I. Company Background

[pic]

The Philippine Long Distance Telephone Company (PLDT), incorporated on November 28, 1928, is a telecommunications service provider in the Philippines. Through the Company’s three principal business segments, wireless, fixed line and BPO, the Company offers the diversified range of telecommunications services across the Philippines’ fiber optic backbone and wireless, fixed line and satellite networks. The Company provides cellular and wireless broadband, satellite and other services through its wireless business. The Company is the provider of fixed line telecommunications services, servicing retail, corporate and small medium enterprise (SME), clients. On December 4, 2012, the Company sold its BPO segment. The Company’s cellular business, which it provides through Smart and DMPI to almost 70 million subscribers as at December 31, 2012, approximately 97% of whom are prepaid subscribers, focuses on providing wireless voice communications and wireless data communications, primarily through text messaging, but also through a variety of VAS, and mobile broadband. Smart markets nationwide cellular communications services under the brand names Smart Prepaid, Talk ‘N Text, Smart Postpaid and Smart Infinity. Smart Prepaid and Talk ‘N Text are prepaid services while Smart Postpaid and Smart Infinity are postpaid services, which are all provided through Smart’s digital network. A cellular voice service consists of all voice traffic and voice VAS, such as voice mail and international roaming. Smart Unli Data Plan offers unlimited Internet browsing on postpaid basis, best suited for subscribers with high data usage. Through Wolfpac, it is engaged in the business of consumer mobile applications software development and consumer mobile content development and other allied services. Through Chikka, it provides an internet and GSM-based instant messaging facility for mobile users or subscribers. Services include instant text messaging from personal computer to mobile phones and vice versa, text newsletter, text-based promotions, multi-media messaging, subscription-based services, and other mobile VAS. The Company provides Wireless broadband, satellite and other services through SBI, DMPI and PDSI, its Wireless broadband service providers; Wolfpac and Chikka Group, its Wireless content operators; and ACeS Philippines, its satellite operator. The Company’s fixed line business group offers local exchange, international long distance, national long distance, data and other network and miscellaneous services. The Company has 2,063,794 fixed line subscribers as of December 31, 2012. The Company’s 11,100-kilometer long DFON is complemented by an extensive digital microwave backbone operated by Smart. These microwave networks complement the higher capacity fiber optic networks and are vital in delivering reliable services to areas not covered by fixed terrestrial transport network. The Company’s fixed line network reaches all of the cities and municipalities in the Philippines, with a concentration in the Metropolitan Manila area. The Company’s network offers the connections to international networks through two international gateway switching exchanges and various regional submarine cable systems, in which it has interests. The Company’s local exchange service, which consists of its basic voice telephony business, is provided primarily through PLDT. The Company also provides local exchange services through its subsidiaries Philcom and its subsidiaries, BCC, PLDT Global Group, ClarkTel, SubicTel, SBI, PDSI, Maratel and Digitel. Together, these subsidiaries account for approximately 13% of its consolidated fixed line subscribers. The Company’s international long distance service consists of switched voice and packet-based voice and data services that go through our IGFs. The Company also generates international long distance revenues through access charges paid to us by other Philippine telecommunications carriers for incoming international voice calls that terminate to its local exchange network. The Company’s national long distance services are provided primarily through PLDT. This service consists of voice services for calls made by the Company’s fixed line customers outside of their local service areas within the Philippines and access charges paid to us by other telecommunications carriers for wireless and fixed line calls carried through its backbone network and/or terminating to its fixed line customers. The Company’s data and other network service revenues include charges for broadband, leased lines and IP-based services. These services are used for broadband Internet, and domestic and international private data networking communications.

