Meralco Road Map

A 3-Year Projected Business Road Map
Presented to Ms. Rosielyn P. Conversion

Instructor, Business Administration Program
Father Saturnino Urios University
Butuan City
In Partial Fulfillment
Of the Requirements for the Course
BUSN 403: Business Policy and Strategy
By
Narciansino T. Delicano
Jennifer O. Durana
Ben Jay Felizarta
Emman Jae R. Fineza
Christine Menlove L. Gonzales
March 2014
Page | 1
Executive Summary
Table of Contents
Cover Page
Executive Summary
Chapter I
THE BUSINESS
Vision
Mission
Goals
Objectives
Team
Chapter II
MARKETING PLAN
Customer Analysis
Competitor Analysis
SWOT Analysis
Market Strategy
Chapter III
10
OPERATIONAL PLAN
Programs / Activities
Key Performance Indicators (KPIs)
Budgets / Procedures
Chapter IV
4
5
6
7
9
EVALUATION AND CONTROL
11
12
13
15
Page | 2
CHAPTER I
THE BUSINESS
Vision
MERALCO is a local energy, products and service provider envisions a world-class
customer-centered electric company of choice.
Mission
To be fully responsive in dealing customers needs by providing effectively and efficiently
the best value of energy products and services.
Goals
Leadership Culture Priorities

1.
2.
3.
4.
Customer Principles
1.
2.
3.
4.
5.
Encourage open communications

Empower employees to grow and back their decisions.
Create team players and goals.
Build collaboration. (ALL FOR ONE AND ONE FOR ALL)
Anticipate our members' needs.

We say yes to members and customers - and then figure out HOW.
We make decisions that are financially responsible for our membership.
We continuously adapt to better serve our members' needs.
Customer service is everyone's business.
Culture Principles
1.
2.
3.
4.
5.
6.
Everyone is committed to a collaborative member focused culture.

We create a trusting culture and cohesiveness.
Treat coworkers as members.
We build trust throughout the organization.
We create an atmosphere where we feel safe to challenge each other.
Empower employees to be leaders.
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Objectives
To be able to provide the best value in energy product and services to customers the
company sees to protect and enhance the interest of its stakeholders by committing
itself to:
1.
2.
3.
4.
5.
6.
7.
Treat the customers with dignity and be fully responsive to their needs.
Treat the employees with dignity and full consideration of their interest as its most
valued asset.
Honor the trust they placed in the company for investors as its principals.
Have a relationship based on mutual respect and benefit to our suppliers and
creditors as our business partners.
Have a fair and honest competition to competitors as its catalyst toward
continuing service excellence.
See the community as its business environment and the society it serves.
Employ proactive measures and cooperate with the government institution in
activities to serve society towards collective benefit.
Team
The following are the key players in ensuring the application of good governance
practices and policies within Meralco:
A. Shareholders
One who owns shares of stock in a corporation or mutual fund. For corporations,
along with the ownership comes a right to declared dividends and the right to vote on
certain company matters, including the board of directors. Shareholders are a
company's owners. They have the potential to profit if the company does well, but that
comes with the potential to lose if the company does poorly. A shareholder may also be
referred
to
as
a
"stockholder".
B. Board of Directors
The Board is primarily responsible for the governance of Meralco. Corollary to
setting the policies for the accomplishment of the corporate objectives, the Board also
provides an independent oversight on Management. The Board establishes Meralcos
vision, mission, strategic objectives, policies and procedures that guide its activities,
including the mechanisms for effective monitoring of Managements performance. The
Board also ensures that internal control mechanisms for good governance are
adequate.
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C. Board Committees
The Board of Directors shall form Board Committees to aid in ensuring
compliance with the principles of good corporate governance. The members of such
Committees shall be appointed by the Board of Directors annually.
The Company's Board has five standing committees:
All committees have approved charters defining and specifying the scope of their
responsibilities.
1.
Executive Committee (ExCom) may act, by majority vote of all its members,
on such specific matters within the competence of the Board, as may be delegated to it
in the By-Laws or on a majority vote of the Board, subject to the limitations provided by
the Corporation Code of the Philippines.
2.
Nomination and Governance Committee (Nom & GovCom) is responsible

for screening qualified nominees for election as directors; assessing the independence
of directors; introducing improvements on Board organization and procedures; settingup of mechanisms for performance evaluation of the Board and Management; and
providing programs for continuing education of the Board.
3.
Audit and Risk Management Committee (AuditCom) it assists the Board in

its oversight responsibility in the financial reporting process, system of risk management
and internal control, audit process, and monitoring compliance with applicable laws,
rules and regulations
4.
Remuneration and Leadership Development Committee (Remuneration &

