OUR LADY OF FATIMA UNIVERSITY

College of Business and Accountancy

A Strategic Paper For

PLDT (Philippine Long Distance Telephone) Grace Park
East Grace Park, Caloocan City, Metro Manila

Presented To the Faculty of Our Lady of Fatima University

College Of Business and Accountancy

In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in

Accounting Technology

By:
Alipio, Rizalyn D.
Bandiola, Rochelle F.
Layson, Ara Niña DJ.
Lazalita, Geraldine V.
Rosales, Nikko M.
Ruar, Aimee B.

To:
Dr. Rommel R. Mansueto

February 2019
 TABLE OF CONTENTS

CHAPTER 1: BACKGROUND OF THE STUDY

Introduction........................................................................................................................1
Vision and Mission.............................................................................................................2
Analysis of Mission (Current)............................................................................................3
Proposed Vision and Mission.............................................................................................3
Analysis of Mission (Proposed).........................................................................................4
CHAPTER 2: EXTERNAL AUDIT
PESTEL Analysis..............................................................................................................5
External Audit (Opportunities and Threats)......................................................................10
External Factors Evaluation Matrix...................................................................................11
Porter’s Five Forces Model Analysis.................................................................................12
Competitive Profile Matrix (CPM)....................................................................................14
CHAPTER 3: INTERNAL AUDIT
Value Chain Analysis........................................................................................................15
Financial Ratio Analysis....................................................................................................17
Internal Audit (Strengths and Weaknesses).......................................................................20
Internal Factor Evaluation Matrix......................................................................................21
CHAPTER 4: MATCHING
SWOT Analysis.................................................................................................................23
Internal-External (IE) Matrix............................................................................................29
BCG Matrix.......................................................................................................................30
Grand Strategy Matrix.......................................................................................................31
Space Matrix......................................................................................................................32
Summary of Matrices.........................................................................................................34
CHAPTER 5: DECISION
Quantitative Strategic Planning Matrix (QSPM).........................................................39
CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS
Conclusions and Recommendations...........................................................................42
END MATTERS
Bibliography
Appendices
Curriculum vitae
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CHAPTER 1

Introduction

Company Profile

PLDT Inc.

PLDT, formally known as the Philippine Long Distance Telephone Company, is

the leading telecommunications digital services provider in the Philippines. PLDT also
has one of the largest market capitalizations publicly listed companies in the Philippines.
Given a franchise to operate in 1928, it became a Filipino-controlled corporation by
1968. In 1998, First Pacific Company Limited, which was majority owner of cellular
leader Smart Communications, acquired controlling shared of PLDT and the company
came under the helm of Chairman of the Board, Manuel V. Pangilinan.

PLDT was established on November 28, 1928, by a Philippine Government act.

Philippine legislature and approved by then Governor-General Henry L. Stimson by
means of a merger of four telephone companies under operation of the American
telephone company GTE. Known as Act 3436, the bill granted PLDT a 50-year charter
and the right to establish a Philippine telephone network linking major points nationwide.
However, PLDT had to meet a 40-day deadline to start implemented over a period of one
to four years.

By the 1930s, PLDT had an expensive fixed-line network and for the first time linked the
Philippines to the outside world via radiotelephone services, connecting the Philippines to
the United States and other parts of the world.

Telephone service in the Philippines was interrupted due to World War II. At the end of
the war, the Philippines’ communications infrastructure was in ruins. U.S. military
authorities eventually handed over the remains of the communications infrastructure to
PLDT in 1947, and with the help of massive U.S. aid to the Philippines during the 1940s
and 1950s, PLDT recovered so quickly that its telephone subscribers outpaced that of
pre-war levels by 1953.
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On December 20, 1967, a group of Filipino entrepreneurs and businessmen led by Ramon
Cojuangco took control of PLDT after buying its shares from the American
telecommunications company GTE. The group took control of PLDT’s management on
January 1, 1968, with the election of Gregorio S. Licaros and Cojuangco as chairman and
president of PLDT, respectively. A few months later, PLDT’s main office in Makati
(known today as the Ramon Cojuangco Building) was opened and PLDT’s expansion
programs begin, hoping to bring reliable telephone services to rural areas.

PLDT was permitted to operate during Martial Law. During the 1970s, PLDT was
nationalized by the government of then-President Ferdinand Marcos and in 1981, in
compliance of then existing policy of the Philippine telecommunications industry,
purchased substantially all of the assets and liabilities of Republic Telephone Company,
becoming the country’s telephone monopoly.

On April 2016, the company, then known as the Philippine Long Distance Telephone
Company, dropped the “long distance telephone” from its corporate name and was
renamed PLDT Inc. Its board of directors approved the new corporate name to reflect on
the company’s new range of services, mainly focusing on data services. On June 13,
2016, PLDT and its subsidiary Smart unveiled their new logos and identity as part of the
company’s continuing digital pivot.

EXISTING VISION AND MISSION OF PLDT

The researchers indicate the existing vision and mission of PLDT

Vision:

Lead and inspire Filipinos to create a better tomorrow.

Mission:

Empower Filipinos everywhere with customer-focused digital innovations that

unlock and share their infinite potential.
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Analysis of the Current Mission statement

MISSION STATEMENT
YES/NIL STATEMENT
COMPONENTS

YES
Customers Filipinos

Product and Services NIL

Market NIL

Technology YES Customer-focused digital innovations

Concern for Survival,
NIL
Growth, and Profitability.

Philosophy NIL
Innovations that unlock and share Filipinos
Self-concept YES
Infinite potential

Concern for Public Image NIL

Concern for employees NIL

Table 1.1 Mission Statement Evaluation Matrix
Table above is the evaluations for the nine essential components of the current
mission statements.

Proposed Vision Statement

To be the fastest, and reliable source of telecommunications to create a better

every-day life for many Filipinos.

Proposed Mission Statement

PLDT, a Filipino Controlled Corporation, has one of the largest market

capitalizations publicly trusted companies in the Philippines where we empower the
Filipinos everywhere with customer–focused digital innovations that unlock and share
their infinite potential. We offer high speed internet from a wide variety of service
providers. We strive to act with Accountability, Integrity, Fairness and Transparency so
that we do not only value our customers but also our employees as well. As a result,
 4

costumers shows their loyalty, and affinity helping PLDT achieve market dominance and
value creation which allow people, shareholders and communities prosper.

Analysis of the Proposed Mission Statement

MISSION STATEMENT
YES/NIL STATEMENT
COMPONENTS
Customer YES Filipinos

Product and Services YES We offer high speed internet from a wide
variety of service

Market YES Philippines

Technology YES Customer-focused digital innovations
Concern for Survival,
YES Consumer show their loyalty and affinity
Growth, and Profitability
Accountability, Integrity, Fairness and
Philosophy YES
Transparency

Self-concept YES Innovations that unlock and share Filipinos

Infinite potential

PLDT achieve market dominance and value

Concern for Public Image YES creation which allow people, shareholders and
communities prosper

Concern for employees YES We do not only value our costumers but our
employees as well
Table 1.2 Analysis of Mission Statement
Table above is the evaluations for the nine essential components of the proposed
mission statements.

