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Colegio de San Juan de Letran Manila 1
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I. INTRODUCTION
A. Company Profile
Global Excellence Human Resources Academy, Inc. (Global) is engaged in the
business of contracting, enlisting, recruiting professionals and workers - both skilled and
unskilled - for local work in hotels, resorts, restaurants and other firms and act as an agent
of individuals or companies in the supply of manpower, human resources development,
training and consultancy services as required by the client. It registered with the Securities
and Exchange Commission on April 21, 2006 as well as the Department of Labor and
Employment and the Local Governments of Quezon City.
Global can be considered as one of the country’s prime manpower development,
training, consultancy and outsourcing services firms. It is a totally Filipino owned
corporation operated by people honed in professionalism, exposure and experience in
dealing with people of different cultures, characters and personalities.
Recently Global Excellence established another company with a separate identity
that can focus on training alone. Excellent Choice Training Center was established to focus
on hospitality management trainings and computer tutorials. TESDA accreditation for
Excellent Choice Training Center is currently in process to further boost its
competitiveness.
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Global is an advocate of quality training, quality employees, quality management
and is intent at producing socially responsible people within and outside its organization.
Global’s Training Modules are carefully designed by its topnotch Resource Persons and
Board of Advisers to fit present industry needs. These modules are meant to develop and
produce a new breed of individuals known for their reliability, integrity, suitability and
eligibility.
Global claims to have a solution to the perennial problem of both employers and
labor, during economic crisis that requires downsizing of manpower. Global applies the
principle that an “ounce of prevention is better than a pound of cure” by supplying its
clients with the right number of quality standard personnel who fit in their respective fields
of endeavors as demand arises.
1. Pre-employment Screening.
Global ensures that all pre-employment requirements are complied with prior to the
deployment of the employees to their respective assigned workplace. Applicants are
thoroughly screened before being accepted or hired on the following areas:
Maturity;
Attitude;
Appearance;
Communicative Skills;
Employment History;
Drug Use History;
Agreement to drug testing policy;

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Dependability;
Background Investigation.
The Background Investigation includes the complete medical history, complete
physical examination, and standard laboratory examinations such as CBC, routine
urinalysis, fecalysis, chest x-ray (10 x 12 inch film), optical clearance and classification as
to fitness to work of the applicants. Global also administers psychological examination and
evaluation to rank & file, supervisory and managerial positions if clients require so. Global
assures that all supplied personnel are technically, physically and emotionally fit.
2. Profile of Key Officers
a. Consultant/Founder
Mr. Rafael S. Chico is a professional hotelier. He has been in the hotel and
tourism industry for twenty-seven (27) years. Honing his craft, he rose from the ranks and
held key positions from one hotel to another, not only in Metro Manila, but across the
country as well.
He has traveled in many Asian and European countries thereby making him a well-
rounded executive in all facets of hotel operations. He came to be noted as an “Award
Winning Manager” when the resort he was managing won in 1991 the “Kalakbay
Award” by the Department of Tourism, and a Hotel-Resort also under his management
won in 1996 the “Outstanding Hotel Resort” awarded by the Consumers Union of the
Philippines 1996.
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He has been Consultant to different companies and personages to the extent of
mastering the art of business development and its profitability. He is a champion of Service
Excellence in the Hospitality Industry and is the author of The Power of Service Excellence
Training and Workshop and The Power of Management in Control Seminar.
b. The President
Ms. Priscila Y. Carabeo, the President of Global Excellence Human Resource
Academy, Inc. is one of the original graduates of Hotel and Restaurant Operations short
courses in 1980 that was initiated by Sulo Management Group and pioneered by Mrs.
Trinidad Enriquez. Ms. Carabeo is a professional entrepreneur with vast exposures and
experience in importation, exportation, cargo handling and forwarding. She is a graduate of
Philippine Marine Institute in Custom Administration. Presently she is the Operations
Manager of Cousin Food Corporation. Ms. Carabeo is also an active member of the Fruit
Importation and Brokers Association, Inc. and is a registered member-representative to
PALSCON. She is known to be hardworking, dynamic and a proactive person who believes
that success is the product of hard work and Godliness in all her undertakings
c. The Vice President for HR/Marketing
Mr. Aristotle C. Chico, is currently the Vice-President of Human Resources
Development in Global Excellence and Training Director in Excellent Choice Training
Center (Hotel Department). He graduated from Colegio de San Juan de Letran with a
degree in BSBA Major in Marketing. His expertise combines the power of a natural-born
speaker with great interpersonal skills. He has an excellent communication skill and can
definitely speak fluent English. During his school days, he was noted to be a top orator and
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extemporaneous speaker, winning in various National and Regional Competition all over
the Philippines. He is currently finishing his Masters in Business Administration at Letran
too and has been teaching in the Lyceum of the Philippines and in his Alma Mater as well.
d. The Vice President of Management Information System
Mr. Adonis Chico is the Vice – President of Management Information System.
A product of AMA Computer University (Bachelor of Science in Computer Science) , Mr.
Chico is equipped with a vast knowledge in Database Programming and the author/creator
of the Global Excellence Academy, Inc. and Interlink Manpower Development Services
Human Resources Database Software.
A respected database developer, Mr. Chico also teaches several subjects regarding
computer application software and hardware. Presently taking up his Masters in Computer
Science in AMA, Mr. Chico continuously fabricates his genius craft for the betterment of the
company.
e. The Vice President for Operations
Mr. Abraham C. Chico is a product of AMA Computer College (Bachelor of
Science in Computer Science) and is also a web designer and developer using Macromedia
Flash MX , Dreamweaver, Fireworks and Adobe Photoshop. He uses his talents to create
marketing instruments and strategies for Global clients.

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B. Background of the Paper
1. The Industry
Global Excellence Human Resources Academy, Inc. is in the industry of Job
Contracting and Human Resource Outsourcing specifically catering to the needs of the
Hospitality Sector.
The industry of Job Contracting started in the Philippines when the Department of
Labor and Employment promulgated Article 106 stating;
Art. 106. Contractor or subcontractor. Whenever an employer enters into

a contract with another person for the performance of the former’s work, the
employees of the contractor and of the latter’s subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails to pay the wages of his
employees in accordance with this Code, the employer shall be jointly and
severally liable with his contractor or subcontractor to such employees to
the extent of the work performed under the contract, in the same manner and
extent that he is liable to employees directly employed by him.
The Secretary of Labor and Employment may, by appropriate regulations,

restrict or prohibit the contracting-out of labor to protect the rights of
workers established under this Code. In so prohibiting or restricting, he may
make appropriate distinctions between labor-only contracting and job
contracting as well as differentiations within these types of contracting and
determine who among the parties involved shall be considered the employer
for purposes of this Code, to prevent any violation or circumvention of any
provision of this Code.
There is "labor-only" contracting where the person supplying workers to an

employer does not have substantial capital or investment in the form of
tools, equipment, machineries, work premises, among others, and the
workers recruited and placed by such person are performing activities which
are directly related to the principal business of such employer. In such cases,
the person or intermediary shall be considered merely as an agent of the
employer who shall be responsible to the workers in the same manner and
extent as if the latter were directly employed by him. (Labor Code of the
Philippines).
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A company that wants to venture in this type of business needs to have a permit
from DOLE, DO 18-02, which provides for the protection of employees and differentiates
labor only contracting from Job Contracting which is legal.
Another permit that can be issued is that for Private Recruitment and Placement
Agency (PRPA) that legally allows firms to recruit and place people for a job with a fee.
According to the Department of Labor, a licensed company can charge a Placement fee to
the workers endorsed, and a Service Fee that can be charged to the client. This is how
Recruitment/Outsourcing Agencies earn profit.
a. Job Contracting vs. Private Recruitment Agencies
Job Contractors earn differently from Private Recruitment Agencies. As stated
earlier these companies are contracted by the client for a specific job only and should not
be directly related to the business of the client such as, for example, maintenance of air
conditioning, construction of buildings etc..
Fly-by-night agencies became a plague in the industry and as a result, licensed
agencies find it hard to get applicants because of the tainted reputation of these despicable
agencies. Such a dreadful problem continue to exist and thus affects the image of the
Private Recruitment Agencies and Licensed Contractors.
Another concern that needs to be looked into are the registration of these fly-by-
night agencies. Job Contractor license is actually cheaper than PRPA license simply
because a PRPA license will only be given if the concerned entity will be able to pay the
bond required by the Department of Labor whereas a DO 18-02 license can be given for
Php100. Thus, many companies register for DO 18-02 but operate like a PRPA which is
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prohibited. They even collect “illegal fees” to applicants which makes matters worse.
b. Manpower Cooperative vs. PRPAs/Job Contractors
The practices of Manpower Cooperatives also pose a major problem in terms of
competition in the Industry. Unlike Corporations, these Cooperatives have a huge
advantage over their competitors simply because they are tax exempt (according to
Revenue Regulations No. 20-2001 Sec 3). The Philippine Association of Local Service
Contractors (PALSCON), of which Global Excellence is a member, opposes Manpower
Cooperatives because they are defeating their purpose of being cooperatives as most of
them earn profits in their operation and these amounts are not intended for the benefit of
their members. An article by Melgar (2006) on a wesite entitled “Palscon advises: Avoid
Manpower Cooperatives” stated that getting a Manpower Agency as a Service Provider can
be costly to the client because these cooperatives circumvent the law.
Melgar said “such circumvention of the law can prove very costly to a company
hiring workers from a manpower cooperative which is into labor-only business that lacks
the authority and capacity to supply workers to a client firm.”
(http://www.thenewstoday.info/2006/11/10/palscon.advises.avoid.manpower.
cooperatives.html)
“To avoid inconvenience and costly litigation,” Melgar said, “companies should hire
workers only from legitimate service providers complying with the Labor Code and other
measures protecting workers, and not from manpower cooperatives.”
He cited the "landmark decision" of the Supreme Court in G.R. No. 149011, San
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Miguel Corp. vs. Aballa et al., which ruled that the 97 workers supplied by the Sunflower
Multi-Purpose Cooperative to the SMC Bacolod Shrimp Processing Plant were SMC
employees and as such are entitled to corresponding damages, amounting to at least
P100,000 each.
On February 7, 2001, the Court of Appeals reversed the labor arbiter and NLRC
decisions, and ordered the SMC to grant workers separation pay and other benefits.
The decision cited Article 106 of the Labor Code: "There is labor-only contracting where
the person supplying workers to an employer does not have substantial capital or
investment... and the workers recruited and placed by such person are performing activities
which are directly related to the principal business of the employer."

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II. RESEARCH DESIGN AND METHODOLOGY
Since the author is one of the incorporators of Global Excellence Human Resources
Academy Inc., he was able to easily gather primary data from the company itself. The
Company Profile and other confidential information regarding operation flows and
organizational chart were actually created by the author since he is the Vice President for
Human Resources.
Secondary Data were sourced from books, periodicals, theses, magazines, websites
and other government agencies related to the operation of Global Excellence.
The author used Fred David’s Tool Designs when he assessed the Internal and
External Environment of the company.
Several tools were used such as TOWS analysis, IFE, EFE and IE Matrix, GRAND
Strategy Matrix, BCG Matrix, and SPACE Matrix.
A. Scope and Limitation of the Study
Environment Analyses and Industry Competitors were derived from the Internet
and some useful data were gathered within Metro Manila only. Since Global Excellence is
operating in the NCR, the focus of the study was in this region only but also tried to
explore other opportunities.

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Assessing Direct Competitors were based on the same profile of clients such as Hotels,
Restaurants and other Service Establishments related to the Hospitality Industry.
The weights that were given in the matrices such as IFE, EFE, and CPM were
determined by the author’s personal perception and were based on the analyses of some
facts researched by the author (financial statements).
Confidentiality may become an issue, so an intelligent estimation from time to time
was used for comparison of data with competitors.
Financial Projections were made spanning 3 years and were based on the Industry
of Manpower and Outsourcing.
B. Methodology
This research was based on FRED DAVID’s method of Strategic management
planning process. It dealt with analyzing Internal and External Environment using different
matrices for INPUT STAGE, MATCHING STAGE AND EVALUATION STAGE then
recommending strategies to improve industry performance.
The Department of Labor and Employment was one of the main sources of
information simply because of the sensitivity and scope of this business in the manpower
industry.
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The Department of Tourism was also a source of information to analyze tourism
rate in Metro Manila to see opportunities in different sectors in the Hospitality Industry.
The higher the tourism rate, the more jobs become available for people and the industry can
get more clients.
Some interviews and internet research were conducted to gather data and have
support for further information.

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III. VISION MISSION STATEMENT
(Current Vision and Mission Statement)
A. VISION
GLOBAL envisions itself to be the premier source for the delivery of quality
services with quality manpower, quality training and professional certification that serves
the needs of the Hospitality Industry and other industries locally and worldwide.
B. MISSION
GLOBAL is to nurture, cultivate and advocate for creating, developing and
producing socially responsible employees, skilled workers, managers and leaders. Global
adheres to the principle of “do what we teach”.

