Strategy Formulation

Ayala Land, Inc. is one of the Philippine’s biggest property developers. They design master-
planned projects that encourage long-term growth and offer long-term value to their citizens, developers,
and stakeholders. Ayala Land continues to incorporate eco-efficient practices into all of its developments,
from responsible land acquisition and green building design to sustainable construction practices and
management, as the leader of the idea of sustainable development in the Philippines.
(“Sustainable Development in the Philippines | Ayala Land, Inc.”)
The financial strength of Ayala Land comes from its resources and the stability of its parent
company. They have the country's largest malls and residential areas, and they also have some high-end
hotels and resorts.

Strategic Objectives
To set the goal of this business, using SMART goal setting for the five years from now or the
long-term goal stands for the Specific, Measurable, Attainable, Relevant, and Time-Based.
SMART
Specific

Measurable

Attainable

Relevant

Time-Based

The appropriate tool in a formulation that we can use is the Boston Consulting Group Matrix or BCG
Matrix. This matrix has four classifications that are based on two-dimension. Business or market
development is the first of these dimensions. The strategic business unit's relative market share is the
other of these dimensions.
BCG Matrix of Ayala Land Inc.
STARS
 In the BCG matrix of Ayala Land Inc. in the Philippines Asset Allocation in a Growing Economy,
the financial services strategic business unit is a star. It works in a market that has the potential to
develop in the future. Philippines' Ayala Land Inc. In a growing economy, how do you allocate
your assets? This SBU provides a large portion of revenue. Philippines' Ayala Land Inc. In a
growing economy, how do you allocate your investments? The economy should vertically integrate
by purchasing other supply chain companies. As this Strategic business unit has potential, it will be
able to gain more profits as a result of this.
 That also produces the most sales out of the company's entire product portfolio. Consumers are
expecting this and similar goods, so there is a lot of potential in this industry. Asset Allocation in a
Rising Economic: Ayala Land Inc. in the Philippines for this SBU, a product development plan
should be implemented. The company introduces new features on the product through research and
development. Ayala Corporation, the Philippines Asset Allocation in a Growing Economy, would
benefit from this by gaining more consumers and increasing sales.
 Asset Allocation in a Growing Economy in the Philippines, as Ayala Land Inc. In this segment, the
economy has a 20% market share. In this group, it is also the industry leader. In the next five years,
the overall segment is projected to rise at a rate of 5%, indicating that the market growth rate will
remain strong. Asset Allocation in a Rising Economy: Ayala Company in the Philippines to break
into the market, A should use its current goods. This could be achieved by strengthening its
distribution networks, which would enable it to reach out to previously untapped markets. This will
help Ayala Land Inc. sales in the Philippines Asset Allocation in a Growing Economy.

QUESTION MARKS
 The strategic business unit is a question mark in Ayala Land Inc.'s BCG matrix for Asset
Allocation in a Growing Economy in the Philippines. Consumers are increasingly focusing on
local foods, according to recent market trends. As a result, this market is experiencing rapid
growth. In this section, however, Ayala Land Inc., the Philippines Asset Allocation in a Growing
Economy, has a small market share. Ayala Land Inc., the Philippines Asset Allocation in a
Growing Economy, should invest in research and development to create new features. This product
development plan will ensure that this strategic business unit becomes a cash cow in the future,
bringing profits to the group.
 Asset Allocation in a Growing Economy: Ayala Land Inc. in the Philippines This strategic
business unit operates in a rapidly developing market. However, in recent years, this strategic
business unit has been losing money. It has also struggled in research and development teams'
attempts at creativity. The recommended strategy for Ayala Land Inc.'s Asset Allocation in a
Growing Economic in the Philippines is to divest and avoid potential losses.
 Asset Allocation in a Growing Economic: Ayala Land Inc. in the Philippines, the confectionery
market is a lucrative one rising steadily over time. However, in this attractive industry, Ayala Land
Inc., the Philippines Asset Allocation in a Growing Economy, has a small market share. Due to
Ayala Land Inc, the Philippines Asset Allocation in a Rising Economic's low reach and weak
distribution in this market are low sales. Ayala Land Inc.'s suggested strategy for Asset Allocation
in a Growing Economy in the Philippines is to seek market penetration, which involves pushing to
make its commodity available in more outlets. Ayala Land Inc. would benefit from increased
revenue as a result of this. This will help Ayala Land Inc., the Philippines Asset Allocation in a
Growing Economy, raise revenue, and transform this strategic business unit into a cash cow.

