Strategic Management Plan For Sysnet Integrators Inc.: Man 120 - 2 Business Policy

STRATEGIC MANAGEMENT PLAN FOR SYSNET INTEGRATORS INC.
1. Background of the Company

1.1. Core Business Function
Sysnet Integrators Inc. is a service and solutions provider for tele-

communications companies. It has a strong presence in the Philippines and
completed several projects in different parts of the world, namely Singapore, Hong
Kong, Japan, Italy, USA, and United Kingdom. To date, the company commissioned
more than 2,000 independent BTS installations and more than 90,000 ports of
Computer Telephony projects as value added services for mobile, fixed and next
generation networks.
PRODUCTS AND SERVICES
VAS/CTI Solutions
 Network
Ultima ( Multi-interface, Multi-rating Service Creation Platform )

A system designed for telecom operators that is capable of integrating several
services such as USSD, CAMEL, Loopback, SMS, etc. into a single platform.
ULTIMA is cost efficient and quickens operator's time to market.
MVNO ( Mobile Virtual Network Operator )

MVNO is a complete mobile and/or fixedline system for "switchless" operators
who aim to build a network and customer base of their own.
CAMEL
Camel converters are carrier grade signaling servers that support conversion of
wide array of signaling protocols available in the telecommunications industry today.
MAN 120 – 2 BUSINESS POLICY
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 VoIP
SMART Enterprise (VoIP)

Smart Enterprise is a VOIP solution intended for small, medium, to large
corporations. It can run conveniently on a prepaid platform and converges the GSM
and WLAN technologies in one.
Prepaid Wi-Fi BIZ

Prepaid Wi-Fi BIZ is your all- in- one customized Wi-Fi service and Wi-Fi access.
With the Prepaid Wi-Fi BIZ, you can now start enjoying the privileges of customizing
your Internet services to match your business name and branding.
 Voice
VoiceMail
SysNet Voicemail is a value added service designed for both fixed and mobile
phone subscribers. It is very multi functional - it can capture messages of callers,
take calls automatically as the phone rings, alert users if they have pending
messages to read, prompt users if mailbox is full, and a lot more.
Interactive Voice Response System ( IVRS )

Interactive Voice Response System is a SysNet solution that enables
subscribers to communicate with your Company quickly! Customer service is
improved and "eternal waiting and ringing" are almost completely eliminated.
Vani-Txt alpha numeric switching

Vani-Txt - a fun and unique VAS that allows subscribers to stay anonymous
as they use their mobile phones. Enterprises are also a target since Vani-Txt
enables them to use their branding and/ or product name as their contact number.
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Simphoni
A GSM - based Payphone that enables users to access its service through the use
of SIMPHONI SIM CARDS. This introduces the new way for mobile users to create,
edit, receive and send SMS through payphones.
 Messaging
USSD
The USSD Gateway Server provides an alternative for subscribers to request
and obtain information to and from the Network. With USSD, response time is faster
than the traditional SMS message delivery.
Missed Call Text Alert

A value added service that alerts mobile subscribers of calls that had occurred
while the unit was switched off, out of coverage area, or busy. The message is sent
via SMS to the subscribers.
Welcome Roaming Message

Welcome Roaming Message is a value added service intended for roaming
subscribers. The application sends pre-defined welcome, information, and
advertisement message/s via SMS, and may be set depending on the Network's
time preferences.
iSMS ( Intelligent Short Messaging System )

iSMS is a compact mobile messaging system that provides the features of a
true Short Messaging System Controller (SMSC), but is more cost effective than
one. It has the capacity to deliver huge transaction of messages, and can be
customized based on the Operator's processes.
3
Fixedline SMS
Fixedline SMS allows landline subscribers to send and receive SMS through
the use of a Fixedline SMS terminal. The FSMS system offers many features and
provides the same ease (like using a real mobile phone) when implemented in a
landline terminal.
SMS Recharge System

The SMS recharge System is a complete, flexible, and robust prepaid account
credit recharging system. It provides the subscriber several means of credit
recharging and several different avenues to accomplish the task. This may be done
via SMS, USSD, IVRS, or through a secure web portal.
 Services
Cellular Base Station Installation (Indoor equipment)

Rectifiers and Batteries
Cell Site RF Equipment
Base Station Antenna
Cables and Accessories
Grounding System (Microwave Transmission Installation)
Antenna
Multiplexer and RF Equipment
Testing and Commissioning of Cell site equipment
Training Services
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2. Organizational Structure
2.1. Functional Areas
5
3. Financial Data
SYSNET Integrators Inc.