CHAPTER 2
EXTERNAL AUDIT
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The external audit helps in identifying the factors that affects the company as well as
improving the areas that needs improving. This will give insight understanding that will
lead to efficiency and effectiveness. Factors can be considered opportunity or threat.

P.E.S.T.E.L Analysis

PLDT Inc. PESTEL analysis is a strategic tool to analyze the macro environment
of the organization. PESTEL stands for - Political, Economic, Social, Technological,
Environmental & Legal factors that impact the macro environment of PLDT Inc.

Changes in the macro-environment factors can have a direct impact on not only the
PLDT Inc. but also can impact other players in the Telecom Services - Foreign. The
macro-environment factors can impact the Porter Five Forces that shape strategy and
competitive landscape. They can impact individual firm’s competitive advantage or
overall profitability levels of the Technology industry.

PESTEL analysis provides great detail about operating challenges PLDT Inc. will face in
prevalent macro environment other than competitive forces. For example an Industry may
be highly profitable with a strong growth trajectory but it won't be any good for PLDT
Inc. if it is situated in unstable political environment.

Political

Political factors play a significant role in determining the factors that can impact
PLDT Inc.'s long term profitability in a certain country or market. PLDT Inc. is operating
in Telecom Services - Foreign in more than dozen countries and exposes itself to different
types of political environment and political system risks. The achieve success in such a
dynamic Telecom Services - Foreign industry across various countries is to diversify the
systematic risks of political environment. PLDT Inc. can closely analyze the following
factors before entering or investing in a certain market.

 Political stability and importance of Telecom Services - Foreign sector in the

country's economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Technology sector.
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 Bureaucracy and interference in Telecom Services - Foreign industry by

government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Technology
 Favored trading partners
 Anti-trust laws related to Telecom Services – Foreign
 Pricing regulations – Are there any pricing regulatory mechanism for Technology
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Work week regulations in Telecom Services – Foreign
 Mandatory employee benefits
 Industrial safety regulations in the Technology sector.
 Product labeling and other requirements in Telecom Services – Foreign

Economical

The Macro environment factors such as – inflation rate, savings rate, interest rate,
foreign exchange rate and economic cycle determine the aggregate demand and aggregate
investment in an economy. While micro environment factors such as competition norms
impact the competitive advantage of the firm. PLDT Inc. can use country’s economic
factor such as growth rate, inflation & industry’s economic indicators such as Telecom
Services - Foreign industry growth rate, consumer spending etc to forecast the growth
trajectory of not only sector but also that of the organization. Economic factors that
PLDT Inc. should consider while conducting PESTEL analysis are:

 Type of economic system in countries of operation – what type of economic

system there is and how stable it is.
 Government intervention in the free market and related Technology
 Exchange rates & stability of host country currency.
 Efficiency of financial markets – Does PLDT Inc. needs to raise capital in local
market?
 Infrastructure quality in Telecom Services - Foreign industry
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 Comparative advantages of host country and Technology sector in the particular

country.
 Skill level of workforce in Telecom Services - Foreign industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Business cycle stage (e.g. prosperity, recession, recovery)
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

Social

Society’s culture and way of doing things impact the culture of an organization in
an environment. Shared beliefs and attitudes of the population play a great role in how
marketers at PLDT Inc. will understand the customers of a given market and how they
design the marketing message for Telecom Services - Foreign industry consumers. Social
factors that leadership of PLDT Inc. should analyze for PESTEL analysis are:

 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the PLDT Inc. ’s industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

Technological

Technology is fast disrupting various industries across the board. Transportation

industry is a good case to illustrate this point. Over the last 5 years the industry has been
 8

transforming really fast, not even giving chance to the established players to cope with
the changes. Taxi industry is now dominated by players like Uber.

Car industry is fast moving toward automation led by technology firm such as Google &
manufacturing is disrupted by Tesla, which has stated an electronic car revolution.

A firm should not only do technological analysis of the industry but also the speed at
which technology disrupts that industry. Slow speed will give more time while fast speed
of technological disruption may give a firm little time to cope and be profitable.
Technology analysis involves understanding the following impacts -

 Recent technological developments by PLDT Inc. competitors

 Technology's impact on product offering
 Impact on cost structure in Telecom Services - Foreign industry
 Impact on value chain structure in Technology sector
 Rate of technological diffusion

Environmental

Different markets have different norms or environmental standards which can

impact the profitability of an organization in those markets. Even within a country often
states can have different environmental laws and liability laws. For example in United
States – Texas and Florida have different liability clauses in case of mishaps or
environmental disaster. Similarly a lot of European countries give healthy tax breaks to
companies that operate in the renewable sector.

Before entering new markets or starting a new business in existing market the firm should
carefully evaluate the environmental standards that are required to operate in those
markets. Some of the environmental factors that a firm should consider beforehand are:

 Weather
 Climate change
 Laws regulating environment pollution
 9

 Air and water pollution regulations in Telecom Services - Foreign industry

 Recycling
 Waste management in Technology sector
 Attitudes toward “green” or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

Legal

In number of countries, the legal framework and institutions are not robust
enough to protect the intellectual property rights of an organization. A firm should
carefully evaluate before entering such markets as it can lead to theft of organization’s
secret sauce thus the overall competitive edge. Some of the legal factors that PLDT Inc.
leadership should consider while entering a new market are -

 Anti-trust law in Telecom Services - Foreign industry and overall in the country.
 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection

External Audit (O-T Opportunities and Threats)

Opportunities
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1. Increasing of people who communicate online frequently

2. Similar service on the market are not as reliable
3. Loyal and increasing numbers of customers countrywide
4. Increasing consumer interest
5. Decrease in competition
6. Company and network expansion
7. Customers increasing knowledge about how internet works
8. Internet and communication as a marketing tool
9. Always high demand of service
10. Similar service but different offer in the market

Threats
1. Competitors with same service
2. Competitor's launching of unique advertising campaign
3. Competitor's opening of new offices and branches
4. Slowdown in economic activity
5. Competitor's stronger brand names in the market
6. Merge and consolidations of the competitors
7. Service availability
8. Rapid change and upgrade of systems
9. Changes of technologies and way of providing service
10. Customer's demands

Table 2.1External Audit (Opportunities and Threats)

External Audit table shows the opportunities and threats that the company
overcomes.

