CENTRAL LUZON STATE UNIVERSITY
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
STRATEGIC MANAGEMENT PAPER
GLOBE TELECOM, INC.
Submitted by:
BAUTISTA, SHIENA MARIE P.
DE GUZMAN, JAMES BERNARD C.
GUTIERREZ, MARIEL C.
MIMIS, MA. ROSELEEN L.
RELUCIO, CLARISSA C.
BSAC 3-1
Submitted to:
DR. CAROLYN P. GONZALES-MARZAN
1st Semester, A.Y 2020-2021
TABLE OF CONTENTS
Page
TITLE PAGE…………………………………………………………………………………….. i
TABLE OF CONTENTS…………………………………………………………………...…… ii
I.
INTRODUCTION
Purpose……………………………………………………………………………… 3
Applied Concepts…………………………………………………………………..….3
Disclaimer…………………………………………………………………………..…4
II.
COMPANY INFORMATION
Brief History…………………………………………………………………….…….5
Industry Classification………………………………………………………….……..5
VMGO…………………………………………………………………….…………..6
Core Values…………………………………………………………………………...7
III.
CASE DESRIPTION
Current Problem/ Situation……………………………………………………………8
IV.
ANALYSIS
SWOT Matrix…………………………………………………………………..……10
V.
CONCLUSIONS AND RECOMMENDATIONS
Conclusions………………………………………………………………….….……13
Recommendations……………………………………………………………….…...14
REFERENCES…………………………...……………………………………………………...15
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I.
INTRODUCTION
Purpose
The spread of Covid-19 has influenced everything in society. It has brought disruption to
all, and it doesn't seem as though any nation will be unaffected. This has contributed to major
shifts in economy as a result of closures of many businesses. Dodd (2020) mentioned in his
research findings that “on average, respondents to his survey reported that their company’s sales
revenues had declined 17.81% during the two months preceding the survey”. This decrease in
revenues lead to permanent close down of many businesses. Nearly 100,000 facilities
temporarily shut down as a result of the pandemic are now out of operation, according to Sraders
and Lambert’s (2020) report.
Globe Telecom, Inc. has been one of the many businesses affected since the onset of the
worldwide COVID-19 pandemic. In this paper, problems/issues faced by the company since the
pandemic started was being analyzed, and there are suggested solutions provided that may
theoretically help them improve the efficiency of their business operations. Globe may consider
incorporating these ideas to their own in addressing their current situation.
Applied Concepts
Strategic management was generally believed to be the solution to all issues during the
mid-1960s and mid-1970s. (David and David, 2017) According to stratadecision.com (n.d.),
strategic management process contributes to the achievement of justifiable strategic competitive
advantage. It generates value for the company when properly conceived and implemented by
concentrating on and analyzing opportunities and risks, then exploiting its strengths and
weaknesses to help it thrive, evolve, and develop.
The book “Strategic Management; A Competitive Advantage Approach, Concepts and Cases”
written by Fred R. David and Forest R. David is used as a reference to analyze the issues and propose
strategies faced by Globe. Strengths, Weaknesses, Opportunities, Threats (SWOT) Matrix was used in
analyzing the issues of the said company. Moreover, in propositioning strategies, product development
and forward integration, and concentric diversification.
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Disclaimer
All of the information given in this document is for educational and informative purposes
only. The assertions and ideas expressed in this paper are the view of the authors themselves. It
is not intended to offer professional advice as a replacement. Moreover, in making this
document, the writers have used references in formulating their proposed strategies and
analyzing the company’s current issues.
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II.
COMPANY INFORMATION
BRIEF HISTORY
Globe Telecom, Inc., commonly shortened as Globe, engages in the provision of
telecommunications services wherein it offers digital mobile communications, fixed line
communications, and broadband services. It was originally incorporated on January 16, 1935 as
Globe Wireless Limited with a franchise to operate wireless long distance message services in
the Philippines but eventually changing its name to Globe in the year 1992. Its headquarters is
located at Bonifacio Global City, Taguig, Metro Manila, Philippines and spearheaded by Ayala
Corporation and Singapore Telecom, Inc as its main principal shareholders. It is listed on the
Philippine Stock Exchange under the ticker symbol GLO in which it provides digital wireless
communication services nationwide under the "Globe Postpaid", "Globe Prepaid", and "TM"
brands using a fully digital network while also providing international long-distance services.
From its 2G, 3G, and 4G commercial wireless services, Globe is also introducing its 5G foot
print in key areas in the country this year.
There had been several issues and complaints that Globe encountered through the years
but still remains as one of the top players in the telecommunications industry. Amidst of all the
said issues, they are given several awards and recognitions such as Most Socially Responsible
Company - Philippines 2020, Silver Stevie Award for Project Eagle, Brand Experience of the
Year (Business-to-Business), and named Best Company to Work for in Asia for 2019.
INDUSTRY CLASSIFICATION
Industry classification is a detailed classification of prevailing industries in the country as a
means to categorized them depending on where the company belong based on their own business
activities. It is composed of four digit code that stands as a representation of its division and
specialization among other industries.
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Section description:
Information and Code: J
Communication
Division: Telecommunications
Group:
Code: 61
Wireless
Telecommunications Code: 612
Wireless
Telecommunications Code 6120
Activities
Class:
Activities
VISION, MISSION, GOALS AND OBJECTIVES
Vision
We see a Philippines where families' dreams come true, businesses flourish, and the nation is
admired.
Mission
We create wonderful experiences for people to have choices, overcome challenges, and discover
new ways to enjoy life.
Circle of Happiness
EMPLOYEES are empowered and find meaning in work. CUSTOMERS are special and valued.
SHAREHOLDERS are confident and rewarded.
Purpose
In everything we do, we treat people right to create a Globe of Good.
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Core Values
The Globe Way
We treat people right to create a Globe of Good:

We put customers first.

We value people and together, we
make a difference.

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We act with integrity.

We care like an owner. We keep
things simple.

We move fast. We are better every
day.
III.
CASE DESCRIPTION
Current Problem or Situation
The fast-faced spread of coronavirus forced the government to intervene by
implementing preventive measures such as community lockdowns all throughout the country that
eventually disabled most industries in the Philippine Economy. According to the Asian
Development Bank (ADB)(2020), the Philippine economy is expected to contract up to 7.3% of
which a 9% contraction has been reported in the first half of 2020. Globe Telecom, Inc. is one of
the major players in the Philippine Telecommunications Industry alongside Smart
Communications, Inc. These two TELCO giants for many years are fighting head-to-head in
providing the best service to its consumers. However, the strike of the coronavirus posed a
different need on the output’s telecommunications company provides. An article posted in
article.org (2020) describes the situation best “Coronavirus: Access to the internet can be a
matter of life and death during a pandemic”.
A financial issue in Globe Telecom, Inc. arises when the imposition of
community lockdowns disrupts Globe’s capital investment plans which led to capital expenditure
(CAPEX) budget review by the corporation. On August 4, 2020, Globe Telecom Inc. released
the statement that the corporation will cut its CAPEX by 20%. Due to the impact of
Coronavirus, capital investments such as the construction of network towers would not proceed
plus the long process of having construction permits made capital investments execution
difficult. Fitch ratings stated that “the new common-tower policy is also likely to hasten tower
builds and access to cell sites, which are being held up by the lengthy regulatory approval
process for permits.”. In addition, the CAPEX budget cut according to fitch ratings is done
to ease the burden of cash flow. The cut also delays what could be globe’s advantage of network
upgrades to ensure customer loyalty with its upcoming competitors such as Converge ICT
Solutions Inc. and Dito Telecommunity Corporation who wants to have a fair share of the
telecommunication market. The company still is planning a high CAPEX in 2021 in order to
remain on the lead with the competitors.
Globe Telecom, Inc. reported an increase in sales of its products and services to
the market. the company showed a 58% increase in home broadband subscribers which is
equivalent to almost 2.9 million additional subscribers. The very reason of the surge of
subscribers acquiring telecommunication companies’ products and services is due to the
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occurrence of Coronavirus which cancelled face-to-face interaction and isolated individuals on
their respective homes. As the duration of coronavirus lengthens more households “gear up for
working and learning from home and more are expected to follow suit as public schools reopen
in October.” (Globe, 2020) The additional subscribers however carry a problem especially in the
period of COVID-19 as community lockdowns resulted to a decrease in human resources
especially in customer service department of globe. An article released by tribune.net (2020),
reported that “BPO closures caused the manpower support for customer service operations to
drop nearly by half and the remaining service complement for back office, social media, and
aftersales support left to operate at only 49%, 66%, and 57%, respectively, of pre-COVID
manpower supplement” furthermore Globe still exploring work from home for customer agents
since it involves a lot of risk that could potentially damage the company and its consumers due to
“increasing number of online scams, fraud and social engineering which may put customers’
privacy and security at risk.” (Inquirer.net, 2020)
The problem with the decrease in human resources also leads to problems in
the customer service area. Since there is a tremendous decrease in human resources and a huge
increase in the number of users attending to customers will be more difficult plus the government
policies that could hinder the work needed to be done to resolve product/service problems. A
globe user reported his experience using the service and describe it as “My hell like experience
with Globe during pandemic” (globe.com.ph, 2020) wherein an internet interruption happens
having 6 ticket numbers and a period of 21 days had already lapse— 3 days before the end of
subscription before a clear response has been emailed only to say that subscription could be
transferred. Also, the user “requested to speak with a supervisor 15 times 10 times left on the
queue for more than an hour then line will be cut automatically.” This kind of customer service is
a big problem in a situation where reliance on the internet and internet companies plays a vital
role in accomplishing daily tasks at work or in school.
The headline said it best “Coronavirus: Access to the internet can be a matter of
life and death during a pandemic”. The internet from being a want is turning to a need— a need
for stable and fast connectivity, to a life people was used to. It connects isolation with social
interaction and fast action to the problems is needed.
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IV.
ANALYSIS
SWOT MATRIX
SWOT Matrix
Strengths
Weaknesses
S1. Globe's self-service app user
base jumps 250% in 9-month
period - Globe keeps P63-billion
spending plan to grow its network
this 2020 which includes building
its 5G footprint.
W1. Number of complaints from
customers regarding poor internet
connection and poor customer
services.
W2. Number of cell towers is not
sufficient to cater increasing number
S2. Globe expands broadband of consumers.
offering for Globe at Home Prepaid
WiFi customers.
S3. Globe extends grace period for
bills payment to 60 days.
Opportunities
SO Strategies

Since Globe are offering a
Home Prepaid WiFi to
customers, they may offer
variety of prepaid promos
that can be affordable for
the increasing number of
consumers. (S2, O1)

Globe
expansion
on
broadband offering could
target the increase in
number of home broadband
subscribers by aligning
new
products/services
based on the demand of
market. (S2, O1, O2)
O1. Home Broadband
subscriber base reached
nearly 2.9 million and
will continue to grow due
to covid-19
O2. There are only few
competitors
on
telecommunications
industry
in
the
Philippines with only
three of them currently
listed in the Philippine
Stock Exchange.
THREATS
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ST Strategies
WO Strategies


Since the demand for internet
connection will continue to
rise because of the pandemic
issue, Globe should consider
to improve their customer
service by having a more
responsive attendant to the
complaints and to be more
engaged in giving proper
instructions on solving the
issues raised by their
customers. (W1, O1)
Due to the increasing number
of customers, Globe may
provide
an
artificial
intelligence that can serve as
a
customer
service
representative
to
avoid
unresolved
issues
or
complaints from customers
(W1, O1)
WT Strategies
T1. Due to COVID-19
threat to public health,
temporary
closure,
ongoing social distancing,
that limits personnel, on
some
BPO
partners
caused lack of manpower
support
T2. Government pressure
on is increasing on
services provided by
telecommunications
companies
T3. Competition between
in the market to get
tougher next year with
the targeted commercial
launch of the third telco
player and strengthened
status of Converge ICT
Solutions Inc. in the
broadband space

Globe keeps P63-billion
spending plan to grow its
network this 2020 which
includes building its 5G
footprint execution could
promote brand loyalty as
the number of competitors
increases. (S1, S2, T3)

As huge competition is
expected next year, Globe
can appeal to its customers
by offering not just
extending the payment
period for bills but to also
spread the payment period
of balances like how
MERALCO did in the
middle of the quarantine
period. (S3, T3)

Globe
may
consider
eliminating its credit limits
or consider adjusting it for
this year to compensate
poor internet connection.
(S3, T3)

As the subscribers keep on
increasing in numbers, they
may consider partnering up
with other BPOs to cater
complaints of the customers.
(W1, T1)

To address the pressure set by
the Government, Globe may
adjust number of cell towers
more than they plan to build
to cater the increasing number
of user per tower and provide
them a faster service. (W2,
T2)
SO STRATEGIES
Globe has been keeping its stability despite of pandemic crisis. And it keeps on addressing issues
from them. One of this is introducing Go Promos that can be suitable for the increasing number of
consumers. It has been expanding its Globe broadband offering by putting connection in many areas in
Provinces. However, in SO strategies, Globe may still offer more affordable prepaid promos and new
products or services based on customer’s demand to target the interests of increasing internet users who
are stuck at home due to COVID-19. In addition, providing new products or services may set an
additional advantage against their competitor.
WO STRATEGIES
As the number of costumers is increasing, the numbers of complaints are also increasing due to
poor customer services and internet connection that Globe is providing. Globe address this issue by
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encouraging its customers to use self-service applications for basic inquiries and requests and only critical
or difficult transactions will be catered by the customer service representative. However, not all concerns
are being addressed properly. WO strategy suggests that Globe should consider to improve their customer
service by having a more responsive attendant to the complaints and to be more engaged in giving proper
instructions on solving the issues raised by their customers. Moreover, they may also provide an artificial
intelligence that can serve as a customer service representative to avoid unresolved issues or complaints
from customers.
ST STRATEGIES
Globe put a 60 days grace period to address late payments from the customers due to
government’s decision on community quarantine. ST strategy also suggests that they may also spread the
payment period of balances like how MERALCO did in the middle of the quarantine period. In addition
to it, they may also adjust it for this year to compensate the poor service and connection they provide to
customers before.
WT STRATEGIES
Globe addressed their issues by launching an agile organization with a deeper understanding of
the customer to allow them to be more responsive to customer needs and by obtaining a total of 715
permits to build cell towers from various LGUs throughout the world, thus spurring its bid to enhance its
customers’ voice and data experience. However, the authors of this paper propose that Globe may adjust
number of cell towers more than they plan to build to cater the increasing number of customers. There is a
need to do so because according to Amojelar and Araneta (2020), to be able to provide the proper
coverage and provide adequate service, the Philippines needs at least 50,000 cellular towers. At present,
there are only about 16,000 buildings, covering 8,000 sites. Moreover, they may consider partnering up
with other BPOs to help them cater the complaints of their customers. This is caused by temporary
closure of certain partner BPOs and suspension of BPO activities when workers become infected of
COVID-19.
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V.
CONCLUSIONS AND RECOMMENDATIONS
Conclusion
Telecommunications is one of those sectors who experienced higher demands for their
service amidst this pandemic as a large portion of the working bodies and students were forced to
stay at home. Globe telecom, even after being tagged as one of the telecommunications giants,
still experienced being overwhelmed by this crisis. It can therefore be concluded, that no matter
how big of a company you are, there are still things that are out of your control, and that will
open the need for strategic planning.
Strategic management/planning help companies like Globe, in this type of situation, to be
able to live up to their mission, vision, purpose and core values, and also to achieve the
company’s goals and objectives. At times like this, but not far from their every day struggles,
firms are facing problems but they should create the best solution to maintain their standing in
the industry. As a company with an already established brand name, Globe definitely has the
market and resources in order to survive. By creating a strategy that utilizes these internal
strengths and lays hold of external opportunities, the company can still be stable despite the
challenge brought by the pandemic. However besides the stated effects of these fortuitous events,
there are also company weaknesses and other external threats that could affect the company such
as customer satisfaction, competition, failure of operations and government pressure. For this
reason, strategies that will be formulated by the management should also cater these factors.
Strategies should be flexible, objective, transparent and realistic. Using them, companies
can turn weaknesses into strengths and transform external threats into unexpected opportunities.
With the concentration of management to live on the firm’s mission and vision, proper internal
control, and the consideration for ethics and social responsibility, it is possible to handle the
company problems with ease.
To sum it up, there are always events inside or outside of the business that might affect
the performance of a firm no matter what the size is. In times of a pandemic like what happened
in the year 2020, even a telecommunication giant like Globe will be in distress. However with
the advantage of their already well-established branding and the nature of their business, proper
strategy formulation, implementation and evaluation they can manage to turn the tables and
convert the situation as an edge from their competitors.
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Recommendation
During unforeseen events like calamities and pandemics, not only the people are affected,
but also the companies which provide services for the public. However in order to avoid severe
damages and the adverse effects of such events, businesses like Globe should have plans ahead
of these situations or if not, plans to adjust. This is to make sure that they can still achieve what
is written in the mission, vision, purpose and core values of their company.
Management should first assess the situation that the company is in and if they can use it
on their benefit or if they will be at a disadvantage. After this, they should be able analyze their
internal strengths and weaknesses, external opportunities and threats to formulate a strategy that
will best solve or minimize the damages that they will face. It is either by focusing on their
financials, minimizing customer complaints by improving customer service, training and
developing employee skills or in other functional areas of business.
In the formulation of the strategies, they should also consider their company goals and
objective, the capacity of the company’s internal control and look over the possibility that these
actions that they are planning will be ethical and in accordance to their stand in corporate and
social responsibility.
Indeed, businesses like Globe can still manage to survive even a pandemic with the help
of their efficient human resource, smart budgeting and the management’s capability to formulate,
implement and evaluate strategies.
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