SUMMARY This is a Corporate Strategic Audit for SMART Communications, The Philippines leading Telecommunications Provider.

Previous and current practices that helped thrive where the Company is positioned at present are included in the discussions of this paper. This paper is divided into 3 broad parts, namely: (1) SMART Position and an external industry analysis, (2) Internal/ Company focused key business operations & issues and lastly, (3) Recommended Strategies per department. Note that The first part of the paper gives an overview of SMART Communications. It includes the vision, mission, credo and company values, the corporate leaders who are at the forefront of leading the Company and a discussion of the business model of SMART. This present the overall framework of the company and how it is able to manifest its Power to Lead in the industry it forms part of. After one has gained a good insight of the Company, the next part discusses the macro environment and how each of the factors may affect directly or indirectly, the overall operations of the Company. PEST Analysis which covers the PoliticalLegal, Economic, Socio- Cultural and Technological landscape play a significant role in understanding the behaviour of the industry. The first part is an overview of the Telecommunications industry in a global context. A brief analysis on the role of key factors is mentioned using Porters 5 forces as a framework for analysis. The second part is an introduction to the Philippine Telecommunications including the nature, structure, key players in the industry, market and mobile cellular market. A thorough analysis of the different business units have also been presented based on available online research documents and interviews conducted with SMART employees. The goals of each department have been presented, current strategies, key business issues and proposed strategies which SMART may consider for implementation.

Major Industry Groups under the Telecommunications Services Major Industry Groups 2005 Telecommunication s Services Top 18 Telecom. Companies Belonging to Top

Market Share in terms of sales

Net Income (in P 000)

Sales (in P 000)

5000 Corporations PLDT Smart Telecommunication s Globe Telecommunication s, Inc. Innove Communications Pilipino Telephone Corporation Bayan Telecom Inc. Digitel Mobile Philippines Other Telecom. Companies Radio Communications of the Philippines Bayan Telecom Holdings Corporation Source One Communications Asia I-Contacts Corporations (Philippines) Diversified Technology Solutions Crescent Services (Philippines) Telecom Concepts Inc. Others Total TOTAL

28.91% 27.54% 22.22% 7.13% 5.73% 2.34% 1.34% 4.80% 0.32% 0.28% 0.28% 0.27% 0.27% 0.22% 0.21% 1.86% 100%

20,229,000 22,917,000 8,572,316 3,867,071 13,459,900 (689,995) (1,369,359)

68,464,000 65,229,000 52,615,816 16,882,073 13,566,700 5,531,151 3,176,607

117,503 100,764 71,680 51,500 15,595 74,365 487 67,636,158

763,006 673,392 661,722 650,033 645,727 513,674 506,918 236,841,071