External Factors Evaluation Matrix

 11

External Factors Evaluation (EFE) Matrix is a strategy tool used to examine

company’s external environment and to identify the available opportunities and threats.
EFE MATRIX FOR PLDT
Weighted
Critical Success Factors Weight Rating
Score
Opportunities
Increasing of people who communicate online
frequently 0.08 4 0.32
Similar service on the market are not as reliable 0.04 4 0.16
Loyal and increasing numbers of customers
countrywide 0.04 4 0.16
Increasing consumer interest 0.05 4 0.20
Decrease in competition 0.04 3 0.12
Company and network expansion 0.04 3 0.12
Customers increasing knowledge about how
internet works 0.05 3 0.15
Internet and communication as a marketing tool 0.08 3 0.24
Always high demand of service 0.04 4 0.16
Similar service but different offer in the market 0.05 3 0.15
Threats
Competitors with same service 0.04 3 0.12
Competitor's launching of unique advertising
campaign 0.08 3 0.24
Competitor's opening of new offices and branches 0.03 2 0.06
Slowdown in economic activity 0.03 3 0.09
Competitor's stronger brand names in the market 0.05 4 0.20
Merge and consolidations of the competitors 0.07 2 0.14
Service availability 0.04 3 0.12
Rapid change and upgrade of systems 0.04 3 0.12
Changes of technologies and way of providing
service 0.05 3 0.15
Customer's demands 0.06 4 0.24
TOTAL 1.00 3.26
Table 2.2 External Factors Evaluation Matrix

Refer to the table given above, it shows the different percentages which are
weight and rate of the company to identify their strength. The higher the percentages are
the highest possibility that it can have a big effect in the company. The rating is based on
four choices: 1- not implemented or no plans, 2- has been planned or pending, 3- ongoing
implementation of the company’s plan and 4- excellently implemented. Weight times
 12

Rate is equal to Total Weighted Score of 3.26. It only shows that PLDT is responding
above average to its external factors. The company is trying to grab maximum
opportunities available with avoiding threats.

Porter’s Five Forces Model Analysis

Porter Five Forces Analysis is a strategic management tool to analyze industry

and understand underlying levers of profitability in a given industry. PLDT Inc. managers
can use Porter Five Forces to understand how the five competitive forces influence
profitability and develop a strategy for enhancing PLDT Inc. competitive advantage and
long term profitability in Telecom Services.

1. Threats of New Entrants

PLDT Inc. can tackle the Threats of New Entrants

 By innovating new products and services. New products not only brings new
customers to the fold but also give old customer a reason to buy PLDT Inc.‘s
products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New
entrants are less likely to enter a dynamic industry where the established players
such as PLDT Inc. keep defining the standards regularly. It significantly reduces
the window of extraordinary profits for the new firms thus discourage new players
in the industry.

2. Bargaining Power of Suppliers

PLDT Inc. can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 13

 By experimenting with product designs using different materials so that if the

prices go up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons PLDT Inc. can learn from Wal-Mart and Nike is how these companies
developed third party manufacturers whose business solely depends on them thus
creating a scenario where these third party manufacturers have significantly less
bargaining power compare to Wal-Mart and Nike.

3. Bargaining Power of Buyers

PLDT Inc. can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will
reduce the bargaining power of the buyers plus it will provide an opportunity to
the firm to streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and
offerings on established products so if PLDT Inc. keep on coming up with new
products then it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of PLDT Inc.
to its competitors.

4. Threats of Substitute Products or Services

PLDT Inc. can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is
buying.
 By increasing the switching cost for the customers.

5. Rivalry among the Existing Competitors

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PLDT Inc. can tackle Intense Rivalry among the Existing Competitors in Telecom
Services - Foreign industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just
competing for small market.

Competitive Profile Matrix (CPM)

GLOBE BAYANTEL
PLDT
TELECOM
Critical Weighte Weighte Weighte
Weigh Ratin Ratin Ratin
d d d
t g g g
Success Factors Score Score Score

Market Position 0.30 4 1.20 4 1.20 3 0.90

Operating
Management 0.20 3 0.60 3 0.60 3 0.60
Diversification 0.10 3 0.30 3 0.30 3 0.30
Quality of
Services 0.30 2 0.60 2 0.60 2 0.60
Financial
Flexibility 0.10 3 0.30 2 0.20 2 0.20

Total 1.00 3.00 2.90 2.60

Table 2.3 Competitive Profile Matrix

Competitive Matrix identifies the firm’s major competitors and its particular
strengths and weaknesses in relation to its competitors. It displays the basis of an
organization’s strategy and is a useful instrument to communicate those strategic
attributes to all in the organization.

It shows in the table above the total score of each company where PLDT accumulated a
total score of 3.00, while the Globe Telecom got a score of 2.90 and 2.60 for Bayantel
Consequently PLDT and Globe Telecom are very tough competitors as their accumulated
 15

scores only differs 0.1 and both companies excel with respect to their performance in the
telecommunications industry in the Philippines.
 16

CHAPTER 3
INTERNAL AUDIT

The internal audit presents the value chain analysis, financial ratio analysis, the
internal audit which focus on the strength and weaknesses of PLDT Inc. and the internal
factor evaluation matrix.

Value Chain Analysis

Chain of activities that a firm operating in a specific industry performs in order to
deliver a valuable product or services for the market.

Inbound Logistic

Operations

Outbound Logistic

Marketing and Sales

Service
Table 3.1 Value Chain Analysis
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1. Inbound logistic

PLDT acquired 51.55% of the shares of Digital Telecommunications Philippines from

JG Summit Holdings in March 2011 with the cost of ₱69.2 Billion. Because of this,
the shares of Digitel and JG Summit in the PSE surges while PLDT's shares remained
unchanged. In the deal, JG Summit will have a 12% share in PLDT. It was finalized
by the National Telecommunications Commission on October 26, 2011.

2. Operations

PLDT is the leading telecommunications service provider in the Philippines. Through

its principal business groups – fixed line, wireless and others – PLDT offers a wide
range of telecommunications services across the Philippines’ most extensive fiber
optic backbone and fixed line and cellular networks.

3. Outbound logistics

PLDT’s corporate governance principles, structures and processes are established and
articulated in two fundamental policies: The CG Manual and the Code of Ethics.
These policies are benchmarked against global best practices in corporate
governance, yet are applicable and responsive to PLDT’s particular context. As part
of Board oversight, the Company’s corporate governance policies and their
effectiveness are reviewed every two (2) years to ensure that they continue to be
compliant, appropriate and effective.

4. Marketing and Sales

PLDT was established on November 28, 1928, by a Philippine Government act.

Philippine legislature and approved by then Governor-General Henry L. Stimson by
means of a merger of four telephone companies under operation of the American
telephone company GTE. Number of employees: 17,496 (2014) Founded: Manila,
Philippine Islands; (November 28, 1928; 90 years ago) Formerly: Philippine Long
Distance Telephone Company
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5. Services

PLDT HOME is the country's leading broadband and digital services provider that
allows seamless, simultaneous streaming in all your devices at home. Enabling
moments that bring your family closer together, PLDT HOME offers Fibr, Vibe, DSL,
Ultera and Telpad services.

