For Printing Ringbind A4

Republic of the Philippines
Pamantasan ng Lungsod ng Maynila

(University of the City of Manila)
Intramuros, Manila
PLM BUSINESS SCHOOL
FIRST SEMESTER 2022-2023
STRATEGIC MANAGEMENT PAPER FOR

PERMEX PRODUCER AND EXPORTER CORPORATION
MASTERS IN BUSINESS ADMINISTRATION
Submitted to:
MR. HEHERSON MARAYAG
Submitted by:
USMAN, ISHAQ PANDALAN
2023
GRADUATE SCHOOL OF MANAGEMENT
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TABLE OF CONTENTS
I. EXECUTIVE SUMMARY…………………………………………………………….. 08
INTRODUCTION……………………………………………………………….. 08
1.1. Company Background…………………………………………………….. 09
1.2. Company’s Vision and Mission…………………………………………... 10
1.3. Product Offering…………………………………………………………… 10
1.4. Organizational Chart………………………………………………………. 13
II. LIMITATION OF THE STUDY………………………………………..................... 14
III. COMPANY’S VISION AND MISSION
3.1. Evaluation of the current mission, vision, and objectives…………... 17
3.2. Recommendation for a revised mission and vision…………………. 22
3.3. Proposal on how the organization will be cascade the new mission.
and vision……………………………………………………………………. 26
IV. INDUSTRY ANALYSIS
4.1. Porter’s Five Forces Analysis………………………………………….. 28
4.2. Competitive Profile Matrix (CPM)……………………………………… 30
V. EXTERNAL ENVIRONMENTAL ANAYLSIS
5.1. Key External Factors…………………………………………………… 32
5.2. EFE Matrix………………………………………………………………. 36
5.3. THREATS………………………………………………………………... 37
VI. INTERNAL ENVIRONMENTAL ANAYLSIS
6.1. IFE ANAYLSIS……………………………………………………………… 40
6.2. OPPORTUNITIES………………………………………………………….. 41
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VII. STRATEGY FORMULATION
7.1. SWOT Analysis and Matching………………………………………….. 43
7.2. Strategic Position and Action Evaluation Matrix (SPACE)………….. 46
7.3. Boston Consulting Group (BCG)……………………………………... 49
7.4. Internal External Matrix………………………………………………… 52
7.5. Grand Strategy Matrix………………………………………………….. 53
7.6. Tally Matrices……………………………………………………………. 55
7.7. Quantitative Strategic Planning Matrix (QSPM)……………………... 55
VIII. PROPOSED STTRATEGIC OBJECTIVE
8.1. Strategic Objective with optional secondary strategy………………. 56
8.2. Financial Objective……………………………………………………… 56
IX. IMPLEMENTATION AND ACTION PLANS
9.1. Strategy Map…………………………………………………………….. 57
9.2. Department Action Plan………………………………………………... 57
9.3. Financial Projection for the next three (3) years…………………….. 57
X. EVALUATION AND ACTION PLAN
10.1 Strategic Objective with Secondary Strategy………………………... 58
10.2 Financial Objective……………………………………………………… 58
10.3 Recommendation Strategies…………………………………………... 58
XI. IMPLEMENTATION AND CONTROL
11.1. Balance Scorecard……………………………………………………... 59
APPENDICES…………………………………………………………………………... 60
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REFERENCES…………………………………………………………………………. 74
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Republic of the Philippines
Pamantasan ng Lungsod ng Maynila
(University of the City of Manila)
Intramuros, Manila
APPROVAL SHEET
In partial fulfillment of the requirement for the Degree of master’s in business
administration. This Strategic Management Paper: Permex Producer and Exporter
Corporation
By:
USMAN, ISHAQ PANDALAN
Who are hereby recommended for acceptance and approval for Panel Defense
PROF. HEHERSON F. MARAYAG
Co-researcher
Approved and accepted during final oral defense held on (Month & Year)
With the rating of %
Chairperson
Member Member
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ACKNOWLEDGEMENT
The researchers would like to give their sincere thanks who had made their
Strategic Management paper possible and successful. Motivated with enthusiasm, hard
work, and passion along with those people who served as their inspiration. They know
that this work will be a success for each one of them.
First, I would like to give my utmost gratitude to my mentor and advisor as well as
the valued and respected Professor of Strategic Management Paper Mr. Heherson F.
Marayag who gave me the opportunity to encounter this experience also for teaching and
guiding me all throughout the duration of the paper. He never ceases in parting his
knowledge for the good and improvement of the conducted paper.
I would also want to thank my loving family, for their moral support. Thank you for
the inspiration and giving them the strength to go on and finish this paper. All the prayers
and encouragements helped me to do my best to have well results.

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RECOMMENDATION
The Strategic Management Paper for Permex Producer and Exporter prepared
and submitted by Usman, Ishaq Pandalan, is fulfillment of the requirement of the Course
requirement of Strategic Management for the degree in master’s in business
administration and has been examined, found acceptable and recommended for its final
submission.
PROF. HEHERSON F. MARAYAG
Adviser
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CHAPTER I
EXECUTIVE SUMMARY
INTRODUCTION
Canned goods and preservative-added consumables have spread far and wide in
areas prone to typhoons and natural disasters, such as the Philippines. It is critical to
obtain these goods due to their ease of use, especially when dealing with droughts and
natural disasters. Permex Producer and Exporter Corporation thus creates a good
competition as demand for canned goods rises due to convenience and purposeful
utilization for the benefit of the masses.
The goal of this paper is to establish a concrete analysis that circulates on the
Permex Producer and Exporter Corporation's premises. This is to identify the production,
potential strategies, financials, and the manufacturer's approaches to the opportunities
and threats coexisting in the industry in which they operate, and how these affect the
overall means of the corporation to produce their products through the lens of their
market's demands.
In a more transparent manner, the paper demonstrates why this corporation is
advantageous in terms of its quality products and internal industry position, as well as
how potential strategies could market the products to future international and local
partnerships. In contrast, the paper also indicates facts about the corporation's current
standing among other canned productions in the Philippines, as well as how it could
establish a market development to these existing competition and threats.

