body mgt 8 strategic plan template1

67
NEW ERA UNIVERSITY This page is intentionally blank. Highlight this notice into default white font color prior to printing.

Upload: mfspongebob

Post on 01-Nov-2014

266 views

Category:

Documents


5 download

DESCRIPTION

body management

TRANSCRIPT

Page 1: Body Mgt 8 Strategic Plan Template1

NEW ERA UNIVERS ITY

This page is intentionally blank. Highlight this notice into default white font color prior

to printing.

Page 2: Body Mgt 8 Strategic Plan Template1

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.

Page 3: Body Mgt 8 Strategic Plan Template1

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

Page 4: Body Mgt 8 Strategic Plan Template1

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

Page 5: Body Mgt 8 Strategic Plan Template1

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

Page 6: Body Mgt 8 Strategic Plan Template1

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

Page 7: Body Mgt 8 Strategic Plan Template1

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

Page 8: Body Mgt 8 Strategic Plan Template1

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

Page 9: Body Mgt 8 Strategic Plan Template1

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

Page 10: Body Mgt 8 Strategic Plan Template1

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

Page 11: Body Mgt 8 Strategic Plan Template1

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

Page 12: Body Mgt 8 Strategic Plan Template1

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

Page 13: Body Mgt 8 Strategic Plan Template1

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

Page 14: Body Mgt 8 Strategic Plan Template1

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

Page 15: Body Mgt 8 Strategic Plan Template1

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

Page 16: Body Mgt 8 Strategic Plan Template1

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

Page 17: Body Mgt 8 Strategic Plan Template1

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

Page 18: Body Mgt 8 Strategic Plan Template1

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

Page 19: Body Mgt 8 Strategic Plan Template1

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

Page 20: Body Mgt 8 Strategic Plan Template1

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

Page 21: Body Mgt 8 Strategic Plan Template1

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

Page 22: Body Mgt 8 Strategic Plan Template1

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

Page 23: Body Mgt 8 Strategic Plan Template1

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

Page 24: Body Mgt 8 Strategic Plan Template1

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

Page 25: Body Mgt 8 Strategic Plan Template1

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

Page 26: Body Mgt 8 Strategic Plan Template1

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

Page 27: Body Mgt 8 Strategic Plan Template1

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

Page 28: Body Mgt 8 Strategic Plan Template1

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

Page 29: Body Mgt 8 Strategic Plan Template1

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

Page 30: Body Mgt 8 Strategic Plan Template1

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

Page 31: Body Mgt 8 Strategic Plan Template1

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

Page 32: Body Mgt 8 Strategic Plan Template1

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

Page 33: Body Mgt 8 Strategic Plan Template1

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

Page 34: Body Mgt 8 Strategic Plan Template1

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

Page 35: Body Mgt 8 Strategic Plan Template1

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

Page 36: Body Mgt 8 Strategic Plan Template1

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

Page 37: Body Mgt 8 Strategic Plan Template1

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

Page 38: Body Mgt 8 Strategic Plan Template1

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

Page 39: Body Mgt 8 Strategic Plan Template1

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

Page 40: Body Mgt 8 Strategic Plan Template1

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

Page 41: Body Mgt 8 Strategic Plan Template1

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

Page 42: Body Mgt 8 Strategic Plan Template1

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

Page 43: Body Mgt 8 Strategic Plan Template1

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

Page 44: Body Mgt 8 Strategic Plan Template1

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

Page 45: Body Mgt 8 Strategic Plan Template1

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

Page 46: Body Mgt 8 Strategic Plan Template1

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

Page 47: Body Mgt 8 Strategic Plan Template1

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

Page 48: Body Mgt 8 Strategic Plan Template1

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

Page 49: Body Mgt 8 Strategic Plan Template1

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

Page 50: Body Mgt 8 Strategic Plan Template1

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

Page 51: Body Mgt 8 Strategic Plan Template1

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

Page 52: Body Mgt 8 Strategic Plan Template1

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

Page 53: Body Mgt 8 Strategic Plan Template1

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

Page 54: Body Mgt 8 Strategic Plan Template1

NEW ERA UNIVERS ITY

Topic Assigned : The Art of ABC

53