Bulaklak, Lisseth D.

Business Policy (BSA-IV)

Table of Contents
I. Global Brands ......................................................................................................2
Coca Cola .................................................................................................................... 2

IBM ............................................................................................................................. 3

Microsoft...................................................................................................................... 3

General Electric ............................................................................................................ 4

Nokia .......................................................................................................................... 5

McDonald’s .................................................................................................................. 6

Google......................................................................................................................... 7

Toyota ......................................................................................................................... 7

INTEL .......................................................................................................................... 8

Disney ......................................................................................................................... 9

Next Top 10 Global Brands ............................................................................................ 10

II. John Gokongwei and URC .................................................................................11

III. Ben Chan and Bench .......................................................................................12

IV. National Book Store’s Socorro Ramos ..............................................................13

V. The Success of Procter and Gamble...................................................................14

VI. Walt Disney and Strategic Sourcing .................................................................15

VII. The Ayala Corporation ....................................................................................16

VIII. Case Study (Carlo Recio) ..............................................................................17

1
I. Global Brands

COCA COLA

Brief History

The Coca Cola beverage invented by pharmacist John Stith Pemberton in 1886. The formula
and brand was bought in 1889 by Asa Candler who incorporated the Coca Cola company in
1892. In 1916, the company began manufacturing its famous bottle, which remains
signature shape of Coca Cola today. In 1928, Robert Woodruff, whom were the company's
president at that time, led the expansion of Coca Cola overseas when introduced the Coca
Cola to the Olympic games for the first time. In the 1960s the company decided to expand
with new flavors- Fanta, Sprite and Fresca, In addition it acquired the Minute Maid
company, adding an entirely new line of business juices to the company.As for today, Coca
Cola has grown to be the world's most ubiquitous brand, with more than 1.4 billion
beverage servings sold each day.

Strengths and Weaknesses of Coca Cola

Strengths
 Brand Equity
 Company Valuation
 Vast Global Presence
 Largest Market Share
 Fantastic Marketing Strategies
 Customer Loyalty
 Distribution Network
Weaknesses
 Competition with Pepsi
 Product Diversification is Low
 Absence in Health Beverages
 Water management

Strategies Being Employed

 Coca Cola focused on driving revenue and profit growth

 Continuous investment
 Increased efficiency and productivity while reducing costs
 Coca Cola simplified their company

Reasons for being a Global Brand

 Extends the global equity and iconic appeal of original Coca-Colaacross the
Trademark, uniting the Coca-Cola family under the world’s number one beverage
brand.
 Comes to life in a global campaign – "Taste the Feeling" – that uses universal
storytelling and everyday moments to connect with consumers around the world.
 Features the product at the heart of the creative, celebrating the experience and
simple pleasure of drinking a Coca-Cola, any Coca-Cola.
 Underscores the Company’s commitment to choice, allowing consumers to choose
whichever Coca-Cola suits their taste, lifestyle, and diet.

2
 INTERNATIONAL BUSINESS MACHINES (IBM) CORPORATION

Brief History

IBM is, perhaps, the best known computer company in the world. It began as the
Computing, Tabulating & Recording Company (C-T-R) founded by Herman Hollerith in the
late 1800s. Their first large contract was to provide tabulating equipment for the tabulation
and analysis of the 1890 US census. The company grew quickly and, in the early 1920s the
name was changed to IBM. IBM was the world leader in providing computer systems for
both business and scientific applications.

Strengths and Weaknesses of IBM

Strengths Weaknesses
 First mover in cloud computing  Expensive service and software
solutions for enterprises solutions
 Brand reputation  Focus mainly on customized products
 Diversified business
 Strong competency in acquisitions
 Integration of products and services

Strategies Being Employed

 Innovation that increases competitiveness and differentiation, sparks customer

centricity and drives growth.
 Manage transformation through organizational change and improved workforce
management using analytics.
 Improve forecasting and reporting, develop predictive capabilities, reduce enterprise
risk and optimize your finance organization.

Reasons for being a Global Brand

IBM Corporation increased their complexity and volatility,drive operational excellence and
enable collaboration across enterprise functions, develop higher quality leadershipand
talent, manage amidst constant change and unlock new possibilities grounded in data.

3
 MICROSOFT

Brief History

Microsoft is an American multinational computer technology corporation whose history

started 4th April 1975. Formed by Harvard College dropout, Bill Gates and his childhood
friend Paul Allen, Microsoft has now become the biggest software company. It is also one of
the most valuable companies in the world.

Strengths and Weaknesses of Microsoft

Strengths Weaknesses
 Brand loyalty  Poor acquisitions and investments
 Brand reputation  Dependence on hardware
 Easy to use software manufacturers
 Strong distribution channels  Criticism over security flaws
 Robust financial performance  Mature PC markets
 Acquisition of Skypec  Slow to innovate

Strategies Employed
 Accessibility
 Market Penetration
 Product Development
 Market Development
 Diversification

Reasons for being a Global Brand

Microsoft has maintained a superior business for over three decades.No tech company
can match its track record. Also, Microsoft has nevermade any major blunders. Its
management might have missed a fewtwists and turns, but was always able to recover.