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IV. EXTERNAL ANALYSIS
A. Macro-environmental Analysis
Analyzing the environment of an organization is very important in strategic
planning because from here the analyst can pinpoint opportunities that the company can
take advantage of and anticipate threats to minimize its effect in the company.
Global Excellence Human Resources Academy Inc. is in the Service Industry. Its
market is very saturated because a lot of Manpower and Recruitment Agencies are being
established, especially in Metro Manila. Factors in Economic and Political Environment
will greatly affect Global Excellence due to the nature of its business, which is explained
later on.
1. Social Environment
a. Population a factor
Since Global Excellence relies on manpower to serve its clients, one factor that the
company needs to look at is the number of population especially in Metro Manila. An
increase in the population may give Global Excellence the opportunity to recruit people for
employment. The bigger is the manpower pool, the more are its choices.
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According to the National Census and Statistics Office (NSO) website, as of
2010, there were 11,552,100 people comprising the total population of Metro Manila alone,
for an increase of 148,800 from 2009. According to The Philippine Daily Inquirer, the
United Nations identified Metro Manila as the 15th largest city in the world and ranked it as
the world’s 11th most populous city.
Population becomes a more meaningful data if the literacy rate is considered or
the number of graduates at the tertiary level. Pooling of applicants is more useful if this
includes qualified candidates for the vacant position. However, opportunities may arise if
the client requires blue collar jobs because it is much easier to get candidates for such
positions. Most of the companies right now are requiring their candidates to be College
graduates, especially for skilled positions, but it may be easier to search for maintenance
staff and janitors because there are a lot of Filipinos who are undergraduate.
b. Hospitality Courses becoming a trend
Another factor to look into is the trend of courses offered in different
Universities nowadays. If there are more students enrolling in or graduating from HRM and
Tourism Courses then there is a greater opportunity for the company to recruit these
graduates to endorse to its clients. Experience with the Lyceum of the Philippines showed
that there are an estimated total of 7,000 enrollees for HRM and Tourism Courses alone
which is 60% of the total enrollees for this year. Colegio de San Juan de Letran also offered
HRM and Tourism courses not more than a year ago. De La Salle College of St. Benilde
has been attracting students because of its Laboratory Hotel in Taft Avenue which made it
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competitive in the Hotel and Restaurant Field. This goes to show that HRM is becoming a
popular choice among freshmen which Global Excellence can take advantage in the future
because it specializes in this field. A detailed analysis of unemployment and
underemployment, including fresh graduates, will be discussed later inn the Economic
Environment Sector.
c. Negative Impression on Manpower Agencies
Perceptions of applicants and freshmen graduates can also be a factor. The term
“Agency” or “Manpower Agency” poses a negative perception among graduates and
applicants. Based on experience on the operation of this business, many applicants tend to
reject or back-out from the application upon learning that we are a manpower agency.
There is a negative impression among agencies because of some bad experiences of these
people from their previous agency or simply had bad publicity because of “fly-by-night”
which collects illegal fees from the applicants even before their deployment. Security of
tenure also plays a factor because some are looking for a probationary employment instead
of a contractual status. These perceptions may pose a threat to the organization if not
handled well. Problems may arise if these applicants are not encouraged and oriented about
the organization for they may label the company among with the illegal recruiters.
2. Economic Environment
Unemployment and underemployment plays a factor
Employment rate can affect Global Excellence operations and may prove to be an
opportunity if it create strategies to take advantage of such a development. According to the

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National Statistics Office (NSO), there was a slim decline in the unemployment rate and an
increase in the underemployment rate from the previous year. (Table 1)
Table 1: EMPLOYMENT RATE JANUARY 2010
EMPLOYMENT RATE REPORTED AT 92.7 PERCENT

IN JANUARY 2010
Results from the January 2010 Labor Force Survey (LFS)
Philippines January 2010 1/ January 2009

Population 15 years and over (in '000) 60,208 58,657
Labor Force Participation Rate (%) 64.5 63.3
Employment Rate (%) 92.7 92.3
Unemployment Rate (%) 7.3 7.7
Underemployment Rate (%) 19.7 18.2
1/
Notes: Estimates for January 2010 are preliminary and may change.
2/
Population 15 years and over is from the 2000 Census-based population
projections.
The number of employed persons in January 2010 was estimated at 36.0 million,
increasing by 5.0 percent over last year’s estimate of 34.3 million persons. This placed the
latest estimated employment rate at 92.7 percent, which is not significantly different from
the estimate reported the previous year at 92.3 percent.
Across regions, Cagayan Valley and the Autonomous Region of Muslim Mindanao
(ARMM) posted the highest employment rate at 97.0 and 96.0 percent, respectively.
Meanwhile, lowest employment rate was posted by the National Capital Region (NCR)
at 89.2 percent.
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Out of the estimated 60.2 million population 15 years old and over in January
2010, around 38.8 million persons were reported to be in the labor force. This figure placed
the January 2010 labor force participation rate (LFPR) at 64.5 percent for an increase of 1.2
percentage points from last year’s estimate of 63.3 percent. Among the regions, Northern
Mindanao registered the highest LFPR at 70.2 percent while the lowest LFPR was posted
in ARMM at 59.2 percent.
Of the estimated 36.0 million employed persons in January 2010, more than one-
half (52.4%) worked in the services sector. The bulk of increase in employment (1.3
million) can be found with those employed in wholesale and retail trade, repair of motor
vehicles, motorcycles and personal and household goods sub-sector comprising the largest
sub-sector (19.6% of the total employed). Workers in the agriculture sector accounted for
32.8 percent of the total employed, with those engaged in the agriculture, hunting and
forestry sub-sector making up the largest sub-sector (28.7% of the total employed). Only
14.8 percent of the total employed were in the industry sector, with the manufacturing sub-
sector making up the largest percentage (8.4% of the total employed).
The employment numbers for the service sector may indicate that there are a lot of
people who could be looking forward to working in the service industry. Since Global
Excellence specializes in the Hospitality Industry which falls under the service industry it
would be an opportunity for the company to recruit more candidates who are interested to
work in the service sector especially in different prestigious hotels.
Employed persons are classified as either full-time or part-time workers. Full-time
workers are those who work for 40 hours or more per week while part-time workers work
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for less than 40 hours per week. In January 2010, six in every 10 employed persons were
full-time workers, with those working for 40 to 48 hours having the highest proportion
(40.6% of the total employed). Part-time workers comprised 34.2 percent of the total
employed.
Employed persons who express the desire to have additional hours of work in their
present job or to have additional job, or to have a new job with longer working hours are
considered underemployed. The number of underemployed persons in January 2010 was
estimated at 7.1 million or an underemployment rate of 19.7 percent. Around 4.0 million or
57 percent of the total underemployed persons were reported as visibly underemployed or
working less than 40 hours during the reference week. Those working for 40 hours or more
accounted for 41.3 percent. Most of the underemployed were working in the agriculture
sector (46.7%) and services sector (39.0%). The underemployed in the industry sector
accounted for 14.3 percent.
Global Excellence can help the 39% who are underemployed in the service sector,
to find a job that would be suitable for them. Global Excellence also provides an on-call
duty basis where it can help the underemployed and at the same time gain profit from it.
Those who are underemployed can find jobs in Global Excellence or give them flexible
contract other than being a seasonal worker.
3. Political Environment
The rampant existence of “fly-by-night” agencies brought about a lot of politicians
who wish to abolish contractual employment. These “fly by night” agencies continue to
tarnish the image of the industry, with its malpractices of collecting illegal and unfair fees
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to applicants. According to the Department of Labor and Employment, agencies should not
collect any fee from its applicants unless there is already an employment waiting for
him/her. An Employment Contract should already be signed by the applicant and a
specified date of the start of his employment should already be defined before the agency
collect a fee.
Illegal collection of fees includes those for medical examination being collected by
agencies with a contracted percentage to a third party. It is done by asking the applicants to
compulsory undergo medical examinations even without any proof of employment. These
agencies also collect processing fees even before interviews and other miscellaneous fees
that are non-traceable.
According to the Labor Code RULE V Section 29 PLACEMENT FEE, SERVICE
FEE, AND OTHER CHARGES, “A licensed PRPA may charge workers a placement fee
which shall not exceed twenty percent (20%) of worker’s first month basic salary; in no
case shall such fee be charged prior to the actual commencement or employment.” Global
Excellence charges the employees it place a one time placement fee of 600 pesos, way
below the 20% maximum requirement of DOLE. Global deducts placement fee on the first
salary of the employees, and sometimes on a staggered basis if there are uniforms and other
fees to pay.
Another Fee that Global Excellence collect is the ADMIN SERVICE FEE which
is not collected from the employees but from the client. According to Rule V Section 30
PLACEMENT, SERVICE FEE and OTHER CHARGES, a licensed PRPA may charge
employers a service fee which shall not exceed twenty percent of the annual basic salary of
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the worker. In no case shall the service fee be deducted from the worker’s salary. For
Global Excellence this is a case to case basis. It actually negotiates depending on the
number of people to be deployed. On other circumstances, sometimes, clients request that
the employees be under Global Excellence for five (5) months. For five (5) months Global
bills such clients monthly for an administrative service fee per employee which usually
ranges from 6-10% of the employees basic salary.
Politicians are currently drafting Bills to abolish contractualization. Global
Excellence believes that this development is extremely dangerous for its type of business.
Senate Bill 922 or the “REGULARIZATION ACT OF 2007, was introduced by Senator
Loren Legarda as AN ACT PROVIDING FOR THE REGULARIZATION OF
EMPLOYEES, PROHIBITING CONTRACTUAL OR LABOR-ONLY CONTRACTING
FOR REGULAR POSITIONS, PROVIDING PENALTIES FOR VIOLATION. If this Bill
passes into a law, the operation of the Global Excellence organization will be severely
affected because most of the company’s income comes from supplying contractual
employees to its clients. Most clients prefer contractual employment because of its
flexibility where they can terminate the employment anytime, if and when the services of
an employee are no longer needed. In the Hospitality Industry, a lot of hotels and restaurant
use Manpower Agencies to get casual staff for the purpose of cutting costs. For the
Hospitality Sector there are Peak and Lean seasons, so in order to reinforce their manpower
they hire seasonal employees to augment their services. But how can they cut costs if all
their employees are regular, especially during lean season? That’s where Manpower
Agencies come in.

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Minimum Wage Hike
THE P22 increase to minimum wage earners in the National Capital Region (NCR)
will take effect on July 1, 2011, the Department of Labor and Employment (Dole)
announced on June 25, 2011. The additional salary was approved by the Regional Tripartite
Wages and Productivity Board (RTWPB) on June 7, 2011, three weeks after the
deliberation and consultation with the representatives from the labor sector and other
stakeholders. With the hike, the minimum wage of workers in the private sector for non-
agricultural workers will now be pegged to P404 per day.
For the agricultural sector, private hospitals with bed capacity of 100 or less,
service establishments employing 15 or less, and manufacturing establishments employing
less than 10 will be receiving P367 from P345. The last wage adjustment was given in 2008
with an P18.49 increase. Some 2.18 million workers in the NCR will benefit in the said
recent wage hike. The Trade Union Congress of the Philippines (TUCP) originally asked
for a P75 across-the-board increase. The labor department also said that minimum wage
earners will continue to be exempted from paying taxes. Those who are covered by the new
wage hike are minimum wage workers in the private sector in NCR regardless of their
position, and irrespective of the method by which they are paid.
Exempted from the coverage of the new wage order are the following: distressed
establishments; those whose total assets are not more than P3 million; retail/Service
establishments regularly employing not more than 10 workers; and those adversely affected
by natural calamities. ---(news at Sunstar June 26, 2010)

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Wage Hike, can affect the administrative cost of Global Excellence but not the company’s
contracted rate with its clients. In fact, the higher the minimum wage the better, because
Global’s rate given to its clients are on a percentage basis on top of the minimum wage.
Here is a basic sample administrative fee computation;
Previous: P 382 minimum wage multiplied by 6% admin fee = P22.92 for the
admin fee per person
New Minimum wage: P404 minimum wage multiplied by 6% admin fee =
P24.24 for the admin fee per person.
Thus, there is a P1.32 increase in Global’s administrative fee per person. Profit increases
by the bulk of people deployed in different clients are considered.
4. Technological Environment
In the area of technology, services have greatly improved because of computers
and other softwares that make work easier. Nowadays there are a lot of softwares for
human resources and accounting operations. Such softwares can greatly increase service
efficiency which can result to higher productivity. One of the softwares found on the net is
the HRIS offered by a particular company. HRIS means Human Resources Integrated
Software, a software combined for tracking employee records with payroll system to make
it easier for you. Aside from HRIS, Peach Tree is also a software tool for accounting
automation which improves accuracy and makes accounting work easier. Company
Websites are becoming a trend nowadays which makes it easier to get information and
inquire about products and services. They also help speed up transactions and
communication between the customer and service provider. Another technology is the
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biometrics system of time keeping replacing the old fashioned Bundy Clock. For easier
recording a lot companies tend to shift to this process to avoid tampering of time cards and
for easier tracking of attendance and payroll computations.
B. Industry Analysis
1. Porter’s Framework
Low
Intense
Low High
High
FIG. 1: COMPETITIVE FORCES (Porter’s Model)
a. Rivalry among Manpower Agencies: (Intense)

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According to pinoyoverseas.net there are approximately 100 manpower agencies in
manila alone and about 500 more manpower agencies in Metro Manila. These only include
Manpower Agencies in the Local Employment Sector. Direct Competitors includes
Manpower Agencies directly catering to hotels and restaurants while indirect would be
outside of the Hospitality Management Sector. Given the number of Manpower Agencies
in Manila alone, competition would be tight considering hotels and restaurants choose their
manpower contractors. Most of the time Large Hotels and Restaurants choose 3 to 5
agencies depending on the size of their establishments but it will not be easy to penetrate
clients with existing agencies because they need to prove first that they are worthy of
replacing their existing agency. Some clients will consider replacing agencies if they find
the admin istrative fee or rate lower than usual.
b. Threat of New Entrants (Low)
A manpower agency business is easy to put up and a lot of agencies each year are
being established. If a particular agency applies for D.O. 18-02 license it would only cost
the agency P300. A lot of manpower agencies abuse the use of such license, using it to
recruit people and charge illegal fees. These are called fly by night agencies. But a few new
entrants in the market invest on getting PRPA (Private Recruitment and Placement Agency)
license because of the Bond Requirement from DOLE. DOLE requires a company to invest
an amount of P30,000 for the bond requirement. Only PRPA licensed companies are
allowed to recruit and charge placement fees. Although some try to circumvent the law,
many of them are caught by DOLE.

