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Strategic Management Plan for J.C.

Aguilar Construction 1
HOLY ANGEL UNIVERSITY

Strategic Management Plan for J.C Aguilar Construction

A Strategic Plan

Submitted by:

Aguilar, Janalyn Eurane


Alag, Analyn B.
Caingat, Timothy John M.
Carreon, John Mark M.

Fourth Year Bachelor of Legal Management Students of

Holy Angel University

Author Note

Correspondence concerning this strategic plan paper should be addressed to

Analyn B. Alag, or John Mark M. Carreon, Department of Business and

Accountancy, Holy Angel University, No 1 Holy Angel Avenue, Sto. Rosario St,

Angeles City 045-887-1334 local 1416 or 0935-930-1907 or 0955-923-4792. E-

mail: alag.analyn15@gmail.com
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TABLE OF CONTENTS

I. Executive Summary………………………..……................................. 4
II. Industry Analysis…………………………………..……........................ 5-6
III. Business Profile………………….……..……....................................... 6-8
3.1 Vision…………..……………..……................................................. 8-10
3.2 Mission………..………………..…….............................................. 10-12
3.3 Goals & Objectives...………………………..……........................... 12-13
IV. Environmental Scanning………………………..................................... 13-22
4.1 External Environment
4.1.1 Economic………………………........................................... 13-14
4.1.2 Socio-Cultural…………………........................................... 14-15
4.1.3 Legal-Political………………………..………....................... 15
4.1.4 Technological………………………..……........................... 15-16
4.1.5 Environmental………………………..….............................. 16
4.1.6 Competitors………………..…............................................ 16-17
4.1.7 Assessment: EFE And 5 Forces Of Michael Porter…..….. 17-22
4.2 Internal Environment
4.2.1 Management/Organization…………....………..…...……… 22-24
4.2.2 Target Market…………………………….....……………….. 25
4.2.3 Marketing Mix………………………………….....………….. 25-29
4.2.4 Financial………………………………………………………. 29-32
4.2.5 Corporate Social Responsibility…………………………….. 33-34
4.2.6 Assessment: IFE And Competitive Profile Matrix……….... 34-38
V. Strategy Formulation
5.1 Grand Strategy…………………..……………..……………………... 38-39
5.2 TOWS/SWOT Matrix……………………………..……..……………. 39-44
5.3 IE Matrix………………………………………..………………………. 45-46
5.4 Financial Ratios……………………….………………………………. 46-52
5.5 Projected Income Statement As Of Year 2017…..………………… 52-54
5.6 Projected Balance Sheet As Of Year 2017…………………............ 55-56
5.7 Quantitative Strategic Planning Matrix…………………..………….. 56-60

VI. Strategies, Programs, Activities, Tasks,& Resources………………..... 60-86

VII. References……………………………………………..………………......
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TABLES

Vision Analysis…………………………………………………………………….….. 9-10

Mission Analysis……………………………………………………………………… 11-12

External Factor Evaluation Matrix………………………………………………….. 18-19

Compensation Table………………………………………………………………… 24-25

Completed Projects & Contract Prices…………………………………………….. 27

Financial Record…………………………………………………………………..…. 30

Internal Factor Evaluation Matrix………………………………….…………..… 35-36

Competitive Profile Matrix ……………………………………………………..…. 37-38

TOWS/SWOT Matrix………………………………………………………………… 42-44

Financial Ratios……………………………………………..……………………….. 47-52

Quantitative Strategic Planning Matrix……………………………………………... 57-60

Market Development Strategy Objective 1…………………………………………. 62-68

Market Development Strategy Objective 2…………………………………………. 70-76

Market Development Strategy Objective 3………………….………………………. 79-86

Product Development Strategy Objective 1………………………….………………

Product Development Strategy Objective 2……………………….…………..…..…

Product Development Strategy Objective 3…………………………………….……

FIGURES

Market Share……………………………..…………………………………………..… 17

Five Forces Of Michael Porter………………….………………………………...….. 22

Organizational Chart…………………………………….………….…………….…… 24

Location Map……………………………………………………….……………..…… 28

Projected Balance Sheet And Income Statement………………………..……….… 31-32

CSR Activities…………………………………………………………………………... 33-34

Grand Strategy…………………………………………………………….……………. 39

Internal-External Matrix……………………………………………………… 46
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I. Executive Summary

This strategic management paper aims to develop feasible strategies for

J.C. Aguilar Construction a family owned company and their main office is

located in Provincial Highway, Paralayunan, Mabalacat, Pampanga. J.C Aguilar

Construction was established in 1995, the president of the company is Engr.

Jose C. Aguilar. It has a satellite branch that is located in Clark, Pampanga for

easy access location and it can be also seen by many people.

This paper provides a discussion of the critical success factors for the

company. J.C. Aguilar Construction provides high quality of services and

customer loyalty. The company makes sure that they provide their customers the

quality of service that they deserve and attend to the needs of their customers

immediately. In general, the J.C. Aguilar Construction is the second most

competitive among its competitors in terms of critical success factors. J.C.

Aguilar Construction strengths includes a wide variety of services offered and

having competent and licensed workers such as engineers. They also make sure

that the infrastructures they build are safe and durable. However J.C. Aguilar

Construction needs to need to improve its services like advancements of

technologies and enhancement of the equipment used.

Finally, this paper concludes that the best strategy for J.C. Aguilar

Construction is market development by improving or expanding its existing

products or services to a wider range of market to increased sales. J.C. Aguilar


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Construction can use this strategy to upgrade their target market that they will

cater for the company’s growth and profitability.

II. Industry Analysis

Construction is the oldest and one of the largest industries in the world.

From the architect’s dream and the engineer’s endeavor to final satisfaction of

the user, construction represents many of our civilization’s noblest achievements.

Builders from history have left many structural wonders for us. Amongst the

classic of the past may be mentioned the pyramids of Egypt, Taj Mahal, and

China’s Great Wall. Construction plays an essential role in growth of an

economy as a basic infrastructure facility.

Throughout the world, construction is a leading industry in all market

economies. Each construction project is “unique” project, vastly different in

nature and type from each other.

Construction in the Philippines is set to grow at a rapid pace over the

forecast period (2017–2021), according to the latest research from Timetric's

Construction Intelligence Center. The industry's growth will be supported by the

country’s development plan 2017–2022, as well as population growth,

urbanization, and favorable government policies with regards to public-private

partnerships (PPPs).

In February 2017, the government launched the Philippines Development

Plan 2017–2022, with an aim to make the Philippines an upper-middle-income


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country by 2022. Consequently, it plans to reduce unemployment from 5.5% in

2016 to 3.0% by 2022. To achieve this, the government is developing Special

Economic Zones and Tourism Enterprise Zones (TEZs) to attract both

manufacturing and service companies. Additionally, under the 2017 Investment

Priorities Plan (IPP), the government plans to provide financial incentives to new

Information Technology (IT) and Business Processing Outsourcing (BPO)

companies to set up their facilities in the country.

The industry’s output value in real terms is expected to rise at an average

of 9.8% a year over the forecast period. The Philippine construction industry is

consequently expected to rise from US$34.0 billion in 2016 to US$54.3 billion in

2021, measured at constant 2010 US dollar exchange rates.

III. Business Profile

a.) History

J.C. AGUILAR CONSTRUCTION was established in 1995 by its founder

and later on General Manager Engr. Jose C. Aguilar to provide services in the

field of Electrical, Mechanical, Architectural, and Civil Works.

J.C. AGUILAR CONSTRUCTION (JCA for brevity) was conceptualized by

a young man fresh from college when he got employed as one of the engineers

of a construction company. Sensing the potentials, he envisioned to establish his

own firm where he can devote his time and knowledge in engineering and

construction. With this in mind, he made a promise to be an employee for ten


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years and be on his own afterwards. In preparation, he then laboured and

persevered to learn the processes and as planned, resignation was tendered

upon reaching the day of his 10th year as a company engineer.

On his hand the certificate issued by the DTI which in effect allows him to

do business and himself as the only employee to speak of, he then search for a

project that suits his capabilities. With the vast knowledge he learned and

acquired during his employment and a P15, 000.00 in his war chest he received

as his last pay check, he gambled and went on to bid for a P200,000.00 electrical

project which, fortunately, had been awarded to him and has since served as the

first ever job contracted by JCA. Since then, contract after contract were awarded

which (with the growth of its client-base) compelled JC AGUILAR

CONSTRUCTION to expand and hire competent professionals and personnel to

man what is now (with all humility) a multi-million firm that proudly possessed a

PCAB license under category “AAA” in such a short period of time.

Today, with its professionalism, integrity, versatility, creativity, expertise

and competence gained through years of constructing, JCA has often times the

firm other players avoid to compete primarily because of its very affordable costs-

yet within standard or beyond- quality services. As a manifestation of its

character and commitment JCA has time and again been awarded with enviable

over a hundred million peso- contracts which now served as barometers of how

far it can go and what it can really offer and do.


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With the trust and credibility bestowed and earned thru the years and the

desire for its growth, JCA has since been inspired to work even harder wherein it

could flex its muscles and mind for some kind of innovation to remain competitive

and of edge among the players of its category.

Now, even as it can firmly stand on the same footing where big players do,

JCA would like to assure that, while it is pursuing greater success and progress,

it shall continue to be guided by its humble beginning thus, remain committed to

quality yet affordable services motivated not solely by profit.

b.) Vision and Mission

Vision

To firmly stand on the same footing where big players do with its

professionalism, integrity, versatility, creativity, expertise and competence. To be

the firm other players avoid competing primarily because of its very affordable

costs yet within standard or beyond- quality services.


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Table 1
Vision Analysis

Criteria Yes or No Evaluation

Focused concept Yes The Company views itself as


one of those companies'
others, avoid to compete with
because of their quality service
at an affordable price.

“To be the firm other players


avoid competing primarily
because of its very affordable
costs yet within standard or
beyond- quality services”.

Sense of noble purpose No Not Found

JCA Construction should have


a noble purpose and to be
socially responsible that they
always consider the benefit of
the community.
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Plausible chance of Yes It is stated in their vision that


success they want to have a stable
position in the market that they
will have the same level with
the big players in the
construction industry.

