body mgt 8 strategic plan template1
DESCRIPTION
body managementTRANSCRIPT
NEW ERA UNIVERS ITY
This page is intentionally blank. Highlight this notice into default white font color prior
to printing.
NEW ERA UNIVERS ITY
I. Industry Analysis
A. Economic Forces
Consumers tend to spend more as the economy look
more favorable. Some of them do not only base their
decisions on the economic outlook of the country; they also
make decisions based on what the condition of the foreign
markets. Companies must always consider the economic
standing of their target market. Consumers’ income, savings,
debt and credit availability are all deciding factors in whether
they will be able to buy or not.
The economy of the Philippines is the 4th largest economy in
South East Asia and the 35th largest economy in the world by
purchasing power parity according to the World Bank in 2009. For
the first quarter of 2010, the economy grew by 7.3% which was
higher than the 3.6% forecast. At the end of the second quarter of
2010, GDP growth again exceeded expectations by coming in at
7.9%. According to IMF, the Philippines will be the second-fastest
growing economy among the ASEAN 5 in 2010 with a forecasted
growth rate of 7% after Thailand's 7.5%.
The good outlook of the economy for this year is a good sign
for Andok’s overall sales, for this may signify higher purchasing
capabilities for consumers.
Income Distribution
The different GDP per sector includes agriculture, industry
and service. Service sector shares the biggest part having 55.1%,
followed by the industry with 29.9% and then the agricultural
division contributing 14.9%. Summing this up, the total GDP
economic growth totaled 6.5%. Litson Manok Market is under of the
Food Industry. Food industry plays a big part in our society.
NEW ERA UNIVERS ITY
DAILY MINIMUM WAGE RATES
National Capital Region (NCR) a/
Per Wage Order No. NCR-15 b/
Effective 01 July 2010
Sector/
Industry
Minimum
Wage under
Wage Order
No. NCR 14
Basic
Wage
Increase
Under
W.O.
No. NCR
15
New Minimum
Wage Rates
Non-Agriculture P 382.00 P22.00 P 404.00
Agriculture
(Plantation and Non
Plantation)
P 345.00 P22.00 P 367.00
Retail/Service
Establishments
employing 15
workers or less
P 345.00 P22.00 P 367.00
Manufacturing
Establishments
regularly employing
less than 10
workers
P 345.00 P22.00 P 367.00
Debt Availability
The current debt of the Philippines in World Bank is
$53,140,000,000 which is lower from the previous years. Most
Filipinos are still in debt; debts on banks, companies, etc; and even
on loan sharks and individuals. Purchasing decisions of consumers
are affected for a portion amount of money must be allocated for
paying debts.
2
NEW ERA UNIVERS ITY
Credit Availability
Retail banking in the Philippines continues to grow, with
consumer loans accounting for only about 10% of total bank lending
and less than 5% of GDP. The consumption-driven nature of the
economy produces strong demand for consumer loans, with
personal expenditure making up 77% of GDP (Fitch Ratings 2006).
In return, banks have recently focused insistently on retail lending,
which is experiencing growth rates of more than 10% per annum.
An important determinant of consumer spending is access to
credit by consumers through various lending institutions. Higher
availability of credits means higher number of possible sources of
finances for consumers’ purchases.
Savings Availability
The Philippines has a relatively developed financial system
and a highly monetarized economy, with a ratio of savings in
banks/GDP of 75 percent.
Interviews revealed a widespread belief that Filipinos are
consumption-oriented, with little desire or capacity to save
according to Consultative Group to Assist the Poor (CGAP). In
contrast, Filipinos are thought by many using credit for daily needs.
However, evidences suggest that poor and low-income Filipinos do
save, or at least have the capacity to do so. Informal savings
mechanisms, like ROSCAs (called paluwagan or dajong) or stashing
money into alcancia bamboo poles or piggy bank at home, seem to
be widespread throughout the country. Self-help or solidarity
groups that conduct savings and credit activities are also common.
Market research by financial institutions provides further
evidence that low-income clients do save. A survey by a
microenterprise bank in the outskirts of Manila, for example,
revealed that 75 percent of respondents had savings in commercial
3
NEW ERA UNIVERS ITY
banks. Moreover, the majority of their interaction with banks
occurred in the context of saving rather than taking loans. In
contrast, a recent survey in smaller cities of the Philippines finds
that nearly two-thirds of people in urban areas keep their savings at
home. Only 9.7 percent save in rural banks, 2.2 percent in
commercial/thrift banks, and 9.4 percent in cooperatives.
The bottom line of all these facts, Filipinos do save. This
implies good purchase capabilities for Filipinos.
B. Social, Cultural, Demographic and Environmental Forces
Population
The Philippine, where several Andok’s stores are located, has
99,900,177. Approximately, 40,000,000 are the target consumers
of Andok’s. These people are those whose age range from 15-64,
from the working class to upper class, and live in areas where
Andok’s can be possibly found. Population growth rate is 1.931%.
Age structure
Andok’s buyers tend to cover the widest age range having
60.6% of the whole population. These are the buyers whose ages
are 15-64 years old. These are the consumers who have the
capacity to decide and to buy Andok’s products, thus they are the
most frequent buyers. The population of ages 0-14 years old,
making 35.2% which is second from the widest, is significant for
they have a moderate to high impact on the decision making of the
buyers, especially those who are in families. The portion which 65
years old and above covers, 4.1%, has so little effect for factors
4
NEW ERA UNIVERS ITY
such as capacity to buy (physically and financially), taste
preferences, food restrictions, and the likes.
Urbnanization
65% of Philippines’ total population is considered urban
population with 3% annual rate of change as estimated for the
years 2005 to 2010. This signifies a good opportunity for the
expansion of litson manok market. Income opportunities are
concentrated in urban areas, thus high number of sales can be
expected here. Consumers are capable of buying such products
with their good income. These make urban areas suitable for more
litson manok outlets.
Religions
Roman Catholics are 80.9%, Muslims 5%, Evangelical 2.8%,
Iglesia ni Kristo 2.3%, Aglipayan 2%, other Christian 4.5%, other
1.8%, unspecified 0.6%, none 0.1%. Differences in religion affect
the preference on some Andok’s products, but not its main menus
like litson manok and dokito frito which are chicken meats.
Filipinos as People
Filipinos place great importance on faith and education,
influenced by its history of Spanish colonization and American
occupation. Majority of Filipinos are Roman Catholics, with the
Church playing a significant role in the people’s social and cultural
lives. Only Mindanao, the southern island cluster in the country,
embraced Islam, which was introduced to the region by Arab
traders in the past.
Feasts and gatherings are very common on different groups.
Food is one of the main requirements of Filipino gatherings.
Adult literacy rate in the Philippines is among the highest in the
world, at about 95%. Proceeding to graduate school is popular
5
NEW ERA UNIVERS ITY
among middle- and upper-class Filipinos, especially those involved
in business. A typical school year begins in June and ends in March.
