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Group 2: SM Corporation: Different Ways To Engage in Self-Care

SM Investments Corporation is a large Philippine conglomerate founded in 1960 involved in retail, property, banking, and other services. It operates the largest retail chain in the Philippines including department stores, supermarkets, and smaller convenience stores. The company pursues a participative management style and aims to provide an excellent customer shopping experience through continuous innovation. A SWOT analysis finds strengths in its large retail presence nationwide and CSR activities, but weaknesses in a lack of e-commerce and international presence. PEST analysis notes political opportunities from infrastructure projects but regulatory hurdles, as well as social and economic contributions through employment and community development programs.

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Lay Galicia
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66 views20 pages

Group 2: SM Corporation: Different Ways To Engage in Self-Care

SM Investments Corporation is a large Philippine conglomerate founded in 1960 involved in retail, property, banking, and other services. It operates the largest retail chain in the Philippines including department stores, supermarkets, and smaller convenience stores. The company pursues a participative management style and aims to provide an excellent customer shopping experience through continuous innovation. A SWOT analysis finds strengths in its large retail presence nationwide and CSR activities, but weaknesses in a lack of e-commerce and international presence. PEST analysis notes political opportunities from infrastructure projects but regulatory hurdles, as well as social and economic contributions through employment and community development programs.

Uploaded by

Lay Galicia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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GROUP 2:

SM CORPORATION

Different Ways to Engage in Self-Care


1.
A. Business
Organization

The SM Group's parent company, SM Investments Corporation (SM), was


founded on January 15, 1960, with holdings in retail, property, and banking. Retail
("The SM Store," SM Supermarket, SM Hypermarket, SaveMore, Walter Mart
Supermarket, Inc., and Alfamart); property (SM Prime Holdings, Inc. and SM
Development Corporation); and financial services (SM Prime Holdings, Inc. and SM
Development Corporation) (BDO Unibank, Inc. and China Banking Corporation).
B. Ownership
In 2013, Henry Sy, the Philippines' richest
man, attended the launch of a new mall outside of
Manila. SM Investments, a private retail holding
firm established in Pasay, Metro Manila,
Philippines, operates 62 department stores, 56
supermarkets, and more than 200 smaller food
stores. It is a subsidiary of the SM Investments
Corporation conglomerate. Since 2009, SM Retail
has belonged to the International Association of
Department Stores.
C. Type Of
Business
SM Investments Corp. is a holding
corporation. In the Philippines, it is involved in
financial services, retail, banking, and real estate.
The company is divided into the following
segments: Property, retail, banking, and other
services Mall, residential and commercial
development, hotels, and conference center
activities are all part of the Property division. The
Retail section is involved in the retail and
wholesale trade of goods such as dry goods,
clothing, food, and other items. Asset
management and capital investments are part of
the Banking & Others category. Henry Sy, Sr.
created the corporation on January 15, 1960, and
it is based in Pasay, Philippines.
D. Management Style

The SM is a participative management style. In


participative management, there is a distribution of authority
and power. The company's endeavor is a team effort, and each
team member has autonomy.
2.
A. Company's History
Henry Sy, Sr. opened SM as a shoe business in downtown Manila in October 1958. Mr.
Sy, dubbed the "Visionary of Philippine Retail" for his industry breakthroughs, envisioned a
network of shoe stores with a store layout and marketing techniques never seen before in the
Philippines.

Due to the success of the shoe store, it decided to expand into a full-line department
store, and the first SM Department Store opened in central Manila in 1972. Because of its
intriguing merchandise mix, world-class décor, one-stop shopping convenience, and service, SM
has become a part of many Filipinos' lives. It presently has 32 branches spread throughout
Metro Manila and other important cities.
B. Company's Goals &
Objectives
SM Supermalls aims to become Asia's most popular mall chain
via continuous innovation and relationships with the world's
finest retailers.

