Student seeks to create Strategic Management paper for Alaska Milk Company Philippines

Dear Wilfred Steven Uytengsu, Jr. , My name is Joselito T. Santos Jr. and I'm a senior at San Beda College, majoring in legal management. As a graduating student of the said college an important school paper requirement for one of my subject which is Strategic Management should be accomplished to graduate. I'm writing to express my interest in making a Strategic Management paper for your prestagious company which is the Alaska Milk Company Philippines. Documents such company documents, financial documents and marketing documents will be needed for the progress of my paper.

I will assure that all of your documents will be taken care of and only be used as reference for the progess of my paper. Im hoping you will help me and in return I will provide your company a great Strategic Management Plan for the development of your company. Thank you. Sincerely, Joselito T. Santos Jr. ALASKA MILK CORPORATION OUR VISION... Is to be a leading consumer foods company with a diversified portfolio of consumer food brands and products that are market leaders in their respective categories. OUR MISSION... PRODUCT DEVELOPMENT

We will continue to build on the strengths and competitive attributes of the ALASKA brand and develop its full marketing potential. We will develop new products and identify market opportunities, mindful of our task to be responsive to the ever changing and growing needs of our consumers. CUSTOMER SERVICE Customer relationship is an integral part of building the Alaska business. We aim to provide our partners in trade the best and most efficient service, making use of leading edge technology to ensure timely product availability and accessibility.

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We strive to know and understand our customers fully to bridge the gap between what they need and what we can give. QUALITY Ultimately, the consumer whom we serve and their level of satisfaction with our products become our final judge and jury. We are committed to deliver high quality milk and other consumer food products from production to consumption. We will respond to the call to deliver higher quality nutrition to every Filipino home. PEOPLE

We recognize that our people, the Alaska Team Members, are on of our most important assets and we are committed to promote their safety and welfare. Their wealth of experience, ideas, dedication and strong work ethic lay the foundation for the Company's continued success. It is our goal as much as it is theirs, to pursue and reach their full potentials through continuing education, training, and skills-enhancement programs. We challenge each individualby providing the opportunity to contribute to the Company's endeavors. PROFITABLE GROWTH

Growth that creates value for our shareholders is paramount. We will deploy our resources on investment opportunities that are within our core competence and yield excellent returns relative to its risks and which are consistent with our growth objectives. SOCIAL RESPONSIBILITY We recognize our role in nation building by promoting the protection of the environment and taking part in various community-building projects that help enhance and uplift the quality of life of the underprivileged and the marginalizedsectors of our society. Original Mission Product and Services Yes

We will develop new products and identify market opportunities, mindful of our task to be responsive to the ever changing and growing needs of our consumers. Quality Yes We are committed to deliver high quality milk and other consumer food products from production to consumption. We will respond to the call to deliver higher quality nutrition to every Filipino home. Market No Concern for survival and profitability Yes We will deploy our resources on investment opportunities that are within our core competence and yield excellent returns relative to its risks and which are consistent with our growth objectives.

Technology Yes We aim to provide our partners in trade the best and most efficient service, making use of leading edge technology to ensure timely product availability and accessibility. Philosophy No Self Concept No Concern for Public Image Yes We recognize our role in nation building by promoting the protection of the environment and taking part in various community-building projects that help enhance and uplift the quality of life of the underprivileged and the marginalizedsectors of our society. Concern for Employee Yes

We recognize that our people, the Alaska Team Members, are on of our most important assets and we are committed to promote their safety and welfare. Revised Vision Is to be a leading and the number one dairy consumer foods company in the Philippines both Luzon,Visayas and Mindanao regions with a distinct and well known various consumer food brands and products that are market leaders and highest profit earners in their respective categories, Revised Mission Product and Services Yes We will develop new products and identify market opportunities, mindful of our task to be responsive to the ever changing and growing needs of our consumers.

Quality Yes We are committed to deliver high quality milk and other consumer food products from production to consumption. We will respond to the call to deliver higher quality nutrition to every Filipino home. Market Yes We are committed in building a brige connecting all Filipinoes who are not just living in Luzon but also Filipinoes who are living in Visayas and Mindanao and targeting all economic classes in the Philippines such as the upper,middle and lower classes by providing new a product with quality and affortability. Concern for survival and profitability Yes

We will deploy our resources on investment opportunities that are within our core competence and yield excellent returns relative to its risks and which are consistent with our growth objectives. Technology Yes We aim to provide our partners in trade the best and most efficient service, making use of leading edge technology to ensure timely product availability and accessibility. Philosophy Yes We provide consumers with our products a choice to make their bodies to be more healthier and fit. Have a healty lifestyle and to live longer so that they can enjoy their fruitful years in their existence.

