PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY

Old Nalsian Road, Nalsian, Calasiao, Pangasinan, Philippines 2418

Tel. No. (075)522-8032/Fax No. (075)523-0894/Website: www.philcst.edu.ph
ISO 9001:2015 CERTIFIED, Member: Philippine Association of Colleges and Universities (PACU),
Philippine Association of Maritime Institutions (PAMI)

Chapter 16
P-A-L-M-A Analysis
Strategic Business Analysis
(Written Report)

Submitted By: Submitted to:

Marilyn D. Metiam Mrs. Marilou Palarca,CPA
Dianne P. Orenza
 PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY
Old Nalsian Road, Nalsian, Calasiao, Pangasinan, Philippines 2418
Tel. No. (075)522-8032/Fax No. (075)523-0894/Website: www.philcst.edu.ph
ISO 9001:2015 CERTIFIED, Member: Philippine Association of Colleges and Universities (PACU),
Philippine Association of Maritime Institutions (PAMI)

Learning Objectives:
1. Describe the PALMA Analysis.
2. Value the application of PALMA Analysis in business and life.
3. Use PALMA Analysis in making wise decisions.
PALMA Analysis is aligned to different theories that may harmonize goals of an
organization to be successful in the endeavor. According to a saying, “two heads are
better than one”. In relation to that quote, knowing the strengths of well tested and
proven theories will be converged into one matrix analysis.
PALMA Analysis is collective strategic business analysis approach of theories based
on assessment.
Meaning of P-A-L-M-A Analysis
PALMA Analysis was developed by Professor Norvin M. Palma. He was the former
College Dean of business administration, management, and accountancy for some
tertiary schools in the Philippines.
PALMA Analysis is an assessment of formulated strategies and applied on
organization. P-A-L-M-A is an acronym of Profitable, Advantageous, Lawful, Moral,
Actionable. When coming up with strategies, it must possess the attributes of PALMA
Analysis.
1. Profitable – strategies should generate profit. Investment of resources should
have returns. Generating sales through bigger quantity sold is ideal. However,
generating sales with more quantity sold while experiencing net loss is
uncommendable. “Profitable” could be in financial form and has positive effect
on brand, product, and company.
2. Advantageous set strategies will produce advancement, attainment of goals,
and competitive advantage. Being advantageous, makes an organization
create strategies that are innovative, feasible, and life worthy.
3. Lawful strategies must complement and adhere to laws, policies, regulations,
and directives of the authority. Wasting of resources like money, energy, and
effort should be avoided by complying with the prescribed directions of the
authorities.
4. Moral strategies should possess ethical and morality decision making. Let us
not forget that living in our world has purpose. Our purpose is to balance the
distribution of happiness to stakeholders. Man was created to act like
“shepherd” in taking care our world. Decision makers and leaders have
responsibility in managing and caring of humans, plants, animals, soil, air and
water.
5. Actionable after analysis and fabrication of strategies, it must transform into
doing. Being actionable does not alone stay on paper (plan). Actionable means
translating plans into reality. Sustainability of business means products and
company will survive despite challenges such as business activities,
competition, calamities, epidemic, and pandemic.
 PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY
Old Nalsian Road, Nalsian, Calasiao, Pangasinan, Philippines 2418
Tel. No. (075)522-8032/Fax No. (075)523-0894/Website: www.philcst.edu.ph
ISO 9001:2015 CERTIFIED, Member: Philippine Association of Colleges and Universities (PACU),
Philippine Association of Maritime Institutions (PAMI)

P-A-L-M-A Analysis

Impact of P-A-L-M-A Analysis

Measuring the impact of PALMA Analysis considers common sense and
practicality. Balancing the welfare of organization, people, and earth
resources are the implications of this theory.
Here are some examples of setting goals as strategies using the PALMA
Analysis Theory:
1. To produce product ABC that is for advancement while environmentally
friendly and HALAL certified.
2. To fabricate 100,00 pcs of product ABC while planting trees with 10,000
seedlings which will grow 10 years from now. Consultation with
environmental expert, production expert, and economist must coincide and
align in terms of decision making.
3. To set price at Php 1,000 with 30% net profit while allocating salary
according to the labor standard.
4. To purchase new technological device that will increase production by at
least 50% while avoiding job losses for employees.
5. To sponsor event in the barangay by giving 200 pieces of product ABC to
audience in exchange of posting tarpaulin, booth selling, and plugging of
marketing activities.
 PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY
Old Nalsian Road, Nalsian, Calasiao, Pangasinan, Philippines 2418
Tel. No. (075)522-8032/Fax No. (075)523-0894/Website: www.philcst.edu.ph
ISO 9001:2015 CERTIFIED, Member: Philippine Association of Colleges and Universities (PACU),
Philippine Association of Maritime Institutions (PAMI)

6. To purchase equipment and machines that are both beneficial for the
company and not hazardous to the earth’s condition.
7. To develop branch or subdivision which is environmentally friendly by
maintaining “green space” condition within the infrastructure
8. To design buildings which plants and trees could grow within it.
9. To help informing the customers about what is happening in the
community such as threats and calamities by regularly posting messages on
the social media, text, website, .
10. To implement cashier’s lane inclusively for person with disabilities (PWD)
and senior citizens.
11. To improve the surroundings by cleaning drainage, proper disposal of
garbage, construction of road and safety, and preventing any crimes that may
happen using resources. CHAPT
12. To allocate budget for future’s risks that will affect the community like
calamities and other threats.
13. To be a company of being good ambassador for the youth by sponsoring
advertisements and charity that will create awareness and benefits to
100,000 students using company resources.
14. To follow regulations pertaining to environmental policy set by the
government while saving energy using cost cutting measures on electricity
and other costs while maintaining the prescribed benefits for employees.
15. To spend advertising within the set percentage of budget vis-à-vis the
actual sale.
16. To collaborate and participate with neighboring establishment,
associations, and community for brighter future.
17. To avoid any engagement in corruption in any forms both internal and
external affairs.
18. To produce good quality products and obtain permits from the authority.
19. To respect beliefs and religions of employees by supporting them to
worship by allocating reasonable space within the office.
 PHILIPPINE COLLEGE OF SCIENCE AND TECHNOLOGY
Old Nalsian Road, Nalsian, Calasiao, Pangasinan, Philippines 2418
Tel. No. (075)522-8032/Fax No. (075)523-0894/Website: www.philcst.edu.ph
ISO 9001:2015 CERTIFIED, Member: Philippine Association of Colleges and Universities (PACU),
Philippine Association of Maritime Institutions (PAMI)

20. To start up business that requires sustainability while considering the risks
and possibility of calamities, epidemic, pandemic, and any threats. The
business must survive and be stable to help the community.
PALMA Analysis balance the decisions of leaders in the world which will bring
peace and sustainability of different organizations, and our planet. We cannot
deny on what is happening in our world. Let us always consider the reality
happening in both internal and external environment. Let us avoid selfishness
because after all, we are only “visitors” in this world. Contentment is the key
of happiness and eventually success in life. Be the kind of decision-makers and
doers who will bring goodness in the world. Finally, our PALMA Analysis
mantra is “Being good is being obedient”.