“To firmly stand on the same


footing where big players do
with its professionalism,
integrity, versatility, creativity,
expertise and competence”.

Proposed Vision Statement

To firmly stand on the same footing where big players do with its

professionalism, integrity, versatility, creativity, expertise and competence. To be

the firm other players avoid competing primarily because of its very affordable

costs yet within standard or beyond- quality services and always consider the

benefit of the community.

Mission

JCA is dedicated in pursuing greater success and progress, it shall

continue to be guided by its humble beginning thus, remain committed to quality

yet affordable services motivated not solely by profit.


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Table 2
Mission Analysis

Criteria Yes or No Evaluation

Customers/Clients Yes “...remain committed to quality


yet affordable services
motivated not solely by profit.”

Products or services Yes “...quality yet affordable


services motivated not solely by
profit.”

Markets No Not clearly identified

Technology No Not clearly identified

Survival, growth and No Not clearly identified


profitability

Philosophy Yes “JCA is dedicated in pursuing


greater success and progress, it
shall continue to be guided by
its humble beginning…”

Self-concept (distinctive Yes “...remain committed to quality


competence) yet affordable services
motivated not solely by profit.”

Public image No Not clearly identified


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Employees No Not clearly identified

In the current Mission Statement of the JCA Construction, most of the

criteria are not identified, these are the: Market Criterion where the firms compete

geographically, also on the Technology where the company needs to adopt in

able for it to survive, it also lacks the Survival, Growth and Profitability Criterion

which will state on how the firm is capable to commit growth financial soundness,

Public Image is also not identified in their statement which includes how

responsive the company is in social, community and environmental concerns,

and lastly, the criterion for employees which are the asset of the firm.

Proposed Mission Statement

JCA is dedicated in pursuing greater success and progress in reaching its

ambition to become one of the well know construction firm in the country, it shall

continue to be guided by its humble beginning while adopting new innovations

without sacrificing the environment, remain committed to quality yet affordable

services motivated not solely by profit.

Goal

To provide the highest level of quality and service, above and beyond

competitors.
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Objectives

 To work even harder wherein it could flex its muscles and mind for some

kind of innovation to remain competitive and of edge among the players of

its category.

 To meet contractual obligations

 To nurture and produce expertise required for fulfilling contractual

obligations

IV. Environmental Scanning

4.1 External Environment

Economic Forces

Economic force is one of the major external factor that affects a lot

industry, it includes inflation, investors, interest rates, labor and government

monetary policies that influence levels of production and demand for goods and

services and surely construction firms will surely be shaken by this force.

According to Remo (2015), reporter from Philippine Daily Inquirer, “Over

the course of President Duterte’s six-year term, some P7 trillion (about $144

billion) are expected to be poured in the country’s infrastructure sector—

reportedly the “boldest, most ambitious… in history. Some P860 billion had, in

fact, been programmed by the administration for public infrastructure for this year

alone.
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The target for 2017 was to ramp up infrastructure spending to 5.4 percent

of the country’s gross domestic product (GDP)—twice the 2.6 percent average

seen in the past six administrations, spanning across the last 50 years.”

The benefit of the economy would as well benefit the construction

industry. As the International Monetary Fund (IMF) had to put it, a “sustained

increase in public infrastructure spending to 5% of Gross Domestic Product

(GDP) would add a total of 5 to 6 percent to GDP after 15 years.”

And it is said that the supply of the Construction Materials in the country is

sufficient and readily available for consumption.

Socio - Cultural Forces

Cultures vary in different locations and each culture respond accordingly

towards their environment. Same services might be offered in different areas but

are treated in different ways. Culture also influences the needs of the people

living in a particular area. And as one of the industries that gives service,

Construction Firms must also abide on this aspect for their customers came from

different location and has different beliefs and culture that might be needed to

consider when they are dealing with their respective projects. Construction

projects are becoming more demanding and complicated in the design because

of certain culture that needs to be considered while making the design.

Therefore, firms could just choose projects that have less things to consider.
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Another thing is that generational differences can be a problem for the

industry. More millennials are entering the job force who has very different work

ethics and sets of skills than different generations in the field. Difference of

opinion may cause conflicts, in particular to veteran employees and new

employees.

Legal - Political Forces

Legal/Political force is one the most essential external factor that is

needed to be complied above everything. In the Philippines there is a lot of

resolutions and laws that affects the industry, particularly the decongestion of

Metro Manila to Pampanga that was adopted by the Provincial Local Government

in enacting the Resolution Number 3769 supporting the said idea in

decongesting the Metropolis Region of the country. By this, it will surely give a lot

of projects to the local contractors of the province.

Technological Forces

Technology has become the most developed strategy in improving quality

of the product or service of a particular industry, Advancement in the

environment and fast build up of infrastructure are caused by technology in

today’s time. It is an asset for the company to have its innovation that enables to

maximize its sales and multiply its customers for their project will fasten the due

time and both the company and customer will benefit. However, construction

companies who cannot keep up with the transformation of technology in the


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industry will be left behind. This has become true as competition increased both

in attracting skilled workers and competing for bigger projects. Companies must

be strategic when implementing new technology to not upset the veteran

employees who are set in the traditional way of doing business.

Environmental Forces

Because of the different calamities that was a result of some man made

activities and calamities, environmental force was considered as an opportunity

and also threat for numerous businesses, including in the construction industry.

Opportunity because as we all know as calamity passed by, there are a lot of

houses, private and public infrastructures to be washed up, and these

phenomenon will result to an opening of a lot of projects for the rehabilitation. It is

also a threat because as these phenomenon happens, the standard and

procedures for the construction industry will be questioned and it will be a great

effort for the contractors to cope up with new set of standards.

Competitors

As shown in Figure 1, there are three firms playing in the same industry

namely R.D. Policarpio & CO., Inc., Pentagon Industrial Dev’t & Construction,

and J.C. Aguilar Construction. R.D. Policarpio & CO., Inc., got 35% of the market

share because it has more equipments and more experience in the industry than

J.C. Aguilar Construction and Pentagon Industrial Dev’t & Construction. J.C.

Aguilar Construction got 33% while Pentagon Industrial Dev’t & Construction got
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32%. Therefore, as shown in the figure, we could conclude that the three (3)

firms has minimal difference in terms of market share.

Figure 1: Market Share of Construction Companies

The External Factor Evaluation Matrix

External Factor Evaluation (EFE) matrix method is a strategic-management

tool often used for assessment of current business conditions. The EFE matrix is

a good tool to visualize and prioritize the opportunities and threats that a

business is facing. External factors assessed in the EFE matrix are the ones that

are subjected to the will of social, economic, political, legal, and other external

forces.

The scores for an EFE Matrix can range from a low of 1.0 to a high of 4.0.

The closer the score is to the upper range the better the company is internally.
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With the total weighted average of 2.62, J.C Aguilar Construction exactly average

internally. This signifies that the program is adapting to the changes in the

environment that gives impact to the course. The program is doing well in

optimizing the use of opportunities and reducing the possibility of threats,

also have a significant amount for the company to improve internally.

Table 3

External Factor Evaluation Matrix for J.C Aguilar Construction

Key External Factors Weight Rating Weighted


Score

Opportunities

1. The President’s Program for


Public Infrastructure will give many
Projects to the Company. 0.13 4 0.52

2. Foreign investments would give


projects to the company. 0.12 4 0.48

3. Decongestion of Metro Manila


will open the doors to the company
for projects. 0.10 4 0.40

4. Devastation of calamity will give


the construction companies a lot of
project for restoration. 0.08 3 0.24

5. Availability of Construction
Materials is sufficient in the market 0.07 3 0.21
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Threats

1. Advancement of the Technology


could affect the Competitive
advantage of the Company. 0.12 1 0.12

2. Different standards of
procedures could be applied when
it comes to calamities. 0.11 1 0.11

3. Inflation in the price


Construction Materials needed for
project fulfillment that could
threaten the company. 0.11 2 0.22

4. Complexity of Projects when it


comes to culture and generational
differences. 0.07 2 0.14

5. Almost the same level of market


share could affect the company
when it comes competitive
advantage. 0.09 2 0.18

Total 1.00 2.62

NOTE: The factor weight ranges from 0.0 (not important) to 1.0 (all-important).
While the ratings are as follows: 4= major opportunity, 3= minor opportunity, 2=
minor threat, 1= major threat
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The Michael Porter’s Five Forces Model

Developing strategies for a specific organization is a helpful tool to know

the threats and opportunities that would give an impact to a company. The

Porter's Five-Forces Model enables a firm to know the intensity of the

competition in the market. Through this information, an organization can make

decisions that will not harm its products and services. Instead, it will be an

advantage to change strategies and act immediately to the threats made by other

competing firms. The following are the analysis of Porter’s Five-Forces Model

with regards to J.C Aguilar Construction:

1. Rivalry among Competing Firms - High

Rivalry is one of the main factor in surviving the company. If you know

your competitor it is an advantage because there is a big possibility for your firm

to know how to target their weaknesses and build your own strategy by

identifying opponents weaknesses. Based on the current situation of J.C Aguilar,

the rivalry among its competitors is too high because in the construction

company there is always someone who is greater than the company itself. It is

competing with RD Policarpio & Co., Inc. in terms of market share.

2. Potential Entry of New Competitors - High

Unending growth of business may lead to more competitors and we

cannot avoid that situation but we can lessen their market value and increase or
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maintain ours thru catering the demands of our customers properly and giving

them a great satisfaction.

3. Potential Development of Substitute Products - Low

No other service can substitute the services that construction firm

provides. It takes skills, knowledge, and expertise of the construction firms to

build an establishment.

4. Bargaining Power of Suppliers - Low

In this industry, suppliers play a vital role because they are the one who

provide materials that are essential to the fulfillment of the projects of

construction companies. A permanent supplier relieves the construction company

from possible shortage of materials.

5. Bargaining Power of Consumers - High

Consumers prefer less cost. Less cost would mean less profit to a

construction company. It will surely affect the industry because consumers are

the one who give projects to construction companies.


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Potential Development
of Substitute Products

LOW

Bargaining Power Rivalry Among Bargaining Power


of Suppliers of Consumers
Competing Firms
LOW HIGH
HIGH

Potential Entry of New


Competitors

HIGH
Figure 2: Porter’s Five Forces Model of J.C Aguilar Construction

4.2. Internal Environment

A.) Management/Organization

The owner of the entity which is also the founder of the entity is Jose C.