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A. COMPANY BACKGROUND
Permex Producer and Exporter Corporation is based in ASIA, which is critical to
the company's access to fresh fish for one of the many products that the
company produce for some of the world's best brands. Permex Produce and Exported
Corporation aims to establish a world-class, globally competitive tuna and sardine
canning factory.
During the early part of 1985, Permex Producer and Exporter Corporation
established its Sardines and Tuna canning operations in Zamboanga City. The facility is
located on a 12-hectare lot in Zamboanga City and is licensed to operate under License
No. RDII-RIX-F-1376 on the western island of Mindanao. From its initial capacity of 10
metric tons with a work force of 300, the company has grown over the years to become
one of the country's largest and most efficient tuna and sardine processing plants,
employing approximately 2,000 people and with a current rated capacity of 120 metric
tons of tuna and 150 metric tons of sardines per day.
Permex has its own landing pier for docking local and foreign fishing boats, which
can accommodate up to an 8,000 tonner vessel. Aside from the Permex production area,
6 separate warehouse buildings (14,000 sq. m.), ice plant (180 Metric tons per day), cold
storage facility for 1,200 metric tons fish storage at -25C, and 450 worker space
accommodation, the facility boasts a tuna cleaning area that is fully air-conditioned with
temperature maintained at 70F.
Permex takes pride in being the only Philippine fish cannery to receive a "Double
Triple A" rating from Canada's Department of Fisheries and Oceans (DFO, now CFIA) in
1991. After passing the Canadian Food Inspection Agency's stringent quality
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management program, the company was able to maintain and enjoy preferential status
for its products in Canada. The company was also given the Golden Shell Award for
Export Excellence in 1991, making it the first fish cannery to receive this prestigious award
from the Department of Trade and Industry (DTI) and the Center for International Trade
and Expositions and Missions (CITEM).
B. COMPANY’S MISSION AND VISION
MISSION:
• We are committed to provide its customers at a reasonably competitive price its
canned food commodities, produce consistent quality products and timely delivery
ensuring satisfaction of buyer’s requirements, develop and expand our export and
domestic market while maintaining a high level of standard through its
implementation of HACCP Management System
VISION:
• We aim to be a world class Tuna and Sardines canning factory that is globally
competitive.
C. PRODUCT & SERVICE OFFERING
• SARDINES
The Permex Producer & Exporter Corporation sells two types of sardines on the
market:
The King Cup Sardines are made from fresh Tamban fish that has been
fried in a tomato sauce with just the right amount of spices for mass-market
consumption. The sardines also have a firm, meaty texture that is uncommon in
market sardines. It also has an easy-open can and a net weight of 155 grams for
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customer convenience. There are two options: King Cup Sardines in Tomato
Sauce and King Cup Sardines in Tomato Sauce with Chili Added.
The Paradiso Sardines are also made from fresh Tamban fish that has been
marinated in tomato sauce, and for a more flavorful dish, mixed herbs and spices
were added to the sardines. These sardines will transport people to paradise. It
also has an easy-open can and a net weight of 155 grams for customer
convenience.
• TUNA
Varieties of Permex Tuna
Tuna Adobo, Tuna Afritada, Tuna Caldereta, Tuna Hot and Spicy, Tuna
Mechado, Tuna Sweet and Sour, and Tuna Flakes in Oil are the seven Permex
Tuna varieties.
Permex Tuna Flakes
Everyone will enjoy this healthy treat. This tuna is thinly sliced in vegetable
oil and served hot and spicy. It comes in three flavors: Tuna Flakes in Oil, Tuna
Flakes in Oil (Hot and Spicy), and Tuna Flakes in Oil (with Vegetable Broth).
Permex Tuna Chunks
These are tuna meat pieces that are ideal for recipes and preparation. It
has three variants which are Tuna Chunks in Oil, Tuna Chunks in Water, and Tuna
Solid in Oil.
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• AGRICULTURAL PRODUCTS
Fish Oil
The Permex Fish Oil is processed using the high quality criteria ensuring
that they have safe and good quality marine fish oil that is free of toxins. It is made
from young, wild-caught fish that are not suitable for canning.
Fish Soluble
The fish soluble is rendered by processing quality fish harvest that is not
appropriate for canning. To ensure that the fish soluble maintains its high
nutritional value and consistency, they produce it under the most strict quality
management procedures.
Fish Meal
The fish meal is not also appropriate for canning as it is also made from
wild-caught small fish. To ensure the fish meal retains its consistency and
nutritional value, the company follows stringent quality management requirements
during processing.
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D. ORGANIZATIONAL CHART
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CHAPTER II
LIMITATION OF THE STUDY
The limitations of the study are those characteristics of design or methodology that
impacted or influenced the application or interpretation of the results of your study. They
are the constraints on generalizability and utility of findings that are the result of the ways
in which you chose to design the study and/or the method used to establish internal and
external validity. (Research Guides: Organizing Academic Research Papers: Limitations
of the Study, n.d.)
This strategic management paper is not a guarantee of future success of a
company. It has limitations, such as the ones listed below:
1. This strategic management paper is not a decision-making tool. Nobody can
accurately predict the future. The paper provides overall guidance and direction
based on our assumptions of what will occur.
2. The requirements for the strategic management paper limit what the researcher
can perform.
3. The strategic management paper is not a future-oriented blueprint. Too many
changes are taking place: the marketplace is changing, customer preferences are
changing, there is new competition, new technologies, new opportunities, the
economy is declining, and so on. This paper is a dynamic process, which is
receptive to change.
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4. The majority of the data obtained is secondary or tertiary data obtained from
various sources such as the internet, books, magazines, news-papers, blogs, and
educational videos. Furthermore, data sources, company profiles, financial
statements, balance scorecards, and corporate social responsibility reports were
obtained from the company's website, and annual reports were obtained from the
SEC -Security and Exchange Commission and reliable internet sources.
5. The strategic management paper will not identify all of the organization's critical
issues. Strategic planning aims to identify the most important issues that will face
the organization. Strategic plans reduce detail by focusing on major issues,
increasing the likelihood of successful implementation.
6. Data such as operational highlights, financial accounts, and financial projections
are included in this strategic management report. The industry analysis
necessitates research on recent economic conditions, trends, and industry history.
Competitors in the same industry are also investigated by reviewing the subject
company's background, financial statements, market shares, and annual reports
to determine the subject company's present position in the industry.
7. Sources of information, company profiles, financial statements, balance
scorecards, and corporate social responsibility reports were obtained from the
Permex Producers and Exporters Corporation's website and annual reports is from
the Security and Exchange (SEC).
8. The financial assumptions and projections are based on the subject company's
current status. Any state laws passed and implemented during and after the study
that may have an impact on future operations, financial statements, or

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stakeholders will not be considered. Similarly, the study does not account for any
future economic or health crises that may have an impact on the financial
projections and assumptions.
9. The audited Financial Statements for the fiscal years 2018 to 2021 and the
unaudited Financial Statements for the fiscal year 2022 served as the study's base
years. Financial projections from CY2023 to 2025 should not be construed as
Permex Producers and Exporters Corporation's actual financial statements.

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CHAPTER III
COMPANY’S MISSION AND VISION
A mission statement defines the organization’s business, its objectives, and how it
will reach these objectives. A vision statement details where the organization aspires to
go. (Atlassian, n.d.)
A. EVALUATION OF THE CURRENT MISSION, AND VISION STATEMENT
Good business leaders create a vision, articulate the vision, passionately
own the vision, and relentlessly drive it to completion.
—Jack Welch, former CEO of General Electric
When evaluating the existing mission and vision of the Permex Produce and
Exporter Corporation, the researcher uses the following method below:
• SMART (SPECIFIC, MEASURABLE, ATTAINABLE, REALISTIC AND TIME-
BOUND)
The vision and mission of an organization, when combined, provide a broad,
overall sense of the organization's direction. To work toward these overarching
goals, organizations must also develop goals—narrower objectives that should
provide clear and tangible guidance to employees as they perform their daily tasks.
The most effective objectives are those that are specific. Edwards (2014)
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EVALUATION OF VISION STATEMENT:
A vision statement should contain a summary statement that is memorable and
enhances the effectiveness of our vision statement by acting as a trigger to the
rest of the vision in the minds of those people who read it. (The Components of a
Good Vision Statement - Change Factory, 2016) Permex Produce and Exporter
Corporation's Vision Statement is straightforward and simple to grasp. It is also
simple to remember for anyone.
The research will ensure that a vision statement contains a summary statement
that is memorable and enhances the effectiveness of Permex Produce and
Exporter Corporation vision statement by acting as a trigger to the rest of the vision
in the minds of those who read it.
“We aim to be a world class Tuna and Sardines canning factory that is globally
competitive.”
Table 1. Evaluation of Current Vision Statement

Yes /
Parameter Evaluation
No
Permex Produce and

Exporters Corporation's goal to
become a top-tier tuna and
1. Does it clearly answer the question,
Yes sardine canning facility that is
―What do we want to become?”
globally competitive is stated
clearly in the company's vision
statement.
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The vision statement for

Permex Produce and
Exporters Corporation is
concise and specific about
what they desire to
2. Is it concise enough yet inspirational? No
accomplish; nevertheless, it
does not include any
motivating statements that
might affect the organization or
employees.
The vision statement of

Permex Produce and
3. Is it aspirational? Yes
specific. They are driven to
sardine canning facility.

