the company’s present strategies are ineffective in addressing external concerns. The internal environment was analyzed by assessing the functional areas of the organization – human resources, marketing, finance, and operations. For human resources, a quantitative study of method using the Weisbord’s six-box model was utilized. Results show that all organizational components – purpose, leadership, rewards, relationships, structure, helpful mechanisms, and attitude to change have mean rating about the midpoint value and shows no major issues. The analysis of the marketing practices is based on the method of analysis of Kwadade – Cudjoe (2021) which evaluates the company’s current value delivery process, products, price, promotion, channels of distribution, customers, and suppliers. The financial analysis evaluates the organization’s structure in finance and accounting, management decision-making processes, and financial and management accounting-related issues. The operational analysis evaluates the company’s goods and services, quality management, process and capacity design, location, layout design and strategy, human resources and job design, supply chain management, and inventory. Results from the internal environment analysis were used to formulate the internal factor evaluation (IFE) matrix. The use of the IFE matric generated a total score of 2.25 and shows that the company is internally weak. To identify the strategic options for achieving the company’s goals and objectives, the strategy formulation analytical framework by Fred David (2011) was used. Inputs from the EFE and IFE matrices were used to formulate the SWOT analysis. The analysis generated four strategic options – market penetration, related diversification, market development, strengthening internal efficiency. Using the quantitative strategic planning matrix, it was determined that market penetration and strengthening internal efficiency should be pursued to fulfill the long-term objectives of the company. To implement the identified strategies, programs, and activities with corresponding resource allocation, the person-in-charge and timeline as well as supporting policies were formulated. Furthermore, to monitor and review the identified programs against the objectives, key result areas and performance indicators were identified. A contingency plan was also developed to outline the courses of action if unanticipated circumstances divert its goals.