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Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
A Company Assessment Report
Presented to
Mr. Norman Arcega, CHRA
Batangas State University
The National Engineering University
In Partial Fulfillment
of the Requirements for
BPO 303 - Service Culture
Jhezrell El-g G. de Guzman
21-51804
FINMGT 3201
APRIL 2024
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
I.
INTRODUCTION
San Miguel Corporation (SMC) is widely known as one of the Philippines’ most
diversified and dynamic conglomerates, with a significant presence in various industries
including food and beverage, packaging, energy, fuel and oil, infrastructure, cement, property,
and banking services. Throughout its rich history, San Miguel has maintained its commitment
to continuous improvement and excellence in service delivery, which supports the business in
solidifying its market position.
Recognizing the important role of service culture in sustaining a competitive edge,
this report presents a comprehensive assessment of the current service culture of San Miguel
Corporation by employing the McKinsey 7S Framework. The primary purpose of this
assessment is to identify the strengths, efficiency, and effectiveness of the current service
culture practiced by San Miguel, and determine any potential areas of opportunities for further
improvements. By understanding the effectiveness of existing service practices, San Miguel
Corporation (SMC) can implement targeted improvements to uphold its reputation as a leader
in providing superior customer service.
II.
EXECUTIVE SUMMARY
San Miguel Corporation (SMC), a name exemplifying the Philippines' largest
conglomerate, boasts a rich history dating back to 1890. Originally a single brewery named
La Fábrica de Cerveza San Miguel, it has transformed into a diversified multinational
conglomerate reaching across industries. The story of San Miguel is a testament to strategic
evolution and diversification, making it one of the economic powerhouses of the Philippines.
In the early years of San Miguel, it focused its business operation on producing
high-quality beer. The iconic San Miguel Pale Pilsen, launched in 1890, became Filipino’s
favorite, it wasn’t just dominating the domestic market but it was also patronized by other
nations across Southeast Asia, gaining its title as one of the world’s best-selling beers.
However, San Miguel’s ambitions extended beyond the brewery. As the 20th century
unfolded, San Miguel strategically expanded its business operation, venturing into spirits and
non-alcoholic drinks, and later on entering other industries. This diversification continued into
the present and does not only secures the position of San Miguel in the market but also
emphasizes its keen eye for possible opportunities.
Notably, this expansion was guided by the company's commitment to providing
high-quality services. The dedication of San Miguel to exceptional service has been the core
of its success across its diverse offerings. The company's service culture is embedded in its
core value - Malasakit manifests itself in everything we do, which refers to the commitment to
operational excellence, building brand loyalty, and ensuring product and service availability.
San Miguel’s current service initiatives focus on three pillars: Kalikasan (Good for
the Planet), Kalinga (Good for People), and Kasaganahan (Good for Progress). These
initiatives encompass environmental sustainability, community development, and inclusive
economic growth, demonstrating a holistic approach of San Miguel to corporate
responsibility.
Anchored by McKinsey 7S Framework, the assessment of San Miguel’s service
culture reveals a strong foundation of practices deeply rooted in strategy, structure, systems,
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
shared values, skills, style, and staff. The company's customer-centric approach, empowered
workforce, efficient systems, and a strong set of values contribute to its good brand reputation
and sustained success.
However, even with the solid service culture of San Miguel, there are still
opportunities for further improvement. Recommendations include implementing employee
recognition, incentives, and rewards for service excellence, continuous learning and
development for employees, leadership development for managerial and higher positions,
service recovery strategies, establishment of innovation hub, strengthening feedback
mechanisms, and involvement in community engagement initiatives.
III.
COMPANY PROFILE
With a rich history spanning over a century, San Miguel Corporation (SMC) stands as
the epitome of resilience and innovation in the Philippines. It was first a humble brewery, and
over the years, it has grown exponentially, diversifying its portfolio and leading it to be
recognized as one of Southeast Asia’s largest and most diversified conglomerates. With its
commitment to bringing quality products to each and every Filipino, its operation has been
expanded in various sectors, including food and beverage, packaging, energy, fuel and oil,
infrastructure, cement, property, and banking services. SMC has a portfolio of companies that
is firmly interlinked into the economic structure of the Philippines, benefiting from, as well as
contributing to the development and economic progress of the country.