The official language used in both public and private schools is
English, but Filipino (mainly based in Tagalog) is widely spoken.
Filipinos As Partners
Filipinos give high importance to establishing good personal
relations with their business contacts. They are trusting and
friendly, and value affable but professional business relationships.
Nowadays, franchising of different businesses is very rampant in
the country, and most of them are food stalls.
Eating Habits & Hospitality
Naturally Filipinos are hospital and generous nation and also
love to eat. Food and diet is much important in their social life. The
usual eating schedule of Filipinos is they use to eat three meals per
day and snacks at two times between the day meals or merienda.
Poor families of Philippines eat rice, fish, vegetables and other
starchy diet. However at fiesta time all families love to enjoy meat.
Like many other nations, Filipinos like to offer extra food to
servants, hungry people and helpers.
Sauces, flavors and other spices are frequently used to
create good taste of food by professional cooks in Philippines.
Filipinos remain strict in eating in time meals of the day. They offer
the guests food and drink to entertain them. Filipinos are also very
respectful to food and don’t like to reject it if not like but eat little
amount of food and keep aside.
Filipinos love to eat, and since they're naturally hospitable
and gregarious, food is the basis of their social life. Because
the feeling of fulfillment after eating rice, their staple ingredient, is
6
NEW ERA UNIVERS ITY
relatively short-lived, they eat three meals a day and two snacks in
between.
Hospitality
A familiar person passing Filipinos who are eating will
automatically be invited to "come and eat." It's polite to say you've
already eaten. If people insist, or if there's an abundance of food
such as at a wedding or fiesta, then by all means participate. It's
the Filipino way, enabling the visitor to gauge whether an invitation
is genuine or not.
Travelers should always take into account the reverence
Filipinos have for food. Regular mealtimes are strictly observed.
When visiting a home, you'll be offered food and drink. It's polite
to wait to be urged to sit at the table or begin eating.
What to Eat
Though the Philippines has an abundance of fresh seafood
and a wide array of succulent tropical fruit, the daily food of the
common people tends to be uninspiring. An unusual feature of
Filipino cooking is the combination of major ingredients, e.g.,
chicken and shrimps, and pork and fish. An array of sweet morsels
is made from glutinous rice, while halo-halo is a common dessert
based on layers of preserved or sweetened fruit, gelatin, custard,
and crushed ice.
Rice is the basis and bulk of a Filipino meal, at breakfast,
lunch, and dinner. It's usually boiled to fluffiness, though the
previous night's rice may be fried with garlic for breakfast. Filipinos
can accept the simplicity of such fare as long as the rice is good.
Filipinos’ Spending Pattern
7
NEW ERA UNIVERS ITY
60% of family expenditures go to food, generally
speaking, for it is a necessity for everyone. This is an
opportunity for food industry.
Filipinos Getting More Health Conscious
Filipinos nowadays are becoming more health conscious due to
several types of diseases that can cause death at young age of
significant number of Filipinos. You can see even the low class
people becoming picky on what they eat and have some sessions of
exercise. While the middle class or high class, as well as low class
also in some cases, is going to different fitness facilities which is
booming industry. Nowadays, going to gyms is becoming very
trendy especially to teenagers. This phenomenon is somehow a
good thing for us Filipinos to observe and takes care of our health.
Trends
1) Ordinary Day. Average number of people comes to eat or
buy their food outside during breaks or meal times.
2) Weekends. Weekends are rest days for both workers and
students. Family day also happens during weekends.
People tend to eat or buy their food outside more often.
3) Occasions. Occasions like birthdays, anniversaries,
graduations and the likes lead consumers to eat outside.
4) Holidays. Almost the same as what happen during
weekends. During Christmas season, reunions,
celebrations, Christmas parties, and the likes happen.
Purchase of foods increase for such gatherings. 13th month
bonuses, aguinaldos, and OFWs’ return are also there.
5) Religious Events. Religious events like Ramadan and Holy
Week decrease the sales of meat and other foods. People
avoid eating meat and even fast during these times.
8
NEW ERA UNIVERS ITY
Natural Environment
Significant increase on the poultry production exists because
of the absence of bird flu issues, but still Philippines imports
chicken from other countries because of huge demands. This
implies shortage still.
Rosendo So, vice president of the National Hog and Poultry
Raisers Association of the Philippines, said the government
should instead provide more support for stakeholders in the
agricultural sector to attain food self-sufficiency.
"This year alone, the government allowed the importation of
97,197,041 kilograms of chicken, which [represents] about 31
per cent increase from the 67,264,871 kilograms in 2009," Mr So
said.
CHICKEN PRODUCTION in Philippines
According to the Philippine Bureau of Agricultural Statistics,
domestic chicken production increased by 1.53 per cent in 2009
and is projected to continue to expand again this year. Demand
for chicken meat is also forecast to rise this year as a result of
projected improvements in the Philippine economy and a
growing population. Higher inventory of layers and better egg-
laying efficiency were observed throughout the year.
Consumption
9
NEW ERA UNIVERS ITY
According to BAS, total annual demand in 2009 for broiler meat
reached nearly 689,000MT, up more than three per cent from the
previous year. Projected improvements in the Philippine economy as
well as population growth are expected to continue to push-up
consumption of chicken meat in 2010. Moreover, the continued high
retail price of pork may result in some shift from pork to chicken by
consumers.
Trade
The importation of chicken meat also increased by 47 per cent in 2009,
the majority of which came from the United States (41 per cent),
Canada (38 per cent) and Brazil (21 per cent). Imports of chicken leg
quarters, in particular, increased by 64 per cent, while imports of
mechanically deboned chicken, used mainly in the production of
hotdogs and processed meat products, increased by 45 per cent. In
2009, the Philippine Department of Agriculture (DA) approved special
importations of chicken of up to 8,000MT, exempt from special
safeguard duties, which contributed to the increase in chicken trade
last year.
Policy
WTO commitments
Since 2005, the DA has continued to maintain 10th or final-year
Minimum Access Volume (MAV) levels under its Uruguay Round
commitments. For fresh/chilled/frozen poultry HS 0207, the final-year
MAV was 23,490MT. The DA previously stated that it will continue to do
so until such time as a new WTO agreement is reached. In late 2007,
the DA announced that it would undertake a review of MAV distribution
guidelines in order to allow new entrants and more entities to
participate in the MAV system. In February 2009, after extensive and
10
NEW ERA UNIVERS ITY
spirited consultations with local stakeholders and main trading
partners, then Philippine Agriculture Secretary Arthur C. Yap
announced that the current MAV system would remain in place and
that no changes to would be initiated under his watch. A new
administration will take over starting July 2010.
