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(Case Study)
COMPANY BACKGROUND
H. Braun, Philippines (HBP) was a wholly subsidiary of a West
German multinational corporation which manufactured a line of
chemical and medical products in Europe, Asia and Latin America.
Phil. Subsidiary has 5 operating divisions, each distributing a
selected line of products to institutional and retail outlets.
HBP has always been headed by a West German National and so is
their operating divisions manager
The president hired Ben Santos as assistant who would assist in
the design and institution of a formal Corporate Planning System
for HBP.
The president formed a Strategic Planning Committee to coordinate
the effort to design a corporate planning strategy for HBP.
SWOT ANALYSIS
Strengths
1. Established Company
2. High quality products
offered
3. Well-trained and
qualified managers
4. Flat organizational
structure
5. Varieties of product
offered
Weaknesses
1. Dependent on the
headquarter
2. No specific strategies or
actions on how to achieve
desired goal
3. No flexible rules and
regulation
4. Do not have competitive
advantage over others
5. No collaboration among
the different divisions
SWOT ANALYSIS
Opportunities
1. Economic Recovery
2. Technological Advancement
3. New policy reforms
Threats
1. Increasing competition
2. Environmental issues
3. Government laws and
restrictions
4. Political Instability
MAIN PROBLEM
ISSUES
1. Resistance of the Division Managers/Complaints
2. Low productivity, low profit, not maximized
resources
3. Managers or the headquarters impose its own
rules and regulations to the Philippine
operation without considering the Philippine
setting and situation
4. No fixed strategies on how to achieve the plans
or objectives of the company. No long-term plans
for the companys growth
5. No room for improvement or expansion in terms of
the target market and the product
6. Do not accurately measure the companys overall
performance
Advantages
Disadvantages
No additional cost
needed
No adjustment needed
No conflicts of
interest
No improvement and
room for changes
Cannot maximize
resources and cannot
improve profit
Cannot compete in the
Industry
Advantages
Improve
resource
allocation
Identifies strategic
goal and strategic
intent
Leads to sustainable
competitive advantage
Reduces resistance to
change
Facilitates
communication between
managers
The company will have
its own system to
Disadvantages
Costly to perform
The process is very
complex
Low rate of successful
implementation
CONCLUSION AND
RECOMMENDATION
Since the company lacks corporate planning system,
the group recommends the implementation of Ben
Santos proposal. It would eliminate the resistance
to change of the people involved in the company,
thus gives room for improvement. There would be a
clarity of goals and strategic plans that would lead
to sustainable competitive advantage.
Therefore, we conclude that in every organization a
strategic planning system plays an important role.
It identifies effective ways to achieve the desired
future of the company. It allows constant awareness
of both internal and external environmental
development and how they affect the companys future
growth. It also sets priorities and maintain proper
plan implementation and to monitor and control all
activities to ensure achievement of set targets.