4
 GENERAL ELECTRIC

Brief History

General Electric Corporation is one of the largest corporations in the world. Today its
business activities span a wide range of areas—everything from aircraft engine
manufacturing, appliances, healthcare equipment, and even the NBC television network. As
its name implies, however, GE can trace its roots to the early power industry. It was formed
in 1892, the result of a merger of the competing companies Edison General Electric
Company and the Thomson-Houston Company.Following Edison’s example, GE established
its first permanent research laboratory in Schenectady, NY, in 1900. This lab has produced a
startling number of innovations over the years.

Strengths and Weaknesses of GE

Strengths Weaknesses
 Strong research and development  Dependence on suppliers of raw
processes materials
 Strong brand  Weak performance in Asian markets
 Diverse product portfolio  Weal performance of the GE Oil and
Gas segment

Strategies Being Employed

 Digitalization of its operations

 Strategic partnerships and acquisitions
 Providing the aging, developed world the power and technologies to maintain the
standard of living.
 Providing the young, developing world the power and infrastructure to develop.

Reasons for being a Global Brand

Since the company’s inception more than a century ago, General Electric has had a focus on
product innovation that has been a key component of its success, The firm’s commitment to
innovation, underwritten by large expenditures for research and development, has remained
remarkably consistent over time.

5
 NOKIA

Brief History

From its humble beginning in 1865 as a single paper mill operation, Nokia has found and
nurtured success over the years in a range of industrial sectors including cable, paper
products, rubber boots, tires, televisions and mobile phones. Nokia’s transition to a primary
focus on telecommunications began in the 1990s. In 2011, to address increasing
competition from iOS and Android operating systems, Nokia entered into a strategic
partnership with Microsoft. In 2014 Nokia sold its mobile and devices division to Microsoft.
In 2016 Nokia re-entered the mobile handset business with a licensing agreement with HMD
Global allowing them to offer phones under the Nokia brand.

Strengths and Weaknesses of Nokia

Strengths Weaknesses
 Brand name  Some of Nokia’s products are not
 Nokia phones have a much higher re- affordable for middle and lower class
sale value consumers
 Easy to use  Took a long time to enter the highly
 Products offered are available in all productive and booming smartphone
price ranges market.
 Reliability, durability and creativity

Strategies Being Employed

 Plans for a broad strategic partnership with Microsoft to build a new global mobile
ecosystem; Windows Phone would serve as Nokia's primary smartphone platform.
 A renewed approach to capture volume and value growth to connect "the next
billion" to the Internet in developing growth markets.
 Focused investments in next-generation disruptive technologies.
 A new leadership team and organizational structure with a clear focus on speed,
results and accountability.

Reasons for being a Global Brand

They focused on product and rebuilt their image from scratch. From the overarching
strategical approach, embracing social and digital in the company as a whole (top
management included!), investing in the info structure, redesigning their marketing
strategy, changing their entire mindset — to the more tactical things like putting feeds of
social networks on screens on the walls of their HQ, connecting with VIPs, creating strong
advocacy programs, building the app ecosystem, and partnering with SMW. The shift in
thinking, in behavior and in mindset, really moved the needle for Nokia.

6
 MCDONALD’S

Brief History

As the Great Depression strangled the mill towns of their native New Hampshire, a pair of
young brothers headed west with dreams of making it big as Hollywood producers. The only
work that Richard and Maurice McDonald could ever land in the film industry, however, was
pushing around movie sets, and the small cinema they opened in suburban Los Angeles
fizzled. Thirty-seven-year-old Maurice and 31-year-old Richard had to wonder if their hopes
of becoming millionaires by the time they turned 50 were just delusions as they opened a
tiny drive-in restaurant in San Bernardino, California, on May 15, 1940. Little did they know
that their new restaurant would be the meal ticket to fulfilling their American dreams.

Strengths and Weaknesses of McDonald’s

Strengths Weaknesses
 Low cost menu  Similar offerings
 The most recognizable brand in  Health issues
restaurant industry
 Holds the largest market share

Strategies Being Employed

 Get international
 Vertical Acquisitions
 Social Networking
 Gas Station Integration

Reasons for being a Global Brand

McDonalds a brand that’s been built through strategic marketing segmentation. Although a
multinational giant, McDonald’s adapts its business and menu to the different countries they

operate in. They respect cultural differences and every country has its own policy of
developing menu items. Experimentation is vital, and it is often carried out by adding or
deleting food from menus according to latest consumer trends and local popularity. It is true
that the marketing and branding strategy of McDonald’s is based on uniformity, no matter
where in the world. Despite its geographic variety the brand is actually very consistent, with
a lot of attention to detail to ensure the values are applied globally. Although McDonald’s
offers its products everywhere in the world, being the most popular restaurant on the
planet, the brand keeps recognizable with its original meaning and identity whilst catering to
local tastes.For McDonalds, globalization has meant embracing and engaging different
cultures while at the same time retaining a strong enough brand to be immediately
identifiable.

