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Company's Policies. San Miguel Corporation. (n.d.). Retrieved September 18, 2021, from https://www.sanmiguel.com.ph/page/company-policy.

Innovative and Inclusive Systems. San Miguel Corporation. (n.d.). Retrieved September 18, 2021, from https://www.sanmiguel.com.ph/stories/innovative-and-inclusive-systems.

Using the Resource-based view strategy for a competitive advantage. Resources Library. (2021, June 11). Retrieved September 18, 2021, from https://www.saviom.com/blog/using-the-resource-based-view-strategy-for-competitive-advantage/.

Vasquez, C. T. (2019, October). (dissertation). Small Business Restaurant Owners' Financing Strategies for Sustainability. Walden University. Retrieved September 18, 2021, from https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=8846&context=dissertations.

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[DISCUSSION] Going back to Barney's postulated fundamental aim of the approach...

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[DISCUSSION] Going back to Barney's postulated fundamental aim of the approach...

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...we also recognize that one of SMC's objectives include identifying and pursuing synergies across their businesses through vertical integration, platform matching and channel management.

As it is a corporation that is a conglomerate of mostly manufacturing companies, they would have to integrate their strategies in handling their physical capital with their human and organizational capital, which highlight their aim of creating a strategic fit along with their effective deployment of [mostly, human] resources.

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The specified mechanisms are specific to the foundation of the resource-based strategy, whereas the workforce is recognized as the prime driver of the company. For the SMC, this is integral as first, it is a corporation consisting of a big workforce at roughly 66,000 workers in the country which inherently require efficient management; and second, it is a manufacturing company that closely requires employee retention, productivity and competency to keep the operations at optimal and that the knowledge to operating these production practices and the skill base that are necessitated for these are maintained and simultaneously updated and developed. Thus, the allocation of the listed resources, from the physical capital down to the organizational capital, should ultimately lead to the crafting and sustaining the company's competitive advantage.

In a nutshell, the long-standing reputation of SMC for more than a century can be attributed to the sustainability (both of the internal affairs and, consequently, the competitive market) built upon this strategy.

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[DISCUSSION] On the firm's heterogeneity and the focus on managing human resource

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[DISCUSSION] On the firm's heterogeneity and the focus on managing human resource

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SMC utilizes resource-based strategy through, specifically:

1. Current HR programs and policies

2. Training and Development

3. Rewards and Benefits

4. Retention

5. Performance Management

6. Compensation

...which are mechanisms that ensure employees' motivation, competence and development as a part of the company's main strategy to creating a competitive advantage. We would also have to recognize that managing and effective deploying of resources include providing the employees with rewards, benefits and compensation.

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One of the guiding principles of SMC is respect for people, authority and property, where it safeguards and maintain the confidentiality of knowledge or proprietary information on the Company’s products, formulations, trade secrets, business strategies, technologies, processes and systems.

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One of the guiding principles of SMC is respect for people, authority and property, where it commits to uplift the dignity of labor by encouraging each other to be the best in their fields.

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One of the guiding principles of SMC is meritocracy and passion for success, whereas they recognize and reward individuals and organizations on the basis of performance and results as a mechanism to drive precision in execution and competitiveness.

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The Corporation shall establish policies, programs and procedures for employees covering, among others, the following: (a) health, safety and welfare; (b) training and development; and (c) reward and compensation for employees, to encourage employees to perform better and motivate them to take a more dynamic role in the Corporation.

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The establishment of such evaluation system, including the features thereof, shall be disclosed in the Corporation’s annual report or in such form of report that is applicable to the Corporation. The adoption of such performance evaluation system must be covered by a Board approval.

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The Compliance Officer shall establish an evaluation system to determine and measure compliance with this CG Manual.

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The Board of Directors shall conduct an annual self‐assessment of its performance, including the performance of the Chairman, the President, individual members of the Board and Board committees. Every three (3) years, the assessment shall be supported by an external facilitator.

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The Board of Directors shall regularly carry out evaluations to appraise its performance as a body, and assess whether it possesses the right mix of backgrounds and competencies.

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Directors and key officers of the Corporation, including the Corporate Secretary and Compliance Officer, shall also be required to undergo annual training and continuing education programs to further their knowledge and assist in their development. The program should aim to promote effective Board performance and the continuing qualification of directors in carrying out their duties and responsibilities. The annual continuing training program is intended to ensure that all directors are continuously informed of the developments in the business and regulatory environments, including emerging risks applicable to the Corporation. The training should involve courses on corporate governance matters relevant to the Corporation, including audit, internal controls, risk management, sustainability and strategy.

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This video showcased SMC's compensation for their employees during the pandemic, along with their donations for varied supported communities as well as the made donations for the frontliners.

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The San Miguel Corporation Deserves Our Praise

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The San Miguel Corporation Deserves Our Praise

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The San Miguel Corporation Deserves Our Praise

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Ligtas Lahat: SMC pushes to protect its employees nationwide from COVID-19

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Ligtas Lahat: SMC pushes to protect its employees nationwide from COVID-19

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Ligtas Lahat: SMC pushes to protect its employees nationwide from COVID-19

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Incorporating this framework into the workings of SMC:

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SMC strong social responsibility commitment contributes to better employee retention, resulting to a considerable reduction in turnover and training cost. Employees normally remain working with the corporation because of their feeling that SMC cares. Employee programs that help reduce absenteeism actually save the Corporation money as they encourage increased in productivity. On the home font, programs that address employee welfare instill a sense of pride in the people for being part of SMC.

