TIONG SAN HARRISON

A Strategic Plan presented to

the Faculty of College of Business Administration

University of Cordilleras

In partial fulfillment

Of the requirements of the course

Strategic Management

VHELBER V. BACANI

IRENE P.BARROZO

MOHAMED A. DERAR

June 2019
 Introduction

Background of the Firm

The City’s oldest retail store has survived the changing time and
continues to offer affordable items and employment opportunities.
Set up by the prominent Chinese-Filipino Leo Clan, The Tiong San
chain has been standing strong for 76 years, proving local business
thrives.

Tiong San is a combination of service and merchandising simply

because they offer services. Such as signal TV, home credit and AEON
credit service. Business varies in size. As measured by the number
of employees or sales and volume. Tiong San is a larger part divided
into several different parts; each part sells different things.
Business may be understood as the organized effects of enterprise to
supply consumers with goods and services for a profit.

Nature of Operations

Tiong San over the years has boosted small business in the city
through the annual “Disk went Caravan” festering partnership between
the private and public sector. Provide quality households grocery
and school supplies.

As you can see, we are not expanding outside of our neighbors.

This is because; Baguio City is the only place we want to take good
care of. Continuing existence of the local retail store lies on
genuinely to the community where they continue to give back.

If we get it lower, we will sell it a lower price. Providing low

prices of goods for consumers give local retail the strength,
example to local stores making consumer satisfaction achievable. We
just set out and sell what people need and make sure they will come
back and make sure nobody give a cheaper than us.
Mission Statement Analysis

To maximize profitability, improve stakeholder value and deliver

sustainable growth year after year. We are committed to custom great
satisfaction through offering the excellent services and good in
quality throughout the city of Baguio. We seek continuous
improvement in all that we do.

Mission Statement Analysis

-we are committed to consumer

Customer Oriented great satisfaction

Product Oriented -offering high quality

Market -throughout the city of Baguio

Philosophy -good value

Profitability -to maximize profitability

-excellent services
Self-image

Public image -improve stakeholder value

-deliver sustainable growth year

Employee Oriented
after year

Strategic Objectives

1. Customer Satisfaction

• Improve the price, type of products and the access to their

products for all customers across their stores
 • Win at least 1 industry award for customer service by 1st
January 2020

• Attract 3 major customers in Asia by 30th September 2020

2. Operations

• Keep the environment within the organization. Conflict free

• To keep the environment clean and tidy so that customers

doesn’t get any messy view

3. People/Culture

• Win a major employer award by 1st Jan 2020

• Implement a flexible working program by 1st Jul 2020

• Hire 3 additional product managers by 1st Feb 2020

 STRATEGY FORMULATION

SWOT ANALYSIS

STRENGTHS

1. Location is accessible to all

2. Employees are friendly and helpful

3. Aggressive emotional tools

4. Cooperative foundation

5. Accommodating working students

6. Environmental friendly

7. Freebies and discount coupons

8. Focus on consumers daily needs

9. Expansion of branches

10. Selling of high end brands

WEAKNESSES

1. Local market not up to date

2. Problem about price affecting profit

3. Salary rate is low

4. No parking space for customers

5. No special space for customers

6. Lack of securities

7. Activation of digital marketing

8. Exit and entrance is poor

9. Waiting area efficiency

 10. Taxi lanes cause traffic

OPPORTUNITIES

1. Growth of Sari-sari store

2. Located at the town proper

3. Growth of population

4. Improvement of company

5. Shorter time to reach Tiong San

6. Larger numbers of customers

7. Globalization

8. Partnership with shipping company

9. Market trend

10. People’s demands of daily needs

THREATS

1. No change of safety of workers

2. Hacking of company’s personal accounts

3. Bigger competitions

4. Customer efficiency

5. Road renovations

6. Theft due to crowded space

7. Customers bad feedback

8. Employees dishonesty

9. Inflation

10. Lack of employees

INTERNAL FACTOR EVALUATION

FACTOR FACTOR TOTAL

STRENGTHS
WEGHT RATING FACTOR
1. Location is
0.05 2 0.1
accessible to all
2.Employees are
0.02 2 0.04
friendly and helpful
3. Aggressive
0.03 2 0.06
emotional tools
4. Cooperative
0.10 4 0.4
foundation
5. Accommodating
0.06 2 0.12
working students
6. Environmental
0.10 4 0.4
friendly
7. Freebies and
0.07 2 0.14
discount coupons
8. Focus on
consumers daily 0.03 3 0.09
needs
9. Expansion of
0.5 3 1.5
branches
10. Selling of high
0.04 2 0.08
end brands
TOTAL 1.00 2.93
WEAKNESSES
1. Local market not
0.1 1 0.40
up to date
2. Problem about
price affecting 0.05 1 0.08
profit
3.Salary rate is low 0.09 2 0.14