7
 GOOGLE

Brief History

Google is now worth billions and has its own place within the Oxford English Dictionary as a
verb, but it took two men with a big dream to turn a small idea into a reality that has made
a significant contribution to how the world uses the internet. Larry Page and Sergey Brin
were both PhD candidates when they met in 1996 at Stanford and came up with the concept
for a search engine that they were going to name BackRub.One year later, in 1997, they
renamed it and on the 14th September 1997 Google.com was officially registered as a
domain name. A man named Milton Sirotta was responsible for coming up with the term
from which Google was derived (googol), and it refers to the number 1 with 100 zeros
following it.The main aim of both men was to organise all of the information that could
possibly be gathered around the world and present it in the form of an index, and this is
exactly what they did.
Strengths and Weaknesses of Google
Strengths Weaknesses
 Market leader in search engines  Excessive reliance on Secrecy
 Ability to generate user traffic  Falling Ad Rates
 Revenue from advertising and display  Overdependence on Advertising
 Introduction of Android and Mobile  Lack of compatibility with next
Technologies generation devices

Strategies Being Employed

 Increasing internet accessibility

 Improving search infrastructure
 Improving mobile products and advertising solutions
 Focus on social network and social advertising

Reasons for being a Global Brand

Google’s a first-class operation and arguably the best brand in the world. Google rise in the
brand ranks because of a significant improvement to its iconic multi-colored logo. While the
company has changed over the years, their goal has always been to empower their people,
maintain the good quality of their products and make innovative products. Google focused
on getting companies to think outside their logo and to focus on company culture and
improving customer experience.

8
 TOYOTA
Brief History

Toyota started in 1933 with the company being a division of Toyoda Automatic Loom Works
devoted to the production of automobiles under the direction of the founder's son, Kiichiro
Toyoda. Kiichiro Toyoda had traveled to Europe and the United States in 1929 to investigate
automobile production and had begun researching gasoline-powered engines in 1930.
Toyoda Automatic Loom Works was encouraged to develop automobile production by the
Japanese government, which needed domestic vehicle production, due to the war with
China.

Strengths and Weaknesses of Toyota

Strengths Weaknesses
 Strong focus on research and  Lack of competence in autonomous
development vehicles
 The most valuable automotive brand  Negative publicity due to large vehicle
in the world recalls
 Toyota Production System  Weak presence in China
 Competence in hybrid vehicle  Poor brand portfolio
production

Strategies Being Employed

The strategy that generally based Toyota is KAIZEN strategy which means continuous
improvement and the impact that it has on the level of product quality. KAIZEN is an
integrative strategy, which means a cross-functional strategy that appoints the gradual
improvement, management and continuous business activities and the parameters of
quality, productivity and competitiveness, with direct involvement of all staff.

Reasons for being a Global Brand

Toyota partners with philanthropic organizations across the country, with a focus on
education, safety and environment. As part of this commitment, Toyota share the
company’s extensive know-how garnered from building great cars and trucks to help
community organizations and other nonprofits expand their ability to do good.

9
 INTEL

Brief History

In 1968, Robert Noyce and Gordon Moore were two unhappy engineers working for the
Fairchild Semiconductor Company who decided to quit and create their own company at a
time when many Fairchild employees were leaving to create start-ups. People like Noyce
and Moore were nicknamed the "Fairchildren".Robert Noyce typed himself a one page idea
of what he wanted to do with his new company, and that was enough to convince San
Francisco venture capitalist Art Rock to back Noyce's and Moore's new venture. Rock raised
$2.5 million dollars in less than 2 days by selling convertible debentures. Art Rock became
the first chairmen of Intel.

Strengths and Weaknesses of Intel

Strengths Weaknesses
 High profitability and revenue  Investments in research and
 Reduced labor costs development
 Monetary assistance provided  Unknown
 High growth rate  Competitive market
 Experienced business units  Future competition
 Skilled workforce  Future profitability
 Tax structure

Strategies Being Employed

 Integrated manufacturing set-up: Controlling design, development and

manufacturing processes with the help of its R&D, process quality and product cost.
 Standardized products: Co-creation of the products by optimizing the products to
operate multiple user platforms.

Reasons for being a Global Brand

Intel has been ranked #15 on Interbrand’s 2014 Best Global Green Brands list. Intel was
selected based on its environmental performance and the market’s perception of the
company’s efforts. Examples of such efforts include manufacturing the world’s first conflict-
free microprocessors, being the largest purchaser of green power in the U.S. and saving 46
billion gallons of water over the past decade.