Self Concept Yes We recognize that the company for so many years our company touches the hearts of all Filipinoes and with that we are one of the top supplier of consumer products in the Philippines. So we believe we provide provide products that has quality and affortability Concern for Public Image Yes We recognize our role in nation building by promoting the protection of the environment and taking part in various community-building projects that help enhance and uplift the quality of life of the underprivileged and the marginalizedsectors of our society.

Concern for Employee Yes We recognize that our people, the Alaska Team Members, are on of our most important assets and we are committed to promote their safety and welfare. New Mission and Vission Vision Is to be a leading and the number one dairy consumer foods company in the Philippines both Luzon,Visayas and Mindanao regions with a distinct and well known various consumer food brands and products that are market leaders and highest profit earners in their respective categories, Mission Product and Services Yes

We will continue to build on the strengths and competitive attributes of the ALASKA brand and develop its full marketing potential. We will develop new products and identify market opportunities, mindful of our task to be responsive to the ever changing and growing needs of our consumers. Quality Yes Ultimately, the consumer whom we serve and their level of satisfaction with our products become our final judge and jury. We are committed to deliver high quality milk and other consumer food products from production to consumption. We will respond to the call to deliver higher quality nutrition to every Filipino home.

Market Yes We are committed in building a brige connecting all Filipinoes who are not just living in Luzon but also Filipinoes who are living in Visayas and Mindanao and targeting all economic classes in the Philippines such as the upper,middle and lower classes by providing new a product with quality and affortability. Concern for survival and profitability Yes Growth that creates value for our shareholders is paramount. We will deploy our resources on investment opportunities that are within our core competence and yield excellent returns relative to its risks and which are consistent with our growth objectives.

Technology Yes Customer relationship is an integral part of building the Alaska business. We aim to provide our partners in trade the best and most efficient service, making use of leading edge technology to ensure timely product availability and accessibility. We strive to know and understand our customers fully to bridge the gap between what they need and what we can give. Philosophy Yes We provide consumers with our products a choice to make their bodies to be more healthier and fit. Have a healty lifestyle and to live longer so that they can enjoy their fruitful years in their existence.

Self Concept Yes We recognize that the company for so many years our company touches the hearts of all Filipinoes and with that we are one of the top supplier of consumer products in the Philippines. So we believe we provide provide products that has quality and affortability Concern for Public Image Yes We recognize our role in nation building by promoting the protection of the environment and taking part in various community-building projects that help enhance and uplift the quality of life of the underprivileged and the marginalizedsectors of our society.

Concern for Employee Yes We recognize that our people, the Alaska Team Members, are on of our most important assets and we are committed to promote their safety and welfare. Their wealth of experience, ideas, dedication and strong work ethic lay the foundation for the Company's continued success. It is our goal as much as it is theirs, to pursue and reach their full potentials through continuing education, training, and skills-enhancement programs. We challenge each individualby providing the opportunity to contribute to the Company's endeavors. Chapter 1 Introduction

Alaska Milk products were first manufactured in the Philippines in 1972 through Holland Milk Products, Inc. (HOMPI), a partnership between AMC's former parent company, General Milling Corporation (GMC), an industrial foods company with interests in flour, feed and soy bean milling, and a Dutch dairy company, Holland Canned Milk International B. V. HOMPI initially manufactured liquid canned filled milk products, (evaporated and sweetened condensed milk) and eventually expanded to manufacture powdered filled milk and UHT milk products division up until AMC's spin-off and incorporation as a separate and independent corporate entity in 1994.

It was also a time when the company embarked on a major expansion program which prompted the company to tap the capital markets through an initial public offering (IPO) to raise funds for the capacity expansion of its powdered milk facilities. Alaska Milk shares were listed in the Philippine Stock Exchange in 1995. Post-IPO, GMC held 66% of AMC while 34% was left in free float to the public.

In mid-1997, however, GMC transfered its 66% ownership in AMC to individual shareholders of GMC through a property dividend, thus fully divesting its interest in AMC and enabling management to consolidate and focus its efforts in pursuing AMC's interests in the consumer foods industry. Currently, management and strategic partner Campina Melkunie hold 56% while 44% is in public free float. For over thirty years, AMC has emerged as one of only two major players in the Philippine milk industry, consistently maintaining brand leadership in the liquid canned milk category and holding a strong and growing position in powdered milk.

It has also expanded into higher value-added milk products, particularly in UHT/Ready-to-Drink milk category. Apart from growing its core businesses, AMC endeavors to diversity and explore opportunities in related consumer products with global food companies that will complement AMC's existing revenue base. In 1972, Alaska began caring for the Filipino family by providing quality milk products for good nutrition and health.

Since then, it has shown its caring in other ways: through programs that promote sports development, campaigns that foster good values among children and product innovations aimed at enhancing the Filipino's health and welfare. It is this commitment to the Filipino that has made Alaska a leading brand. In 1996, the mission of caring for the Filipino and bringing nutrition to each home grows stronger than ever, as Alaska looks forward to the next 25 years. Board of Directors Our board of directors have successful careers in businese, academe and public service.

With their wealth of experience, they add significant perspective and direction into how management shapes and executes business strategies. ANTONIO H. OZAETA Chairman of the Board JUAN B. SANTOS Vice Chairmanof the Board WILFRED STEVEN UYTENGSU, JR. Director ROBERTO F. DE OCAMPO Independent Director GRAHAME S. TONKIN Independent Director JOSE R. FACUNDO Independent Director MICHAEL R. B. UYTENGSU Director ATTY. RAMON ESGUERRA Director DR. BERNARDO M. VILLEGAS Independent Director Our senior management team shares the same mission, vision and values — driven by a sense of accountability to be successful as individuals and as a company.

WILFRED STEVEN UYTENGSU, JR. President and Chief Executive Officer JOSELITO J. SARMIENTO, JR. Senior Vice President & Chief Financial Officer ARNOLD L. ABAD Vice-President, Accounting & Controller MA. BELEN M. FERNANDO Vice-President, Marketing SANTIAGO A. POLIDO Vice President, Corporate Affairs FRANCISCO T. IDIAN Vice President, Sales AARON D. FULTON Director, Operations THOMAS NILSSON Director, UHT Operations REYCELLE M. RODRIGUEZ Director Materials Management ALFREDO B. JAVIER Asst. Vice President, Internal Audit ANSELMA G. CABANTAN Asst. Vice President, Information Systems II Research and methologies

Research Design Data that will be used for the company analysis will be gathered from the websites of Alaska Milk Company, documents and other papers will be get from a connection working inside the company and other government agencies such Securities of Exchange Commisions and National Statistics Office. These government offices have the relevant informations for the paper to progess To assess Alaska's performance relative to its competitors, audited financial reports for 2010 and 2011 will be obtained from Alaska Milk Company as well as its key competitors from the Securities and Exchange Commission.

Aside from getting and providing financial data, the published annual reports in general circulations such as newspaper will also serves as a good source of internal and competitor information. Statements from the corporate website of Alaska and its competitors will be used to determine recent developments, marketing activities and other internal and competitor information. To be able to benchmark the pricing of the company relative to its competitors, various. Scope and Limitation

This paper will be limited to Alask Milk Coporation dairy food ventures in the Philippines. This paper intends to create a product which has a high demand in the food market and making a dairy product that will be competing to an exisiting market. The paper will focus on how can the company attract consumers to buy, earn profit and compete in the Philippine food consumer market in providing a new product such as a milk tea powder and making an exsisting dairy product such as white cheese product.

The paper will only concentrate to the introduced new business product such as the caramel milk tea powder and white cheese productions of Alaska Milk Company. It's other products will not be tackled in this paper. Due to the timing of the submission of this paper, only the 2011 Annual report will be used. The strategies recommended in this paper will affect the financials of the company in 2012 up to 2016. Major Assumptions * Alaska Milk Company will be the first food consumer company to produce caramel milk tea powder drink all over the Philippines. Alaska Milk Company will be the first food consumer company to sell milk tea products in a low a price compare to its competitors. * Alaska Milk Company will be the first food consumer company to commercial and sell low priced nutrious white cheese products. * Alaska Milk Company White cheese product will be the number one cheese product in the Philipppines taking the place of other cheese product competitors. * The percentage income of Alaska Milk Company will increase due to high demand of its new product III. External Analysis

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