Manila Water Company Inc.

• Main Author: Simbulan, Annabelle A.
• Format: text
• Language: English
• Published: Animo Repository 2004
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4470
• Institution: De La Salle University

This strategic management paper aims to provide proposed strategies for Manila Water Company, the East Zone water concessionaire for the privatized MWSS. The company finds itself in a leadership position, having survived the challenges of the 1997 privatization. Where other water privatization ventures have failed, Manila Water remains financially viable and is a success story in this part of the world. It has to be able to sustain the companys growth for the medium term to be able to fulfill its commitment with the Regulators and its customers. The first section of the paper provides an overview of the water utility industry, its dominant economic features, the major players, the key factors for competitive success as well as opportunities and threats. The water utility industry will also be analyzed using Porters five forces model to provide a better understanding of the proposed strategies that will be discussed in later chapters. The second of the paper details the company situation analysis: the nature of the business, the company value chain, strengths and weaknesses, financial ratios and some strategic issues that should be addressed for the medium term. Manila Water should be able to examine how to use its internal capabilities to further improve its competitive position in view of the challenges ahead. The third section of the paper provides a discussion on the companys vision and mission statements, strategic and financial objectives as well as generic strategies that the company has adopted. This section will also analyze existing and proposed strategies (from an overall perspective and by functional area) in relation to the strategic issues that were already identified. The fourth section of the paper is the implementation strategy that Manila Water must pursue to ensure that the proposed strategies are implemented and executed well to achieve the desired results. The implementation strategy will largely be based on McKinseys Seven S Framework and will also touch on corporate policies to support this framework. The last section of the paper provides financial projections for years 2004-2006 as a result of the proposed strategies for Manila Water. This covers macro-economic environment assumptions particularly on population growth and demand. The section also includes financial projections assumptions and some financial ratios. In conclusion, Manila Water will be able to accomplish moderate growth in the next three years, while keeping its Regulatory commitments. This is consistent with its vision to become an efficient, customer-driven, Filipino-led water company.