10
 DISNEY

Brief History

The Walt Disney Company started in 1923 in the rear of a small office occupied by Holly-
Vermont Realty in Los Angeles. It was there that Walt Disney, and his brother Roy,
produced a series of short live-action/animated films collectively called the ALICE
COMEDIES. Within four months, the ever-growing staff moved next door to larger facilities,
where the sign on the window read "Disney Bros. Studio." A year later, in 1925, the
Disneysmade a deposit on a Hyperion Avenue lot in the Silver Lake district of Los Angeles.
Construction began on the new studio shortly thereafter. During the next 14 years, many
changes took place at the Disney studio: Mickey Mouse was "born" in 1928, followed by
Pluto, Goofy, Donald Duck, and the rest of the Disney gang.

Strengths and Weaknesses of Disney

Strengths Weaknesses
 Characters  Company is missing on the online
 Values market as all presence is offline
 Flourishing business  Limited target audience
 Brand image  Character development is slow
 Diversification of business
 Cash reverses in surplus
Strategies Being Employed

 Foreign outsourcing
 Licensing
 Direct Investment

Reasons for being a Global Brand

The Walt Disney Co. together with its subsidiaries and affiliates is a diversified international
family entertainment and media enterprise. It operates through five business segments:
Media Networks, Parks & Resorts, Studio Entertainment, Consumer Products and Interactive
Media. The Media Networks segment is comprised of a domestic broadcast television
network, television production and distribution operations, domestic television stations,
international and domestic cable networks, domestic broadcast radio networks and stations,
and publishing and digital operations. The Interactive Media segment creates and delivers
branded entertainment and lifestyle content across interactive media platforms.

11
Next Top 10 Global Brands

Hewlett Packard

Brief History

The company was founded on January 1, 1939, by William R. Hewlett and David Packard,
two recent electrical-engineering graduates of Stanford University. It was the first of many
technology companies to benefit from the ideas and support of engineering
professor Frederick Terman, who pioneered the strong relationship between Stanford and
what eventually emerged as Silicon Valley. The company established its reputation as a
maker of sophisticated instrumentation. Its first customer was Walt Disney Productions,
which purchased eight audio oscillators to use in the making of its full-length animated
film Fantasia (1940). During World War II the company developed products for military
applications that were important enough to merit Packard a draft exemption, while Hewlett
served in the Army Signal Corps. Throughout the war the company worked with the Naval
Research Laboratory to build counter-radar technology and advanced artillery shell fuses.

Strengths and Weaknesses of HP

Strengths
 Strong presence in China.
 Brand reputation.
 Diversified product portfolio.
Weaknesses
 Poor competency in acquisitions.
 29% of income comes from personal
systems division.
 Poor presence in the tablet market.

Strategies Being Employed

 Product differentiation strategy. HP can differentiate its PC product with combining

HP’s server and software. Make it more efficient and user-friendly for HP PC, product
to link with HP’s server and software. Act like Apple Inc. Apple store and IOS can
only be used by Apple product.
 Product focus strategy. HP can also use the focus Strategy (Porter’s Generic
Strategies).Mainly targeting public sectors and education customer with improving
the linking system and management system on its PC product. Developing specific
features can be helpful for HP target those customers.
 Acquisition Strategy. Acquisition is another ways for HP to achieve the objectives,
acquiring some company with special skills/technology could have HP to walk
forward.
 Restructure and reorganization strategy. Cutting down the useless and valueless
department/employee as to increase HP productivity and working efficiency.
 Sell off business strategy. Selling one of the HP businesses outwards after split-off,
and focusing the remain business, with lots of capital and resource support, the
remaining business be strong enough in short period with high investment on R&D
and essential acquisition.

12
Reasons for being a Global Brand

HP Global Brands, is a recognize Manufacture, Importer, Exporter of Quality Wines, Spirits

and Beverages. Distribution Channels in Dominican Republic, Canada, South Africa,
Caribbean and USA. We are building strategies to promote and market products effectively
in diversified cultures and countries around the world. We believe in our brand and invest
along side our partners in the development process of brands.

Each Brand is carefully studied and strategies are built for its success in its new territories.
Being a boutique Brand company helps us be more dynamic on our marketing campaign and
focus on what’s working.

Mercedes Benz

Brief History

The Mercedes-Benz slogan reads in German, “Das Beste oder nichts” which in English
means, “The best or nothing”. This is a fitting slogan as the Mercedes-Benz name is often
associated with the terms luxury, prestige, and of course, the best. However this company
was not always the international distributor of luxury vehicles it is today. Mercedes’
beginnings stretch back to 1886 and the invention of the internal combustion vehicle. This
occurred in two separate, independent locations in Southwestern Germany only 60 miles
apart. Karl Benz produced a petrol-powered car (a 3-wheeler) and Gottlieb Daimler,
together with Wilhelm Maybach, produced a petrol-powered converted stagecoach. Both
parties were unaware of each other’s work.

