A strategic management paper for Infobahn Communications, Inc. / Jovilyn D. De Lara.

Thesis (M.A)--Pamantasan ng Lungsod ng Maynila, 2020.

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

This strategic management paper is one of the Philippine's Premier IT company specializing in Systems Integration, IT & Business Outsourcing, and e-Business & e-Government Consulting which is Infobahn Communications Inc, The company is located at 2nd Floor Fil-American Building 923 Aurora Boulevard Cubao, Quezon City.
This strategic management paper was assessed the Infobahn's current vision and mission statement then recommended a revised mission and vision according to the evaluation indicators in David's book. The study was also conducted using an exploratory research with the support of primary and secondary data under quantitative and qualitative analysis.
The study assessed its external environment using economic forces, political or legal forces, technological forces and social cultural forces. Competitive forces were also included to evaluate the key competitors of Infobahn which were Pronet Systems Integrated Network Solution, Inc. and Accent Micro Technologies Inc. that was according to the interview conducted in the management of Infobahn. The researcher compared the financial performance including the market share of the three companies for the year 2018. Then the study was als0 analyzed with the helped of Michael Porters Five Forces Model such as rivalry among competitors, potential entry of new competitors, potential development of substitute products, bargaining power of supplier and bargaining power of consumers. The researcher used Competitive Profile Matrix (CPM) as a tool that compares the firm and its rivals and reveals their relative strengths and weaknesses. Garnering a total score of 3.22, INFOBAHN ranks second from AMTI with a total score of 3.53, and PRONET with 2.25. Infobahn major strengths give the company to be competitive among the two competitors. And based on the results of External Factor Evaluation (EFE) Matrix that allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information. Infobahn got a weighted average of 3.36 which is above average meaning that the company's strategies are fitted to meet the opportunities against threats.
The study assessed its internal environment by auditing the Infobahn's management, operations, marketing, human resource, finance, research and development and management information system. For the management, the company was assessing through the helped of Weisbord's Six Box Model. For the operations, there was a supply chain provided from the company to further understand their operations process. Products and services were discussed to understand what the company can offer. For the marketing, it was assessed by the activities the company is doing in the marketing aspect. Marketing effort in generating sales were computed for the year 2014 - 2018 and Infobahn's internet marketing presence. For the human resource was performed the natural duties of the department but in Infobahn they maintain a good relationship to all their employees as well as having approachable executives that listens to the staffs ideas and suggestions that will help the company for having a better result to its goals. For the finance, the horizontal and vertical analysis of Infobahn's statement of financial position and statement of income were presented. As well as the financial ratios such as liquidity ratio, solvency ratio, activity ratio and profitability ratio to assessed furthermore the financial performance of Infobahn. For research and development, Infobahn don't have yet this one. For management information system, were handled by their technical personnel in provisioning, implementing, configuring, installing and commissioning of the company's product and services. Value chain analysis was presented to elaborate more the primary activities and support activities of the company. And based on the results of Internal Factor Evaluation (IFE) Matrix that summarizes and evaluates the major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas. Infobahn got a weighted average of 2.57 which is internally strong and can offset its weaknesses.
The study used five matrices for the strategy formulation such as SWOT- TOWS matrix, SPACE matrix, BCG matrix, IE matrix and grand strategy matrix. In the SWOT-TOWS matrix the strengths, weaknesses, opportunities and threats of the company were evaluated deeper. In the SPACE matrix, the summarized given values given to the variables of each dimension and dividing by the number of variables included in the respective dimension the plotted scores shows the coordinates of 2.50 and 2.50 for FP, IP, SP, and CP which falls under Quadrant I. In the BCG matrix, it was indicated that Infobahn falls in the question mark quadrant which illustrated that the company was in medium industry sales growth rate but lower relative market share position in the industry. In the IE matrix, Infobahn falls into cell lV that can be managed best with Grow and Build strategy; Market Development should be implemented as commended actions. In the grand strategy matrix, two evaluative dimensions of Infobahn falls under Quadrant I of the Matrix which shows that the company should pursue market development.
Based on the result of QSPM, the most attractive strategy for Infobahn was Market Development with the weighted average of 5.22. The main strategic objective of Infobahn Communications is to be a transformer from different kinds of organizations either in the private sector or in the public sector to become competitive in the market across the country. In order to attain this, Infobahn shall employ Market Development strategy that aims to get ahead of the competition.
These strategies will enable the company to be competitive with the intense competition in the industry. With proposed strategy, this will give Infobahn an increase of 10% on Sales Income per year for the next five years.