A strategic management plan for United Mix Creations Corporation

• Main Author: Cueto, Carmen Luz V.
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Shoe industry > Philippines; Boots and shoes > Trade and manufacture > Philippines; Leather industry and trade > Philippines; United Mix Creations Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3678
• Institution: De La Salle University

United Mix Corporations (UMCC) is a company that sells its house brand, the Mario D boro brand of leather and synthetic leather footwear, in leading retail outlets such as Shoemart (SM), Robinsons and Gaisano department stores. UMCC was incorporated in 2003 and is owned and managed by Mr. Alan Ong. In 2006, the Mario D boro brand attained the rank of #3 in SMs Department Store sales and was #2 in Robinsons Department Store sales for footwear. The company is in the apparel industry, specifically the retail segment of apparel. The need being satisfied by firms in this segment is the need for availability and accessibility of clothing or apparel. The macro-environmental analysis resulted in the identification of the following threats: (1) increase in the cost of doing business in the Philippines due to deficiencies in power and infrastructure (2) government subsidies for small businesses and entrepreneurs (3) increase in price-sensitive buyers (4) increase in department stores and malls nationwide, as well as an increase in the use of online shopping channels and (5) entry of more foreign brands into the country. The following opportunities were also identified: (1) government will continue to develop infrastructure for local and international transport (2) relatively lower import taxes imposed by the government to help local businesses (3) the growing use of the Internet as a medium of business communication (4) the increase in the amount of disposable income per household and (5) affordability and availability of applications software for internal business operations. After an internal analysis was done, the following strengths of the company were identified: (1) strong supplier relationships (2) a competent Quality Assurance contact in China (2) established relationships with retail outlets and (3) the continuous inflow of new styles. The following weaknesses were identified as well: (1) lack of focus and alignment between functional area and department goals (2) inaccurate inventory monitoring and control (3) no formal procedures for sales monitoring and control (3) lack of demand planning and forecasting (4) no formula for allocation to retail outlets (5) lack of employee empowerment (6) no online presence (7) lack of market analysis efforts and (8) lack of monitoring and control in operations. To attain its vision of becoming the partner of choice of their retail partners, and the brand of choice of their customers for quality, trendy, and affordable clothing, UMCC has the following corporate objectives: (1) To achieve Php50 Million in net profit in 2012; and (2) To rank as #20 in the list of Top Local Clothing Retailers according to published Euromonitor International reports by 2012. To achieve these objectives, the company should (1) compete on more product lines and distribution channels; and (2) invest in cost-efficiency in operations. Functional strategies in Operations, Marketing and Sales, Supply Chain Management, Category Management, Human Resources and Information Management were based on the proposed corporate strategies. The 7-S McKinsey Framework was used to prepare the company for the implementation of the proposed strategies. The findings detailed in the 7-S framework served as the basis for identifying the tasks that need to be done in order to make the strategies successful using the 8-SIT (Strategy Implementing Tasks) Framework.