Permex Produce and
4. Does it give a clear indication as to Exporters Corporation did not
No
when it should be attained? specify an important deadline
for when its objective(s) to be
achieved.
EVALUTION OF MISSION STATEMENT:
The researcher is also employing Evaluation Questions, which will result in
a more precise and clear revision of the mission statement.
We are committed to provide its customers at a reasonably competitive
price its canned food commodities, produce consistent quality products and timely
delivery ensuring satisfaction of buyer’s requirements, develop and expand our
export and domestic market while maintaining a high level of standard through its
implementation of HACCP Management System

20
Table 2. Evaluation of Current Mission Statement

Yes /
Components Evaluation
No
Customer was stated in the Permex

1. Customers Yes Produce and Exporters Corporation's
Mission Statement.
The products that Permex Produce and

Exporters Corporation offers to the market
2. Products or Services Yes are described as having "reasonably
competitive prices for its canned food" in
their mission statement.
The mission statement of Permex Produce

and Exporters Corporation included the
statement, “ensuring satisfaction of buyer’s
3. Markets Yes
requirements, develop and expand our
export and domestic market." Thus, Market
is indicated.
No indication of the use of new technology

4. Technology No except that the company is using a system
called HACCP Management System

and Exporters Corporation suggests
profitability, expansion, and survival.. The
phrase "produce consistent quality products
5. Survival, Growth and and timely delivery ensuring satisfaction of
No
Profitability buyer’s requirements, develop and expand
our export and domestic market while
maintaining a high level of standard through
its implementation of HACCP Management
System" indicates consistency.
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Permex Produce and Exporters

Corporation's philosophy is that, "We are
committed to provide its customers at a
6. Philosophy Yes
reasonably competitive price its canned
food commodities, produce consistent
quality products and timely delivery."
The Phrase "We are committed to provide

its customers at a reasonably competitive
price its canned food commodities, produce
7. Self-Concept Yes
consistent quality products and timely
delivery ensuring satisfaction of buyer’s
requirements,"
Permex Produce and Exporters Corporation

wanted to show to the public that they hold
8. Public Image Yes and maintaining a high level of standard
through its implementation of HACCP
Management System

9. Employees No and Exporters Corporation indicate the
customer but no employee.
EVALUATION OF VISION STATEMENT:
A vision statement should contain a summary statement that is memorable
and enhances the effectiveness of our vision statement by acting as a trigger to
the rest of the vision in the minds of those people who read it. (The Components
of a Good Vision Statement - Change Factory, 2016) Permex Produce and
Exporter Corporation's Vision Statement is straightforward and simple to grasp. It
is also simple to remember for anyone.
The research will ensure that a vision statement contains a summary
statement that is memorable and enhances the effectiveness of Permex Produce

22
and Exporter Corporation vision statement by acting as a trigger to the rest of the
vision in the minds of those who read it.
B. RECOMMENDATION FOR A REVISION OF MISSION AND VISION.
REVISED MISSION STATEMENT:
Using Fred David's Components and Characteristics for a Mission
Statement, the mission statement was assessed. The mission statement
has eighty (80) words long, which is within the recommended range for a mission
statement, which is not to exceed two hundred fifty (250) words. It is made up of
nine (9) parts (customers, products or services, markets, technology, concern for
survival/growth/profits, philosophy, self-concept, concern for the firm's reputation,
care for staff), and it identifies the usefulness of the products the company sells.
The following mission statement is advised in light of this:
• Our mission is to provide food products of high quality and superior value at a
reasonable price for its canned food commodities, as well as timely delivery to
ensure buyer satisfaction while responding to our customers' growing needs.
• Develop and expand our export and domestic markets while maintaining a high
level of quality control through the implementation of the HACCP Management
System and Technology.
• Maintain a high level of employee motivation and ensure that safety and security
of our staff.
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Table 3. Evaluation of Revised Mission Statement

Yes /
No

Mission Statement.

Exporters Corporation offers to the
market are described as having
"provide food products of high quality
2. Products or Services Yes and superior value at a reasonable price
for its canned food commodities, as well
as timely delivery to ensure buyer
satisfaction while responding to our
customers' growing needs."
The mission statement of Permex

Produce and Exporters Corporation
3. Markets Yes included the statement, " to ensure
buyer satisfaction while responding to
our customers' growing needs."
With revised Mission Statement,

"Develop and expand our export and
domestic markets while maintaining a
4. Technology Yes high level of quality control through the
implementation of the HACCP
Management System and using a new
technology."

Producer and Exporter Corporation
suggests profitability, expansion, and
survival.. The phrase "Develop and
5. Survival, Growth and expand our export and domestic
Yes
Profitability markets while maintaining a high level
of quality control through the
technology."
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Permex Producer and Exporter
Corporation's philosophy is that, "Our
mission is to provide food products of
high quality and superior value at a
6. Philosophy Yes reasonable price for its canned food
commodities, as well as timely delivery
to ensure buyer satisfaction while
responding to our customers' growing
needs."
The Phrase "to ensure buyer

7. Self-Concept Yes satisfaction while responding to our

Corporation wanted to show to the
public that they hold and maintaining a
8. Public Image Yes
high level of standard through its
implementation of HACCP
Management System
9. Employees Yes includes "Maintain a high level of
employee motivation and ensure that
safety and security of our staff."
REVISED VISION STATEMENT:
The company's vision statement satisfies the criteria used to evaluate the
statement, hence the following vision statement is advised:
Our vision is to become a world-class tuna and sardines canning factory in
2028 that is globally competitive, while also enhancing our brands through
continuous investments in cutting-edge technology and the expansion and
development of our business.

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Table 4. Evaluation of Revised Vision Statement

Yes /
No
Permex Produce and
Exporters Corporation's
goal to become a top-tier
1. Does it clearly answer the question, What tuna and sardine canning
Yes
do we want to become?” facility that is globally
competitive is stated clearly
in the company's vision
statement.
Permex Produce and
2. Is it concise enough yet inspirational? Yes
what they desire to
accomplish; "to become a
world-class tuna and
sardines canning factory."

Permex Produce and

Permex Producer and
4. Does it give a clear indication as to when it Exporter Corporation
Yes
should be attained? specify an important
deadline for when its
objective(s) to be achieved.
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C. PROPOSAL ON HOW THE ORIGANIZATION WILL CASCADE THE NEW
MISSION AND VISION.
The mission and vision statements are crucial in achieving Permex Produce
and Exporters Corporation goals. It is crucial to communicate this to the company's
stakeholders and personnel. This requires the company to post statements across
the company's and its branch offices' buildings and floors. To motivate employees,
make sure that the statements they hear are clear and imprinted in their hearts.
This will raise their feeling of purpose, boost their productivity, and help the
organization reach its objectives.
Statements pertaining to the company's clients and stakeholders should be
published on the website as well as on any Permex Produce and Exporters
Corporation official social media profiles. Employees of the company should put
these statements into practice and give examples of them.
The organization must maintain consistency in its conduct, statements, and
actions. It must also build a bridge between its employees and other employees,
its employees and top management, and its corporation and its customers.
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CHAPTER IV
INDUSTRY ANALYSIS
Industry analysis is a tool that helps a company understand its position in relation
to other companies that make similar products or provide similar services. Understanding
the forces at work in the industry as a whole is a critical component of effective strategic
planning. Small business owners can use industry analysis to identify the threats and
opportunities that face their companies and focus their resources on developing unique
capabilities that could lead to a competitive advantage. (Industry Analysis, 2018)
Permex Producer and Exporter Corporation is classified as a manufacturing
company in Section C of the Philippine Standard Industrial Classifications (PSIC) 2009,
which was updated in 2019. (2019 Philippine Standard Industrial Classification (PSIC) |
Philippine Statistics Authority, n.d.)
This area comprises the processing of agricultural, forestry, and fisheries products
into food for humans or animals, as well as intermediary products that are not directly
food products and may be of greater or lesser value. This area is divided into activities
that deal with various types of food goods. Production might be done on one's own or by
a third party. Some activities are considered manufacturing even if the products are sold
at retail in the producer Nulls own shop. When the processing is modest and does not
result in a true transformation, the unit is categorized as Wholesale and retail trade
(Section G). (2019 Philippine Standard Industrial Classification (PSIC) | Philippine
Statistics Authority, n.d.)