Financial Ratio Analysis

Liquidity Ratios
Current Ratio 114,608,000
0.66
173,773,000
Quick or Acid-Test Ratio 89,011,000
0.51
173,773,000
Leverage Ratios
Debt-to-Total-Asset Ratio 357,065,000
0.76
470,841,000
Debt-to-Equity Ratio 357,065,000
3.14
113,776,000
Long term debt to equity Ratio 183,292,000
1.61
113,776,000
Times-Interest-Earned Ratio 21,249,000
0.07
309,000,000
Activity Ratios
Inventory-Turnover Ratio 11,070,000
1.05
(5,218,000+3,933,000)/2
Total-Asset Turnover 123,151,000
0.26
(470,841,000+459,444,000)/2
Fixed-Asset Turnover 123,151,000
0.65
(194,748,000+186,907,000)/2
Average Collection Period 38,959,000
115.50
123,151,000/365
Profitability Ratios
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Gross Profit Margin 12,3151,000-11,070,000

0.91
123,151,000
Operating Profit Margin 21,558,000
0.18
123,151,000
Net Profit Margin 16,326,000
0.13
123,151,000
Return on Total Asset (ROA) 16,326,000
0.04
(470,841,000+459,444,000)/2
Return on Stockholders’ Equity 16,326,000
0.15
(113,776,000+111,183,000)/2
Earnings per Share 16,326,000
0.08
216,968,000
Growth Ratios
Sales 123,151,000-119,066,000
0.03
119,066,000
Net Income 16,326,000-21,942,000
(0.26)
21,942,000
Earnings per Share 16,326,000
0.08
216,968,000
Dividends per Share 1,649,000
2.48
666,000,000
Table 3.2 Financial Ratios of PLDT Inc.

Evaluation of PLDT’s Financial Ratios

Liquidity Ratio

Under the Liquidity ratio, there are two ratios: Current Ratio and Quick or Acid-Test
Ratio. This ratio shows the liquidity or how the asset can settle the current liability of the
company. Current ratio of PLDT’s is 0.66 times while under the quick ratio it has 0.51
times lower than the current ratio. This means that current ratio is 0.66 times faster than
quick ratio that has only 0.51 times to pay the current obligation. The inventory has a
considerable effect on its ability to pay short term debts.

Leverage Ratio
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Leverage ratio computed in four different ratios: Debt-to-Asset ratio, Debt-to-Equity

ratio, Long-Term Debt-to-Equity and Time-Interest-Earned ratio. Debt-to-Asset ratio
shows that 76% of the assets held and used are financed with debt and it is not much
favorable since creditor must be satisfied before owner in the event of bankruptcy and
that the reliance on creditors is high. Debt-to-Equity ratio garnered a rate of 3.14 or 314%
which is unfavorable to the company because the payment of the debt using equity cannot
sustain the obligation of the company's creditor. While under the long-term debt-to-equity
ratio has a rate of 1.61 or 161% that proves that the equity can satisfy its long-term
obligation.

Activity Ratio

Activity ratio composes of 4 different ratios namely: Inventory-Turnover ratio, Total-

Asset Turnover, Fixed-Asset Turnover and Average Collection Period. The Total-Assets
Turnover is 0.26 times lower than Inventory Turnover and Fixed Asset Turnover which
have 1.05 and 0.65 respectively. This reveals that the investment in the assets of the
company is 0.26 times which is slower compared to Inventory Turnover which has 1.05
times. It shows the efficient inventory management and profit of the firm.

Profitability Ratio

Under Profitability Ratio, there are 6 different ways to calculate the company's
productivity: Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on
Total Assets (ROA), Return on Stockholders' Equity (ROE) and Earnings per Share. The
Gross Profit, Operating Profit and Net Profit Margin have ratios of 91%, 18% and 13%
correspondingly. The rates are favorable for the company since it indicates the ability of
the company to manage its expenses.

Return on Assets has 4% and The Return on Equity 15%. This signifies that the Return on
Assets exceeds Return on Equity and that the company is dependent on the asset
investment.
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Internal Audit (Strengths and Weaknesses)

Internal Audit
Strengths
1. Diversified business operations
2. Advanced integrated network
3. One of the top position in the Philippines
4. One of the provider of wireless phones
5. Has creative marketing strategies
6. Has a wide range of products
7. Industry Specialists
8. National coverage
9. Foreign investments
10. Strong sales team
Weaknesses
1. Slow connection
2. Half of the company's total debt are coverage by US dollars
3. Venture for new technologies
4. Slow service
5. Low signal strength
6. Intense competition
7. Corroded cable lines
8. Company's liability and obligations
9. Increase numbers of competitors in the market
10. Public perception
Table 3.3 Internal Audit (Strengths and Weaknesses)
The internal audit locates the strengths and weaknesses of a company that is
associated to its internal elements. It also searches for the influencers that can be settled
and further developed.

Strengths
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PLDT offers the largest and most diversified range of telecommunications

services across the country through its three principal business groups, namely: Fixed
Line, Wireless, and Information and Communication Technology. The company uses the
most extensive fiber optic backbone and fixed line, cellular and satellite networks to
provide the best services for their consumers.

Weaknesses

On the other hand, one of the weaknesses of PLDT is slow connection. When
PLDT launched its Vibe and DSL products, which allowed customers to have a faster
connection to the internet using broadband, there a lot were of complains regarding the
service provided. Much of the complaints were because of the slow connection which
didn’t meet the customer’s expectations. And that complaints made or reported were not
attended at a reasonable time. This kind of situations may cause customers to decide and
change their providers, who they believe are much better in providing the service needed.

Internal Factor Evaluation Matrix

IFE MATRIX FOR PLDT

Weighted
Critical Success Factors Weight Rating Score
Strengths
Diversified business operations 0.07 4 0.28
Advanced integrated network 0.06 4 0.24
One of the top position in the Philippines 0.04 3 0.12
One of the provider of wireless phones 0.05 3 0.15
Has creative marketing strategies 0.07 4 0.28
Has a wide range of products 0.05 3 0.15
Industry Specialists 0.05 3 0.15
National coverage 0.04 3 0.12
Foreign investments 0.04 3 0.12
Strong sales team 0.05 3 0.15

Weaknesses
Slow connection 0.06 2 0.12
 23

Half of the company's total debt are coverage

by US dollars 0.04 2 0.08
Venture for new technologies 0.06 2 0.12
Slow service 0.04 2 0.08
Low signal strength 0.04 2 0.08
Intense competition 0.05 2 0.10
Corroded cable lines 0.04 2 0.08
Company's liability and obligations 0.04 1 0.04
Increase numbers of competitors in the
market 0.05 2 0.10
Public perception 0.06 2 0.12
TOTAL 1.00 2.68
Table 3.4 Internal Factor Evaluation Matrix
Given the table above, total weighted score of 2.68 shows that PLDT has solid
internal position and its strength are overcoming the weaknesses.
 24

CHAPTER 4

MATCHING

The matching stage of the strategy formulation consists of five techniques: SWOT
matrix, SPACE matrix, the BGC matrix, the IE matrix and the Grand Strategy Matrix.
These tools depend upon the information gathered from the previous input stage to match
external opportunities and threats with internal strengths and weaknesses. This will assist
in ascertaining the efficient strategic plan and its focus.