Strengths and Weaknesses of Mercedes Benz

Strengths Weaknesses
 Manufacturing facilities worldwide  Expensive After sales service &
 Continuous product innovation maintenance
 Financial stability  Conflicting goals of the group
 Strong hold in the developing nations companies
 strong product portfolio  Distribution is stunted

Strategies Being Employed

 It uses multichannel approach linking different formats of channel delivery networks

 Strategic partnership with various companies like Baidu, Formula-one, Nissan and
many others has helped the company in creating top of mind awareness.
 Reinforcing the divisional structure
 Mercedes has started aligning its sales & marketing plans with customer
requirements i.e. they are evolving themselves from product centric to customer
centric
 Leading in new future-oriented areas

13
Primary Reasons for being a Global Brand

These are the reasons how Mercedes established itself as a global luxury car brand.

 They make sure that customers are always the focus

 They aim to refine your user experience via creative means
 They launch campaigns that will appeal directly to your new audience by utilising
social media
 Get your customers to advocate for you

Gillette

Brief History

The Gillette Company is the world leader in the men's grooming product category as well as
in certain women's grooming products. Although more than half of company profits are still
derived from shaving equipment--the area in which the company started--Gillette has also
attained the top spots worldwide in writing instruments (Paper Mate, Parker, and Waterman
brands) and correction products (Liquid Paper), toothbrushes and other oral care products
(Oral-B), and alkaline batteries (Duracell products, which generate almost one-fourth of
company profits). Gillette maintains 64 manufacturing facilities in 27 countries, and its
products are sold in more than 200 countries and territories, with more than 60 percent of
sales occurring outside the United States.
Strengths and Weaknesses of Gillette
Strengths Weaknesses
 Association with Procter & Gamble  High priced products
 Continuous Innovation  Lack of customer awareness
 Problem Based approach  More parts
 High operating margins

Strategies Being Employed

 Give away the razor (or sell it at a low price) to get it into the hands of as many
people as possible.
 Make the “big money” from selling high-margin replacement blades.

Reasons for being a Global Brand

Gillette occupies perhaps the most dominant position of any of the major global consumer
goods brands with an estimated 70% share of the global razor blade category. These are
the reasons how Gillette established itself as a global brand: drive profitability; practice
positive cannibalization; drive usage then don’t just sit there and stay frosty.

14
 Cisco

Brief History

Cisco Systems, American technology company, operating worldwide, that is best known for
its computer networking products. As a company that sold its products mostly to other
businesses, Cisco did not become a household name, but in the second decade of the 21st
century it was one of the largest corporations in the United States. Cisco was founded in
1984 and has its headquarters in San Jose, California.
Strengths and Weaknesses of Cisco
Strengths Weaknesses
 Robust financial performance.  Weak presence in contact center
 Diverse customer base and product technologies and declining storage
offerings. networking market share.
 Extensive geographic reach.  Relatively weak presence in china.

Strategies Being Employed

 Drives the ongoing development and coordination of Cisco's corporate strategy.

 Develops an ongoing agenda of strategy issues and opportunities for Cisco to help
define and implement actions that create competitive advantage and drive Cisco's
long term growth.

 Partners with Cisco's senior leadership team, business unit, functional and theater
leaders to drive key strategic initiatives, address critical business challenges, and
develop and execute strategies that drive opportunities in Cisco's businesses.

 Develops and disseminates thought leadership.

 Creates a center of excellence for strategic skill sets, tools and capabilities.

Reasons for being a Global Brand

Cisco positions itself as the ‘global leader in networking and tomorrow’s technology
visionary’. Cisco believes that technology alone can help change the world for the better. In
addition to being a technology visionary, Cisco wants to be a company that strongly
connects the networking leadership. The Omni-channel branding campaign is what Cisco
plans to use for achieving its objectives. The message of this branding campaign clearly
shows the direction Cisco plans to take. For Cisco, the present day is an exciting era filled
with new opportunities. By representing the appropriate qualities and brand message, Cisco
aims to convey value to customers. The aforementioned branding campaign of Cisco focuses
on real world examples. The real world examples show how the technology of Cisco has
helped transform and improve the lives of people, industries, and even countries. By
bringing these real life success stories to the forefront, Cisco wants to show how it can
benefit its partners and their customers.

15
 BMW

Brief History

Bavarian Motor Works (German: Bayerische Motoren Werke AG) or well-known as BMW is a
German automobile, motorcycle and engine manufacturer founded in March 1916 by Franz
Josef Popp, Karl Rapp and Camillo Castiglioni. The BMW company is headquartered in
Munch, Bavaria, Germany. As the parent company of Rolls-Royce Motor Cars, it owns and
produces Mini cars. The BMW company produces motorcycles under BMW Motorrad. In
2012, a data shows that BMW group had produced 1,845,186 automobiles and 117, 109
motorcycles. Along with Audi and Mercedes-Benz, the BMW is part of the ‘German Big-3’
luxury automakers, which are the three best-selling automakers in the world.

