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ben santos strategic analysis
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Ben Santos(Case Study)Borres, Lara MelissaMontes, Kara KirstenOnayan, Jercel May
Quesada, Lordraine KeithSim, CarolineVega, Riena ClaireCOMPANY BACKGROUNDH. 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.
Historically, the 5 operating divisions of HBP had also been headed by West German Nationals who reported to their counterpart product heads at company headquarters in West Germany, as well as to the President of the Philippine operation2SWOT ANALYSISStrengthsEstablished CompanyHigh quality products offeredWell-trained and qualified managersFlat organizational structureVarieties of product offered
WeaknessesDependent on the headquarterNo specific strategies or actions on how to achieve desired goalNo flexible rules and regulation Do not have competitive advantage over othersNo collaboration among the different divisions
3SWOT ANALYSISOpportunitiesEconomic RecoveryTechnological AdvancementNew policy reformsThreatsIncreasing competitionEnvironmental issuesGovernment laws and restrictionsPolitical Instability4MAIN PROBLEMIs there a need for a new corporate planning system?
5ISSUESResistance of the Division Managers/ComplaintsLow productivity, low profit, not maximized resourcesManagers or the headquarters impose its own rules and regulations to the Philippine operation without considering the Philippine setting and situationNo fixed strategies on how to achieve the plans or objectives of the company. No long-term plans for the companys growthNo room for improvement or expansion in terms of the target market and the product Do not accurately measure the companys overall performance
6ALLTERNATIVE COURSES OF ACTIONAdvantagesNo additional cost neededNo adjustment neededNo conflicts of interestDisadvantagesNo improvement and room for changesCannot maximize resources and cannot improve profitCannot compete in the Industry
Alternative 1: MAINTAIN THE CURRENT PLANNING SYSTEM7ALLTERNATIVE COURSES OF ACTIONAdvantagesImprove resource allocationIdentifies strategic goal and strategic intentLeads to sustainable competitive advantageReduces resistance to changeFacilitates communication between managers The company will have its own system to follow DisadvantagesCostly to performThe process is very complexLow rate of successful implementationAlternative 2: ADOPT THE PROPOSED CORPORATE PLANNING SYSTEM (as proposed by Ben Santos)8CONCLUSION AND RECOMMENDATIONSince 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. 9