1

MARIVELES NATIONAL HIGH SCHOOL CAMAYA CAMPUS

ZONE 6 CAMAYA MARIVELES, BATAAN

ACCOUNTANCY, BUSINESS AND MANAGEMENT

IN PARTIAL FULFILLMENT OF THE REQUIREMENT IN STRATEGIC

MANAGEMENT

CASTILLO, LEEJON

GARCIA, JASMINE

SUSON, PAMELA

VERDERA, JEZZEL

JANUARY, 2019

2ND SEMESTER 2018-2019

 2

Table of Contents

1. Acknowledgements ……………………………………………………………. 3
I. Executive Summary …………………………………………………………… 4
II. Introduction …………………………………………………………………….. 5
A. Nature of the Business ……………………………………………………. 5
B. Corporate Culture …………………………………………………………. 5
C. Corporate Resources ……………………………………………………... 6
I. Marketing (4p’s of the business) …………………………………. 6
II. Target Market …………………………………………………….. 12
III. Human Resources ……………………………………………….. 12
a. Recruitment and Selection ………………………………….. 12
b. Safety ………………………………………………………….. 14
c. Employee Relation …………………………………………… 16
d. Compensation ………………………………………………... 16
IV. Production/Operation ……………………………………………. 24
V. MIS (Management Information System) ………………………. 25
a. Business Model
VI. Financial …………………………………………………………... 29
a. Sales 5 years back
VII. (Undercorporate) Organization Structure ……………………… 30
III. Research Design and Methodology ……………………………………….. 31
IV. Vision and Mission …………………………………………………………… 32
V. External Analysis …………………………………………………………….. 35
A. PESTLE …………………………………………………………………… 35
B. Competitor Analysis 4P’s ……………………………………………….. 37
C. Porter 5 Forces (Conclusion) …………………………………………… 39
D. Opportunities and Threats ………………………………………………. 42
VI. Internal Analysis ……………………………………………………………… 43
VII. Strategy Formulation ………………………………………………………… 45
VIII. Recommendation and Action Plan …………………………………………. 47
IX. Strategy Implementation …………………………………………………….. 51
X. Evaluation of Strategy ……………………………………………………….. 53
XI. References ……………………………………………………………………. 54
 3

Acknowledgements

First and foremost, we would like to thank our almighty God for the wisdom he

bestowed upon the strength; determination and good health in order to finish the

project.

We express deep sense of gratitude to Mrs. Charina C. Dizon for her constant

supervision and for imparting her knowledge and her expertise in this project.

We would like to thank all the individuals of Boast Inc. who participated and

generously gave their time to share the information for the purpose of the project

especially to Mr. Joaquin C. Lim which is the Assistant General Manager.

Lastly, we would also like to thank our parents, friends, and classmates for the

encouragement and motivation which helped us in the completion of the paper.

 4

Executive Summary

Boast Inc. is one of the leading shoe manufacturing companies in Freeport Area

of Bataan and is affiliated with LUENTHAI group of companies. It is a family-owned

corporation that started in the year 2012 and still existing in the shoe manufacturing

industry until now. Boast Inc. caters and produces different kinds of safety shoes from

several famous brands abroad like ELTEN, BIG, SKECHERS, BAAK and PUMA. This

safety shoes or a steel-toe boot is a durable boot or shoe that has a protective

reinforcement in the toe which protects the foot from falling objects or compression,

usually combined with a mid-sole plate to protect against punctures from below.

An evaluation of the company’s internal strengths and weaknesses and

external opportunities and threats served as the foundation for this strategic analysis.

The plan focuses on the company’s growth strategy, suggesting ways in which it can

build on existing customer relationships, and on the development of new products

and/or services targeted to specific customer niches.

 5

Introduction

A. Nature of the Business

Boast Inc. is a shoe manufacturing company located in the 2nd Avenue,

Freeport Area of Bataan, Mariveles, Bataan that focuses on the production of

safety shoes using labour, raw materials from different famous brands abroad,

and equipment resulting in a finished goods. The product of focus for this

business is safety shoes which protect the foot from falling objects or

compression, usually combined with a mid-sole plate to protect against

punctures from below.

Although traditionally made of steel, the reinforcement can also be made

of a composite material, a plastic such as thermoplastic polyurethane (TPU) or

even aluminum. Steel-toe boots are important in the construction industry and

in many industrial settings. Occupational safety and health legislation or

insurance requirements may require the use of such boots in some settings,

and may mandate certification of such boots and the display of such certification

directly on the boots. The markings on the boot label will indicate the national

or international standards that the boot was intended to meet, and identify the

level of protection offered for impact, penetration, electric shock, and chemical

hazards. Safety shoes are effective in keeping the feet of industrial workers

safe from sharp and heavy objects while working in factories. Footwear for use

in chemical processing or semiconductor manufacturing may also be rated to

dissipate static electricity while still protecting the wearer from electric shock.
 6

B. Corporate Culture

Boast Inc. is committed and focused in consistently meeting the

customer requirements through increasing consumer satisfaction with the

adherence to their Quality Management System aligned with the corporation’s

purpose and strategic direction. Quality Management System is expressed as

the organizational goals, policies, processes, documented information and

resources needed to implement it. The corporation is always reminded by

maintaining the quality of the product to successfully accomplish customer

satisfaction. The production of the product are strictly monitored and ensured

that the employees have the skills required in the operation process.

They have an employee-friendly environment that aims to help and

provide jobs for everyone to enhance and achieve the company's ultimate goal

which is product excellence.

C. Corporate Resources

I. Marketing (4P’s of business)

Boast Inc. marketing mix (4Ps) refers to the strategies and tactics

applied to execute the marketing plan, with focus on products, place,

promotion, and price (the 4Ps). In this business case, Boast Inc. has a

marketing mix that involves safety footwear products. The company

specializes in shoes that are designed to satisfy the needs of people

engaged in any working environment. These products are marketed to

all wholesaler around the world based on the specifics of Boast Inc.’

corporate mission and vision statements. Established in 2012, the

 7

company’s 4Ps evolve according to the dynamics of the global consumer

goods industry.

1. Price

Two strategies are use in the pricing of the finished products

catered from different known brand which are the value-based pricing

strategy and premium pricing strategy.

In using the value-based pricing strategy, Boast Inc. considers

client/customer perception about the value of the products that will

be produced. In the context of the marketing mix, this value is used

to determine the maximum prices that consumers are willing to pay

for the company’s sports safety shoes. In relation, the premium

pricing strategy involves high prices, based on a premium branding

strategy that establishes by Boast Inc. products from elten, big,

skechers, baak and puma as higher in quality and value than

competing products.

In 2018, the business successfully increased its selling prices and

generated higher sales and revenues. Based on the

PESTEL/PESTLE analysis of Boast Inc., such trend is linked to the

sociocultural and economic changes in the industry environment.