Aguilar. Through his knowledge, skills and hard work he established an entity

that offers a variety of construction services with affordable contract prices. The

entity has its own team such as the administrative manager and project

managers. The administrative manager handles the accounting department that

is in charge to the financial aspect of the company, the human resource

department that is assigned in the human rights of the employees and the

assessments of the applicants of the entity, and the purchasing-logistic


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department that is assigned in the buying of the materials needed by the team.

The project managers are the persons who are in charge on the employees of

the entity such as the quality assurance head and the project coordinator. The

entity also have competent and licensed engineers that ranges from electrical,

mechanical, civil, field and cost engineers, they also have the people that are

expertise in a field work especially in a construction industry. But because they

have lots of workers they also pay a higher compensation for them. They also

have owned and advanced machineries that are important in their projects but

they lacked on trucks that are using to transport materials from one place to

another and such, they also have a hollow-block machine that is owned by the

wife of the owner. With the help of the machine they can able to produce faster

and high quality hollow-blocks. With the enough resources, licensed workers and

competent management team, they form a great team that is ready to serve its

clients with the best practices and resources they have and the most affordable

cost yet an excellent and beyond quality services.

The figure below shows the organizational chart of the entity that creates a

great team and organization.


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Figure 3: Organizational Chart of J.C Aguilar Construction

Table 4

Compensation Table of J.C Aguilar Construction


No. Position Rate per Month
1 President 30,000.00
2 Vice President 15,000.00
3 Operational Manager 40,000.00
4 Executive Secretary 12,806.00
5 Administrative Manager 12,806.00
6 Project Managers 25,000.00
7 HR/Personnel 12,806.00
8 Purchaser 13,000.00
9 Liason Officer 12,806.00
10 Project Coordinator 25,000.00
11 Project Planning Chief Estimator 25,000.00
12 Field Engineer 20,800.00
13 Mechanical Engineer 20,000.00
14 Master 11,180.00
15 Surveyor 18,200.00
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16 Master Plumber 17,680.00


17 Leadman 11,050.00
18 Foreman 20,800.00
19 Office Engineer 16,900.00
20 Safety Officer 13,416.00

B.) Target Market

J.C Aguilar Construction focuses on construction, wreckage/re-

construction projects, expansion and renovations within urban locations. Large

office buildings make up a majority of these projects. It desires to institute and

maintain long-term relationships with clients to develop a referral network and

future repeated business. Government contract projects make up most of the

income. High visibility and competitive bids are critical to captivate this target

market. Contracts from these sources are not dependent on the current market

conditions and will provide revenue even during an economic downturn. J.C

Aguilar Construction already accomplished some government projects such as

developing roads and such.

C.) Marketing Mix

It is defined as the set of marketing tools that a firm uses to pursue its

marketing objectives.it has four broad levels of marketing decision, namely,

product, price, place and promotion.


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c.1. Products or Services

The JC Aguilar Construction caters different construction services that are

needed by the different companies. Their services ranges from electrical and

mechanical works, plant, civil works and also architectural works.

The following are the services they offer:

Electrical and Mechanical Works

● Installation for firefighting facilities


● Transmission, high voltage cable and power distribution system
● Internal, external, street and security lighting system
● Telephone and wiring system
● Water distribution system
● Air conditioning, refrigeration and chilling / cooling system
● Building control system
Plant

● Water treatment facilities


● Asphalt, concrete and crushing plant and other industrial plants
Civil Works

● Site development and Landscaping


● Roads and bridges
● Irrigation and flood control activities
● Water supply, pipelines and storage tanks
Architectural Works

● Apartment Complexes
● Office and Individual Buildings
● Private and Public Housing
● Cultural Religious Facilities
● Loading and Unloading Facilities and Warehouse
● Hospitals and Clinics
● Military Construction
● Environmental Facilities
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c.2. Price

As a service provider entity, its price range varies on the type of work they

will do. They undergone the process of bidding, wherein different entity will

proposed and compete with a stated budget for a certain work and the prospects

will chose. They used the term contract price, a mutually agreed upon total

amount that a client pays to a contractor on the completion of the contract in

accordance with the contracts terms and conditions.

The table below shows some achievements of the entity in the industry

of construction works and their corresponding contract price.

Table 5

List of Completed Projects and its Contract Prices


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c.3. Place or Location

The company has two offices, main office/site and its satellite branch. The

main office is located at Provincial Highway, Paralayunan, Mabalacat, Pampanga

while the satellite office is located at Clark, Pampanga. JC AGUILAR

construction is an easy access if you have a private or own vehicle but when it

comes to commuting it is not advisable. It has a 30 hectares area and has a big

fence for security purposes.

Figure 4: Location of J.C Aguilar Construction


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c.4. Promotion

Currently, the entity does not have existing promotions for its services.

Below are the proposed marketing strategies to attract clients:

1. Word of Mouth

It is an inexpensive way of promoting services wherein satisfied clients will tell

other people how much they like the services provided they offer and how they

do their work properly and efficiently. In this strategy, each clients can captivate

other clients which can yield great benefits and opportunities to the entity. Also,

word of mouth is one of the most credible form of promoting or advertising

because a client’s reputation is at stake when making recommendations.

2. Streamers and Tarpaulins

These tools are also useful to promote the entity’s services. These tools, the

entity can include their contact information for further questions and faster

transactions. These can be posted in the site of the entity or near establishments

that can easily be seen.

D.) Financial Aspect

One of the most important sector of an entity is the financial nature. Every

department has accounting department where every transactions recorded. They

are the responsible for making the financial statements that can determine the

credibility and profitability of the business. These financial statements provides a

summary of the assets, liabilities and the equity of the entity. It can also increase
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the credibility of the company that some of the clients consider when making

decisions. Also, financial statements can help in the decision making of the

company.

The table below shows the financial record of the entity for the past 3

years. It shows that for the past three consecutive years, their current assets is

greater than the current liabilities that shows that the company have the

capability to settle the liabilities incurred during the period. The table also shows

that every year the company’s financial aspect is growing that determined the

capability of a company.

Table 6
Financial Record

Year Total Assets Total Current Total Liabilities Total Current Present Net
Assets & Equity Liabilities Worth

2014 56,593,069.29 24,120,473.10 56,593,069.29 13,067,731.14 43,525,338.15

2015 73,001,442.13 38,334,834.88 73,001,442.13 18,850,258.65 54,151,183.48

2016 111,240425.85 45,491,070.84 111,240425.85 6,906,924.54 104,333,501.00


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Figure 5: 2013 and 2014 Financial Statements of J.C Aguilar Construction

Figure 6: 2013 and 2014 Income Statements of J.C Aguilar Construction


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Figure 7: 2015 and 2016 Financial Statements of J.C Aguilar Construction

Figure 8: 2015 and 2016 Income Statements of J.C Aguilar Construction


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E.) Corporate Social Responsibility

According to UNIDO, Corporate Social Responsibility is a concept that is

adapted by the company that integrates social and environmental factors to their

business and also in interacting with the clients. It is a way to balance its social,

environmental and economic factors that impacts the management of the

business. J.C Aguilar Construction is an entity with lots of workers, in this way

the company helps the people to have their job and also it helps to decrease the

unemployment rate of the society. The company also helped its own municipality.

They give traffic barriers to the Local government of Mabalacat City to place on

the roads or other paths to avoid traffic and make the citizens safe in the road

and they also support a chapel.

Figure 9: Traffic Barrier donated by JCA Construction to Mabalacat City


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Figure 10: Chapel that was supported by the JCA Construction

The Internal Factor Evaluation Matrix

IFE Matrix is a strategy tool used to evaluate firm’s internal environment

and to reveal its strengths as well as weaknesses. It also provides a basis for

identifying and evaluating relationships among those areas.

As shown in the table below, the list of ten (10) internal factors identified in

the internal-audit process, includes both strengths and weakness that affect the

organization. For each factor, a weight is assigned that ranges from 0.0 (not

important) to 1.0 (all-important). The strengths indicate advantages that are

capable to be enhanced and modified to transform into beneficial output. The

weaknesses cover the weak spot that needs to be eradicated or reduced.

The scores for an IFE Matrix can range from a low of 1.0 to a high of 4.0.

The closer the score is to the upper range the better the company is internally.

With the total weighted average of 2.51, J.C Aguilar Construction exactly average
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internally. This indicates that entity is not a weak company internally but that they

also have a significant amount for the company to improve internally.

Table 7
Internal Factor Evaluation Matrix for J.C Aguilar Construction

Key Internal Factors Weight Rating Weighted


Score

Strengths

1. The company’s workers are licensed


and competent 0.11 4 0.44

2. The services are offered at an


affordable contract price 0.10 3 0.30

3.The company is offering projects


ranging from electrical, civil and
architectural works 0.10 4 0.40

4. The company’s financial aspect is


increasing 0.10 4 0.40

5. The company done lots of CSR


related activities that could help the
company to be known. 0.09 3 0.27

Weaknesses

1. The company does not have enough


equipment that are needed for projects. 0.11 2 0.22

2. High cost is incurred in labor force 0.09 1 0.09


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3. Accessibility of the main location of


the company 0.13 1 0.13

4. Uncertainty of the projects due to


bidding procedures 0.08 1 0.08

5. Target Market of the company is


focused mainly in government sector 0.09 2 0.18

Total 1.00 2.51

NOTE: The factor weight ranges from 0.0 (not important) to 1.0 (all-important). While
the ratings are as follows: 4= major strength, 3= minor strength, 2= minor weakness
and 1= major weakness.

The Competitive Profile Matrix

It is a strategic analysis that allows a company to compare its own

company to its competitors wherein it can reveal its strengths and weaknesses.

The table below shows the company’s critical success factors. The market

share have a higher weight because it is a factor that determines the place of the

company in the market, which can contribute to its credibility. It is the minor

strength of J.C Aguilar Construction because it has the second highest market

share of 33% among its competitors while RD Policarpio & Co., Inc., has the

highest market share among the three with the percentage of 35%. The next

factor is the product range of a company. The three competitors have the same

level of variety of products because they are in the same company status which

is a “AAA” Company, the product range of each company is a major strength to


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all. For the service quality, J.C Aguilar Construction got the second highest rating

because as it shown in the market share, it has the second highest percentage.

