A strategic management plan for the Pablo Borbon Memorial Institute of Technology

• Main Author: Pagalunan, Belen O.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2222
• Institution: De La Salle University

As partial fulfillment of the subject Strategic Management, this term paper was conceived to formulate a strategy for the Pablo Borbon Memorial Institute of Technology, a state-funded educational institution of higher learning located with the business center of Batangas City. An environment analysis discussed the state of competition based on the five forces of competition in the industry, from where some of the opportunities and threats in the industry were identified. A strategic group map of the education industry showed six groups of competitors ranging from those with specialized services to those with full range national scope services. It showed the companys relative position among strategic groups which would help identify its competitive advantage. From these discussions, the industry opportunities and threats faced by educational institutions were identified. Opportunities considered were: high capital investments and government policies served as barriers to entry in the education industry the rivalry is restricted among existing competitors considering industry the rivalry is restricted among existing competitors considering the relatively low pressure from substitute products the growing student populace increase the demand for education better socio-economic conditions enhances per capita income thereby inducing, the peoples penchant for education. The threats identified were the following other industries steer qualified professional away from teaching the abundance of schools and the resultant lo switching costs facilities transfer of student to other schools as they desire high out-migration to other regions determining quality of graduates. Some interesting economic indicators that have significance in education such s demography, government as well as family expenditures on education, and international trends as reported by UNESCO, were also presented. The major areas of concern regarding Instruction, Students Services, Human Resource Development, Research and Extension Services, Budgeting, Accounting and Control were presented in the section about the company. An analysis of the schools financial condition and results of operations for the last five years showed that although the schools viability is ensured by government funding, the negative ratios on invested capital and residual equity connoted that the use of resources were not being optimized. However, the increasing trend of these ratios indicates a consistently improving attention on this aspect. Its good reputation for molding quality graduates at low cost as well as its strong linkage with the other industries provide additional source of scholarships and faculty development that enhances their employability. Wider access to its service is made possible by its extension campus and consortium in other areas of the province. Based on the company strengths and weaknesses, and the industrys opportunities and threats, the generic strategy for PBMIT was identified as overall cost leadership, and the specific strategies were based on strategic dimensions of price policy, specialization and service. The schools competitive advantage differentiate itself from other HEIs due to its lower school fees for quality education, accessibility through extension campuses and consortium, and most of the technology-based courses matches the needs of the emerging industries in the locality as a result of the two major development projects mentioned earlier. Functional strategies called for increased enrollment through distance education, socialized tuition, and consortium, among others generating more income from revenue-producing activities enhancing its research capabilities, developing the technological skills and competence of its educators, and enhancing its linkage with the industries, and improving its systems to provide timely relevant information and reduction/ avoidance of losses.