The business adjusts its price ranges according to such changes.

Boast Inc. successfully uses its pricing strategies to maximize its

profits while emphasizing high value in promoting its manufactured

product from famous brands.

 8

2. Product

Safety footwear/shoes now come in many styles, including

sneakers and clogs. Some are quite formal, for supervising

engineers who must visit sites where protective footwear is

mandatory. Some brands of steel-toe footwear have become

fashionable within subcultures such as skinhead, punk, and

rivethead. While brands that were previously renowned within the

fashion industry have also diversified into the safety footwear market,

industrial brands like Caterpillar, Rock Fall and JCB have also issued

licenses to produce safety footwear.

Wearing the correct footwear is very essential when employed in

jobs that require a certain amount of safety. Protection of the feet can

reduce and prevent any kind of injury that could take place. Safety

shoes and footwear is very important and creates a safer and better

working environment. Such shoes should be durable and reliable and

should keep the feet protected from any harm or accidents. Many

manufacturers all over the world have specially designed and created

shoes that not only provide protection but also that are affordable and

comfortable to wear and one of that manufacturer is the Boast Inc.

which produces different varieties of safety footwear for different job

roles.
 9

Safety-toed shoes

This is a very common type of safety footwear that is found with

a special covering around the toe area that is capped with a special

material to keep the toes safe from hazardous accidents and

mishaps. People who work in factories and mills and places where

heavy industrial materials and equipment are being handled every

day usually wear these. Foot accidents can take place at any time

hence it is very essential for employees to wear proper safety toed

shoes.

Steel insole shoes

Using steel inserts to help in keeping the foot protected from

common joint problems specially creates these shoes. Those people,

who are employed to ride bikes, push pedals and drive heavy trucks

would suffer from such foot issues. These shoes help in keeping the

foot stabilized and prevents it from shifting and moving around too

much, in turn preventing joint and bone problems. It is also one of the

most comfortable safety footwear.

Metal Instep footwear

Safety footwear ensures that the feet are kept protected from all

outward injuries, accidents, and harmful objects. This type of safety

footwear has been designed specially to protect and safeguard the

feet from sharp and pointy objects like nails, glass pieces and other

metal objects. People who work in large industrial factories that have
 10

to do with manufacture of machinery, glass objects etc. usually wear

these safety shoes. It helps preventing these sharp objects from

penetrating to the feet, causing injury or harm.

Metatarsal Shoes

These shoes are special safety shoes that have been specifically

designed and created to protect the upper part of the foot and bones.

It reduces and prevents injuries from accidents and mishaps that can

occur due to heavy equipment falling or dropping down on the feet.

Also known as “drop hazards” these safety shoes are made to protect

the feet internally as well as externally. It also safeguards the toe area

as well. These are usually worn in construction sites or jobs that

involve lifting of heavy equipment and machines.

Electric hazard shoes

Employees that work with electricity, circuits, wiring and high

voltage machines and devices, specially wear this kind of footwear.

They are specially made with a sole that helps reduce the potential

of any employee receiving an electric shock when exposed to high

voltage circuits and electricity. Electric hazards are most common

and can cause death, hence one must ensure he or she wears these

safety shoes while on the job.

 11

3. Place

This element of the marketing mix outlines the place where the

company’s manufactured products are sold, accessed or distributed.

Boast Inc. exports its safety shoes through a large number of outlets

worldwide. The production of safety shoes is done in the 2nd Avenue,

Freeport Area of Bataan, Mariveles, Bataan and the finished product

will be then exported to wholesalers internationally.

Boast Inc. controls the distribution and sale of its manufactured

products, especially through its wholesaler like in China. However,

the company has limited control on the distribution and sale of its

products via other wholesaler outlets.

4. Promotion

This element of the marketing mix is also known as the marketing

communications mix, and involves the tactics that Boast uses to

communicate with its target markets. The company depends on the

effective promotion of its products to maintain a strong brand image,

which is one of the strengths determined in the SWOT analysis of

Boast Inc. The company uses promotional tactics to communicate

with target customers about its products, and persuade these

consumers to purchase the products. The company’s direct

marketing activities involve direct communications with organizations

engaged in working environment. In the context of the 4Ps, direct

marketing refers to direct contact with organizations for the purpose

of promoting products to the members of such organizations. In

 12

addition, Boast Inc. occasionally applies discounts and special offers

to attract more customers and generate more sales. These discounts

and offers form the company’s sales promotions tactics. Moreover,

in public relations, the company sponsors and provides financial

support to other organizations, such as community-based networks,

to promote its safety shoes.

II. Target Market

Boast Inc. covered over 15 countries and regions worldwide. They

produce quality safety shoes from various famous brands like elten, big,

skechers, baak and puma then export it internationally as the marketing

activities take place in more than one country.

In short, safety shoes produced by Boast Inc. was based on international

marketing where the performance of business activities was designed to plan,

price, promote, and direct the flow of a company’s goods and services to

consumers or users in more than one nation for a profit.

III. Human Resources

A. Recruitment and Selection

Boast Inc. required an employee with a 2 years college

experienced (Graduated at least in 2nd Year College) while staffs

must be a college graduate with the skills appropriate for the job. The

number of the employees selected is based on the needed resources

in the working place and the skills that they must have. The costs of
 13

recruitment and selection can be staggering; hiring new employees

should occur only after careful consideration and only when the

organization anticipates a long-term need for additional labor.

Estimates on the cost to replace supervisory, technical and

management employees run from 50 percent to several hundred

percent of employee salaries. Careful HR planning is considered for

the overall growth prospects of the organization and accurate

forecasting of future labor needs. Recruitment planning begins only

when other alternatives have been considered and eliminated.

The method used to find qualified applicants from inside the

organization is job posting. Boast Inc. posts jobs electronically

through organization-wide intranets or send e-mails to all employees

about the job vacancy or online recruiting. The job announcement

includes information about the position, the required qualifications

and instructions on how to apply. Company also considered hiring

individuals referred by existing employees. Organization uses a

variety of methods, depending on the nature of the job to be filled,

the time needed to properly fill the position and the size of their

recruiting budget.
 14

B. Safety

Boast Inc. is regulated with the legislation Department Order No.

198 Series of 2018 which focus on the act of strengthening

compliance with occupational safety and health standards and

providing penalties for violations thereof. Since the state must ensure

a safe and healthful workplace for all working people by affording

them full protection against all hazards in their work environment,

Boast Inc. ensure that the provisions of the Labor Code of the

Philippines, all domestic laws, and internationally-recognized

standards on occupational safety and health are being fully enforced

and complied with by the employers, and shall provide penalties for

any violation thereof.