Lastly, geographical coverage is a major weakness for J.C Aguilar because it is

not an accessible place for the clients wherein it is located in place that is not

commute friendly and it is suggested that you must have a private vehicle going

there. For the Pentagon Industrial Development and Construction, it is a minor

strength because it is located in San Fernando City, Pampanga, and situated

along the road wherein it can be noticed immediately and it is a route going

Angeles where in that case it is a exposure for them.. And for the R.D. Policarpio

& CO., Inc., geographical coverage is a major strength because it is situated in

Dau, Pampanga that is a bridge that connects to more places in Pampanga and

other parts of Luzon.

Table 8
Competitive Profile Matrix of J.C Aguilar Construction
Pentagon
J.C Aguilar R.D. Policarpio
Industrial Dev’t
Construction & CO., Inc.
& Construction
Critical Success
Weight Rating Score Rating Score Rating Score
Factors
1) Product
0.20 4 0.80 4 0.80 4 0.80
Range
2) Service
0.20 3 0.60 4 0.80 3 0.60
Quality
3) Management
0.20 2 0.40 3 0.60 2 0.40
Competency
4) Geographical 0.15 3 0.75 4 1.00 2 0.50
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coverage

5) Market Share 0.25 1 0.15 4 0.60 3 0.45

TOTAL 1.00 2.70 3.80 2.75

Note: The ratings values are as follow: 1 = major weakness, 2 = minor weakness, 3 =
minor strength, 4 = major strength.

V. Strategy Formulation

5.1 Grand Strategy

It has four strategy quadrants. The first quadrant represents strategies for

maintaining rapid growth when you have a strong competitive position. The

second offers rapid-growth strategies when you have a weak competitive

position. The third provides strategies that relate to a weak competitive position

and slow growth. The final quadrant lists strategies appropriate to strong

competitive attributes with slow market growth.

JCA Company is in Quadrant I because it has to maintain its competitive

edge and continue to create rapid growth. The company has developed its own

batching plant to cater the needs of clients and to make sure that the shortage of

necessary materials will be avoided. This batching plan also increases the

services that the company has to offer. Its services could satisfy and cater the

needs of the clients, and expensive contract price would not be a problem

because the company offers services with affordable and reasonable prices. It

should concentrate on the development of its market to be more competitive


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towards others (market development) and improve its services that can caters all

the demands of the clients (service development).

RAPID MARKET GROWTH

Quadrant II Quadrant I

1. Market Development 1. Market Development (S1)


2. Market Penetration 2. Market Penetration
3. Product Development 3. Service Development (S2)

STRONG COMPETITIVE POSITION


4. Horizontal Integration 4. Forward Integration
WEAK COMPETITIVE POSITION

5. Divestiture 5. Backward Integration


6. Liquidation 6. Horizontal Integration
7. Related Diversification

Quadrant III Quadrant IV

1. Retrenchment 1. Related Diversification

2. Related Diversification 2. Unrelated Diversification

3. Unrelated Diversification 3. Joint Ventures

4. Divestiture
5. Liquidation

SLOW MARKET GROWTH


Figure 11: The Grand Strategy of J.C Aguilar Construction

5.2 TOWS/SWOT Matrix

The Threats-Opportunities-Weakness-Strength (TOWS) Matrix was used

in the study. TOWS Matrix is an effective technique that emphasizes on the

external opportunities and threats while analyzing the internal strengths and
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weaknesses of a company. The TOWS matrix functions as the matching tool in

developing strategies for the organization.

Strength-Opportunities Strategy

J.C Aguilar Construction program can take advantage of its opportunities

using its strength. It must make a relationship with different government

institutions including private institution. It can expand its target market by

introducing new products to the government and also to foreign investors that

can increase the financial aspect of the company. Also, J.C Aguilar Construction

must reserve or maintain its construction materials that will be available to use so

that there will be no shortage of materials and make sure that the materials are

high quality.

Weakness-Opportunies Strategy (WO)

The organization’s weaknesses can also be overcome through its

opportunities such as making a stronger relationship with the government that

can add up to the market share of the company. It can also widen its target

market to the foreign clients that would increase in the company’s financial

aspect. Also, it can purchase enough materials that can be used so that they can

provide better services to the public.

Strength-Threats Strategy (ST)

Threats of the company can be minimized by the use of its strengths. The

organization may highlight the quality services offered, availability of resources


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such as equipment and having skilled and competent workers. The company can

also make an advancement on the technology to be more competitive in the

market.

Weaknesses-Threats Strategy (WT)

Furthermore, strategies can be formulated to address the organization’s

weaknesses and threats. The company can improve its fixed assets that are

present to provide a better services to the public and to its respective clients. The

company can also enlarge its target market by not only considering the

government but also the private sectors that can add up to the credibility and the

market share of the company and also increase its competitiveness in the

market.
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Table 9
The TOWS Matrix

STRENGTHS WEAKNESSES

S1. The company’s W1. The company


workers are licensed does not have enough
and competent equipment that are
needed for projects.
S2. The services are
offered at an affordable W2. High cost is
contract price incurred in labor force

S3. The company is W3. Accessibility of


offering projects the main location of the
ranging from electrical, company
civil and architectural
works W4. Uncertainty of the
projects due to bidding
S4. The company’s procedures
financial aspect is
increasing W5. Target Market of
the company is
S5. The company focused mainly in
done lots of CSR government sector
related activities that
could help the company
to be known.

OPPORTUNITIES SO STRATEGIES WO STRATEGIES

O1. The President’s Offer new services that Make a stronger


Program for Public even the foreign relationship with the
Infrastructure will give countries will patronage government and
many Projects to the so that the financial institutions that results
Company. stability of the company to an increase of the
will increase (S4:O2) market share (W5:O1)
O2. Foreign investments
would give projects to the S1: Market S1: Market
company. Development Development
S2: Service
O3. Decongestion of Development Increase its foreign
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Metro Manila will open Focus more on civil clients so that there will
the doors to the company works like developing be sufficient amount to
for projects. roads and such that be given to the workers
can increase the so that they are
O4. Devastation of financial aspect of the motivated to improve
calamity will give the company (S3,S4:O3) their performances
construction companies a (W2:O2)
lot of project for S1: Market
restoration. Development S1: Market
S2: Service Development
O5. Availability of Development
Construction Materials is Widen the target
Reserve materials that
sufficient in the market market of the company
are needed for the
to the foreign investors
company to give a
that can add up to the
better services to the
financial aspect of the
market (S3:O5)
company (W5:O2)
S2: Service
S1: Market
Development
Development
Make a good
Purchase enough
relationship with the
materials and
government that can
equipment that can
increase on the target
improve the company
market of the company
and its services
as well as to utilized its
(W1:O5)
workers (S1:O1)
S2: Service
S1: Market Development
Development

Take advantage of the


calamities that are
happening by offering
services at an
affordable price that
can results on more
investors or clients and
also the company can
take social
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responsibilities
(S2,S5:O4,O5)

S1: Market
Development

THREATS ST STRATEGIES WT STRATEGIES

Have an advanced Improve the number of


technology to improve fixed assets present in
T1. Advancement of the the services offered to the company to
Technology could affect the publics (S3:T1) improve more its
the Competitive services (W1:T1)
S2: Service
advantage of the Development S2: Service
Company. Development
Be more competitive by
T2. Different standards of improving the services Improve the target
procedures could be offer, increase the market by considering
applied when it comes to availability of materials not only the
calamities. and equipment and government sectors
T3. Inflation in the price choosing skilled and but also private sectors
Construction Materials competent workers to increase its
needed for project (S1,S3:T3,T5) competitiveness
fulfillment that could against the competitors
S2: Service
threaten the company. (W5:T5)
Development
S1: Market
T4. Complexity of Adjust the company’s
Development
Projects when it comes to CSR related to cope up
culture and generational with the another Increase the company’s
differences. environment and flexibility when it comes
culture with its clients in culture (W5:T4)
T5. Almost the same level
and surroundings S1: Market
of market share could
(S5:T4) Development
affect the company when
it comes competitive S1: Market
advantage. Development
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5.3 The Internal-External Matrix

The IE matrix is another strategic management tool used to analyze

working conditions and strategic position of a business. The Internal External

Matrix or short IE matrix is based on an analysis of internal and external business

factors which are combined into one suggestive model. It determines the best

strategies that the company may opt to used based on the total weighted score

of IFE and EFE. It also determine the quadrant the company falls and the specific

strategies given in the selected quadrant.

According to table 6, the IFE total weighted score is 2.51 (x-component),

while the EFE total weighted score is 2.62 (y-component). In the figure shown

below, the company falls to cell V under region 2, which signifies that the

company must hold and maintain its position. This implies that the company

should pursue the strategies that are focused on market penetration and product

development. The focus of market penetration is to sell its existing services to

gain a higher market share. While the focus of product development is to improve

and increase the company’s market share by responding or satisfying the

demand of the clients.


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Figure 12: The IE Matrix of J.C Aguilar Construction

5.4 Financial Audit

The financial condition of an organization is one of the best measures of

competitive position and attractiveness to its investors. It is vital to determine the

strengths and weaknesses an organization has in formulating effective

strategies. Financial statements for the years 2014, 2015 and 2016 of J.C Aguilar

Construction will be used to approximate industry standards.

I. Liquidity Ratios

It is a measurement to the ability of a company to pay off its current

liabilities as they are due and also their long-term liabilities. It also shows the

cash levels of a company and the ability to turn others assets into cash easily. It
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is done by comparing the company’s most liquid assets with its short-term

liabilities or obligations.

a. Current Ratio

It measures the company’s ability to pay its short-term obligations with its

current assets. As for the J.C Aguilar Construction, it has a 1.85 current ratio for

the year 2014 that signifies that the company is can able to cover its short-term

obligations and will not face a problem regarding the settlement of any

obligations. In the year 2015, its current ratio increased to 2.03 that show a great

sign for the company to improve its services and to be motivated. In the year

2016, it yield a 6.59 ratio that proved that the company can still cover its short-

term debts and able to operate. In the past three years of the operation its

current ratio shows that the company is able to settle its obligations through its

assets without having a problem of being insolvent, it also shows that every year

its current ratio is increasing. In this, market development strategy can be used

by always maintaining the current assets properly and secure that it is always

greater than the liabilities to ensure that the company can cover its short-term

obligations that can increase to the credibility to the consumers and investors

that results to having a higher market share.

