Mini STRAMA Paper Outline:

1. INTRODUCTION (Company Background/History)

2. EXTERNAL ASSESSMENT
2.1. POLITICAL FORCES
2.2. ECONOMIC FORCES
2.3. SOCIAL-DEMOGRAPHIC FORCES
2.4. TECHNOLOGICAL FORCES
2.5. COMPETITIVE FORCES (Main Competitor)

3. EXTERNAL FACTOR EVALUATION MATRIX (EFE MATRIX)

4. INTERNAL ASSESSMENT
4.1. MANAGEMENT (Organization/Culture)

4.2. MARKETING (Products/Promotions)

4.3. FINANCE (Ratios)
4.4. OPERATIONS
4.5. INFORMATION SYSTEMS
5. INTERNAL FACTOR EVALUATION MATRIX (IFE MATRIX)
6. STRATEGY FORMULATION
6.1. TOWS MATRIX Threats-Opportunities-Weaknesses-Strengths
6.2. I-E MATRIX
6.3. BCG MATRIX
7. SUMMARY OF MATRICES AND ANALYSIS
8. PRIORITIZATION OF STRATEGIES
8.1 QSPM Quantitative Strategic Planning Matrix
9. PROPOSED STRATEGY
9.1. STRATEGIC OBJECTIVE
10. ACTION PLANS AND PROGRAMS

REFERENCES
APPENDIX
 NEW ENTRANTS
THREAT OF
(HIGH)

Samples:

PORTERS FIVE FORCES

SUBSTITUTES
(MODERATE)
THREAT OF

BARGAINING POWER
OF BUYERS RIVALRY
(MODERATE) AMONG
COMPETITORS
BARGAINING POWER OF (HIGH)RIVALRY
AMONG
BUYERS COMPETITORS (MODERATE)
(HIGH) (HIGH) SUPPLIERS
POWER OF
BARGAINING

THREAT OF
SUBSTITUTES
(LOW)
Finance

SEPCO FINANCIAL RATIOS 2009 2010 2011

1 Liquidity
Current ratio = CA/CL 2.16 1.59 1.88
Quick ratio = CA Inv/CL 1.99 1.50 1.81

2 Leverage
Debtto-TA ratio = TLiab/TA - - -
LT Debt-to-Equity = LTD/Equity - - -

3 Activity ratios
AR turnover = Rev/AR 20.23 20.56 20.34
Days Receivable = 365/AR turnover 18 18 18
Inventory turnover = Rev/FGInventory 129.55 141.13 130.40
Days Inventory 3 3 3
FA turnover = Rev/FA 3.65 3.66 8.99
Asset turnover = Rev/TA 0.65 1.14 1.11

4 Profitability Ratios
Gross Margin = Rev CGS 74.6% 76.4% 80.1%
Oper exp % = Opex/Rev 58.3% 56.5% 57.6%
Oper margin = EBIT/Rev 13.7% 16.7% 9.7%
EPS = NI/#CSO 0.016 0.020 0.009
ROA = NI/TA 7.79% 17.04% 8.88%
ROE = NI/SHE 13.48% 34.64% 26.21%

5
Growth Rates %
Sales 6.0% 15.5% 4.8%
Net Income -15.2% 115.0% 70.30%
Return on Equity -61.1% 32.2% 12.7%
 External Factor Evaluation Matrix (EFE)
Table: External factor evaluation matrix for SEPCO

Key External Factors Weight Rating Weighted Score

OPPORTUNITIES
1-T Fast paced technological innovation 0.15 4 0.60

2-S Green Campaign/Preference of consumers 0.10 4 0.40

3-S Competent labor force in the Philippines at 0.10 3 0.30
affordable costs
4-T Increasing demand for CE on-the-go 0.10 4 0.40
products for mobilization
5-T Increasing use of the Internet 0.05 3 0.15
6-T Digital convergence or Integration 0.05 3 0.15
7-P Lower tariffs in ASEAN countries 0.05 3 0.15
THREATS
1-E Rising cost of raw materials 0.10 3 0.30
2-P Slow development of Philippine government 0.10 3 0.30
policies relating and beneficial to Science &
Technology
3-E Increasing Japan-based electronics 0.05 3 0.15
production
4-E Increasing growth rate of Chinas 0.05 3 0.15
consumer electronics manufacturing
industry
5-L Data Rights Management (DRM) issues 0.05 3 0.15
6-S Commodization of CE goods for consumers 0.05 4 0.20
Total 1.00 3.40