Statement of Financial Position
6

Statement of Comprehensive Income
7

Statement of Cash Flow
8

Statement of Changes in Equity
9
4. Vision, Mission and Goals of the Company

4.1. Present
Our Mission
"We provide the best package technologies of the highest quality at the most
competitive prices and quickest time. From system analysis, design and
installation to after sales services, we are the trusted partner of our satisfied and
loyal customers."
Our Vision
"We will be the regional leader in the development of customized value added
services and globally competitive solutions for fixedline, mobile and next
generation networks."
4.2. Analysis / Critique

Table 1
Elements of Mission Statement
Nine Elements
1. Description of products and

services
2. Markets
3. Customers 
4. Values/Philosophy
5. Self-Concept 
6. Technology
7. Concern for survival, profitability
& growth
8. Concern for public image 
9. Concern for employees
The following are the list of the elements that we found out on the company’s
Mission Statement.
Our Mission
"We provide the best package technologies of the highest quality at the most
competitive prices and quickest time 5. From system analysis, design and installation
to after sales services1, we are the trusted partner of our satisfied and loyal
customers3."
10
4.3. Revised Vision, Mission and Goals or Status Quo
Revised Vision
“To be acknowledged as the premier IT service and solutions partner offering
globally competitive technology solutions of fixedline, mobile and next generation
networks for our customers.”
Revised Mission
“To be the leading IT solutions provider in the Philippines specializing in
development and support of information management by delivering best package of
technologies of the highest quality through efficient program and system installations
at most competitive prices and quickest time and superior after sales support, we are
the trusted partner of sustainable and satisfied customers.”
5. Input Tools
5.1. Environmental Scanning
5.1.1. External Environment
5.1.1.1. Opportunities
1. Existence of ASEAN Integration
SYSNET has a strong presence in the Philippines and completed

several projects in different parts of the world, namely Singapore, Hong Kong,
Japan, Italy, USA, and United Kingdom through international connections,
they may attract prospective clients all over the world.
2. Increasing demand for system/program installations for commercial

establishments
Since there are vast commercial establishments in different parts of our

country, having increase in employment rate for about 93.6% according to
Philippine Statistics Authority, the need for a system and program installations
for them to make their work faster is also increasing.
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3. Annual release of upgraded operating systems
When a client’s systems of their computers have enhanced

specifications like having upgrade windows operating systems, this is an
opportunity for SYSNET to make their work easier because of advancements
on their technologies they are using.
4. Increasing demand for WIFI installations
Philippines belong to the Third World Country, relative to this, since we

are currently in the modern country, we are also have modern technologies
that we are actually using for example having WIFIs. The demand for using
internets for personal or business use is increasing thus proper installations
by service and solutions provider like SYSNET is in demand also.
5. Increasing number of variety of suppliers that offers high-end

technologies that can be used by SYSNET
Suppliers of gadgets or technologies that will be used by SYSNET on

their operations also has a variety. SYSNET would prefer high-end
technologies at favorable cost or price to be used on their operations.
5.1.1.2. Threats
1. The alleged entrance of new tele-communications company—Telstra.
Once Telstra takes over the tele-communication industry in the

Philippines, SMART—the regular customer of Sysnet Integrators Inc. will not
be that profitable anymore and since they are somewhat tied-up with each
other, then the negative change will also reflect on Sysnet’s operation.
2. An average of 5% increase on integrator companies that offers fast

customer service
New entrants are a competition for the company.

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3. Bargaining power of customers on availing discounts and promos

offered by SYSNET
Since SMART is one of their regular customers, Sysnet Integrators Inc.

gives discount and privileges to them that makes their profit lesser than
expected.
4. High prices set by suppliers
If the suppliers increase the prices of the things crucially needed by the
company, then their expenses will increase. Even though, they cannot
increase their service fee for the reason that if they increase their prices, then
their regular customers might find other suppliers.
5. Unanticipated system or program hackings
Any hackers breech inside a network and steal passwords, which will
be used or sold, perform industrial espionage, or commit simple misuse. They
create viruses and worms that have code fragments and attach the, to other
“programs” or “machines” and attempt to shut down networks by flooding
them with massive amounts bogus traffic. On the other hand, people who do
not belong to companies can also find themselves in danger. Hackers can find
clients or customer information, from a company’s business.
5.1.2. Internal Environment

5.1.2.1. Strengths
1. Provides best package of technologies
They provide the best package technologies of the highest quality at

quickest time.
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2. Strong and trusted partner of Digital Middle East, APEX Frontier Ltd.,
Sysnet international
The firm is a trusted partner not only to its satisfied and loyal
customers but also to its international partners.
3. Established for about 20 years of its existence
Since it was registered in SEC on October 20, 1995, for about 20 years
of its existence it is obviously stable and has continuing operations.
4. Big influence on the market (about 7 out of 10 projects are being approved)
Since they have big and well-known clients in the country like SMART,
Globe, PLDT, Nokia, Alcatel, GMA 7, Studio 23 etc, they have established big
influence on other prospective clients.
5. With 80% regular clients
SMART is one of the regular customers of Sysnet Integrators Inc.