CASH COWS
 The strategic business unit of supplier management services is a cash cow in Ayala Land Inc.'s
BCG matrix, the Philippines Asset Allocation in a Growing Economy. For decades, this has been
in place and has generated considerable revenue for Ayala Corporation's Philippines Asset
Allocation in a Growing Economic. While Ayala Land Inc. has a significant market share in the
Philippines Asset Allocation in a Growing Economy, the overall market is shrinking as businesses
manage their suppliers rather than outsourcing them. The recommended strategy for Ayala Land
Inc.'s Philippines Asset Allocation in a Growing Economic is to avoid investing in this company
and continue running this strategic business unit as long as it is profitable.
 In Ayala Land Inc.'s BCG matrix, the Number 3 brand strategic business unit is a cash cow. This is
a ground-breaking innovation with a 25% market share in its segment. In this group, Ayala Land
Inc. is also the market leader. In recent years, the overall category has been steadily decreasing.
Ayala Land Inc. can influence the market in this category as well. As a result, it should invest in
research and development so that the brand can be reinvented. This will boost the category's
popularity and turn this cash cow into a superstar. Ayala Land Inc.'s overall benefit would be an
increase in sales.
 Ayala Land Inc.'s internal food strategic business unit is a cash cow in the BCG matrix. This
business unit has a 30% market share in its segment, but people are becoming less interested in
foreign cuisine. The market's growth rate has decreased as a result of the change in trends. Ayala's
suggested approach is to spend enough to keep this strategic business unit operational. Ayala Land
Inc. can sell this strategic business unit if it no longer remains viable and becomes a Dog.

DOGS
 For the past five years, this strategic business unit has been at a loss. It also competes in a market
that is contracting as a result of rising environmental concerns. Ayala Land Inc.'s recommended
strategy is to divest this strategic business unit and minimize losses.
 This company is in a market segment that has been shrinking for the past five years. This strategic
business unit is also losing money for the company. However, with the current environmental
changes, the market is expected to grow in the future. The best strategy for Ayala is to invest
enough to turn it into a cash cow. This will ensure Ayala Land Inc. profits if the market grows
again in the future.
 In the BCG matrix of Ayala Land Inc., the synthetic fiber products strategic business unit is a dog.
The market for such products has been declining for the past three years, and as a result of this
decline, Ayala Land Inc. has suffered a loss. It has a market share of less than 5% as well. The
Philippines Asset Allocation in a Growing Economy recommends that Ayala Land Inc. divest this
strategic business unit to avoid further losses.
 For Ayala Land Inc., the Philippines Asset Allocation in a Growing Economy, the artificially
flavored products strategic business unit is a dog in the BCG matrix. These products were recently
introduced, with the expectation that this market would expand. Artificial flavors, on the other
hand, are becoming less popular as people become more health-conscious. Ayala has no significant
market share in a shrinking market. This product should be called back, according to Ayala's
recommended strategy.

Competitive Strategies
Within a competitive industry, the strategic advantage that one business entity has over its competitors.
Having a competitive advantage strengthens and positions a company better in the marketplace.

Cost Leadership Strategies

It allows cost producers within a mass; cost leadership is often influenced by its efficiency, scale,
scope, and cumulative experiences. The Cost Leadership Strategy aims to take advantage of economies of
scale, well-defined scope, and other factors. A good purchasing strategy, for example, produces highly
standardized products using high technology. Price leadership is not the same as cost leadership.
Companies that can achieve economies of scale in production and marketing usually benefit from this.

Differentiation Strategies
A method by which a company aims to create and market unique products for various customer
segments. When a company offers something unique that the customer perceives to be better or different
from other products, it is referred to as differentiation. By differentiating your company from your rivals
while still providing what your customers want, a differentiation strategy will help you gain a competitive
advantage. This technique aims to set you apart from your competitors. The strategy's goal is for the
company to become special in the eyes of its customers. Differentiating a company's product or service
entails making something that is regarded as unique in the industry. Design or brand picture, technology,
product function, customer support, dealer network, and so on are all examples of differentiation. In an
ideal world, the company stands out in various ways that matter to the consumer. While costs are not the
primary strategic goal, differentiation does not imply that the firm can disregard them. Since distinction
also necessitates a perception of exclusivity, it can preclude obtaining a large market share. If the
activities needed to create it are potentially expensive, such as comprehensive testing, achieving
differentiation implies a trade-off with a cost position. (Alabado)

Performance Performance Target Person/Unit

Area measures Responsible

Output Time
Frame

Financial  Return on  Increase revenue 15% Financial

Performance Investment  Decrease the cost or Management
(ROI) resource optimization
 Operating by 10%
Margin
Customer and  Levels of  Increase Product and Marketing
Market Returns service quality by Management
Performance  Service Rating 20%
 Increase Market
share by 10%
 Increase Customer
profitability by 15%
 Increase Customer
Retention
Internal  Unit Cost  Decrease the cost of Operation
Efficiency and  Product Lead operations by 10% Management
Effectiveness time  Increase the
innovation of the
existing products by
10%
 Decrease the cycle
time by 20%
Long Term  Employee  Increase employee Human Resource
Development Retention capabilities using Management
and innovation  Level training by 25%
Employees  Improve information
Satisfaction system capabilities
 Yield Ratio  Decrease the cost
from hiring by 10%
 Decrease the time
from hire by 10%