A strategic management paper for Ayala Land, Inc. / Lorna Fe M. Mancera.

A strategic management paper presented to the faculty of the PLMM Business School—Graduate Program in partial fulfillment of the requirements in Strategic Management for the degree Master in Business Administration.

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

Executive summary:


The study is focused on the real estate industry in the Philippines. Various matrices are applied to come up with business strategies that the company may use to keep afloat in the market and put competitors at bay. With the strategies in place out of two years of historical data, the paper forecasts the company’s improvement and growth in the next three years.
Ayala Land, Inc., as the subject of the paper has been a publicly listed company since 1991 under the property sector with segment that can be grouped to property, construction, hotel and leisure, and services. Through the years the company garnered awards, while competing for buyers primarily based on strong brand presence.
Further background of the company was discussed in this paper. The researcher has also delineated the scope and constraints of the paper, and dissected mission and vision of the company.
In addition, the researcher analyzed the company’s Porter’s Five Forces. Three competitors were identified based on significant amount of achievements during their past; and finished projects with positive online reviews from tenants, owners, and real estate professionals. They are namely, Megaworld Corporation (MEG), SM Prime Holdings, Inc. (SMPH), and Filinvest Land, Inc. (FLI), put in comparison in the competitive profile matrix.
It can be perceived through external analysis that Ayala Land is secured in its positioning with a rating of 2.90 but greatly affected by global uncertainties and macroeconomic headwinds. Despite these, Ayala Land had fared well taking advantage of positive drivers out of the Philippines remarkable 7.6% rise in the GDP. Strong local consumption, which made up more than 73.1% of the local economy and increased by 8.3% from the previous year, was the primary driver of the upturn. The nation’s BPO sales increased by 10% year over year to P32.5 billion, while abroad Filipino remittances reached P36.1 billion, a 4% increase. In contrast to the government’s aim of 1.7 million, international visitors recorded 2.6 millions arrival (ALI, 2003).
Moreover, the researcher encompasses in the paper the internal analysis of Ayala Land summarized in the IFE matrix. In the IFE matrix, ALI revealed a rating of 2.83, showing strong internal position.
Furthermore, strategy formulation is done with the aid of matrices. SWOT analysis and matching, SPACE matrix, BCG, Internal External matrix, Grand Strategy matrix, tally of matrices and QSPM are constructed to arrive at proposed business strategy. Consequently, market penetration is the recommended strategy. Strategic objectives, namely: strategic, and financial are also identified.
Finally, the core of this paper is the implementation and action plans for Ayala Land to be executed per department in making market penetration with strategy map for visual ais, financial projections, and the balanced scorecard.