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c. Threats of Substitutes (High)
Manpower Agencies nowadays are not only formed as a corporation. A major
problem right now is the rampant formation of Manpower Cooperatives. Cooperatives have
advantages over corporations because of the exemption of taxes, the self-employed
classification in SSS for its employees and others. The Philippine Association of Local
Service Contractors filed a complaint against Manpower Cooperatives because of its
inability to supply manpower and failure to comply with the LABOR CODE standards way
back in 2006 (Newstoday.info). Threats are really high especially for Manpower
Corporations because the competing manpower cooperatives can further lower their
administrative rate (service fee). Such practice destroys the competitiveness of manpower
agencies. Since the Manpower Cooperatives are exempted from taxes, they can survive
even if they lower their rate to 3% administrative fee. Companies may also directly hire
employees as casuals which can also affect the business of Global Excellence.
d. Bargaining Power of Suppliers (Low)
Global Excellence relies on people to be able to supply manpower to its clients.
Since there is a high unemployment rate, a lot of people are looking for a job. Different
schools may also be a source of manpower, especially graduating students in Hospitality
Management Courses. Job Portals online is also a source of manpower such as Jobstreet
and JobsDB. However some applicants are “picky” when it comes to their employment
status. New Graduates tends to reject offers when they find out that Global Excellence is an
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agency. A “Negative Impression” on agencies is inevitable due to the existence of illegal
recruiters and fly by night agencies.
e. Bargaining Power of Buyers (High)
Clients of Global Excellence are mostly in the Hospitality Industry Sector. Based
on experience, clients do not usually change agencies unless they see anomalies and
inefficiencies on the part of the service provider. Newly established businesses are a good
target because if you can start with them, then you also grow with them. Partnership with a
new firm increases the chance of building a client’s relationship, thus strengthening an
agency’s position against its competitors. If an agency is a starter and still in the process of
getting a client, the bargaining power of buyer is very high. Even if an agency has existing
clients, it is still hard to get new clients, and negotiations can last from one month to six
months. Competition is stiff, but the practice of other hotels is to invite manpower agencies
for bidding. A lower rate doesn’t always guarantee a win. “PADRINO” and other factors
affect the decision of the client whom to choose. It would be an advantage on the part of
the agency if it already has previous clients related to the business operation of the client.
Nevertheless, years of existence in the industry also plays a major factor for an agency to
be considered. “A SUBSTANTIAL CAPITAL” and the ability to finance payroll would be
a HUGE advantage because salaries will be paid on time.

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2. Industry Comparison
TABLE 2: INDUSTRY COMPARISON
* All data are gathered from Securities and Exchange Commission.
*All are corporations and members of Philippine Association of Local Service Contractors
* Formula for AVG Deployment AVG Deployment = [Annual Revenue/1.18]/min wage
per month.
*P12,500 is used for min wage per month
*Formula for Market Share is MARKET SHARE = current sales revenue/total sales of the
entire market. (based on the book of John Davis Measuring Maketing 2007 edition)
Random sampling was used in comparing Global Excellence Human Resources INC with
chosen companies that are existing members of PALSCON so that the gathering of data
Data from the SEC was used so that the analysis would be more focused. Global was
compared to fourteen companies to assess its performance and status among other agencies.
According to pinoyoverseas.net there are approximately 100 manpower agencies in Manila
alone and about 500 more manpower agencies in the NCR.

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a. Assumptions
1. All deployment are on contractual basis/casual employees.
2. Since it is impossible to get all sales revenue in the Industry due to confidentiality
and other forms of business ownership like SOLE PROPRIETORSHIP and
COOPERATIVES. This paper selected companies that are readily available which
are members of PALSCON and operating in the NCR, that is, METRO MANILA.
FIG .2: MARKET SHARE PIE CHART

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Currently, Global Excellence has the smallest market share at .17%. There are
many players in the industry and they can easily surpass each other if the right strategy is
implemented. Although there are some leaders in the market, it is clear that there is no
agency that dominates the industry. The margin is very slim from each other and changes in
position is possible. The market pie is growing steadily and the steady market share may
hold an opportunity for Global to gain a bigger portion in the future.

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b. Competitive Analysis
1) Profile of Competitors
TABLE 3: COMPETITOR’S PROFILE

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2) Basis for choosing competitors; Line of Clients, Familiarity, access to information
and realistic goal for benchmarking.
Global Excellence Human Resources Academy INC. is a young company
compared to Interlink and JECH. With just about four years of existence in the industry,
Global thrives on its quality manpower by strict screening and hiring the right people for
the right job. One of the assests of Global Excellence is its ability to train and create its
own manpower pool by way of training and nurturing them to become responsible
employees.
Interlink Manpower Services, although considered as a sister company of Global
Excellence due to the fact that the president was the former consultant of the company, is
still considered as a competitor because it is also serving the hospitality sector. The main
advantage of this company is the experience of the President and its involvement with
different sectors in the industry. Mr. Rafael C. Chico an award winning manager and one of
the established consultants in the hospitality sector, uses its network and experience in
gaining clients.
JECH MANPOWER has been in the industry for quite sometime. According to
their facebook account they have been existing for a decade now and has been one of the
major competitors of Global Excellence. Due to confidentiality, only a few information
were gathered about their clients. Some clients listed were based on the writer’s experience
on the industry, for there were instances when JECH and Global have been chosen together
to serve the same client.

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3. Criticial Success Factors (Basis for CPM)
The following are factors/variables which the author believe is necessary to be able
to become successful in the industry of manpower outsourcing.
a. Financial Position
All Manpower Agencies should have good financial stability that also includes
substantial capital. The reason for this is that they do not want to be labeled as a labor-only
contracting, which is prohibited by the Department of Labor. According to the Labor
Code:
Section 5. Prohibition against labor-only contracting. Labor-only
contracting is hereby declared prohibited.
For this purpose, labor-only contracting shall refer to an arrangement
where the contractor or subcontractor merely recruits, supplies or places
workers to perform a job, work or service for a principal, and any of the
following elements are present:
i) The contractor or subcontractor does not have substantial capital or
investment which relates to the job, work or service to be performed and
the employees recruited, supplied or placed by such contractor or
subcontractor are performing activities which are directly related to the

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main business of the principal; or
ii) the contractor does not exercise the right to control over the
performance of the work of the contractual employee.
The foregoing provisions shall be without prejudice to the application of
Article 248 (C ) of the Labor Code, as amended.
"Substantial capital or investment" refers to capital stocks and subscribed
capitalization in the case of corporations, tools, equipment, implements, machineries and
work premises, actually and directly used by the contractor or subcontractor in the
performance or completion of the job, work or service contracted out.
The "right to control" refers to the right reserved to the person for whom the
services of the contractual workers are performed, to determine not only the end to be
achieved, but also the manner and means to be used in reaching that end.
Manpower Agencies must be able to finance payroll and give it on time. Based on
the author’s experience, 90% of Global’s clients get their services for the company to be
able to finance payroll for the staff which will be paid later on by the client together with
the administrative service fee which usually takes 15 -30 days upon submission of billing.
If a company has, say, 50-100 staff for 1 client, it takes millions of pesos for the company
to be able to finance payroll, for employees getting minimum salary plus overtime pays.
This is just for 1 client, how much more if the company has thousands of people deployed
to its different clients.

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b. Clients and/or no. of deployment
Number of Clients is a big advantage over competitors if one has gained enough
experience in the industry by acquiring clients and retaining them. Most of the time if one
presents his company during bidding sessions, clients always ask for the previous or
existing clients that one has. If the company has an impressive list of clients most likely
they will consider it to be their partner. However it’s not just the number of clients that
clients look for but the number of people one has in those clients. One may have a lot of
clients but if one only has a few staff like 3-5 people for each, then it will not be very
convincing. Existence in the industry plays a factor because for clients, if one survived the
industry for many years, it goes to show that the organization’s financial stability is in place
considering the nature of business of manpower. There may be some clients who are
looking for younger companies with a few clients because they want them to be the priority
of the manpower agency. A younger company tends to have more control especially if it
has just started business operation with fewer clients. The firm will be able to focus more
on deploying quality manpower if it has fewer clients, however financial stability may be
an issue.
c. Manpower Resources/Pool
Manpower Agencies have two different customers. First is the client, second is his
products which are people. Without resources or enough pool of choices for the client, an
agency will not be successful. Manpower Agencies should simultaneously look for clients
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and at the same time pool quality candidates to be endorsed to the clients. One may get
clients but if one doesn’t have enough candidates, it may turn out ugly and may eventually
lead to termination of services due to inability to supply quality manpower.
d. Management and Leadership
An experienced management team is a great asset for any manpower agency.
Clients also look for the experience of the people behind the company, and surely
experienced leaders can stir the company to the right directions. The company must be
knowledgeable in all facets of business operations especially human resources and labor
laws. Implementing certain rules and regulations without consulting the law and the
economic environment may harm the company and face charges which will be costly for
them.
e. Rates
Rates given to clients play a major factor especially when bargaining with them. I
believe that a good constructed rate without jeopardizing the profit of the company can
attract clients to outsource manpower. Rates or admin service fee collected to the client if
implemented properly can give positive results to the income of the company. The ability
to pay the client is another issue because some deliberately delay payments not just for the
administrative fee but also payroll of employees.

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f. Network (affiliates)
It is hard to get clients without expanding one’s network or affiliates. If one has
plenty of affiliates it can help the organization find clients or even quality candidates for
deployment. Being a member of different organizations can help the company find
opportunities and find potential clients in the future.

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V. INTERNAL ANALYSIS
A. Management
An analysis of the management team of Global Excellence shows that the company
has professionals but they are young managers. Global Excellence is functioning as a
family corporation which further strengthens the bonding of the incorporators and officers.
As Vice President for Human Resources, this writer is one of the people who started the
business and created the business manual together with the consultant of the firm since he
has the most relevant experience in the business operations. After four years of existence,
the management team gained experience in operating the firm. Currently Mr. Abraham
Chico is in charge of the entire operation, and is doing well handling several clients and
endorsement for different positions. Although unfamiliar with the task given to him during
the early stages of the operation, he was able to adjust and handled pressures well in the
manpower industry. The President, Ms. Priscila Carabeo, serves as the Financier of the
Company and serves as the “Decision-Maker” for the entire organization. Mr. Adonis
Chico head of the Management Information System was able to create HR and software
system that speeds up operational transactions and keeps these up–to-date. As a family
corporation it’s inevitable to sometimes argue about certain situations about the business
and sometimes affect personal relationships within the family.

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1. Current Organizational Chart
FIG 3: ORGANIZATIONAL CHART
Based on the illustration above, Global Excellence has a small family. Since it is
operating as Manpower agency, multitasking should be more than enough to keep the
operations flowing. The management team as stated earlier is composed of family members
headed by Ms. Priscila Carabeo, Mother of Abraham Chico (VP Operations/Finance),
Aristotle Chico (VP Marketing and Human Resources), and Adonis Chico (VP Information
Technology and Training). The President serves as the main financier of the company and,
at the same time, the ultimate decision maker of the company.

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B. Financial Performance
Based on the writer’s experience, problems encountered in the operations include
limited funds for payroll financing. It has been proven time and time again that 90% of
Global Excellence’s client doesn’t pay on time. Some keeps on finding excuses or
loopholes in the billing statement to prolong their terms of payment. Currently the
accounting department has only two employees while HR department helps in payroll
checking and preparations. Because of the delay of payments, funds are greatly affected;
there are times that there are more receivables than cash on hand. It’s inevitable for the
management to sometimes delay salaries because of the lack of funds affected by the delay
of payments by the clients. During the early stages of the operations Global Excellence
consulted some of the finest financial management practitioners to help the business grow
and set up the accounting operation flow.