The goal was simple but clear: to revamp the website and decrease
traffic by increasing content, aesthetic, and usability. Rather than simply
promoting what the brand desired, the content strategy was to share
and spotlight SM customers' most meaningful mall experiences, or
"#SMoments."
Company's
Structure
D. Notable
Products &
Services
SM Investments Corp. is a holding
corporation. In the Philippines, it is
involved in financial services, retail,
banking, and real estate. Property,
Retail, and Banking & Other are the
three segments in which the
company works. Mall, residential
and commercial development,
hotels, and conference center
activities are all part of the Property
division.
SWOT
ANALYSIS
STRENGTHS
1.Sm has approximately 45 locations in the Philippines, making it the
country's largest retailer.

2.There are over 180 stores nationwide.

3. Sm foundation, Inc. running CSR (Corporate social responsibility is a


form of international private business self-regulation which aims to
contribute to societal goals of a philanthropic, activist, or charitable
nature by engaging in or supporting volunteering or ethically-oriented
practices.) activities.

4.SM prime subsidiaries.


Weaknesses
1.There are no countries where it is not found.
2.There is a scarcity of online shipping and e-commerce options.

Opportunities
1.Customers' disposable income is growing.
2.Taking advantage of the international market, particularly the rising market.
Threaths
1.The country has a different FDI policy.(Foreign Direct Investment.ThePhilippines
protects domestic industry, in part by capping foreign ownership at 40% in many
fields under its constitution and related laws. Full foreign ownership is permitted in
retail, but heavy restrictions are imposed on paid-in capital and investment per store,
discouraging entries).

2. CRM isn't very properly implemented.(Customer Relationship


Management.Customer relationship management is a process in which a business or
other organization administers its interactions with customers, typically using data
analysis to study large amounts of information).

3. Labor unions are not well-off.


PEST
ANALYSIS
Political Factors

SM Group may have earned two prized reclamation projects in Manila Bay, but
actual construction on the ground would have to wait till the necessary regulatory
processes are finished.

In 2019, SM Prime Holdings, Inc. has received the official notice from the Pasay
City government to proceed with its 360-hectare reclamation project within the
city’s municipal waters, the Sy-led listed company said in a disclosure on
Friday. Which can cause a thousand job opportunities and contributions to both
national and local development.
Economic Factors

SM Supermalls are among the Philippines' greatest employers, contributing to the


country's economic growth. SM also included business process outsourcing (BPO)
and office towers in shopping mall-anchored estates, as well as Sky Gardens,
Skyparks, and performing arts theaters in several of its regional malls.

SM facilitates social and economic development wherever it is present. Through


its various foundations, it makes targeted social investments in education, health,
farmers' training, disaster response and rehabilitation, and social inclusion.
Social Factors

SM Foundation is the corporate responsibility arm of the SM Group of Companies.


The foundation has various areas of advocacy: education, scholarship programs,
building schoolhouses, a mall-based outreach program, health care, medical
missions, mobile clinics, hospital activity centers and religious community projects.
SM Cares
SM Cares is a program created to consolidate and coordinate all of SM Prime's
corporate social responsibility (CSR) initiatives. Carried out in all 40 SM malls
nationwide, SM Cares' CSR projects cover environmental conservation (energy, air
and water), and assistance to customers of SM malls with special needs such as
the disabled, special children, the elderly and nursing mothers.
Technological Factors
SM Retail recognizes that today’s consumers have immersed themselves in technology and
have started to utilize the advantages of online shopping.

To serve customers in just a few clicks and scrolls, SM Retail launched its online shopping
platform, ShopSM, that showcases a variety of items found in every SM department store:
from menswear to womenswear, shoes to bags and baby essentials to kids’ wear. It also
offers popular toys, select cosmetics and beauty products, kitchen appliances, home
accessories and even hardware equipment.

ShopSM
It makes sure to catch the latest trend in the fashion scene, including products
from popular international brands, giving fantastic deals to customers and
allowing them to earn points using SM Advantage Card, SM Prestige or BDO
Rewards cards.
Reflection of the
Researchers
Group 2

Alie Macabato
Chester Francis Perez
Francis Roman
Heizl Sebonga
Chris Jake Macasio
Ivyn Ventura

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