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Strengths
STRENGTHS - S
The following are the strengths of Ayala Land, Inc.: S1 Financial strength from
stability of parent company
1. Ayala Land has its financial strength from its resources and
the stability of its parent company. S2 High quality projects and
service
2. Ayala land has its business stability, quality projects and
service strength. S3 Countrys largest
conglomerate for the time
3. Ayala is the country's largest conglomerate for the time.
S4 Organizational strength
4. Ayala land has its organizational strength because they just in hiring the best of the best
hire the best of the best.
S4 Largest project outputs in
5. They have the largest malls, residential area, prestigious the country
hotels and resorts here in the country.
S6 Faster lead time in
6. They also have faster lead time in construction of projects construction of projects
than competitors.
WEAKNESSES W
Weaknesses W1 High selling price of
The following are the weaknesses of Ayala Land, Inc.: shares, low buying for
investors
1. The buying opportunities in the share price of the Ayala W2 Fewer distribution
Corporation because of its high selling price. channels abroad (weak export)
2. The weak export of their products. W3 Slower inventory
turnover of 1.26 vs. industry
3. Slower inventory turnover than industry average.
of 1.86
Opportunities OPPORTUNITIES - O
O1 More idle land, more
The following are the opportunities of Ayala Land, Inc.: projects
1. There are more idle land here in our country more O2 Higher population
opportunities for the corporation. increases demand for houses
O3 Continued growth of the
2. The population gets higher, there is need for more houses. BPO sector increases sales
3. The continued growth in the BPO sector increases target O4 Potential sales due to
market share. continued promotion of the
Philippines as a retirement
4. Promotion of tourism sector regarding the Philippines as a haven and relaxing of
retirement haven and relaxing of constitutional limitations on constitutional limitations on
land ownership. land ownership
O5 2% growth rate of high
5. A 2% growth rate of high rise residential segment. rise residential segment
Threats THREATS - T
T1 Interest rates are
The following are the threats of Ayala Land, Inc.: projected to rise
1. Interest rates are projected to rise. T2 Heightened risk of
flooding due to climate change
2. Heightened risk of flooding due to climate change
T3 SM Prime is Ayalas
3. The SM Prime is Ayala's biggest competitor, another famous
biggest competitor.
company with many projects as well.
Competitive Strategies
Cost Leadership Strategies
This can be used for allow cost producer within a mass, the cost leadership is often driven by
company efficiency, size, scale, scope and cumulative experiences. The Cost leadership Strategy
aims to exploit scale of production, well defined scope and other economies, the example is a good
purchasing approach, producing highly standardized products using high technology. The cost
leadership is different from price leadership. This is usually gained by companies that are able to
achieve economies of scale in production and marketing.
Differentiation Strategies
Approach under which a firm aims to develop and market unique products for different
customer segments. Usually employed where a firm has clear competitive advantages, and can
sustain an expensive advertising campaign.
Differentiation is used when offering something unique that is perceived by the consumer to
be better or different to other products. A differentiation strategy can provide
a competitive advantage by differentiating your business from your competitors and at the same time
offering what your customers need. A differentiation strategy will pursue a unique position among
your competitors. The aim of the strategy is for the business to become unique in the minds of its
customers. For example, you can offer a specific design that your competitors cannot offer and target
a specific group of consumers. The aim of differentiation strategy is to create brand loyalty, which in
turn can create price in elasticity on the part of buyers. As a result, customers will be less sensitive on
price decisions, and more sensitive on the actual product. In turn, it can erect competitive barriers to
entry, higher margins and possibly mitigate the power of buyers who will eventually lack acceptable
substitute products. When altering factors like design, technologies and more to differentiate
yourself, it is important to focus on the customers needs in order to design those factors
appropriately. Differentiating the product or service of the firm means creating something that is
perceived industry wide as being unique. Differentiation may take the form of design or brand image,
technology, product feature, customer service, dealer network, etc. Ideally, the firm differentiates
itself among several dimensions that are important to the customer. Differentiation does not mean
that the firm will ignore costs, although costs are not the primary strategic target. Achieving
differentiation may preclude gaining a high market share since it often requires a perception of
exclusivity. Achieving differentiation implies a trade-off with a cost position if the activities required
in creating it are inherently costly, such as extensive research.
Focus Strategies
Annual Report the most important report that corporations issue to stockholders for effective
decision making.
Four basic financial statements
Balance Sheet - shows what assets the company owns, and who has claims on those assets as of a
given date.
Current Assets consists of assets that should be converted into cash within one year.
o Cash and Cash Equivalents
o Inventories
Long-Term (Fixed) Assets assets that are expected to use for more than one year.
o Plant, Property and Equipment
o Intellectual Property (Patents and Copyrights)
Current Liabilities consists of claims that must be paid off within one year.
o Accounts payable
o Accrual (Wages, taxes)
o Notes payable
Long-term Liabilities (Debts) bonds that will mature in more than a year
Stockholders Equity It represents the amount that stockholders paid the company when
shares were purchased and the amount of earnings the company has retained since its
origination
o Paid-in capital
o Retained Earnings
Income Statement shows the firms sales and costs during some past period.
Statement of Cash Flows shows how much cash the firm began the year with, how much cash it
ended up with, and what it did to increase or decrease its cash.
Statement of Stockholders Equity shows the amount of equity the stockholders had at the start of
the year, the items that increased or decreased equity, and the equity at the end of the year.