SWOT Analysis
SWOT analysis is a strategic formulating tool used to evaluate the Strength,
Weaknesses, Opportunities, and Threats. It is considered important for it seeks
improvement through the use of present data that the business holds or situation that the
company is involved in. This matrix will help develop strategies from: S-O strategies, W-
O strategies, S-T strategies and W-T strategies.

Strengths S-O Strategies Opportunities

1. Diversified business 1. PLDT is known of 1. Increasing of people
operations being diversified who communicate
across communication online frequently
service so they should
have their service
available all the time.
(S1-O4)
2. Advanced integrated 2. Put an advance 2. Similar service on
network technology network the market are not as
that will help reliable
customer’s concern
and staffs availability
to serve them. (S2-O5)
3. One of the top 3. Build and expand 3. Loyal and increasing
position in the branches so customers numbers of
Philippines can easily address customers
concerns and countrywide
subscriptions. (S3-O6)
4. One of the provider 4. Produce more of 4. Increasing consumer
of wireless phones wireless phones as interest
marketing tools to
maintain and sustain
communication. (S4-
O8)
 25

5. Has creative 5. Creative marketing 5. Decrease in

marketing strategies strategies plotted to competition
serve customer can be
used to serve
convenient, unique and
cheaper services to
offer. (S5-O2)
6. Has a wide range of 6. Invent and improve 6. Company and
products range of products network expansion
produce to keep
customer's loyalty
countrywide. (S6-O3)
7. Industry Specialists 7. Branding gets 7. Customers increasing
recognition and knowledge about
becomes known to the how internet works
consumers. (S7-O9)
8. National coverage 8. Use company's 8. Internet and
national coverage to communication as a
take advantage of marketing tool
increasing of people
who has knowledge of
internets. (S8-O7)
9. Foreign investments 9. Accumulate foreign 9. Always high demand
investments so of service
company will have
bigger network of
customer to use the
service to
communicate. (S9-O1)
10 Strong sales team 10 Encouraging the 10 Similar service but
. . customer to . different offer in the
recommend a friend or market
give positive feedback
can have an impact on
the growth of the
business through
increased brand
awareness and sales.
(S10-O6)
 26

Weaknesses W-O Strategies Opportunities

1. Slow connection 1. Excogitate solution on 1. Increasing of people
how to change and who communicate
improve connection as online frequently
it is the marketing tool
in the
telecommunication
business. (W1-O8)
2. Half of the company's 2. Operate with 2. Similar service on
total debt are company's debt and the market are not as
coverage by US use them for expansion reliable
dollars while paying debt
gradually. (W2-O6)
3. Venture for new 3. Invest for new venture 3. Loyal and increasing
technologies of technologies for numbers of
better customer service customers
and staffs to be readily countrywide
available. (W3-O5)
4. Slow service 4. Come up with more 4. Increasing consumer
affordable bundles or interest
plans so that the
customer will
continuously subscribe
to the PLDT. (W4-O2)
5. Low signal strength 5. Responds to customers 5. Decrease in
request for solution to competition
be provided. (W5-
O10)
6. Intense competition 6. Be partners with 6. Company and
competitors to dissolve network expansion
stiff competition all
over the country to be
readily available. (W6-
04)
7. Corroded cable lines 7. Companies must hire 7. Customers increasing
specialists and knowledge about
knowledgeable how internet works
employees to support
the technical issues
that costumer may
complain. (W7-O9)
 27

8. Company's liability 8. Payoff company's 8. Internet and

and obligations liability and obligation communication as a
to other company marketing tool
using company assets
at least slowly to have
customer's trust be
gained. (W8-O3)
9. Increase numbers of 9. Be different with the 9. Always high demand
competitors in the competitors in the of service
market market and invest
more with the
customer’s satisfaction
as they grew their
knowledge on using
internet. (W9-O7)
10 Public perception 10 Change and release 10 Similar service but
. . more of good . different offer in the
advertisement to market
encourage people's
perception to PLDT so
there will be increase
of customers that will
get the service. (W10-
O1)

Strengths S-T Strategies Threats

1. Diversified business 1. Since PLDT is a 1. Competitors with
operations diversified business same service
among telecom
domain this can be
used to correspond
rapid change and
upgrading of systems.
(S1-T8)
2. Advanced integrated 2. Provide advance 2. Competitor's
network integration on opening launching of unique
new offices and advertising campaign
branches. (S2-T3)
3. One of the top 3. As PLDT owns top 3. Competitor's opening
position in the position of the of new offices and
Philippines Philippines they can branches
buy company and
competitors to
merging. (S3-T6)
4. One of the provider 4. Discover wireless 4. Slowdown in
of wireless phones phones that will economic activity
 28

conform to the changes

of technologies and
way of providing
service. (S4-T9)
5. Has creative 5. Plot creative marketing 5. Competitor's stronger
marketing strategies strategies to be differ brand names in the
from competitors market
offering same service.
(S5-T1)
6. Has a wide range of 6. Produce more numbers 6. Merge and
products of products that will consolidations of the
satisfy customers competitors
demand. (S6-T10)
7. Industry Specialists 7. Employ industry 7. Service availability
specialists to know
how to compete with
stronger brand and
products. (S7-T5)
8. National coverage 8. Use national coverage 8. Rapid change and
of the company to upgrade of systems
improve service
availability. (S8-T7)
9. Foreign investments 9. Use foreign investment 9. Changes of
to take risk of the technologies and way
economy's downturn. of providing service
(S9-T4)
10 Strong sales team 10 Sales team should 10 Customer's demands
. . create a long-lasting .
impact on the customer
that lead to repeat
custom, referrals and
increase the brand’s
reputation by word of
mouth. (S10-T2)