28
A. PORTER’S FIVE FORCES ANALYSIS
Porter Analysis is a tool for assessing a company's market position. It derives five
forces from industrial organization (IO) economics that determine an industry's
competitive strength and, thus, its attractiveness (or lack thereof) in terms of profitability.
Michael E. Porter of Harvard University created it in reality. This analysis also takes into
account the external forces that influence a company's ability to service its customers and
generate a profit. Given the overall average shift in industry details, a change in either of
the forces usually necessitates a business unit's re-evaluation of the marketplace.
Permex Producers and Exporters Corporation is currently the only company in the
Philippines to have earned Canada's Department of Fisheries and Oceans' unusual
"Double Triple-A" rating, and it is one of the few EU accredited sardine and tuna canning
plants in the Philippines. It has frequently been recognized and cited for its commitment
to performance, which gives it a competitive advantage over other businesses such as
Century Pacific Food, Inc. As a result, here is Permex Producers and Exporters
Corporation's Porter's Model Analysis.
THREATS OF NEW ENTRANTS
• There are various brands in the industry that provide canned sardines and tuna
products at a lower cost for the Philippines.
• There are new brands in the Philippines' Seafood Processing Companies that offer
tastier canned sardines and tuna products at a lower price than Permex Producers
and Exporters Corporation.

29
• Customers purchase new brands of canned sardines and tuna products because
of the new flavor and promotional offers.
BARGAINING POWER OF BUYER
• The customer has the ability to purchase canned sardines and tuna products from
the competitors of Permex Producers and Exporters Corporation.
• Competition is usually stronger than its competitor which is Century Pacific Food,
Inc.
• The buyers can switch orders between different Seafood Processing Companies
in the Philippines companies who offer a low-cost.
• It is economically feasible for the buyers to purchase canned sardines and tuna
products from several companies at once.
BARGAINING POWER OF SUPPLIER:
• Annual fish bans, as well as increased market demand for fresh tuna, may cause
suppliers to raise their prices.
• Conflicts between the Philippines' and Indonesia's borders could put a halt to the
sale of fresh caught tuna in the country, given that Permex is used to purchase
tuna from foreign countries such as Indonesia.
• Food packaging such as Tin cans here in the Philippines may increase due to the
inflation rates that keeps increasing

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THREATS OF NEW SUBSTITUTE
• In the Seafood Processing Companies in the Philippines, the replacements for
canned sardines and tuna items are available at cheaper costs.
• Profits of alternative producers are increasing.
• Substitute producers are expanding their potential, and production.
• When substitute options are affordable, the consumer continues to assess pricing
and efficiency.
COMPETITIVE RIVALRY BETWEEN THE EXISTING BUSINESS
• The competition between the companies in Seafood Processing Companies in the
Philippines and in the marketplace is very competitive due to the tastier taste, and
offering an affordable product.
• The competition between companies is diverse, their goals, tactics, and finances
become more volatile.
• The competitive rivalry between the existing business in Seafood Processing
Companies in the Philippines increases as the number of competitors in the
industry also increases.
B. COMPETITIVE PROFILE MATRIX
A competitive profile matrix is a tool that allows company to directly compare its
strengths and weaknesses to those of industry competitors. The researcher will use four
elements for the matrix: critical success factor, weight, rating, and score. The areas that
will determine the success are known as critical success factors. (Riserbato, 2022b)
31
The company chosen for this study is Permex Produce and Exporter Corporation.
Mega Fishing Corporation (MFC), Columbus Seafood Corporation, Universal Canning
Incorporated, Ayala Seafood Corporation, Atlantic Foods Corporation, Century Pacific
Foods Incorporated, Aquatic Seafoods Corporation, and Southwest Asian Canning
Corporation are among the competitors.
Table 5. Competitive Profile Matrix
Permex Producer and Exporter Corporation, one of the Philippines' Seafood
Processing Companies, has a total weighted score of 1.45, according to the table above.
According to the information gathered about the corporations, Permex Produce and
Exporters Corporation appears to be the least of the three (3) major competitors in the
Philippines' canned sardine and tuna product sector.

32
CHAPTER V
EXTERNAL ENVIRONMENTAL ANALYSIS
External analysis, also known as environmental analysis, is the process by which
businesses objectively assess changes in their industry and the larger world that may
have an impact on their current business operations. Companies do this to ensure that
they can adapt to changes and remain successful in their industry. (Indeed Editorial
Team, 2023)
A. KEY EXTERNAL FACTORS
ECONOMIC FACTOR
PERMEX is one of the largest tuna and sardine processing plants in the country.
Despite its superiority, the company faces challenges because sardine production by
locally-based canneries may be hampered due to a labor shortage. Edgar Lim, the
manager of the canning corporation of Permex Producer and Exporter Corp., also
provides displaced workers with temporary work so that no worker is unemployed.
The majority of cannery output in the Philippines is exported to the EU and US
markets. The country exported 10.4 million cases of canned tuna in 2014. Domestic
cannery production in the Philippines appears unlikely to increase due to raw material
supply issues caused by decreased domestic catches and restricted access to
Indonesian waters.
33
The annual value of tuna exports prepared as sardines has reached $12 million,
demonstrating the country's top exporter status, according to the trade official.
Furthermore, all of these contribute to the growth and sustainability of the economy.
SOCIAL FACTOR
Permex Produce and Exporters Corporation is one of the Philippines' largest tuna
and sardine processing plants, employing approximately 2,000 people and producing a
variety of sardine canned goods for both domestic and international consumption.
South West Asian Canning Corp had to halt operations to repair a broiler that
caught fire, killing one worker and injuring two others. Permex Produce and Exporters
Corporation announced plans to hire 300 employees who were laid off as a result of South
West Asian Canning Corp's temporary closure. According to Edgar Lim, manager of the
Permex Produce and Exporters Corporation, canning plants typically support one another
to ensure that no workers are laid off, especially in an emergency. In this case, we can
determine and demonstrate how generous Filipinos are by giving and providing more than
is expected of them.
CULTURAL FACTOR
Among the major sardine industry players were Mega Fishing Corporation,
Columbus Seafood Corporation, Universal Canning Incorporated, Ayala Seafood
Corporation, Atlantic Foods Corporation, Century Pacific Foods Incorporated, Seacoast
Top Food Corporation, and Goldstar Seafood Corporation.