Strengths and Weaknesses of BMW

Strengths Weaknesses
 Brand reputation  High cost structure
 Environment friendly vehicles  Weak brand portfolio
 Quality products  High prices
 Highly skilled workforce  Too few acquisitions and strategic
 Corporate Social Responsibility partnerships
 Strong brand presence in China

Strategies Being Employed

 We leverage innovative technologies, digitalization and sustainability to deliver

unique customer experiences.
 We embrace the opportunities that the TRANSFORMATION of our industry offers.
We are committed to expanding our technological competence in the years to come,
to enhancing the interaction of individuals, vehicles and services and to driving
progress in sustainable mobility. This will secure our success and set new standards
amongst our competitors. Our strategic approach comprises: Brands & Design;
Products; Technologies; Customer Experience & Services; Digitalization and
Profitability

Primary Reasons for being a Global Brand

BMW group has got the firm commitment to be a global player, which is aided by its regular
attempts to further differentiate its product line, because of which it had been able to reach
to different markets and thus different customers, as it products provide value for money
(Brand Image). BMW remains on the top of the game in this sector. Although BMW has set
a plan to produce 5.5 million units till 2012 (Market Watch, 2008), but it will have to review
its strategy continuously and while doing this it has to be very careful because of the
economic changes. It has also to be careful from the intense rivalry of Mercedes, Lexus and
other luxury brands. Because the competition in this segment of automobile industry is very
high and one smaller mistake, which may be either in strategy development or in product
development, can have some long-term affects.

16
 Louis Vuitton

Brief History

Louis Vuitton is one of the oldest and the prominent brand in the fashion industry. It was
found in the year 1854 by Louis Vuitton who was leather designer. In the 20th century it
has been a leader in fine leather industry. Dealing with luxurious products it has expanded
its network in 50 countries establishing more than 460 stores. From the year 2006-2012 it
has named as world’s most valuable in the list of luxury brands. Louis Vuitton offers a
perfect blend of handmade as well as machine made fine leather products for the niche
segment of the consumers. As a part of conservation of environment and reduction of the
greenhouse gases, Louis Vuitton employed architects and designed the stores that consume
the most optimum energy bringing down the energy consumption by 50% between year
1995-2010 ensuring the attractive illumination in the stores.

Strengths and Weaknesses of Louis Vuitton

Strengths
 Oldest and legendary house of
fashion in the world.
 Known for skilled handiwork &
exquisite material.
 Touched new heights in context of
artistic capability.
 Biggest luxury brand worldwide with
a 150 year heritage.
 An international logistics centre.
 Exclusivity in material and design.
 Offering custom made products.
 Effective control on quality and
pricing by marketing products
through own stores.
Weaknesses
 The premium positioning of the
product results in it being afforded
only by the elite and the rich who
want to make a statement and want
to be distinctive from others.
 It has restricted retail opportunities
compared to other luxury brands as
the company markets the product
through its own stores only
 Business largely depends on the
economic condition. If economy is
depressed, the sales growth slows
down sharply.
 No precedence of offering products on
a discount.

Strategies Being Employed

 Uses value based pricing in its marketing mix for its products.
 Ensures exclusive distribution channel.
 Employs famous musicians, actors and models in their marketing campaigns.

Reasons for being a Global Brand

Louis Vuitton is one of the most recognisable brands in the world. It is a

fashion powerhouse and not only a leader, but a synonym for luxury.

17
 Marlboro

Brief History

The amazing Marlboro cigarette brand began in England 1847 and was initially targeted at
female smokers. Aiming at this market segment was not successful, so in the 1920's
Marlboro was re-targeted to female smokers in the United States. In the 1950's Marlboro
was again introduced to the market, this time on the heels of a stories about the negative
health aspects of smoking. At the time, the vast majority of cigarettes being sold were non-
filtered. Marlboro was a filtered cigarette, so this clearly was an attempt to win over the
health conscience crowd. Later, during the 50's, the company decided to dump the
targeting of women and began promoting Marlboro as a man's cigarette. Around 1972,
Marlboro cigarettes became the most popular brand, and have remained so, for the most
part since then.

II. John Gokongwei and Universal Robina Corporation

1. The investment of Gokongwei’s on his product in order for him to succeed is that he
has heart in everything he do. He strives for consistence in developing his product
and as a result, their customers patronize their products and services.Gokongwei
used the 4P’s. Product with reasonable price and quality, knowing the place where to
introduce the product and promotion. Even there are many boundaries to concur
with, he still push himself to produce his products.
2. Gokongweimanaged to succeed in his attempts to penetrate different industries
because he is considered as one of the game0changers in various industries. What is

