Some stories on strategic plan - common weakness is financials

Every generation needs a revolution - an entrepreneurial revolution

Makati City
November 5, 2016

Today despite eye problem, I attended a strama defense that involved 3 MBA candidates.  The first one breezed through her presentation because she is COO, an EA to her father who heads the company.  The study was about a local company making refrigeration equipment for f and  b firms.   However, despite the planned doubling of sales, the resources needed to attain the objective were not detailed.  The additional expenses and wages were missed out.

The second one which dealt with sale of Chinese trucks, mentioned the weak financial position of the company.   (The industry and the PTM was not clear.)   However he failed to address this issue at the strategy portion.   The company has huge liability, a loan payable (which was converted from advances of parent company.)

 The third one which was about a real estate company, had all the competitive analysis and external analysis all about real estate operations ie land banking, development and selling of lots and house and lot package  However the financials pertained to a construction company, (contract income (there were no inventories, contract receivable.  The competitors had these data in their FS obtained from SEC.  The sales achievement of the company was not very clear too.

More critical thinking and fs literacy needed by  MBA candidates

Why market leaders lose out to innovators?

From Josiah Go article at Inquirer Market Pulse

From Business Inquirer

Why as Cebu Pacific wrested the market share from PAL, Asias first  airline when it had the resources to launch such service, segment the market?  Or why has The Generic Pharmacy now outnumbered Mercury Drug outlets 2:1

Some answers:

1.  Company needs to protect financials.  Many see PHP spent on innovation as potential loss rather than potential profits;  (in gestation period, the new business can experience losses:

2.  Culture of complacency Success is the greatest enemy;  it breeds complacency

3.  Limited knowledge and methodology;   lack of understanding  of business model and see anything new as innovation

4.  Arrogance and pride (Pride goeth before the fall (hubris)

5.  Lack of strategic thinking

6.  Slow response to technological changes (lack of speed)

7.  Lack of idea channel (suggestion system bottoms up communication

8.  Internal inefficiency;  not process oriented lack of quality, or even squabbles that hinders the growth

9.  Lack of marketing talent in the team

10.  Inability to be a visionary to see the big picture.  While focusing now and operational efficiency, the future, the direction of the company is forgotten

DOTR, DPWH BCDA projects can spur further economic development

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
November 3, 2016

From Inquirer

The four secretaries:  Mark Villar of DPWH, Arthur Tugade of Department of Transportation, Sec. Pernia of NEDA, and BCDA chief Dizon conducted a press con a Malacanang that highlighted the DU30 effort to ease transportation woes (decongest MM) speed up mobility throughout the nation

Some of the projects mentioned: (approved by NEDA board all ready)

DPWH

1.  Linking NLEX and SLEX - this will help decongest EDSA
2.   Viaduct in Ateneo  to ease Katipunan traffic
3.  Bridge linking Cebu and Iloilo

DOTR
1.  BRT in EDSA  (P37.8 billion project)
2.  Fast train between Clark and Manila
3.  600 km train line up to Sorsogon
4.   The Cargo train line from Clark to Subic

BCDA
1.  Development of Clark into a world class international airport by 2018
2.  Green City in Clark
3.  Corroboration with DOTr with regards to BRT and the Clark Subic cargo train project.

They said they have been keeping quiet on these projects as medium and long term solution to the traffic problem,  MM will be decongested and progress will be relocated to CL (Region 3) as  the cargo hub that connects Clark Intl Airport and Subic port will mean cargo will be flowing between Clark and Subic.  Thus Central and Northern Luzon will have their own logistic hub instead of going to Manila Port