34
Most of these competitors were extremely competitive in the Philippines due to
their well-known brands, popular advertising capabilities, and extensive distribution
networks. Permex Produce and Exporters Corporation, on the other hand, kept a price
advantage over competitors by producing low prices at a lower cost. It is committed to
providing canned food goods at a reasonable cost to its customers, delivering consistent
quality products and timely delivery to maintain client satisfaction, developing and
expanding export and domestic markets, and maintaining a high level of standard through
the implementation of the HACCP Management System. In addition, they devised some
strategies to distinguish themselves from the competition.
The Mindanao tuna canneries of Alliance Selected Foods International, Celebes
Canning Corp., General Tuna Corp., Ocean Canning, Philbest Canning Corp., Seatrade
Canning Corp., and the Zamboanga-based Permex Produce and Exporters Corp. met the
European market's requirements, demonstrating how competitive we Filipinos are.
Furthermore, the company met increased customer and distributor demand, which aided
in increasing product supply and corporation.
ENVIRONMENTAL FACTOR
In the Philippines, several environmental concerns are emerging. Individuals are
not the primary cause of these issues; rather, large corporations abuse their power.
Permex owns and operates canned tuna and canned sardine canning lines. Given
the company's modern infrastructure and resources, it was able to engage in extensive
35
sea fishing. Every year after tuna and sardine production, Permex was manufactured
because the fish waste was collected and used as compost and animal food.
This benefited not only humans, but also the environment, particularly animals.
LEGAL FACTOR
Permex Produce and Exporters Corporation was established in early July 1985
with the goal of producing a diverse range of canned sardine and tuna products for sale
both locally and internationally. Permex was one of the few EU-accredited sardine and
tuna canning plants in the Philippines. The company's Asian location was critical to its
ability to obtain fresh fish for many of its products.
There are long-term issues that affect a wide range of ecological and human issues
that Permex Produce and Exporter Corporation faced. Tuna stock sustainability is a
challenge for canned tuna processors and other key players in the canned tuna supply
chain, with biological limits for bigeye and yellowfin approaching and concerns about
skipjack and albacore's long-term sustainability. These constraints have serious
implications for long-term access to adequate raw material supplies.
GOVERNMENT AND POLITICAL FACTOR
Sardine production was supposed to be seasonal due to the annual fish ban. The
prohibition was enforced by the Bureau of Fisheries and Aquatic Resources (BFAR),
which was supported by the canneries. The entire Zamboanga Peninsula was subject to
36
a fish ban, which began on December 1 and lasted until March 1, giving fish three months
to reproduce and spawn.
B. EXTERNAL FACTORS EVALUATION MATRIX (EFE)
The External factors Evaluation matrix (EFE) is used to audit a company's external
factors. External factors are classified as opportunities or threats in the EFE matrix. A
company can capitalize on opportunities while avoiding or mitigating threats. (2012b)
Table 6. External Factors evaluation matrix (EFE)

37
According to the illustration above, Permex Produce and Exporter Corporation has
a total weighted score of 3.17 as one of the Seafood Processing Companies in the
Philippines. It implies that the Permex Producers and Exporters Corporation is regarded
as a strong player in the Philippines' canned sardine and tuna industry.
C. THREATS
Economic Condition
Due to the pandemic, the present state of the failure in the economy in the Philippines is
considered as the threat in Permex Produce and Exporters Corporation.
Political, or Legal Factors
The changes in government policies are examples of political factors that are considered
a threat in Permex Produce and Exporters Corporation. In fact, the government may raise
38
taxes on some firms while lowering them on others, which has a direct impact on
businesses.
Seasonal and Climatic Factors
The Seasonal fish ban that spans three months is considered a threat in Permex Produce
and Exporters Corporation under its seasonal and climatic factors.
Competition in the Industry
The competition in Seafood Processing Companies in the Philippines is considered a
threat to Permex Produce and Exporters Corporation because the customers may
patronize the canned sardines and tuna goods competitors.
Existing of New Companies in the Industry
A strong threat to potential competitors in Seafood Processing Companies in the
Philippines. As a result, new entrants will quickly join the industry. As more companies
enter the market, profit potential of Permex Produce and Exporters Corporation will
decrease.
Inflation Rate
Inflation limits the purchasing power of the customers in Permex Produce and Exporters
Corporation. This indicates that if the customers contribute to lower levels of purchasing
power, therefore the company will decrease the sales.

39
CHAPTER VI
INTERNAL ENVIRONMENTAL ANAYLSIS
An internal environmental analysis is a thorough examination of all aspects of a
company's operations, internal policies, and mission. Marketing strategy, production
capacity, and the company's vision and leadership are typical aspects of operations
reviewed. All these aspects are scrutinized with a critical eye to identify those that may
be problematic but go unnoticed in daily operations. (“What Is an Internal Environmental
Analysis,” 2023)
Table 7. Internal Environmental Analysis

40
A. IFE ANALYSIS
Based on the table shown above on the IFE Matrix, Permex Produce & Exporter
Corporation scores about 2.68, and the total weighted score is above 2.5. This
emphasizes the company’s strength in terms of good quality products and its
environmental cost due to its pricing. It had increased in terms of quality of products, price
competition, product’s primary packaging, production site, and price of the product
charged, which rated as 4. As shown in the table, Permex Produce & Exporter
Corporation indicates and concludes a strong internal position.
On the other hand, the highest internal weakness of Permex Produce & Exporter
Corporation falls on the company’s supplier time delivery, limited access to local or
international markets, and environmental impact. In these areas, they can gain market
share by increasing their operating system’s promotional budget. Even though it still has
its weakness, this can be solved by increasing productivity for a convenient delivery time,
developing ways to decrease environmental impact, and advertising budget to promote
the products to local and international markets.

41
B. OPPORTUNITIES
• Globalization
Globalization increases competition in Seafood Processing Companies in the
Philippines. This rivalry may be attributed to product and service cost and price,
target market, technical adaptation, fast reaction, quick development by firms, and
so on. Permex Producer and Exporter Corporation sells at a lower price. Therefore,
it can able to raise its market share.
• Online Marketing
Permex Producer and Exporter Corporation promoted canned sardines and tuna
items in the Philippines by digital marketing, which makes use of the internet and
online-based digital technology such as personal computers, cell phones, and
other digital media and platforms.
• Product Improvement
Permex Producer and Exporter Corporation implemented product improvements
that resulted in new buyers, and improved opportunities for current customers.
• Technological Advances
The Permex Producer and Exporter Corporation uses digital advances to support
canned sardines and tuna goods in the Philippines, as well as to improve industry
production, which increases the firm’s competitiveness.
• Demand of the Product
During this pandemic, most of the Filipinos are storing canned goods such as
sardines, and tuna products due to its long-lasting life span. Therefore, this
indicates that as the demand of the customers increases, the supply of the Permex
42
Producer and Exporter Corporation also increases. It leads to increased sales of
the said firm, and this is an opportunity for the industry to gain more.
• Affordability of the Products
Products produced by Permex Producer and Exporter Corporation are affordable.
That is the reason why until today, there are many customers who are still
patronizing the products of the said firm despite the strong competency in Seafood
Processing Companies in the Philippines.

43
CHAPTER VII
STRATEGY FORMULATION
Strategy Formulation is an analytical process of selection of the best suitable
course of action to meet the organizational objectives and vision. It is one of the steps of
the strategic management process. The strategic plan allows an organization to examine
its resources, provides a financial plan and establishes the most appropriate action plan
for increasing profits. (S,2018)
A. SWOT ANALYSIS AND MATCHING
The SWOT/TOWS (threats, opportunities, weaknesses, strengths) model assists
organizations in developing a prioritized set of strategies and next steps to capitalize on
their strengths and opportunities while minimizing their weaknesses and threats. This is
a collaborative, reusable model for strategy development. With our SWOT/TOWS
analysis model, you can conduct the assessment synchronously or asynchronously,
allowing you to involve more people with diverse experiences and deliver richer insights
and more creative strategies. (Author, 2020)
Table 8. SWOT Analysis and Matching
STRENGTHS WEAKNESSES
1. Agricultural products with good quality 1. Supplier time delivery

2. The strategic location 2. Absence of strategic partner
3. Satisfactory at the customer service 3. Local and global presence
4. Price competition 4. Limited access to local or international
5. Employee morale markets
6. The product’s primary packaging is not 5. Environmental Impact
harmful to human health. 6. Limited product mi
44
7. Production site do not pollute the
surrounding environment.
8. The price of the product charged
includes environmental conservation cost.
9. The enterprise tries to minimize waste.
10. Food Image
OPPORTUNITIES THREATS
1. It has access to an ample supply of 1. Permex’s product line is limited to

