A strategic management plan for Mega Paper, Incorporated

• Main Author: Cua, Jonatahn C.
• Format: text
• Language: English
• Published: Animo Repository 2001
• Subjects: Paper industry > Philippines; Mega Paper; Inc.
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3945
• Institution: De La Salle University

Mega Paper, Inc. started in 1995 and it was formed for the purpose of trading different intermediate paper products. The basic idea was to buy from local suppliers of paper then sell this at a premium to small printing press companies. Changes in the macroenvironment such as a implementation of the Asean Free Trade Act (AFTA), loss of confidence of the people in the present government, increase in consumption of paper and enactment of the e-commerce law have caused the company to create strategies in order to exploit or protect itself against these changes. The vision of Mega Paper, Inc., of being becoming the International Paper of Asia in 10 years can be obtained by pursuing the proposed strategies. Using its strengths such as its ability to make deals and acquire additional funds, the company is able to formulate the required corporate strategies to attain its objectives of getting an ROI of 15% in 2001. The proposed strategies for the company are as follows: (1) The company must decrease its product lines. This is to protect itself against the slow industry growth which is the result of the loss of confidence to the present government. It will use its strength in its ability to make deals and sustain long customer relationships (2) The company must import its products to negate the effect of the possible new players coming into the industry with the implementation of the AFTA. The company will also use the exploit to continues increase in demand of paper products in the country. It will use its strength in borrowing additional fund for this and its value to preserve its family legacy (3) The company must become e-commerce ready. This is to protect itself against the passing of the e-commerce law by investing in e-commerce hardware and software. It will use its financial strength of borrowing additional funds and its value to preserve its family legacy. In implementing these strategies, the company is required to improve its system, staff and skill to become capable of successfully executing these strategies. These changes will result in a positive financial position for the company to the attainment of the desired corporate objectives.