Tariff rates
In-quota and out-of-quota tariff rates for MAV commodities have not
changed since 2005. On the other hand, 2009 tariff rates for ASEAN
countries have dropped to 20 per cent and are expected to reach 5 per
cent in 2010. For this year, MFN and AFTA-CEPT (ASEAN Free Trade
Agreement-Common Effective Preferential Tariffs) rates follow.
Special safeguards
In 2002, the Government of the Philippines imposed a price-based
special safeguard duty (SSG) on chicken under H.S. 0207.1400 (frozen
chicken cuts and offal). This has doubled the effective rate of
protection for all out-of-quota imports for these specific products. Last
year, the United States exported over $26 million worth of poultry
meat to the Philippines, the majority of which are chicken leg quarters
and other chicken cuts. The imposition of the SSG in 2002 was mainly
the result of intense political pressure from the domestic poultry
industry to keep low-priced chicken imports out.
C. Political, Governmental, and Legal Forces
The production, processing, distribution, retail,
packaging and labelling of food stuffs are governed by a mass
of laws, regulations, codes of practice and guidance. The
Bureau of Food and Drugs is concerned with the whole food
11
NEW ERA UNIVERS ITY
industry – from farming, food production and distribution, to
retail and catering. It addresses food safety issues at every
stage of the chain, providing information and guidance on
best practice and legal requirements.
Philippines - Regulations & Standards
The regulation of food in the Republic of the Philippines
is enshrined in the 1987 Philippine Constitution. Statutory
laws are also in place providing legal basis for the creation of
a regulatory agency, the Bureau of Food and Drugs (BFAD),
mandated to ensure the safety, efficacy and good quality of
all food products being made available to the general public -
"it is the policy of the state to ensure safe and good quality
food, drug and cosmetics and regulate the production, sale
and traffic of the same to protect the health of the consumer".
The most important of these laws is the Republic Act (RA)
3720 "Foods, Drugs, Medical Devices and Cosmetics Act".
Regulation is achieved through inspection and licensing of
food establishments, registration and market monitoring of
products, approval of product label prior to marketing, and
approval and monitoring of promotions and advertisements.
International standards and guidelines such as those
recommended by the WHO, USP or BP, FAO and Codex
Alimentarius are used as a basis in the formulation and
implementation of rules and regulations governing the
manufacture, importation, exportation, distribution, or sale of
12
NEW ERA UNIVERS ITY
food. In 2009 a new law was signed strengthening the
regulatory capacity of the BFAD to ensure the safety, quality
and efficacy of medicines and other health products in the
Philippines. Republic Act No. 9711, otherwise known as the
Food & Drug Administration Act of 2009, also renames the
BFAD as the Food & Drug Administration (FDA) with improved
administrative and technical capacity in the regulation of
food, drugs, cosmetics and device establishments and
products.
Regulatory Issues
To prevent the occurrence of unfair trade practices, the
government has implemented a series of policies to govern the
retail trade sector. Some of these policies include: The Price Act of
1991 (RA 7581) which protects consumers from price manipulation
such as hoarding, profiteering, and cartels; the Consumer Act of the
Philippines (RA 7394) which penalizes certain acts such as
deceptive, unfair, and unconscionable sales practices in both goods
and credit transactions. It is the Department of Trade and Industry
(DTI) which is tasked to implement these policies through their
consumer protection program.
Registration on BFAD
Establishments involved in the manufacture, packaging, re-
packaging, importation, exportation, distribution, and retailing of
processed foods, drugs, medical devices, in vitro diagnostic
reagents, cosmetics, and household hazardous substance products
must secure a License to Operate from BFAD.
A local company in the Philippines must secure a License to
Operate (LTO) from BFAD before applying for product registration.
13
NEW ERA UNIVERS ITY
All issuances and guidelines, checklists of requirements, and forms
pertaining to licensing of establishments and product registration
may be downloaded from the BFAD
Website: http://www.bfad.gov.ph.
Fees are listed in Administrative Order No. 50 s. 2001: Revised
2001 Schedule of Fees and Charges for the Corresponding Services
Rendered by the Bureau of Food and Drugs.
D. Technological ForcesE-commerce, specifically on line advertisements, is very
common nowadays. Looking to its significance on the
business world, e-commerce considered one of the fastest,
cheapest, and easiest ways to reach the consumers.
Different companies in Litson Manok market, especially
those which are well-known and in good financial condition,
use websites to market their products and services. In order
for this strategy to be successful, there must be a great
number of internet users. According to Yahoo, as of June
2009, 29.7% of the population or 29,700,000 are considered
internet users.
Technology brings significant benefits on the consumers and
the food industry by eliminating boundaries in quality, quantity and
reducing costs.
The food industry continues to develop by applying latest
technologies that produce us healthier, fresher and more varied
food. Nowadays, the food industry offers a huge variety of foods, at
a better quality and lower prices compared in the past. Thus, satisfy
a wider range of consumers.
14
NEW ERA UNIVERS ITY
Advanced technologies are used in all the parts of food
production. The first step is benefit on evaluating and improving the
quality of the raw ingredients used. Next, they're used in the
preparation stage such as shipping and handling of materials. The
last stage of processing food will make use of methods like
conservation and separation, possible adding new ingredients to
produce the final product.
The packaging process is now cheaper and more refined,
with the existence of new materials that can be used to wrap or
seal items. New machines are also used to create the packaging
and automate this process to take full advantage of efficiency and
diminish costs.
Food quality and safety have both improved because new
technologies allow the companies to easily follow the international
standards and regulations regarding the contents of products. They
strive to improve the processing of food, by using less harmful
chemical substances.
Currently, the food industry has been focusing and
discovering of new ways to produce healthy, ecological food, by
using natural ingredients.
Latest Technology Used on Litson Manok Market
Rotisserie is a way of roasting where meat is skewered on
a spit - a long solid rod used to hold food while it is being cooked
over a fire or roasted in an oven. The rotation cooks the meat
evenly in its own juices and allows easy way for
continuous basting if desired. It is a mechanical device used for
rotisserie cooking, or to a restaurant specializing in spit-roasted
meat and chicken.
15
NEW ERA UNIVERS ITY
Gross expenditure on R&D in Philippines for Food and Nutrition
Development
(Budget Appropriation from the Congress)
Republic of the Philippines
Republic Act No. 9970
GENERAL APPROPRIATION ACT
Fiscal Year 2010
FOOD AND NUTRITION RESEARCH INSTITUTE
A. PROGRAMS
I. General Administration and Support
a. General Administration and Support Services P
21,081,000
16
NEW ERA UNIVERS ITY
b. Sub-Total, General Administration and Support
21,081,000
--------------- --------------- ---------------
II. Operations
a. Research and Development Services on Food and Nutrition
40,942,000
b. Technical Services on Food and Nutrition
38,058,000
TOTAL NEW APPROPRIATIONS P 100,081,000
=============== ===============
===============
Special Provision(s)
I. General Administration and Support
a. General Administration and Support Services P
21,081,000
b. General management and supervision
18,467,000
E. Porter’s Framework
Andok’s Litson Manok
Porters Five-Force Model
17
New Entrants(Low)
- Chooks-to-go
NEW ERA UNIVERS ITY
Competition
Competition is very high in litchon manok market because of high
rivalry coming from low differentiation on the products and services being
offered. Even “pop- ups” chicken stores also take their place in the
market. These are individuals who have the machine, supplies, and
financial capability that allows them to operate a litson manok store.