High-quality tuna and sardines because tunas and sardines.
of its prime position in Asia. 2. Permex may face difficulties if tuna and
2. Can meet increased demand in both sardines become unavailable due to
domestic and international markets. factors such as overfishing, climate
3. Strong fish export trade. change, and other environmental
4. Providing comparable goods at a lower struggles.
cost. 3. Permex’s capacity to sustain output
5. It is one of the few EU-accredited volumes is limited by its irregular and
sardines and tuna canning plants in the contracted workers.
Philippines. 4. Seasonal fish ban that spans for three
6. The Department of Trade and Industry months.
honored Permex Producers and 5. The scarcity of workers returning from
Exporters Corporation as the first fish the seasonal ban may force canning
cannery with the Golden SHELL Award companies to compete for these workers.
for Excellence in Export. 6. The existence of new companies in the
7. Has strong marketing capabilities and Seafood Processing Industry leads to
distribution networks because of meeting decrease in sales
increased demands from its retailers and
distributors.
8. It is the only company in the
Philippines to have earned the
Department of Fisheries and Oceans of
45
Canada’s unusual “Double Triple A”
rating, and it is one of the few EU-
accredited sardines and tuna canning
plants in the Philippines.
9. It has also been accredited and cited
for its contribution to efficiency, which
gives it an advantage over other firms in a
competitive market.
SO STRATEGIES
1. Maintaining the product’s high quality (S1, O1)
2. Developing strong partnerships (S3,O7)
3. Producing high-quality tuna at a fair price in a global marketplace. (S4, O4)
4. Obtaining recognition and certificates from various food department programs to
be recognized as one of the Philippines’ leading companies. (S10, O8)
WO STRATEGIES
1. Ensure that all of the supplier’s schedules are well organized. (W1, O1)
2. Build a strong brand and form new alliances with local and international companies to
become well-known around the world. (W4, O2)
ST STRATEGIES
46
1. Develop a new high-quality variant of canned food (S1, T1)
2. Create a new product concept that is appealing to the consumers’ eyes and generate
a new strategic approach in the industry (S3, T6)
WT STRATEGIES
1. To keep the production going, form a lot of alliances with fishing companies and
stay updated on the weather forecast. (W5, T2)
2 Create a new canned food product that is not available in the market. (W6, T1)
3. Hire an employee who has a profession in the strategic market to be effective in
generating new ideas. (W2, T6)
B. STRATEGIC POSITION AND ACTION EVALUATION MATRIX (SPACE)
SPACE Analysis is a strategic management and planning analytical technique.
The acronym SPACE stands for Strategic Position and Action Evaluation. The analysis
enables the development of an idea for the best business strategy for the enterprise. The
analysis evaluates the internal and external environments and allows for the development
of an appropriate strategy. The external environment is described in the analysis using
two criteria:
• Environmental Stability (ES) – it is influenced by the following sub-factors:
technological change, inflation rate, demand volatility, price range of competitive
products, price elasticity of demand, pressure from the substitutes

47
• Industry Attractiveness (IA) – it is influenced by the following subfactors: growth
potential, profit potential, financial stability, resource utilization, complexity of
entering the industry, labor productivity, capacity utilization, bargaining power of
manufacturers
The inside environment is also described by two criteria:
• Competitive advantage (CA) – it is influenced by the following factors: market
share, product quality, product lifecycle, innovation cycle, customer loyalty, vertical
integration
• Financial strength (FS) – it is influenced by the following indicators: return on
investment, liquidity, debt ratio, available versus required capital, cash flow,
inventory turnover. (Shridharan, 2023)
Table 9. Strategic Position and Action Evaluation Matrix (SPACE)
Y AXIS
SPACE MATRIX
INTERANAL STRATEGIC
EXTERNAL STABILITY
POSITION
FINANCIAL STRENGTH ENVIRONMENTAL STABILITY
6 Return of Investment Technological Change -3
5 Liquidity Rate of Inflation -3
5 Working Capital Barriers to entry into market -3
4 Cash Flows
Price elasticity of Demand -3
4 Price Earnings Ratio
4.8 AVERAGE -3
X AXIS
SPACE MATRIX
INTERANAL STRATEGIC POSITION EXTERNAL STABILITY
48
COMPETITIVE ADVANTAGE INDUSTRY STRENGTH

-2 Market share Growth Potential 6
-3 Product Quality Profit Potential 5
-4 Customer Loyalty Financial Stability 5
-3 Product Lifecycle Productivity 4
Resource Utilization 5
-4 Competition Capacity Utilization
Capacity Utilization 4
-3.2 AVERAGE 4.8
Using the SPACE (Strategic Position and Action Evaluation) matrix assessment,
PERMEX Produce and Exporter Corporation has put itself in the aggressive quadrant.
As a result, the organization is in an excellent position to use its internal assets to
capitalize on external opportunities, resolve internal weaknesses, and minimize external
risks.
Moreover, its lateral matrix defines itself as a financially stable firm with a chance of
competing advantages in an increasing and stable industry.
PERMEX received an ES Average of -3.0, IS Average of 4.8, CA Average of -3.2, and
FS Average of 4.8 in the SPACE Matrix, resulting in Directional Vector Coordinates of
+1.6 in the x-axis and +1.8 in the y-axis. Following the plotting of the values in the matrix,
it was determined that PERMEX was in Quadrant I, indicating that the organization
pursues an Aggressive Strategy.
This means that PERMEX has a good competitive position in the market with gradual
growth, and it needs to implement a market penetration and market development strategy
that takes advantage of internal strengths, exploits external opportunities, overcomes
internal vulnerabilities, and avoids external threats.

49
C. BOSTON CONSULTING GROUP (BCG)
The Boston Consulting Group (BCG) growth-share matrix is a planning tool that
employs graphical representations of a company's products and services to assist the
company in deciding what to keep, sell, or invest more in.
In a four-square matrix, the matrix plots a company's offerings, with the y-axis
representing market growth and the x-axis representing market share. The Boston
Consulting Group pioneered it in 1970.
The BCG growth-share matrix categorizes products into four quadrants, referred
to heuristically as "dogs," "cash cows," "stars," and "question marks." Each quadrant has
its own set of distinct characteristics.
Dogs (or Pets):
A company's product is considered a "dog" if it has a low market share and a low rate of
growth and should be sold, liquidated, or repositioned. Dogs, which are found in the grid's
lower right quadrant, don't generate much cash for the company because they have a low
market share and little to no growth. As a result, dogs can become cash traps, tying up
company funds for extended periods of time. As a result, they are ideal candidates for
divestiture.
Cash Cows:
Products in low-growth areas but with a relatively large market share are
considered "cash cows," and the company should milk the cash cow for as long as
possible. Cash cows, as seen in the lower left quadrant, are typically market leaders in
mature markets.
50
Stars
Products in high-growth markets that account for a sizable portion of that market
are considered "stars" and should be invested in more heavily. Stars in the upper left
quadrant generate high income but consume a large amount of company cash. If a market
leader can maintain its position, it will eventually become a cash cow as the market's
overall growth rate slows.
Question Marks:
Questionable opportunities are those in high-growth markets where the company
does not have a significant market share. The grid has question marks in the upper right
corner. They typically grow quickly but consume a significant amount of company
resources. Products in this quadrant should be analyzed frequently and thoroughly to
determine whether they are worth keeping.
Other Factors to Consider:
The matrix is a decision-making tool, and it does not necessarily take into account
all of the factors that a company must eventually deal with. Increasing market share, for
example, may be more expensive than the additional revenue gained from new sales.
Because product development can take years, businesses must carefully plan for
contingencies.(Hayes,2023)
Below is the BGC analysis made by the researcher:

51
Chart 1. Boston Consulting Group (BCG)
• Fish soluble is in the BCG Matrix’s question mark business unit, it is unclear if they
will rise to the STAR UNIT or fall into the DOG UNIT. These products normally
require a large investment to reach the top target or the star unit.
• Fish Oil and Fish Meal are part of the CASH COW unit, which means they have a
low market growth rate but a large market share.
• Fish soluble is in the BCG Matrix’s question mark business unit, it is unclear if they
will rise to the STAR UNIT or fall into the DOG UNIT. These products normally
require a large investment to reach the top target or the star unit.
• Fish Oil and Fish Meal are part of the CASH COW unit, which means they have a
low market growth rate but a large market share.

