California Manufacturing Co., Inc.: A strategic management paper

• Main Author: Gamba, Evangeline B.
• Format: text
• Language: English
• Published: Animo Repository 2000
• Subjects: Food industry and trade > Philippines; California Manufacturing Co; Inc
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3932
• Institution: De La Salle University

The main objective of this paper is to provide systematic frameworks and basis for corporate decision-makers for the formulation and implementation of corporate strategies. It provides a better understanding of the relationship of the company vision with its objectives and strategies to the ever changing macroenvironment. Knowing and understanding the effects of the changes in the macroenvironment provides opportunities for the company's internal strength to abuse with. And it provides the company information to which threats that the company needs protecting itself with. The company selected by the author is California Manufacturing Company, Inc (CMC). The author is currently working as Special Project Engineer. CMC is a strategic business unit for Unilever/Bestfoods International Corporation and it is its biggest food affiliate in the Asian region. Unilever bought Bestfoods Corporation effective last October 2000. Among the brand names that company produces for are: Bestfoods, Knorr, Alsa, Royal, Lady's Choice, Mazola etc. It has two production plant sites and a distribution center. The company has its own marketing and sales department. Concurrently, Best Food International is undergoing various changes due to merging of Best Foods and Unilever. Due to these, the author decided to concentrate its paper in the general direction of where CMC wants to be in the next five years with or without the merger. A framework for the macroenvironmental scan and analysis was proposed and used. Another framework given by Porter was used to analysis the task environment. The macroenvironment and task environment was analyzed to identify the externally the opportunities and threats and internally the strength and weaknesses of the company. The strength and weaknesses were identified on the basis of the opportunities and threat identified in the future environment of the company. Aligning CMC's vision with that of its mother company's vision of becoming the best international food company in the world. It would be logical that CMC would aim to the best Food Company in Asia being its largest affiliate in here. Using the vision as its basis the following company objectives are formulated: (1) Php12 billion Sales by the year 2005 (2) 100% ROI by the year 2005 (3) To maintain 80% market shares across all product lines in the Philippines (4) To be the regional source for Savory and Dressing Product lines in the Asian Region by the year 2005. With the following objectives and the identified strengths that can abuse the identified opportunities and the identified threats that the company needs to protect itself with. And the objectives were based on the company vision. The following company strategies were formulated: (1) To be the Regional Source for two core businesses Savory products & Dressings (2) Acquisition of a New Business Under the Basic Nutritious Foods Category (3) Improve Cost Effectiveness (4) Develop World Class Management Team (5) Seize New Market Opportunities. In with these company strategies and objectives as their basis, each functional area developed their own functional area objectives and strategies. Again, these functional area objectives and strategies were there to attain the company objectives, which was based on the company vision. Assessing the company's internal capability to implement the company strategies uses the 7's analysis as its framework. Upon implementation, the balance scorecard is there to measure the performance of the team in the attainment of the company objectives.