Table 10
Current Ratio
CURRENT RATIO
2014 2015 2016
1.85 2.03 6.59
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II. Leverage Ratios

It measure how leveraged a company is and a company’s degree of

leverage is often measure of risk. It indicates the level of debt incurred by a

company

a. Debt-to-Total-Assets Ratio (Debt Ratio)

It shows a percentage of total assets that were financed by creditors,

liabilities and debt rather than equity. It is used to determine the financial risk of a

business. A ratio of greater than 1 indicates that a proportion of the assets are

being funded by debts, while a low ratio indicates that most of the assets funding

are coming from the equity. A ratio that is greater than 1 also indicates that the

company may be putting itself at risk of being able not to settle its liabilities or

debts.

Shown on the table below is the J. C Aguilar debt ratio. In the year 2014 it

has a percentage of 42%, in 2015 it has a percentage of 44% and in the year

2016 it has a percentage of 18%. In the 3 years of operation, J. C Aguilar has a

ratio that is lower than 1 that indicates the most of the assets funding came from

the equity and also shows that the company itself can able to cover its liabilities,

debts and creditors. Market development strategy can used with these ratios that

can also add up to the credibility to the company that can attract foreign

investments
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Table 11
Debt to Total Assets Ratio
DEBT TO TOTAL ASSETS RATIO
2014 2015 2016

42% 44% 18%

III. Activity Ratios

Is a financial analysis tools used to gauge the ability of a business to

convert various asset, liability and capital accounts into cash or sales. The faster

the company is able to convert its assets into cash, the more efficient it runs.

a. Fixed Asset Turnover

It compares the net sales and the net fixed assets. It is also used to

evaluate the operating performance of the company. It is a tool that is very useful

an outside observer that wants to know how well a company utilized its fixed

assets such as plant and equipment to generate sales.

Shown below is the fixed asset turnover of J.C Aguilar Construction for the

last 3 years. For the year 2014, it has a value of 4.31x, for the year 2015 it has a

6.30x and for the year 2016 it has a 2.01x. It shows that the fixed assets of the

company are well-utilized to generate and accumulate revenues. With this result,

the company can use the market development strategy. In this, the company will

improve its current target market to utilize well its fixed assets that can be a

source to generate greater sales.


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Table 12
Fixed Asset Turnover
FIXED ASSET TURNOVER
2014 2015 2016

4.31 6.30 2.01

b. Total Asset Turnover

It measures the company’s ability to generate revenues from its assets by

comparing the sales with the company’s total assets. It is a general efficiency

ratio that measures how efficiently the company uses its assets. As shown

below, the company has a 2.48x turnover for the year 2014, 2.99x turnover for

the year 2015 and 1.19x turn over for the year 2016. It shows that the company’s

total asset turnover is fluctuating every year but it is efficiently utilizing its assets

to earn revenues or sales. The company can used the market development

strategy and service development strategy. Improving its assets that can help to

provide a better services to the consumers must be focused and also through the

betterment of its assets it can increase its target market not only in the

government sectors but also to the private sectors because the latter can be

assured that their trust to the company will not be broken.

Table 13
Total Asset Turnover
FIXED ASSET TURNOVER
2014 2015 2016

2.48 2.99 1.19


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IV. Profitability Ratios

Is a measure of profitability, which is a way to determine a company’s

performance. It is used to assess the company’s ability to generate earnings

compared to its expenses and other relevant costs incurred during a specific

period of time. Profitability ratios focus on the company’s return on investments.

a. Gross Profit Margin

Is a tool that indicates the company’s overall financial health. It discloses

the percentage of funds left for the company for its operation, expansion, debt

settlement and other expenses and able to yield profits. It is calculated by

comparing the sales less cost of goods sold/services with the total sales. A

higher percentage of gross profit margin indicates that the company have

sufficient fund for its operation and settling its obligations. As shown below, the

gross profit margin of the company is not too high, but it indicates that the

company has still an amount of funds to cover its operating expenses. The

strategy that can be used by the company is the market development. Through

the results of gross profit margin, it can attract more clients because clients

knows that the company is credible enough to be trusted.

Table 14
Gross Profit Margin
GROSS PROFIT MARGIN
2014 2015 2016

11% 8% 10%
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b. Net Profit Margin

It is the percentage of sales left after the deductions of all its operating

expenses. It reveals the total profit that is generated. A high net profit margin

indicates that a business is pricing its products correctly and is exercising good

cost control. As shown below, the J.C Aguilar Construction’s net profit margin is

not too high but it indicates that even though it has a low percentage it can still

manage to have profits. With this, the company can used the service

development strategy, wherein the company can introduce new services by

improving its PCAB license category so it can able to offer a wide variety of

services that is new and in demand to its market.

Table 15
Net Profit Margin
NET PROFIT MARGIN
2014 2015 2016

1% 4% 3%

Financial Projections

Financial projections are important they give an estimated financial

statement for the next year of operation. Therefore, these are one of the

important factor to determine the strategies that will be using. Significant variance

may provide an early warnings signs for problems that may arise in the operation

and with these signs can used to improve the past strategies.
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Based on the previous financial statements of the company, the statement

of comprehensive income and statement of financial positions were able to

project. In the 2017 operation, the company’s projected sale will become

P163,612,953.13 which is 80% higher than the sales in the year 2016. While the

projected cost of services for 2017 is P148,300,812.79 which is higher than the

cost of services acquired in the year 2016. Overall, the projected net income for

2017 is P6,095,877.78 which is higher than the net income acquired from 2016. It

signifies that the company is financially stable and also capable of settling its

obligations. It also signifies that the company still needs to develop its market to

gain higher income. With this, J.C Aguilar Construction can use the market

development strategy wherein they will introduce its existing products to a wider

range of target market that can increase the market share of the company and

also to be well known in the market. The company can also use the product

development strategy wherein the company will improve its services offered by

upgrading its PCAB license so that it can caters more clients even foreigners.

Like with the projected income statement of J.C Aguilar Construction, its

projected statement of financial position also reflects a positive impact on the

company. The projected statement of financial positions shows that at some

point is lower than the previous year. But it also show that the company can able

to cover or settle its liabilities with its existing assets and still can able to gain a

higher income. With these, it can also add up to the credibility of the company
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because clients knows that the company is reliable and financially stable and

there are no problems may arise from its operations.

J.C Aguilar Construction

Statement of Comprehensive Income

Projected

2014 2015 2016 2017

Revenues 140,058,110.64 218,372,606.05 132,408,142.70 163,612,953.13

Cost of
Services (125,228,190.77) (200,075,727.34) (119,598,520.26) (148,300,812.79)

Gross
Income 14,829,919.87 18,296,878.71 12,809,622.44 15,312,140.34

Operating
Expenses (6,296,865.90) (5,524,064.12) (5,589,051.72) (5,803,327.25)

Finance
Cost (176,477.68) (752,356.30) (1,070,203.33) (666,345.77)

Income
before
Income Tax 8,356,576.29 12,020,458.29 6,150,367.39 8,842,467.32

Income Tax
Expense (2,591,104.41) (3,763,546.65) (1,885,117.57) (2,746,589.54)

NET
INCOME 5,765,471.88 8,256,911.64 4,265,249.82 6,095,877.78
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J. C Aguilar Construction

Statement of Financial Position

ASSETS 2014 2015 2016 2017

Current Assets:

Cash 3,580,169.36 3,003,396.62 1,234,612.30 2,606,059.43

Trade & Other


Receivables 12,012,156.69 15,556,595.60 30,810,508.70 19,459,753.66

Other Current
Assets 8,528,147.05 19,774,846.66 13,445,949.84 13,916,314.52

Total Current
Assets 24,120,473.10 38,334,838.88 45,491,070.84 35,982,127.61

Non-Current
Assets:

Plant &
Equipment 15,290,596.19 14,484,607.25 13,120,355.00 14,298,519.48

Other Non-
Current Assets 17,182,000.00 20,182,000.00 52,629,000.00 29,997,666.67

Total Non-
Current Assets 32,472,596.19 34,666,607.25 65,749,355.00 44,296,186.15

TOTAL ASSETS 56,593,069.29 73,001,446.13 111,240,425.84 80,278,313.76

LIABILITIES & EQUITY

Current Liabilities:

Income Tax
Payable 15,626.02 7,777.34 7,801.12

Accounts
Payable &
Accrued Expense 13,052,105.11 18,850,258.65 6,899,147.20 12,933,836.99

Total Current
Liabilities 13,067,731.13 18,850,258.65 6,906,924.54 12,941,638.11
Strategic Management Plan for J.C. Aguilar Construction 56
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Non-Current
Liabilities:

Loans Payable 10,800,000.00 13,000,000.00 13,300,000.00 12,366,666.67

TOTAL
LAIBILITIES 23,867,731.13 31,850,258.65 20,206,924.54 25,308,304.77

Equity

J.C Aguilar,
Capital 32,725,338.16 41,151,183.48 61,858,501.31 45,245,007.65

Revaluation
Surplus 29,175,000.00 9,725,000.00

TOTAL EQUITY 32,725,338.16 41,151,183.48 91,033,501.31 54,970,007.65

TOTAL
LIABILITIES &
EQUITY 56,593,069.29 73,001,442.13 111,240,425.85 80,278,313.76

5.5 The Quantitative Strategic Planning Matrix

The Quantitative Strategic Planning Matrix (QSPM) indicates which

alternative strategies are best. The QSPM uses inputs from analyses like the

EFE Matrix, IFE Matrix, CPM Matrix, coupled with TOWS Matrix, IE Matrix, and

Grand Strategy Matrix. The QSPM is a tool that permits strategists to evaluate

alternative strategies, based on previously identified external and internal key

success factors. The QSPM requires assigning of ratings, which are called

Attractiveness Scores (AS). The ratings/scores that can be given to a factor

ranges from 1 to 4, 1 = not attractive, 2 = somewhat attractive, 3 = reasonably

attractive, 4 = highly attractive. The rating/score given is based on how a


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company’s strategy enables it to either capitalize on the strength, improve on the

weakness, exploit the opportunity, or avoid the threat.