HISTORY
1890: Don Enrique Ma Barretto de Ycaza established a brewery in Manila called La Fabrica
de Cerveza de San Miguel (named after the section of Manila in which Barretto lived and
worked)
1913:The company was incorporated as San Miguel Brewery, Inc.
1918: Andrés Soriano y Roxas joins San Miguel, beginning the long-term, multigenerational
involvement of the Soriano family.
1922: San Miguel expands into nonalcoholic beverages with the opening of the Royal Soft
Drinks Plant.
1925: San Miguel entered the frozen foods market with the production of ice cream begins at
the Magnolia Ice Cream Plant.
1927: San Miguel becomes the first non-U.S. national Coca-Cola bottler and distributor.
1963:La Fabrica de Cerveza de San Miguel shortens its name to San Miguel Corporation.
1983: Soriano family proxy fight leads to the purchase of a 19.5 percent stake in San Miguel
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
by Eduardo Cojuangco, Jr., a close associate of Philippine dictator Ferdinand Marcos.
1984: Cojuangco assumes the chairmanship of San Miguel.
1986: "People power" revolution forces Marcos to flee the country; Cojuangco is among
those joining him in exile; the new Philippine government sequesters 51.4 percent of the
company shares; Andrés Soriano III resumes the company chairmanship.
1987: San Miguel purchases majority control of La Tondeña Distillers, Inc., the leading
producer of hard liquor in the Philippines.
1997: San Miguel exchanges its 70 percent stake in Coca-Cola Bottlers Philippines, Inc. for a
25 percent interest in the Australian firm Coca-Cola Amatil Limited (CCA).
1998: Cojuangco returns to the chairmanship following the election of Joseph Estrada to the
Philippine presidency.
2001: Pure Foods Corporation, a producer of processed meats and flour, is acquired; San
Miguel joins forces with the Coca-Cola Company to reacquire Coca-Cola Bottlers
Philippines, relinquishing its stake in CCA as part of the deal.
2002: The company acquires Cosmos Bottling Corporation; Kirin Brewery Company,
Limited acquires a 15 percent stake in San Miguel.
BUSINESS STRATEGY
San Miguel Corporation (SMC) aims to help people enjoy and make progress in their
lives by offering a variety of products and services. Through these offerings, every customer
and consumer is allowed to access the best that the company can provide - whether in terms
of quality, affordability, or choice. To achieve these goals, SMC follows five key strategies
that emphasize both strong core businesses and excellent service, which are as follows:
1. Enhancing Established Businesses
SMC prioritizes operational excellence, building brand loyalty, and product
visibility. This implies that the company strives to provide better service through
consistent quality, and innovation that meet or even exceed customer expectations,
and ensure that all products are readily available.
2. Strategic Diversification
SMC expands to those industries that significantly support the economic
growth of the Philippines. By offering new services or products, they cater to a wider
range of customer needs and contribute to national growth.
3. Building Synergies
They actively identify and pursue connections across their businesses. This
might involve vertical integration, where they control different stages of production
or platform matching that connects customers with various services. By creating
synergies, SMC streamlines service delivery and potentially offers bundled services
for a more convenient customer experience.
4. Market Leadership
SMC invests in and develops businesses that are leaders in their respective
markets. Owning leading service providers allows SMC to leverage best practices and
ensure they deliver high-quality services to their customers, giving them a
competitive edge
.
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
5. Adopting World-Class Practices
They continuously improve by implementing globally recognized business
practices and forming joint ventures. This focus on improvement can lead to better
service quality, efficiency, and potentially new service offerings through partnerships
and collaborations.