18
 common in his business tactic penetration is his offer of his products at a very low
price with good quality.
3. Gokongwei believes that we can create our very own global brand. One of
Gokongwei’s words of wisdom is “ Don’t be afraid to take on the big boys”. As part of
the Filipino race, our edge from other nations is our passion that pushes us not to be
contented on what we have. Also, we must aware ourselves of the weakness of
others to find rooms for improvement.
4. Yes, because dominant of our population does not trust the quality of our own local
products and often prefer to buy imported products. We should patronize our own
products so that we can now compete with other products.
5. Determination and passion are the entrepreneurial traits which made Gokongwei
successful and he managed to overcome all the hindrances he encounter during the
time he start his business in the market.
6. Sun Cellular has become a large player in terms of postpaid subscribers ans was the
first to propose unlimited texts and calls. With regard to these, the PLDT which is the
largest company in the company acquired Sun Cellular Ad and at the same time it
has its ownership in Smart and TnT. PLDT acquired Sun in order to remain in track
and maybe to beat Globe Telecom. Since PLDT is the majority holder, they now have
the financial control and influence over Sun Cellular.
7. Yes. Without his idea of offering unlimited text and call by Sun Cellular, they
wouldn’t gain more customers and maybe few numbers of customer will patronize
their product/services.

III. Ben Chan and Bench

1. Ben Chan introduced many clothing/apparel design that are highly fashionable and
yet very affordable. Also, Bench use different artists that are very known today to
endorse their product, as a result, many clothing chain today changed the way of
advertising their products. It became trendy every time Bench has new product.
Different designs of clothes are out in the market because many clothing store are in
the market like Penshoppe, etc. Bench offer their products for both men and ladies.

19
 2. Bench uses a high quality material in their products and they increased their market
coverage in different countries. They endorse their products through different models
especially artists to make their product known to customers. Bench used social
media like YouTube, Facebook and other sites to advertise their products.
3. Bench chooses countries that have few competitors like in US because people there
are very fashionable. They also consider the present economic status of that
country; they assess the customer’s capacity to buy. They also consider the
government’s rules and regulation as well as taxation policies.

IV. National Book Store’s Socorro Ramos

1. Nanay Coring shows entrepreneurial spirit with courage, determination and hard
work. She gambles and greatly believes in herself, that no matter what, nothing is
impossible if you do try.
2. Way back then, her parents had a store, selling a lot of stuffs while her grandmother
has a market stall. Due to her grandmother’s mismanagement their business fell.
After that event, they went to Manila and Nanay Coring did summer jobs to earn

20
 money. She worked as a salesgirl in Goodwill Bookstore, owned by the family of Jose
Ramos, her present husband. Socorro said it wasn’t easy for them to start a business
from a scratch especially during Japanese occupation wherein they hadn’t sold books
for a reason and when Japanese where driven away by Americans, their store was
damage in the war. But because of her entrepreneurship spirit with courage and
determination, they overcome all those barriers. And now, place at the number spot;
the biggest Bookstore of our country. Socorro Ramos also known as Nanay Coring, is
one of the Wealthiest Businesswoman in the Philippines.

V. The Success of Procter and Gamble

P&G was founded in 1837 by two men who met by chance. William Procter, emigrating from
England, established himself as a candle maker in Cincinnati, which was busy center of
commerce and industry in the early 19th century. And James Gamble, arriving from Ireland,
apprenticed himself to a soap maker. As a result, in 1837, a bold new enterprise was born:
Procter and Gamble.

21
Tide and Pampers are the two successful and top selling products of P&G. The Tide brand,
P&G’s second-biggest franchise, clearly belongs on the list. Modifications in the detergent
line included a formula for high-efficiency washers that minimizes the creation of suds,
thereby cutting cycle time and water usage. Meanwhile, the Simply Clean and Fresh line
helped P&G gain share at the value-end of the market. The company now offers a full
complement of Tide detergents, from basic to premium. As a result, Tide has made it into
more households, grown its market share and improved its standing with
consumers.Pampers, the company’s biggest brand at 10 billion dollars in annual sales,
performed even better for the company. P&G made a number of changes to its Pampers
diaper line in this year, including upgrades to the fabric in Pampers Easy Ups. The company
also increased its offering for Pampers Swaddlers up to size six. The result of all that
innovation has been market-leading growth.

In comparison to other detergent brands, Tide is huge and spends a much larger amount on
marketing. This works out to a 47% share in the market. Some of the competitors of Tide
include Arm and Hammer, Xtra, Downy, Bounce, Oxi-Clean and Sunlight.

Pampers top competitor is Huggies. They share the same target market but Pampers has
35% global market share which is higher compared to 22% market share of Huggies.
Pampers is said to be softer than Huggies due to its “more fabric like feel” and the former
is fastened by strips using velcro while Huggies use sticky strips.

VI. Walt Disney and Strategic Sourcing

The Walt Disney Company is a diversified worldwide entertainment company with operations
in four major business segments: Studio Entertainment, Parks and Resorts, Media Networks
and Consumer Products.

The company’s strategic sourcing and procurement organization works with all their
business units and their suppliers across the globe to establish the best value for The Walt
Disney Company.