which makes their operation continuous.
5.1.2.2 Weaknesses
1. It has no other branch in the Philippines
This signifies that Sysnet Integrators Inc. will incur more expenses in
giving service to customers not within Metro Manila.
2. Limited to 72 Personnels
Sysnet Integrators Inc. only has 72 employees which cause difficulties

in managing or stabilizing their operations when their customers need them at
the same time.
3. Increase in cost of sales levels by 55.32%
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Since this company is using modern pieces of technology to further

survive and the continuous demand of its clients, it is inevitable that they are
incurring high cost of sales as presented on its Statement of Income.
4. Increase in administrative expenses by 18.23%
15
From year 2011 to 2014 on its Statement of Income it is visible that

they have various fees of different categories that lead to increasing
administrative expenses.
5. Decrease in net income by 355.35% from 2010-2014 .
16
As presented on its Statement of Income it shows net loss on years

2011 and 2014.
5.2 EFE Matrix

Table 2
EFE-External Factor Evaluation Matrix
Weighted
Key External Factors Weight Rating Score
OPPORTUNITIES
1 Existence of ASEAN Integration 0.05 2.00 0.10
Increasing demand for system/program installations for commercial
2 establishments 0.10 4.00 0.40
3 Annual release of upgraded operating systems 0.10 3.00 0.30
4 Increasing demand for WIFI installations 0.15 4.00 0.60
Increasing number of variety of suppliers that offers high-end technologies
5 that can be used by SYSNET 0.10 3.00 0.30
THREATS
1 The alleged entrance of new tele-communications company—Telstra. 0.15 4.00 0.60

An average of 5% increase on integrator companies that offers fast
2 customer service 0.05 2.00 0.10
Bargaining power of customers on availing discounts and promos offered
3 by SYSNET 0.10 3.00 0.30
4 High prices set by suppliers 0.10 4.00 0.40
5 Unanticipated system or program hackings 0.10 4.00 0.40
TOTAL 1.00 3.50
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This table 2 shows the External Factor Evaluation Matrix, these are the
opportunities and threats of the company.
The second column illustrates the distribution of its weight according to its
importance with a total of 100%. And it shows that the largest percentage goes to the
opportunity no.4 (Increasing demand for WIFI installations) and threat no.1 (The
alleged entrance of new tele-communications company—Telstra, that both have
15%.
On the other hand, third column shows the ratings of the given external
factors, given 1 as poor while 4 as the superior. If you could see on the table above
most of the factors have given a rating of 4, this means that each of it has an impact
on the company.
The last column is the product of weight and the ratings of the factors. The
result, 3.5 is the total weighted score of the EFE matrix.
5.3 IFE Matrix