San Miguel Corporation (SMC) integrates service into its core practices by focusing
on operational excellence, building strong customer relationships, strategically expanding its
offerings, and adopting best-in-class service principles. This focus on service strengthens their
market position and helps them achieve their goal of making a positive impact on people's
lives.
CORPORATE PHILOSOPHIES
VALUES
- Malasakit manifests itself in everything we do
●
We do what is right
We believe in profit with honor. For us, this simply means doing what we say
we’ll do and acting with honesty, fairness, and integrity.
●
We believe in doing our best
We will give every single person we touch the best we can offer. We are
passionate about our brands, products, and services.
●
We take accountability for our decisions
We hold ourselves accountable for delivering results, we keep to our
commitments and we take responsibility for our actions.
●
We think innovation
Our innovation lends us agility and is driven by our understanding of what
our customers and stakeholders need.
●
We help our people succeed
We believe in treating each other with respect. We cultivate a culture that
recognizes the individuality and contributions of each of our employees, helping them
to become productive and responsible members of society.
●
We are a good neighbor
We are a positive force in our communities. We believe in doing what is good
for the greatest number of people.
●
We advocate sustainable development
We believe in using only what we need and integrating sustainability
practices into our operations. Water stewardship, energy optimization, and reducing
waste are our key environmental priorities.
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
MISSION
- To provide goods and vital services well within the reach of every Filipino, making
everyday life a celebration.
VISION
- We are San Miguel. Guided by a strong sense of social, environmental, and economic
responsibility. Our businesses will lead efforts to deliver on national goals, setting the
pace of progress in the Philippines.
CORE PURPOSE
- To lead in nation-building by creating opportunities that will uplift generations of
Filipinos, allowing all to share in the rewards of sustainable development and
prosperity.
CURRENT SERVICE INITIATIVES
San Miguel envisions a world of good, where its business fosters a sustainable future
that is good for the planet, good for people, and good for progress, benefiting present and
future generations of Filipinos.
SMC’s current service initiatives are structured around three key pillars:
1. Kalikasan (Good for the Planet)
- This pillar emphasizes protecting the environment through practices like
efficient resource management, tackling climate change, and adopting a
circular economy approach (where materials are reused and waste is
minimized). SMC focuses on achieving a circular economy by 2040 and
net-zero greenhouse gas emissions by 2050.
Programs/Projects/Activities:
1. Water for All. Launched in 2017, this program aims to cut
non-product, utility water use by 50% by 2025. Initiatives include
fixing leaks, increasing water recycling and reuse, utilizing
desalinated seawater, rainwater harvesting, and wastewater treatment.
2. Tullahan River Cleanup. After 27 months of operation, this project
removed over 5.5 million tons of waste from the Tullahan River - a
vital waterway in Metro Manila, completed in August 2022.
3. Waste-to-Resource. Recycle coal ash as an aggregate material for
cement plants, sustain returnable glass bottle system of Beer and
bottle buy-back program of Ginebra, recycle bottles, cullets, crates,
cartons, and plastics as input materials in production, step up
compliance with the Extended Producer Responsibility Law in
managing plastic waste, and repurpose manufacturing byproducts
(e.g., spent grain, spent yeast, feathers, and wheat bran /pollard) as
raw materials for feeds.
4. Other programs. Operate 1,000 MWh BESS project to boost grid
reliability and pave the way for more renewable energy in the grid,
expand natural gas capacity as a bridge to cleaner energy and invest
in solar PV plants as renewable energy sources, continue and broaden
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
initiatives to make our coal plants the most efficient and cleanest in
the industry (e.g., High Efficiency and Low Emissions or HELE
technology), expand river rehabilitation projects in partnership with
the Department of Natural Resources (DENR) to help alleviate
flooding and solid waste pollution for cities and people, maximize
nature-based solutions such as mangrove reforestation and tree
planting, implement and enhance biodiversity conservation projects,
such as coral reef rehabilitation and coastal management programs
2. Kalinga (Good for People)
- This pillar focuses on the well-being of people. It includes initiatives that
empower employees, uplift communities, and ensure ethical and fair practices
throughout the supply chain. SMC aims to uplift at least 15 million people by
2030 and establish a sustainable and ethical supply chain by 2040. An ethical
supply chain ensures fair treatment of workers and environmentally
responsible practices throughout the production process.
