San Miguel Corporation and A.

Soriano Corporation

I. Time Frame

In the early 1980s, the San Miguel Corporation (SMC) and A. Soriano Corporation (ANSCOR)
Group of Companies, under the leadership of Andres Soriano Jr. addressed a long felt need
for an effective formal planning system for the two companies.

II. Viewpoint

Andres Soriano

Finding the balance within the business, relation of the businesses with each other and how
they co-relate with one another is but one part of the long range planning project that
affects both the budgeting and their capacity for diversity. With the implementation of the
new strategic plan that was enforced throughout the whole company, the SMC and
ANSCOR.

III. Statement of the problem

The Company is to implement a new strategic form of planning to help the 2 companies in
coping with the changes in their environment. Not only on how they can use this change in
the advancement of their respective businesses, but also in adapting new kinds of
businesses as an addition to their organizations portfolios.

IV. Objectives
To determine the efficiency and effectiveness of the new planning system.
To determine the advantages and disadvantages of the new planning system.
To maximize the profitability of each business with the new budget scheme.
To minimize overhead expenses due to the environmental changes as foreseen
by the new planning system.
 To determine the impact of the new planning system on the overall motivation
of the employees of the company.

V. Areas of Consideration

SWOT

Strengths Weaknesses
- Better short-term forecast from the - Time consuming
long term planning. - The company’s focus is centered on
- Better understanding of the the development of the strategic
resource requirements and programs, rather than the people
constraints of the future. implementing it.
Opportunities Threats
 - Create new products to attract new - Keeping up with the challenges of
niches within existing business. adapting to new environmental
opportunities and realities.

VI. Alternative Courses of Actions

ACA ADVANTAGES DISADVANTAGES

1. Monthly, Quarterly and
Annual evaluation of the
new planning system
2. Comparative report on
the old and new budget
schemes
3. Create a
survey/feedback form to
quantify the
motivational effect of
the new planning system
to the employees
- Up-to-date evaluation - Time consuming
report about the effects - Additional resources for
of the new planning the evaluation process
system on the company.
- Changes can be
executed ahead of time
if the need arises.
- The company will be - Additional workload on
able to see the impact the employees.
on the profit margin
basing on the new
budget schemes from
the old one.
- The company will be - Additional workload on
informed on the effect the employees assigned
of the new planning on data gathering for the
system to the work survey.
behaviour of the
employees.

VII. Choice of ACA

5-highest

1-lowest

Variables/ACA 1 2 3
Feasibility 3 1 5
Lesser Expense 3 2 1
Significance 5 4 3
Turn Around Time 1 1 3

VIII. Conclusion and Recommendation

In the analysis of this case, we recommend that the two companies San Miguel Corporation
and Soriano Corporation will incorporate in their new strategy an evaluation plan that would
help in quantifying the effects that was produced by this new strategy.
IX. Action Plan
Detailed Activities Department Duration
Evaluation Report Operations 1 month/1quarter/1year
Comparative Report Accounting Annual
Survey HR 1 quarter after
implementation