Table 3
IFE-Internal Factor Evaluation Matrix
Weighted
Key Internal Factors Weight Rating Score
STRENGTHS
1 Provides the best package of technologies 0.1500 4.00 0.60
Strong and trusted partner of Digital Middle East, APEX
2 Frontier Ltd., Sysnet international 0.1500 4.00 0.60
3 Established for about 20 years of its existence 0.1000 4.00 0.40
Big influence on the market (about 7 out of 10 projects are
4 being approved) 0.0500 3.00 0.15
5 With 80% regular clients 0.0500 3.00 0.15
WEAKNESSES
1 It has no other branch in the Philippines 0.1000 1.00 0.10
2 Limited to 72 Personnels 0.1500 1.00 0.15
3 Increase in cost of sales levels by 55.32% 0.0500 2.00 0.10
4 Increase in administrative expenses by 18.23% 0.0500 2.00 0.10
5 Decrease in net income by 355.35% from 2010-2014. 0.1500 1.00 0.15
TOTAL 1.0000 2.50
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The table 3 above shows the Internal Factor Evaluation which is the strength
and weaknesses of the company.
The second column shows the distribution of its weight according to its
importance with a total of 100%. It illustrates that majority of the weight which is 15%
has both 2 factors on the strength and the weaknesses, these are the following for
the strength: Provides the best package of technologies and Strong and trusted
partner of Digital Middle East, APEX Frontier Ltd., Sysnet international. For the
weaknesses: Limited to 72 Personnels and Decrease in net income by 355.35%
from 2010-2014.
On the, third column it shows the ratings of the given external factors. For the
given Weaknesses it would be rated as 1 major weakness, 2 minor weaknesses
while for the given strengths, 3 as minor strengths, 4 as major strength. On the table
above the ratings are given and fairly the way it has to be based on the effect of it to
the company.
The last column is the product of weight and the ratings of the factors. The
result, 2.5 is the total weighted score of the IFE matrix.
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5.4 CPM
Table 3
CPM-Competitor Profile Matrix
SYSNET Global Link
NEC Philippines Technologist
Integrators Exhibition
Inc. Specialist Inc
Incorporated Specialist Inc
CRITICAL SUCCESS FACTORS Weight
Weighted Weighted Weighted Weighted
Rating Rating Rating Rating
Score Score Score Score
Technological Equipment
1 Used 0.3000 2.00 0.60 4.00 1.20 1.00 0.30 3.00 0.90
2 Financial Position 0.1000 1.00 0.10 3.00 0.30 2.00 0.20 4.00 0.40
3 Customer Loyalty 0.1000 4.00 0.40 3.00 0.30 1.00 0.10 2.00 0.20
Personnel Skills and
4 Abilities 0.2000 3.00 0.60 1.00 0.20 4.00 0.80 2.00 0.40
5 Product Demand 0.2000 2.00 0.40 4.00 0.80 1.00 0.20 3.00 0.60
6 Patents Earned 0.1000 1.00 0.10 2.00 0.20 4.00 0.40 3.00 0.30
TOTAL 2.20 3.00 2.00 2.80
Table 4 shows the Competitor Profile Matrix (CPM), in this we select Sysnet
Integrators Inc. major competitors, the following are Global Link Exhibitions
Specialist (GES), NEC Philippines Inc. (NEC), Technologies Specialist Inc (TSI).
The researchers rate the different companies as to the given factors and
weight it according to its affectivity in the market. Then rate it as, 1 major weakness,
2 minor weaknesses while 3 as minor strengths, 4 as major strength.
The following are the critical success factors, for technological equipment
used the SYSNET, got the second to the lowest rating among the 4 company for the
entity. Next for the financial position, SYSNET, is the lowest for the reason that the
entity’s net income in declining over the year. In terms, of the Customer Loyalty,
SYSNET has the highest rating for the entity always have regular clients. On the
other hand, for the personnel skills and abilities SYSNET has just an average rating
compared to the other for their personnel is somehow trained well and efficiently. For
the product demand as seen on the table above that SYNET rating is somehow
behind to their competitors.
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Last on the factors is the patents earned on this, it clearly shows that SYSNET has
not enough patents that have gained throughout their existence that is why it got the
lowest score.
As an overall score of the rating the ratings of the company are the
following: the highest score is the GES with 3, followed by the TSI with 2.80 then the
NEC with 2, lastly is the SYSNET which have only 2.20.
This could mean that the SYSNET Integrators Inc, must need to improve their
image to the market so they can pass through its competitors, by giving their best
through their products and services to customers.
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6. Matching Tools
6.1 TOWS Matrix
Table 4
TOWS Matrix
STRENGTHS WEAKNESSES
1) Provides the best package of 1) It has no other branch in the
technologies Philippines
2) Strong and trusted partner of 2) Limited to 72 Personnel
Digital Middle East, APEX 3) Increase in cost of sales
Frontier Ltd., SYSNET levels by 55.32%
international 4) Increase in administrative
3) Established for about 20 years of expenses by 18.23%
its existence 5) Decrease in net income by
4) Big influence on the market 355.35% from 2010-2014.
(about 7 out of 10 projects are
being approved)
5) With 80% regular clients
OPPORTUNITIES STRENGTHS- WEAKNESSES-
1) Existence of ASEAN OPPORTUNITIES OPPORTUNITIES
Integration
2) Increasing demand for  Attract new clients by offering  While the there is modernization
system/program freebies like computer peripherals in our country, they can develop
installations for upon system installations. their services by hiring more
commercial (S3,S4,S5,O2,O4,O5) trained and younger employees
establishments  SYSNET should assess which that can troubleshoot and install
3) Annual release of employees should be laid-off and in under pressure situations.
which should be retained in order to (W2, O2, O3, O4)
upgraded operating form a workforce trained to perform a  Sending remote or virtual
systems variety of operations especially with workers to work-at-home for the
4) Increasing demand for troubleshooting. (S1,O2, O3, O4) firm to save on the cost of office
WIFI installations  Advertise products and services space. (W2,W3,W4,O3)
5) Increasing number of offered through postings on Google  Decrease cost of sales level by
variety of suppliers that listings, Facebook, Twitter and acquiring low cost quality
offers high-end LinkedIn. (S2,S5,O2,O4) products that are offered by new
technologies that can  Tap into new market by affiliating with suppliers. (W3,W4, W5, O5)
be used by SYSNET the Government on installations of
Free Public Wifi. (S1,S2,S4,O1,O4)
THREATS STRENGTHS- THREATS WEAKNESSES- THREATS
1) The alleged entrance of
new tele-  Modification of cybersecurity plan  Maximize services through
communications and extend immediate assistance for addition of on-call workers.
company—Telstra. the suppression of real-time (W1,W5,T1,T2)
2) An average of 5% commission of cybercrime offenses  Add payment options through
through a computer emergency giving discounts to clients if paid
increase on integrator response team (CERT). (S1,T5) in full before the day of system
companies that offer  Negotiate with Telstra to be one of installations. (W5,T2, T3)
fast customer service. their partners in terms of installation  Hire outsourced employees by
3) Bargaining power of of WIFIs and programs. working online to enable
customers on availing (S2,S3,S4,S5,T1) companies to tap in to and
discounts and promos leverage a global knowledge
offered by SYSNET base, having access to world
4) High prices set by class capabilities.
suppliers (W2,W3,W4,T2)
5) Unanticipated system
or program hackings
22
The TOWS Matrix shows that there are various strategies that can be
implemented by SYSNET. Under Maxi-Maxi or Strengths-Opportunities there are three
strategies. Market Penetration by means of attracting new clients by offering freebies
like computer peripherals upon system installations. Retrenchment by means of
SYSNET should assess which employees should be laid-off and which should be
retained in order to form a workforce trained to perform a variety of operations
especially with troubleshooting. And Market Development by means of advertising
products and services offered through postings on Google listings, Facebook, Twitter
and LinkedIn and tapping into new market by affiliating with the Government on
installations of Free Public Wifis on different areas.
Under Maxi-Mini or Strengths-Threats there are two strategies. First Product
Development by means of modification of cybersecurity plan and extend immediate
assistance for the suppression of real-time commission of cybercrime offenses through
a computer emergency response team (CERT). And Horizontal Integration by means of
negotiating with Telstra to be one of their partners in terms of installation of WIFIs and
programs.
Under Mini-Maxi or Weakness-Opportunities there are three applicable
strategies. Market Development by means of while the there is modernization in our
country, they can develop their services by hiring more trained and younger employees
that can troubleshoot and install in under pressure situations. Second is Retrenchment
by means of sending remote or virtual workers to work-at-home for the firm to save on
the cost of office space. Lastly, Backward Integration by means of decreasing cost of
sales level by acquiring low cost quality products that are offered by new suppliers.
Last Part would be Mini-Mini or Weakness-Threats that contains three
strategies. First, Market Development by means of maximizing services through
addition of on-call workers. Forward Integration by adding payment options through
giving discounts to clients if paid in full before the day of system installations. Lastly,
Market Development by means of hiring outsourced employees by working online to
enable companies to tap in to and leverage a global knowledge base, having access to
world class capabilities.
Most strategies fall under Market Development for the entity SYSNET
Integrators Inc.
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6.2 Space Matrix