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1. FINANCIAL RATIO ANALYSIS
TABLE 4: CURRENT RATIO
Formula
The current ratio is a popular financial ratio used to test a
company's liquidity (also referred to as its current or working capital position) by
deriving the proportion of current assets available to cover current liabilities. The
concept behind this ratio is to ascertain whether a company's short-term assets
(cash, cash equivalents, marketable securities, receivables and inventory) are
readily available to pay off its short-term liabilities (notes payable, current portion
of term debt, payables, accrued expenses and taxes).
In 2010 Global Excellence was able to increase its Liquidity (current ratio) from
.43 (2009) to .66(2010) according to some expert the ideal current ratio should be 1.5 – 2.0.
If the current ratio is very high, then it only means that the company is not utilizing it’s
resources wisely.
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Formula
TABLE 5: AVG SALES PER DAY
Average sales per day is computed to be able to compute for average collection
period. An increase sale from 2009 to 2010 can be observed, but 2008 had the
greatest no. of average sales per day.
TABLE 6: AVG COLLECTION PERIOD

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A decrease of collection period was experienced by Global in 2010, but it’s far
from the industry of 30 days collection period. Although an improvement from previous
year, the company had a horrible average collection period of 377 days that should also be
addressed by the management.
Activity Ratios or Efficiency Ratios are used to measure the effectiveness of
a firm’s use of resources. Good companies would always put their resources to
optimum utilization. The better the activity or efficiency ratio, the better it is for the
company and it means the company is utilizing its resources properly and
effectively.
Average Collection Period
Most organizations make sales on credit. They usually deliver
goods/services to their customers without taking the payments due immediately.
There could be a credit cycle understanding between them and their customers who
would make periodic payments for the goods/services rendered to them. This ratio
is used to calculate the efficiency with which an organization is able to collect the
payments due to them from their customers. In order to get the average collection
period, you need to get the average sales per day.

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TABLE 7.1: DEBT RATIO
Global Excellence had a Debt Ratio of 1.29 (2010) according to some experts in
the service industry .5 – 1.0 is an ideal debt ratio.
The debt ratio compares a company's total debt to its total assets, which is
used to gain a general idea as to the amount of leverage being used by a company.
A low percentage means that the company is less dependent on leverage, like
money borrowed from and/or owed to others. The lower the percentage, the less
leverage a company is using and the stronger its equity position. In general, the
higher the ratio, the more risk that company is considered to have taken on.
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TABLE 7.2: PROFITABILITY RATIOS
Global Excellence was able to increase its profitability ratio from -21% (2009) to
13% (2010) which is a good sign. Operating profit margin has -98% which means that the
company has a lot of expenses from the operations which should be improved for the next
year.
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Profitability Ratios is a class of financial metrics that are used to assess a
business's ability to generate earnings as compared to its expenses and other
relevant costs incurred during a specific period of time. For most of these ratios,
having a higher value relative to a competitor's ratio or the same ratio from a
previous period is indicative that the company is doing well.
Gross profit margin is a financial metric used to assess a firm's financial
health by revealing the proportion of money left over from revenues after
accounting for the cost of goods sold. Gross profit margin serves as the source for
paying additional expenses and future savings. Also known as "gross margin".
The operating profit margin ratio indicates how much profit a company
makes after paying for variable costs of production such as wages, raw materials,
etc. It is expressed as a percentage of sales and shows the efficiency of a company
controlling the costs and expenses associated with business operations. Phrased
more simply, it is the return achieved from standard operations and does not include
unique or one time transactions.

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2. Latest Financial Statements
FIG. 4: COMPARATIVE INCOME STATEMENT
Global Excellence currently is not doing well as it is incurring heavy losses.
Although an improvement from 2010 can be seen, the management must take
immediate action to substantially improve the situation.

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FIG. 5.1: COMPARATIVE BALANCE SHEET
It can be observed in the Current Asset Section that Global Excellence has
greater accounts receivable but does not have substantial Cash in Bank.
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FIG. 5.2: COMPARATIVE BALANCE SHEET
Total stockholders’ equity reflects negative results since 2007. Equity is
very low which is not good for the company.

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FIG 6: COMPARATIVE STATEMENT OF CASH FLOW
Interpretation of Financial Statement
Lack of Equity - Global needs to have more equity and needs an investor to invest at least 2
million pesos, in order for it to be Liquid. A company cannot expand if it has limited
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capital and will not be able to operate efficiently if there’s no capital.
Collection Cycle – A horrendous 377 avg collection period is one of the reasons why the
company has very low liquidity. They may be earning profit but in the form of collectibles.
Cash on Hand is very important in operating the business.
Huge Operating Expense – A huge operating expense should be minimized. Find sources
of INCOME to coup up with the huge expenses.
C. Production and Operations
Global’s Vice President for HR, as one of the creators of the operations manual for
human resources, operates to recruit quality people with job matching qualities and right
attitude. In order for Global to be able to build up its manpower pool, the organization
subscribed to different job portals like Jobs DB and Jobstreet to further strengthen its
network and source of people. For the HR recruitment system, this is how Global
Excellence operates.
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FIG 7: PROCESS OF RECRUITMENT AND SCREENING OF APPLICANTS

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D. Marketing
Another problem is the saturated market in Metro Manila. It’s difficult to close a
deal with hotel and restaurants because some already have existing contract with other
agencies especially those who established their own agency to take advantage of
contractualization of employment which is prohibited.
Global Excellence provides sales kit to its sales force to present to their clients. It includes
company profile of the organization, services offered, rates and other proof of legal
existence such as Business Permits, DOLE Licenses, SSS Clearance etc.
Below is a process how marketing is being operated in the company.
PLANNING STAGE
IDENTIFY POTENTIAL MARKET /LOCATION
CREATE STRATEGIES TO CAPTURE MARKET
PERSONAL PROMOTIONAL TELEMARKETING NETWORKING

SELLING ADS
FOLLOW UP
FINALIZE AND CLOSE DEAL
FIG. 8: MARKETING OPERATION

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FIG. 9: SAMPLE MARKETING ADVERTISEMENT

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E. Research and Development
For Research and Development, Global Excellence has not yet produced or
conducted a thorough research for development. However for the past four years that it has
existed it depended on former consultants of the company to make strategies and critical
decisions.
F. Management Information System
The Vice President for operations, Mr. Abraham Chico, together with Mr. Adonis
Chico, teamed up to make a website and create program database to efficiently improve the
process of recruitment and filing system. With the help of a consultant programmer, they
were able to create a payroll system custom-fit for the daily operations of the company.
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VI. STRATEGY FORMULATION
The writer used the following tools by FRED DAVID in the formulation of
strategies.
INPUT STAGE
 External Factor Evaluation Matrix.
 Internal Factor Evaluation Matrix
 Competitive Profile Matrix
 STRATEGIC POSITION & ACTION EVALUATION (SPACE) MATRIX
MATCHING STAGE
 IE Matrix
 SPACE RESULTS (GRAPH)
 Boston Consulting Group
 GRAND STRATEGY
 TOWS MATRIX
EVALUATION STAGE
 QUANTITATIVE STRATEGIC PLANNING MATRIX

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A. INPUT STAGE
1. External Factor Evaluation Matrix
TABLE 8: EFE MATRIX
Weight determines the weight of importance in the industry from 0.0(not important) up to
1.0 (solely important). Ratings indicate the response of the company to a particular variable
whether poor, average, above average, or superior.
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External Factor Evaluation (EFE) matrix method is a strategic-management tool
often used for assessment of current business conditions. The EFE matrix is a good tool to
visualize and prioritize the opportunities and threats that a business is facing.
The EFE matrix is very similar to the IFE matrix. The major difference
between the EFE matrix and the IFE matrix is the type of factors that are included
in the model. While the IFE matrix deals with internal factors, the EFE matrix is
concerned solely with external factors.
Developing an EFE matrix is an intuitive process which works conceptually
very much the same way like creating the IFE matrix. The EFE matrix process uses
the same five steps as the IFE matrix.
List factors: The first step is to gather a list of external factors. Divide factors into two
groups: opportunities and threats.
Assign weights: Assign a weight to each factor. The value of each weight should be
between 0 and 1 (or alternatively between 10 and 100 if you use the 10 to 100 scale). Zero
means the factor is not important. One or hundred means that the factor is the most
influential and critical one. The total value of all weights together should equal 1 or 100.
Rate factors: Assign a rating to each factor. Rating should be between 1 and 4. Rating
indicates how effective the firm’s current strategies respond to the factor. 1 = the response
is poor. 2 = the response is below average. 3 = above average. 4 = superior. Weights are
industry-specific. Ratings are company-specific.

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Multiply weights by ratings: Multiply each factor weight with its rating. This
will calculate the weighted score for each factor.
Total all weighted scores: Add all weighted scores for each factor. This will calculate the
total weighted score for the company.
The proponent listed the following variables, which can greatly affect the
organization.
OPPORTUNITIES
1. Increase of Unemployment Rate
Increase of unemployment rate means opportunity for Global Excellence. More people will
be looking for jobs and Global Excellence would be more than willing to help them.
Global Excellence will be able to place them and endorse them to their different clients
especially if they are qualified for the position. Training can also be an option if the
candidate is not yet competent for a particular field.
An increase in the unemployment rate means also an increase of opportunity for other
competitors. Global responds well to this development by partnering with different
barangays to disseminate information regarding job availabilities, conducting free seminars
to attract prospective applicants to join the team, and joining job fairs to get more pool of
candidates. Through Print ad and flyer distribution, it helps them promote and reach out to
our target people.

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2. Booming of Hospitality Industry in the Philippines
Different schools right now are offering Hospitality Management Courses like Far Eastern
University, Colegio de San Juan de Letran and etc. Globally Hospitality Industry is
becoming a hot commodity that’s why a lot of students opt to choose courses related to this
field. Working abroad or in cruise ship would motivates them in getting this course,
however employers abroad are looking for people who already have experience working in
the same industry. Global Excellence can grab the opportunity to become a stepping stone
to realize their dream of working abroad or in a cruise ship. Global can encourage people to
work first locally just to gain enough experience for them to be able to qualify working
abroad.
Global takes advantage of this opportunity by joining job fairs in schools and universities,
investing on getting graduate list to recruit them to become our pool. The management is
also taking advantage of this by teaching in different universities as a part-time faculty
professor to widen its network.
3. Other Markets available outside Metro Manila
Global Excellence can look at the opportunity of getting clients outside Metro Manila. As
matter of fact, they already have a few or previous clients outside Metro Manila like Petron
Marketing Corporation in Pangasinan. If the Market is already saturated in Metro Manila
why not consider looking for clients in other areas like Bulacan, Cavite or other provincial
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areas.
Global chose to stay in Metro Manila Market area due to lack of funds or capital to
establish a network office in other provincial areas. Transactions from provincial clients are
done through mail and internet. Though plans of expanding through other provinces are on
the horizon, it will not happen until enough capital is generated.
4. Other Industry available
Global Excellence may be able to serve other sectors as well. It can start looking for other
opportunities like manpower in different factories or maybe placing professional executives
or secretarial positions. We can also look in the field of engineering or computer related
works.
Currently Global is already filling up other positions other than Hospitality Sector like
Griller in (Chickboy), Machine Operator and Chemist, although positions are being filled
up Global is not really planning to exclusively shift in other sector.
5. BMBE LAW (REPUBLIC ACT NO. 9178)
Global Excellence is currently researching if it is possible to apply to operate under this
law. Approval may greatly increase financial stability because of the exemptions and other
benefits that it can give to a particular company.
The following are some information regarding the LAW;
Section 3. Definition of Terms As used in this Act, the following terms shall mean:
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(a) "Barangay Micro Business Enterprise," hereinafter referred to as BMBE, refers to any
business entity or enterprise engaged in the production, processing or manufacturing of
products or commodities, including agro-processing, trading and services, whose total
assets including those arising from loans but exclusive of the land on which the particular
business entity's office, plant and equipment are situated, shall not be more than Three
Million Pesos (P3,000,000.00) The Above definition shall be subjected to review and
upward adjustment by the SMED Council, as mandated under Republic Act No. 6977, as
amended by Republic Act No. 8289.
For the purpose of this Act, "service" shall exclude those rendered by any one, who is duly
licensed government after having passed a government licensure examination, in
connection with the exercise of one's profession.
(b) "Certificate of Authority" is the certificate issued granting the authority to the registered
BMBE to operate and be entitled to the benefits and privileges accorded thereto.
(c) "Assets" refers to all kinds of properties, real or personal, owned by the BMBE and
used for the conduct of its business as defined by the SMED Council: Provided, That for
the purpose of exemption from taxes and fees under this Act, this term shall mean all kinds
of properties, real or personal, owned and/or used by the BMBE for the conduct of its
business as defined by the SMED Council.
(d) "Registration" refers to the inclusion of BMBE in the BMBE Registry of a city or
municipality.
(e) "Financing" refers to all borrowings of the BMBE from all sources after registration.
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REGISTRATION AND OPERATION OF BMBE
The Law provides that
Sec. 4. Registration and Fees - The Office of the Treasurer of each city
or municipality shall register the BMBE's and issue a Certificate of
Authority to enable the BMBE to avail of the benefits under this Act.
Any such applications shall be processed within fifteen (15) working
days upon submission of complete documents. Otherwise, the BMBEs
shall be deemed registered. The Municipal or City Mayor may appoint a
BMBE Registration Officer who shall be under the Office of the
Treasurer. Local government units (LGU's) are encouraged to establish a
One-Stop-business Registration Center to handle the efficient registration
and processing of permits/licenses of BMBEs. Likewise, LGUs shall
make a periodic evaluation of the BMBE's financial status for monitoring
and reporting purposes.
The LGUs shall issue the Certificate of Authority promptly and free of
charge. However, to defray the administrative costs of registering and
monitoring the BMBEs, the LGUs may charge a fee renewal.
The Certificate of Authority shall be effective for a period of two (2)
years, renewable for a period of two (2) years for every renewal.
As much as possible, BMBEs shall be subject to minimal bureaucratic
requirements and reasonable fees and charges.