LDCom) formerly Compensation and Benefits Committee, assists the Board in the
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development of the Companys overall compensation and retirement policies and

programs based on the Board approved philosophy and budget.
5.
Finance Committee (FinCom) It reviews the financial operations of the

Company and matters regarding acquisition of or investments in companies, businesses
or projects.
D. Management
Management is primarily accountable to the Board. It is responsible for the

Companys successful implementation of the strategy and direction as approved by the
Board. Management is represented by a Management Committee (ManCom) composed
of the corporate officers and executives headed by the President and CEO, or in his
absence, the Senior Executive Vice President and COO. Weekly meetings are
conducted by the ManCom to ensure implementation of major policies and directions
governing the Company and its subsidiaries. It reports to the Board during regular
Board meetings or during special meetings through the President and CEO and/or the
Senior Executive Vice President and COO.
Table of organization.
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E. External Auditor
There was appointed an independent external auditor of the Company, through
the approval of the shareholders in the Annual General Meeting. The appointment is in
accordance with the SEC regulation on the qualification of external auditors.
The AuditCom ensures that the independence of the external auditors is
maintained. In line with this, the AuditCom does not allow engagement of external
auditor in any non-audit work that (i) will conflict with their duties or (ii) may impair or
pose a threat to their independence. Any non-audit work, if allowed, is disclosed in the
Meralco Annual Report.
F. Internal Auditor
The internal audit activities conform to the concepts and principles enunciated in
the definition of internal auditing as an independent, objective assurance and consulting
activity designed to add value and improve an organizations operations. Internal audit
services are performed in accordance with the International Standards for the
Professional Practice of Internal Auditing. The internal audit group is led by a chief audit
executive and includes 23 other staff with professional qualifications, which include
Page | 7
Certified Internal Auditors, Certified Information Systems Auditors and Certified Public
Accountants. The tasks of the internal audit group are set out in the Corporate Audit
Charter and the Code of Corporate Governance of Meralco. To provide for
independence of the internal audit group, the chief audit executive reports functionally to
the AuditCom and administratively to the President and CEO in a manner outlined in the
Corporate Audit Charter.
CHAPTER II
MARKETING PLAN
Customer Analysis
Competitor Analysis
Market Strategy
1.
2.
3.
4.
Product
Price
Place
Promotion
SWOT Analysis
Strengths
Weaknesses
Most Effective Tactics Used
Most Difficult Tactics to Execute
1.
2.
3.
4.
5.
6.
7.
Domestic market
Monopoly in Central Luzon
Skilled workforce
Experienced business units
Monetary assistance provided
Diversified customer base
Countrys Biggest Power
Distributor
8. Serving Filipino people over
11 decades
9. Service Provider of Choice
1.
2.
3.
4.
5.
Future profitability
Small business units
Future competition
Lack of geographical diversification
Unwanted charges
Page | 8
Opportunities
Threats
Most Important Objectives to

Achieve
Most Challenging Obstacles to

Overcome
1. Venture capital
2. Income level is at a constant
increase
3. Expansion of operations
4. Innovation of technology
1.
2.
3.
4.
5.
6.
7.
8.
Increase in labor costs

Tax changes
Price changes
Growing competition and lower
profitability
External business risks
Government regulations
Volatility in exchange rate
Increasing numbers of solar
panels users
CHAPTER III
OPERATIONAL PLAN
Programs / Activities
Key Performance Indicators (KPIs)
Budgets / Procedures
CHAPTER IV
EVALUATION AND CONTROL
Page | 9
Page | 10

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A 3-Year Projected Business Road Map

Presented to Ms. Rosielyn P. Conversion

EVALUATION AND CONTROL

Leadership Culture Priorities

Encourage open communications

Anticipate our members' needs.

Everyone is committed to a collaborative member focused culture.

The Company's Board has five standing committees:

Nomination and Governance Committee (Nom & GovCom) is responsible

Audit and Risk Management Committee (AuditCom) it assists the Board in

Remuneration and Leadership Development Committee (Remuneration &

development of the Companys overall compensation and retirement policies and

Finance Committee (FinCom) It reviews the financial operations of the

Management is primarily accountable to the Board. It is responsible for the

Most Effective Tactics Used

Most Difficult Tactics to Execute

Most Important Objectives to

Most Challenging Obstacles to

Increase in labor costs

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