Suppliers(Low)
Raw Chicken Meat Supplier
Supplier of Charcoal
Customers
(High)FamiliesProfessionalsStudentsCommutersPotential Franchisees Other customers
Competition(High)
Andok’sBaliwagSr. PedroMangboksChicBoy“Pop-ups” chicken
stores
18
Substitute(High)
- BBQ (includes Chicken Inasal)
- Sisig- Liempo- Other “unseen”
substitutes
NEW ERA UNIVERS ITY
Price challenge is a vital issue for the industry participants because
of the standardized products that often have nearly the same features.
Existing companies offer prices that have little differences. This adds up to
the stiff competition.
Andok’s Litson Corporation
ANDOK'S offers its patrons the best quality litson manok (roasted
chicken) and dokito frito (fried chicken). ANDOK'S now has approximately
150 SKUs (Stock-keeping unit) offered in the market, and is likely to grow
in order to meet the demands of its valued customers. ANDOK'S main
business thrust has always been to provide high quality products at
affordable prices.
Sr. Pedro
Sr. Pedro is founded by Mr. Pedro Molina, a native Filipino entered
in the world of business. In Manila alone, there are over 60 Sr. Pedro
outlets which make Sr. Pedro more competitive and competent. Sr. Pedro
is considered one of the leading fast casual restaurants in the country with
branches abroad and continues improving.
As such, Sr. Pedro focuses on inviting dynamic, responsible and
quality oriented people to join their company. They provide good working
environment and opportunity for personal, professional, and career
development. Sr. Pedro believes that the company should provide their
customers the right people for the right job. Their employees are
equipped with the necessary tools and knowledge to perform at peak
levels.
Baliwag Lechon Manok Inc.
Baliwag Lechon Manok Inc. is one of the largest companies in the
litson manok market in Philippines primarily selling litson manok, fried
19
NEW ERA UNIVERS ITY
chicken and litson baboy. In NCR alone, Baliwag has more than 120
branches as they were considered as the top selling litson manok because
of their secret ingredient pandan. They also started opening in food courts
of some malls like SM.
Mang Bok’s Manok
Mang Bok’s focuses on quality, cleanliness, and their very unique
way of packaging. The roasted products can be taken home in specially
designed styro-foam packages that are very hygienic and easy to carry.
Its mission is to provide customer with high quality thru value for
money and to improve on existing product lines thru continuing product
research and development. It aims to stay ahead of competition by
making the Mang Bok’s Manok name synonymous to high quality and
value. The management decided to further expand the business thru
franchising and aims to establish more outlets nationwide.
New Entrant
Despite of homogeneity of products offered, new entrants cannot
easily penetrate the market for competition is very high among Andok’s
and its competitors which have already established their name in the
market. High capital requirement also strengthens the entry barrier. In
addition, raw chicken meats are perishable. Proper management of raw
materials adds up to the difficulties for the new entrants. Improper
management can result to an immediate loss because of large costs.
Chooks-to-go took 7 years to have their good position in litson
manok market through its good advertising strategy and quality of
products. This can be proven by the increase of Chooks-to-go outlet.
Customers
20
NEW ERA UNIVERS ITY
Competition gives a high impact when it comes to the decision
making of the customers for they can control the litson manok market,
especially on the aspect of prices. On the other hand, consumers
determine the market share of the company. Customers also have a great
influence in the competition for they can strategically play the market
considering the high number of competitors offering same products. They
can easily switch from one company to another.
Naturally, Filipinos families love to eat together, students
(especially those in the college levels who can already afford to purchase
and always have the interest of eating together with friends, and the
professionals who already have the purchasing power which eventually
give them the greater decision power. Other customers include individuals
that cannot be classified under the given categories like out of school
youth, unemployed, but still have the capacity and interest to buy the
product because of factors such as financial stability, support, provision.
Suppliers
Existing players in litson manok market have dominance over their
suppliers. They cannot be controlled by any single supplier because raw
meat and other supplies that are needed for the completion of the product
are available in numerous numbers of suppliers locally and internationally.
Other barriers like government control over the prices and supply of raw
chicken meat limits the power of the supplier
Currently, Andok’s has four quality suppliers. They are not limited
by one supplier. Issues on supply and price change are controllable.
Substitutes
Though high number of competitors in litson manok market takes a
good position in the food industry, it has an equal power with that of the
substitutes. Litson manok market is just one of the several markets inside
the said industry. There is a wide variety of choices which Filipinos
21
NEW ERA UNIVERS ITY
consider when they are deciding what to serve on their dining tables or
lamesa.
Other “unseen” substitutes include palabok, spaghetti, pancit, and
the likes that can be served for numbers of people.
F. Company ProfileAndok’s is primarily engaged in the business of selling
litson manok or roasted chicken. Over time, ANDOK'S had
evolved and added a new concept to its main business of
offering roasted chicken, and that is the concept of specialty
grocery store offering a host of products, including beer, an
assortment of beverages, rice, sugar, and other grocery
products.
Andok’s now has approximately 150 SKUs (Stock-
keeping unit) offered in the market, and is likely to grow in
order to meet the demands of its valued customers. ANDOK'S
main business thrust has always been to provide high quality
products at affordable prices. From the first ANDOK'S outlet
located at Baler Street corner West Avenue Quezon City way
back 1985; the Company has now grown into more than 300
stores across the country. These stores are strategically
located in key municipalities nationwide.
It was in July 2002 that ANDOK'S opened its first store in
Mabolo and Mactan Cebu. Eleven outlets were later
established within two years, all strategically located along
the major localities in Cebu area.
22
NEW ERA UNIVERS ITY
In September 2004, ANDOK'S opened its first dine-in
store in D'Mall located at Boracay Island, province of Aklan.
Soon thereafter, four dine-in stores opened in a span of less
than a year. To date, Andok's has a total of six stores in the
island of Boracay.
ANDOK'S saw the great potential of Panay Island, and
later on opened two dine-in stores in Iloilo and in Kalibo during
the last quarter of 2005. The newly opened stores emerged as
among the top ten stores of the Company nationwide as of to
date.