The duties of employers, workers, and other persons; the workers

right to know where the workers shall be appropriately informed by

the employer about all types of hazards in the workplace, and be

provided access to training, education, and orientation on chemical

safety, electrical safety, mechanical safety, ergonomics, and other

hazards and risks are all enforced and focused by the Boast Inc. The

safety and health for workers in high risk establishments is conducted

regularly, not less than once a quarter, and conducted immediately

following any changes in the operations and production process.

The firm also monitors the workers’ right to refuse unsafe work

and right to personal protective equipment which is an appropriate

type as tested and approved by the DOLE based on the standards

and/or other means of verification. The usage of PPE in the

 15

establishments and sites is based on the evaluation and

recommendation of the safety officer as a result of the workplace

hazard assessment. The PPE used by the employees of Boast Inc.

is also in an appropriate size, weight, and type to specific workers

exposed to hazards from which the PPE are meant to ensure

effective projection.

They also have the safety signage and devices to warn the

workers and the public of the hazards in the workplace. The signage

and device is posted in prominent positions at strategic locations in a

language understandable to all. Safety in the use of equipment is also

monitored as all types of equipment use in the entity are in

compliance with the OSH standards set by DOLE on a safety.

The Occupational Safety and Health (OSH) Program is also

developed and implemented in a format prescribed by the DOLE and

posted in prominent places. Boast Inc. ensures that the safety and

health program is observed and enforced by the safety and health

committee which is composed of the building owner or building

administrator, secretary, and at least two safety officers who have

designated duties and responsibilities.

Boast Inc. also submits all safety and health reports to DOLE,

annual medical report (AMR), OSH committee report, employer’s

work accident/injury report (WAIR), and annual work accident/injury

exposure data report (AEDR). All employers are also jointly and

solidarily liable for compliance with occupational safety and health

 16

standards including the penalties imposed for violation thereof as

provided for in this Rules.

C. Employee Relation

By the Labor Management Committee as the one team

communication channel build inside the management of Boast Inc.,

they ensure that each worker has their representation and

participation to the management of the corporation. The

management also makes sure that each opinion of the employees is

heard in every happening, updates, and issues to ensure strong

relationship within the employee. Boast Inc. ensures employee

relation by keeping communication channels always open, asking for

the workers’ opinion by listening to their arguments and encouraging

them to stand on their ground.

D. Compensation

Boast Inc. provides the following benefits like medical,

miscellaneous allowances, parking, SSS, and Phil health. Salary of

each employee in the Boast Inc. is complying with the rules and

regulations of the labor laws like the Labor Code of the Philippines,

otherwise known as Presidential Decree No. 442 which governs all

employee-employer relations, their rights and obligations.

Payroll Salary Compensation and Benefits in the Philippines as

provided under the Labor Code of the Philippines and other relevant

laws includes at least the minimum wage per region and/or sector,
 17

holiday wage and overtime pay for work during holidays or rest days,

overtime pay when working in excess of 8 hours, service incentive

leave: 5 days of vacation per year of service, parental leaves

(Maternity, Paternity and Solo parent leaves), other Leaves, 13th

month pay, and separation pay. All of these are strictly complied by

the Boast Inc.

The Wage Rationalization Act, Republic Act No. 6727, sets the

minimum wage rates applicable per region, province and industry

sector. Minimum wage may vary depending on the number of

employees and gross-sales of an enterprise and its industry sector.

As of April 2015 the minimum wage of non-agricultural workers in

Metro Manila is PHP481 and PHP444 for agricultural workers.

Outside of Metro Manila, the minimum daily wage varies from PHP

279 to PHP 337 for non-agricultural workers, depending on the

region.

Minimum wage is based on a work week of 40 hours or 8 hours

per day. The daily 60 minute mandatory lunch break is not included

in the 8 hour work day and is not compensated. Overtime pay rates

vary depending on when the overtime work takes place: regular work

day, holiday, rest day, or night (between the hours of 10pm to 6am).

Overtime Rates includes regular work day: plus 25% of the hourly

pay rate and rest day, regular/special holiday: plus 30% of the hourly

rate on said day.

Premium pay is given on non-working days (rest days/special

holidays). There are 3 special holidays: Ninoy Aquino Day, All Saints
 18

Day, and Last Day of the Year. Premium Pay Rates includes on a

rest day or special holiday, an employee is entitled to an additional

30% of his daily basic rate, or a total of 130%, on a rest day which is

also a special holiday, an employee is entitled to an additional 50%

of his daily basic rate, or a total of 150%, and on a regular holiday

which is also an employee’s rest day, an employee is entitled to an

additional 30% of the regular holiday rate of 200%, or a total of 260%.

Note that it is only applicable to employees covered by the holiday-

pay rule.

The “no work, no pay” principle applies during special non-

working days and such other special days as may be proclaimed by

the President of the Philippines. Workers who are not required or

permitted to work on these days are, therefore, not entitled to any

compensation. This, however, is without prejudice to any voluntary

practice or CBA providing for payment of wages and benefits for

declared special days even if unworked.

The Labor Code requires the payment of an employee’s daily

basic wage for all non-working regular holidays. There are 12 regular

and 3 special non-working holidays (see above) in the Philippines.

12 regular holidays are (Republic Act No. 9849): New Year’s Day,

Maundy Thursday, and Good Friday, Araw ng Kagitingan, Labour

Day, Independence Day, National Heroes’ Day, Eidl Fitr, Eidl Adha,

Bonifacio Day, Christmas Day, and Rizal Day. If work is

accomplished on a regular holiday (up to 8 hours), an employee is

entitled to at least twice (200%) of his basic wage. If the holiday

 19

corresponds to a scheduled rest day, the employee is entitled to an

additional 30% based on his regular holiday rate of 200%, which

comes to a total of at least 260%.

In terms of absences, all covered employees in Boast Inc. shall

be entitled to holiday pay when they are on leave of absence with

pay on the workday immediately preceding the regular holiday.

Employees who are on leave of absence without pay on the day

immediately preceding a regular holiday may not be paid the required

holiday pay if they do not work on such regular holiday. Employers

grant the same percentage of the holiday pay as the benefit granted

by competent authority in the form of employee’s compensation or

social security payment whichever is higher, if the employees are not

reporting for work while on such leave benefits. Where the day

immediately preceding the holiday is a non-work day in the

establishment or the scheduled rest day of the employee, they not be

deemed to be on leave of absence on that day, in which case he/she

shall be entitled to the holiday pay if he/she worked on the day

immediately preceding the not work day or rest day.

For work done between the hours of 10pm to 6am, employees

are entitled to Night Shift Differential (NSD), which represents an

additional 10% to the regular wage for each hour of work performed.

Every employee who has rendered at least one (1) year of service

is entitled to a Service Incentive Leave (SIL) of five (5) days with pay.

