A strategic management paper for Phil Ecology System Corp. / Maria Christina D. Olisa.

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

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.

This strategic management analysis centers on Phil Ecology Systems Corp, a major player in landfill operations in Metro Manila. The company offers a range of services to its clients, including garbage collection and transportation, barging, landfill operations, and designing and constructing sanitary landfills. The aim of this paper is to provide recommendations for Phileco's preparation for the upcoming three years, with a specific focus on expanding its market presence in waste collection and transportation. It is expected that by implementing these initiatives, the company will achieve a net income of 10% and a sales increase of about 280% starting in 2024.

Utilizing Porter's Five Forces Model, the researcher conducted for this study an analysis of the industry of Solid Waste Management as well as the competitive environment. Due in large part to the high barrier to entry, the Solid Waste Management industry has historically been dominated by a small number of important firms. The establishment of a facility or operation for waste management demands a large financial expenditure, which may serve as a barrier to entry for businesses that are on the smaller side. In addition, waste management is a highly regulated sector, which means that complying with environmental standards and acquiring the appropriate permissions may be time-consuming and expensive.

Another problem is that the management of solid waste is often handled by local governments or municipal authorities, which might make it difficult for private enterprises to get into the market. It may be difficult for new entrants into the market if the local authorities have long-term contracts with the waste management businesses already operating in the market that result as an oligopolistic market structure.

It's possible that Phileco made the decision to concentrate on landfill operations rather than the hauling sector as a result of a number of different considerations. To begin, the operations of landfills may give a consistent source of cash in addition to long-term contracts with local government units, which guarantees a solid revenue stream for the organization. On the other hand, the hauling business may have a higher level of competition and may be more susceptible to shifts in demand as well as price Swings. In addition, the operations of a landfill may need a greater degree of experience and specialization in fields such as environmental management and engineering, which Phileco may have grown into a core competence over the course of its history. On the other side, hauling operations may demand more operational and logistical skills, but Phileco can access the market in the hauling business thanks to their financial strength and capacity, together with the assistance of Phileco's Chairman of the board Dr. Reghis M Romero. Although Phileco has been active in hauling for the first time since the City of Manila won the contract for three districts, the company nonetheless incurred enormous losses in the year 2019 as a direct consequence of its ineffective management.

In the External Factor Evaluation (EFE) Matrix, Phileco was given a total weighted score of 2.55, which was the result of these factors. This indicates that Phileco's existing business strategy is poorly conceived and must be updated in order to take advantage of the possibilities presented by the macro external environment.

It was placed second utilizing the Competitive Profile Matrix in terms of its internal capabilities in comparison to those of its immediate rivals. It received a total weighted score of 3.00, and this score was based on the key success criteria found in the Solid Waste Management sector. The evaluation is further validated by the fact that a total weighted score of 2.57 was achieved in the Internal Factors Evaluation (IFE) matrix, this indicates that it has a strong position in the market and excellent financial
Performance in comparison to its competitors. On the other hand, it might be put in jeopardy and could lose its strength if it does not work to increase the efficiency of its internal operations in order to compete with the growing number of private carriers in Metro Manila.