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Sec. 5. Who are Eligible to Register Any person, natural or juridical, or
cooperative, or association, having the qualifications as defined in Sec.
3(a) hereof may apply for registration as BMBE.
Sec. 6. Transfer of Ownership - The BMBE shall report to the city or
municipality of any changer in the status of its ownership structure, and
shall surrender the original copy of the BMBE Certificate of Authority
for notation of the transfer.
INCENTIVES AND BENEFITS
Sec. 7. Exemption from Taxes and Fees All BMBEs shall be exempt
from tax for income arising from the operations of the enterprise.
The LGUs are encouraged either to reduce the amount of local taxes,
fees and charges imposed or to exempt BMBEs from local taxes, fees
and charges.
Sec. 8. Exemption from the Coverage of the Minimum Wage Law The
BMBEs shall be exempt from the coverage of the Minimum Wage Law:
Provided, That all employees covered under this Act shall be entitled to
the same benefits given to any regular employee such as social security
and healthcare benefits.
Section 9. Credit Delivery upon the approval of this Act, the land Bank
of the Philippines (LBP), the Development Bank of the Philippines
(DBP), the Small Business Guarantee and Finance Corporation

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(SBGFC), and the People's Credit and Finance Corporation (PCFC) shall
set up a special credit window that will service the financing needs of
BMBEs registered under this Act consistent with the Banko Sentral ng
Pilipinas (BSP) policies; rules and regulations. The Government Service
Insurance System (GSIS) and Social Security System (SSS) shall
likewise set up a special credit window that will serve the financing
needs of their respective members who wish to establish a BMBE. The
concerned financial institutions (FIs) encouraged to wholesale the funds
to accredited private financial institutions including community-based
organizations such as credit, cooperatives, non-government organizations
(NGOs) and people's organizations, which will in turn, directly provide
credit support to BMBEs.
All loans from whatever sources granted to BMBEs under this Act shall
be considered as part of alternative compliance to Presidential Decree no,
717,, otherwise known as the Agri-Agra Law, or to Republic Act. No.
6977, known as the Magna Carta for Small and Medium Enterprises, as
amended. For purposes of compliance with presidential Decree no. 717
and Republic Act No. 6977, as amended, loans granted to BMBEs under
this Act shall be computed at twice the amount of the face value of the
loans.
To minimize the risks in lending to the BMBEs, the SBGFC and the
Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) under
the Department of Agriculture, in case of agribusiness activities, shall set

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up a special guarantee window to provide the necessary credit guarantee
to BMBEs unde rtheir respective guarantee programs.
The LBP, DBP. PCFC, SBGFC, SSS, GSIS, and QUEDANCOR shall
annually report to the appropriate Committee of Both Houses of
Congress on the status of the implementation of this provision.
The BSP shall formulate the rules for the implementation of this
provision and shall likewise establish incentive programs to encourage
and improve credit delivery to the BMBEs.
Sec. 10. Technology Transfer, Production and Management Training,
and marketing Assistance A BMBE Development Fund shall be set up
with an endowment of Three Hundred Million pesos (P300,000,000.00)
from the Philippine Amusement and Gaming Corporation (PAGCOR)
and shall be administered by the SMED Council.
The Department of Trade and Industry (DTI), the Department of Science
and Technology (DOST), the university of the Philippines Institute for
Small Scale Industries (UP ISSI), Cooperative Development Authority
(CDA), Technical Education and Skills Development Authority
(TESDA), and Technology and Livelihood Resource Center (TLRC)
may avail of the said Fund for technology transfer, production and
management training and marketing assistance to BMBEs.

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The DTI, in coordination with the private sector and non-government
organization (NGOs), shall explore the possibilities of linking or
matching-up BMBEs with small, medium and large enterprises and
likewise establish incentives therefor.
The DTI, in behalf of the DOST, UP ISSI, CDA. TESDA and TLRC
shall be required to furnish the appropriate Committees of both Houses
of Congress a yearly report on the development and accomplishments of
their projects and programs in relation to technology transfer, production
and management training and marketing assistance extended to BMBEs.
Sec. 11. Trade and Investment Promotions The data gathered from
business registration shall be made accessible to and shall be utilized by
private sector organizations and non-government organizations for
purposes of business matching, trade and investment promotion.
THREATS
1. Bills proposed to abolish contractual employment
Senate Bill 922 otherwise known as “REGULARIZATION ACT OF 2007”, was
introduced by Senator Loren Legarda and it is AN ACT PROVIDING FOR THE
REGULARIZATION OF EMPLOYEES, PROHIBITING CONTRACTUAL OR LABOR-
ONLY CONTRACTING FOR REGULAR POSITIONS, and PROVIDING PENALTIES
FOR VIOLATION. If this will push through then Agencies will greatly be affected, solely
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because the nature of business of these companies depend on contractual employment.
Many companies will also be affected because some cannot afford to regularize all their
employees because of the peak and lean season in the hospitality industry sector.
Global has been actively participating in its organization (PALSCON) Philippine
Association of Local Service Contractors to prevent this bill from being passed into a law.
The organization act as an industry spokesperson and is actively participating in different
sessions to represent manpower agencies.
2. Increased number of Manpower Cooperatives
Manpower Cooperatives remain to be a threat because of their exemption from
taxes which puts at a disadvantage Manpower Corporations. As cited in the External
Analysis, many are shifting to this form of ownership mainly because of the great benefit or
exemption of taxes. PALSCON members are currently taking action to fight for the rights
of Manpower Corporations to level the playing field against cooperatives.
3. Increase of Fly-by-Night Agencies
“Fly-by-night agencies” or illegal agencies that collects money from the candidates
or workers without permit or just right before placement of job ruins the image of other
manpower agencies. Trust is becoming more of an issue for applicants because of the bad
image projected by their embarrassing practices. As a result, if applicants find out that
Global an agency, they immediately back out of the application because of the bad image
that they have on agencies.
GLOBAL participates in helping people by disseminating information about “fake

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agencies” displaying licenses giving warning signs in their flyers to be aware of fly by
night agencies. GLOBAL also participates in different media publicity by guesting in
different radio stations to inform the public on the topic “how to spot fly-by-night
agencies”
I. Internal Factor Evaluation Matrix
TABLE 9: IFE MATRIX
Weight determines the weight of importance in from 0.0(not important) up to 1.0 (solely
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important). Ratings are used to determine if it is a weakness or strength of a particular

company.
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.
The IFE Matrix together with the EFE matrix is a strategy-formulation tool that
can be utilized to evaluate how a company is performing in regards to identified internal
strengths and weaknesses of a company. The IFE matrix method conceptually relates to
the Balanced Scorecard method in some aspects.
The IFE matrix can be created using the following five steps:
Key internal factors...
Conduct internal audit and identify both strengths and weaknesses in all the
business areas. It is suggested that one identify 10 to 20 internal factors, but the more one
can provide for the IFE matrix, the better. The number of factors has no effect on the range
of total weighted scores (discussed below) because the weights always sum to 1.0, but it
helps to diminish estimate errors resulting from subjective ratings. First, list strengths and
then weaknesses. It is wise to be as specific and objective as possible. One can, for
example, use percentages, ratios, and comparative numbers.

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Having identified strengths and weaknesses, the core of the IFE matrix, assign a
weight that ranges from 0.00 to 1.00 to each factor. The weight assigned to a given factor
indicates the relative importance of the factor. Zero means not important. One indicates
very important. If one works with more than 10 factors in one’s IFE matrix, it can be easier
to assign weights using the 0 to 100 scale instead of 0.00 to 1.00. Regardless of whether a
key factor is an internal strength or weakness, factors with the greatest importance in one’s
organizational performance should be assigned the highest weights. After one assigns
weight to individual factors, one have to make sure that the sum of all weights equals 1.00
(or 100 if using the 0 to 100 scale weights).
The weight assigned to a given factor indicates the relative importance of the factor
to being successful in the firm's industry. Weights are industry based.
Rating...
Assign a 1 to X rating to each factor. The rating scale can be per one’s preference.
Practitioners usually use rating on the scale from 1 to 4. Rating captures whether the factor
represents a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength
(rating = 3), or a major strength (rating = 4). If you use the rating scale 1 to 4, then
strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2 rating.
Note, the weights determined in the previous step are industry based. Ratings are company
based.
Multiply...
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Now one can get to the IFE matrix math. Multiply each factor's weight by its
rating. This will give a weighted score for each factor.
Sum...
The last step in constructing the IFE matrix is to sum the weighted scores for
each factor. This provides the total weighted score for your business.
STRENGTHS:
1. NETWORK
One of the strengths of Global Excellence is network. Even though it competes
with Interlink Manpower Services; still they work together to lend manpower just in case
the other one is short of pool for a particular position. Global is known to have quality
manpower for food and beverage while Interlink is known for the quality of manpower
when it comes to housekeeping.
Another advantage is Global’s network in the academe industry. It has partnerships
with different schools for On the Job Training Venues. One of the Incorporators is teaching
in Lyceum of the Philippines and also a former instructor in Letran. This way, Global can
recruit fresh graduates and encourage them to be part of the company just in case clients
will see them fit for the position someday.

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2. QUALITY MANPOWER
Global Excellence also has a training center which is Excellent Choice Training
Center. Before Global used to train its own staff before deploying them, but since Global
has vision of creating an academy they decided to create a separate entity for training thus
it the birth of Excellent Choice Training Center.
The training center can create manpower pool for Global Excellence. All applicants
who wish to be deployed in a particular position but does not have the required skills or
experience can undergo training first with excellent choice training center for them to
become competent. A thorough screening is done together with background investigation to
further validate and analyze skills and attitudes. There are also loyal employees that started
with Global Excellence and eventually became successful in their respective field that
continue to support and help the organization.
3. PAYROLL SYSTEM AUTOMATION
Global was able to create a payroll system which speeds up the processing of
payroll. It benefitted on the “on call” processing of payroll which is usually released
weekly to the employees. It can be considered as strength and can be used as an advantage
compared to other manpower agencies. Potential clients might consider Global’s services if
brought up during service presentation.

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4. RATES
A sample rate is posted on the Internal Analysis under Finance and Accounting.
The admin istrative service fee of Global Excellence is competitive as it which can offer
only 6% rate of admin istrative fee. There is also an option for VAT exclusive rates which
can be negotiated between parties (no official receipts, just acknowledgement receipts.)
Since Global Excellence also has PRPA license it can also collect Placement fee to
employees deployed. Some clients prefer not to include 13th month pay for billing, meaning
they will directly pay the 13th month pay of employees which can also be modified in the
offered rate. Changes like this need to be stated in the contract for legal purposes.
5. DUAL LICENSE
As previously stated, Global Excellence has DO-18 service contractor license and
PRPA License which allows it to recruit and charge placement fee to clients and
employees. Some Agencies only has DO-18 which limits their operation as service
contractors, but some of them still recruits and charge employees without PRPA license
which is illegal. Dual License Agencies makes the client secure for potential legal problems
that might arise. Definitely a huge advantage over competitors and protects the
organization from legal aspects of the operations.

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WEAKNESSES:
1. Lack of Administration Personnel
Currently, aside from “Working Incorporators” the company only has five regular
employees. There are two employees in the HR dept., two in the accounting dept and one
messenger/admin personnel. The other HR assistant is currently pregnant and is expecting
to file a maternity leave soon. This writer, as the Head of the HR dept. is currently on leave
to finish other matters and fulfill commitments to other organization but actively
participates in helping the HR operations from time to time.
2. Lack of Equity
Based on the Financial Statement of the company, mentioned before is the lack of
equity, if the company lack funds for operations it will not be able to expand and look for
more clients. It must be able to sustain and finance the operations of the company.
In the nature of Manpower Business, a deep financial capital is needed especially when
financing payroll which could cost millions of pesos depending on the number of people.
3. Collection Cycle
A poor collection cycle with an avg collection period of 377 days, one of the
reasons why the company has a low current ratio. Global may be earning income but if it
cannot collect efficiently then it may be forced to look for other sources of funds which
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might result to increase in payables in the future. Improving collection cycle can greatly
improve Liquidity and may result to a more efficient flow of operations.
4. Few Clients and Deployment
Compared to its direct competitors currently, Global Excellence has only four
active clients, namely, FB Management Group, Petron Marketing Corporations, Tamayos
Catering and Albergus. An avg no.of deployment of 55 employees per month of Global
Excellence is low compared with its competitors who have thousands of employees. They
still need to find suitable clients that will get more people and also pay bills on time. More
deployments mean more expenses, and capability of the company to finance more payroll
for larger deployment is crucial.

