A strategic management paper for Susumi Philippine Logistics Inc./ Mary Joan E. Soriano.

Thesis (M.A) -- Pamantasan ng Lungsod ng Maynila, 2023.

A strategic management paper presented to the faculty of PLM Business School - Graduate Program in partial fulfillment of the requirements in Strategic Management for the Degree of Master in Business Administration

Includes appendices and references.

The logistics and warehousing industry in the Philippines is a thriving sector,
driven by the country's strategic geographic location in the Asia-Pacific region, its
robust transportation infrastructure, and its highly skilled work force. The Philippines
is a prime location for logistics and warehousing operations, offering cost-effective
solutions for businesses looking to expand their reach into the region. The country has
a well-developed transportation infrastructure, with an extensive network of roads,
airports, and ports. This infrastructure provides businesses with access to international
shipping routes, allowing them to transport goods quickly and efficiently within the
region and beyond.

The Philippines also has a highly skilled workforce, with many workers
trained in logistics, warehousing, and transportation. This enables businesses to access
a range of services, from storage and distribution to inventory management and
supply chain optimization. In addition, the country's relatively low labor costs mean
that businesses can take advantage of cost savings when outsourcing their logistics
and warehousing operations.

In the preparation of this Strategic Management Paper, the identified
competitors of Susumi Philippine Logistics Inc. (SPLI) according to the management
of the company are A2Z Logistics Inc. and Inventory Management Inc. The two
competitors were chosen based on the scope of services being offered and size of
business operations. The Porter's Five Forces, which include fierce competition, risks
from new entrants, supplier bargaining power, the threat of replacements, and buyer
negotiating power, were used to analyse the logistics and brokerage market. These
five forces were closely examined in connection to the sector and the businesses that
make up that sector. These forces' effects were classified as having a high, moderate,
or low impact.

The internal and external aspects affecting SPLI's business operations were
examined to obtain a thorough and vivid image of the company's current state, both
financially and operationally. The following internal analytical aspects were
considered for this paper: management, finance, operations, operations, management
information system, and research and development. While the economic, competitive,
legal, political, and governmental variables that were considered during the external
study including the impact of technological, social, cultural, and demographic
influences.

In order to determine the optimal strategy, the company should use in light of
the information presented in this paper, the findings and assessment of the internal
and external variables of the industry with regard to the chosen company were further
analyzed using the 5 matrices particularly the Threats, Opportunities, Weaknesses and
Strengths (TOWS) Matrix, Strategic Position and Action Evaluation (SPACE) Matrix,
Internal/External Matrix, Grand Strategy Matrix and Boston Consulting Group (BCG)
Matrix. These matrices were developed to examine company and service segment
performance, industry competitiveness, and potential growth possibilities. The
top three strategies that were chosen according to the results of the matrices were the
following:
1. Open a satellite office/warehouse in Laguna and Quezon PEZA zones to
cater for possible big clients in that PEZA zone.
2. Establishment of an affiliate company to handle non-PEZA warehousing
and logistics needs.
3. Open a sister company for the trucking business which will cater to all
trucking and delivery needs of SPLL.

The relationship and impact of these three strategies on the identified
Strengths, Weaknesses, Opportunities, and Threats were thoroughly investigated and
rated using the Quantitative Strategic Planning Matrix (QSPM). According to the
QSPM results, the winning approach was determined to be opening a satellite
office/warehouse in the PEZA zones of Laguna and Quezon to serve potential large
clients in those PEZA zones.

The strategy map was designed to be in line with the selected strategy and to
have a logical relationship between financial, customer, internal, learning and growth.
and community and social responsibility. The map will assist the business in
explaining how value is anticipated to be developed throughout the entire
organization. The Financial Projections were created by adding the financial impact of
the selected strategy to the company's three-year financial statement. This will verify
whether the identified financial aim will be achieved. Based on the financial
projections, Net income will have an average increase of 108% for the 3-year period,.

Finally, the action plans were designed to contain integrated cross-functional
programs that will guarantee the strategy's effective deployment. The primary
functional teams or groups within the organization who will collaborate to ensure the
success of the selected strategy and to be able to achieve the specified objectives
created action plans in direct cooperation with one another.