Financial Strength
Conservative Aggressive
. . . . . . . . . . . . .
. . . . . . . . . . . .
.
. . . . . . . . . . . . .
. . . . . . . . . .  . .
. . . . . . . . .  . . .
. . . . . . . X . . . . .
Competitive . . . . . . . . . . . . .
Advantage Industry Strength
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
. . . . . . . . . . . . .
Defensive Competitive
Environmental Stability
Graph 1
SPACE Matrix
INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC POSITION
FINANCIAL STRENGTH Rating Value ENVIRONMENTAL STABILITY Rating Value
1 Return on Asset 1 1 Inflation -3
2 Solvency 2 2 Technology -1
3 Liquidity 5 3 Demand Elasticity -2
4 Cash Flow 3 4 Taxation -3
Average 2.75 Average -2.25
COMPETITIVE
ADVANTAGE Rating Value INDUSTRY STRENGTH Rating Value
1 Product Quality -2 1 Barriers to Entry 5
2 Market Share -4 2 growth potential 4
3 Brand Image -4 3 Access to Financing 2
4 Service Quality -3 4 Patents Earned 3
Average -3.25 Average 3.5
Legend:
Rating: Rounded
1= Worst Values Raw Off
6= Best
X Axis 0.25 0
Y axis 0.5 1
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The graph above shows the Y-axis, consisting of Financial Strength which is
composed of factors such as: Return on Asset having a ratio of -0.17 which rated it
as 1 being the worst, Solvency having Debt Ratio of 0.93 which is unfavorable,
Liquidity with its Current Ratio of 2 which is favorable and Cash Flow with a
decrease of 39% from its Cash and cash equivalents of beginning of the year to
Cash and cash equivalents of end of the year. Environmental Stability with factors
such as: Inflation currently around 1.5, Technology rated as -1 being best since they
are modernized, Demand Elasticity since as there is demand for possible clients,
there is also increase in demand for system installations and Taxation which will also
affect it since SYSNET has incurred loss for year 2014.
And for the X-axis consisted of Competitive Advantage composed of factors
such as: Product Quality since it uses modern equipments, Market Share which is its
revenue rated as -4 since it only has 2% share compare to its competitors, Brand
Image rated as -4 which needs to improve it further and Service Quality with an
average score of -3 since they provide best package of technologies and for
Industry Strength with factors such as: Barriers to Entry rated as 5 since they can tap
into new market since there is increasing demand for system installations, Growth
Potential since our country is in third world country, Access to Financing rated as 2
since its solvency is unfavorable and Patents Earned rated as 3 since some of its
products are patented.
Each factor is rated from 1 as the worst and to 6 as the best and the other
way around -1 as the best and -6 as the worst and each quadrant is labeled as such:
Q1=Aggressive, Q2=Conservative, Q3=Defensive and Q4=Competitive.
With (0) zero for the score on the X-axis and (1) one for Y-axis, Sysnet falls
under the Q1=Aggressive composed of strategies such as: Market Development,
Market Penetration, Product Development, Forward Integration, Backward
Integration, Horizontal Integration and Diversification (Related and Unrelated).
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6.3 BCG Matrix