SIL may be used for sick and vacation leave purposes. The unused

SIL at the end of the year can be converted into cash using the salary
 20

rate at the date of conversion. It is the employer’s prerogative to

grant additional vacation leave. The phrase “one year of service” of

the employee means service within 12 months, whether continuous

or broken, reckoned from the date the employee started working. The

period includes authorized absences unworked weekly rest days,

and paid regular holidays. Where by individual or collective

agreement, practice or policy, the period of working days is less than

12 months, said period shall be considered as one year for the

purpose of determining entitlement to the service incentive leave.

The Labor Code of the Philippines covers three different types of

parental leaves: maternity leave, paternity leave and solo-parent

leave. In maternity Leave, whether married or not, each pregnant

employee is entitled to a maternity leave benefit of 60 days for a

normal delivery or miscarriage, or 78 days for a caesarean delivery,

for up to four pregnancies. For the duration of the maternity leave,

the employee receives a fraction of his regular monthly salary from

the company which is in turn reimbursed by the SSS. It is common

for companies to give the whole regular pay and shoulder what is not

covered by the SSS. To benefit from a maternity leave, it is required

for the employee to be registered with the SSS and be employed at

the time of the expected delivery. Furthermore, the SSS must be

notified by the employer and at least three monthly contributions must

have been made to the SSS for that employee within the past year.

The maternity leave benefit being given instead of a regular wage, it

cannot be included in an employee’s 13th month wage.

 21

In paternity leave, all married male employees are entitled to a 7

day paternity leave for the delivery or miscarriage of his legitimate

spouse with whom he must live, for up to four pregnancies. The

paternity leave is at the cost of the employer and is not reimbursed

by the SSS. In Solo-Parent Leave, the Filipino labour code drew a

special leave for solo-parent employees as described in the Solo

Parents Welfare, Republic Act No. 8972. The employee must have

been working for at least a year to be entitled to a solo-parent leave,

which allows him to 7 working days of leave in a year.

Each year, a 13th month pay is given to all rank-and-file

employees. By law, this benefit must be paid before December 24th

and is mandatory. Employees who have resigned or have been

severed from the company before the payment of the 13th month pay

are still entitled to it in proportion to the length of time they worked for

during that year. The 13th month pay must be at least 1/12th of the

total basic salary of each employee earned during that calendar year.

Following the labor code of the Philippines, articles 283 and 284

state that an employee can claim separation pay if his contract is

ended under authorized causes. According to article 282 an

employee terminated for just cause (neglect of duties, fraud, crime…)

is generally not entitled to separation pay. A separation pay of ½

month pay for every year of service can be claimed under the

following authorized causes: Retrenchment of person for loss

prevention, Cessation of operation of a branch not due to serious

losses or financial difficulties, and If the employee has contracted a

 22

disease not curable within 6 months and that his presence at work

can be harmful to himself or his co-workers.

A separation pay of 1 month pay for every year of service can be

claimed under the following authorized causes: Labor-saving devices

installed by the employer, Redundancy of the employee’s services

for the company, and Impossibility to reinstate the employee to his

former position or to an equivalent position, for reasons outside of the

employer’s power.

The employer has the right to terminate the contract of an

employee following any of the above authorized causes through a

written notice to both the employee and the Department of Labor and

Employment of the Philippines at least one month before the contract

cessation date.

All employees from the private-sector may retire from age 60 up

to age 65, at which retirement becomes compulsory, and must have

served the establishment for at least 5 years. Retirement pay must

at least be equivalent to half of a month’s salary for each year of

service and a fraction of at least 6 months is therefore considered as

one whole year. One “half month salary” must include the following:

a) 15 days salary based on the last salary pay, b) the pay equivalent

of a five days of incentive leave, c) 1/12 of the 13th month pay.

Therefore, one ½ month salary is equivalent to 22.5 days. Minimum

Retirement pay = Latest daily pay rate x 22.5 days per month x

number of years of service. Depending on the agreements between

 23

the employer and employee other benefits can be included in the

retirement pay such as a Collective Bargaining Agreement (CBA).

To reward employee performance and to set incentives it is

common for employers to give compensations in cash or in kind to

employees. According to the Philippine regulations, these benefits

are exempt of taxes under certain conditions. Following the tax code,

benefits received are excluded from the computation of gross income

as long as it remains below P82, 000. “Gross benefits” include: the

13th month pay, Christmas bonuses, productivity and incentive

bonuses, and other benefits of the same nature in cash or in kind. In

addition to that, compensations of small value, called De Minimis

Benefits, are also excluded from the computation of gross income.

De Minimis Benefits have the purpose to promote the well-being and

efficiency of employees and are limited to facilities or privileges of

relatively small size. De Minimis Benefits include: Monetized unused

vacation leave credits, maximum of 10 days per year, Medical cash

allowance to dependents of employees, maximum of P750 per

semester of P125 per month, Rice subsidy, up to P1,500, Uniform

and clothing allowance, up to P5,000 per year, Actual medical

benefits, up to P10,000 per year, Laundry allowance, up to P300 per

month, Employee achievement awards (loyalty reward, safety

reward…) in forms other than cash or gift certificates, and in a

maximum value of P10,000 per year in accordance to an established

plan which does not discriminate to favour highly paid employees,

Gifts given for Christmas, special festivities or special circumstances

 24

(marriage, illness…) cannot be over P5,000 per employee per year,

and daily meal allowances during overtime work must not exceed

25% of the basic minimum wage. Maximum PHP 120.00 per day

based on PHP481.00 (Metro Manila minimum wage – Wage Order

No. NCR-19).

Benefits received by an employee by virtue of a collective

bargaining agreement (CBA) and productivity incentive schemes

provided that the total annual monetary value received from both

CBA and productivity incentive schemes combined, do not exceed

ten thousand pesos (Php 10,000.00) per employee per taxable year.

IV. Production/Operation

The production starts with the importation of materials from

famous brands outside the Philippines and as it reaches the company,

the materials are being process under inspection. After the inspection of

materials, it will be cut in the cutting department and then under cutting

department, there are subsections which are the marking, printing, and

skiving. Skiving or scarfing machines cut material off in slices, usually

metal, but also leather or laminates. The process is used instead of

rolling the material to shape when the material must not be work

hardened, or must not shed minute slivers of metal later which is

common in cold rolling processes.

From the cutting department, it will undergo in the stitching

process from the cut parts then the upper part of the shoes will be

formed. It will be processed in the strove to the assembly. In the

 25

assembly, steel toe will be attached with the mid-sole which are a layer

of material between the inner and outer soles of a shoe and for absorbing

shock. Next process is the finishing which is in the state of cleaning. The

finished product will be putted in the inner box and exported to

wholesalers around the world like in China. Boast Inc. has a yearly

output of 60,000-80,000 pairs of safety shoes.

