Strategic management plan for Roxas Holdings Incorporated / Maria Theresa G. Abrio, Hera Mae D. Bautista, Cheery Ann Q. Maala, Carla Camille Q. Miguel, Adoresa V. Mojica.

Thesis (M.A)--Pamantasan ng Lungsod ng Maynila, 2021.

A strategic management paper presented to the Faculty of the PLM Business School--Graduate Program in partial fulfillment of the requirements for the degree Master in Business Administration.

Roxas Holdings, Incorporation (RHI; PSEi: ROX) is a diversified holdings and Investment Company engaged in the business of manufacturing sugar and allied products. Through the years RHI became an integrated sugar company that has expanded its business interests to include bioethanol and power co-generation. RHI is also known to be the first mover in the area of agri-business in the Philippines. The company operates through its subsidiaries namely, Central Azucarera Don Pedro Inc. (CADPI), Central Azucarera de La Carlota Inc. (CACI), San Carlos Bioenergy Inc. (SCBI), Roxol Bioenergy Inc. (ROX) and Agri-business Development Corp. (ADC).

The unforeseen catastrophe of Taal volcano eruption and the declaration of enhanced community quarantine due to the global pandemic cripple the operation of RHI sugar and ethanol production that resulted in millions of peso net losses. This paper aims to develop the best and applicable strategies for the company in utilization of the strategic management tools and techniques. In order to accomplish this paper, the researchers used all secondary data available on the web, journals, books and news articles.

This paper identifies the marketplace opportunities and threats in the external environment and decides how to use the available resources, capabilities, and core competencies in the company's internal environment to pursue the opportunities and overcome the threats.

The researchers evaluate the industry of Roxas Holdings Inc.'s subsidiaries and understand how the company develops its strategic intents through analysis of intemal and external business environments. The researchers analyze the strategic management process that the company used to achieve strategic competitiveness and earn above average return.

The researchers discuss and present the strategy formulation that includes business and functional level strategies.

The underutilized capacity of Central Azucarera de ILa Carlota made the researchers come up with the strategy of increasing the efficiency of the milling capacity. The researchers presented and considered two possible strategies for CACI, first the efficiency increase of the milling capacity which scores 6.81, and the second strategy suggests product development which scores 5.11. The chosen strategy targets at least 20% increase in the capacity utilization and at least 10% increase in market share by 2025.

The declaration of community quarantine and soaring price of molasses caused drawbacks in the operation of the largest bioethanol producer in the Philippines. With 40 million liters production capacity per year, San Carlos Bioenergy Inc.'s production declined from 30 million to 16 million liters in 2020. Considering both internal and external factors stated in the QSPM, two potential strategies were presented, first the utilization of sweet sorghum as an available feedstock which scores 7.02 and the international importation of feedstock with the sum total score of 5.06. The selected strategy aims to maximize the 40 million liters yield capacity with a 20% annual increase in production by 2025.

The insufficient supply of bagasse caused by the low production of sugar and ethanol affects the operation of the SCBI's power co-generation. Development and utilization of alternative feedstock were suggested in this segment showing a total score of 7.38 in the QSPM. This strategy aims to reach the maximum capacity production of 8MW by 2025.

Contract growing and Farm support were the strategies presented for RHI Agri- business venture with a total score of5.70 in the OSPM. The advocacy of RHI-ADC is to assist planters in addressing major concerns in farming and help them to become productive through farm mechanization. The strategies presented aim to attract more partner-planters with related crop variety in support for both planters and RHI SBUS.

In order to achieve these strategies and a net profit in 5 years, RHI will decrease its cost of sales by 65% which will result in an increase in operating profít by at least 2% annually. The company will also increase accounts receivables turnover ratio by at least 6 times by year 2023 due to the strict collection policy and flexible but timely collection process will be implemented. Lastly, the company will obtain a positive working capital by 2025 due to improvement on inventory management and paying off some of the company's existing debt for the next 5 years.