Internal Factor Evaluation Matrix (IFE Matrix)

Table: Internal Factor Evaluation Matrix for SEPCO
KEY INTERNAL FACTORS FUNCTION WT RATING WTD
SCORE
STRENGTHS
Well diversified and strong product line
1 to meet changing customer needs Management 0.15 4 0.60
Wide and efficient channel distribution
2 coverage Operations 0.15 4 0.60
Strong brand equity and market share
3 that continues to grow Marketing 0.10 4 0.40
Strong Management Leadership per
4 business unit Organization 0.10 3 0.30
5 Sound financial position Finance 0.10 3 0.30
6 Highly competent sales force Sales 0.05 3 0.15
Good after sales customer service Customer
7 support Service 0.05 3 0.15
8 Early entrant into the Phil. CE industry Management 0.05 3 0.15
WEAKNESSES 0 0
1 Increasing Turnover rate of employees Culture / HR 0.10 2 0.20
Lack of collaboration with other business
2 units (DA, IT & HHP) Organization 0.05 2 0.10
Overall prices are higher than
3 competitors Sales 0.05 1 0.05
Less tri-media advertising than major
4 competitors Marketing 0.05 2 0.10
TOTAL 1 3.10

Threats-Opportunities- Weaknesses- Strengths


TOWS ANALYSIS SAMSUNG
ELECTRONICS PHIL. CORP
(SEPCO)
OPPORTUNITIES
1. Fast paced technological
innovation
2. Green Campaign/Preference
of consumers
3. Competent labor force in the
Philippines at affordable costs
4. Increasing demand for CE on-
the-go products for mobilization
5. Increasing use of the Internet
6. Digital convergence or
Integration
7. Lower tariffs in ASEAN
countries
THREATS
1. Rising cost of raw materials
2. Slow development of
Philippine government policies
relating and beneficial to
Science & Technology
3. Increasing Japan-based
electronics production
4. Increasing growth rate of
Chinas consumer electronics
manufacturing industry
5. Data Rights Management
STRENGTHS
1. Well diversified and strong
product line to meet changing
customer needs
2. Wide and efficient channel
distribution coverage
3. Strong brand equity and
market share that continues to
grow (Digital Appliances, IT
solutions)
4. Strong Management
Leadership per business unit
5. Sound financial position
6. Highly competent sales force
7. Good after sales customer
service support
8. Early entrant into the Phil. CE
industry
SO STRATEGIES
1. Introduce first more high-tech
CE products with digital
convergence capacity (i.e.
DLNA) that is compatible with
other CE products in the
market (S1, S2, S6, O1, O4,
O6)
2. Join or sponsor tech
conferences and exhibitions
to further promote brand
image and market leadership.
(S3, S4, S5, S8, O2, O4, O5)
ST STRATEGIES
1. Further improve efficient
product importation and
distribution practices. (S2, S4,
S5, S6, S7, T1, T3, T4)
2. Sponsor tech educational and
community programs (S3, S5,
S8, T2, T5)
3. Coordinate with the
government on monitoring
piracy and copyright
infringement cases. (S3, S4,
WEAKNESSES
1. Increasing Turnover rate of
employees
2. Lack of collaboration with
other business units (DA, IT &
HHP)
3. Overall prices are higher than
competitors
4. Less tri-media advertising
than major competitors
WO STRATEGIES
1. Provide for effective
employee recruitment &
retention programs like
teambuilding activities for
the staff (W1, W2, O3)
2. Increase select
advertisement highlighting
green campaign and unique
product technology to justify
price for high quality (W3,
W4, O2, O4, O5)
WT STRATEGIES
1. Integrate possible marketing
activities among business
units for cost-efficiency and
collaborative purposes.
(W2, W4, T1, T6)
2. Conduct inter-regional tech
and soft skills trainings for
employees. (W1, W2, T2,
T5)
(DRM) issues T4, T5, T6)
6. Commodization of CE goods
for consumers

Internal-External Matrix

THE IFE TOTAL WEIGHTED SCORE

THE EFE TOTAL WEIGHTED SCORE

IFE = 3.10 STRONG AVERAGE WEAK

EFE = 3.40 (3.0 -4.0) (2.0 2.99) (1.0 1.99)

HIGH SEPCO
I II III STRATEGIES
(3.0 4.0)
Grow and
Build
MEDIUM Market
IV V VI
(2.0 2.99) Penetration
Product
LOW
Developme
VII VIII IX
(1.0 1.99)

Boston Consulting Group (BCG) Matrix

Relative Market Share Position in
the Industry
1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0