The strategies in the QSPM were drawn from the Grand Strategy Matrix.

Among the seven strategies given in Quadrant I, two of them were chosen

namely: Market Development and Product Development. The strategy that is

given a rating/score of 4 means that particular strategy is deemed more attractive

for a given factor, as compared to other strategies.

Overall, the results of the QSPM for J.C Aguilar Construction reveal that it

should give more attention to developing its market. The “Market Development”

strategy got the highest sum total attractiveness score of 3.95, followed by

“Service Development” which has a total of 3.76. In conclusion, the firm should

focus more on developing a bigger market for its existing services and also

developing or improving its services offered to its clients.

Table 16
Quantitative Strategic Planning Matrix
Market Service
Development Development

Key Factors Weight AS TAS AS TAS

Opportunities

1. The President’s Program for Public 0.13 4 0.52 2 0.27

Infrastructure will give many Projects


to the Company.

2. Foreign investments would give 0.12 3 0.36 3 0.36


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projects to the company.

3. Decongestion of Metro Manila will 0.10 2 0.20 1 0.10

open the doors to the company for


projects.

4. Devastation of calamity will give 0.08 2 0.16 4 0.32


the construction companies a lot of
project for restoration.

5. Availability of Construction
0.07 2 0.14 3 0.21
Materials is sufficient in the market

Threats

1. Advancement of the Technology 0.12 3 0.36 4 0.48


could affect the Competitive
advantage of the Company.

2. Different standards of procedures


could be applied when it comes to 0.11 1 0.11 2 0.22
calamities.

3. Inflation in the price Construction


0.11 2 0.22 3 0.33
Materials needed for project fulfilment
that could threaten the company.

4. Complexity of Projects when it 0.07 1 0.07 1 0.07


comes to culture and generational
differences.

5. Almost the same level of market


share could affect the company when 0.09 2 0.18 1 0.09
it comes competitive advantage.
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Total 1.00 2.32 2.45

Strengths

1. The company’s workers are 0.11 2 0.22 2 0.22


licensed and competent.

2. The services are offered at an


0.10 2 0.20 2 0.20
affordable contract price.

3. The company is offering projects


ranging from electrical, civil and 0.10 2 0.20 2 0.20
architectural works.

4. The company’s financial aspect is


increasing.
0.10 2 0.20 1 0.10
5. The company done lots of CSR
related activities that could help the
company to be known.
0.09 2 0.18 1 0.09

Weaknesses

1. The company does not have 0.11 1 0.11 1 0.11


enough equipment that are needed
for projects.

2. High cost is incurred in labor force.


0.09 1 0.09 1 0.09
3. Accessibility of the main location of
the company. 0.13 2 0.27 1 0.13

4. Uncertainty of the projects due to


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bidding procedures. 0.08 1 0.08 1 0.08

5. Target Market of the company is


focused mainly in government sector.
0.09 1 0.09 1 0.09

Total 1.00 1.63 1.31

Sum Total Attractiveness Scores 3.95 3.76

VI. Strategies, Programs, Activities and Tasks, and Resource Requirements

(SPATRES)

The Strategies, Programs, Activities and Tasks, and Resource

Requirements (SPATRES) are set based from the strategies derived on the

TOWS Matrix—Market Penetration and Product Development Strategy.

SPATRES - Market Development

Objective 1: To increase market share by developing untapped markets in

Region III

The following strategies can be pursued by JCA in order to expand its market

share:

Strategy 1: Develop a solid marketing plan

An effective strategy for your construction marketing plan will help JCA

grow its business. JCA should develop a strategy that gives its business a clear

competitive advantage and focuses on market sectors that are growing. Market

conditions vary across the construction industry, with different rates of growth in

residential, public, retail, civil engineering and office building sectors, making it
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important to identify the niche where it want to compete. JCA’s strategy should

take account of opportunities for refurbishing existing buildings, as well as taking

on new-build projects.

Strategy 2: Build and maintain a good long-term working relationship with clients

One of the biggest goals is to acquire repeat business from our clients. To

do that, the company must develop and nurture great relationships with our

existing clients. By offering their quality craftsmanship and to work hard to

develop a great working relationship with every client.

Having a strong relationship with our clients allows us to build better

structures. For one, a trusting, mutually beneficial relationship with a client

creates an atmosphere of joint ownership. It’s a partnership because clients and

JCA both have a stake in the project. Of course, the client wants quality work

because they are paying for it and they need it to function the way it’s supposed

to. They also need it to still be standing decades from now. JCA aims for quality

work because the name is on the project. JCA have a reputation to uphold and

therefore, they need to do great work. Both the general contractor and the client

have plenty of reasons to form a good relationship.

JCA best clients’ top priority is the finished outcome of their building. The

company should create an atmosphere of partnership, not of competitiveness.

This will result in an equal relationship between JCA and the client, one where

they are matched perfectly at the beginning. This will dramatically reduce the

amount of miscommunications during the building process.


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A successful building project takes effort from both the general contractor

and the client. It’s a two-way street. All of this creates a sense of teamwork,

collaboration, and joint ownership which results in the best building possible.

Strategy 3: Follow Industry Trends

JCA needs to keep an eye on all industry trends. These will help JCA to

avoid struggling niches, while also pinpointing industry segments on the rise.

Knowing these shifts let JCA focus on gaining revenues from already surging

industries. Additionally, JCA can stay ahead of the game by predicting which

construction types will gain prominence in the coming years.

Table 17
SPATRES (Market Penetration Strategy) for Objective 1
Task/ Time
Strategies Program/s Activities Resource/s
Frame

Marketing
Posting signs on
Department
recently finished P700 per
/Every
construction finished project
finished
projects
projects
Strategy #
1:
Create an
Developing Marketing
Advertising advertisement in
a solid Department
social media like
marketing /continuous
Facebook
plan

Marketing
No additional
Word of mouth Department
cost
/continuous
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List the
Marketing
construction firm
Department P5,000
to certain
/ once
directories

Online
Directories

Marketing
List the services
Department
offered by the P5,000
/ Regular
company
Updates

Marketing
Create a social Department No additional
media page /Regular cost
updates

Marketing
Show off plans
Social Media Department No additional
for future
Marketing /Regular cost
projects
updates

Marketing
Monitor Department No additional
feedbacks /Regular cost
updates
Marketing
Writing helpful, Department No additional
quality content /Regular cost
updates
Marketing
Updating results
Department No additional
Blogging of finished
/Regular cost
projects
updates
Marketing
Monitor Department No additional
feedbacks /Regular cost
updates
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Build a good
working Project
No additional
relationship with Managers/
cost
its organizers Continuous
and members

Participate in
events and
trade shows

Marketing
department
Present product and project P60,000/year
managers/
twice a year
Task/ Time
Strategies Program/s Activities Resource/s
Frame
Operations
Posting signs on Manager/
recently finished Every client P700 per
construction or finished finished project
projects project

Operations
and Project
Quality Monitor the Manager/
No additional
Control work progress Every client cost
of the project or finished
Strategy # project
2: Build
and Operations
maintain a Ask for a Manager/
No additional
good long- feedback from Every client
cost
term the client or finished
relationship project
with clients Operations
and Project
Frequent Update the client Manager/
No additional
Meetings throughout every Every client cost
with clients step of the project or finished
project
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Operations
Ensuring our and Project
clients are
Manager/
happy and No additional
answer any Every client cost
questions they or finished
may have project

Operations
and Project
Explain detailed
Manager/
contract that No additional
sets Every client cost
expectations or finished
project

Operations
Regular
Manager/
meetings with No additional
Every client
the project cost
or finished
managers
project
Operations
Manager/
Monitor the
Meeting Every client No additional
work progress
deadlines or finished cost
of the project
project

Operations
Give detailed, Manager/
No additional
clear, and Every client
cost
realistic timeline or finished
project
Operations
Outline the
Manager/ No additional
scope of the
Every client cost
project
or project
Create detailed Operations
Work with contract that Manager/ No additional
them sets Every client cost
expectations or project
Operations
Give detailed
Manager/
timeline and show No additional
Every client
them the cost of cost
or finished
the project
project
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Operations
Ask the client if
Manager/
their needs No additional
Every client
have been cost
or finished
addressed
project
Ask the client if
Operations
the building is No additional
Manager/
performing the cost
Every client
desired function
Ask for a Ask these
feedback questions:
from the “Which parts of
client the building
process went Operations
well? Which Manager/
parts could have Every client No additional
gone better? or finished cost
What could we project
do differently to
ensure a more
efficient, better,
or safer building
process?”
Task/ Time
Strategies Program/s Activities Resource/s
Frame
President
Research about and
No additional
new relevant Operation
cost
technologies Manager/
once a year
Modify the
Strategy # Keep
services to offer President/
3: Follow technologies
to change with continuous
Industry up-to-date
the times
Trends
Add new
services by
implementing President/
new continuous
technological
advance
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Research about
President
Project Manager
and
Software No additional
Operation
(advantages cost
Manager/
and
once
disadvantages)

Project
Invest if President /
Manager P5,000
necessary once
Software

Monitor the
President
improvements
and
of projects No additional
Operation
through project cost
Manager/
manager
continuous
software
Depends on
President
the price set by
and
Invest on young young
HR/once
engineers engineers,
every three
provided that it
years
is reasonable

President
Research about and
the trends in the Operation
Modern No additional
industry and and Project
designs cost
how can follow Managers
those trends /once every
two years

Conduct a HR/
seminar that Operation
would help the and Project
P5,000
employees Managers
about the trend /once every
in the industry two years
President
and
Operation
Analyze the No additional
Bloggin and Project
trends cost
Managers
/once every
two years
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President
and
Apply those
Operation
trends that are No additional
and Project
relevant to the cost
Managers
company
/once every
two years
President
and
Allocate a Operation
budget for the and Project
trends Managers
/once every
two years
President
and
Research about Operation No additional
green project and Project cost
Managers
/continuous

President
Allocate Budget and
Greater for it Operation
emphasis on Manager/
green continuous
projects
President
Use this green and
projects to Operation
market the Managers/
company every
finished
project

Objective 2: To develop market in NCR

The cost to building your house or commercial building in the Philippines

depends on the location ( is it possible to use truck to bring the materials or do

they have to be carried?), total floor area, the logistics/accessibility,


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regulations/restrictions of the local government or subdivision, soil type, site

preparation, neighbor buildings, availability of local skills labor, source of

electricity/water etc. plus you have to select what construction methods have to

be used and what level of finishing you want (low-cost, average or high-class).