V. MIS (Management Information System)

A. Business Model

 Value Proposition

Boast Inc. manufactured safety shoes for the people

engaged in any working environment. The products solve the

needs for creating a safer and better working environment

such safety shoes are durable and reliable that can keep the

feet protected from any harm or accidents.

 Customer Segments

Safety shoes were made for men and women who are

engaged in any working environment.

 Channels

Boast Inc. focuses on the production of safety shoes using

labour, materials, and machines, resulting in finished goods.

Revenue is generated by selling the finished goods. The

 26

finished goods are sold to wholesalers over many countries by

the process, who in turn sells them to retailers, who then sell

them to end users and consumers.

 Customer Relationships

Boast Inc. uses practices, strategies and technologies to

manage and analyze customer interactions and data

throughout the customer lifecycle, with the goal of improving

customer service relationships and assisting in customer

retention and driving sales growth. They also compile

customer data across different channels -- or points of contact

between the customer and the company -- which could include

the company's website, telephone, live chat, direct mail,

marketing materials and social media.

 Revenue Streams

Boast Inc. safety shoes are sold by exporting it on

wholesalers over many countries then wholesalers will turn it

to retailers who then sell it to the end consumer. Boast Inc.

considers client/customer perception about the value of the

products that will be produced. In the context of the marketing

mix, this value is used to determine the maximum prices that

consumers are willing to pay for the company’s safety shoes.

 27

In relation, the premium pricing strategy involves high prices,

based on a premium branding strategy that establishes by

Boast Inc. products from elten, big, skechers, baak and puma

as higher in quality and value than competing products. That

is how the company makes money from the customers.

 Resources

The most important assets required to make business

model work are finance which includes raising money,

physical machines needed in manufacturing, physical

channels used in the exportation of product, patents, customer

lists, the employees, software engineers, and scientists.

 Key Partnerships

Boast Inc. caters and produces safety footwear from

various famous brands like elten, big, skechers, baak and

puma. These famous brands serve as their clients that use

their labor for producing safety footwear. Any joint ventures

and strategic alliances between non-competitors do not

happen in making the business model work.

 Key Activities

Key activities starts with the production activity related to

design, manufacture, delivery, and quality control of safety

 28

shoes. Boast Inc. also focuses on problem solving activities,

requiring in turn knowledge management and continual staff

training.

 Costs Structure

Cost remains the same regardless of the volume of goods

and services like in salaries, rents, and maintenance of the

company. Cost per unit output fall as output expands from the

improving economies of scale. The most expensive resources

are the physical machines use in the production of safety

shoes.
 29

VI. Financial
A. Sales 5 years back

Boast Incorporated

Statement of Comprehensive Income

For the years ended December 31, 2018

2014 2015 2016 2017 2018

212, 494, 265, 619, 318, 742, 371, 866, 424, 990,
Net Sales 600 000 800 600 400

200, 420, 250, 201, 300, 368, 350, 658, 400, 713,
Cost of 080 000 000 000 000
Sales

12, 074, 15, 418, 18, 374, 21, 208, 24, 277,
Gross 520 000 000 600 400
Profit

1, 026, 000 1, 396, 000 1, 840, 000 2, 276, 000 2, 963, 000
Operating
Expenses

11, 048, 14, 022, 16, 534, 18, 932, 21, 314,
Operating 520 000 800 600 400
Income

3, 314, 556 4, 206, 600 4, 960, 440 5, 679, 780 6, 394, 320
Interest
Expense

7, 733, 964 9, 815, 400 11, 574, 13, 252, 14, 920,
Income 360 820 080
before
taxes

1, 546, 793 1, 963, 080 2, 314, 872 2, 650, 564 2, 984, 016
Taxes

6, 187, 171 7, 852, 320 9, 259, 480 10, 637, 11, 936,
Net Income 256 064
 30

VII. Organization Structure

PRESIDENT

TOMMY CHING

GENERAL MANAGER

BEN YAU

ASSISTANT GENERAL PRODUCTION DEPARTMENT

MANAGER

JOAQUIN C. LIM, JR. RAW MATERIALS

WAREHOUSE

CUTTING DEPARTMENT

STITCHING DEPARTMENT
HUMAN RESOURCE FINANCE
DEPARTMENT DEPARTMENT
ASSEMBLY

FINISHED PRODUCT
MPEX

(Material Processing Explorer) GOODS WAREHOUSE

 31

Research Design and Methodology

The data used in this research came from the respected people in the company

of Boast Inc. through interview, internet sources, and government agency sites.

Needed data to complete the strategic management paper was successfully gathered

by the process of interviewing Mr. Joaquin C. Lim Jr., Assistant General Manager of

Boast Inc. and some staff in the Human Resource Department. However, some of the

data needed from the company is not visible and confidential for the public like their

financial sales. The basis for the financial sales and other information that was not

able to retrieve where completed by the internet sources. Financial sales were

projected from the number of safety shoes produced monthly, pricing, operating

expenses, interest expense, and taxes. About the assessment of data needed from its

competitors, it was supported by the data that came from the companies’ websites

through the use of internet.

The formulas, implications, different strategies, strategy formulation, strategy

formulation tools, the step-by-step process and guide used in this paper was adapted

from our adviser Mrs. Charina Dizon.

Scope and Limitation

This strategic management paper is only limited to Boast Inc. and its top

competing competitors. There is only one competitor that the Boast Inc. considered

here in the area of Bataan who also has the same nature of business allowing the

researcher to have only one company’s competitor to be studied in this research.

 32

Vision and Mission

Mission:

To infuse honesty, trustworthy, dedication and diligence in our team to become

resilient to Global and local challenges; thereby, providing solution to our customer

and stakeholder.

Vision:

Our vision is to become the World’s Leading Consumer Goods Supply Chain.

The Vision and Mission were analyzed by the following:

A. Customer

B. Product

C. Market

D. Philosophy

E. Self-Concept

F. Survival Growth and Profitability

Vision Statement Analysis

Vision Parameter Yes/No Evaluation

1. Does it clearly It stated that they want to
answer the question Yes be the World’s Leading
“What do we want Consumer Goods Supply
to become?” Chain
2. Is it concise enough Yes It shows a desire to
yet inspirational? achieve a high level of
success in the market by
becoming leading
consumer goods supply
chain
3. Is it aspirational? Yes As evaluated in vision
parameter number 2, it is
 33

considered as an
aspirational goal as it
appeal to be in the top of
consumer goods supply
chain
4. Does it give a clear No It does not state any time
indication as to frame for when they
when it should be should obtained their
attained? vision statement.