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II. Competitive Profile Matrix
TABLE 10: CPM MATRIX
Competitive profile matrix is an essential strategic management tool to compare
the firm with the major players of the industry. Competitive profile matrix show the clear
picture to the firm about their strong points and weak points relative to their competitors.
The CPM score is measured on basis of critical success factors, each factor is measured in
same scale mean the weight remain same for every firm only rating varies. The best thing
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about CPM that it include your firm and also facilitate to add other competitors make easier
the comparative analysis.
IFE matrix only internal factors are evaluated and in EFE matrix external factors
are evaluated but CPM include both internal and external factors to evaluate overall
position of the firm with respective to their major competitors.
The competitive profile matrix consists of following attributes mentioned below.
Critical Success Factors
Critical success factors are extracted after deep analysis of external and internal
environment of the firm. Obviously there are some good and some bad for the company in
the external environment and internal environment.The higher rating show that firm
strategy is doing well to support this critical success factors and lower rating means firm
strategy is lacking to support the factor.
Rating
Rating in CPM represent the response of firm toward the critical success factors.
Highest the rating better the response of the firm towards the critical success factor ,rating
range from 1.0 to 4.0 and can be applied to any factor.
There are some important point related to rating in CPM.
 Rating is applied to each factor.
 The response is poor represented by 1.0
 The response is average is represented by 2.0

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 The response is above average represented by 3.0
 The response is superior represented by 4.0
Weight
Weight attribute in CPM indicates the relative importance of factor to being
successful in the firm’s industry. The weight range from 0.0 means not important and 1.0
means important, sum of all assigned weight to factors must be equal to 1.0 otherwise the
calculation would not be consider correct.
Weighted Score
Weighted score value is the result achieved after multiplying each factor rating
with the weight.
Total Weighted Score
The sum of all weighted score is equal to the total weighted score, final value of
total weighted score should be between range 1.0 (low) to 4.0(high). The average weighted
score for CPM matrix is 2.5 any company total weighted score fall below 2.5 consider as
weak. The company total weighted score higher then 2.5 is consider as strong in
position.The other dimension of CPM is the firm with higher total weighted score
considered as the winner among the competitors.

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1. Financial Position/Stability
TABLE 11: PROFITABILITY RATIO (COMPARISON)
Profitability Ratios (GROSS PROFIT MARGIN)

Company 2010 2009 2008
Global Excellence 13% -21% -5%
Jech 17% 12% 8%
Interlink 17% 25% 18%
FIG. 10 PROFITABILITY COMPARISON (GRAPH)
Ratio analysis is a widely used tool of financial analysis. It is defined as the
systematic use of ratio to interpret the financial statements so that the strength and
weaknesses of a firm as well as its historical performance and current financial condition
can be determined. The term ratio refers to the numerical or quantitative relationship
between two variables.
The most important variable in the Manpower Industry is the Financial
Position/Stability. Based on the data gathered, JECH manpower is the most stable in profit.
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According to Profitability Ratio Analysis, JECH has the most outstanding trending of profit
ratio, continuously increasing as the year goes. Interlink has the same ratio on 2010 but
went down by 7% if compared to the previous year. Global Excellence meanwhile
increased its profitability ratio from -21% to 13%.
TABLE 12: LIQUIDITY RATIO (COMPARISON)
Liquidity Ratio (current ratio)

Company 2010 2009 2008
Global
Excellence 0.66 0.43 0.86
Jech 13.12 10.30 18.18
Interlink 1.11 1.19 1.43
FIG. 11: LIQUIDITY RATIO COMPARISON (GRAPH)
With the help of ratio analysis, conclusions can be drawn regarding the Liquidity position
of a firm. The liquidity position of a firm would be satisfactory if it is able to meet its
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current obligation when it becomes due. The ability to meet short-term liabilities is
reflected in the liquidity ratio of a firm.
It can be readily seen that JECH manpower is far ahead of the competition, proving
to be the most “Liquid” company among the rest, scoring 13.12 in 2010. But 13% proves to
be too high, causing inefficient utilization of resources, followed by Interlink at 1.11 which
is acceptable while Global Excellence is at .66 which is below average.
2. Clients, Deployment and MARKET SHARE
An analysis of the competition in terms of clients show that it would be good if a
manpower agency has several clients for it will also be a basis of stability on the
perspective of potential clients. Many clients prefer agencies that had been in the industry
for quite some time. Although it does not guarantee that “more clients mean more income”,
it does increase a company’s credibility and strengthen its resume. Number of
Deployments as an indicator also plays a factor if a company wants to gain more income.
In fact, a company can survive with just one or two clients but with thousands of
deployment – it is easier to manage and less complicated on the part of the agency.
INTERLINK
Being in the industry for quite some time, INTERLINK has gained a competitive
advantage especially in this category. Being able to get clients such as Phil. Plaza, Hyatt
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and other De Luxe and First Class Hotel is a feat to behold. INTERLINK has the highest
score at .8. Avg no. of deployment/month is 3,323. 83
JECH
This company also had its share of De Luxe and First Class Hotel, and although it
may have a short list, the bulk of its manpower also plays a factor. LONGEVITY of
partnership with JECH made it stand out from other competitors. INTERLINK and JECH
focuses more on hotel clients. JECH score .6 behind INTERLINK. Avg no. of
deployment/month is 3240.30
GLOBAL EXCELLENCE
Looking at the list of Global’s clients, it can be seen that most of them are in the
Food and Beverage Industry. Although this list is longer than its competitors, most of the
clients of Global are inferior compared with 5-star hotels in terms of bulk requirements of
manpower. Of course prospective clients prefer well known establishments when it comes
to industry experience. GLOBAL scores at .4. Avg no. of deployment/month is 55.44

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Market Share
TABLE 13: INDUSTRY MARKET SHARE
Jech manpower is leading with a very small margin of 9.71% market share
followed by Interlink 9.66% and Global with .17%.
3. Manpower Resources/Pool
The author is only familiar with the system of Global and Interlink because of his
experience working on both company. As a former HR employee of Interlink he knew that
they get their resources most of the time through networking. With a vast affiliation of its
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president it gets manpower pool in all sectors of the industry, another advantage is that the
president is an anchorman on one of the radio AM station in the Philippines. Global on the
other hand uses it’s technology efficiently partnering with different websites and investing
on print ADS to further recruit manpower for pooling. Another advantage is the network of
schools connected with them because two of the corporators are affiliated with different
UNIVERSITIES. Based on interview with the former employee of JECH (HR specialist),
JECH ties up with different schools and also invests heavily on Print ADS and Public
Relations. All of them are tied at the score of .6.
4. Management and Leadership
Interlink has great advantage when it comes to Management and Leadership. Its
President and other management personnel already has vast experience compared with the
management team of Global Excellence who are younger and less experienced in the
industry. Its President Mr. Rafael Chico is a former hotelier and also working as a freelance
consultant of different HOTELS not just in Metro Manila but also all over the Philippines.
The Management Team of Global Excellence is composed of Graduates in different fields
of Expertise in Business, Information Technology, and in Education. The writer has limited
information about its management team because of confidentiality, but based on experience
working with them (co-supplier) Jun Alido has been a solid leader, being able to invest his
money in all types of business and well known when it comes to allocating and financing
his manpower business. It was also known that a lot of clients were indebted to him
because of inability to settle payments. INTERLINK has the edge scoring .4.
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5. Rates
When it comes to rates, all scored .15. Confidentiality becomes a factor in
gathering data for my research but based on experience when it comes to offering rates
GLOBAL EXCELLENCE has the most affordable rates compared to them but
INTERLINK offers a more flexible option based on previous rates offered to clients. JECH
on other hand prefers to offer a higher rate than usual, using image pricing strategy,
offering a higher rate in a belief of rendering quality service.
6. Networks
INTERLINK obviously leads the pack when it comes to network and publicity.
Newspaper Publicity has been its strength since it has a lot of tie ups/partnership with the
media. Considering the fact that its president is an anchorman, it has the easiest access to
media. Its president is also affiliated with the tourism council, red cross and other
government bodies and organization. Global Excellence thrives more on networks on
schools, Training Centers and Universities. There is limited information on JECH but based
on interview, JUN ALIDO its President, is also affiliated with other organizations and ties
up with other agencies to do sub contracting.

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III. SPACE MATRIX (INPUT)
TABLE 14: SPACE MATRIX
Financial Strength has an average score of 3, Environmental Stability has average
score of
-3.66, Competitive average score of -4.75 and has an average score of 4 in the Industry
Strength area.
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The SPACE matrix is a management tool used to analyze a company. It is used to
determine what type of a strategy a company should undertake.
The Strategic Position & ACtion Evaluation matrix or short a SPACE matrix is
a strategic management tool that focuses on strategy formulation especially as related to the
competitive position of an organization.
The SPACE matrix can be used as a basis for other analyses, such as the SWOT
analysis, BCG matrix model, industry analysis, or assessing strategic alternatives (IE
matrix).
The SPACE matrix is constructed by plotting calculated values for
the competitive advantage (CA) and industry strength (IS) dimensions on the X
axis. The Y axis is based on the environmental stability (ES) and financial
strength (FS) dimensions. The SPACE matrix can be created using the following
seven steps:
Step 1: Choose a set of variables to be used to gauge the competitive advantage (CA),
industry strength (IS), environmental stability (ES), and financial strength (FS).
Step 2: Rate individual factors using rating system specific to each dimension. Rate
competitive advantage (CA) and environmental stability (ES) using rating scale from -6
(worst) to -1 (best). Rate industry strength (IS) and financial strength (FS) using rating
scale from +1 (worst) to +6 (best).

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Step 3: Find the average scores for competitive advantage (CA), industry strength (IS),
environmental stability (ES), and financial strength (FS).
Step 4: Plot values from step 3 for each dimension on the SPACE matrix on the
appropriate axis.
Step 5: Add the average score for the competitive advantage (CA) and industry strength
(IS) dimensions. This will be your final point on axis X on the SPACE matrix.
Step 6: Add the average score for the SPACE matrix environmental stability (ES) and
financial strength (FS) dimensions to find your final point on the axis Y.
Step 7: Find intersection of your X and Y points. Draw a line from the center of the
SPACE matrix to your point. This line reveals the type of strategy the company should
pursue.
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1. MATCHING STAGE
I. IE MATRIX (Result of IFE and EFE)
FIG. 12: IE MATRIX GRAPH
Graph result of EFE and IFE falls in the GRAY area HOLD and MAINTAIN
Strategy means that the company needs stability.

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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.
The IE matrix is a continuation of the EFE matrix and IFE matrix models.
The IE matrix belongs to the group of strategic portfolio management tools.
In a similar manner like the BCG matrix, the IE matrix positions an organization
into a nine cell matrix.
The IE matrix is based on the following two criteria:
1. Score from the EFE matrix -- this score is plotted on the y-axis
2. Score from the IFE matrix -- plotted on the x-axis
The IE matrix works in a way that one plots the total weighted score from
the EFE matrix on the y axis and draw a horizontal line across the plane. Then one
takes the score calculated in the IFE matrix, plot it on the x axis, and draw a
vertical line across the plane. The point where the horizontal line meets the vertical
line is the determinant of one’s strategy. This point shows the strategy that the
company should follow.
On the x axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99
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represents a weak internal position. A score of 2.0 to 2.99 is considered average. A
score of 3.0 to 4.0 is strong.
On the y axis, an EFE total weighted score of 1.0 to 1.99 is considered low.
A score of 2.0 to 2.99 is medium. A score of 3.0 to 4.0 is high.

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II. SPACE MATRIX results (GRAPH)
FIG. 13: SPACE MATRIX GRAPH
Graph for Space Matrix Generated from the 4 quadrants. Falls under Defensive
strategy. A template was used automatically plotting the coordinates.