Only Manila and Cebu have all the building- materials available that a

construction firm needs. Hardware stores in the provinces offer limited brands

and are expensive because of scarce supply. NCR also has a lot of possible

projects to be offered.

Strategy 1: Research about possible projects

According to ph.linkedin.com, there are 421 constructions job in NCR.

Research about possible projects would help JCA to gain knowledge about the

transactions that are needed in NCR and be knowledgeable about possible

clients to provide good service and cater their needs. Possible project research is

an important guide for business and when used effectively can inform decisions

which contribute to the success of the company. Conducting regular construction

project research allows insight into the decision making process and the

influences on service specification.

Strategy 2: Research about construction materials available in NCR

Materials research is an important part of the design process in

construction. Engineering theory is largely based on the characteristics of

construction materials, which makes it necessary to carry out tests on them

before embarking on construction. Pre-testing the materials often makes it


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possible to see and prevent various costly and even dangerous problems.

Comprehensive testing during the design and implementation process often

leads to lower construction costs.

Strategy 3: Research about the construction industry in NCR

All companies buy and hire factors of production, in the form of labor,

material and equipment. Initially capital is borrowed or saved to purchase the

goods, which are then turned into other products, which are sold at a profit, the

lender of the capital thus being rewarded for putting money at risk. The company

that knows the market well is thus in a better position to improve its

competitiveness and profitability.

Table 18
SPATRES (Market Penetration Strategy) for Objective 2
Time
Strategies Program/s Activities Frame/Tasks Resource/s
President
Conduct a and
No
research about Operation
additional
the requirement and Project
cost
in NCR Managers
/continuous
President
Research
and
about Conduct a No
Operation
transactions research about additional
and Project
that are the risk cost
Managers
needed
/continuous
President
Study and
and
observe No
Operation
construction additional
and Project
companies in cost
Managers
NCR
Strategy # /continuous
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1: Research President
about Review business and
No
possible information Operation
additional
projects provided by the and Project
cost
locals Managers
/continuous
President
Gain insightful
and
Research information and No
Operation
what’s already new leads for additional
and Project
been done information at the cost
Managers
same time
/continuous
President
Read or watch
and
national media to No
Operation
learn about additional
and Project
construction cost
Managers
opportunities
/continuous
President
and
Look for gaps in No
Operation
the necessary additional
and Project
information cost
Managers/
continuous
President
Decide on the
and
Survey best research No
Operation
Construction methods for additional
and Project
Market Trends gathering this cost
Managers/
information
continuous
President
and
No
Analyze gathered Operation
additional
information and Project
cost
Managers/
continuous
President
and
Analyze No
Organize the Operation
Construction additional
results and Project
Market Data cost
Managers/
continuous
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President
and
No
Determine the Operation
additional
highs and lows and Project
cost
Managers/
continuous
President
and
Make a No
Operation
conclusion from additional
and Project
the results cost
Managers/
continuous
President
Give them a call and No
and ask for an Operation additional
advice Manager/ cost
continuous
Leverage the President
Attend building
knowledge of and No
and construction
other Operation additional
industry trade
professionals Manager/ cost
shows
continuous
President
Join and No
organizations and Operation additional
associations Manager/ cost
continuous
President
and No
set the context of
Operation additional
your research.
Manager/ cost
continuous
Strategy # Do a Look up your
2: Research preliminary keywords in the
about search for appropriate titles
construction information in the library's
materials President
Reference
available in and No
collection and in
NCR Operation additional
other sources
Manager/ cost
such as our
continuous
catalog of books,
periodical
databases, and
Internet search
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engines.

President
Analyze the and No
collected Operation additional
information Manager/ cost
continuous
President
and
Gather and No
Operation
organize the additional
and Project
results cost
Managers/
continuous
President
Evaluate the and
No
collected Determine the Operation
additional
information highs and lows and Project
cost
Managers/
continuous
President
and
Make a No
Operation
conclusion from additional
and Project
the results cost
Managers/
continuous
President
and
Find a supplier No
Operation
who could supply additional
and Project
materials on time cost
Define a Managers/
supply chain continuous
management President
Negotiate with and
No
suppliers about Operation
additional
the cost of and Project
cost
materials Managers/
continuous
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President
Make the and
No
suppliers as Operation
additional
construction and Project
cost
materials partner Managers/
continuous
President
Choose a
and
supplier which No
Operation
offers materials additional
and Project
with reasonable cost
Managers/
price
continuous
President
Choose a and
Choose a No
supplier that has Operation
supplier additional
a reputation for and Project
cost
highest quality Managers/
continuous
Choose a President
supplier that is and
No
reliable when it Operation
additional
comes to and Project
cost
providing timely Managers/
deliveries continuous
President
and
No
Take direct Operation
additional
communication and Project
cost
Managers/
continuous
President
Leverage Establish and
Construction No
customer to Operation
Materials additional
supplier and Project
Partners cost
relationship Managers/
continuous
President
Determine the and
No
most advantage Operation
additional
procurement and Project
cost
processes Managers/
continuous
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President
Research about and
No
the share for Operation
additional
each of the major and Project
cost
competitors Managers
/continuous
President
Analyze Research about and
competition for No
the past Operation
contracts additional
performance of and Project
cost
other companies Managers
/continuous
President
Research about
and
the areas of No
Operation
contracting which additional
and Project
are favorable and cost
Managers
unfavorable
/continuous
Strategy # President
Research about
3: Research and
the specific No
about the Operation
opportunities for additional
construction and Project
finding patterns cost
industry in Managers
and trends
NCR /continuous
President
Analyze Research about and
No
potential of forecast of Operation
additional
new business growth and Project
cost
opportunities Managers
/continuous
President
Research about
and No
government
Operation additional
regulations and
manager cost
laws in the area
/continuous
Research on how
Analyze the President
to access long-
competition for term capital and and No
resources Operation additional
business
manager cost
development
/continuous
skills
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President
Research about and No
reliable sources Operation additional
of labor manager cost
/continuous
President
Research about and No
reliable source of Operation additional
materials manager cost
/continuous
President
Research about and No
the working style Operation additional
of subcontractors manager cost
/continuous
President
Research Research about and No
about the regulatory Operation additional
subcontractors issues manager cost
/continuous
President
Determine the
and No
scopes of works
Operation additional
conducted by
manager cost
subcontractors
/continuous
President
and No
Plan resources
Operation additional
for market entry
manager cost
/continuous
Develop a President
separate Focus on and No
marketing plan resources for Operation additional
for different market entry manager cost
market sectors /continuous
President
Maintained
and No
working
Operation additional
relationships with
manager cost
clients
/continuous
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Objective 3: To develop market in Central Visayas

The construction boom in Cebu continues as it ranked fourth among

provinces nationwide with most number of construction projects.

Based on latest data from the Philippine Statistics Authority, Cebu

province recorded a total of 1,518 constructions based on approved building

permits last quarter, accounting for 4.2 percent of all constructions nationwide.

Bohol has also showed a booming construction sector with a total of 1,109

constructions in the second quarter, ranking ninth and accounting for 3.1 percent

of nationwide constructions.

In general, Central Visayas, where the two provinces belong, ranked

fourth among regions with most number of construction activities in the second

quarter. Region 7, which also covers Siquijor and Negros Oriental, recorded a

total of 2,667 constructions during the period, accounting for 7.4 percent of the

national pie which is led by CALABARZON with a 26.3 percent share. In terms of

value of construction, the share of the top five regions amounting to P56.0 billion

comprised 73.9 percent of the total.

Central Visayas ranked third in terms of construction value at P8.2 billion,

accounting for 10.8 percent of the nationwide total. The Central Visayas

economy grew by 8.8 percent last year. The region's growth last year was

propelled by the 14.6 percent growth in the industry sector and the biggest
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contributor to this growth was the construction subsector which grew by 40

percent in 2016.

Efren Carreon, regional head at the National Economic and Development

Authority, had said construction activities in Central Visayas will continue to

remain upbeat in the next plan period as the private sector continued to invest in

real estate development projects, coupled with high government spending on

infrastructure.

Strategy 1: Tie-up with local government of Central Visayas

Completing a new construction project, renovation, or addition to your

current business facility is never as easy as erecting a few beams and slapping

on some drywall. The process takes time to develop a detailed plan, acquire the

materials necessary, and coordinate with local government agencies. That last

part is particularly important to the smooth completion of any commercial

construction project.

Local government agencies exercise a moderate level of control over any

commercial construction project. Generally speaking, the larger a project is, the

more you can expect to have to work with your local government.

Strategy 2: Research about construction materials source in Central Visayas


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Materials research is an important part of the design process in

construction. Engineering theory is largely based on the characteristics of

construction materials, which makes it necessary to carry out tests on them

before embarking on construction. Pre-testing the materials often makes it

possible to see and prevent various costly and even dangerous problems.

Comprehensive testing during the design and implementation process often

leads to lower construction costs.

Strategy 3: Formulate a strategic plan

All small-business owners can benefit from developing a strategic plan,

and owners of construction companies are no exception. Just as you create

blueprints for each of your construction projects, the strategic plan serves as a

blueprint for growing your business's revenue and profit. It also focuses your

team's efforts on achieving the goals you have set and provides a means to

measure your progress toward the goals.