I. Vision and Mission Proposal with Objectives

Vision and Mission Statement Analysis

Component Yes/No Evaluation

Customer Yes By infusing honesty,
trustworthy, dedication
and diligence in the
corporation, they will be
able to provide solution to
customer needs as they
become resilient to any
global and local
challenges.
Product No The mission statement
does not directly point out
what product they
produce.
Market Yes The mission statement
stated that they will
become resilient to any
global and local
challenges means that the
firm will compete locally
and globally.
Philosophy Yes Boast Inc. believes that by
having such honesty and
being trustworthy will
allow them to experience
excellence in the industry.
Self-Concept Yes Boast Inc. wants to be the
World’s Leading
Consumer Goods Supply
Chain as they compete
over the others in the
industry of manufacturing
 34

safety shoes as their

goods.
Survival Growth and Yes Boast Inc. clearly stated
Profitability their plans in regards to
the survival growth from
any local and global
challenges; thereby giving
solutions to their
stakeholders. However, it
does not state any time
frame for when they
should obtained their
vision statement.

I. Vision and Mission Proposal with Objectives

By analyzing the vision and mission statement of Boast Inc., the

researchers come up with a proposal of new vision and mission to complete

the following components that must be found in a mission and vision.

Proposed Mission Statement:

To provide labor in making a high quality safety shoes and infusing

honesty, trustworthy, dedication and diligence in our team to become

resilient in any Global and Local challenges; thereby, providing solution

to our customer and stakeholder.

Proposed Vision Statement:

Our vision is to become the World’s Leading Consumer Goods

Supply Chain serving a high quality product and maintaining customer

value from beginning to end.

 35

External Analysis

A. PESTLE

1. Political, Legal, and Governmental aspects

Political Factors Impact to the Company
1. Tax Policy regarding the Positive: reduction on corporate
Train Law 2 taxes, increase in investors

Negative: Less Sales

2. Economic Environment
Economic Factors Impact to the Company
1. Inflation Rate Negative: Less Profit, raising
prices much more higher than the
costs of production

2. Currency Exchange Rate Negative: trade between imports

and exports can be a crucial
factor in determining the currency
value; unstable price because of
currency exchange rate

Positive: cheaper peso means

more dollar value for foreign
investors

3. Socio-Cultural, Demographic, and Environmental Forces

Socio-Cultural Factors Impact to the Company
1. Consumer Preferences Negative: focus only for people
who are working like the engineer,
welder, etc. While on their target
age is just adults.

Positive: Since it is in the law that

safety shoes is a must in the
workplace for the safety, many
employees will prefer using safety
shoes in working as it is needed.
2. Attitude towards employee Positive: even though they hire
person with disabilities it doesn't
affect their production; there is no
discrimination inside the working
place
 36

4. Technology
Technological Factors Impact to the Company
1. Emerging Technologies Positive: faster production;
( Injection Machine) advantage to compete against
competitors

2. Social Media and Websites Negative: since the company

doesn't have particular website,
they have less promotion of
products; less negotiation with
their customers

5. LEGAL
Legal Factors Impact to the Company
1. Consumer Protection Positive: trust between the
company and consumer

2. Licensing Regulation Positive: they can be trusted,

doesn't need to hide

6. ENVIRONMENTAL
Environmental Factors Impact to the Company
1. Geographical Location Negative: although the location of
their company is inside the
Philippines they are focused on
exporting their product.

2. Environmental Regulation Positive: the company obey the

environmental regulation so it
doesn't affect the workers/staff or
even the mother earth.
 37

B. Competitor Analysis 4P’s

BFD Global Footwear Manufacturing Incorporation

 PLACE

SFB #1 Luzon Avenue, Phase 1 Freeport Area of Bataan,

Mariveles, Bataan, 2105 Philippines

 PROMOTION
Easily access their data base via web-based interface that

speeds and simplifies trade date research, delivers the information you

need.

 PRODUCT

BFD mainly produce boots and shoes for service personnel

involved in defense, law enforcement and security. BFM is owned by

BFD Global Corp. established in Taiwan in 2001. BFD is a specialist in

the sourcing and manufacturing of tactical and defense footwear in

China, Vietnam, Cambodia and in the Philippines. BFM started

manufacturing in May 2015. The factory is located at the Authority

Freeport Area of Bataan in Mariveles, Bataan and currently employs 400

staff. Mainly produce boots and shoes for service personnel involved in

defense, law enforcement and security. From a dress oxford to a Jungle

Boot, their production is very versatile. BFD customers are located all

over the world. They supply boots and shoes to every continent from

Kenya to the USA, Bolivia to Holland, from Singapore to Brunei and of

course they also supply boots throughout the Philippines. Their specialty

is rubber direct vulcanized Jungle Boots but they also produce cold-
 38

cemented uniform boots made from all types of leathers. Most of the

materials are imported from Asia but also bring in special materials from

Europe or the United States.

 PRICE

BFD Global value is transparency, which is why they include their

pricing information in an easy-to-find-place. They also offer a flexible

pricing model, so that their customer can choose what they need and

what they can afford. Their basic package goes for $49 a month and

includes 200 credits every month. They also provide and Enterprise

package, which starts at 5,000 credits per month but can be customized

to suit your organization’s needs.

 39

C. Porter’s 5 Forces

Barriers to Entry: THREAT OF Rivalry Determinants

NEW
 Brand Identity  Industry Growth
ENTRANTS
 Switching Costs  Product differences
 Government Policy LOW  Quality differences
 Capital Requirements  Brand Identity
 Economies of Scale  Switching costs
 Technology Protection  Diversity of Competitors
 Corporate Stakes
 Customer Loyalty

BARGAINING
COMPETITIVE BARGAINING
POWER OF RIVALRY WITHIN POWER OF
SUPPLIERS THE INDUSTRY CUSTOMERS

HIGH MODERATE
HIGH

Determinants of Supplier Power Determinants of Buyer Power

 Differentiation of inputs  Buyer concentration versus

 Switching costs of suppliers firm concentration
and firms in the industry  Buyer Volume
 Presence of substitute inputs  Buyer Information
 Supplier concentration  Buyer Profits
 Importance of volume to THREAT OF  Number of customers
supplier SUBSTITUTES
 Threat of forward integration
relative to threat of backward LOW
integration by firms in
industry.

Determinants of Substitution Threat:

 Switching Cost
 Buyer propensity to substitute
 Relative price performance of
substitutes
 40

1. Threat of New Entrants- LOW

Boast Inc. and BFD Global Company are the only shoe manufacturing

enterprise in Mariveles, Bataan considering them as amongst the top

manufacturer of footwear in Mariveles. The entry of new competitors would be

very low because it is very hard to enter into this line of business since the

former companies have already established a good reputation in the society.

Brand identity is also the strength of Boast Inc. where which buyers take the

brand name into account when making purchase decisions. Since the industry

is not dominated by competitors that have brands that customers prefer to use,

threat of new competitors having the same product will be impossible to

happen.