Relative Market Share
High Medium Low
STARS QUESTION MARKS
Industry Sales Growth

Industry Sales Growth
Medium
CASH COWS DOGS

Low
Relative Market Share

Graph 2
BCG Matrix
Table 5
Relative Market Share (Revenue Based)
Growth
2013 % 2014 %
Rate
SYSNET Integrators Inc. 29,001,515 2% 20,735,472 2% (0.29)
Global-Link Specialist Inc. 52,662,204 4% 56,167,514 5% 0.07
NEC Philippines Inc. 930,583,316 76% 784,101,234 67% (0.16)
Technologist Specialist Inc. 216,858,504 18% 313,519,012 27% 0.45
TOTAL: 1,229,105,539 1,174,523,232 -4%
The Matrix shows SYSNETs relative market share and growth rate
compare to its three competitors NEC, GESI and TSI. On Relative Market Share,
it is based on the revenue generated by the entities for years 2013 and 2014.
Among the four entities NEC Philippines Inc. has the highest generated revenue
for the years 2013 and 2014 76% and 67% consecutively.
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From the computation, the three entities SYSNET, GESI and TSI falls
under low relative market share and low growth rate in other words under DOG
category having strategies of Retrenchment, Divestiture and Liquidation.
While the remaining entity NEC Philippines Inc. has high relative market
share and low growth rate falling under CASH COW category.
6.4 IE Matrix
Graph 3
IE Matrix
Values Raw Rounded Of

EFE 3.50 3.5
IFE 2.50 2.5
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The graph shows the combined IFE and EFE’s Total Weighted Scores using
(4) four as the highest and (1) one as the lowest and indicators showing what
strategies can be used, either Grow and Build (Blue), Hold and Maintain (Gray) and
Harvest and Divest (Red). With an EFE of 3.5 and an IFE 2.5, Sysnet Inc. falls under
the Grow and Build Strategy consisting of Intensive and Integration Strategy.
6.5 Grand Strategy

Rapid Market Growth
QUADRANT 2 QUADRANT 1
Strong Competitive Position

Weak Competitive Position
QUADRANT 3 QUADRANT 4
Slow Market Growth

Graph 4
GRAND STRATEGY Matrix
Entity BCG Matrix (Y-axis) CPM Matrix (X-axis)

SYSNET Integrators Inc. (0.29) 2.20
The graph shows the combined BCG and CPM results, BCG at the Y-axis indicating
the speed of the Market Growth and CPM at the X-axis indicating the strength of the
company’s Competitive Position and is separated by 4 Quadrants composing of different
strategies. Combined scores from the BCG and CPM falls under Quadrant 3 composed of
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Retrenchment, Concentric and Conglomerate Diversification, Horizontal Integration,

Divestiture and Liquidation Strategies.
6.6 Summary Matrix

Table 6
SUMMARY Matrix
TOWS BCG IE GRAND SPACE Total

Market Penetration 1 1 1 3
Market Development 1 1 1 3
Product Development 1 1 1 3
Horizontal Integration 1 1 1 1 4
Forward Integration 1 1 1 3
Backward Integration 1 1 1 3
Retrenchment 1 1 1 3
Divestiture 1 1 2
Liquidation 1 1 2
Unrelated Diversification 1 1 2
Related Diversification 1 1 2
Chosen Strategies:
Market Development
Horizontal Integration
Backward Integration
This table shows that horizontal integration is the most acceptable strategy for
the company since it is suggested to be applied in 4 out of 5 matrixes. The next
leading strategies are market penetration, market development, product
development, forward integration, backward integration and retrenchment, having
the total score of 3 out of 5 matrixes. In the last place are divestiture, liquidation,
unrelated divestiture and related divestiture since these strategies are only
suggested to 2 out of 5 matrixes.
29
7. Decision Tool
7.1 QSP Matrix
Table 7
QSP Matrix
The table shows that almost all opportunities stated are most accepted for
market development. On the other hand, some of the threats under the same
strategy are accepted. When it comes to the strengths, all key factors are most
accepted and for the weaknesses, factors are on the average of probably
acceptable.
In horizontal integration, most of the stated opportunities are probably
acceptable while the given threats for the stated strategy range from possibly
30
accepted to least accepted. The key factors under strengths are all most accepted
unlike the key factors under weaknesses which fall under possibly acceptable to
totally least acceptable.
In backward integration, the key factors under opportunities and strengths