4. No parking space 0.3 2 0.18

 for customers

5. No special space
0.15 1 0.06
for customers
6. Lack of
0.2 2 0.14
securities
7. Activation of
0.1 1 0.08
digital marketing
8. Exit and entrance
0.06 1 0.09
is poor
9. Waiting area
0.01 1 0.06
efficiency
10. Taxi lanes cause
0.03 2 0.14
traffic
TOTAL 1.00 3.05

EXTERNAL FACTOR EVALUATION

TOTAL
FACTOR
OPPORTUNITIES FACTOR RATING FACTOR
WEIGHT
WEIGHT
1. Growth of
0.15 4 0.12
Sari-sari store
2. Located at the
0.15 4 0.12
town proper
3. Growth of
0.15 3 0.06
population
4. Improvement of
0.06 3 0.06
company
5. Shorter time
to reach Tiong 0.04 4 0.12
San
6. Larger numbers
0.09 3 0.06
of customers
7. Globalization 0.16 3 0.06
8. Partnership
with shipping 0.05 3 0.06
company
9. Market trend 0.03 4 0.08
10. People’s
demands of daily 0.1 3 0.09
needs
TOTAL 1.00 3.07
THREATS
1. No change of
0.12 1 0.40
safety of workers
2. Hacking of
company’s 0.08 1 0.08
personal accounts
3. Bigger
0.09 2 0.14
competitions
4. Customer
0.09 2 0.18
efficiency
5. Road
0.06 1 0.06
renovations
6. Theft due to
0.08 2 0.14
crowded space
7. Customers bad
0.09 1 0.08
feedback
8. Employees
0.12 1 0.09
dishonesty
9. Inflation 0.15 1 0.06
10. Lack of
0.12 2 0.14
employees
TOTAL 1.00 3.48
Competitive Profile Matrix

Critical FACTOR TOING SAN SM ROBINSON

SUCCESS WEI FACTOR TOTAL FACTOR TOTAL FACTOR TOTAL
FACTOR GHT RAT WEI RAT WEI RAT WEI
ING GHT ING GHT ING GHT

Customer 0.12 3 3.36 4 0.48 3 0.36

Loyalty

Product Quality 0.2 3 0.6 4 0.8 2 0.4

Customer
Service 0.18 3 0.54 3 0.54 2 0.36
Cash Reserves
0.07 2 0.14 2 0.14 2 0.14
Product Design
0.1 3 0.3 4 0.4 3 0.3

Effective
Planning and 0.03 4 0.12 2 0.06 2 0.06
Budgeting
Price
Competitiven 0.03 4 0.12 2 0.06 2 0.06
ess
Employee
Satisfaction 0.1 2 0.2 3 0.3 3 0.3
Efficient
Production 0.07 3 0.21 4 0.28 2 0.14
Brand
Reputation 0.1 2 0.2 3 0.3 2 0.2

TOTAL 1.00 2.79 3.36 2.32

Based on our rating computation as seen, SM has a larger

competitive advantage than TOING San when it comes to customer
loyalty, product design and Equipment production, While Toing san
has a large competitive advantage than SM when it comes to Effective
planning and budgeting & price competitiveness. This is a big win
for Toing san because this is competitive advantage will really pull
large customers to purchase the products that Toing San have. While
Robinson has a lower competitive advantage when it comes to all
critical success factors compared to Toing San and SM.
 Internal-External Matrix

EFE

1 2 3
(3.07)

4 5 6

7 8 9

(3.05)

IFE

Our external factor evaluation falls on grow of buy situations

based on our graph. This means that we acquire a successful external
factor while our internal factor evaluation falls on a hold and
maintain situation which means out internal factor evaluation is
balanced or it is in an average level. We are not in need of grow
and build because based on our graph where a high percentage on hold
is and maintain four our external evaluation.

SWOT MATCHING

STRENGTHS WEAKNESSES
1. Location is accessible to
1. Local market not up to date
all
2. Employees are friendly 2. Problem about price
and helpful affecting profit
3. Aggressive emotional
3.Salary rate is low
tools
4. Cooperative foundation 4. No parking space for
customers
5. Accommodating working 5. No special space for
students customers
6. Environmental friendly 6. Lack of securities
7. Freebies and discount 7. Activation of digital
coupons marketing
8. Focus on consumers daily
8. Exit and entrance is poor
needs
9. Expansion of branches 9. Waiting area efficiency
10. Selling of high end
10. Taxi lanes cause traffic
brands
S1,O2 W1,O3
S2,O5 W2,O3
S3,O4 W3,O1
S4,O3 W4,O6
S5,O7 W5,O6
S6,O2 W6,O7
S7,O8 W7,O7
S8,O10 W8,O6
S9,O6 W9,O6
S10,O10 W10,O6

OPPORTUNITIES THREATS
1. No change of safety of
1. Growth of Sari-sari store
workers
2. Located at the town 2. Hacking of company’s
proper personal accounts
3. Growth of population 3. Bigger competitions
4. Improvement of company 4. Customer efficiency
5. Shorter time to reach
5. Road renovations
Tiong San
6. Larger numbers of
6. Theft due to crowded space
customers
7. Globalization 7. Customers bad feedback
8. Partnership with shipping 8. Employees dishonesty
 company
9. Market trend 9. Inflation
10. People’s demands of
10. Lack of employees
daily needs
S1,T5 W1,T3
S2,T8 W2,T10
S3,T9 W3,T8;T9
S4,T7 W4,T4
S5,T10 W5,T4
S6,T9 W6,T1
S7,T4 W7,T2
S8,T4 W8,T7
S9,T5 W9,T7
S10,T9 W10,T5

SPACE MATRIX

ENVIRONMENTAL STABILITY INDUSTRY STRENGTH

1. Environment 1. Expansion of
1 5
friendly business
2. Cooperative 2. Selling of
1 3
foundation high end brand
3. Natural 3. Focusing
catastrophes 2 more in their 6
consumer needs
4. Road 4. Aggressive
4 4
renovation promotional
5. No parking 5. Employment
2 4
space for people
2 4.4
FINANCIAL STRENGTH COMPETITIVE ADVANTAGE
1. Freebies 6 1. Building 1
 and discounts great
experience
2. Popularity 2. Location
of cheap 5 1
prices
3. Active 3. Lack of
sale and buy 4 securities 2
options
4. Low salary 4. Staffs are
2 2
rate friendly
5. Population 5. Space for
growth in 4 children and 2
Baguio City pets
4.2 1.6

FS Aggressive
FS – ES 4 Cluster
3
4.2 – 1.6 = 2.6 (2.6, 2.4)
2
IS – CA
1

4.4 – 2 = 2.4 0
CA -4 -2 0 2 4 IS
-1

-2

-3

-4
ES

The result above shows that Tiong San Harrison Space Matrix can
be found. The company is stable enough to compete with its
competitors and maximize its competitive advantage to continue
increase its market share. As for its competitive advantage, the
company focuses on producing good quality product including their
secret recipe to satisfy the needs of the customers.

STRATEGY IMPLEMENTATION

Quantitative Strategic Planning Matrix

PRODUCT DEVELOPMENT MARKET DEVELOPMENT

ACT
ACTR
RAC
ACTI
STRENGTH TIV
WEIGH WEIGH VENE
S ENE TOTAL TOTAL
T T SS
SS
SCOR
SCO
E
RE
1.Locati
on is
accessib 0.03 4 0.12 0.10 4 0.40
le to
all
2.Employ
ees are
friendly 0.03 4 0.12 0.08 4 0.32
and
helpful
3.
Aggressi
ve 0.02 3 0.06 0.07 3 0.21
emotiona
l tools
4.
0.02 3 0.06 0.06 3 0.18
Cooperat
ive
foundati
on
5.
Accommod
ating 0.03 4 0.12 0.07 4 0.28
working
students
6.
Environm
0.02 3 0.06 0.05 3 0.15
ental
friendly
7.
Freebies
and 0.02 3 0.06 0.07 2 0.14
discount
coupons
8. Focus
on
consumer 0.02 3 0.06 0.10 2 0.20
s daily
needs
9.
Expansio
0.02 4 0.08 0.06 3 0.18
n of
branches
10.
Selling
of high 0.03 3 0.09 0.07 4 0.28
end
brands
WEAKNESSES
1. Local
0.10 1 0.40 0.03 1 0.03
market
not up
to date
2.
Problem
about
0.08 1 0.08 0.03 1 0.03
price
affectin
g profit
3.Salary
rate is 0.07 2 0.14 0.04 2 0.02
low
4. No
parking
space
0.09 2 0.18 0.05 1 0.05
for
customer
s
5. No
special
space
0.06 1 0.06 0.02 2 0.04
for
customer
s
6. Lack
of
0.06 2 0.14 0.02 1 0.02
securiti
es
7.
Activati
on of
0.08 1 0.08 0.01 1 0.01
digital
marketin
g
8. Exit 0.09 1 0.09 0.01 1 0.01
and
entrance
is poor
9.
Waiting
area 0.06 1 0.06 0.03 1 0.03
efficien
cy
10. Taxi
lanes
0.07 2 0.14 0.03 1 0.03
cause
traffic
TOTAL 2 TOTAL 2.61

PRODUCT DEVELOPMENT MARKET DEVELOPMENT

ACT
ACTR
RAC
ACTI
OPPORTUN TIV
WEIGH WEIGH VENE
ITIES ENE TOTAL TOTAL
T T SS
SS
SCOR
SCO
E
RE
1.
Growth
of Sari- 0.03 4 0.12 0.10 4 0.40
sari
store
2.
Located
at the 0.03 4 0.12 0.08 4 0.32
town
proper
3. 0.02 3 0.06 0.07 3 0.21
Growth
of
populati
on
4.
Improvem
0.02 3 0.06 0.06 3 0.18
ent of
company
5.
Shorter
time to
0.03 4 0.12 0.07 4 0.28
reach
Tiong
San
6.
Larger
numbers
0.02 3 0.06 0.05 3 0.15
of
customer
s
7.
Globaliz 0.02 3 0.06 0.07 2 0.14
ation
8.
Partners
hip with 0.02 3 0.06 0.10 2 0.20
shipping
company
9.
Market 0.02 4 0.08 0.06 3 0.18
trend
10.
People’s 0.03 3 0.09 0.07 4 0.28
demands
of daily
needs
THREATS
1. No
change
of
0.10 1 0.40 0.03 1 0.03
safety
of
workers
2.
Hacking
of
company’ 0.08 1 0.08 0.03 1 0.03
s
personal
accounts
3.
Bigger
0.07 2 0.14 0.04 2 0.02
competit
ions
4.
Customer
0.09 2 0.18 0.05 1 0.05
efficien
cy
5. Road
renovati 0.06 1 0.06 0.02 2 0.04
ons
6. Theft
due to
0.06 2 0.14 0.02 1 0.02
crowded
space
7.
Customer 0.08 1 0.08 0.01 1 0.01
s bad
 feedback
8.
Employee
s 0.09 1 0.09 0.01 1 0.01
dishones
ty
9.
Inflatio 0.06 1 0.06 0.03 1 0.03
n
10. Lack
of
0.07 2 0.14 0.03 1 0.03
employee
s
TOTAL 4.30 TOTAL 5.43

The table above shows the evaluation of 2 alternative strategies

that the firm may use. It shows the result of which among the 2
strategies will be the most effective and efficient for the company
to maintain its competitive advantage. Among the choices of which
strategy will the company use, market development has the highest
score for the total attractiveness of 2.61 for its internal factors
and 5.43 for its external factors as compared to product development
which only has a total of attractiveness score of 2.00 for internal
factors and 4.30 for external factors.

The company’s strategy is to enter market or look for another

target market and expand into untapped markets; branch expansion
that will be of benefit to the customers in different places, this
strategy may increase the number of customers who are after the new
market improvement of the company and find new group of buyers as
potential; customers for its existing products and services. In
addition, this strategy will help the company gain more profit and
be known widely.
ACTION PLAN

Action People Time

Key Result Resources
Steps involve frame
Look for
another
Manager,
target
researchers
market to Short-
1,000,000 and
find new term
development
group of
team
Market potential
Development buyers
Expand
Manager,
into
researchers
untapped Long-
10,000,000 and
markets; term
development
branch
team
expansion

The action plan of Tiong San Harrison is based on the evaluation

of QSPM, which is the market development. The action has short-term
and long-term objectives for the improvement of the company. The
action steps of the action plan are to look for another target
market to find new group of potential buyers and expand into
untapped markets; branch expansion.

Looking for another target market and finding new group of

potential buyers with the help of manager, researchers and
development team will be in a short-term because the time period
needed for the action step will be just 3 months. The expanding into
untapped markets; branch expansion will be in long-term because it
will take almost half of the year for a single branch to be
constructed.
RECOMMENDATIONS

Since Tiong San Harrison is a retail store and located along the
Harrison road which is prone to thieves and unsafe events. Market
development is the most suitable strategy that the company may use.
Entering market or looking for another target market to look for
potential buyers will help the company to gain more market share and
maximize its profit. Expanding new branches that will be of benefit
to the customers in different places can lead to more loyal
customers. With this strategy, the company will satisfy their
customers and the need of the establishment to be known widely
because of the improvement to its market.