Having seen the excellent sales performance of dine-in
stores in Panay Island, the Company is now gearing towards
the opening of dine-in stores nationwide. The Company
opened in Market Market mall, ANDOK'S first dine-in store in
Metro Manila. Two outlets in Baguio City were converted into
dine-in stores in early 2006. To date, the Company has more
than 60 dine-in stores nationwide, namely Robinson's
Novastop, Olongapo, Tagaytay, SM City Lipa Batangas,
Baclaran, Tacloban Palo, Tacloban RTR, Baguio Session Road,
Harrison, Dampa Farmers, Stop & Shop, Mactan Cebu,
Mandaue Cebu, among others.
The success of Andok's in almost twenty five years of
operations has given us the capability to pursue expansion. They
take pride in having a capable and strong retail organization that is
structured for efficient and systematic franchise support. Our Metro
Manila commissary has acquired "AA" standard for Good
23
NEW ERA UNIVERS ITY
Manufacturing Practices (GMP) compliance, while our Iloilo
commissary has been nominated for "AAA" standard for GMP. This
enforces that we can meet the daily requirements of our
franchisees and consumers.
G. Products and Services
Litson manok - A classic, juicy, signature dish of Andok’s from a specially blended marinade and stuffed with
tanglad, traditionally roasted until golden brown with distinct Andok’s aroma and taste
Litson Liempo - An aromatic and luscious grilled pork belly, crispy on the outside but juicy on the inside with distinct Andok’s Liempo aroma and taste
Dokito frito - Crispy and juicy choice cut breaded fried chicken with distinct Andok’s Dokito
Frito aroma and taste
Crispy pata - Deep fried pork leg with crunchy rind and soft and moist meat inside and distinct Andok’s Crispy Pata aroma and taste
Litson Bangus - Char-grilled boneless fish stuffed with flavored onions and tomatoes with distinct Andok’s Litson Bangus aroma and taste
Porkcharap - Porkchops crisply coated in palatable crumbs with distinct Andok’s Pork
24
Products
FAVORITES
NEW ERA UNIVERS ITY
Charap aroma and taste
BBQ - Sweet and spicy grilled lean pork cuts with distinct Andok’s Barbeque aroma and
taste
BBQ Liempo - Sweet, juicy and tender pork belly charcoal grilled with distinct Andok’s Barbeque Liempo aroma and taste
Litson kawali - Fried pork belly with crispy skin and tender meat and distinct Andok’s
Litson Kawali aroma and taste
Kawali royal - Reinvented twist of traditional Litson Kawali in a special mix of leeks with distinct Andok’s Kawali Royal taste and aroma
Bistek Tagalong - Scrumptious combination of beef and onions and
special sauce with distinct Andok’s Bistek Tagalog taste and aroma.
Beef Rice - Beef slices served in enticing sauce and topped sesame seeds and spring onions with distinct Andok’s Beef Rice taste and
aroma
25
NEW ERA UNIVERS ITY
Pork Sinigang - Special mix of tamarind soup base, fresh vegetables and pork slices
with distinct Andok’s Pork Sinigang taste and aroma
Chopsuey - An appetizing combination of fresh stir-fried with distinct Andok’s Chopsuey taste
and aroma, a favorite dish of health conscious Pinoys
Bicol Express - Spicy stew made from long chilies, string beans, shrimp paste and pork with distinct
Andok’s Bicol Express taste and aroma
Sisig - Chopped maskara and chicken liver enhanced with secret spices and flavoring with distinct Andok’s Sisig taste and aroma
Inasal - A tempting new dish, full of interesting flavor and texture enhanced with
secret spices and flavorin
26
NEW ERA UNIVERS ITY
Dokito Meal - Andok’s Dokito Frito with rice and gravy
Prokcharap Meal - Andok’s Porkcharap with rice and gravy
BBQ Meal - Andok’s Barbeque on stick with rice and sweet and sour sauce
BBQ Liempo Meal - Andok’s Barbeque liempo chopped into bite-size pieces with rice and sweet and sour sauce
27
Afforda Meals
Whole day agahan
NEW ERA UNIVERS ITY
Breakfast style combination of marinated and fried boneless milkfish, rice and fried egg with distinct
Andok’s Daing na Bangus aroma and taste
Breakfast style combination of cured beef slices, rice and fried egg with distinct Andok’s Tapa Agahan aroma and taste
Breakfast style combination of brine-cured beef brisket, rice and fried egg with distinct Andok’s Corned Beef aroma and taste
Breakfast style
combination of sweet cured meat, rice and fried egg with distinct Andok’s Tocino Agahan aroma and taste
Breakfast style combination of sausage, rice and fried egg with distinct Andok’s Langgonisa aroma and taste
Breakfast style combination of Lucban sausage, rice and fried egg with distinct Andok’s Lucban Langgonisa aroma and taste
Breakfast style combination of hotdog, rice and fried egg with distinct Andok’s Kenkoy aroma and taste
28
NEW ERA UNIVERS ITY
Meat stuffed steamed bun with distinct Andok’s Siopao taste and aroma
NEW! Chocolate stuffed steamed bun with distinct Andok’s Chocopao taste and aroma
Spaghetti NEW! Native rice cake with distinct Andok’s Bibingka Espesyal taste and aroma
Mais con yel - An energizing dessert with creamy corn and milk, enough sweetness that will truly bring out the
sweetness inside you
Banana con yelo - A simple yet matchless, combination of fresh banana and milk
Rich and creamy custard dessert layered with soft caramel on top with distinct Andok’s Leche Flan aroma and taste
29
Merienda
Desserts
Services
NEW ERA UNIVERS ITY
Franchise- Andok's offers two franchise formats: Take-out and Dine-in. Both offer the
same great tasting and affordable food Filipino families have come to love
through the years.
- Recently, Andok’s offers a franchise in a format of food stalls in places like
LRT stations.
Delivery
- The 24-hour delivery service of Andok’s is concentrating in all areas
of Makati City and it has its own call center to receive orders. The
hotline number is 844-4444 with a minimum order of only Php
150.00.
H. Organizational Structure
The organizational structure of Andok’s Corporation falls
under traditional-functional structure. In this structure, teams or
groups are created based on a common function which follows the
bottom-up manner. It is a result of functional areas such as
marketing, finance, human resource, and the likes that are
coordinated by the top level management.
I. Vision, Mission, and Objectives
ANDOK’S CORPORATE VISION
To be acknowledged as a Homegrown Legend in the Filipino
food tradition.
30
NEW ERA UNIVERS ITY
To be globally recognized as the Supreme Leader in the
Roasted Chicken industry.
To be the most loved and popular Filipino food brand in the
Philippines and abroad through aggressive expansion and
continuous innovation in terms of product development and
service excellence.
To be the leading quick service restaurant by continuously
providing our customers the best quality food, value for their
money and excellent customer service.
To provide every Filipino home the joy of family ties by giving
them convenience in the availability of all-time favorite Filipino
dishes.
MissionAndok’s general mission is two- fold, with each being an
integral to our success as the next.
Product Mission- Ensure availability and quality of our
products through innovation and product leadership.