Weaknesses W-T Strategies Threats

1. Slow connection 1. Improve with service 1. Competitors with
connection to meet same service
customer demand.
(W1-T10)
2. Half of the company's 2. Turn company's debt 2. Competitor's
total debt are into service and launching of unique
coverage by US change of technologies advertising campaign
dollars to payoff gradational.
(W2-T9)
3. Venture for new 3. Involve with new 3. Competitor's opening
 29

technologies venture of of new offices and

technologies to be branches
updated with rapid
changes. (W3-T8)
4. Slow service 4. Provide better services 4. Slowdown in
and responds economic activity
immediately to
customers complaints
or reports so that they
will not change their
providers. (W4-T7)
5. Low signal strength 5. Merge with other 5. Competitor's stronger
companies that will brand names in the
help to secure a better market
connection for the
better subscription of
the consumer. (W5-T6)
6. Intense competition 6. Create a good 6. Merge and
relationship with consolidations of the
companies to dissolve competitors
competition with
known brand. (W6-T5)
7. Corroded cable lines 7. Replace or repair 7. Service availability
damage cable lines so
that customers will not
switch to rival
telecommunication
company. (W7-T4)
8. Company's liability 8. Take care of 8. Rapid change and
and obligations company's liability and upgrade of systems
obligations then open
new offices to pay off
debt gradually. (W8-
T3)
9. Increase numbers of 9. Merge with 9. Changes of
competitors in the competitors with the technologies and way
market same service to offer of providing service
and launch unique
campaign. (W9-T2)
10 Public perception 10 Make good 10 Customer's demands
. . impressions to the .
customers to be
different in some ways
to the competitors
offering same services.
(W10-T1)
 30

Internal-External Matrix (IE Matrix)

The IFE Total Weighted Score

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
High I II III
3.0 to
3.99 PLDT

Medium IV V VI
The EFE 2.0 to
Total 2.99
Weighted
Score
Low VII VIII IX
1.0 to
1.99

GROW AND BUILD

The Internal-External (IE) matrix is another strategic management tool used to
analyze working conditions and strategic position of a company. The Internal-External
matrix is based on an analysis if internal and external business factors which are
combined into one suggestive model.

Refer to the table above, the calculated Internal Factor Evaluation (IFE) matrix of
PLDT is 2.68 while the calculated External Factor Evaluation (EFE) matrix of PLDT is
3.26 which points at above-average internal and external strength. This IE matrix tells
that PLDT should grow and build its positions. The company should follow strategies
focused on increasing market saturation and product development.
 31

BCG Matrix

The BGC growth-share matrix shows the various business units on a graph which
will be presented based on market growth rate vs. relative market share (competitor’s
market share). This will be classified as a star, question mark, cash cow, and BCG dogs
depending on the performance of companies.

High
M
AR
KE
T
GR
O
W
TH
RA
TE

Low

Relative Market Share)

High Low
 32

PLDT is a Star (high growth, high market share)

- Stars generate large amounts of cash with strong relative market share.
- Stars use large amounts of cash because of high growth rate.

BGC Question Mark (high growth, low market share)

- Question marks are growing quickly. Do not generate much cash.
- Question marks have potential to become a star and eventually a cash cow.

BGC Cash Cow (low growth, high market share)

- Displays a return on assets that is above the market growth rate.
- Make available the cash required to turn question marks into market lenders.
- Produce a relatively stable cash flow.

BCG Dogs (low growth, low market share)

- Dogs are in low growth markets and have low market share.
- Dogs should be avoided and minimized.
- Expensive turn-around plans usually do not help.

Grand Strategy Matrix

Grand Strategy Matrix is a popular tool for devising alternative strategies. In this
matrix, the company should be placed in one of the quadrants. It has two dimensions:
Competitive position and market growth. This will give an idea about competitiveness
and strategic position.
GRAND STRATEGY MATRIX FOR PLDT Inc.
RAPID
MARKET
GROWTH

Quadrant II Quadrant I

PLDT Inc. Target

WEAK
COMPETITIVE STRONG
COMPETITIV
POSITION E
POSITION
33
 34

1. Market
development
2. Market penetration
3. Product
development
4. Horizontal
integration
5. Divestiture
6. Liquidation
CA

PLDT Inc. is in Quadrant II. Businesses

in this quadrant have a rapid market
growth but cannot contend adeptly. It
needs to assess its current tactic Defensive
and to ES Competitive
find out its inefficiencies that must be
solved. The listed options can be used to
A firm in the Aggressive quadrant should use its interna
advance its strategic position.
of external opportunities, (2) overcome internal weak
Space Matrix threats. Therefore, market penetration, market deve
Strategic Position and Action backward integration, forward integration, horizo
Evaluation Matrix (SPACE Matrix) is diversification, concentric diversification, horizontal d
very useful but not that popular. It strategy can all be feasible.
+6
balances the external and internal factors
Internal Strategic PositionFinancial Exte
that should aid in determining the+5focal
Position (FP)
point of the strategic plan. IT+4 will
+4 Return on Investment -1 Techn
indicate whether the organization
+3 is
+4 Leverage -2 Dema
aggressive, conservative, defensive,
+2 or
+5 Liquidity -2 Comp
competitive. +1
+5 Working Capital competit
+0
-5 -4 -3 -2 -1 +0 +1 +5
+2 Cash
+3Flow+4 +5 Average
Conservative -1 FS
Average 4.6
-2

-3 Total Y axis score = 3

-4
Competitive Position (CP)
-2Market Share-2 Product Quality-2 +5 Grow
-5
Customer Loyalty-1 Customer Service- Product
-6
 35

operatio Total X axis score = 3

ns
Advance 2 Half of
d . the
integrate compan
d y's total
network debt are
coverag
e by US
dollars
One of 3 Venture
the top . for new
position technol
in the ogies
FP – (+6 best, +1 worst) Philippin
CP/SP – (-6 worst, -1 best) es
One of 4 Slow
the . service
provider
of
wireless
phones
SPACE MATRIX FOR PLDT Inc. Has 5 Low
creative . signal
Internal Strategic marketin strength
Position g
+1 Worst strategie
Financial Strength + +6 Best s
Competitive -6 Worst -1 Has a 6 Intense
Advantage - Best wide . competi
range of tion
External Strategic products
Position Industry 7 Corrode
Environmental -6 Worst -1 Specialis . d cable
Stability - Best ts lines
+1 Worst National 8 Compa
Industry Strength + +6 Best coverage . ny's
liability
Analysis and TOWS Summary and
obligati
TOWS or SWOT for PLDT Inc. ons
Weakness Foreign 9 Increase
Strengths es investme . number
Diversifi 1 Slow nts s of
ed . connect competi
business ion tors in
 36

the and . and . for new

market increasin expand venture
Strong 1 Public g branches of
sales 0 percepti numbers so technol
team . on of customer ogies
custome s can for
Opportuni S-O W-O rs easily better
ties Strategies Strategies country address custome
Increasi 1 PLDT is 1 Excogit wide concerns r
ng of . known . ate and service
people of being solution subscript and
who diversifi on how ions. staffs to
commun ed across to (S3-O6) be
icate commun change readily
online ication and availabl
frequentl service improve e. (W3-
y so they connect O5)
should ion as it Increasi 4 Produce 4 Come
have is the ng . more of . up with
their marketi consume wireless more
service ng tool r interest phones afforda
available in the as ble
all the telecom marketin bundles
time. municat g tools to or plans
(S1-O4) ion maintain so that
busines and the
s. (W1- sustain custome
O8) commun r will
Similar 2 Put an 2 Operate ication. continu
service . advance . with (S4-O8) ously
on the technolo compan subscrib
market gy y's debt e to the
are not network and use pldt.
as that will them (W4-
reliable help for O2)
customer expansi Decreas 5 Creative 5 Respon
’s on e in . marketin . ds to
concern while competit g custome
and paying ion strategie rs
staffs debt s plotted request
availabili graduall to serve for
ty to y. (W2- customer solution
serve O6) can be to be
them. used to provide
(S2-O5) serve d. (W5-
Loyal 3 Build 3 Invest convenie O10)
 37