STARS (II) QUESTION MARKS (I)

 +2
0
+1
5
+1
0
+5

0
Industry -20
Sales
Growth -15
Rate (%)
-10

-5

-20

CASH COWS (III) DOGS (IV)

Peso Sales Peso % Market % Growth

Division (M) % Sales Profits (M) % Profit Share Rate
Digital
Appliances (DA)
Hand Held
Phones (HHP)
Information
Technology (IT)
TOTAL

Summary of Matrices and Analyses

STRATEGY OPTIONS TOWS BCG IEM TOTAL

INTEGRATION STRATEGIES
1 Forward Integration
2 Backward Integration
3 Horizontal Integration
 INTENSIVE STRATEGIES
4 Market Penetration 1 1 2
5 Market Development
6 Product Development 1 1
DIVERSIFICATION STRATEGIES
7 Concentric Diversification
Conglomerate
8
Diversification
9 Horizontal Diversification

DEFENSIVE STRATEGIES

10 Joint Venture
11 Retrenchment
12 Divestiture
13 Liquidation

Prioritization of Strategies
Quantitative Strategic Planning Matrix

KEY FACTORS WT Market Market Product

Penetration Development Development
OPPORTUNITIES AS TAS AS TAS AS TAS
Fast paced technological 0.15
1 innovation 4 0.40 2 0.20 3 0.30
Green Campaign/Preference of 0.10
2 consumers 2 0.10 1 0.05 4 0.20
Competent labor force in the 0.10
3 Philippines at affordable costs 3 0.30 1 0.10 2 0.20
4 Increasing demand for CE on- 0.10 4 0.60 3 0.45 2 0.30
 the-go products for mobilization
5 Increasing use of the Internet 0.05 4 0.60 3 0.45 2 0.30
6 Digital convergence or Integration 0.05
7 Lower tariffs in ASEAN countries 0.05
THREATS
1 Rising cost of raw materials 0.10 3 0.30 1 0.10 4 0.40
Slow development of Philippine 0.10
government policies relating and
beneficial to Science &
2 Technology 3 0.30 2 0.20 1 0.10
Increasing Japan-based 0.05
3 electronics production 4 0.60 2 0.30 3 0.45
Increasing growth rate of Chinas 0.05
consumer electronics
4 manufacturing industry 4 0.20 2 0.10 3 0.15
Data Rights Management (DRM) 0.05
5 issues 4 0.20 3 0.15 2 0.10
Commodization of CE goods for 0.05
6 consumers
1
STRENGTHS
Well diversified and strong
product line to meet changing
1 customer needs 0.15 4 0.40 3 0.30 2 0.20
Wide and efficient channel
2 distribution coverage 0.15 3 0.15 4 0.20 2 0.10
Strong brand equity and market
3 share that continues to grow 0.10 3 0.15 2 0.10 4 0.20
Strong Management Leadership
4 per business unit 0.10 4 0.40 3 0.30 2 0.20
5 Sound financial position 0.10 4 0.20 3 0.15 2 0.10
6 Highly competent sales force 0.05 3 0.30 2 0.20 4 0.40
Good after sales customer
7 service support 0.05 4 0.60 3 0.45 2 0.30
Early entrant into the Phil. CE
8 industry 0.05
WEAKNESSES
Increasing Turnover rate of
1 employees 0.10 2 0.20 3 0.30 4 0.40
Lack of collaboration with other
2 business units (DA, IT & HHP) 0.05 4 0.40 3 0.30 2 0.20
Overall prices are higher than
3 competitors 0.05 - - - - - -
Less tri-media advertising than
4 major competitors 0.05 4 0.20 3 0.15 2 0.10
1
SUM TOTAL ATTRACTIVENESS
SCORE 2 7.00 4.85 4.90
Action Plans and Programs
KEY STRATEGY: Global Sources seeks to increase its revenues from the online operations
of EETimes-Asia through new revenue-generating programs.

ACTIVITIES TIMETABL EXPECTED OUTPUT PERSON

E RESPONSIBL
E
1. Evaluate the current Sept 2015 Establish the GM Corporate
marketing programs and effectiveness of current Marketing
promotions for the EETimes-Asia advertising schemes
website. being used on the
2. Evaluate effectiveness of Aug 2015 EETimes-Asia website
current online advertisements
on the EETimes-Asia website.
3. Identify new marketing Aug 2015
strategies that have not been
applied yet like interstitial
advertising, content sponsorship
and e-zine advertising.