mostly fall under most accepted in reverse to the key factors under threats which are
mostly not accepted. The weaknesses under the said strategy vary from most
accepted, probably acceptable, possibly acceptable and not accepted at all.
The total weighted attractiveness score for market development is 6.70 which
is very acceptable. Horizontal integration’s total weighted attractiveness is 4.60
which mean that the key factors are acceptable, under the stated strategy. The total
weighted attractiveness some for backward integration is 5.50 which conclude that
the key factors are probably acceptable for the said strategy.
 Proposed Strategies:
 MARKET DEVELOPMENT
The entity must consider tapping into new market by affiliating with the
Government on installations of Free Public Wifi, thus it could also add to their
Net Income since aside from its private regular clients, developing its market
through installations of system to public entities will improve its project
portfolio.
 BACKWARD INTEGRATION
The entity may take over its suppliers for them to decrease their cost of
sales by entering into joint venture which offers the supplier the assurance
that the entity will be their regular customer.
 HORIZONTAL INTEGRATION
The entity may consider entering into partnerships or merging with its
competitors to increase market share for example negotiating with TELSTRA.
31
8. Action Plan
Course of People Time Cost Success

Objectives Involved
Action involved Frame Indicator
1. Meeting with To inform the top Top 1 Php 5,000 Arrival of the
the Top management management week Board at a
management about the changes common goal.
and action that will
happen to the
entity.
2. Planning for the For the continuity Top 2 Raise revenue

tapping into new of the current management weeks
market. objectives
3. Commencing To be able to Middle 2 Php 7,000 Proven effectivity

of research to evaluate project management weeks of the project
evaluate effectivity, efficiency through intensive
effectivity of the and shareholders research and
project. response to development
this proposed
action plan.
4. Conduct To be able to Top and 3 Php 5,000 Positive response

meeting with the gather the majority Middle days from stockholders
entity’s of the persons Management
stockholders. that have a voting
right towards the
direction of the
entity for acquisition
of
their approval.
5. Initialization To initialize Middle- 2 N/A Start of
of the preparatory Level Weeks promotional
implementation stage of the management campaign
of the project. project. This
includes
dissemination of the
information
to stockholder
and preparation
of all required
necessary
documents
required.
6. Full For the Middle- 3 N/A Increase entity’s
implementation continuity of Management Months net income
of the project of the function and Lower-
tapping into new of this action. Management
market by
affiliating with the
government on
installations of
Free Public Wifi.
32
SYSNET INTEGRATORS INC.

PROJECTED STATEMENT OF INCOME
2016 2017 2018 2019 2020
Revenue 26,857,373 31,596,910 36,336,446 41,075,983 45,815,519
Cost of Sales 10,947,827 12,879,796 14,811,765 16,743,735 18,675,704
Gross Profit 15,909,547 18,717,114 21,524,681 24,332,248 27,139,815
Administrative Expense 9,191,846 10,813,936 12,436,027 14,058,117 15,680,208
Profit from Operation 6,717,701 7,903,177 9,088,654 10,274,131 11,459,607
Tax Expense 751,007 883,537 1,016,068 1,148,598 1,281,129
Comprehensive Income 5,966,694 7,019,640 8,072,586 9,125,532 10,178,478
Financial Assumptions
1. Increase by 60% of Revenue
2. Increase by 40% Cost of Sales
3. Decrease of 29% of Administrative expenses
SYSNET INTEGRATORS INC.

STATEMENT OF INCOME (INTERIM)
2015
Revenue 13,823,648
Cost of Sales 6,439,898
Gross Profit 7,383,750
Administrative Expense 10,661,627
Profit from Operation 38,308,923
Tax Expense 618,476
Comprehensive Income 37,690,447
Government Budget- Php. 339 Million
40%- Php. 125,600,000

60%- Php. 203,400,000/14 major cities
Payback Period= Php. 14,528,571 = 1 yr.