1.1 History PLDT was established on November 28, 1928, by an act of the Philippine legislature and approved by then Governor-General Henry L. Stimson by means of a merger of four telephone companies under operation of the American telephone company GTE. Known as Act 3436, the bill granted PLDT a 50-year charter and the right to establish a Philippine telephone network linking major points nationwide. However, PLDT had to meet a 40-day deadline to start implementing the network, which would be implemented over a period of one to four years. By the 1930s PLDT had an expansive fixed-line network and for the first time linked the Philippines to the outside world via radiotelephone services, connecting the Philippines to the United States and other parts of the world. Telephone service in the Philippines was interrupted due to World War II. At the end of the war, the Philippines' communications infrastructure was in ruins. U.S. military authorities eventually handed over the remains of the communications infrastructure to PLDT in 1947, and with the help of massive U.S. aid to the Philippines during the 1940s and 1950s, PLDT recovered so quickly that its telephone subscribers outpaced that of pre-war levels by 1953. On December 20, 1967, a group of Filipino entrepreneurs and businessmen led by Ramon Cojuangco took control of PLDT after buying its shares from the American telecommunications company GTE. The group took control of PLDT's management on January 1, 1968, with the election of Gregorio S. Licaros and Cojuangco as chairman and president of PLDT respectively. A few months later, PLDT's main office in Makati City (known today as the Ramon Cojuangco Building) was opened, and PLDT's expansion programs begin, hoping to bring reliable telephone services to the rural areas. PLDT was permitted to operate during Martial Law. During the 1970s, PLDT was nationalized by the government of then President Ferdinand Marcos and in 1981, in compliance of the existing policy of the Philippine government to integrate the Philippine telecommunications industry, purchased substantially all of the assets and liabilities of Republic Telephone Company, becoming the country's telephone monopoly. Under this monopoly, service expansions were severely curtailed or practically nonexistent. In the Martial Law years people would apply for phone service only to wait for years and years on end behind an impossibly long application backlog. It is not unheard of for people and small businesses back then to barter for a single telephone line in the black market for tens of thousands of pesos. The incumbent Prime Minister Lee Kuan Yew of Singapore referred to the situation when visiting the Philippines during the term of President Fidel V. Ramos. He said, albeit in jest, “In the Philippines 95% of the population has no telephone, while the remaining 5% are waiting for that dial tone.” In 1986, after President Marcos was overthrown, the company was re-privatized as Ramon's son, Antonio "Tonyboy" Cojuangco assumed post as PLDT chief. By 1995, with the passage of the Telecommunications Act and the subsequent deregulation of the Philippine telecommunications industry, the company has been de-monopolized. Later that year, Hong Kong-based First Pacific Company Ltd. acquired a 17.5% stake in PLDT making it the majority owner of the conglomerate. The company's CEO Manuel V. Pangilinanbecame the new conglomerate's President replacing Cojuangco, who assumed post as Chairman until 2004, when Pangilinan became his successor. In 1991, Smart Communications was incorporated, with its major shareholders at the time being certain Philippine companies and other affiliates of First Pacific (the parent company of PLDT), as well as NTT Communications Capital (UK) Limited. Both groups owned around 96.7% of the new company. On March 24, 2000, PLDT completed its share-swap acquisition of Smart, making Smart a 100%-owned PLDT subsidiary. PLDT acquired 51.55% of the shares of Digital Telecommunications Philippines from JG Summit Holdings on March 2011 with the cost of P69.2 Billion PHP. Because of this, the shares of Digitel and JG Summit in the PSE surges while PLDT's shares remained unchanged. In the deal, JG Summit will have a 12% share in PLDT. It was finalized by the National Telecommunications Commission on October 26, 2011. Twenty percent of Meralco shall be sold to PLDT, according to the Lopez family who owns the Philippine's largest electric distributor on March 13, 2009. The deal is set to be done in the third quarter of 2009 with the cost of 20 billion pesos. The said action was done to prevent the hostile takeover of San Miguel Corporation, which already owns a large portion of Meralco.

2. Vision “To bring its operations to world-class standards and become the best telecommunications company in the region.”

3. Mission PLDT will be preferred full service provider of voice, video and data at the most attractive level of price, service quality, content and coverage, thereby bringing maximum benefit to the Company’s stakeholders.

4. Values • Accountability - We take full responsibility for our actions and decisions • Integrity - We do the right thing • Fairness - We uphold justice and fair play • Transparency - We disclose accurate and prompt information 5. Management Team • Officers Chairman of the board - Manuel V. Pangilinan President and CEO - Napoleon L. Nazareno Executive Vice President - Ernesto R. Alberto Senior Vice President - George N. Lim Senior Vice President - Rene G. Bañez Senior Vice President - Claro Carmelo P. Ramirez Senior Vice President and Treasurer - Anabelle L. Chua Senior Vice President, Corporate Secretary, General Counsel and Chief Governance Officer - Maria Lourdes C. Rausa-Chan Head of Regulatory Affairs and Policies - Ray C. Espinosa • Board of Directors
|Manuel V. Pangilinan |
| |
|Helen Y. Dee |
| |
|Ray C. Espinosa |
| |
|James L. Go |
| |
|Setsuya Kimura |
| |
|Napoleon L. Nazareno |
| |
|Hideaki Ozaki |
| |
|Artemio V. Panganiban |
| |
|Ma. Lourdes C. Rausa-Chan |
| |
|Pedro E. Roxas |
| |
|Juan B. Santos |
| |
|Tony Tan Caktiong |
| |
|Alfred V. Ty |
| |
|1.6 Subsidiaries |
| |
|WIRELESS |
|Smart Communications, Inc. and Subsidiaries |
|Smart Broadband, Inc. and Subsidiaries |
|Chikka Holdings Limited and Subsidiaries |
|Digitel Mobile Philippines, Inc |
| |
|FIXED LINE |
| |
|PLDT Clark Telecom, Inc. |
|PLDT Subic Telecom, Inc. |
|PLDT Global Corporation and Subsidiaries |
|PLDT-Philcom, Inc. and Subsidiaries |
|PLDT-Maratel, Inc. |
|Digital Telecommunications Philippines, Inc. |
|ePLDT, Inc. and Subsidiaries |
|Pilipinas Global Network Limited |
| |
|BPO |
|SPi Technologies, Inc. and Subsidiaries |
|SPi CRM, Inc. |
| |
|OTHERS |
|PLDT Communications and Energy Ventures, |

