Cruz, Patricia Anne P.

STRATMA QUIZ 1

I. Identification of problem/issue
Upon reading the case, it is given that Philippine Canning
Corporation (PCC) is one of the biggest players in the fish canning
industry. In fact, the corporation is dominating the market. PCC has one
goal, and it is to be the best. However, as time goes by, it seems like
the strategies of PCC starts to rust. As assessed by Restituto Dimapilis,
the companys market share has a decreasing trend. Furthermore, the
company has a difficulty on envisioning itself in the future and what
investment/s should they consider for the business to grow.

II. Objectives

The general objective of this study is to determine the factors that the
company should consider for it to grow further. On the other hand, the
specific objectives of this study are: first, after analyzing the case, it is
expected to come up with a strategic plan on how to maintain PCCs
domination in the market. Since the company finds it hard to look ahead
in the future, specific actions must be recommended so that the company
can be provided with directions toward its goal. Moreover, carefully
measuring each investment must also be done so that the company can
expand successfully.

III. Analysis and Alternative Generation

Philippine Canning Corporation dominates the canned fish industry.
This is a strength since it is on top of its competitors. Aside from that, the
investment from the newly built canneries and ports for tuna and sardines
are both paying off in terms of increased efficiency and capacity. Another
positive thing about the business is the favorable negotiation with the
companys supplier of tin cans from Indonesia. However, it has been
observed that the companys market share is declining (from 90 to 85%
then 82%). Considering the fact that the market is expanding 5%
annually, this simply means that there are new entrants in the industry.
This can make the competition tougher. Despite the fact that PCC remain
 to be the top performing firm, Mr. Dimapilis must not be complaisant
because there is no certainty in the market. In addition, it will be hard for
the company to face future changes because they do not have a clear
future goal. Having said that, the company can be vulnerable to changes
in the environment; which can significantly bring them down.

Earlier this year, PCC was approached by the delegation from a country in
South America that could supply the company beef from their excess. Should
Mr. Dimapilis agree to venture into this, they could start processing corned
beef which can expand their operations. From tuna and sardines processing,
PCC can also play in the field of corned beef. Since they are expert in making
canned fish products, corned beef is not so different from it. It is in fact
feasible for them. However, if the South American company experiences beef
shortage, it would be very risky for the company because they will depend on
the beef supply of that firm.

Another investment PCC can consider is to enter in the fruit juice market.
The company considers this as an option since they have the supply of tin
cans. This, however, requires further research because it is somehow far from
their area of expertise. Aside from that, PCC needs to find new suppliers for
fruits, manager for the new product, and other necessary actions for this new
business venture. Being a new actor in the fruit juice field, PCC must
thoroughly study their potential competitors in this market and try to
outsmart each company.

Lastly, the company also looks into investing more in their line of
expertise, canned fish. It has been mentioned that the company has difficulty
in finding sustainable supply of fish, specifically tuna. In todays technology,
sustainable supply of fish is not rocket science anymore. There are other
types of fish which can be alternative to tuna and sardines. Through this, the
company can produce other canned fish if the supply of tuna becomes
scarce. Moreover, PCC do not need to explore further on new products to
release in the market. Aside from that, the company can also focus more in
its original expertise. By doing so, it can further improve the canned fish
products better.
IV. Conclusion and Recommendations
Having been able to assess the case, it is clear that the strategy of the
company is no longer effective in todays era. As time goes by, changes in
the internal and external environment of the company arise; which means
that the practices and policies of the company must change too in order
to adapt. In line with that, for PCC to have a suitable strategy, the
mission/vision statement must be clear, measurable, and specific. Being
the best is just vague. It needs to be narrowed down so that the
company can align its strategies to its goal. It must always be kept in
mind that a mission statement leads the company towards a specific path
to attain its goal. In todays world, changes can be seen a lot more often.
Due to the fast pace of technological advancement, it also affects people
and its environment. The company must learn how to use rapidly evolving
technology to form a strategic plan that can retain its domination in the
market by investing on machinery and equipment that can increase
efficiency and quality of their product.
Delving into what investment the company should take, it would be a
lot more beneficial for the company to invest in technology of sustainable
fish resources. It is because this is the best option to address the
companys necessity, which is to look for supply of fish. It may not be
tuna, but there are other fish that can substitute tuna just in case they
become very scarce. PCC is known for canned fish. This brand recognition
must be used and enhanced so that the company retains its top position
advantage. By focusing on the industry of fishing, PCC has more resources
and expertise to spend. Thus, they can improve the quality of the product
and the company. The other alternatives are riskier than this because PCC
has to compete with the leading brands that produce corned beef and fruit
juice. Aside from that, producing corned beef or fruit juice is beyond their
expertise, which can make their product inferior. In line with that, there
will be more investments (in terms of cost, time, and effort) that need to
be made should the company consider those two options.
V. Potential Problem Analysis
Choosing the third alternative, which is to invest in technological
advancement that provides sustainable supply of fish, it is believed to
give the company the most advantage among the three. However,
there will be possible issues that can be encountered upon taking this
option. One would be on how the company can introduce other types
of fish to its consumers. Since its consumers are used to tuna and
sardines, the company must be able to convince its consumers that its
other canned fish products are just as good as the tuna and sardines.