2. Competitive Rivalry within the industry- MODERATE

Rapidly growing markets of shoe manufacturing industry provide less

incentive for firms to aggressively compete with each other. Boast Inc. produces

safety shoes while BFD Global Company caters other kinds of footwear so the

degree of differentiation between their products in the market moderate its price

elasticity of demand and the less bargaining power buyers have.

3. Bargaining power of customers- HIGH

Buyer’s industry relative to Boast Inc. industry are more concentrated

making the bargaining power of buyers high. Buyers are fewer in number and

more concentrated that is why they have a higher power over the producer.

Boast Inc. sales revenue will be dependent on these few customers and they

will not be able to ignore any demands. While buyer information is the state of
 41

information buyers have about your industry, in the case of Boast Inc., buyers

have more information about their industry making the more bargaining power

buyers have.

Boast Inc. has a strong buyer of product and services that they offer.

Strong buyers can pressure them to lower prices, improve product quality, and

offer more and better services. All of these things represent costs to them. A

strong buyer can make Boast Inc. industry more competitive and decrease

profit potential.

4. Bargaining power of suppliers- HIGH

Boast Inc. suppliers are more concentrated compared to buyers where

there are few suppliers and many buyers making the supplier bargaining power

high. Suppliers can also easily forward integrate or begin to produce the buyer’s

product themselves, making supplier power is high. Supplier power is high

because Boast Inc. is not price sensitive. The supplier’s product is also highly

differentiated, resulting for supplier bargaining power to become high. Also,

substitute products are unavailable in the marketplace, so supplier power is

high.

5. Threats of Substitute Products- LOW

Threats of substitute products are very low because Boast Inc. produces

all different kinds of safety shoes allowing the enterprise to be flexible when it

comes to adapting any changes about the products being introduced in the

market.
 42

D. Opportunities and Threats

EXTERNAL FACTOR EVALUATION

EFE MATRIX

Opportunities Weight Rating Weighted Score

(0-1.0) (1-4)

1. Expansion of .26 4 1.04

additional
customers
2. Product .26 4 1.04
necessity as
a PPE in a
workplace

Threats Weight Rating Weighted Score

(0-1.0) (1-4)

1. Lack of .25 2 0.5

training for
the
employees

2. Rejected .23 3 0.69

Product
1.00 3.27
Total

The weight given to each factor implies the relative importance of each

factor. The range of weight is from 0.0 which is ‘not important’ and 1.0 which is

‘very important’. A rating of 1 is given for poor response and a rating of 4 for

superior response. Responsiveness to threats is measured by the degree to

which the company minimizes the incurrence or impact of threats.

Responsiveness to opportunities is measured by the degree to which the

company efforts take advantage of opportunities.

 43

The Personal Protective Equipment at Work Regulations 1992 governs

the provision and use of protective clothing, including safety shoes. The

necessity for using safety shoes in the workplace as it is needed to protect

employees against one or more of the possible risk is an opportunity for the

Boast Inc. to keep on catering good quality safety footwear for the safety of

workers on all the workplace around the world. Since it is required to have each

employee’s safety footwear in the working area, expansion of additional

customers was made which serves as an opportunity also as Boast Inc. creates

extra value by making existing customers buy more or increase the usage of

the product.

The production of safety shoes in the Boast Inc. faces challenges as

there is lack of training for the employees resulting in a rejected finished

product. This can be threat as it can continuously decrease the sales of the

company by having less produced product in the future.

Internal Analysis

A. Strength and Weaknesses

INTERNAL FACTOR EVALUATION

IFE MATRIX

Strength Weight Rating Weighted Score

(0-1.0) (1-4)

1. New clients .20 4 0.8

2. Compliance .20 4 0.8
to Law
3. A strong
brand image .20 4 0.8
from famous
 44

brands like
elten, big,
skechers,
baak and
puma

Weaknesses Weight Rating Weighted Score

(0-1.0) (1-4)

1. Lack of 0.20 1 0.2

Training (Not
sustainable)
2. Lack of 0.20 1 0.2
support from
the
management
1.00 2.8
Total

The rate suggests whether internal factors are major strength/weakness

and minor strength/weakness. For strength, the rate of four suggests major

strength while three is a minor strength. For weaknesses, a rate of one

suggests a major weakness while the rate of two implies minor weakness. The

weights used determine the importance of the factor identified in determining

success in the industry. The higher the weight, the more important it is.

Boast Inc. recently gained a new famous brand as a client which is

Puma. PUMA is the third largest sportswear manufacturer in the world, making

it strength for the Boast Inc. to have a high net income. Many famous company

who designs and manufactures athletic and casual footwear has also enter the

production of safety shoes/footwear by using the services or labor provided by

the company of Boast Inc. Having PUMA and other famous brands increase

the strength of Boast Inc. by having a strong brand image from it.

It is also major strength for the Boast Inc. that they secure the act of

compliance to the law regulated in the nature of their business. Such example
 45

is ensuring the safety in the workplace as regulated in the Department Order

No. 198 which focus on the act of strengthening compliance with occupational

safety and health standards and providing penalties for violations thereof.

The weakness of the company is the management who does not support

or sustain the training for the employees as it is just a waste of time and money

for them. The support from the management about this issue is not feasible.

Strategy Formulation

A. SWOT MATRIX
Strengths-S Weaknesses-W
1. New clients 1. Lack of training
2. Compliance to for employees
Law (Not sustainable)
3. A strong brand 2. Lack of support
image from from the
famous brands management
like elten, big,
SWOT skechers, baak
and puma
Opportunities-O SO Strategies WO Strategies
1. Expansion of 1. Strengthen 1. Expected
additional people increase in profit
customers awareness from the
2. Product especially those expansion of
necessity as a workers and additional
PPE in a employers about customers and
workplace safety shoes as product necessity
a PPE in the will sustain
working process insufficient
to increase training for the
revenue growth employees. (W1,
by gaining new O1, O2)
clients. (S1, O2) 2. Strengthen
2. Meet the Human Resource
expectation of Integration and
new clients to Organizational
strengthen the Development.
expansion of (W1, W2, O1)
additional
customers by
creating extra
 46

value making
existing
customers buy
more or increase
the usage of the
product. (S1, S3,
O1)
3. Amplify
advertising to
clients and
potential
investors by
means of
websites. (S1,
O1)

Threats-T ST Strategies WT Strategies

1. Lack of training 1. Double the effort 1. Product
for the of the Human development by
employees Resource giving importance
2. Rejected Management to the employees
product Group to build training of skills
strong and for the
integration about avoidance of
the employees’ rejected product.
importance as (W1, W2, T1, T2)
compliance to 2. Terminate
law and enhance employees or
its skills to avoid moderate
rejected product. salaries. (W1, T1)
(S2, T1, T2)
2. Product
development as
compliance to
clients’
standards. (S1,
T2)
 47

Recommendation and Action Plan

Financial Objective

 Profits to increase at 32 % compound annual growth rate from 2018-

2022

The researchers aim for the company’s net income to reach a five year

profit CAGR of 32% from 2018 to 2022 to be driven by higher revenues from

new brands as a client and improving operating margins.