nt, ication national liability

unique as a coverage and
and marketin to take obligati
cheaper g tool advantag on to
services e of other
to offer. increasin compan
(S5-O2) g of y using
Compan 6 Invent 6 Be people compan
y and . and . partners who has y assets
network improve with knowled at least
expansio range of competi ge of slowly
n products tors to internets. to have
produce dissolve (S8-O7) custome
to keep stiff r's trust
customer competi be
's loyalty tion all gained.
country over the (W8-
wide. country O3)
(S6-O3) to be Always 9 Accumul 9 Be
readily high . ate . differen
availabl demand foreign t with
e. (W6- of investme the
04) service nts so competi
Custome 7 Branding 7 Compa company tors in
rs . gets . nies will have the
increasin recogniti must bigger market
g on and hire network and
knowled becomes speciali of invest
ge about known sts and customer more
how to the knowle to use with the
internet consume dgeable the custome
works rs. (S7- employ service r’s
O9) ees to to satisfact
support commun ion as
the icate. they
technica (S9-O1) grew
l issues their
that knowle
costume dge on
r may using
complai internet.
n. (W7- (W9-
O9) O7)
Internet 8 Use 8 Payoff Similar 1 Encoura 1 Change
and . company . compan service 0 ging the 0 and
commun 's y's but . customer . release
 38

different to more of tor's . advance . compan

offer in recomme good launchin integrati y's debt
the nd a advertis g of on on into
market friend or ement unique opening service
give to advertisi new and
positive encoura ng offices change
feedback ge campaig and of
can have people's n branches technol
an percepti . (S2-T3) ogies to
impact on to payoff
on the PLDT gradatio
growth so there nal.
of the will be (W2-
business increase T9)
through of Competi 3 As 3 Involve
increase custome tor's . PLDT . with
d brand rs that opening owns top new
awarenes will get of new position venture
s and the offices of the of
sales. service. and Philippin technol
(S10- (W10- branches es they ogies to
O6) O1) can buy be
company updated
S-T W-T and with
Threats Strategies Strategies competit rapid
Competi 1 Since 1 Improv ors to changes
tors with . PLDT is . e with merging. . (W3-
same a service (S3-T6) T8)
service diversifi connect Slowdo 4 Discover 4 Provide
ed ion to wn in . wireless . better
business meet economi phones services
among custome c that will and
telecom r activity conform respond
domain demand to the s
this can . (W1- changes immedi
be used T10) of ately to
to technolo custome
correspo gies and rs
nd rapid way of complai
change providin nts or
and g reports
upgradin service. so that
g of (S4-T9) they
systems. will not
(S1-T8) change
Competi 2 Provide 2 Turn their
 39

provide brand not

rs. (W4- and switch
T7) products. to rival
Competi 5 Plot 5 Merge (S7-T5) telecom
tor's . creative . with municat
stronger marketin other ion
brand g compan compan
names in strategie ies that y. (W7-
the s to be will T4)
market differ help to Rapid 8 Use 8 Take
from secure a change . national . care of
competit better and coverage compan
ors connect upgrade of the y's
offering ion for of company liability
same the systems to and
service. better improve obligati
(S5-T1) subscrip service ons then
tion of availabili open
the ty. (S8- new
consum T7) offices
er. (W5- to pay
T6) off debt
Merge 6 Produce 6 Create a graduall
and . more . good y. (W8-
consolid numbers relation T3)
ations of of ship Changes 9 Use 9 Merge
the products with of . foreign . with
competit that will compan technolo investme competi
ors satisfy ies to gies and nt to take tors
customer dissolve way of risk of with the
s competi providin the same
demand. tion g service economy service
(S6-T10) with 's to offer
known downtur and
brand. n. (S9- launch
(W6- T4) unique
T5) campai
Service 7 Employ 7 Replace gn.
availabil . industry . or (W9-
ity specialist repair T2)
s to damage Custome 1 Sales 1 Make
know cable r's 0 team 0 good
how to lines so demands . should . impress
compete that create a ions to
with custome long- the
stronger rs will lasting custome
 40

impact rs to be Diversificatio
on the differen n
customer t in Conglomerate
that lead some Diversificatio
to repeat ways to n - X 1
custom, the Horizontal
referrals competi Diversificatio
and tors n - X 1
increase offering Joint Venture - 0
the same
Retrenchment 0
brand’s services
reputatio . (W10- Divestiture X 1
n by T1) Liquidation X 1
word of
mouth.
(S10-T2) This table illustrates the
composition of the Matrix analysis
This table sums up the SWOT summary and its result. Out of 13
Analysis for easier comparison and alternative strategies, Horizontal
analysis of the strategies. This can help Integration, Market Penetration, Market
out the management in building up the Development and Product Development
company with the aim of achieving the have accumulated (3). Market
goals. Penetration and Product Development

Summary Matrix Analysis strategies shall undergo the QSPM test

with the intention of determining the
SP GR CO
better strategy that should be the focus
Alternative A AN UN
Strategies IE CE D T of the management plan. PLDT needs to
Forward pursue an aggressive strategy aimed at
Integration X X 2
Backward further penetration of the market and
Integration X X 2 development of new product.
Horizontal
Integration X X X 3
Market
Penetration X X X 3
Market
Development X X X 3
Product
Development X X X 3
Concentric - X 1
 41

CHAPTER 5 4 0 3 0
One of the top . . . .
DECISION position in the 0. 0 1 0 1
Philippines 04 0 6 0 2
Quantitative Strategic 3 0 4 0
. . . .
Planning Matrix (QSPM) is a One of the provider 0. 0 1 0 2
sophisticated management approach for of wireless phones 05 0 5 0 0
4 0 3 0
evaluating possible strategies. It offers . . . .
an articulate method for comparing Has creative 0. 0 2 0 2
marketing strategies 07 0 8 0 1
practical alternative actions that uses the 3 0 4 0
input from the first phase to the last . . . .
Has a wide range of 0. 0 1 0 2
phase. It is also where the best tactic products 05 0 5 0 0
could be selected. 3 0 4 0
. . . .
Alternative Strategies: 0. 0 1 0 2
Industry Specialists 05 0 5 0 0
1. Market Penetration 4 0 3 0
. . . .
2. Product Development 0. 0 1 0 1
National coverage 04 0 6 0 2
QUANTITATIVE STRATEGIC 3 0 4 0
PLANNING MATRIX FOR PLDT . . . .
Foreign 0. 0 1 0 1
Strategic Alternatives investments 04 0 2 0 6
Ma Pro 4 0 3 0
W rke duct . . . .
Critical Success ei t Dev 0. 0 2 0 1
Factors g Pen elop Strong sales team 05 0 0 0 5
ht etra men Weaknesses
tion t 1 0 2 0
T T . . . .
A A A A 0. 0 0 0 1
Strengths S S S S Slow connection 06 0 6 0 2
3 0 4 0 Half of the 2 0 1 0
. . . . company's total . . . .
Diversified 0. 0 2 0 2 debt are coverage 0. 0 0 0 0
business operations 07 0 1 0 8 by US dollars 04 0 8 0 4
3 0 4 0 1 0 2 0
. . . . . . . .
Advanced 0. 0 1 0 2 Venture for new 0. 0 0 0 1
integrated network 06 0 8 0 4 technologies 06 0 6 0 2
 42