7. Mission/ Vision Statement Analysis A mission statement is a statement of the purpose of a company, organization or person, its reason for existing. It's like a goal for what the company wants to do for the world or “who are you trying to get there”. A vision statement is an aspiration description of what an organization would like to achieve or accomplish in the mid-term or long-term future or simply “ where you want to go”. It is intended to serves as a clear guide for choosing current and future courses of action.
|Essential components |Rating |Vision/Mission Statement |Evaluation |
|1. Products and services | |Service will be preferred full |True, because the company offered a network |
| | |service provider of voice, video and |services. |
| | |data | |
|2. Philosophy | X |NONE | NONE |
|3. Technology | |The company provides wireless |True, because its provide internet connections and |
| | |broadband, satellite and other |telecommunication services. |
| | |technology services | |
|4. Customer | |To bring its operations to |True, by satisfy people need with the most |
| | |world-class standards |attractive level of price with a good service |
| | | |quality. |
|5. Market | |Become the best telecommunication |True, by leading telecoms company PLDT won four of |
| | |company. |11 awards, including the prestigious Philippine |
| | | |Telecom Service Provider of the Year, handed out at|
| | | |the Frost and Sullivan Philippines Excellence |
| | | |Awards ceremony. |
|6. Concern for the public | X | NONE | NONE |
|image | | | |
|7. Concern for employee | X | NONE | NONE |
|8. Concern for survival, | |Bringing maximum benefit to the |True, PLDT recognizes that fulfilling its |
|growth and profitability | |Company’s stakeholders |obligations to its various stakeholders is an |
| | | |integral aspect of good corporate governance. |
|9. Self-concept | |Most attractive level of price, |True, PLDT delivers our services via a secure and |
| | |service quality, content and coverage|reliable network that provides the most direct |
| | | |routes to our customers in the Philippines and |
| | | |overseas, especially Europe. The partnership has |
| | | |resulted in the highest quality experience for our |
| | | |customers and a cost-effective network solution. |

II. External and Internal Environment An environmental analysis evaluates internal and external factors affecting an organization's performance, especially its marketing effort. An equivalent term is environmental scanning, referring to the ongoing nature of evaluating trends. Using environmental analysis, it evaluates the operating environment and establishes organizational goals. They determine whether or not the goals are obtainable with existing strategies. If they are not, new strategies must be developed or old ones must be adjusted.

2.1 Macro-Environment

Steps in Philippine Long Distance Telephone Co. (PLDT)
| Factors | Examples | Positive | Negative |
|Socio – Culture Factor |Filipinos show their concern with their| | |
| |relatives by using communications | | |
|Technological Factor |Customers are attracted to the social | | |
| |network | | |
| |Customers are always connecting a | | |
| |communication by an internet services | | |
| |and telephones. | | |
| | | | |
| | | | |
| | | | |
| | | | |
|Environmental / Economic Factor |Natural Calamities | | |
| |Not all customers can afford an | | |
| |internet connection to their houses | | |
| | | | |
| | | | |
|Political/Legal Factor |Taxes to the Government | | |
| |Politicians are using a social media to| | |
| |promote their selves | | |
| |for an election campaigns | | |
| | | | |

It describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. Environmental factors include ecological and environmental aspects such as weather, climate, and climate change and Economic factors include economic growth. Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.

1. Socio – Culture Factor • Filipinos show their concern with their relatives by using communications – Positive impact, having a wide range of products, from fixed line, wireless line, and internet connection.

2. Technological Factor • Customers are attracted to the social network – Positive impact, PLDT provides fastest internet connection. • Customers are always connecting a communication by an internet services and telephones – Positive Impact; The Company provides cellular and wireless broadband, satellite and other services through its wireless business.

3. Environmental/ Economic Factor • Natural Calamities – Negative Impact, Unpredictable weather. • Not all customers can afford an internet connection to their houses – Negative impact, by its low salary income.

4. Political/Legal Factor • Taxes to the Government – Negative impact, Philippine Government has a power of taxation. More sales or profits as a result, more taxes. • Politicians are using a social media to promote their selves for an election campaign – Positive impact, by advertising their campaign strategy by using internet connection.

2.2 Industry Environment

2.2.1 “PORTERS FIVE FORCES OF COMPETITION”

Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization. The tool is used to identify whether new products, services or businesses have the potential to be profitable. Porter's five forces include - the threat of established rivals, the threat of new entrants, threat of substitute products or services, threat of suppliers and the threat of customers and lastly, threat of substitute or compliment.

|EVALUATION |
|Threat of Rival Firms |STRONG |
|Threat of New Entrants |MODERATE |
|Threat of Suppliers |STRONG |
|Threat of Customers |STRONG |
|Threat of Substitute and Compliment |STRONG |

Threats of Rival Firms, there are a strong competition between them because they do exist for a long period of time as well they offer same services but maybe they differ on the price and on how they provide the service.