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This program is being maintained and administered by the Corporation which has its own clinic and accredited third party medical personnel. The plan provides for hospitalization and medical benefits under the plan for qualified employees. The employee may enjoy the benefits under the plan as long as he has accrued sick leave credits. The following are provided: free hospitalization, medical consultation, medicines and medical services.

Health and Welfare programs for dependents, provided that the dependents are registered with the Corporation. The plan covers hospitalization, dental, diagnostic procedures, and out patient services. The employee and the Corporation share on a 50-50 basis the insurance premiums. The plan will answer for the room and board, doctors’ fees, surgical fees and miscellaneous expenses of eligible dependents, outpatient benefits, subject to certain limits.

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The Corporation provides comprehensive health care service directed at prevention of disease protection from health hazards and maintenance of health. Programs are also implemented to identify personal risks to health and to detect diseases in the early and most treatable stages.

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The Corporation’s training and education philosophy is defined in the following principles:

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The Corporation’s training and education philosophy is defined in the following principles:

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1. Business Contribution Training is anchored on the needs of the business and the impact on the Corporation’s bottom line. Education and training help optimize the productivity and performance of the employees of the Corporation and enable them to contribute to the profitability of the Corporation.

2. Alignment of Needs - The Corporation’s framework creates an environment where the employees have to opportunity to chart their own progress and development so long as these are supportive of the Corporation’s strategic directions.

3. Holistic Development Education and training is holistic and comprehensive in content and approach. The Corporation develops the employee not just on technical or functional expertise but on work support skills and leadership/management. In terms of approach, the Corporation utilized traditional classroom, experiential and mentoring approaches to deliver training.

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The Corporation recognizes its responsibility to shape and develop the knowledge, skills and attitudes of its human resources in order to contribute to the professional development of its employees and maintain its competitive position.

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The Corporation supports several wellness programs and maintains facilities that take care of the employees’ well being. These include the gymnasium, employee clinic and Management Training Center. The Corporation likewise encourages its individual business units to develop and implement employee wellness programs of their own provided they are consistent with Corporation policies and guidelines.

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(Note that these specificities are directly from SMC's official statements of vision, mission, core values and code of ethics via:

1. https://www.smfb.com.ph/files/reports/SMFB_CodeofBusinessConductandEthics.pdf

2. https://www.smfb.com.ph/files/reports/SMFB_Manual_on_Corporate_Governance2.pdf

3. https://www.sanmiguel.com.ph/page/company-policy

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Therefore, SMC's strategic decisions and choices will be different from their competitors in consideration of the mix in their resources that will create their competitive advantage in the market.

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This component assumes the organizational variations between companies in terms of their resources that are based on skills and capabilities. Further, that each firms, then, have varied mix of resources that lead to implementations of different strategic directions and choices that operate against others' under the same competition.

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...whereas this component assumes the exclusivity and that resources, most commonly intangible resources, cannot e transferred or replicated by other organizations.

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...whereas this component highlights skills and capabilities which include:

1. human resource activities

2. training and development

3. talent and skills

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As SMC is reliant on its resources, they must also be heterogeneous and immobile.

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[DISCUSSION] On the firm's tangible and intangible resources

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[DISCUSSION] On the firm's tangible and intangible resources

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These are namely the physical, human and organizational capitals utilized by the firm along with their integrated human resource strategies (which are to be further expanded into the immobility and heterogeneity components).

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1. Brand Reputation

2. Intellectual Property

3. Patent and Copyright

4. Goodwill

5. Trade Names

6. Customer Experience

7. Patented Technology and Trade Secrets

8. Marketing Content

9. Customer Lists

10. Licensing, Royalty and Standstill Agreements

11. Import Quotas

12. Franchise Agreements

13. Customer and Supplier Relationships

14. Marketing Rights

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1. Land

2. Materials

3. Supplies

4. Facilities

5. Infrastructures

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Flowchart for RBV.

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Resource-Based View (RBV) including VRIO 

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Resource-Based View (RBV) including VRIO 

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In navigating into the resource-based approach, we may also use Jay B. Barney’s VRIO Framework, a resource-focused strategic analysis tool to substantiate the necessity of San Miguel Corporation’s resources to the firm itself. It stands for Value of the resource, Rareness of the resource, Imitation Risk, and Organizational Competence.

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Further, Ahmad, Bosua, & Scheepers (2014) state that management capabilities, organizational processes, and employee knowledge, skills, and abilities that are unique and not easily duplicated by competitors— a firm’s internal resources— create the firm’s competitive advantage.

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Welnerfelt (1984) postulates that companies with valuable, rare, nonimitable and nonsubstitutable products and services are able to gain a competitive advantage and survive.

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In extension, the Resource-Based View (RBV) is utilized as the conceptual framework for the strategy.

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In this strategy, we are concerned with the enhancement of the human or intellectual capital of the firm.

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To create firms that are more intelligent and flexible by hiring and developing more talented staff, and by extending their skills bases.

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...that investment in people adds to their value in the firm.

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...that competitive advantage is obtained if a firm can obtain and develop human resources that enable it to learn faster and apply its learning more effectively compared to its rivals.

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These are addressed by increasing the firm’s strategic capability by developing managers and other staff whose skills are to be utilized in strategic planning and understanding key strategic issues.

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As Barney (1991) indicates, the fundamental aim of the resource-based strategy is to “develop strategic capability— achieving strategic fit between resources and opportunities, and obtaining added value from the effective deployment of resources”.