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 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 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