Programs/Projects/Activities:
1. Customer Safety and Satisfaction. Continue to improve the
nutritional value of food and beverage products, and embrace digital
transformation to improve workplace productivity, reduce waste, and
expand customer access.
2. Employee well-being and development. Improve overall employee
health and well-being and ensure safeguards to prevent workplace
injuries and accidents. As part of prioritizing the well-being of the
employees, SMC launched the Backyard Bukid - an urban farming
initiative at the headquarters, in 2021
3. Safe and healthy workplaces. Embed and track diversity and
inclusion in all aspects of employment policies. SMC has been
recognized by the Department of Labor and Employment (DOLE) for
its commitment to employees during the pandemic by hiring and
regularizing former workers of third-party providers, and strict
compliance with labor laws.
4. Community development. SMC established Better World Tondo
during the pandemic intended as a feeding and learning center, this
center provides COVID-19 surveillance and safety measures for
employees. It also functions as a food bank and soup kitchen,
addressing food security needs in the community. Aside from that,
SMC builds expansive and resilient road infrastructure and public
transportation projects to catalyze trade, investment, and national
development, builds industrial parks and ecozones that attract
investments and create jobs for adjacent communities, provides
access to potable water at affordable rates to municipal water districts
(e.g., Bulacan Bulk Water project), enhances the livability of our host
communities by creating livelihood opportunities, extending
educational assistance and scholarship programs to schools and
students, and even providing food, clean water, sanitation, housing,
and access to medical services.
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
3. Kasaganahan (Good for Progress)
- This pillar highlights inclusive economic growth. SMC wants to ensure that
its business practices benefit society and contribute to a prosperous future for
all Filipinos.
Programs/Projects/Activities:
1. Environmental Initiatives. SMC has embarked on a reforestation
and carbon capture program called Project 747. The goal is to plant
seven million trees across 4,000 hectares in at least seven provinces.
Since 2019, they have already planted 2.7 million seedlings and
propagules. This initiative contributes to mitigating climate change
and preserving natural resources. Consequently, Buhayin ang
Kalikasan under San Miguel Brewery has succeeded in planting one
million seedlings since its inception.
2. Housing Projects for Families Impacted by Natural Disasters. In
partnership with organizations like Gawad Kalinga and Habitat for
Humanity, SMC has invested PHP 3.05 billion over the last decade.
3. Local Alliances. In 2022, SMC spent 53% of its total procurement
budget on local businesses, providing a big help to the local
economy, especially to the host communities and fellow Filipinos.
4. Entrepreneurship Programs. Better World Diliman serves as a
marketplace for excess produce and it aims to increase farm incomes,
reduce food wastage, and boost farmers’ capacity through
agripreneurship training programs. Moreover, SMC partnered with
the School for Experiential and Entrepreneurial Development
(SEED) to create a learning community by providing
agrientrepreneurship program for the underserved communities in
Sumilao, Bukidnon.
IV.
COMPANY ASSESSMENT TOOL
In assessing the current service culture practiced at San Miguel Corporation (SMC),
this report has employed the McKinsey 7S Framework, a renowned diagnostic tool to analyze
the efficiency and effectiveness of the organizational design developed by a group of
consultants at McKinsey & Company. It examines seven interconnected factors within the
organization namely, Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff, to
provide a comprehensive understanding of its service culture and identify areas for
improvement.
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
V.
ANALYSIS
STRATEGY
San Miguel Corporation's (SMC) strategy appears to be customer-centric, prioritizing
customer satisfaction, loyalty, and continuous innovation. Moreover, SMC puts a clear
emphasis on its proactive approach to meeting the needs and even going beyond the
expectations of its customers and consumers by continuously innovating its products and
services leading to its strong brand reputation. Alongside this, the business approach of SMC
to expand into new markets whenever it is given the opportunity reflects its adaptability and
commitment to further growth and development.