Threats of the New Entrants, even though they are new to the industry, there still a strong competition between them because people will make a choice on what certain company that they want to buy the products.

Threats of Suppliers, still there are a strong competition.

Threats of Customers, there are a strong competition because these customers are the one who will need the service and they are the reasons why a company is gaining profit. Without them a company may no longer exist, it shows how important customers are. Threats of Substitute, people are always looking for something a cheaper price but still the quality of service is provided.

THREAT OF RIVAL FIRMS 1. GLOBE TELECOM [pic]

Globe is a leading telecommunications company in the Philippines. Our mission is to transform and enrich lives through communications by way of our vision of making great things possible.

Through our renewed commitment to "enriching lives through ease and relevance", our goal is to enrich everyday communications by simplifying and removing obstacles in communication technology so that we bring our customers closer to what matters to them most.

MISSION: Transform the lives of people, businesses and communities through innovative solutions.

VISION: Happiest customers and employees.

OUR VALUES:

We put our Customers first. Our people make the difference. We act with integrity. We care like an owner. We keep things simple. To us, it's be fast or be last.

I love Globe. Together, we make great things possible. HISTORY In 1928, Congress passed Act No. 3495 granting the Robert Dollar Company, a corporation organized and existing under the laws of the State of California, a franchise to operate wireless long distance message services in the Philippines. The Robert Dollar Company subsequently incorporated in the Philippines as Globe Wireless Limited and in 1934, Congress passed Act No. 4150 transferring the franchise and privileges of the Robert Dollar Company to Globe Wireless Limited. Globe Wireless Limited was subsequently renamed Globe Mackay Cable and Radio Corporation. Congress, through Republic Act 4630 enacted in 1965, further expanded its franchise to allow it to operate international communications systems. Globe Mackay Cable and Radio Corporation was closed in the Philippines by Martial law. Shortly before the expiration of its franchise, the Batasan Pambansa in 1980 enacted Batas Pambansa 95 granting Globe Mackay Cable and Radio Corporation a new franchise. In 1991, Globe Mackay was subsequently merged with Clavecilla Radio Corporation. Globe Mackay, as the surviving company was renamed GMCR, Inc. and on March 19, 1992, the Philippine Congress passed Republic Act 7229 approving the merger and the transfer of the franchise of Clavecilla Radio Corporation to the surviving company to be renamed GMCR, Inc. Seven years later, on August 20, 1998, the Securities and Exchange Commission (SEC) approved the change of name of GMCR, Inc. to Globe Telecom, Inc. (Globe).

2. BAYAN TELECOMMUNICATIONS [pic]

Bayan Telecommunications Holdings Corporation was incorporated in October 15, 1993. Bayan Telecommunications, the operating arm of BTHC and formerly known as International Communications Corporation, was incorporated in April 18, 1961.

We are duly enfranchised to provide the following major telecommunications services: • Local Exchange Carrier (LEC) service • International Gateway Facility (IGF) service; • Leased Line service, domestic and international • Public Trunk Radio service • Public Calling Office service

Bayan Telecommunications' existing nationwide network is composed of satellite, terrestrial and land/submarine based cable facilities. The network includes capacities in the National Digital Transmission Network (NDTN), a joint project of six Philippine telecommunications carriers.

Bayan Telecommunications has 83% capacity interest in the NDTN project. The NDTN is the only major alternative telecommunications backbone in the country. Bayan Telecommunications' network also includes RCPI's existing Synchronous Digital Hierarchy (SDH) microwave network with spur links that also extends from Luzon to Mindanao. Both Bayan Telecommunications and RCPI's networks are linked together to form a seamless and redundant system.

THREATS OF NEW ENTRANTS

1. COMCLARK NETWORK & TECHNOLOGY [pic]

Established in 1995, we offer: Internet and cable TV services, we also do web hosting, computer product repair, and other services, one of the most well know internet company in the Philippines, we have at least 700 to 800 employees, we owned 112 units of utility vehicles. 2. MOZCOM COMMUNICATION [pic]

It was in 1993 when the Department of Science and Technology contracted ComNet (Computer Systems Corporation) to setup a wide-area network (WAN) that would connect various local universities and research organizations to the Internet. Commercial insights on the success of this project eventually gave rise to Mozcom, "The first commercial Internet Service Provider in the Philippines."