 Proper allocation of Profit for High Profit Margin

Any money left over from sales revenue after all expenses have been

paid must be invested back into the company for expansion and must be

distributed among employees in a profit-sharing arrangement. Since profit

goals are concerned first with revenue then with costs, they must keep the costs

low by finding and building relationships with reliable suppliers, designing

operations with an eye toward lean efficiency and taking advantage of

economies of scale.

 Financial Sustainability

Boast Inc. must be primarily concerned with the financial sustainability

during periods of economic turmoil by collecting all outstanding debts on time

and in full, de-leveraging by paying off debt and keeping income levels

consistent.
 48

 Higher operating margins from improving economies of scale

Economies of scale are factors that cause the average cost of producing

something to fall as the volume of its output increases. Boast Inc. must improve

the efficiency and the size of the production process by dividing it into separate

task to increase productivity. The company should slash unit costs by using

mass production techniques such as specialist machinery, despite the initial

capital investment that is needed.

 Increase market share in the industry

They should increase or retain their market share to maintain their

sphere of influence and dominance to the industry. To successfully achieve this,

Boast Inc. should increase their number of clients and be aware of possible

entrants of new competitor.

Recommendation

 Market development

Boast Inc. must identify and develop new market segments for the

current products which are safety shoes. Non-buying customers in currently

targeted segments must be targeted to entail expansion of potential market

through new users or new clients like new geographic segments, new

demographic segments or new psychographic segments. Through new users

and clients, expansion of sales will be guaranteed.

 49

 Product development

To ensure that the product produced by Boast Inc. will be totally unique

from other possible competitor, Boast Inc. must develop a new product

management which includes the new conceptualization, design, development

and marketing of the service provided by them to produce a good quality of

product which is far enough on what competitors also offered. The management

should also support the idea of conducting proper training to the employees

regards to the proper skills during the operation process of producing safety

shoes for the avoidance of rejected product.

 Market penetration

For effective use of the manufactured product, for the ease of entering a

new market, and for effective seizing of large market share, market penetration

strategy is needed. Market penetration must be used to determine whether the

service and product made by Boast Inc. are capable of capturing a fixed

percentage of the market. Market penetration strategies include price

adjustment, increased promotion, new distribution channels, improving the

quality of products, and increase usage.

 Increase income

Increase in income or profit will be achieved through proper appliance of

market development strategy, product development strategy, and market

penetration strategy.
 50

Action Plan

Activities Expected Output Timetable Units

Responsible
Advertising of the 1. Increase Continuous Marketing
Company more in the Department
number of
clients and
market share
2. Awareness of
product
necessity as
a PPE in the
workplace
Training and 1. Increase Continuous The organization
Seminars for the customer
new and old experience,
employees acquisition,
and retention
2. Avoidance of
rejected
products
3. Motivated
employees
and
improvement
in their skills
and
competencies
4. Increase in
product
development
Regular Planning 1. Development Continuous All departments
and Evaluation of better
Meetings plans, and
strategies for
the company
2. Assessment
of weather
objectives are
met by all
parts of the
organization
Ensuring balance 1. Better Continuous Accounting and
between deposits, management Finance
loans, and and Department,
receivables allocation of Treasury
funds Department
2. Greater profit
from net
 51

Collecting debts interest Continuous Accounting and

on time and in-full, income Finance
de-leveraging by 1. Effective Department,
paying off debt, financial Treasury
and keeping sustainability Department
income levels
consistent

Ensuring 1. Effective Continuous Marketing

successful market seizing of Department
penetration large market
share

Strategy Implementation

 Financial

Identifying and developing new market segments for the current

products which are safety shoes. Through new market segments, increase in

profitability will be guaranteed. Boast Inc. must also improve the efficiency and

the size of the production process by dividing it into separate task to increase

productivity. The company should slash unit costs by using mass production

techniques such as specialist machinery, despite the initial capital investment

that is needed to cause the average cost of producing something to fall (cost

reduction) as the volume of its output increases.

 Customer

Boast Inc. must develop a new product management which includes the

new conceptualization, design, development and marketing of the service

provided by them to produce a good quality of product which is far enough on

what competitors also offered for a guaranteed customer satisfaction and public

confidence. The management should also support the idea of conducting

 52

proper training to the employees regards to the proper skills during the

operation process of producing safety shoes for the avoidance of rejected

product to ensure that they meet the satisfaction of customer.

 Internal Business Processes

Regular Planning and Evaluation Meetings about improving marketing,

improving delivery process, and improve product efficiency.

 Learning and Growth

Training and seminars for the new and old employees for the increase

of customer experience, acquisition, and retention, avoidance of rejected

products, motivated employees, improvement in their skills and competencies,

and increase in product development. Updating technologies of the company

for a grater competitive advantage for the company, higher efficiency of

operations, and greater quality of services rendered.

 53

Evaluation of Strategy

A. Balance Scorecard

Increase
Cost competitiveness Increase
Financial Reduction Profitability
and market share

Improve Lessen waiting To improve

Customer public process in terms customer
confidence of delivery satisfaction

Improve Improve
marketing quality
Internal
Business
Processes Improve
Improve product
delivery
efficiency
process

Improve
Improve
Learning technology
knowledge
and of
Employees Increase
Growth employee
Satisfaction creativity and
Increase employee
innovation
recruitment and
training
 54

References

https://www.dayananconsulting.com/payroll-salary-compensation-benefits-philippines

http://www.ecommerce-digest.com/key-activities.html

http://www.academia.edu/14211651/STRATEGIC_MANAGEMENT_PAPER_On_PUREGOLD

https://en.m.wikipedia.org/wiki/Economies_of_scale

DO 198 Implementing Rules and Regulations of Republi.pdf

 55

DOCUMENTATION

Boast Incorporation is a

manufacturing company that produces

safety shoes from different famous brands

with 2,000 staffs and employees in total.

The mission and vision statement of

Boast Inc. taken December 18, 2018.

Pictures of the students interviewing the

assistant general manager was not able to

be documented due to company’s

permission.

After interviewing the assistant

manager of Boast Inc. Reynaldo Bugayong

Suson, father of one of the researcher and

chairman in the Boast Inc., was interviewed

for additional informations regarding their

salaries, production or operation process,

how the management ensures the

employees relation, etc.