2 0 2 0 online frequently 0 2 0 2
. . . . 4 0 3 0
0. 0 0 0 0 Similar service on . . . .
Slow service 04 0 8 0 8 the market are not 0. 0 1 0 1
2 0 1 0 as reliable 04 0 6 0 2
. . . . Loyal and 4 0 4 0
0. 0 0 0 0 increasing numbers . . . .
Low signal strength 04 0 8 0 4 of customers 0. 0 1 0 1
2 0 1 0 countrywide 04 0 6 0 6
. . . . 4 0 3 0
0. 0 1 0 0 . . . .
Intense competition 05 0 0 0 5 Increasing 0. 0 2 0 1
1 0 2 0 consumer interest 05 0 0 0 5
. . . . 3 0 4 0
Corroded cable 0. 0 0 0 0 . . . .
lines 04 0 4 0 8 Decrease in 0. 0 1 0 1
2 0 1 0 competition 04 0 2 0 6
. . . . 3 0 4 0
Company's liability 0. 0 0 0 0 . . . .
and obligations 04 0 8 0 4 Company and 0. 0 1 0 1
2 0 2 0 network expansion 04 0 2 0 6
Increase numbers . . . . Customers 4 0 3 0
of competitors in 0. 0 1 0 1 increasing . . . .
the market 05 0 0 0 0 knowledge about 0. 0 2 0 1
2 0 1 0 how internet works 05 0 0 0 5
. . . . 3 0 4 0
0. 0 1 0 0 Internet and . . . .
Public perception 06 0 2 0 6 communication as a 0. 0 2 0 3
2 2 marketing tool 08 0 4 0 2
. . 3 0 4 0
1. 5 6 . . . .
SUBTOTAL 00 6 1 Always high 0. 0 1 0 1
demand of service 04 0 2 0 6
Ma Pro 3 0 4 0
W rke duct Similar service but . . . .
Critical Success ei t Dev different offer in the 0. 0 1 0 2
Factors g Pen elop market 05 0 5 0 0
ht etra men Threats
tion t 2 0 1 0
T T . . . .
A A A A Competitors with 0. 0 0 0 0
Opportunities S S S S same service 04 0 8 0 4
Increasing of 0. 4 0 4 0 Competitor's 0. 3 0 2 0
people who 08 . . . . launching of unique 08 . . . .
communicate 0 3 0 3 advertising 0 2 0 1
 43

campaign 0 4 0 6 From the previous phase, two

Competitor's 2 0 3 0 strategies were chosen based on matrices
opening of new . . . .
offices and 0. 0 0 0 0 used. These strategies are: Market
branches 03 0 6 0 9 Penetration and Product Development.
2 0 1 0
. . . . In the tables of QSPM showcasing the
Slowdown in 0. 0 0 0 0 strengths, weaknesses, opportunities and
economic activity 03 0 6 0 3
2 0 1 0 threats, the two strategies were rated
Competitor's . . . . according to their attractiveness in
stronger brand 0. 0 1 0 0
names in the market 05 0 0 0 5 relation to the aforementioned. The first
1 0 3 0 table shows the strengths and
Merge and . . . .
consolidations of 0. 0 0 0 2 weaknesses of the strategies and it has
the competitors 07 0 7 0 1 garnered a sum total attractiveness score
2 0 3 0
of 2.56 and 2.61. The second table
. . . .
0. 0 0 0 1 illustrates the opportunities and threats
Service availability 04 0 8 0 2
of the strategies resulting to 2.73 and
2 0 3 0
. . . . 2.94. Overall, the sum total
Rapid change and 0. 0 0 0 1
attractiveness score of Market
upgrade of systems 04 0 8 0 2
Changes of 1 0 2 0 Penetration is 5.29 versus the sum total
technologies and . . . . attractiveness score of Product
way of providing 0. 0 0 0 1
service 05 0 5 0 0 Development which is 5.55. The
2 0 2 0 analysis point out that the Product
. . . .
Customer's 0. 0 1 0 1 Development is the best option and the
demands 06 0 2 0 2 focal point of the strategic management
2 2
. . plan of PLDT.
1. 7 9
SUBTOTAL 00 3 4
5 5
SUM TOTAL
. .
ATTRACTIVENE
2 5
SS SCORE
9 5
Table 5.1 Quantitative Strategic
Planning Matrix (QSPM)
 44

products and the services that they

CHAPTER 6 provide.

CONCLUSIONS AND Recommendation

RECOMMENDATIONS
Recommendations are proposals
This chapter includes the that the company can look into and
conclusion and recommendations of the utilize. It is in accordance with
researchers for the entire conclusion of company’s best interest and profit
the strategic plan for the optimization maximization.
and betterment of the company.
 Evaluate and improve company’s
current customer service.
Conclusion
 Expansion or introduction of new
Subsequent to the planning and
products.
analyzing the possible choices and
 Logistics improvement
alternatives that has been derived from
earlier researches, the researchers  New Technology Introduction
conclude that the company is still prone
to weaknesses and threats. The strengths
can also be fortified together with the
opportunities. After the QSPM, the
product development was chosen as the
best option for the company. Product
development appeared a better option
because people are always look for
change and innovation. In order to gain
more customers, the company should
prepare new and attractive products.

In order to continue and secure their

market position, PLDT would need to
make the necessary means to make their
customers always satisfied with their
Bibliography
 BIBLIOGRAPHY

Electronic Sources
PLDT, 2017, PLDT’s Business
Retrieve from: [Link]
Pefindo Credit Rating Agency, 2018, Telecommunication Industry
Retrieved from: [Link]
PLDT, 2018 PLDT Inc. and subsidiaries
Retrieved from: [Link]
%[Link]
NetMBA, Business Knowledge Center, 2010, BGC Growth-Share Matrix
Retrieved from: [Link]
PLDT Inc., 2018, Annual Report
Retrieve from: [Link]
Appendices