Established by Dr. Willy N. Gan and Dr. William T. Torres, Mozcom came to be the first ISP to have offered different levels of connectivity,serving both corporate and individual users thereby making more Filipinos experience being connected with the rest of the world. The Philippines' first leased line connection to the Internet officially became "online" on March 29, 1994. • Mozcom was established in 1994 , making it the Philippines' 1st full service commercial ISP • First nationwide coverage was achieved in July 1997 with dialup access points in all regions • First international roaming was established in 1998 through the partnership with iPass • The First DSL service in the country was offered in Mozcom Baguio as early as November 1998 • First t3 satellite link in the Philippines running pure IP traffic direct from PanAmSat in California on September 1999, with a redundant satellite link from Loral-Cuberstar from Honolulu • First Akamai-accelerated(TM) ISP in the Philippines in February 2001 • First local ISP to deploy dial-up acceleration in 2004 through partnership with Propel Software As Internet usage in the country becomes more widely accepted, Mozcom continues to find value in creating new products and services that are geared towards sustaining business and supporting fast-paced lifestyles. Backed by highly-competent technical support and sales staff that are certified by Cisco, Microsoft and EC-Council, clients can be reassured that their needs are understood and met. Today, Mozcom is expanding to provide total business solutions specializing in open source, XML, Web Services, mobile, e-commerce, biometrics, smart cards and RFID technology WI-TRIBE [pic] With Wi-tribe is inspired to create your own world. Wi‐tribe is a lifestyle; a lifestyle of independence and innovation that changes your life for the better with more exciting ways of thinking. No boundaries, just freedom; offering only the best broadband to emerging markets around the globe, and bringing everyone together under one tribe – wi‐tribe. Backed by unrivaled experience, knowledge and vision, Wi‐tribe, a Qtel Group Company, was born in April of 2007 and proudly delivers high quality broadband internet services to consumers in Pakistan, Jordan and Philippines, with a regional Head Office in Doha, Qatar. The vast experience this world leader brings has fuelled the growth of the wi-tribe venture worldwide, launching wi-tribe globally as part of Qtel’s 2020 vision and heading towards being positioned as the world’s preferred broadband leader. In 2008, operations were launched in Jordan, expanding to several cities across the kingdom. With wi‐tribe’s dedicated customer care representatives, it has quickly become a force to be reckoned with and is helping evolve the telecom industry. In 2009, wi-tribe group launched its largest operations in Pakistan. With wi‐tribe’s firm commitment to improving the digital divide and the enhancement of lifestyle, Pakistan is the ideal start‐off point to bring to this part of the world the bright vision of our tribe. It will allow the people of Pakistan to experience our dedication to delivering the best of services with our unique customer service experience. With the launch of wi‐tribe Philippines in 2010, Qtel and San Miguel is firm in their commitment to the visions and directions wi‐tribe has laid down in its foundation. This advanced market has been another exciting venture for the tribe and the first expansion of the group into south‐east Asia. With a refreshed brand, wi-tribe is geared to be a market leader; always bringing innovative offerings and methods to ‘bridge the broadband gap’. As an ‘enabler’, wi-tribe aims to increase the broadband market by continuously diversifying and simplifying online access. Group Headquarters: Doha, Qatar Regional Presence: Jordan, Pakistan, Philippines

2. SOLID BROADBAND CORP. [pic] Solid Broadband Corporation,(formerly Destiny Inc) a broadband service company, is the largest provider of multimedia service in the Philippines, bringing cutting edge technology in multimedia, right into the homes of the average Filipino. We are pursuing our multimedia business by building a seamless nationwide broadband network using state-of-the-art digital technology, both wired and wireless, to serve the public’s growing need for advanced information and communication services such as high speed data communications, cable television as well as telephony services.

OUR HERITAGE The corporate heritage of Solid Broadband Corporation is the discipline and resilience of the Consumer Electronics Industry gained through Solid Group Inc. (SGI) Joseph and Elena Lim, the founders of SGI have led it through its successful history of manufacturing and marketing some of the generation of growth and opportunity, Solid Broadband Corporation was their private venture organized in 1996 to provide the springboard into multimedia orientated business.

OUR FUTURE In 1999, arrangements for SGI’s direct investment into Solid Broadband Corporation are finalized. And in March 2000, the acquisition of Solid Broadband Corporation was accomplished to provide SGI the broadband capability to launch its B2B and B2C operations that will be supported with its current substantial brick and mortar operations which include logistics and distribution, a nationwide service center network, strong marketing capabilities and consumer financing.

With this recent acquisition of Solid Broadband Corporation by SGI, we are poised to become a part of the Philippines’ first full-pledge integrated multimedia company, spanning cable, high-speed Internet services, computer communication and content management.

THREATS OF SUPPLIERS

1. FOREIGN INVESTORS American Depositary Receipts (ADRs) were issued with each American Depositary Share (ADS) that represented one PLDT common share. The ADSs are listed and traded on the New York Stock Exchange and the Pacific Exchange in the US. PLDT has one of the largest market capitalizations among Philippine-listed companies.