Economic Mission- Operate and grow at a profitable
rate through sound economic decisions. Plan and
implement systematic strategies in order to explore our
unrealized potentials for bigger opportunities, higher
revenue and immense earnings.
II. External Factor Evaluation (EFE Matrix)
Key Internal Factors Weight
Rating
Weighted
ScoreOpportunity1. Increasing Urban Population2. Increasing demand for food stalls3. Filipinos culture and spending pattern
0.200.230.15
344
0.600.920.45
31
NEW ERA UNIVERS ITY
Threats1. Filipinos becoming more health conscious2. Abrupt Innovation3. Intense competition4. Inflation rate
0.120.050.150.10
1122
0.120.050.300.20
Total 1.00 2.64* Based on Industrial Analysis
III. Internal Factor Evaluation (IFE Matrix)
Key Internal Factors Weight
Rating
Weighted Score
Strengths1. Good Financial Performance and Capacity2. Quality Suppliers3. Established brand credibility
0.300.250.15
443
1.201.000.45
Weaknesses1. Weak Management Information System2. Old outlet designs and Packaging 3. Deficient employees training program offered
0.150.100.05
211
0.300.100.05
Total 1.00 3.10* Based on Internal Analysis
IV. Competitive Profile Matrix (CPM Matrix)
ANDOK’S SR. PEDRO MANGBOK’S BALIWAG
Critical
Success
Factor
Weigh
ts
Ratin
g
Tot
al
Ratin
g
Total Rating Total Rating Tota
l
Accessibility 0.12 4 0.48 3 0.36 3 0.36 3 0.36
Customer
loyalty
0.12 4 0.48 3 0.36 3 0.36 4 0.48
Location 0.12 3 0.36 2 0.24 2 0.24 3 0.36
Nutrition 0.10 3 0.30 3 0.30 3 0.30 3 0.30
Packaging 0.08 3 0.24 3 0.24 4 0.32 3 0.24
32
NEW ERA UNIVERS ITY
Price
competitive
0.10 3 0.30 4 0.40 4 0.40 3 0.30
Processing 0.07 3 0.21 3 0.21 3 0.21 3 0.21
Product
quality
0.10 4 0.40 3 0.30 3 0.30 4 0.40
Promotion 0.07 3 0.21 2 0.14 2 0.14 3 0.21
Taste 0.12 4 0.48 4 0.48 3 0.36 3 0.36
Total 1.00 34 3.46 30 3.03 30 2.99 32 3.22
These companies are great competitors for Andok’s Litson Corporation.
Though they are considered competitors, Andok’s Litson Corporation can
formulate strategies based from their performance to improve the company.
There are ten critical success factors for liston manok market:
accessibility, customer loyalty, location, nutrition, packaging, price
competitiveness, processing, product quality, promotion, and taste. The main
competitors are Mang Bok’s, Sr. Pedro, and Baliwag which backgrounds are
discussed.
High Competition is very visible in this matrix, especially between Baliwag
and Andok’s. For the overall rating, Andok’s gets the top evaluation of the
customers with 3.46, followed by Baliwag with 3.22, Sr. Pedro with 3.03, and
Mang Boks with 2.99.
This implies that Andok’s must maintain its performance in the market.
Improvements on the different factors where Andok’s are weak will be the best
strategies to retain its position.
V. Threats Opportunities Weaknesses and Strengths (TOWS Matrix)
Strength1. Good Financial
Performance and Capacity
Weakness1. Weak
Management Information
33
NEW ERA UNIVERS ITY
2. Quality Suppliers
3. Established brand credibility
System2. Deficient
employees training program offered
3. Old outlet designs and Packaging
Opportunity1. Increasing
Urban Population
2. Increasing demand for food stalls
3. Filipinos culture and spending pattern for food
SO Strategies1.Additional outlets
in urban areas2.Add food stall
outlets 3.Explore internet-
based marketing
WO Strategies1.Invest in a good
managing info system
2.Train staffs with the required technical capabilities
3.Improve outlet designs and packaging
Threats1.Filipinos
becoming more health conscious
2.Abrupt Innovation
3.Intense competition
4.Inflation rate
ST Strategies1. Additional more healthy products2. Make an intense product identity3. Maintain product quality and health benefits awareness
WT Strategies1. Invest in a good managing info system2. Provide a good employee training program3. Improve packaging and overall design
In general terms, Market Development, Product Development and Market Penetration are the strategies which are appropriate for the existing internal strengths and weaknesses, and external opportunities and threats.
SO StrategiesAdditional outlets in urban areas- Andok’s Litson Corporation must
explore urbanizing places where they can strategically place their
outlets.
Add food stall outlets- Huge number of commuters produce a great
demand for Andok’s food stalls. Expansion of market in this form will
also add to product and service differentiation.
34
NEW ERA UNIVERS ITY
Explore internet-based marketing- E-commerce is one of the
most efficient and fastest way to reach the consumers. Andok’s
must explore other way beyond their existing website, which
costs can be covered by their finances.
WO Strategies Invest in a good managing info system- A good network
consolidation can give a significant help in the whole operation of
Andok’s Corporation. This can connect store networks via
broadband or frame- relay. This project allows fast transfer on
information from the head office to the different branches
nationwide. Examples of this information are announcements,
price updates, memos, suppliers’ update, and email. This project
will not just benefit the company, but the millions of customers,
as well.
Train staffs with the required technical capabilities- Staffs
must be equipped with necessary training to enhance overall
performance and image of the company. This will also increase
employee retention in the company.
Improve outlet designs and packaging- Improve company
image through outlet innovation. Store sanitation must also be
considered. Develop food packaging by using paper bags and
banana leaves to be more eco-friendly.
ST Strategies Additional healthy menu- Andok’s can cater additional healthy
menu, especially on dine-in store. This will give a room for
“healthy eater” consumers.
Make an intense product identity- Andok’s must intensify
their campaign to maintain their position as “Pambansang Litson
35
NEW ERA UNIVERS ITY
Manok”. Delivery must also be available in other outlet aside
from Makati to increase service differentiation. Delivery during
weekends and holidays can be introduced to add convenience for
customers.
Increase product quality and health benefits awareness-
Andok’s products are in good quality and contain health benefits.
It is a good strategy to emphasize these to combat the high
number of competitors. This can be done through promotions
and labeling.
