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San Miguel Corporation and A. Soriano Corporation
Background of the Study:

In the early 1980’s the San Miguel Corporation (SMC) and A. Soriano Corporation (ANSCOR) Group of Companies, under the leadership of Andres Soriano, Jr. addressed a long felt need for and effective formal planning system for the two companies.

Summary / Abstract:

More than a decade ago, the ANSCOR Group and SMC spent several years developing and strengthening their budgeting system in order to have a better internal focus on where they going over the short-term. Their next evolutionary step was the development and implementation of a long-range planning process. This helped them to better understand the resource requirements and constraint of the future. While these systems definite assisted them in planning for the future, the rapidly changing environment and the increase competition led them to search for still other ways of further improving their management approach.

This article will discuss various aspect of the strategic planning approach adopted by the ANSCOR Group and SMC help them cope with the future. First, I shall discuss briefly the basic aspect of the approach which can be described in terms of four important dimensions. One dimension pertains to the determination of the companies’ future direction through hierarchy strategies under this it is composed of three levels namely, corporate level, Business Family level and Business Element level. A second dimension is the delineation of the major phase of the strategic planning process, which composed of three major phases, namely, Objective Settings Phase, Strategic Programming and Budgeting. A third characteristic is the creation of the strategic structure through which competitive strategies can be developed. A final dimension is the identification of set interactive and iterative steps that the planning process

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