STRUCTURE
The structure of San Miguel is designed to empower its employees while providing
emphasis on customer service. This is evident in the establishment of dedicated customer
service teams and the promotion of a flat organizational structure, providing a quick response
to customers' needs and concerns. Additionally, the investment initiatives of SMC on
technology further give support for efficient service delivery.
SYSTEM
SMC implemented various systems to support and ensure its strong service culture. It
includes having Customer Relationship Management (CRM) systems to track customer
interactions, along with service quality measurement processes, which entails the structured
approach of the company to managing customer relationships and feedback. On the other
hand, an internal communication system ensures that all the activities and decisions across all
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
levels of the organization align with the company’s service goals.
SHARED VALUES
San Miguel Corporation (SMC) appears to prioritize integrity, excellence,
accountability, innovation, employee development, community engagement, and
sustainability. These values become the foundation of the organization and serve as a guide in
making actions and decisions related to the business. Aligning these values in all aspects of
the organization assists San Miguel in having a consistent and cohesive organizational culture
which will drive its sustainability. Moreover, through these values, it has been clear that San
Miguel embodies a sense of responsibility among employees, encourages creativity and
continuous improvement, and demonstrates a commitment to social and environmental
responsibility.
SKILLS
SMC recognizes the importance of equipping employees with the necessary skills
related to handling customers. For the company to ensure the delivery of exceptional
customer service, SMC makes sure that all of the employees have strong interpersonal and
communication skills, coupled with a deep understanding of customer needs. SMC is able to
create a workforce capable of exceeding customer expectations through nurturing a service
mindset and promoting a culture of hospitality.
STYLE
The collaborative and teamwork-oriented environment and data-driven
decision-making style practiced by SMC foster a culture of continuous growth and
empowerment for the employees that enhances their morale and productivity.. SMC
encourages its employees to contribute ideas, communicate openly, and solicit feedback to
facilitate the exchange of ideas that could assist the organization in adapting quickly to the
evolving needs and preferences of customers and market dynamics.
STAFF
SMC ensures that customers are provided with the high-quality service they deserve
by investing in its employee training, development, and satisfaction programs to make the
employees well-equipped to handle customers. These programs are not solely for the benefit
of the customers but also beneficial to the employees themselves as they make them feel
valued and appreciated resulting in them being motivated and skilled in the workplace. Hiring
for cultural fit, empowering employees, and incorporating customer service criteria in
evaluating employees’ performance signifies the commitment of SMC to service excellence
and organizational success.
VI.
CONCLUSION
Through the analysis of the service culture of San Miguel utilizing McKinsey 7S
Framework, it has been revealed that San Miguel Corporation (SMC) has practiced an
excellent service culture that is deeply embedded in its strategy, structure, systems, shared
values, skills, style, and staff. The customer-centric approach of SMC prioritizes satisfaction,
loyalty, and innovation, supported by empowered employees, efficient execution of its
systems, and a strong set of values shared within the organization, which greatly helps the
business to build its sterling reputation for excellence and strong adaptability in the diverse
market it penetrated. SMC’s commitment to service excellence is evident through its
Leading Innovations, Transforming Lives, Building the Nation
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Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
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College of Accountancy, Business, Economics and International Hospitality Management
emphasis on providing training and development for employees, collaborative
decision-making, and investment in modern technologies. Thus, the result of the analysis
implies that the sustainable growth and success of San Mguel Corporation for over 130 years
has been greatly attributed to its effective and efficient service culture.
VII.