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Defensive Strategies include the following:
Retrenchment – Regrouping through cost and asset reduction to reverse declining sales
and profit
Liquidation – Selling all of a company’s assets, in parts, for their tangible worth
Divestiture – Selling a division or part of an organization
The SPACE matrix is broken down to four quadrants where each quadrant
suggests a different type or a nature of a strategy:
 Aggressive
 Conservative
 Defensive
 Competitive
There are many SPACE matrix factors under the internal
strategic dimension. These factors analyze a business internal strategic position.
The financial strength factors often come from company accounting. These SPACE
matrix factors can include for example return on investment, leverage, turnover,
liquidity, working capital, cash flow, and others. Competitive advantage factors
include for example the speed of innovation by the company, market niche position,
customer loyalty, product quality, market share, product life cycle, and others.
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Every business is also affected by the environment in which it operates.
SPACE matrix factors related to business external strategic dimension are for
example overall economic condition, GDP growth, inflation, price elasticity,
technology, barriers to entry, competitive pressures, industry growth potential, and
others. These factors can be well analyzed using the Michael Porter’s Five Forces
model.
The SPACE matrix calculates the importance of each of these dimensions
and places them on a Cartesian graph with X and Y coordinates.
The following are a few model technical assumptions:
- By definition, the CA and IS values in the SPACE matrix are plotted on the X
axis.
- CA values can range from -1 to -6.
- IS values can take +1 to +6.
- The FS and ES dimensions of the model are plotted on the Y axis.
- ES values can be between -1 and -6.
- FS values range from +1 to +6.

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III. BCG MATRIX
FIG. 14: BCG MATRIX
Basis for Computation
MARKET SHARE = Current SALES REVENUE/TOTAL SALES in the Market
(15 companies random sampling was used for getting market share).
MARKET GROWTH RATE = Revenue increase(decrease) from previous
year/divide by previous year sales
Reference: Measuring Marketing by John Davis 2007 edition

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FIG. 15 MARKET SHARE AND MARKET GROWTH
Market Share = .17% LOW MARKET SHARE
Market Growth = 98% HIGH MARKET GROWTH

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The BCG matrix, also called the BCG model, relates to marketing. The BCG
model is a well-known portfolio management tool used in product life cycle theory.
BCG matrix is often used to prioritize which products within company product mix
get more funding and attention.
The BCG matrix model is a portfolio planning model developed by Bruce
Henderson of the Boston Consulting Group in the early 1970's.
The BCG model is based on classification of products (and implicitly also company
business units) into four categories based on combinations of market growth and
market share relative to the largest competitor.
Placing products in the BCG matrix results in 4 categories in a portfolio of a
company:
BCG STARS (high growth, high market share)
- Stars are defined by having high market share in a growing market.
- Stars are the leaders in the business but still need a lot of support for promotion a
placement.
- If market share is kept, Stars are likely to grow into cash cows.
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BCG QUESTION MARKS (high growth, low market share)
- These products are in growing markets but have low market share.
- Question marks are essentially new products where buyers have yet to discover
them.
- The marketing strategy is to get markets to adopt these products.
- Question marks have high demands and low returns due to low market share.
- These products need to increase their market share quickly or they become dogs.
- The best way to handle Question marks is to either invest heavily in them to gain
market share or to sell them.
BCG CASH COWS (low growth, high market share)
- Cash cows are in a position of high market share in a mature market.
- If competitive advantage has been achieved, cash cows have high profit margins
and generate a lot of cash flow.
- Because of the low growth, promotion and placement investments are low.
- Investments into supporting infrastructure can improve efficiency and increase
cash flow more.
- Cash cows are the products that businesses strive for.

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BCG DOGS (low growth, low market share)
- Dogs are in low growth markets and have low market share.
- Dogs should be avoided and minimized.
- Expensive turn-around plans usually do not help.
FIG. 16: BCG MATRIX ILLUSTRATION

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IV. GRAND STRATEGY MATRIX
FIG. 17: GRAND STRATEGY MATRIX
Global Excellence falls under Quadrant 2 in GRAND STRATEGY base on data
generated in BCG MATRIX computation.

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QUADRANT 2 has the following recommended strategies
Market Development - Introducing present products or services into new geographic
area.
Market Penetration - Seeking increased market share for present products or services in
present markets through greater marketing efforts.
Product Development - Seeking increased sales by improving present products or services
or developing new ones.
Horizontal Integration - Adding new, unrelated products or services for present customers
Liquidation - Selling all of a company’s assets, in parts, for their tangible worth
Divestiture - Selling a division or part of an organization
Grand Strategy Matrix is based on two evaluative dimensions: competitive
position and market growth. Appropriate strategies for an organization to consider
are listed in sequential order of attractiveness in each quadrant of the matrix (David,
2007).
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Firms located in Quadrant I of the Grand Strategy Matrix have a strong
competitive position in a rapid growth industry. These firms should concentrate
continuously on market penetration, market development, and product development
strategies. When a Quadrant I organization has excessive resources, then backward,
forward, or horizontal integration may be effective strategies. When a Quadrant I
firm is too heavily committed to a single product, then concentric diversification
may reduce the risks associated with a narrow product line.
Firms positioned in Quadrant II have a weak competitive position in a rapid
growth industry and they need to evaluate their present position to the marketplace.
Although their industry is growing they are unable to compete effectively and need
to determine the firm's ineffectiveness and the way to improve its competitiveness.
Quadrant II firms should firstly apply intensive strategies (market penetration,
market development, product development). However, if the firm is lacking a
distinctive competence or competitive advantage, then horizontal integration is
often a desirable alternative. As a last resort, divestiture or liquidation should be
considered.
Quadrant III organizations have a weak competitive position in slow-
growth industries. These firms must quickly make some drastic changes to avoid
further demise and possible liquidation. Extensive cost and retrenchment should be
pursued first. Other options for Quadrant III businesses are divestiture or
liquidation.
Finally, Quadrant IV businesses have a strong competitive position but are

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in a slow growth industry. These firms have strength to launch diversified programs
into more promising growth areas. They can pursue concentric, horizontal, or
conglomerate diversification successfully.
V. TOWS MATRIX
TABLE 17: TOWS MATRIX

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TOWS Analysis is an effective way of combining a) internal strengths with
external opportunities and threats, and b) internal weaknesses with external
opportunities and threats to develop a strategy.
To carry out a TOWS Analysis, consider the following combinations:
FIG.18 TOWS MATRIX ILLUSTRATION
Strengths/Opportunities:
Consider all strengths one by one listed in the SWOT Analysis with each
opportunity to determine how each internal strength can help you capitalize on each
external opportunity.
Strength/Threats:
Consider all strengths one by one listed in the SWOT Analysis with each
threat to determine how each internal strength can help you avoid every external
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threat.
Weaknesses/Opportunities:
Consider all weaknesses one by one listed in the SWOT Analysis with each
opportunity to determine how each internal weakness can be eliminated by using
each external opportunity.
Weaknesses/Threats:
Consider all weaknesses one by one listed in the SWOT Analysis with each
threat to determine both can be avoided.

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2. (QSPM) EVALUATION STAGE
TABLE 18: QSPM MATRIX

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JOINT VENTURE has the highest score among the strategies generated.
Joint Venture - two or more companies form a temporary partnership or consortium for
purpose of capitalizing on some opportunity.
A QSPM uses input information from Stage 1 to objectively evaluate
feasible alternative strategies identified in Stage 2. A QSPM reveals the relative
attractiveness of alternative strategies and thus provides objective basis for selecting
specific strategies. This technique allows top managers to assess alternative
strategies objectively based on a firm’s internal strengths/weaknesses and external
opportunities/threats (David, 1986).
In QSPM, left column consists of key external and internal factors from
Stage 1, and the top row includes feasible alternative strategies from Stage 2.
Specifically, the left column of a QSPM includes information obtained directly
from the EFE Matrix and IFE Matrix. In a column adjacent to the critical success
factors, the respective weights received by each factor in the EFE Matrix and the
IFE Matrix are recorded. The top row of a QSPM includes alternative strategies
derived from the SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and
Grand Strategy Matrix. These matching tools usually generate similar feasible
alternatives (David, 2007). QSPM determines best strategy to the firms by
calculating weights, attractiveness scores, total attractiveness scores and sum total
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attractiveness scores of the alternative strategies in the QSPM table. Weights of the
internal and external factors are directly transferred from IFE and EFE tables in
Stage 2. Attractiveness Scores (AS) are defined as numerical values - 1 (not
attractive), 2 (somewhat attractive), 3 (reasonably attractive), and 4 (highly
attractive) - that indicate the relative attractiveness of each strategy in a given set of
alternatives. Total Attractiveness Scores are defined as the product of multiplying
the weights by the Attractiveness Scores in each row. Total Attractiveness Scores
indicate the relative attractiveness of each alternative strategy, considering only the
impact of the adjacent external or internal critical success factor. The higher the
Total Attractiveness Score, the more attractive the strategic alternative is. Total
Attractiveness Score is computed by adding Total Attractiveness Scores in each
strategy column of the QSPM. The Sum Total Attractiveness Scores reveal most
attractive strategy in each set of alternatives. Higher scores indicate more attractive
strategies (David, 2007).

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4. SUMMARY OF ALL MATRICES
TABLE 19: SUMMARY OF ALL MATRICES
STRATEGY OPTIONS TOWS SPACE IEM GSM TOTAL
Integration Strategies
1. Forward 0
2. Backward 0
3. Horizontal 1 1 2
Intensive Strategies
4. Market Penetration 1 1 1 3
5. Market Development 1 1
6. Product Development 1 1 1 3
Diversification Strategy
7. Concentrentic 1 1
8. Conglomerate 0
9. Horizontal 0
Defensive
10. Joint Venture 3 1 4
11. Retrenchment 1 1
12. Divestiture 1 1 1
13. Liquidation 1 1 1
Summary of the matrices are all based on the previous tools used in strategy
formulation stage, counting the number of possible strategies that can be used in the
company.
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V. STRATEGIC OBJECTIVES AND RECOMMENDATIONS
A. Critique of the Current Vision and Mission Statement
TABLE 20: CRITIQUE OF THE CURRENT VISION AND MISSION
Critique of the Current Vision and Mission

Essential Components Present (Y/N) Inclusive Statement
3. 1.Customers Y Hospitality Industry
4. 2. Products or Y Manpower and Training
Services
5. 3. Markets Y Locally and worldwide
4. Technology N Not mentioned need to add
6. 5. Concerns for Y Targets operations
survival, growth worldwide
and profitability
7. 6. Philosophy Y Developing and producing
socially responsible
employees, skilled
workers, managers and
leaders
8. 7. Self-Concept Y Quality Service/Quality
People
“Do what we teach”
9. 8. Concern for public N Not mentioned, need to
image add
9. Concern for employees Y Nurture and cultivate
employees
B. Recommendation of Revised Vision Mission Statements
VISION
GLOBAL envisions itself to be the premier source for the delivery of quality services with
quality manpower, quality training (4) with updated technology integrations and
professional certification that serves the needs of hospitality industry and other industries
locally and worldwide.

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MISSION
GLOBAL is to nurture, cultivate and advocate for creating, developing and producing
socially responsible employees, skilled workers, managers and leaders (8) that will help
the nation in producing more job opportunities locally and worldwide. Global adhere with
the principle of “do what we teach”.
C. Recommended Business and Organizational Strategies
1. Increase Equity and focus on stability
Global Excellence needs to increase its equity by finding an investor. At least 2 million
pesos is needed for it to be able to efficiently operate. A company without sufficient funds
will not be able to expand or even conduct activities that needs funding. Defensive Strategy
with Strategic Alliances will be used to increase stability in the first year.
2. Market Penetration
Upon achieving stability for the first year, Global needs to penetrate the market to increase
its shares. Increasing sales revenue may eventually lead to more income in the future.
Global Excellence will aim for a 20% market share in the future provided that it has already
been stabilized. Target for achieving the said market share would be 2015. By that time
Global Excellence has already expanded its operation not just in Metro Manila but all so
near provincial areas.

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3. Improve Collection Cycle
Improving Collection Cycle by at least 30 days collection period may improve current
ratio. Earning Income in Cash would be valuable for the operation of the company. It will
be more efficient to operate with cash than earning collectibles alone.
4. Joint Venture (strategic alliance)
Global Excellence needs to find an alliance to help its financial status and gain more clients
and deployment. Interlink may be a suitable partner because of the relationship of the
owners and nature of business.
5. Improve Services and Find Possible Untapped Market
The Company needs to continuously improve its services and find a potential market that is
not saturated. Unsaturated Market can result to a more profitable business.
6. Buying of Competitor to increase Market Share
Buying of competitors to increase market share may be possible in the future after the
company has stabilized and gain enough income to expand. After 2013 which is the last
year for projected strategies, Global Excellence will start to look for potential companies
(small) which can be bought in order to gain more market share. A market research and
feasibility study will be conducted first before pursuing the said strategy.
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DETAILED ACTION PLAN
Developing an Action Plan
1. Actions plans specify the actions needed to address each of the top organizational issues
and to reach each of the associated goals, who will complete each action and according to
what timeline.
2. Develop an overall, top-level action plan that depicts how each strategic goal will be
reached.
3. Develop an action plan for each major function in the organization, e.g., marketing,
development, finance, personnel, and for each program/service, etc. These plans, in total,
should depict how the overall action plan will be implemented. In each action plan, specify
the relationship of the action plan to the organization's overall, top-level action plan.
4. Ensure each manager (and, ideally each employee) has an action plan that contributes to
the overall. These plans, in total, should depict how the action plans of the major functions
will be implemented. Again, specify the relationship of these action plan to the
organization's overall, top-level action plan.
5. The format of the action plan depends on the nature and needs of the organization. The
plan for the organization, each major function, each manager and each employee, might
specify:
a) The goal(s) that are to be accomplished
b) How each goal contributes to the organization's overall strategic goals

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c) What specific results (or objectives) much be accomplished that, in total, reach the goal
of the organization
d) How those results will be achieved
e) When the results will be achieved (or timelines for each objective)
In order for the company to implement its strategies, the proponent created an Action Plan
to realize its vision and mission statement.
Strategies chosen needs to be carefully implemented in different departments and set a
specific goal what to reach. A timetable is also presented to have a good idea when the
strategies should be implemented and achieved. A Three-year action plan has been created
as well to successfully plan ahead and achieve greater outcomes. A budget is also being
presented and the unit responsible for implementing such strategy for clear understanding
of each role and responsibilities.