WT Strategies Invest in a good managing information system
Provide a good employee training program
Improve packaging and overall design
VI. Space Matrix
INTERNAL STRATEGIC POSITION
FINANCIAL STRENGTHS RATING
1. Working capital 6
2. Liquidity 4
3. Profitability 6
4. Return on Investment 4
TOTAL 20
FS average (20/4) 5
COMPETITIVE ADVANTAGE RATING
1. Market share -2
2. Product quality -2
3. Control over suppliers and distributors -2
36
NEW ERA UNIVERS ITY
4. Financial Stability -2
TOTAL -8
CA average (-8/4) -2.0
EXTERNAL STRATEGIC POSITION
ENVIRONMENT STABILITY RATING
1. Technological Changes/ Innovation -4
2. Competitive Pressure -1
3. Demand variability -3
4. Price range on competing products -3
TOTAL -11
ES average (-11/4) -2.75
INDUSTRIAL STRENGTHS RATING
1. Growth potential 6
2. Profit potential 6
3. Resource Utilization 6
4. Productivity 6
TOTAL 17
IS average (24/4) 6
Ratings of this matrix are based on different analysis on the internal and financial condition of the company, as well as the external and industry condition. Computations are made for financial analysis to make the ratings more accurate.
37
NEW ERA UNIVERS ITY
Y-axis: 5.0 (FS) – 2.75 (ES) = 2.25X-axis: 6 (IS) – 2 (CA) = 3.0
+6
+5
+4
+3
(3.0, 2.25)+2
+1
+1 +2 +3 +4 +5 +6
The result on the SPACE Matrix signifies that the company is financially strong that has achieved major competitive role in a growing and stable industry. In addition, the company is in good position to use internal strengths to take advantage of external opportunities, overcome internal weaknesses, and avoid external threats. Backward, Forward, and Horizontal Integration, Market Penetration, Market Development; and Product Development are possible strategies.
38
FS
IS
ES
CA
NEW ERA UNIVERS ITY
VII. Boston Consulting Group (BCG Matrix)
BCG Analysis
Since Andoks Litson Corporation is a product base company, this BCG
Matrix is based on the sales ability of the products. Product development
is one of the strategies applied here when it comes to their products.
Market Penetration and Market Development are also applied as they offer
these products in outlets that open and to food stall which is a new format
of their outlets.
o Star – People often buy products that are on star quadrant. These
include Litson Manok, Dokito, Pork Charap and Liempo. These are
the main products that generate a big amount of income which
Andok’s offers to their customers.
o Cash Cows – Even though Andok’s has a large market share in the
business compared to other litson manok company, the growth of
39
Litson ManokDokitoPork CharapLiempo
Bistek TagalogPork SinigangSisig
Bicol ExpressBibingkaChocopao
NEW ERA UNIVERS ITY
these products, Bistek Tagalog, Pork Sinigang, and Sisig, are
lesser.
o Question Marked –Bicol express, Bibingka and Chocopao are the
newest product of Andok’s. Right now, the growth and market
share are still unstable and can result to decline of these products
when the customer feedback is negative.
VIII. Internal-External (IE Matrix)
The IFE Total Weighted Score
The EFE
Total
Weighted
Score
Based
on the IE matrix, the company falls on quadrant II. Main strategies
such as Backward, Forward, and Horizontal Integration; Market
Penetration; Market Development; and Product Development can be
used to improve sales. These alternative strategies will be further
evaluated on the next matrices and analysis.
IFE 2.15
EFE 3.3
STRONG
3.0 to 4.0
AVERAGE
2.0 to 2.99
WEAK
1.0 to 1.99
HIGH
3.0 to 4.0I II III
MEDIUM
2.0 to
2.99
IV V VI
LOW
1.0 to
1.99
VII VIII IX
40
NEW ERA UNIVERS ITY
IX. Grand Strategy Matrix (GSM Matrix)
This signifies that Andok’s Litson Corporation is in an excellent
strategic position. It is capable of taking advantage of the existing
external opportunities. Andok’s can do continued concentration on
current products and market. Market Development, Market
41
WEAKCOMPETITIVE
POSITIONSTRONG
COMPETITIVEPOSITION
SLOW MARKET GROWTH
RAPID MARKET GROWTH
Quadrant 2
Quadrant 3 Quadrant 4
Quadrant 1
NEW ERA UNIVERS ITY
Penetration, and Product Development are the corresponding
strategies to obtain that. Backward, Forward, and Horizontal
Integration can also be done.
X. Table of Strategy for the Matching Stage
MATRIX
Recommended Strategy Total
TOWS MARKET DEVELOPMENTPRODUCT DEVELOPMENTMARKET PENETRATION
BACKWARD INTEGRATION= 3
FORWARD INTEGRATION= 3
HORIZONTAL INTEGRATION= 3
MARKET DEVELOPMENT= 5
PRODUCT DEVELOPMENT=5
MARKET PENETRATION= 5
SPACE BACKWARD INTEGRATIONFORWARD INTEGRATION
HORIZONTAL INTEGRATIONMARKET DEVELOPMENT
PRODUCT DEVELOPMENTMARKET PENETRATION
IE BACKWARD INTEGRATIONFORWARD INTEGRATION
HORIZONTAL INTEGRATIONMARKET DEVELOPMENT
PRODUCT DEVELOPMENTMARKET PENETRATION
GSM MARKET DEVELOPMENTMARKET PENETRATION
PRODUCT DEVELOPMENTBACKWARD INTEGRATIONFORWARD INTEGRATION
HORIZONTAL INTEGRATION
BCG MARKET DEVELOPMENTPRODUCT DEVELOPMENTMARKET PENETRATION
In summary, these are the strategies suggested in different matrices
used: Backward, Forward, and Horizontal Integration, Market Penetration,
Market Development, and Products Development.
42
NEW ERA UNIVERS ITY
Among these strategies, Market Penetration, Market Development, and
Product Development are the preferred ones, and the researchers agree with
it. Andok’s Litson Corporation is in good financial condition, but its extra
resources cannot perform Integration strategies at the same time. Such
strategies demand for more financial support. In addition, Market Penetration,
Market Development, and Product Development are timelier to use considering
the existing forces in the environment.
Example of Integrations strategies is Andok’s having its own
Research and Development Department, which is a Backward
Integration. At present, Andok’s contract with research firms when
necessary. Having own R&D needs a financial resources for investment
and maintenance. There is no significant need for this department at the
moment also.