RECOMMENDATIONS
From the thorough assessment provided with the use of the McKinsey 7S Framework, it has
been revealed that San Miguel Corporation (SMC) has a solid foundation for its service
culture. However, there are always opportunities for improvement. For further enhancement
of the service culture of the organization, the proposed recommendations are as follows:
1. Employee Recognition, Incentives, and Rewards for Service Excellence
Recognizing and rewarding employees for their commitment to delivering
outstanding service not only boosts morale but also maintains desired behaviors. It
will motivate the employees to consistently do the best of their ability to go above
and beyond in meeting customer needs and promote a culture of excellence within the
organization. This could be done by having a formal employee recognition program
and rewarding the individuals or teams that demonstrate exceptional service by giving
incentives such as bonuses, performance-based rewards, or even non-monetary
rewards like extra time off and professional development opportunities.
2. Continuous Learning and Development
Continuous learning for the employees ensures they stay updated on the trends within
the industry, best practices, and constantly changing customer expectations. SMC
could make this possible by offering ongoing training and development opportunities
to employees, enhancing their skills, knowledge, and competencies.
3. Leadership Development
Effective leadership is essential to maintain the service culture within the
organization. Leadership development initiatives provide an avenue for managers and
executives to further develop the necessary skills, mindsets, and behaviors to inspire
and empower their subordinates and be a positive example. This could be done
through leadership training workshops, executive coaching sessions, leadership
retreats, and mentorship programs.
4. Service Recovery Strategies
Even with a strong service culture, service failures should still be anticipated.
Although these service failures are inevitable, what is important is how the business
will handle them while still ensuring the loyalty and satisfaction of the customers.
Having service recovery strategies will help SMC resolve issues or concerns.
Through these strategies, SMC could be able to demonstrate its commitment to
making things right when problems arise and can even turn a negative experience into
a positive one.
5. Establishment of Innovation Hub
Innovation is essential for a business to secure its positioning in the market and stay
competitive. Establishing an innovative hub fosters a culture of creativity,
experimentation, and continuous improvement, allowing the organization to develop
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
innovative solutions that drive customer satisfaction and business growth. SMC can
create a dedicated innovation hub or center within the organization where
cross-functional collaboration is possible, giving all employees the opportunity to
collaborate, brainstorm, and experiment with new ideas and initiatives for the
betterment of its service and encourage innovation and creativity of the employees.
6. Strengthen Feedback Mechanisms
For a business focusing on providing service, feedback is a valuable source for
identifying areas of improvement, addressing current issues, and making informed
decisions. Strengthening feedback mechanisms allows SMC to gain a deeper
understanding of the needs and preferences of its target market, as well as employee
perceptions and concerns, facilitating continuous improvement and adaptation. SMC
can make this possible by having employee and customer surveys (SMC can utilize
the use of different digital platforms), suggestion boxes for the employees, and
regular performance evaluations. Ensure that the feedback is properly collected,
analyzed systematically, and act upon it if possible.
7. Involvement in Community Engagement Initiatives
The active involvement of SMC in the community it belongs to not only aligns with
its shared values but also helps strengthen its brand reputation and promotes goodwill
among its stakeholders. SMC can initiate partnerships with local organizations,
educational institutions, and non-profit organizations to support community projects,
conservation efforts, and educational programs (e.g. scholarship programs).
Moreover, SMC can encourage its employees to volunteer and organize community
outreach programs to deepen the relationship between the organization with the
community it operates. Furthermore, transparent and clear communication with the
community can improve the corporate social responsibility initiatives of the
organization, fostering trust and loyalty of the stakeholders.
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
VIII.
REFERENCES
San Miguel Corporation. (n.d.). Retrieved from https://www.sanmiguel.com.ph/
San Miguel Corporation -- Company History. (n.d.). Retrieved from
https://www.company-histories.com/San-Miguel-Corporation-Company-History.html
Jurevicius, O. (2023, December 3). McKinsey 7S Model. Strategic Management Insight.
Retrieved from
https://strategicmanagementinsight.com/tools/mckinsey-7s-model-framework/
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
IX.
APPENDICES
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
Leading Innovations, Transforming Lives, Building the Nation
Republic of the Philippines
BATANGAS STATE UNIVERSITY
The National Engineering University
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
Leading Innovations, Transforming Lives, Building the Nation
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