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TABLE 21.1: ACTION PLAN

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cont.

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cont.

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D. Balanced Score Card
TABLE 22.1: BALANCED SCORECARD

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TABLE 22.2: BALANCED SCORECARD

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Balanced Scorecard is a performance management framework used by strategic decision
makers to make the right decisions about their business. Balanced scorecard not only a set
of strategic goals; it is also a method for monitoring progress toward organization's
strategic goals.
The balanced scorecard method is a management technique designed to provide a view of
an organization from both internal and external perspective. Before we get to the details,
let us draw your attention to some other strategic management models, such as SWOT
analysis, IFE matrix, EFE matrix, BCG matrix, and SPACE matrix.
Balanced scorecard views organization from four perspectives:
 Customer perspective,
 Internal-business processes,
 Learning and growth,
 Financials.
The first step in the balance scorecard framework is to analyze these four
perspectives. However, balanced scorecard does not end there, it goes further.
Balanced scorecard also develops metrics and methods for collecting data to
calculate them. After data is collected and metrics calculated, each of the four
perspectives can be analyzed relative to each other.

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FIG. 18:BALANCE SCORECARD ILLUSTRATION
Balanced scorecard provides feedback around both the internal business processes and
external outcomes in order to continuously improve strategic performance and results.
Perspective 1: Customer
Customers are the ones who pay the bills; therefore, it is important to keep them satisfied
so that they not only come back but also spread the word and bring new customers too.
Every business should be constantly asking the question:
"How well are we meeting the needs of our customers, and how can we make them more
satisfied?"
Balanced scorecard brings this question into action items. Balanced scorecard includes the
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question, methods for how we measure results, and an analysis of how our results meet our
goals. This is an example of how the Customer perspective can be handled in the balance
scorecard framework:
Perspective 2: Internal-business process
After defining our customer and knowing how to make him happy, we also need to focus
on our processes that get us to the customer. We ask the question:
"How do our internal processes function to efficiently deliver products and services, and
how can we improve our efficiency?"
Perspective 3: Learning and growth
Innovation and learning is the key ingredient needed for being ahead of the competition.
Employees need to keep educating themselves and the company needs to provide them the
right tools and motivation. Strategic planners need to ask the question:
"How well are we positioned to ensure that goals are met in the future?"
Everything is about the bottom line. A business needs to align its priorities with activities
that bring in revenue, and it has to be done in an efficient way. Decision makers need to ask
the question:
"How well are our finances managed to achieve our mission?"

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E. Financial Projections
TABLE 23.1: FINANCIAL PROJECTION (COMPARATIVE INCOME STATEMENT)
It is expected that there will still be losses in the first year (2011) a slight increase of
income for the 2nd year and major increase of income for the 3rd year.
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TABLE 23.2: FINANCIAL PROJECTION (COMPARATIVE STATEMENT OF CASH FLOW)
An increase of cash is expected after three years (2013).

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TABLE 23.3: FINANCIAL PROJECTION COMPARATIVE BALANCE SHEET

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In 2010 the company is in deficit, after investing 2 million pesos on the nest year it
operated efficiently and was able to finance the operations successfully. 2013 showed a
positive outcome increasing equity.
PROJECTED RATIOS
TABLE 24: PROJECTED RATIO (LIQUIDITY RATIO)
Current ratio improves as the year progresses. Target of 2.0 is expected to be achieved
in the year 2013.

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TABLE 24.2: PROJECTED RATIO (ACTIVITY RATIOS)
Improvement of collection period gradually decreased from 377 to 217 days for the
following year is expected. Reducing by 100 days of collection period can be shown as
the year progresses. Although 150 days on 2013 is the projected result the goal is
pretty much realistic considering it came from 377 days collection period on 2010.
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TABLE 24.3: PROJECTED RATIO (DEBT RATIO)
A good debt ratio is projected on 2013 near the industry standard of .5. It can be seen
the company improves as the year progresses from 1.29 down to 0.44.
TABLE 24.4: PROJECTED RATIO (PROFITABILITY RATIOS)
The company becomes profitable on the following year (2011) and substantially
increasing it’s profitability on 2013 by 78%.

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TABLE 24.5: PROJECTED RATIO OPERATING PROFIT RATIO)
Operating profit margin becomes positive on 2012 and becoming more profitable on
2013 with 46% operating profit margin.
TABLE 24.6: RETURN OF INVESTMENT
Return of Investment is presented to show when will you be able to recover your
investment or gain income from it. 2010 shows a negative ROI but an increase of
equity on 2011 by investing 2 million pesos (refer to balance sheet) shows 0% losses.
By 2012 it had an ROI of 31% and a substantial increase of 112% on 2013.

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NET PRESENT VALUE
In finance, the net present value (NPV) or net present worth (NPW) of a time
series of cash flows, both incoming and outgoing, is defined as the sum of the
present values (PVs) of the individual cash flows of the same entity. In the case
when all future cash flows are incoming (such as coupons and principal of a bond)
and the only outflow of cash is the purchase price, the NPV is simply the PV of
future cash flows minus the purchase price (which is its own PV). NPV is a central
tool in discounted cash flow (DCF) analysis, and is a standard method for using the
time value of money to appraise long-term projects. Used for capital budgeting, and
widely throughout economics, finance, and accounting, it measures the excess or
shortfall of cash flows, in present value terms, once financing charges are met.
The NPV of a sequence of cash flows takes as input the cash flows and a discount
rate or discount curve and outputs a price; the converse process in DCF analysis -
taking a sequence of cash flows and a price as input and inferring as output a
discount rate (the discount rate which would yield the given price as NPV) - is
called the yield, and is more widely used in bond trading.

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Each cash inflow/outflow is discounted back to its present value (PV). Then they
are summed. Therefore NPV is the sum of all terms,
where
t - the time of the cash flow
i - the discount rate (the rate of return that could be earned on an investment
in the financial markets with similar risk.); the opportunity cost of capital
Rt - the net cash flow (the amount of cash, inflow minus outflow) at time t.
For educational purposes, R0 is commonly placed to the left of the sum to
emphasize its role as (minus) the investment.
NPV is an indicator of how much value an investment or project adds to the firm.
With a particular project, if Rt is a positive value, the project is in the status of
discounted cash inflow in the time of t. If Rt is a negative value, the project is in the
status of discounted cash outflow in the time of t. Appropriately risked projects with
a positive NPV could be accepted. This does not necessarily mean that they should
be undertaken since NPV at the cost of capital may not account for opportunity
cost, i.e. comparison with other available investments. In financial theory, if there is
a choice between two mutually exclusive alternatives, the one yielding the higher
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NPV should be selected.
TABLE 25: NPV IN DECISION MAKING
TABLE 26: NPV RESULT
The year 2010 has 500,000 initial investment while the succeeding years were derived
from Statement of Cash Flow (NET INCOME+Depreciation); refer to projected
financial statements. NET PRESENT VALUE FORMULA was created in Microsoft
Excel following the correct NPV standard formula with 10% discounted rate
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VI. Strategy Evaluation and Control
The Management Team will see to it, that all strategies proposed shall be implemented by
the employees. By guiding and monitoring them, Global Excellence will be able to
effectively implement all proposed strategy, thus creating a new operations manual, which
will be the basis of implementing standard operating procedures.
VII. Definition of Terms
BMBE LAW - Republic Act (RA) 9178 is the Barangay Micro Business Enterprises
(BMBE) Law, an act aimed at promoting the establishment of BMBEs, providing
incentives and benefits
Client – the customer servicing by a manpower agency
DO 18-02 – License given by DOLE to service contractors
Fly by Night – A company that illegally operates as a manpower agency
Manpower – Power in terms of the workers available to a particular group or required for a
particular task
Manpower Agency – An agency which provides manopower requirement
Outsourcing -is an arrangement in which one company provides services for another
company that could also be or usually have been provided in-house
PRPA LICENSE - Private Recruitment and Placement Agency) that legally allows firms
to recruit and place people for a job with a fee
Senate Bill 922 – a bill passed by Loren Legarda to abolished contractualization

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REFERENCES
Books
David, F. (2007) Strategic Management: Concepts and Cases (13th Edition) place
and publisher
Davis, J, (2007) Measuring Marketing place and publisher
Harrison, A. (2009), Strategic Management by Harrison (12th Edition) place and
publisher
Kotler, P. (2009) Principles of Marketing by Philip Kotler (10th edition) place and
publisher
Internet
Alcantara The Labor Workforce (2010) www. Sunstar.com
Atty. Melgar, M., Manpower Cooperatives http://www.thenewstoday.info/2006/
Business Statistics (2007-2010)www.dti.gov.ph
Future workforce and statistics http://www.time.com/time/magazine/article
Iview www.sec.gov.ph
Knowing your rughts (2010) http://apples-pie.com/...
Labor Code of the Philippines(2011) www.dole.gov.ph/labor_codes.php
Laws in the USA (2009) www.laborlaw.usc-law.org
Manpower numbers and statistics (2010) pinoyoverseas.net
National Statistics Office (2007-2010) www.census.gov.ph/

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APPENDICES

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Colegio de San Juan de Letran Manila 1

Global Excellence Human Resources Academy, Inc. (Global) is engaged in the

of individuals or companies in the supply of manpower, human resources development,

Employment and the Local Governments of Quezon City.

Global can be considered as one of the country’s prime manpower development,

training, consultancy and outsourcing services firms. It is a totally Filipino owned

corporation operated by people honed in professionalism, exposure and experience in

dealing with people of different cultures, characters and personalities.

Recently Global Excellence established another company with a separate identity

on hospitality management trainings and computer tutorials. TESDA accreditation for

Excellent Choice Training Center is currently in process to further boost its

Global is an advocate of quality training, quality employees, quality management

of endeavors as demand arises.

deployment of the employees to their respective assigned workplace. Applicants are

thoroughly screened before being accepted or hired on the following areas:

Drug Use History;

Agreement to drug testing policy;

The Background Investigation includes the complete medical history, complete

physical examination, and standard laboratory examinations such as CBC, routine

2. Profile of Key Officers

rounded executive in all facets of hotel operations. He came to be noted as an “Award

He has been Consultant to different companies and personages to the extent of

Training and Workshop and The Power of Management in Control Seminar.

Ms. Priscila Y. Carabeo, the President of Global Excellence Human Resource

experience in importation, exportation, cargo handling and forwarding. She is a graduate of

Philippine Marine Institute in Custom Administration. Presently she is the Operations

Importation and Brokers Association, Inc. and is a registered member-representative to

c. The Vice President for HR/Marketing

Mr. Aristotle C. Chico, is currently the Vice-President of Human Resources

Development in Global Excellence and Training Director in Excellent Choice Training

the Philippines. He is currently finishing his Masters in Business Administration at Letran

d. The Vice President of Management Information System

Mr. Adonis Chico is the Vice – President of Management Information System.

A product of AMA Computer University (Bachelor of Science in Computer Science) , Mr.

Human Resources Database Software.

e. The Vice President for Operations

Mr. Abraham C. Chico is a product of AMA Computer College (Bachelor of

marketing instruments and strategies for Global clients.

B. Background of the Paper

Global Excellence Human Resources Academy, Inc. is in the industry of Job

Labor and Employment promulgated Article 106 stating;

Art. 106. Contractor or subcontractor. Whenever an employer enters into

The Secretary of Labor and Employment may, by appropriate regulations,

There is "labor-only" contracting where the person supplying workers to an

labor only contracting from Job Contracting which is legal.

Recruitment/Outsourcing Agencies earn profit.

a. Job Contracting vs. Private Recruitment Agencies

Job Contractors earn differently from Private Recruitment Agencies. As stated

conditioning, construction of buildings etc..

Fly-by-night agencies became a plague in the industry and as a result, licensed

Private Recruitment Agencies and Licensed Contractors.

b. Manpower Cooperative vs. PRPAs/Job Contractors

The practices of Manpower Cooperatives also pose a major problem in terms of

competition in the Industry. Unlike Corporations, these Cooperatives have a huge

Contractors (PALSCON), of which Global Excellence is a member, opposes Manpower

be costly to the client because these cooperatives circumvent the law.

the authority and capacity to supply workers to a client firm.”

measures protecting workers, and not from manpower cooperatives.”

employees and as such are entitled to corresponding damages, amounting to at least