Php. 11,041,590
33
TABLE 8
CASH BUDGET
For the year 2016
Materials Php 9,000,000
Salaries & Wages 3,000,000
Transportation 400,000
SSS/Philhealth Contributions 300,000
Maintenance 1,000,000
Training & Seminars 200,000
Insurance Expense 50,000
Office Supplies 13,000
Miscellaneous 37,000
TOTAL: Php 14,000,000

The table above shows the cash budget that the entity will allot for the year 2016.
34
9. BALANCE SCORE CARD

TIME PRIMARY
OBJECTIVES: MEASURE TARGET
EXPECTATION RESPONSIBILITY
Customers:
Number of new
1.Increase customer loyalty employee 4
contacts
2. Learn and apply Number of 2 per Collaborate with customers
to identify and understand
communication techniques feedbacks person 3 months
customer needs and
Percentage of
3.Sales revenue per customer 60% expectations.
Increase in sales
Number of 5 times
4.High Quality Service
service demand per client
Employees:
Percent of
1. Search out training
persons who 100%
opportunities
attended training Promote a culture and
working environment that
embraces growth and
development to meet the
2. Receive process Percent of 6 months individual needs of our
improvement and project persons who 100% employees resulting in
management training attended training employee engagement and
overall employee
3. Employee Satisfaction and Percentage of satisfaction.
Retention regular 40%
employees
4. Provide strategic Percentage of
management to all approved 80%
projects
Operations/ Processes:
1. Initiative delivered project Percentage of

90%
goals goals met
Percentage of
2. Initiative delivered on budget delivered on 90% Utilize innovation to advance
budget and improve internal
1 year
Percentage of processes to keep business
3.Proper work culture and
employees work 85% moving forward.
higher employee confidence
etiquette
Percentage of
4.Improve operational
work efficiency
efficiency and minimize 90%
and
problems
effectiveness
Financial:
Percentage of
change Allocate budget to support
1.Use cost benefit analysis to at least
initiatives that business goals, objectives
make smart decisions 50%
have a cost and to ensure financial
benefit 1 year
benefits are maximized
2.Asset Utilization ROA 20% through smart, transparent
3.Profitable growth ROI 40% financial.
4.Improve cash flow Cash Flow 80%
35

Strategic Management Plan For Sysnet Integrators Inc.: Man 120 - 2 Business Policy

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Strategic Management Plan For Sysnet Integrators Inc.: Man 120 - 2 Business Policy

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STRATEGIC MANAGEMENT PLAN FOR SYSNET INTEGRATORS INC.

1. Background of the Company

Sysnet Integrators Inc. is a service and solutions provider for tele-

PRODUCTS AND SERVICES

Ultima ( Multi-interface, Multi-rating Service Creation Platform )

MVNO ( Mobile Virtual Network Operator )

MAN 120 – 2 BUSINESS POLICY

SMART Enterprise (VoIP)

Prepaid Wi-Fi BIZ

Interactive Voice Response System ( IVRS )

Vani-Txt alpha numeric switching

MAN 120 – 2 BUSINESS POLICY

Missed Call Text Alert

Welcome Roaming Message

iSMS ( Intelligent Short Messaging System )

MAN 120 – 2 BUSINESS POLICY

SMS Recharge System

Cellular Base Station Installation (Indoor equipment)

MAN 120 – 2 BUSINESS POLICY

MAN 120 – 2 BUSINESS POLICY

SYSNET Integrators Inc.

MAN 120 – 2 BUSINESS POLICY

SYSNET Integrators Inc.

MAN 120 – 2 BUSINESS POLICY

SYSNET Integrators Inc.

MAN 120 – 2 BUSINESS POLICY

SYSNET Integrators Inc.

MAN 120 – 2 BUSINESS POLICY

4. Vision, Mission and Goals of the Company

4.2. Analysis / Critique

MAN 120 – 2 BUSINESS POLICY

4.3. Revised Vision, Mission and Goals or Status Quo

SYSNET has a strong presence in the Philippines and completed

2. Increasing demand for system/program installations for commercial

Since there are vast commercial establishments in different parts of our

MAN 120 – 2 BUSINESS POLICY

3. Annual release of upgraded operating systems

When a client’s systems of their computers have enhanced

4. Increasing demand for WIFI installations

Philippines belong to the Third World Country, relative to this, since we

5. Increasing number of variety of suppliers that offers high-end

Suppliers of gadgets or technologies that will be used by SYSNET on

Once Telstra takes over the tele-communication industry in the

2. An average of 5% increase on integrator companies that offers fast

New entrants are a competition for the company.

3. Bargaining power of customers on availing discounts and promos

Since SMART is one of their regular customers, Sysnet Integrators Inc.

4. High prices set by suppliers

5. Unanticipated system or program hackings

5.1.2. Internal Environment

They provide the best package technologies of the highest quality at

MAN 120 – 2 BUSINESS POLICY

3. Established for about 20 years of its existence

5. With 80% regular clients

SMART is one of the regular customers of Sysnet Integrators Inc.

Sysnet Integrators Inc. only has 72 employees which cause difficulties

3. Increase in cost of sales levels by 55.32%

MAN 120 – 2 BUSINESS POLICY

Since this company is using modern pieces of technology to further

4. Increase in administrative expenses by 18.23%

MAN 120 – 2 BUSINESS POLICY

From year 2011 to 2014 on its Statement of Income it is visible that

5. Decrease in net income by 355.35% from 2010-2014 .