A strategic management study for SBC Progress and Business Corporation

• Main Author: Suarez, Ma. Cheryl B.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2295
• Institution: De La Salle University

SBC Progress and Business Corporation (SBC PROBUS) should change its present strategies to reinforce its position in the shuttle service market of the public land transport industry. To do this, SBC PROBUS should adopt the following strategies primarily based on the framework of Michael Porter: Corporate Strategy For its short-term corporate strategy, it should adopt a status quo strategy coupled with some fundamental changes in the different functional areas of the company. In particular, it can segment its market geographically. For its long-term corporate strategy, it should adopt concentric or related diversification strategies. It should diversify into other products or market in such a way that a firms line of business still possesses some kind of fit. The firm can diversify into the expanded shuttle service market that includes school and tourist transport services. It can also pursue geographic expansion by venturing outside the CALABARZON. Competitive Strategy – From none to focus strategy. This means it must select a market segment and build its competitive strategy on serving those in its market better or more cheaply than its competitors. The firm can target companies with at least three-shift production schedule in the industrial growth areas in Luzon. Competitive Advantage From none to cost advantage. This means having the lowest-cost position in the industry. This would stem from a more reliable trip scheduling and lower price compared to competitors. Functional Strategies These will depend on the framework to be adopted in each of the functional area. For marketing, the 4Ps of Marketing will be used. For operations, the framework will include capacity planning, setting standards, inventory management and control. For human resource, empowerment is the framework adopted. The company being a family corporation, its financial strategies will generally evolve within this framework. SBC PROBUS is a closely held corporation with strong familial values attached to it by its owners. Such scenario makes it difficult for the owners particularly the President and Chief Executive Officer to give up the business despite its sliding profits. They have a strong sense of social responsibility to the community and commitment to the public that includes the companys clients, employees, and shareholders. But to attain its vision of being the most competent service provider in the public land transport industry in the Philippines, there is a need to build its shareholders value through sustained growth and superior rate of return, a strong balance sheet, and a service balanced by customer, service and its resource.