52
• Permex Tuna and sardines are classified as stars because they have the highest
market share and produce the most revenue.
D. INTERNAL EXTERNAL MATRIX
In a nine-cell display, the Internal-External (IE) Matrix positions an organization's
various divisions (segments). The IE Matrix and the BCG Matrix are similar in that both
tools involve plotting a company's divisions in a schematic diagram; this is why they are
both referred to as portfolio matrices. (David, n.d)
Table 10. Internal External Matrix
AVERAGE (2.0-
STRONG (3-4) WEAK (1-1.99)
2.99)
HIGH (3-4) I - EFE - 3.17 II -IFE - 2.68 III
MEDIUM (2.0-
IV V VI
2.99)
LOW (1-1.99) VII VIII IX
The figure above shows that Permex Produce & Exporter Corporation with EFE &
IFE total weighted scores having 3.06 and 2.73, respectively, is in Quadrant II, indicating
that it is utilizing the build and grow strategy to maximize market share and development.
Moreover, Permex may employ specific strategies such as market penetration, market
development, and product development, as well as integrative strategies such as

53
backward integration, forward integration, and horizontal integration, relying on which
division Permex belongs to.
E. GRAND STRATEGY MATRIX
The Grand Strategy Matrix plots two dimensions: market growth and the
competitive position of the organization. Each of the four quadrants contains a number of
strategic options, and the framework is intended to help you evaluate the potential
direction your business should take.
First Quadrant:
If your business is in this quadrant then you have a strong competitive position
and the market is in rapid growth. Arguably this is the best quadrant to be in, with
opportunity high and your position strong.
Second Quadrant:
If your business is in this quadrant then you have a relatively weak competitive
situation as a business, but there’s a lot of opportunity to go for and a lot of success to
be had within the market. The strategies in this position are all about why you’re not
taking advantage of the position. If you’re placed in this quadrant then you know you
can change to improve results.
Third Quadrant:
Being in the third quadrant means you have a weak competitive situation and the
market is also quite slow. This is a tricky position because you’re already not doing well
and there isn’t the huge opportunity that presents itself like the second quadrant. If you
find yourself here you need to consider major changes to improve your competitive
position, consider areas such as cost reduction, differentiation or diversification.

54
Fourth Quadrant:
If you’re placed within the fourth quadrant you have a strong competitive situation,
which is great, but your market is slow to grow or in decline. This lends itself to strategies
such as diversification as you have the funds to innovate in numerous areas before the
market decline becomes unsustainable. Watch out for cheaper competitors entering the
market to attack you as the leader. (Introduction to the Grand Strategy Matrix | Lucidity,
n.d.)
Table 11. Grand Strategy Matrix
Permex Producer and Exporter Corporation is situated in the Grand
Strategy Matrix’s Quadrant 2. Permex faces a relatively poor competitive situation
as a company due to other businesses that are more well-known in the industry
than its own. However, the market for canned sardines became more popular than
55
the market for fresh sardines that needed to be cooked before eating, and as a
result, there was consistent demand for the products, putting the company in a
good position in the market.
F. TALLY MATRICES
G. QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)
The Quantitative Strategic Planning Matrix (QSPM) is a top-level management
strategic management approach. The method is also used to develop marketing
strategies.
A QSPM is primarily used to evaluate various strategic options and determine the
most appealing of the available strategies. The method indicates to the user which of the
selected options is the most feasible and prioritizes it over the others. (Janse, 2023)
56
CHAPTER VIII
PROPOSED STRATEGIC OBJECTIVE
A. Strategic Objective with optional secondary strategy
B. Financial Objective
57
CHAPTER IX
IMPLEMENTATION AND ACTION PLANS
A. Strategy Map
B. Department Action Plan
C. Financial Projection for the next three (3) years

58
CHAPTER X
EVALUATION AND ACTION PLAN
A. Strategic Objective with Secondary Strategy……………………………………
B. Financial Objective…………………………………………………………………
C. Recommendation Strategies………………………………………………………
59
CHAPTER XI
IMPLEMENTATION AND CONTROL
A. Balance Scorecard
60
APPENDICES
Table 1. Evaluation of Current Vision Statement

Yes /
No
Permex Produce and

Exporters Corporation's goal to
1. Does it clearly answer the question,
Yes sardine canning facility that is
―What do we want to become?”
globally competitive is stated
clearly in the company's vision
statement.

Permex Produce and
what they desire to
2. Is it concise enough yet inspirational? No
accomplish; nevertheless, it
does not include any
motivating statements that
might affect the organization or
employees.

Permex Produce and

Permex Produce and
4. Does it give a clear indication as to Exporters Corporation did not
No
when it should be attained? specify an important deadline
for when its objective(s) to be
achieved.
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Table 2. Evaluation of Current Mission Statement

Yes /
No

Mission Statement.

Exporters Corporation offers to the market
2. Products or Services Yes are described as having "reasonably
competitive prices for its canned food" in
their mission statement.

and Exporters Corporation included the
statement, “ensuring satisfaction of buyer’s
3. Markets Yes
requirements, develop and expand our
export and domestic market." Thus, Market
is indicated.
No indication of the use of new technology

4. Technology No except that the company is using a system
called HACCP Management System

and Exporters Corporation suggests
profitability, expansion, and survival.. The
phrase "produce consistent quality products
5. Survival, Growth and and timely delivery ensuring satisfaction of
No
Profitability buyer’s requirements, develop and expand
our export and domestic market while
maintaining a high level of standard through
its implementation of HACCP Management
System" indicates consistency.
62
Permex Produce and Exporters

Corporation's philosophy is that, "We are
committed to provide its customers at a
6. Philosophy Yes
reasonably competitive price its canned
food commodities, produce consistent
quality products and timely delivery."
The Phrase "We are committed to provide

its customers at a reasonably competitive
price its canned food commodities, produce
7. Self-Concept Yes
consistent quality products and timely
delivery ensuring satisfaction of buyer’s
requirements,"
Permex Produce and Exporters Corporation

wanted to show to the public that they hold
8. Public Image Yes and maintaining a high level of standard
through its implementation of HACCP
Management System

9. Employees No and Exporters Corporation indicate the
customer but no employee.
Table 3. Evaluation of Revised Mission Statement

Yes /
No

Mission Statement.
63

Exporters Corporation offers to the
market are described as having
"provide food products of high quality
2. Products or Services Yes and superior value at a reasonable price
for its canned food commodities, as well
as timely delivery to ensure buyer
satisfaction while responding to our

Produce and Exporters Corporation
3. Markets Yes included the statement, " to ensure
buyer satisfaction while responding to
our customers' growing needs."
With revised Mission Statement,

"Develop and expand our export and
domestic markets while maintaining a
4. Technology Yes high level of quality control through the
technology."

suggests profitability, expansion, and
survival.. The phrase "Develop and
5. Survival, Growth and expand our export and domestic
Yes
Profitability markets while maintaining a high level
of quality control through the
technology."

Corporation's philosophy is that, "Our
mission is to provide food products of
high quality and superior value at a
6. Philosophy Yes reasonable price for its canned food
commodities, as well as timely delivery
to ensure buyer satisfaction while
responding to our customers' growing
needs."
64
The Phrase "to ensure buyer

7. Self-Concept Yes satisfaction while responding to our

Corporation wanted to show to the
public that they hold and maintaining a
8. Public Image Yes
high level of standard through its
implementation of HACCP
Management System
9. Employees Yes includes "Maintain a high level of
employee motivation and ensure that
safety and security of our staff."
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Table 4. Evaluation of Revised Vision Statement

Yes /
No
Permex Produce and
Exporters Corporation's
goal to become a top-tier
1. Does it clearly answer the question, What tuna and sardine canning
Yes
do we want to become?” facility that is globally
competitive is stated clearly
in the company's vision
statement.
Permex Produce and
2. Is it concise enough yet inspirational? Yes
what they desire to
accomplish; "to become a
world-class tuna and
sardines canning factory."

Permex Produce and

Permex Producer and
4. Does it give a clear indication as to when it Exporter Corporation
Yes
should be attained? specify an important
deadline for when its
objective(s) to be achieved.
Table 5. Competitive Profile Matrix

66
Table 6. External Factors evaluation matrix (EFE)

67
Table 7. Internal Environmental Analysis

68
Table 8. SWOT Analysis and Matching
STRENGTHS WEAKNESSES
1. Agricultural products with good quality 1. Supplier time delivery

2. The strategic location 2. Absence of strategic partner
3. Satisfactory at the customer service 3. Local and global presence
4. Price competition 4. Limited access to local or international
5. Employee morale markets
6. The product’s primary packaging is not 5. Environmental Impact
harmful to human health. 6. Limited product mi
7. Production site do not pollute the
surrounding environment.
8. The price of the product charged
includes environmental conservation cost.
9. The enterprise tries to minimize waste.
10. Food Image
OPPORTUNITIES THREATS
1. It has access to an ample supply of 1. Permex’s product line is limited to

High-quality tuna and sardines because tunas and sardines.
of its prime position in Asia. 2. Permex may face difficulties if tuna and
2. Can meet increased demand in both sardines become unavailable due to
domestic and international markets. factors such as overfishing, climate
69
3. Strong fish export trade. change, and other environmental
4. Providing comparable goods at a lower struggles.
cost. 3. Permex’s capacity to sustain output
5. It is one of the few EU-accredited volumes is limited by its irregular and
sardines and tuna canning plants in the contracted workers.
Philippines. 4. Seasonal fish ban that spans for three
6. The Department of Trade and Industry months.
honored Permex Producers and 5. The scarcity of workers returning from
Exporters Corporation as the first fish the seasonal ban may force canning
cannery with the Golden SHELL Award companies to compete for these workers.
for Excellence in Export. 6. The existence of new companies in the
7. Has strong marketing capabilities and Seafood Processing Industry leads to
distribution networks because of meeting decrease in sales
increased demands from its retailers and
distributors.
8. It is the only company in the
Philippines to have earned the
Department of Fisheries and Oceans of
Canada’s unusual “Double Triple A”
rating, and it is one of the few EU-
accredited sardines and tuna canning
plants in the Philippines.
9. It has also been accredited and cited
for its contribution to efficiency, which
gives it an advantage over other firms in a
competitive market.
70
Table 9. Strategic Position and Action Evaluation Matrix (SPACE)
Y AXIS
SPACE MATRIX
INTERANAL STRATEGIC
EXTERNAL STABILITY
POSITION
FINANCIAL STRENGTH ENVIRONMENTAL STABILITY
6 Return of Investment Technological Change -3
5 Liquidity Rate of Inflation -3
5 Working Capital Barriers to entry into market -3
4 Cash Flows
Price elasticity of Demand -3
4 Price Earnings Ratio
4.8 AVERAGE -3
X AXIS
SPACE MATRIX
INTERANAL STRATEGIC POSITION EXTERNAL STABILITY
COMPETITIVE ADVANTAGE INDUSTRY STRENGTH
-2 Market share Growth Potential 6
-3 Product Quality Profit Potential 5
-4 Customer Loyalty Financial Stability 5
-3 Product Lifecycle Productivity 4
Resource Utilization 5
-4 Competition Capacity Utilization
Capacity Utilization 4
-3.2 AVERAGE 4.8
71
Table 10. Internal External Matrix
AVERAGE (2.0-
STRONG (3-4) WEAK (1-1.99)
2.99)
HIGH (3-4) I - EFE - 3.17 II -IFE - 2.68 III
MEDIUM (2.0-
IV V VI
2.99)
LOW (1-1.99) VII VIII IX
Chart 1. Boston Consulting Group (BCG)

72
PERMEX ORGANIZATIONAL CHART

73
Table 11. Grand Strategy Matrix
74
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Republic of the Philippines

Pamantasan ng Lungsod ng Maynila

PLM BUSINESS SCHOOL

FIRST SEMESTER 2022-2023

STRATEGIC MANAGEMENT PAPER FOR

MASTERS IN BUSINESS ADMINISTRATION

MR. HEHERSON MARAYAG

USMAN, ISHAQ PANDALAN

1.1. Company Background…………………………………………………….. 09

1.2. Company’s Vision and Mission…………………………………………... 10

1.3. Product Offering…………………………………………………………… 10

1.4. Organizational Chart………………………………………………………. 13

II. LIMITATION OF THE STUDY………………………………………..................... 14

III. COMPANY’S VISION AND MISSION

3.1. Evaluation of the current mission, vision, and objectives…………... 17

3.2. Recommendation for a revised mission and vision…………………. 22

IV. INDUSTRY ANALYSIS

4.1. Porter’s Five Forces Analysis………………………………………….. 28

4.2. Competitive Profile Matrix (CPM)……………………………………… 30

V. EXTERNAL ENVIRONMENTAL ANAYLSIS

5.1. Key External Factors…………………………………………………… 32

5.2. EFE Matrix………………………………………………………………. 36

VI. INTERNAL ENVIRONMENTAL ANAYLSIS

6.1. IFE ANAYLSIS……………………………………………………………… 40

7.1. SWOT Analysis and Matching………………………………………….. 43

7.2. Strategic Position and Action Evaluation Matrix (SPACE)………….. 46

7.3. Boston Consulting Group (BCG)……………………………………... 49

7.4. Internal External Matrix………………………………………………… 52

7.5. Grand Strategy Matrix………………………………………………….. 53

7.6. Tally Matrices……………………………………………………………. 55

7.7. Quantitative Strategic Planning Matrix (QSPM)……………………... 55

VIII. PROPOSED STTRATEGIC OBJECTIVE

8.1. Strategic Objective with optional secondary strategy………………. 56

8.2. Financial Objective……………………………………………………… 56

IX. IMPLEMENTATION AND ACTION PLANS

9.1. Strategy Map…………………………………………………………….. 57

9.2. Department Action Plan………………………………………………... 57

9.3. Financial Projection for the next three (3) years…………………….. 57

X. EVALUATION AND ACTION PLAN

10.1 Strategic Objective with Secondary Strategy………………………... 58

10.2 Financial Objective……………………………………………………… 58

10.3 Recommendation Strategies…………………………………………... 58

XI. IMPLEMENTATION AND CONTROL

11.1. Balance Scorecard……………………………………………………... 59

In partial fulfillment of the requirement for the Degree of master’s in business

administration. This Strategic Management Paper: Permex Producer and Exporter

USMAN, ISHAQ PANDALAN

PROF. HEHERSON F. MARAYAG

With the rating of %

that this work will be a success for each one of them.

knowledge for the good and improvement of the conducted paper.

and encouragements helped me to do my best to have well results.

requirement of Strategic Management for the degree in master’s in business

PROF. HEHERSON F. MARAYAG

utilization for the benefit of the masses.

potential strategies, financials, and the manufacturer's approaches to the opportunities

In a more transparent manner, the paper demonstrates why this corporation is

establish a market development to these existing competition and threats.

Permex Producer and Exporter Corporation is based in ASIA, which is critical to