2. International & Foreign Contractors Philippine Long Distance Telephone Co. (PLDT) has tapped seven international and local contractors for the first phase of its P1.8-billion fixed-line fiber-to-the-home (FTTH) network rollout program. The chosen contractors are Chinese telecom suppliers Huawei Technologies, FiberHome, Sunsea Telecom Ltd., and Tyco Electronics, Singapore-based Fujikura Asia Ltd., Sweden’s Ericsson Telecommunications, and Fibercom Telecom Philippines, a local supplier.

3. STAKEHOLDERS Minority stockholders have the right to nominate candidates for directors, including independent directors, and the right to cumulative voting which enables minority shareholder representation on the Board.

THREAT OF CUSTOMER

1. BUSINESSMAN Someone involved in business, where in particular undertaking of activities, commercial or industrial, for the purpose of generating revenue from a combination of human, financial, and physical capital that further fuels economic development and growth. 2. CHANGING NETWORK SERVICES PLDT continually strives to satisfy its customers’ expectations and concerns regarding quality of service, pricing, application process, service provisioning process, repair and restoration service and the billing process.

3. GOVERNMENT SECTORS

PLDT constantly seeks partnerships with the academe and the government in projects that could benefit not only the company, the academe or the government, but also Philippine society in general.

4. SMALL ENTREPRENEUR Reloadable, Can be reloaded via PLDT Load / Smart Load from over 1 Million retailers nationwide including sari-sari stores or at any PLDT Sales and Service Centers.

THREAT OF SUBSTITUTE AND COMPLIMENT

1. COMPUTER RENTALS Provides you with the option for you to rent a desktop computer, with no extra charges.

2. PAYPHONES Long distance calls using the service are offered at reduced rates. 3. MOBILE PHONES Modern cellular phones have an internet connection.

2. COMPETITIVE PROFILE MATRIX
| | |PLDT |Globe Telecom |Bayan Telecommunications |
|Critical Success Factors |WEIGHT | | | |
| | |Rank |Weighted score |Rank |
| |Rank |Weighted |Rank |
| | |Score | |
|Opportunities | | | |
|Online Market |.10 |4 |.40 |
|Network expansion helping to serve wider number of customers |.15 |4 |.60 |
|Dropping prices of PC and laptops |.05 |3 |.15 |
|Venture for new technologies |.10 |3 |.30 |
|Partnership with other establishments |.10 |4 |.40 |
|Threats | | | |
|Intense competition causing margin pressures |.05 |2 |.10 |
|Fixed line market drop |.15 |2 |.30 |
|Currency fluctuations impacting foreign revenues |.10 |2 |.20 |
|New Competitors |.05 |2 |.10 |
|Volatile cost |.15 |3 |.45 |
|Total Weighted Score |1.0 | |3.05 |

The table 2.3.2 illustrates the External Factor Evaluation according to its weight, rank and weighted score. The Key External Factors is based on its Opportunities and Threats. Based on the gathered data, the total weighted score of weight is 1.0, while the weighted score is 3.05.

2.3.3 Internal Factor Evaluation (IFE): PLDT Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basis for identifying and evaluating relationships among those areas. The Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation.
|Key Internal Factors |Weight |Rank |Weighted Score |
|Strengths | | | |
|Customers loyalty |.05 |3 |.15 |
|Leading market position in its operating market in Philippines |.15 |4 |.60 |
|Brand name |.15 |4 |.60 |
|Advanced Integrated Network helping to provide better services |.10 |4 |.40 |
|Over 18,000 people form the backbone of the workforce |.05 |3 |.15 |
|Weaknesses | | | |
|Foreign Investments |.10 |1 |.10 |
|High price competition with slowing domestic cellular growth |.10 |2 |.20 |
|Outdated technology |.10 |2 |.20 |
|Customer service |.10 |2 |.20 |
|Lack of presence in a rural areas |.10 |2 |.20 |
|Total Weighted Score |1.0 | |2.8 |

The table 2.3.3 shows the Internal Factor Evaluation according to its weight, rank and weighted score. The Key External Factors is based on its Strengths and Weaknesses. Based on the gathered data, the total weighted score of weight is 1.0, while the weighted score is 2.8.

2.3.4 Internal and External Matrix

The Internal-External (IE) matrix is another strategic management tool used to analyze working conditions and strategic position of a business. The Internal External Matrix or short IE matrix is based on an analysis of internal and external business factors which are combined into one suggestive model.

| IFE |Strong |Moderate |Weak |
|EFE | | | |
|High |I. |II. |III. |
|Medium |IV. |V. |VI. |
|Low |VII. |VIII. |IX. |

IFE EFE Strong - 3.0 – 4.0 High - 3.0 – 4.0 Moderate - 2.0 – 2.99 Medium - 2.0 – 2.99 Weak - 1.0 – 1.99 Low - 1.0 – 1.99

Table 2.3.4 illustrates the Internal - External Matrix. The total weighted score of Internal Factor Evaluation (IFE) Matrix is 2.8 which is Moderate, while the total weighted score of External Factor Evaluation (EFE) Matrix is 3.05 which is High.