43
NEW ERA UNIVERS ITY
XI. Quantitative Strategic Planning Matrix (QSPM Matrix)
AS= Attractiveness Score; TAS= Total Attractiveness Score
AS: 1= Not Attractive 2= Somewhat Attractive 3= Reasonably Attractive 4= Highly Attractive
Key Factors Product Development
Market Development
Market Penetration
Opportunities
Weight AS TAS AS TAS AS TAS
1.Increasing Urban Population
2.Increasing demand for food stalls
3.Filipinos culture and spending pattern
0.20
0.25
0.15
4
4
4
0.80
1.00
0.60
4
4
4
0.20
1.00
0.60
4
4
4
0.20
1.00
0.60
Threats1.Filipinos
becoming more health conscious
2.Abrupt Innovation
3.Intense competition
4.Inflation rate
0.10
0.05
0.15
0.10
4
3
4
2
0.40
0.15
0.60
0.20
3
4
4
3
0.30
0.20
0.60
0.30
2
2
4
3
0.20
0.10
0.60
0.30
TOTAL 1.00 3.75 3.20 3.00
44
NEW ERA UNIVERS ITY
Key Factors Product Development
Market Development
Market Penetration
Opportunities
Weight AS TAS AS TAS AS TAS
Strengths1. Good
Financial Performance and Capacity
2. Quality Suppliers
3. Established brand credibility
0.30
0.25
0.15
4
4
4
1.20
1.00
0.60
4
4
4
1.20
1.00
0.60
4
4
4
1.20
1.00
0.60
Weakness1.Weak
Management Information System
2.Old outlet designs and Packaging
3.Deficient employees training program offered
0.15
0.10
0.05
1
2
2
0.15
0.20
0.10
1
2
1
0.15
0.20
0.05
1
2
1
0.15
0.20
0.05
TOTAL 1.00 3.25 3.20 3.20Sum Total Attractiveness Score
7.00 6.40 6.20
45
NEW ERA UNIVERS ITY
As seen in the above matrix, product development strategy is the most
attractive strategy among the three strategies, followed by market
development and market penetration strategy respectively.
XII. Summary
Andok’s Litson Corporation is one of the leading companies in the
litson manok market. Having a long existence in the market, it already
made its name established as it does improvements to continually occupy
the great part of the market share. With its distinct strengths out of good
management and strategies, the company is in competitive position to
overcome external threats, take advantage of the opportunities, and
improve different weaknesses.
Baliwag, Sr. Pedro and Mang Bok’s are its main competitors. Each of
these companies has great share in the market and its own advantages
and strengths, but Andok’s can compete with them and possibly acquire
the greatest share in the market as best strategies are applied
appropriately. The Philippines’ demographics, technological, natural,
economical, and political environment seems to be favorable for the
possible strategies to be done.
Being analyzed with different matrices, strategies such as
Backward, Forward, and Horizontal Integration, Market Penetration,
Market Development, and Product Development are suggested. Market
Penetration, Market Development, and Product Development are more
recommended to be implemented because of factors such as financial
capability and timeliness. In addition, these strategies are aligned with
vision and mission of the company.
46
NEW ERA UNIVERS ITY
Researchers suggested specific tactics to expound the strategies
further.
XIII. Conclusion
Andok’s Litson Corporations can be considered one of the
strongest players in the litson manok market. The company is in
good position to use internal strengths, such as financial
stability, established name, and the likes, to take advantage of
external opportunities, overcome internal weaknesses, and avoid
external threats, thus a very competitive company.
After analyzing the different factors with the help of different
matrices, Backward, Forward, and Horizontal Integration, Market
Penetration, Market Development, and Product Development
come up as suggested strategies
Though all of these are possible, it is more appropriate to
apply Market Penetration, Market Development, and Product
Development as main strategies to improve the sales of Andok’s
Litson Corperation. These strategies best suit the existing forces
in the environment, culture of the consumers, and trends in
Philippines.
47
NEW ERA UNIVERS ITY
There is a great chance to dominate the market as the
company implement these strategies.
XIV. Recommendation
As seen to TOWS Matrix, the researchers recommend the
following tactics for the company:
First, the company may put additional outlets in urban areas. Andok’s
Litson Corporation must explore urbanizing places where they can
strategically place their outlets to do this. Potential franchisees in those
places must be encouraged more.
Second, Andok’s may add food stall outlets, as they started it already.
Huge number of commuters produces a great demand for Andok’s food
stalls. Expansion of market in this form will also add to service
differentiation.
Third, the company is capable of exploring internet-based
marketing. Based on the analysis on technological environment,
populations of internet users, in offices or homes, are continually
increasing. E-commerce is one of the most efficient and fastest
ways to reach the consumers, thus used by different companies.
Andok’s must explore e-commerce beyond their existing website,
which costs can be covered by their finances.
Fourth, invest in a good managing info system. A good network
consolidation can give a significant help in the whole operation of Andok’s
Corporation. This can connect store networks via broadband or frame-
relay. This project allows fast transfer on information from the head office
to the different branches nationwide. Examples of this information are
announcements, price updates, memos, suppliers’ update, and email. This
48
NEW ERA UNIVERS ITY
project will not just benefit the company, but the millions of customers, as
well. Staffs should also be trained with the required technical capabilities.
This will enhance overall performance and image of the company and will
also increase employee retention in the company. These will support the
company as they apply Market Penetration, Market Development, and
Product Development. The success of the strategy implementation will be
based from the performance of the manpower on as how they apply it.
Fifth, improve outlet designs and packaging. Andok’s Litson
Corporation may improve company image through outlet innovation. Store
sanitation must also be considered. Developing food packaging by using
paper bags and banana leaves to be more eco-friendly is also suggested.
In relation with developing food packaging, sixth, the
company may increase product quality and health benefits
awareness. Andok’s products are in good quality and contain health
benefits. It is a good strategy to emphasize these to combat the
high number of competitors. This can be done through promotions
and labeling. Examples are putting phrases in the packaging such
as “Mayaman sa Protina”, “Mas Pinasarap”, or “Masarap may
sawsawan o wala” are suggested. This will support the word-of-
mouth strategy.
Seventh, add healthy menus. Andok’s may cater additional healthy
menu, especially on dine-in store. This will give a room for increasing
“healthy eater” consumers. This is part of product development.
Lastly, make an intense product identity. Andok’s must intensify
their campaign to maintain their position as “Pambansang Litson Manok”.
Delivery must also be available in other outlet aside from Makati to
49
NEW ERA UNIVERS ITY
increase service differentiation. Delivery during weekends and holidays
can be introduced to add convenience for customers.
Appendix
Appendix 1: Survey
Appendix 2: Financial Statement
50
NEW ERA UNIVERS ITY
Proponent’s Profile:
Name : NameMajor : Bachelor of Science Business Administration major in
Marketing/Financial/Human Resources ManagementTopic Assigned : The Art of ABC
Name : NameMajor : Bachelor of Science Business Administration major in
Marketing/Financial/Human Resources ManagementTopic Assigned : The Art of ABC
51
Picture
Picture
Picture
NEW ERA UNIVERS ITY
Name : NameMajor : Bachelor of Science Business Administration major in
Marketing/Financial/Human Resources ManagementTopic Assigned : The Art of ABC
Name : NameMajor : Bachelor of Science Business Administration major in
Marketing/Financial/Human Resources ManagementTopic Assigned : The Art of ABC
Name : NameMajor : Bachelor of Science Business Administration major in
Marketing/Financial/Human Resources ManagementTopic Assigned : The Art of ABC
Name : NameMajor : Bachelor of Science Business Administration major in
Marketing/Financial/Human Resources Management
52
Picture
Picture
Picture
NEW ERA UNIVERS ITY
Topic Assigned : The Art of ABC
53