Table 19
SPATRES (Market Penetration Strategy) for Objective 3
Strategies, Programs, Activities and Tasks, and Resource
Requirements(SPATRES)
Time
Strategies Program/s Activities Frame/ Resource/s
Tasks
No
President
Follow rules and
Get a building additional
and Operation
permit
regulations manager
cost
/continuous
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No
President
Research about
and
Strategy # the rules and additional
Operation
1: Tie-up regulations in the
manager
with local area cost
/continuous
government
of Central No
President
Visayas
Formulate a plan and
additional
regarding new Operation
regulations manager
cost
/continuous

No
Research about President
the proper set- and
additional
back Operation
requirements manager
cost
from properties /continuous

Research about
No
the necessary President
Ensure that variance or and
the property additional
conditional permit Operation
targeted is in order to be manager
zoned for cost
constructed in its /continuous
commercial planned location
needs President
Research about and No additional
the city review Operation
cost
process manager
/continuous
President
Select the right
and No
construction
Operation additional
partner to work
manager cost
with
Maintain a /continuous
positive President
working Discuss the and No
relationship outlined plan with Operation additional
with the local local officials manager cost
government /continuous
Assess the needs President No
and expectations and
of local Operation additional
government manager
Strategic Management Plan for J.C. Aguilar Construction 81
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/continuous cost

No
President
and
Discuss the site additional
Operation
coverage
manager
cost
/continuous
No
President
Discuss
Reserearch about and
relevant topics additional
neighborhood Operation
to the local
concerns manager
government cost
/continuous
No
President
and
Discuss the set- additional
Operation
backs
manager
cost
/continuous
Build and No
President
maintain
and
relationship with additional
Operation
Economic
manager
development cost
/continuous
commissions
Expand No
President
working Build and
and
relationship maintain additional
Operation
with local relationship with
manager
government City council cost
/continuous
officials
Build and No
President
maintain
and
relatiionship with additional
Operation
Environmenta;
manager
Protection cost
/continuous
Agency
Strategy # No
Do a President
2: Research preliminary and
about Set the context of additional
search for Operation
your research.
construction information Manager/
cost
materials continuous
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source in Look up your


Central keywords in the
Visayas appropriate titles
in the library's
No
Reference President
collection and in and
additional
other sources Operation
such as our Manager/
cost
catalog of books, continuous
periodical
databases, and
Internet search
engines.
No
President
Analyze the and
additional
collected Operation
information Manager/
cost
continuous

President No
and
Gather and
Operation additional
organize the
and Project
results
Managers/ cost
continuous

President No
and
Determine the Operation additional
highs and lows and Project
Evaluate the Managers/ cost
collected continuous
information
President No
and
Make a
Operation additional
conclusion from
and Project
the results
Managers/ cost
continuous
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President No
and
Find a supplier
Operation additional
who could supply
and Project
materials on time
Managers/ cost
continuous

President No
Define a Negotiate with and
supply chain suppliers about Operation additional
management the cost of and Project
materials Managers/ cost
continuous

President No
Make the and
suppliers as Operation additional
construction and Project
materials partner Managers/ cost
continuous

President No
Choose a supplier and
which offers Operation additional
materials with and Project
reasonable price Managers/ cost
continuous

President No
Choose a supplier and
Choose a
that has a Operation additional
supplier
reputation for and Project
highest quality Managers/ cost
continuous
President No
Choose a supplier
and
that is reliable
Operation additional
when it comes to
and Project
providing timely
Managers/ cost
deliveries
continuous
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President No
and
Take direct Operation additional
communication and Project
Managers/ cost
continuous

President No
Leverage Establish and
Construction customer to Operation additional
Materials supplier and Project
Partners relationship Managers/ cost
continuous

President No
Determine the and
most advantage Operation additional
procurement and Project
processes Managers/ cost
continuous

Research the
general economic
President No
factors that affect
and
all types of
Operation additional
business activity
Strategy # and Project
and additional
Survey the Managers/ cost
3: factors, specific to
company’s continuous
Formulate a the construction
business sector.
strategic environment
plan
Research about President No
the specific and
“packages” of Operation additional
prospective and Project
project Managers/ cost
opportunities continuous
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President No
Research and
potential threats Operation additional
to a company's and Project
orderly activity Managers/ cost
continuous

President No
and
Know and master
Operation additional
the construction
and Project
capacity
Managers/ cost
continuous
Analyze the President No
company’s Know and master and
main the procurement Operation additional
resources and marketing and Project
system Managers/ cost
continuous
President No
Identify the and
strengths and Operation additional
weaknesses of and Project
the company Managers/ cost
continuous
Locate the President No
relative and
attractiveness of Operation additional
the various and Project
possible activity Managers/ cost
Develop a areas continuous
strategy
President No
and
Research about
Operation additional
several available
and Project
alternative
Managers/ cost
continuous
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President No
Determine and
and
analyze the cost
Operation additional
and benefit
and Project
inherent in the
Managers/ cost
implementation
continuous

President No
Determine the and
most advantage Operation additional
procurement and Project
processes Managers/ cost
continuous
Encourage No
favourable Assess the needs President
business and expectations and additional
climate to of clients Operation
encourage manager cost
clients /continuous

Ask a feedbacks Operation No


from clients manager/
continuous additional

cost

President No
and
Gather and
Operation additional
organize the
and Project
results
Managers/ cost
continuous
President No
Evaluate the and
strategic plan Determine the Operation additional
highs and lows and Project
Managers/ cost
continuous
President
No
Make a and
conclusion from Operation
additional
the results and Project
Managers/
Strategic Management Plan for J.C. Aguilar Construction 87
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continuous cost
Strategic Management Plan for J.C. Aguilar Construction 88
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Table 18
SPATRES (Product/Service Development Strategy) for Objective 2
Time
Strategies Program/s Activities Frame/Tasks Resource/s

Have a good Project No


relationship with Managers additional
them /continuous cost

Know the
Negotiate fairly Project No
different local
when it comes to Managers additional
suppliers in
purchasing /continuous cost
the town

All the No
Be loyal to the
administrative additional
suppliers
/continuous cost

All the No
Be trustworthy of
administrative additional
their supplies
/continuous cost

Operation
Have a great Have a good No
and Project
working communication additional
Managers
relationship with them cost
Strategy # 1: /continuous
Tie-up with
local All the
suppliers administrative No
Be humble and
and project additional
grateful to them
managers cost
/continuous
President
Choose a and
No
Choose a supplier that Operation
additional
supplier offers reasonable and Project
cost
price Managers/
continuous
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President
Choose a and
No
supplier that has Operation
additional
a reputation for and Project
cost
highest quality Managers/
continuous
Choose a President
supplier that is and
No
reliable when it Operation
additional
comes to and Project
cost
providing timely Managers/
deliveries continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Create a chain Operation
additional
of suppliers and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and No
Operation additional
Manager/ cost
continuous
President
and No
Operation additional
Manager/ cost
continuous
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President
and No
Operation additional
Manager/ cost
continuous
President
and No
Gather the
Operation additional
information
Manager/ cost
continuous
Know the
latest trends in President
construction and No
Analyze each
industry Operation additional
trends
Manager/ cost
continuous
President
and No
Formulate a plan Operation additional
Manager/ cost
continuous
President
and
Find a useful No
Strategy # 2: Operation
equipment that is additional
Advancement and Project
durable cost
of Managers/
technologies continuous
President
Improve the Enhance and
No
present equipment by Operation
additional
equipment taking good care and Project
cost
of it Managers/
continuous
President
and
Know the latest No
Operation
trends in additional
and Project
constructing tols cost
Managers/
continuous
President
Find a high and
quality No
Operation
supplier of this additional
and Project
equipment cost
Managers/
continuous
Strategic Management Plan for J.C. Aguilar Construction 91
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President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers/
continuous
Strategic Management Plan for J.C. Aguilar Construction 92
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President
and
No
Operation
additional
and Project
cost
Managers/
continuous
President
and
No
Operation
additional
and Project
cost
Managers
/continuous
President
and
No
Operation
additional
and Project
cost
Managers
/continuous
President
and
Strategy # 3: No
Operation
Conduct a additional
and Project
study cost
Managers
regarding /continuous
construction President
industry in and
economic No
Operation
growth of additional
and Project
NCR cost
Managers
/continuous
President
and
No
Operation
additional
and Project
cost
Managers
/continuous
President
and No
Operation additional
manager cost
/continuous
Strategic Management Plan for J.C. Aguilar Construction 93
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President
and No
Operation additional
manager cost
/continuous
President
and No
Operation additional
manager cost
/continuous
President
and No
Operation additional
manager cost
/continuous
President
and No
Operation additional
manager cost
/continuous
President
and No
Operation additional
manager cost
/continuous
President
and No
Operation additional
manager cost
/continuous
President
and No
Operation additional
manager cost
/continuous
President
and No
Operation additional
manager cost
/continuous
Strategic Management Plan for J.C. Aguilar Construction 94
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President
and No
Operation additional
manager cost
/continuous
Strategic Management Plan for J.C. Aguilar Construction 95
HOLY ANGEL UNIVERSITY

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the-gross-profit-margin-393201

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ratio/

Averkamp, H. (n.d.). What is the debt to total assets ratio? Retrieved January 11,

2018, from https://www.accountingcoach.com/blog/ebt-to-total-assets-ratio

Bragg, S. (2018). Debt to equity ratio. AccountingTools. Retrieved 11 January

2018, from https://www.accountingtools.com/articles/2017/5/15/debt-to-equity-

ratio Debt to equity ratio - explanation, formula, example and interpretation |

Bragg, S. (2018). Fixed asset turnover ratio. AccountingTools. Retrieved 11

January 2018, from https://www.accountingtools.com/articles/2017/5/5/fixed-

asset-turnover-ratio

Debt to assets ratio. (2017, July 28). Retrieved January 11, 2018, from

https://www.accountingtools.com/articles/2017/5/5/debt-to-assets-ratio

Competitive Expert Remo, Internal-External (IE) Matrix. (2017). Maxi-pedia.com.

Retrieved 20 December 2017, from http://www.maxi-

pedia.com/internal+external+ie+matrix
Strategic Management Plan for J.C. Aguilar Construction 96
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Mapiles, J. (2016, February 06). Pampanga backs move to decongest Metro

Manila. Retrieved November 15, 2017

Program Management. (2017). Profile Matrix (CPM) – with FREE Template.

Retrieved 20 December 2017, from

https://expertprogrammanagement.com/2017/01/competitive-profile-matrix-cpm/

Remo, R. (2017, January 7). Aggresive infra plan to sustain PH construction

boom Read more:http://business.inquirer.net/222578/aggresive-infra-plan-

sustain-ph-construction-boom. Retrieved November 11, 2017


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