III. BUSINESS OBJECTIVES
|PERFORMANCE AREA |OBJECTIVES |
|Market Position | Increase the 15% broadband service provider in year 2014. |
|Reputation | To be no. 1 telecom company and internet provider in 2014 |
|Employees |Dedicated staff and facilities are made available for the |
| |training and development programs of the Company in 2014. |

Market position, reputation and employees are the (3) three performances area that PLDT should focus. First, PLDT needs to focus on their market position so that they can achieve their vision which is,”To bring its operations to world-class standards and become the best telecommunications company in the region”. Here I set an objective of increasing the service provider in 2014. Their reputation is to be no.1 telecom company and internet provider in 2014. Because of the competition, PLDT really needs to do more when it comes to advertisements and promotions of their networks so that people can actually recognized them as a best network services. And Employees have a broad range of concerns which includes working conditions, skills training, career opportunities, health and safety, and work-life balance. The Company ensures that its employees are provided relevant training programs suited to their needs.

IV. RECOMMENDED STRATEGY

|CORPORATE LEVEL STRATEGY |FUNCTIONAL STRATEGY |
|Expansion Strategy | |
|Market Penetration | |
|We strive to satisfy our customers’ expectations and concerns regarding| |
|quality of service, pricing, application process, service provisioning | |
|process, repair and restoration service and the billing process. And | |
|develop service descriptions and process customer requirements |Marketing |
|specifications. | |
|Product Development | |
|Responsible for product development road map and launch dates. Prepare | |
|budgets and break-even analysis for new projects. And Identify and | |
|recommend new product concepts. | |
|Market Development | |
|Maintain up-to-date competitor knowledge with focus on its | |
|technological capabilities. And monitor competitors, create and update | |
|cross-references, perform ongoing research of competitor product | |
|features, mix and product development strategy. Must have thorough | |
|knowledge and understanding of competitor products to the component | |
|level and technology solution sources. | |
| | |

Corporate Strategy

Corporate strategy covers the strategic scope of the organization as a whole. For most organizations the corporate strategic plan is the only strategic plan required. Often strategy at the corporate level is simply referred to as corporate strategy, or in unified companies the corporate business strategy. The process that produces it is called corporate strategic planning, or sometimes simply corporate planning. In a few situations however, it may be justified to speak of corporate strategy to distinguish it from other kinds of planning. Functional Strategy Functional strategies are concerned with managing the functional areas of the organization, such as product or service development and design, marketing and sales, finance, human resources, production, research and development, etc., so that each function upholds contributes to individual business unit strategies and the overall corporate-level strategy. V. Action Plan Continue being an excellent service provider and promote new projects with new concepts which can catch customers’ attention. And continue to fulfill customers’ satisfaction about the service offered. Expand more networks.

VI. Conclusion The PLDT Group submitted its response to the second consultative paper of the National Telecommunications Commission (“NTC”) on whether “Significant Market Power” (“SMP”) obligations should be imposed on the Philippine telecommunications industry. In formulating its response, the PLDT Group took into account industry interests as well as the broader context of our nation’s economic development, drawing on the experience in other countries. Group believes that the basis for the need for regulatory reform is unclear and the envisioned SMP regime is inappropriate for the Philippines as the market is highly competitive and well-functioning. In addition, the imposition of SMP and its attendant obligations would discourage capital investments in a sector that the Philippine economy is highly dependent on. The PLDT Group has therefore proposed that the NTC explore its full range of options available on a cost-benefit basis, taking into consideration the specific local context of the Philippine marketplace. “The PLDT Group is in a unique position in the industry – we have the scale and ability to continue investing significantly in infrastructure and services which can impact positively on our country’s development. We have been always mindful however that this strength begets much responsibility. We have therefore seen to it that our subscribers derive commensurate benefits in terms of value and innovation,” concluded Chairman Manuel V. Pangilinan. This press release may contain some statements which constitute “forward-looking statements” that are subject to a number of risks and uncertainties that could affect PLDT’s business and results of operations. Although PLDT believes that expectations reflected in any forward-looking statements are reasonable, it can give no guarantee of future performance, action or events. “With the cellular industry moving past its rapid-growth phase, the need to shift into broadband and data services has become increasingly apparent. Management understands the complexities and challenges of the changing market environment and we will manage new technologies in the context of our subscribers’ needs”, added Nazareno. “Over the medium term, our goals are to continue achieving growth in our core businesses while establishing new revenue streams from recent investments, principally SPi. Our strong cash flows provide us with this “triple play” ability – new investments, sustained capital expenditures and increasing dividend yields. In this way, we address shareholder needs both for the present and for the longer term,” concluded Chairman Manuel V. Pangilinan. This press release may contain some statements which constitute “forward-looking statements” that are subject to a number of risks and uncertainties that could affect PLDT’s business and results of operations. Although PLDT believes that expectations reflected in any forward-looking statements are reasonable, it can give no guarantee of future performance, action or events. “Our core earnings for the first quarter this year have been more encouraging than anticipated. We envisage revenues to continue growing whilst we manage down our cash costs, including interest expense. Cash flows will be healthy; debts will continue to reduce across the board – including prepayment of most of Piltel’s debts. In that light, our dividend payment policy is currently being considered with the view of raising our payout ratio to shareholders to 60%. This reflects our improved assessment of prospects for 2006 as a whole,” concluded Chairman Manuel V. Pangilinan.