22
Strategic sourcing provides opportunities for suppliers to partner with the company to
provide goods and services. The partnering approach is designed to create a mutually
beneficial relationship between their suppliers and The Walt Disney Company.

Disney sourcing professionals seek out and contract with companies of all sizes and
capabilities, from local and regional suppliers to hose with a global reach – finding suppliers
for a specific company division or the entire enterprise.

Walt Disney rely on a dedicated, competitive, world-class supplier base to collaborative with
their sourcing professionals and work within their infrastructure to bring the Disney magic to
their customers and guests around the world.

The Walt Disney Company continues to invest in technology to bring efficiencies to the
procurement and accounts payable processes. These are the important selected criteria in
choosing their supplier: Pricing; Quality; On-time delivery; Excellent communication;
Integrity; Technical competence; Environmental protection; Supplier and subcontractor
compliance with The Walt Disney Company’s International Labor Standards and Disney’s
Code of Conduct for suppliers; Supplier financial stability and their willingness to share
business risks with The Walt Disney Company.

VII. Jaime Zobel de Ayala and the Ayala Corporation

1. Determination and perseverance helped in the pioneering of real estate

development and banking in the country. Ayala is transforming itself into an
organization that empowers individuals, cultivates thought leadership and
rewards initiative. Ayala is also committed to a development agenda that sees
entrepreneurship as the engine for progress to a better future.

23
 2. Ayala has built a pioneering legacy in various industries and to this day
maintains leadership in key sectors of the Philippines economy. This strategic
investments help ensure long-term profitability, increase shareholder value,
provide employment, participate in the national development agenda and
enhance the lives of the Filipinos.
 Ayala Land is the Philippines’ largest fully integrated property developer
and one of the most successful developers of prime commercial spaces in
the country. It is engaged in master planning and developing growth
centers with a mix of residential, shopping center, office, hotel, and
leisure components.
 Bank of the Philippines Islands is the largest bank in terms of market
capitalization and the third largest in terms of total assets. It has a lead
position in intermediation capacity, corporate and consumer lending,
remittances, and electronic banking.
 Globe Telecom is a major provider of telecommunications services in the
Philippines. Formed out of a partnership between Ayala and Singapore
Telecom, the company operates one of the largest and most
technologically advanced mobile, fixed line and broadband networks in the
country.
 Manila Water is the sole provider of water and wastewater services in the
East Zone of Metro Manila. It now has existing operations in other parts of
the Philippines, and in Vietnam.
 Integrated Micro-Electronics is a leading electronics manufacturing
services (EMS) provider in the region.
 Ayala Automotive Holding Corporation is a leading vehicle dealership
network of both Honda and Isuzu brands with 7% share of Philippine auto
industry sales.
 Live It Investments is the holding company for Ayala’s investments in the
business process outsourcing (BPO) sector.
 AG Holdings is the holding company for the Ayala group’s international
property investments in the United States and Asia.
 AC Energy Holdings is Ayala’s power generation holding company with
investments in the development of solar, wind, and mini-hydro energy
sources.

Ayala group of companies has a good strategies and their company’s

profitability are stable. The good thing about this company is that they
ensure that the benefit will be on their shareholders, consumers and
employees.

VIII. Case Study

Carlo Recio

Problem Analysis

24
Carlo Recio has been promoted as a maintenance supervisor in their company and he knew
that along with promotion comes working in the wee hours of the morning or midnight to
supervise emergency repairs. He has been a good supervisor in empowering his crew to do
job on their own and he has also been fair in pointing out problems and the crew respected
and liked him. Due to his contempt, soon his crew became too horsed in making their jobs.
He pointed out this attitude yet the crew displayed certain coolness. A few weeks had
passed and now he feels a certain ill feeling about being a manager. After some time, he
needed his crew to be cooperative on making an important strategy for their plant. This
includes working with extra hours and being paid together with a meal allowance, for the
next six weekends. He still uncertain of their support and cooperation and the strategy is to
be implemented in the next two weeks.

Proposed Action

The case analysis study has the objective of identifying the methods of implementing
strategies that will encourage the crew to adapt on the changes within six (6) weeks.

My proposed alternative courses of action are first, it is better if Carlo divide the tasks
equally and assign crews to separate works so that each crew would have a specific job and
they will be more focused to do their respective task. There will be an organized schedule
and it would be easy for Carlo to monitor them. Second is set a meeting with the crew and
present the new strategy that will be implemented. Carlo will be able to discuss the
strategies thoroughly and will be able to take some recommendations for improvement or
change from his crew. Next is Carlo should encourage the crew to be motivated and
maintain high quality of work performances in which in return the crew could get incentives.
The crew’s productivity will improve greatly and they will develop a certain commitment to
the job and to the company as a whole. Lastly, do monthly evaluation to assess the crew
and other subordinates about the recent status. The information about the project will be up
to date and there will be a close monitoring of the jobs performed.

25