Restituto Dimaalis is VP Corporate Planning of Philippine Canning Corp. (PCC), one of the biggest fish canning companies in the Philippines with Sales of about PhP 12.0 B in 2012.  Its main product is tuna with the cannery located in General Santos City, South Cotabato.  Its secondary product line is sardines with the cannery located just outside Zamboanga City.  The company's head office is located in Makati.

 

Reviewing company performance over the past few years, Resituto thought the picture looked good.  The cannery in Gen San, together with the corresponding fish port was new, having been completed 5 years ago.  The company had invested a little over PhP 500.0 M in this project but it seemed to be paying off both in terms of increased efficiency as well as capacity.  Most of the machinery and systems (60% of cost) was financed through 10 yr. US$ denominated debt while 30% of the balance was funded through long term PhP denominated debt and the rest through Retained Earnings. The sardine cannery in Zamboanga had just been refurbished with modern equipment, the company having borrowed US$ 2.0 M in long term debt to finance it.  However, efficiency and capacity were up also.  The company had also just concluded negotiations for the supply of tin for their cans for terms that were quite favorable with a supplier in Indonesia. Additionally, Operations have been evaluating alternate forms of packaging such as vacuum packing and biodegradable plastic wraps and containers.

 

The company exported about 10% of its tuna produce while the rest was sold on the local market, which as of the present time, the company was garnering an 82% share. There are 5 other companies canning and selling tuna. This concerned Resty a bit because this figure was down from 90% three years ago.  This meant a decreasing market share in a market increasing in volume of about 5% per year, but it was comforting that they were still THE very dominant player.  Their sardines cornered 23% of the market which, given the number of players in the market, was the most dominant.  The products reached the market via a structure of wholesalers who were backed up quite strongly with advertising and promotional activities undertaken by the company.  On the average, collections from these wholesalers were between 30 and 45 days.

 

Of concern also was the fact that the tuna catch had been dwindling over the years and was expected to decrease further.

 

In formulating Long Term Objectives and a Strategic Plan, what factors does Resty have to consider? Why and what would their significance be?

Below are factors that  Resty has to consider when formulating long term objectives and s strategic plan  with their reasons  and signigicance:

1. Create a collaborative and comprehensive process 
Collaboration is at the heart of a successful strategic planning process. I understand the fear of having too many cooks in the kitchen, but making strategic plans in silos is a big mistake. The more comprehensive and collaborative the process, the more support you can get from different stakeholders, and the  strategic plan more accurately reflects your organization's vision for the future. 
2. Process data, not assumptions 
Everyone has a belief and prejudice about their organization. However, if you start the planning process without collecting data, it will  fail. Talk to people Organize focus groups. Check the latest facts. It's important to know where your current business is, not where it was in the past. With current data, you can be confident that your current problem will be resolved. 
3. Set expectations for shared responsibility and ownership 
Often, in the strategic planning process,  planning committees are appointed without much thought about their specific responsibilities and without a well-defined expectation of participation. But find the right people (think team players) to join the committee, give them the opportunity to take ownership of the process, empower them to make decisions, encourage them to express their concerns, and act. It is important to give authority. Proponents of the process are important to your success. 
4. Prioritize transparent communication 
Above all, transparency creates trust. If  stakeholders want to accept the plan, they need to trust you and trust the process. You also need to ensure that ideas and inputs are  captured and shared through regular, transparent updates and communications. 
5 Think beyond strategic planning 
The last thing you want after completing a strategic plan is  a document sitting on a dust-collecting shelf. For this reason, it is important to go beyond the planning stage and consider how the plan is actually being implemented. This involves understanding your capabilities and free resources and identifying some of  the  priorities that will  help your organization achieve its goals. Successful strategic planning requires asking important questions, sometimes making  difficult decisions, and  saying "no." 
6 Commitment to Change-Especially Leadership 
Change is difficult for everyone. It's especially difficult for organizations that have been doing things in some way for a long time. However, external factors such as demographic changes and technological advances often require major changes for an organization to remain relevant. To ensure a successful strategic plan, leadership must be willing and committed to letting go of outdated processes, rethinking strategies, and making the necessary changes  to move the organization into the future. 
An effective strategic planning process helps to create live documentation that truly guides your organization's priorities and focus each month.