VII. Curriculum Vitae

Garcia, Der Jefferson D. Blk 77 Lot 6 Phase 2 Golden City Subdivision Brgy. Dila City of Santa Rosa, Laguna Contact Number: 09357537919 Email address: derjeffersongarcia@gmail.com

CAREER OBJECTIVE : I’m taking up a Degree of Bachelor of Science in Entrepreneurial Management. I am also motivated to acquire new knowledge, skills, and experience. If given an opportunity to prove my worth, I believe I will contribute to the present and ongoing growth and profitability of the organization. I am seeking a Customer Service position where I can expand on my experience in this field and utilize said experience to increase both customer satisfaction and the company’s overall reputation.

EDUCATIONAL BACKGROUND :

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - SANTA ROSA CAMPUS City of Santa Rosa, Laguna, 2010 - present Bachelor of Science in Entrepreneurial Management - Undergraduate

INTERNATIONAL MONTESSORI SCHOOL City of Santa Rosa, Laguna, 2005 – 2009 High School Diploma - Graduate

INTERNATIONAL MONTESSORI SCHOOL City of Santa Rosa, Laguna 1999 – 2005 Elementary Diploma – Graduate

SEMINARS AND TRAINING ATTENDED:

• Students’ Leadership Training February 7, 2013
• Research Colloquium November 26, 2012
• Philippine Marketing Association Campus Tour 2012 November 26, 2012
• Personality Development: Forging Managers of Tomorrow March 1, 2012
• Values: Discipline in Good Study Habits December 1, 2010
• The Value of Savings and Empowerment October 9, 2010

WORK EXPERIENCE:

April 2010, April 2012, May 2013 Special Program for Employment of Students (SPES) – City of Santa Rosa, Laguna Position: Barangay Staff Duties and Responsibilities:
• Assists people with concern in Barangay Office
• Creates Barangay Clearance, Certificate of Residency & Barangay Identification Card
• Encode Barangay’s Minor Cases

SPECIAL SKILLS : Computer Literate (Microsoft Office) Basic Office Application Good Communication Skill

PERSONAL INFORMATION :

Civil Status : Single Date of Birth : May 14, 1993 Place of Birth : Laguna Height : 5’8” Weight : 56 kgs. Religion : Roman Catholic Citizenship : Filipino Father’s Name : Alexander R. Garcia Occupation : None Mother’s Name : Mayrita D. Garcia Occupation : Government Employee

CHARACTER REFERENCE(S):

Professor Leine Alcaraz Renato Serrano Jr. Polytechnic University of the Philippines Barangay Administrative Staff City of Santa Rosa, Laguna City of Santa Rosa, Laguna

I hereby certify that the above information is true and correct up to best of my knowledge and belief.

Garcia, Der Jefferson D. Applicant
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II.

THREATS

1. Intense competition causing margin pressure

2. Fixed line market drop

3. Currency fluctuations impacting foreign revenues

4. New competitors

5. Volatile cost

1.

OPPORTUNITIES

1. Online Market

2. Network expansion helping to serve wider number of customers

3. Dropping prices of PC and laptops

4. Venture for new technologies

5. Partnership with other establishments

6. Job Creation

7. Sari-sari store and Small business served

8. Recognized by media and research firms

9. Establishing a new branches/store

STRENGTHS

1. Customers Loyalty

2. Leading market position in its operating market in the Philippines

3. Brand name

4. Advance integrated network helping to provide better services

5. Over 18,000 people form the backbone of the workforce

WEAKNESSES

1. Foreign Investment

2. High price competition with slowing domestic cellular growth

3. Outdated technology

4. Customer service

5. Lack of presence in a rural areas

THREAT OF SUBSTITUTE AND COMPLIMENT • COMPUTER RENTALS

• PAY PHONES

• MOBILE PHONES

THREAT OF CUSTOMERS • BUSINESSMAN • CHANGING NETWORK SERVICES • GOVERNMENT SECTORS • SMALL ENTREPRENEURS

THREAT OF RIVAL FIRMS • GLOBE TELECOM

• BAYAN TELECOMMUNICATIONS

THREAT OF SUPPLIERS • FOREIGN INVESTORS • INTERNATIONAL & LOCAL CONTRACTORS • STAKEHOLDERS

THREAT OF NEW ENTRANTS • COMCLARK NETWORK & TECHNOLOGY CORP.

• MOZCOM COMMUNICATIONS

• WI-TRIBE

• SOLID BROADBAND CORP.

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES