In partial fulfillment of the requirements for STRAMAN (Strategic Management) submitted to Mr.

Francis oseo

!A"#$N% Rachel "aroline &. ''(')*)+ $N,% "larence -ane ". ''((./.+ R!0!S% Sedfre1 ". ''(2'2** &I"!NT!% Mar1 Antonette 3. ''('4(4

TA5 ! $F "$NT!NTS I. II. III. I&. &. &I. &II. !6ecuti7e Summar1 Research 3esign Methodolog1 Introduction !6ternal Anal1sis Industr1 Anal1sis "ompan1 Anal1sis Strateg1 Formulation a. !6ternal Factor !7aluation b. "ompetiti7e 8rofile Matri6 c. Internal Factor !7aluation d. S9$T e. S8A"! f. I;! Matri6 g. ,rand Strateg1 h. Summar1 of Strategies i. <uantitati7e Strategic 8lanning Matri6 &III. Recommendations a. Strategic $b=ecti7e b. Recommended Strategies c. Financial 8ro=ection d. 3epartmental 8rograms I>. !7aluation and Success Indicators a. 5alance Scorecard b. "ontingenc1 8lan >. References >. Appendi6 a. Financial Statements '(/ '(( '(+ '(2 :+ :2 :4 )2 *4 4+ /2 /: .' .* .4 .. .. . ') +4 4 / 2

I.

Executive Summary Mang Inasal is the 8hilippine?s fastest gro@ing barbecue fast food chains @hich ser7es chicAen barbeque% porA barbecue and other delicacies that are Filipino fa7orites. 5eing the marAet leader in the barbecue fast food chain industr1% Mang Inasal is in a good position. Mang Inasal ranAed first in the "8M @ith the rate of 2.:(% (.:4 more than the second placer. This means that Mang Inasal e6cels and has a strong position considering price competiti7eness% marAeting and ad7ertising initiati7es% marAet share% product and ser7ice qualit1% branding and image% and product 7ariet1 as the Ae1 factors.

The trending barbecue industr1 is the reason for Mang Inasal?s continuous gro@th. #o@e7er% @ith the presence of its competitors and as fast food industr1 becomes saturated% Mang Inasal needs to e6ert more effort to further its marAet share. $ther opportunities for Mang Inasal are technological ad7ancement in the field of poultr1 production% gro@ing number of people @ho uses Internet and mobile phones% increase in potential franchisee and demand for pacAaged food products. $ther e6ternal factors that Mang Inasal is facing are health risA of poultr1 products @hile Filipinos are looAing for healthier lifest1le% increase in number of foreign and local competitors. 3espite the threats% Mang Inasal still managed to respond to the different e6ternal factors in abo7e a7erage manner @ith an !F! rating of +..4.

Internall1% Mang Inasal is also doing good ha7ing a rating of +.)4 in the IF!. 5eing a marAet leader in barbecue fast food industr1 through being proacti7e in marAeting and ad7ertising% and ha7ing strategic locations for their restaurants and ha7ing partnership to different

companies liAe 3eco?s and $racle% ga7e Mang Inasal a good rating. 3espite their poor restaurant en7ironment% inconsistencies in the distribution and qualit1 of products% Mang Inasal still manage to respond @ell to the internal factors.

MarAet 3e7elopment is the most suitable strateg1 of the business ha7ing a rating of *.+4 rating in <S8M supplemented b1 MarAet 8enetration @ith a rate of 2.:4 and 8roduct 3e7elopment @ith a rate of 2.:(. MarAet de7elopment strateg1 is to branch out stores in Mindanao specificall1 in urbaniBed cities. MarAet penetration strateg1 includes ')#ire ne@ product endorsers +) Increase brand 7isibilit1 b1 taAing ad7antage of ad7ertising on mass transportation s1stems 2) Intensif1 social media marAeting *) $rganiBe a Mang Inasal Franchise Summit to attract potential franchisees. 8roduct 3e7elopment Strategies are ') Forming a department regulating and e7aluating branches and emplo1ee performances +) Set up a sanitation compliance team to ensure that sanitar1 standards are met for each branch 2)
"onduct research through mobile and online sur7e1s *) $2 5uild a smooth communication channel for faster distribution of products from the supplier to the branches.

9ith the use of these strategies% Mang Inasal @ill continue to e6ceed its competitors ha7ing a ratio of (..) in the return on equit1 compare to others.

II.

Research Design and Methodology Research Design The macro economic data that @as used in this paper are from reliable online media ne@spapers such as the 8hilippine Star% Manila Times and other @ebsites as @ell. For the industr1 data% the Mang Inasal @ebsite @as used and an inter7ie@ from a Mang Inasal franchisee% Ms. Andrea Tan Robinson?s 8ioneer. im. #er Mang Inasal branch is located at the

To compare the financial anal1sis of the firm?s different competitors as @ell as theirs% the audited financial statements @ere obtained from the Securities and !6change "ommission. In addition% some Ae1 factors of the competitors? information @ere acquired in their respecti7e main @ebsites.

Scope and Limitation This paper @ill be about Mang Inasal and all of its branches nation@ide. #o@e7er% the data that @ere gathered are onl1 limited because Collibee Food "orporation o@ns .(D of the shares of Mang Inasal. This becomes a hindrance to collect managementE marAeting and financial data such as the financial statements and internal strategies of the compan1 as handling the emplo1ees is different in e7er1 branch because of its man1 franchisees. Also% it is 7er1 hard to collate data from the Internet because of the sources found are not reliable. The audited financial statements that @ere gathered from the Securities and

!6change "ommission are onl1 from +((: to +('(. III. Introduction

F8ang;masa ang lasa% affordable paGH

Mang Inasal is one of the most prosperous fast;food chains in the 8hilippines. Founded b1 !dgar FIn=apH Sia II% it started its operations in Iloilo "it1% 8hilippines% and the number of branches currentl1 continues to gro@ in number. Right from the start% Mang Inasal @as alread1 able to catch the attention of the Filipinos since its products are mostl1% if not entirel1% Filipino in nature. 5ecause of its increasing number of branches around the countr1% Mang Inasal pro7ides numerous =ob opportunities to man1% @hether the a7ailable opportunities are on the supplier% the management% or the emplo1ees. Right from the 7er1 beginning% !dgar Sia alread1 spurred Filipino?s interests in Robinson?s 8lace% Iloilo "it1% 8hilippines. 9hat he did @as he distributed this initial success in Iloilo "it1 to TAT"% Ro6as "it1% "apiB (second branch)% to Mar1mart Mall% Iloilo "it1 (third branch)% to Mall of Asia% Manila% and soon after@ards% to the rest of the 8hilippine Islands.

Mang Inasal is Ano@n for the Fs@iftnessH and accurac1 of its ser7ices% qualit1 of its products% and its 7ariet1 of food choices. The National Meat Inspection Ser7ice ga7e Mang Inasal a certified 3ouble A on its commissaries (one in Iloilo and one in Manila)% assuring safet1 @hen consuming their products. Apart from safet1% Mang Inasal also allo@ed its Research and 3e7elopment 3epartment (R33) to maAes sure that all of its products are fresh and h1gienic. The R33 also taAes the responsibilit1 of de7eloping ne@ products in Mang Inasal?s menu. In order to raise concerns in branches scattered e7er1@here @ithin the

countr1% Mang Inasal has its Support S1stem to transmit to its main department and act upon gi7ing remedial solutions. 9ith cooperation bet@een different departments% Mang Inasal remains to be one of the healthiest businesses in the 8hilippines.

IV.

External Analysis Economic Per ormance and !orecasts Market becomes saturated due to booming fast food industry

Food is one of the basic needs of e7er1 people% @ith theseE food industr1 is gro@ing as time pass b1. Man1 people choose to put up or franchise different fast food chain as their business since this industr1 has a rapid gro@th.

Fast Food Stores in the Philippines (As of 2011)

800 700 600 500 400 300 200 100 0 Jolibee Chowking Mang Inasal Greenwich Mcdonalds No . o f Sto re s

As of +(''% the number of fast food industr1 in the 8hilippines continuous to gro@ @ith Collibee has the highest number of branches in the countr1. Mang Inasal has *+2 branches as of +('' and still continues to gro@ this +('+.

Re1evance: As the marAet for fast food industr1 becomes more saturated% it means more competitors% direct or indirect% for Mang Inasal. 8resence of more competitors means more choices for the people and it can taAe a@a1 the marAet share of Mang Inasal @hich ma1 cause them a decrease in their sales.

High number of foreign companies entering the fast food market vs. local brands 8assing of the Foreign In7estment Act made the foreign in7estors to easil1 conduct businesses here in our countr1. The go7ernment gi7es incenti7es and other benefits that @ould encourage foreign in7estors to in7est in our countr1. Some the reasons @h1 foreigners in7est in our countr1 are lo@ costs of doing a business. 9ages are lo@ compared to other countries liAe IS. It is estimated that foreign in7estors can sa7e 2(D;*(D in the cost of their business here in the 8hilippines. As the third largest !nglish;speaAing countr1 in the @orld% it ser7es as an ad7antage for the 8hilippines as foreign in7estors can communicate @ith its emplo1ees easil1. Another reason of foreign in7estors to in7est in our countr1 is that because of the ta6 benefits and incenti7es gi7en b1 the go7ernment. 8hilippines also ser7ed as a strategic location for the reason of =ust fe@ hours? flight in the different ma=or capital in the countr1 and also reaching 4(( million people of the Association of Southeast Asian Nation (AS!AN). astl1% as Asian nation is starting to integrate a free trade bet@een the countries of

AS!AN% in7estors can taAe ad7antage of it and also capturing the AS!AN marAet.

As 1ou can see from the graph that there is an increase of Foreign In7estors here in our countr1. Though it decreases in the 1ear +((. because of the financial crisis happened and the decrease continued until +((). #o@e7er% in7estments increases at this time as some of the in7estors chose to in7est in the countr1 especiall1 those @ho are based in Capan to ha7e offices because of the fear of the tsunami incident in Capan last 1ear.

Relevance: The presence of the foreign in7estors @ould more competitors for Mang Inasal especiall1 if the1 engaged in a food ser7ice industr1. Mang Inasal ma1 lose some of it current marAet share as customers ha7e more choices of fast food chain and restaurants in @here the1 can dine in. Foreign businesses ma1 e6hibit better ser7ices% @hich can also be a factor of the loss of marAet share of Mang Inasal.

Socio"cultural !actors Trending barbecue fast food industry According to Famil1 Income and !6penditure Sur7e1 that *+./ percent of the Filipino household?s income @ere spent on food. The increase in the number of @orAers @ho are engaged in business and administrati7e =obs and shifting consumers? preferences to@ards leisure and con7enience resulted to the rise in demand for fast food ser7ices. It is no@ became a trend and routine for middle class earners to eat at different fast food chain @hich causes the presence of 2+%((( fast food outlets in the Metro Manila area onl1.

Toda1% the trend of barbecue fast food industr1 is in h1pe. As 1ou can see in the graph that there are total of /(* branches of the top barbecue fast food chains in the countr1 @here Mang Inasal has the leading number of outlets nation@ide% ha7ing *+2 branches. 10

Relevance Mang Inasal% as a part of the barbecue fast food industr1% can taAe ad7antage of the increasing trend for this industr1. These @ould help them generate higher income and increase further its marAet share. The1 can also taAe this opportunit1 to attract more customers and outnumber its competitors.

Increase number of potential owners through franchising Filipinos no@ a da1s are engaging into franchising business since it requires less capital instead of maAing their o@n business. Actuall1% franchising contributes a lot in the gro@th of the 8hilippine !conom1. According to the Association of Filipino Franchisers Inc. (AFFI)% those there members increased to '2( from .4 during the 1ear of +('(. At this moment% there '((( brands that are being franchised in our countr1 @hich are di7ided to fi7e principal sectorsJ retail (clothing)% cafes% cafes% fast foods% baAeshops% hospitalit1 and @ellness% and food carts. Around K/./ billion of the ,ross 3omestic 8roduct of the 8hilippines or 4D is contributed b1 franchising. Franchising also generates =obs for the Filipino people and therefore reduces unemplo1ment.

The top industries in the 8hilippine franchises are @ater refill franchises since @ater is a basic necessit1 for e7er1 person% education and training franchises as fresh graduates looAing for re7ie@ centers for their licensure e6amination% baAer1 as bread has been a part of the Filipino culture especiall1 pandesal% bar and cafL franchises% personal care franchises% ser7ice;t1pe franchise% fast food chains% restaurants and food cart franchises as food is a basic

11

necessit1 and Filipinos lo7es to eat.

Relevance: Mang Inasal also offers franchising to the communit1. In fact% it is one of the fastest gro@ing franchises in our countr1. The fact it came from the fast food chain and restaurant franchises then it @ould continue to gro@. A lot franchisee means more income for Mang Inasal and it @ill be introduce to different places especiall1 to those areas @here Mang Inasal is not present 1et.

More

ilipinos are moving to urban area as an increase in demand in packaged food

products.

As more Filipinos migrate to urban areas for the reason of better =ob opportunities and a lot of people @ho are @orAing and does not ha7e the time to prepare their o@n food% it increases the demand for the pacAaged food products for an ease in meal preparation. This made them to eat in different fast food chains% restaurants and other independent food establishments liAe the carinderia for a cheaper food ser7ice.

#$%S&MER !$$DSERVI#E MAR'E( S)ARE *+ (+PE ,--. ,--/ ,--0 ,--1 ,--2 (otal 3-3-3-3-3-Independent "onsumer Foodser7ice /4.2 /*.. /*.2 /2./ /+.. "hained "onsumer Foodser7ice 2*.. 24.2 24.. 2/.* 2..2 Fast Food +2.. +2.: +*.( +*.. +4.*

,-33-/'.2 2:.. +/.2

12

Full;Ser7ice Restaurants "afesM5ars

+:.* +/./

+:.( +/.'

+../ +4./

+..2 +4.(

+/.. +*.+

+/.+ +2.4

Street StallsM-iosAs

':.:

')./

+(.+

+(.2

+(..

+(..

8iBBa "onsumer Foodser7ice '((D #ome 3eli7er1 TaAe A@a1

*.4 +./

*.4 +./

*.4 +./

*.* +./

*.4 2.(

*./ 2.+

As 1ou can see form the graph that the marAet share of fast food industr1 continues to gro@ o7ertime and it gro@s faster during the 1ear +((. to +('(% @hich has the marAet share from +*D to +/.2D.

Relevance: An increase in demand for pacAaged @ould also mean an increase in demand for fast food chain @here Mang Inasal is a part of. More Filipinos mo7ing to urban areas to looA for =ob opportunities @ould be a factor to Mang Inasal since the1 can emplo1 @orAers from these people.

ilipinos are looking for a healthier lifestyle No@ a da1s% there is an increase in the of people @ho are facing obesit1% heart problems% diabetes and other health;related issue @hich maAe them more conscious on @hat the1 eat.

13

According to the 9orld #ealth $rganiBation that b1 +('+% there @ill be +.2 billion adults @ho are o7er@eight and more than .(( million are obese. In +((2% it is reported that ')./D of the Filipino population are o7er@eight and *.)D are obese. The numbers continue to increase during these da1s. "onsumers are becoming more health conscious looAing for more healthier and organic products.

Relevance Most of the products of Mang Inasal are meat @hich has high saturated and transfat that can lead to obesit1 and heart disease. For customers @ho are looAing for a healthier food% eating in Mang Inasal ma1 not be a good option for them and this ma1 lead to a decrease in the marAet share of Mang Inasal as people @ill shift their interest to those restaurants @ho offer organic foods.

Health Related risks of poultry $ne common disease that @e can get from poultr1% especiall1 chicAens% is bird flu% @hich is a disease caused b1 T1pe A influenBa 7irus that mostl1 infect birds.

14

As 1ou can see from the figure that bird flu cases increases from +((2 to +((/ then it falls in +((.. Although the cases and deaths of bird flu falls do@n% people are still being caution especiall1 if there is a bird flu scare in the countr1.

Relevance Since the ma=or product of Mang Inasal is its "hicAen Inasal% health related risAs of poultr1 can decrease the sales of Mang Inasal as people @ill a7oid poultr1 products because of the fear of ha7ing a sicAness that the1 can get from it.

15

(echnological !actors Technological advancements in the field of production

Man1 producers are interested to other alternati7es in raising their chicAens and technological ad7ancements can help @ith these problems. The1 are looAing to a t1pe of chicAen% @hich can be more suitable for outdoor production and niche marAets. $ut @ith the con7entional poultr1 industr1 and it is no@ geneticall1 refined. "hicAens no@ gro@ faster% has a broad breast and limited feather for easier plucAing and other traits that are considered desirable for raising large number of birds. "hicAens no@ reach fi7e pounds in si6 to se7en @eeAs due to their rapid gro@th.

Relevance 5ecause of the ne@ technologies that are disco7ered in order to gro@ more chicAens than usual% suppl1 of chicAen @ould not be a problem for Mang Inasal since it is their ma=or products. The geneticall1 refined chicAens @ould also be bigger than the con7entional chicAen @hich can be an ad7antage for Mang Inasal because the1 @ill be able to ser7e bigger chicAens to their customers. This @ould mean higher satisfaction for the customers.

!rowing number of people who uses Internet and mobile phones As the technolog1 aged% there is an increase in the number of Internet and mobile phone users @orld@ide. Since Internet are more con7enient to use compared to those con7entional @a1s% people preferred them more and its users graduall1 increasing. The same as to mobile phone% @hich are easier to use in communicating @ith other people% user of mobile phone are also rising. According to the secretar1 general of the IN?s International Telecommunications 16

Inion% at the beginning of +((( there are onl1 +4( million users of Internet and 4(( mobile subscriptions globall1. 5ut @hen +('' approaches% it gro@s to 4 billion mobile users and + billion Internet users @orld@ide.

As 1ou can see from the t@o figures abo7e that the trend for using the Internet and Mobile 8hones is increasing rapidl1. Though Internet users fall during +((.;+((: @here there is an recession% it still managed to increase during the 1ear of +(() until no@.

Relevance Through Negostar 3eal 5iB oop ))% transactions of Mang Inasal @ere made easier and e7en reduce the cost of Mang Inasal @hich allo@s them to offer affordable prices to their customers. Negostar 3eal 5iB oop )) offers unlimited talA to Mang Inasal?s emplo1ees%

franchisees and suppliers for =ust 8)).(( per month. Mang Inasal @as able to reach its connections in =ust an affordable price% @hich is an ad7antage to them.

17

Legal !actor "ompliance to sanitary standards According to the "hapter 2 of the 8residential 3ecree No. :4/ @hich is the code of sanitation% that no one is authoriBed to operate a food establishment @ithout securing a sanitar1 permit from the local health office. The sanitar1 permit should be posted in the 7isible part of the restaurant. !mplo1ees should also ha7e a #eath "ertificate issued b1 the local health authorit1. All foods should also come from suppliers or sources @hich are appro7ed b1 the local health authorit1. The construction and location of the restaurant should also compl1 @ith structural requirement prescribed the code of sanitation. $ther equipment and material used in the business should also follo@ the code of sanitation.

Relevance Mang Inasal% as a food establishment% should also abide @ith the la@s pro7ided in the sanitation code. The1 should also maintain cleanliness in their different branches in order to pass the sanitar1 test of the go7ernment. Sanitar1 standards are also important for the customers of Mang Inasal since the1 @ant to ensure that the food the1 are eating are safe.

V.

Industry Analysis a. Industry and Mar4et Segments !ood Service Industry

18

Food Ser7ice Industr1 is one of the industries% @hich are in rapid gro@th as there are increase in number of people @ho @ants to ha7e a prepared meal in the short time and at most reasonable prices. Food Ser7ice Industr1 is an industr1% @hich produces and sells foods and ser7es its consumers. There are different t1pes of food establishment that are being set up in our countr1 in our time no@ liAe big restaurants and fast food chain% small canteens and carinderias or e7en the in demand food carts.

#ommercial !ood Service "ommercial Food Ser7ices are those eateries% @hich are engaged into business and profit. This is @here Mang Inasal belongs. 8art of the =ob of the o@ner is to control the e6penses of the compan1% to set its profit and to plan the business gro@th. It is also the o@ner @ho sets the price of the food and ser7ices that the1 cater to the masses and 7alue the place and economic le7el of their target customers. "ompetition in this t1pe of food ser7ice is high since a lot of eateries are engaging in this t1pe of business.

5el are !ood Service 9elfare Food Ser7ices are those restaurants that are set up to ser7e a particular group of people liAe emplo1ees% students and patients. These are eateries that are commonl1 found in schools% office canteen and cafeterias in the hospital% @hich are managed b1 concessionaires. "ompetition in this t1pe of business is lo@ since the competition @ill onl1 be inside the entire office building and hospital.

19

Mar4et Segment and (rends Segmentation through Economic Classification #ompany Collibee "ho@Aing Mang Inasal Mc3onald?s -F" ,oldilocAs 9end1?s *udget !ood Items Rice Meal 2)ers% &alue Meals &alue -ings% "ombo -ings Sulit Meals% 5ulilit Meals &alue Meals% M+ecSa7er Meals% !7er1da1 McSa7ers 9o@ 5urger% 9o@ Sulit Meals Sarapino1 Meals Super &alue Menu Price 6P)P7 2).((;44.(( +).((;:..(( *).(( +4.((;44.(( 2(.((;:).( *).(( 2..((;/+.((

Famous fast food chains offer affordable prices for the masses and e7en cater budget meals% @hich are more affordable. The segment share of the middle income to this t1pe of industr1 is large compared to people @ith larger income beside from the affordable prices it offers% it is also a factor that the food the1 offer is for the masses.

Segmentation through Source of Income For the 1ear +(()% *+./D of the total e6penditures are spending on food and /.'D of these are food consumed outside home. This pro7ides an a7enue for the industr1 to increase its sales and to further increase its marAet gro@th since people @ho eat outside their houses are graduall1 increasing throughout the 1ears. "ustomers are made;up mostl1 of @orAers% especiall1 during lunch% @hom are not able to eat in their house. Students are also one of the main customers of this industr1. $thers are composed of families eating outside especiall1 during @eeAends.

20

Pricing 8ricing @ill depend on the target marAet of the fast food companies. There are food chains @hich ha7e higher prices compared to others @hich are affordable b1 middle to lo@ income household. 8rices @ill also depend on the products ser7ed b1 the different fast food companies. It @ill also depend on the bulA of 1our orders for the reason that fast food companies offers meals @ith lo@er prices but the ser7ing is also small compared to the products in their normal price. !ast !ood Mang Inasal 5acolod "hicAen Inasal "hic;5o1 Distri8ution #hannels Price Range 8 *).((;)).(( 8 *).4(;)).4( 8 *).(( N )).((

!armers9 :ro;ers

Manu acturers

Distri8utors

#onsumers

!ood #hains

The common distribution channels for food ser7ice industr1 is that it started @ith farmers and gro@ers of the ra@ materials or supplies that the food chains @ill need in order to produce their products. Some of these materials @ill go to manufacturers to produce other products @hich @ill also be used b1 different fast food chains such as

21

goods liAe dair1 products and the liAe. After that% these products @ill go to different distributors or the suppliers of the products of these food chains. Fast food companies ha7e lots of different suppliers @hom to suppl1 the ingredients for their products. The1 @ill ha7e a different supplier or e7er1 ingredient of their products. After the deli7er1 of their supplier% then it @ill be gi7en to the different branches of the compan1 for cooAing and ser7ing its customers. 8roducts are onl1 distributed through the different branches of the compan1 nation@ide or globall1.

Advertising and Promotion Ad7ertising and 8romotion is a @a1 for a compan1 to penetrate the marAet and to increase further it sales. This is also a means in order for a compan1 to attract more customers and introduce to the public the products it caters. Media% pla1ing a part in consumers? decision in choosing a good% is an ad7antage for different firms. The presence of tele7ision% radio% Internet% ne@spaper% magaBines and other reading materials% and the rampant billboards on different road@a1s are means for firms to promote its products. 3ifferent fast food chains e7en made @ebsites in order to post updates about the compan1 and its products. Mang Inasal% compared to its competitors% has been 7er1 proacti7e in ad7ertising its product in utiliBing the media in informing the public the different promos it caters to the public.

8. Porter<s !ive !orces

22

Potential Entrants" S(R$%:

In recent 1ears% starting a fastfood business has ne7er been easier. Mang Inasal is one of the numerous fastfood chains that e6panded their number through franchising. Mang Inasal?s founder and "!$ !dgat FIn=apH Sia di7ulged in an inter7ie@ that more than )(D of Mang Inasal branches in the 8hilippines are o@ned b1 Mang Inasal franchisees. #o@e7er% as a franchiser Mang Inasal is able to earn income through ro1alt1 fees and other fees required to start the Mang Inasal franchise. Man1 people are attracted to start a franchise because brands liAe Collibee% Mcdonald?s and Mang Inasal alread1 ha7e a customer base and marAeting initiati7es% and business strategies. According to an inter7ie@ @ith Ms. Andrea Tan im% a franchisee of Mang Inasal% It is eas1 to enter the industr1 but the hard part is maintaining the business because of the presence of competitors.

*argaining Po;er" 5EA' Mang Inasal has been 7er1 successful acquiring and distributing supplier for their branches. According to Ms. Andrea Tan im% a franchisee of Mang Inasal% the1 ha7e a lot of suppliers the1 ha7e different suppliers for chicAen% drinAs% utensils% etc. $ne of the main reasons for their success is that Mang Inasal emplo1s and has de7eloped commissaries. The1 ha7e recentl1 constructed a commissar1 at Taguig% @hich is compliant @ith a Triple A meat processing plant standards and equipped @ith a state;of; the;art testing laborator1 and a modern metal;detector or a de7ice to checA meat qualit1.

23

(hreat o #ompetition" S(R$%: The number of fastfood chains in the countr1 is rapidl1 increasing. Aside from direct competitors% Mang Inasal @ill also face indirect competitors such as Mcdonald?s and -F". The fastfood industr1 in the 8hilippines has been one of the tightest industries. Ms. Andrea Tan im% a franhisee of Mang Inasal% admitted that it is 7er1 difficult to

maintain the business because of tight competition.

Purchasing Po;er o #onsumers" S(R$%: Referring to our "ompetiti7e 8rofile Matri6% Mang Inasal got the highest marA regarding price competiti7eness. Mang Inasal?s products ranges from 8*);8)). Most of their customers are students and people part of the labor force. Students and @orAers usuall1 ha7e a tight budget. (hreat o Su8stitution" S(R$%: 5esides from the famous chicAen inasal% Mang Inasal has a 7ariet1 of food products to choose from. To Aeep up @ith the trends% Mang Inasal e6panded their product line. Also% the so1 garlic chicAen industr1 (e.g. Manang?s O 5onchon) is getting popular in the countr1.

VI.

#ompany Analysis

a. Vision and Mission o the #ompany Vision Statement and Evaluation The 7ision statement of Mang Inasal isJ FTo be the preferred quicA ser7ice restaurant of e7er1 pino1 e7er1@hereGH

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httpJMM@@@.manginasal.comMabout.html

&ision Statement !7aluation Parameter 3oes it clearl1 ans@er the questionJ 9hat do @e @ant to becomeP Is it concise enough 1et inspirationalP Is it aspirationalP 3oes it gi7e clear indication as to @hen it should be attainedP +es9%o 5hy= 0es Mang Inasal aims to become the best fast;food barbecue food chain in the 8hilippines. 0es 0es No The 7ision statement promotes the compan1 to be chosen as their fa7orite restaurant. Mang Inasal aspires to be Filipino?s most fa7ored quicA;ser7ice restaurant. The 7ision statement is not time;bound. It fails to mention @hen the compan1 @ants to achie7e their goal as the most fa7ored restaurant b1 Filipinos.

Mission Statement Analysis and Evaluation The mission statement of Mang Inasal isJ FTo consistentl1 pro7ide our customers a great pino1 dining e6perience.H

25

Mang Inasal intends to gi7e its customers an amaBing 8ino1 dining e6perience. The firm competes in the 8hilippine fast food marAet and is currentl1 one of the most prosperous fast;food chains in the countr1. Throughout the 1ears% Mang Inasal gi7es the customers their best product and ser7ice qualit1 to gain their customers? desires for their product. 51 means of their effecti7e implementation% Mang Inasal intends to gain customer dependence for the compan1?s sur7i7al% gro@th% and profitabilit1 in the long run. InliAe other fast;food chains% Mang Inasal has an efficient method for ser7ing their customers% focused mainl1 on refilling its customers? plates (unlimited rice% free soup% etc.). 9ith these traits together @ith their large @orAforce and de7eloped processing s1stem% Mang Inasal has an e6ceptional competiti7e ad7antage. Also stated in the compan1?s 7ision% Mang Inasal pro7ides =ob opportunities for =obless people% as @ell as a7ailable suppliers% gi7ing it a good public image. In accordance to la@% Mang Inasal gi7es emplo1ee benefits to its @orAers. 8. Recommendations Recommended Vision 51 +('.% Mang Inasal @ill be the preferred quicA ser7ice restaurant b1 Filipinos e7er1@here in the 8hilippines. Parameter '. "ustomers +. 8roducts O ser7ices 2. MarAets *. Technolog1 4. "oncern for sur7i7al% gro@th% profitabilit1 /. 8hilosoph1 .. Self;concept :. "oncern for emplo1ees ). "oncern for public image '(. "oncern for nation building +es9%o I yes> ;hich part o the statement 0es Q pro7ide our customers 0es Q great pino1 dining e6perience No No No No No No No No

26

The ne@ 7ision no@ indicates a clear indication @hen @ill it be attained. In fi7e 1ears% Mang Inasal @ill be ha7e e7er1 branch in the 8hilippines as it continues to gro@ e7er1 single da1. The old 7ision is 7ague as it =ust ans@ers Fe7er1@hereH and does not indicate @hether it is outside or inside the 8hilippines.

Recommended Mission To consistentl1 pro7ide Filipinos @ith a 7ariet1 of pino1 foods to choose from especiall1 our famous chicAen inasal. Moreo7er% @e are committed to pro7ide our customers a great pino1 dining e6perience% to achie7e gro@th b1 ha7ing more branches% to taAe care of our emplo1ees% to taAe care of our en7ironment and to also gi7e something bacA to societ1. As leading in the barbeque fast food industr1% our compan1 promotes Integrit1% #onest1 and @elfare of e7er1 indi7idual @orAing in Mang Inasal.

The old mission @as too shortE the ne@ mission indicates that the firm @ill pro7ide its customers 7ariet1 of pino1 foods @ith a great dining e6perience. The ne@ mission also mentions about ha7ing gro@th% concern for emplo1ees% image and societ1. Furthermore% b1 ha7ing the firm to promote Integrit1% #onest1 and @elfare of its emplo1ees% this @ill help Mang Inasal to gro@ and de7elop ne@ things in the future.

Internal Audit Management Audit The compan1 uses basic strategic management concepts liAe the 5acA@ard

27

Integration% b1 getting ra@ materials and products from their suppliers. Although the firm uses this% some of its franchises don?t ha7e "ertified 8ublic Accountants in managing their financial statements. This means that the1 do not ha7e standardiBed management strategies in all of its franchises and this is 7er1 hard for them to full1 organiBe the business.

The firm?s ob=ecti7es and goals are measurable and @ell communicated to its emplo1ees% managers and franchisees. The1 see to it that the1 ha7e the same ideas and intentions for Mang Inasal to de7elop.

The emplo1ee turno7er in compan1 is moderate as the firm has man1 emplo1ees in each of its branches in the countr1. Absenteeism of emplo1ees is lo@ but from time to time there are still some emplo1ees @ho do not go to @orA. The compan1 follo@s the standard sicA lea7e and 7acation lea7e @ith all of its emplo1ees. Mar4eting Audit Segmentation o Mar4ets Mang Inasal is a nation@ide compan1. The target marAet of the compan1 is the Filipino people. As stated in the 7ision statement of the compan1% the1 @ill be the preferred restaurant of e7er1 pino1 e7er1@here in the 8hilippines. Also% students and @orAers are the main customers of the compan1 because of its 7er1 affordable products that fit to the budget of the Filipinos. Positioning As Collibee Food "orporation (CF") is Ano@n to ha7e the most branches of its fast food chain in the 8hilippinesE it is no@ a part o@ner of Mang Inasal. CF"

28

impro7ed the position of Mang Inasal being the 2 rd fast food chain to ha7e the most number of branches in the countr1. !ast !ood #hain Collibee "ho@Aing Mang Inasal ,reen@ich Mcdonalds %o. o *ranches /:/ *2' *+2 22( 2+4

Mar4et Shares The compan1?s marAet share is still the leading fast food chain @ith the de7elopment of CF". The firm outnumbered its competitors b1 ha7ing four times the number of branches it has in the countr1. *ar8e?ue !ast !ood #hain Mang Inasal Re1es 5arbeque "hic;5o1 5acolod "hicAen Inasal %o. o *ranches *+2 )( .' +(

Sales and Distri8ution System The compan1 has its o@n commissar1 s1stem that is found in Metro Manila and Iloilo and easil1 distributes its goods and products to its nearb1 branches. #o@e7er% the firm is ha7ing a hard time in distributing goods and products in the pro7inces. So the branches outside the Metro purchase their supplies in the nearb1 stores% @hich is more costl1. The compan1 sale from +(() is :4( M. In +('(% the compan1 sale increased b1 2/D from +(() that is + 5. The compan1 sales still e6ceeded the cost of sales% operating and other e6penses% so it still enable to generated a 7ast amount of net income during

29

the 1ears.

Product The compan1 has a limited 7ariet1 of products to choose from. Since the barbeque fast food industr1 is trending% its competitors and other businesses entering the marAet easil1 imitate the products of Mang Inasal. #o@e7er% the firm is still leading because of its fast ser7ices in deli7ering the food to its costumers. Pricing The price of the products of the firm fit aptl1. The products are 7er1 affordable that entices the customers to b1 from them. Ne7ertheless% its Ae1 competitors also imitate the prices of their products as the1 follo@ the firm. Promotions #apa8ility The compan1 proacti7el1 promotes its products as people can see in billboards and t7 ad7ertisements of Mang Inasal e7er1@here. The firm spends a lot on promotion and ad7ertising their products in order for them to ha7e more customers. Also% the firm has a famous endorser that also made Mang Inasal more popular and increasing the compan1?s profit.

!inancial Audit :ro;th Sales ,ro@th The increase in the sales of the compan1 gre@ significantl1. As the business

30

continues% it @ill ha7e more sales as more stores of Mang Inasal open nation@ide.

Re7enue ,ro@th The re7enue gro@th of the compan1 gre@ ).D from +((: to +((). The sales compensate the operating e6penses% ta6es and other e6penses in gain more than enough to sustain the business. From +(() to +('(% the re7enue gre@ /+D and in the upcoming 1ears% the re7enue @ill still continue to significantl1 gro@.

"omparati7e ,ro@th Rate "omparing the compan1 to its Ae1 competitors. Mang Inasal is still leading at a faster rate of .2D in the sales and /+D gro@th in the net income. "hic;5o1 is ne6t to the

31

compan1 as more of its stores are opening. 5acolod "hicAen Inasal has a *)..2D sales gro@th but it did not compensate the net loss of the compan1.

Pro ita8ility Margin ,ro@th In +(()% the margin gro@th of the compan1 is at its highest and it decreased in +('(.

"omparati7e Margins "hic;5o1 has a higher gross profit margin than Mang Inasal. #o@e7er% Mang Inasal has a higher operating profit margin and net income margin compared to "hic;5o1 32

but it is still close.

Return on Assets The return on asset of the compan1 impro7ed from +/D in +(() to 22D in +('(. The compan1?s competitors are far behind @ith an :D of "hic;5o1 and ;'.')D of 5acolod "hicAen Inasal.

33

Return on !quit1 Mang Inasal?s return on equit1 decreased from .)D in +((: to /)D in +((). The '(D decrease @as not a hindrance to the compan1 as it increased '+)D in +('(. The return on equit1 of its competitors is ;+:.4D.

Activity and E iciency In7entor1 Turno7er Mang Inasal is better in efficientl1 selling its in7entor1 compared to "hic;5o1. 5acolod "hicAen Inasal has no in7entor1 turno7er. Mang Inasal has its @orst in7entor1 turno7er in +((: but it impro7ed in +(() b1 '..2:D.

34

Asset Turno7er A decrease of '.. in +(() in the asset turno7er is the @orst rate. #o@e7er% it gre@ 2... in +('(% as it is a good sign that the compan1 is using its assets in generating sales. The Ae1 competitors? a7erage is still lo@er than Mang Inasal onl1 +.*. asset turno7er.

35

iquidit1 Mang Inasal is still leading as the most liquid in terms of current and quicA ratio. 3espite this% there is still a decline in the current ratio and quicA ratio of Mang Inasal +(() and +('(.

36

"ash Flo@ In7esting acti7ities mainl1 pro7ides the compan1?s cash. In +((:% cash @as pro7ided in the operating acti7ities of the business. There is no amount of financing acti7ities in +((: and in7esting acti7ities in +('(.

37

9orAing "apital The @orAing capital of the compan1 increases e7er1 1ear. In +('(% it has a ):.2/D gro@th from +(() and due to this% the compan1 can co7er the compan1?s liabilities during the 1ear. 9orAing "apital +((: +(() +('( Amount .'.%+:+.2( 2%'(.%+(..* . ':4%:)*%+/( ,ro@th /)./4D :'.+4D ):.2/D

Solvency e7erage Ratio 5acolod "hicAen Inasal is the most highl1 le7eraged compared to the other companies. This can lead to the insol7enc1 of the business if this still continues. Mang Inasal is least le7eraged compared to its Ae1 competitors @ith a debt ratio of (.+:.

38

Production Audit The compan1 has 7er1 fast ser7ice in deli7ering food to the table of its customers. The emplo1ees are organiBed and efficientl1 @orA to be able to maintain its fast ser7ices. The facilities and amenities of the compan1 are in good condition that enables the emplo1ees to @orA in a health1 en7ironment. The compan1?s firm are strategicall1 located almost e7er1@here as the branches can be seen @here there are man1 people% @hich gains the firm a lot of attention. The compan1 has ad7anced internal operating s1stem that is 7er1 eas1 for the managers and o@ners of the firm to monitor e7er1 branch in the countr1.

In ormation Systems In +(()% Mang Inasal partnered @ith $racle% @hich is the Fmost complete% open and integrated business soft@are and hard@are s1stems% @ith more than 2.(%((( customersH globall1. $racle @ill helps Mang Inasal?s efficienc1 in running the business. In addition% $racle has state of the art multiple operating s1stem options

39

that gi7es customers unmatched benefits from industr1;leading products and lo@ total cost of o@nership.

0S !RAME5$R' Strateg1 The compan1 proacti7el1 promotes their products% @hich is in line in the trending barbeque fast food industr1 that attracts man1 customers and made Mang Inasal popular. The numerous branches of the compan1 also made Mang Inasal 7er1 successful as people can see the fast food chain almost e7er1@here in the countr1.

The integration strateg1 of the compan1 is the turning point of success. Collibee bought .(D of the shares of Mang Inasal made the firm more popular and Collibee is Ano@n to be one of the best in promoting their products and leading fast food industr1 in the countr1.

5ased from the 8orter?s Fi7e Forces% the purchasing po@er of consumer is strong as the products onl1 ranges from 8*) to 8)). The compan1 generates a big amount of income as more customers bu1 products from Mang Inasal branches nation@ide that is cost affordable.

#valuation: #ffective "apitaliBing on ad7ertising the compan1 that sho@s their products are delicious 1et 7er1 affordable and increasing number of branches are the ad7antages of Mang Inasal from its competitors% as more customers @ill bu1 from them. In addition% the public

40

admired the compan1 as Collibee bought .(D of the shares of the compan1. This made the Mang Inasal @orth1 that caught the attention of one of the biggest compan1 in the 8hilippines and considers bu1ing the business. Shared &alues The mission statement does not state an1 core 7alues of the compan1. #o@e7er% the compan1 sho@s compassion b1 helping alle7iating the unemplo1ment of the countr1 since it pro7ides =ob opportunities to Filipinos. Also% the compan1 pro7ides =ob opportunities in certain areas to communit1 members as the1 pro7ide supplies for the compan1 to operate.

#valuation: $eeds Improvement The compan1 lacAs in presenting their core 7alues% as it is not stated in the mission statement. Ne7ertheless% the compan1 still sho@s their concern to the societ1 b1 ha7ing pro=ects helping the poor and pro7iding =ob opportunities to the unemplo1ed Filipinos. Structure
!dgar C. Sia II "hairmanM"!$

Ferdinand C. Sia 8residentM"$$

$8!RATI$NS !lmer #ementera &8;$perations

5ISIN!SS FINAN"! AN3 "$MMISSAR0 TR!ASIR0 #IMAN R!S$IR"! MAR-!TIN, !nri RuiB 3e 3!&! $8M!NT "$NTR$ !RS#I8 Cames &. 31 Shella A. Sia Cess NemenBo uBuriaga Mar7in Ramos &enancio ". 8arcon &8;"ommissar1 !&8;Treasur1 "orporate #R Manager MarAeting Manager 533 #ead &8;Finance

MM MM

The compan1 organiBational structure is hierarchal @ith each 41

of the departments of the compan1 has its main functions. All of the information regarding the management of the compan1 disseminated from the chairman all the @a1 to its emplo1ees. The construction of the business de7elopment department% @hich its main ob=ecti7e is to impro7e and create ne@ stores% made a big impact on the compan1?s gro@ing status as it continuousl1 creates ne@ Mang Inasal branches nation@ide.

#valuation: !ood The compan1 has a good organiBational structure especiall1 @hen compan1 created the business de7elopment department that is the1 Ae1 of the success of the business% as its main ob=ecti7e is to build more branches of Mang Inasal. S1stems The compan1?s information dissemination is good as emplo1ees and staffs are @ell informed of the ne@ pro=ects and business plans that the compan1 has in store for its customers. !ach department does their roles effecti7el1 in maAing the business successful. The heads of the different departments see to it that their staffs do the tasAs assigned to them and able to manage their o@n departments. 5efore the franchisees manage their o@n branch of Mang Inasal% the1 are first instructed of ho@ to manage and operate their o@n branches for it to be successful. The compan1 promotes consistenc1 @ith all of its branches so that it @ill be managed @ell.

42

#valuation: !ood "onsistenc1 is one of their priorities in managing the compan1. As the number of branches of the compan1 is increasing% the1 see to it that the1 pro7ide outstanding and e6ceptional products and ser7ices to its consumers in e7er1 branch that the1 o@n. St1le The compan1?s success is attributed to its high standards. It can be summariBed into FF.S.".H The compan1 belie7es that e7er1 food (F) ser7ed to their customers must meet the standards set b1 the compan1. !6cellent customer ser7ice (S) is one of the bacAbones of the compan1% @here the emplo1ees are e6pected to deli7er @ith a fast and courteous ser7ice at all times. "leanliness (") is 7er1 important for Mang Inasal both inside and outside the store as the emplo1ees clean the restaurant and the1 themsel7es ha7e presentable appearance at all times.

#valuation: Helpful The high standard of the compan1 is the main reason @h1 Mang Inasal is 7er1 successful. The compan1 sees to it that the1 ha7e the utmost ser7ices% operation and management of the business. The emplo1ees are trained @ell in ser7ing its customers and the1 must compl1 @ith the fast ser7ices that the compan1 promotes.

Staff !mplo1ee gro@th is supported through series of trainings that the compan1 pro7ides. In March +('(% the compan1 has a ne@ training center% @hich has a mocA;up of a t1pical Mang Inasal store. The training center is a part of the compan1?s dri7e in impro7ing its ser7ices% management% ser7ices and food qualit1. This is a certification

43

program for all of its emplo1ees and soon it @ill become a requirement prior to the opening of ne@ Mang Inasal stores. The compan1 has good compensation and benefit pacAage to encourage their emplo1ees to @orA their 7er1 best. The compan1 also pro7ides career pathing of its emplo1ees that pro7ides opportunities for them to pursue a higher career in the compan1. #valuation: #ffective The certification program for the emplo1ees is an effecti7e @a1 to promote the consistenc1 and to ha7e better operations in the compan1. This @ill not onl1 ser7e as a gro@th of the compan1 but also to its emplo1ees. The emplo1ees are gi7en opportunities to gro@ and e6cel in their careers as the compan1 gi7es them a chance to pro7e themsel7es that the1 are qualified in earning a higher position in the compan1.

SAills The compan1 has intensi7e trainings for its emplo1ees to be efficient and promote the compan1?s high standards. The managers also trained and continuousl1 learn the latest s1stems in operating the store and people management sAills.

#valuation: !ood The sAills are in line @ith the goals of the compan1 to be the best and ha7e the fast ser7ices in deli7ering food to its customers. The compan1 is able to attain their goal through managing and training the emplo1ees.

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VII.

Strategy !ormulation

a. External !actor Evaluation 3. $pportunities and Mang Inasal<s responsiveness

O1 Trending barbecue fast food industry (Socio Cultural) httpJMM@@@.philstar.comMArticle.asp6ParticleIdR./*.*2OpublicationSub"ategor1IdR'(:

Rating 3 ; This helps promote the firm to e6pand more branches across the 8hilippines% as man1 customers are fond of the gro@ing barbecue fast food industr1. Mang Inasal is leading @ith *+2 branches nation@ide as the number ' barbecue fast food chain. It also ranAed 2rd% as the biggest fast food industr1 in the 8hilippines.

Number of Stores of Mang Inasal

50 100 423 300 2008 2009 2010 2011

O2 Technological ad ancements in the field of !oultry !roduction (Technological) httpJMM@@@.ublcorp.comMbroilers.html

45

Rating 2 ; There are some recent studies that @ill help in producing poultr1 faster through poultr1 genetics. Iltra Natural 8lus is a poultr1 feed additi7e containing more than +( enB1mes combined @ith beneficial organic plant e6tracts of natural origin in a concentrated% eas1 to use and mi6 liquid form. Ised as a poultr1 drinAing @ater additi7e for poultr1 broilers% la1ers and turAe1 gro@er applications. Although it is still not a7ailable in the 8hilippines% this @ill help the firm to produce more food in a short period of time. This @ill help the sales of Mang Inasal to gro@ and generate more income in the future.

O3 "ro#ing number of !eo!le #ho uses Internet and $obile %hones (Technological) httpJMMbusiness.globe.com.phMsmeMne@sMmang;inasal;opens;2((th;branch

Rating , % ,lobe 5usiness opens ,lobe Negostar% @hich aims to aid small and medium enterprises (SM!)% to help them cut on cost of operations and boost producti7it1. Mang Inasal uses this as it helps them e6pand more branches and easil1 communicate @ith its emplo1ees% suppliers and franchisees through the ser7ices of ,lobe.

46

No. of Internet sers

No. of People 10,000,000 5,000,000 0 2000 2002 2005 2007 2008 2009 Year

O& Increasing number of !otential o#ners through franchising (Socio'cultural) httpJMMfranchisephilippines.orgM:;best;philippine;franchisesM

Rating @ N 8eople toda1 recogniBe franchising as a ne@ @a1 of starting a ne@ business instead of thinAing their o@n concept. Franchising is 7er1 eas1 because man1 businesses accept franchising their products and ser7ices. Although franchising can be costl1% but there are man1 benefits liAe the brand name and the1 can assistance @ith the management of the firm to help them put up a successful business.

O( Increase in demand for !ac)aged food !roducts due to more !eo!le mo ing to urban areas httpJMM@@@.nBte.go7t.nBMe6plore;e6port;marAetsMmarAet;research;b1;industr1MFood;and; be7erageM8agesMFood;and;be7erage;marAet;in;the;8hilippines.asp6

Rating , N More Filipinos are e6pected to mo7e to urban areas because of better @orA opportunities so that the1 can pro7ide for their o@n families that the1 cannot sustain

47

li7ing in rural areas. This @ill increase the demand for pacAaged food products. #o@e7er% affordabilit1 @ill remain an important factor due to the limited disposable income of most households. Mang Inasal offers affordable meals that @ill pass the budget of most Filipinos.

,. (hreat and Mang Inasal<s responsiveness T1 *arge number of direct and indirect com!etitors (Economic) httpJMM@@@+.pse.com.phMhtmlM isted"ompaniesMpdfM+(''MCF"S'.AS3ec+('(.pdf httpJMM@@@+.pse.com.phMhtmlM isted"ompaniesMpdfM+(''MA,IS'.ASApr+(''.pdf

Rating @ ; Annual reports of Collibee Food "orporation and Alliance ,lobal ,roup% IN".% These companies control more than half of the fast food industr1 marAet share. It describes ho@ saturated the marAet is.

Number ofPhilippines Stores of Mang Inasal

(As of 2011)
500 No. of Stores 400 300 200 100 0 Mang Inasal 90 e!es "arbec#e 300 71 Chic$"o! 20 "acolod Chicken Inasal 423 423 50 100 2008 2009 2010 2011

!arbe"ue Fast Food Industr# in the

48

Fast Food Stores in the Philippines

(As of 2011)
800 700
No. of Stores

600 500 400 300 200 100 0 Jollibee Chowking Mang Inasal Greenwich Mcdonalds

(, Decline o Palay Production that may lead to in lated rice prices 6Economic7 httpJMMcountr1stat.bas.go7.phM Rating 3 N Ser7ing unlimited rice has captures a lot of customers for Mang Inasal. #o@e7er% due to the declining 8hilippine agriculture% rice prices ha7e plummeted to nearl1 8/( per Ailo last +((:. 8ala1 production must be stable and consistent to obtain price stabilit1 for rice.

Pala# Produ"tion $ro%th &ate

10%00& 5%00& 0%00& 2005 2006 2007 2008 2009 2010 2011 $5%00&

'ala! 'rod#c(ion Grow(h a(e

49

T3 +ili!inos are loo)ing for a healthier lifestyle (Socio'cultural) httpJMM@@@.allaboutdiabetes.netMpromoting;filipino;health1;lifest1leM

Rating , ; As @e all Ano@% Mang Inasal offers unlimited rice for most of its meals. #o@e7er% more and more Filipinos are leaning to@ards a healthier lifest1le for longe7it1 and tranquilit1.

T& ,ealth related ris)s of !oultry (Socio'cultural) httpJMM@@@.birdlife.orgMne@sMne@sM+((.M(2Ma7ianSfluSreport.html

Rating @ ; Mang InasalTs most famous product is chicAen. The article abo7e describes ho@ a7ian fluenBa or bird flu mo7es and being transferred from imported froBen poultr1 to humans. It discusses the danger of catching the said disease through imported froBen poultr1.

T( ,igh number of foreign com!anies entering the fast food mar)et s- local brands (Economic) httpJMM@@@.tripleiconsulting.comMmainMphilippines;business;registrationMfind;out;@h1 Rating @ N Man1 foreign companies enter in the 8hilippines because of the lo@ cost and high income in doing business in the countr1. Also% globaliBation is happening @orld@ide% especiall1 in the 8hilippines. Filipinos @idel1 accept products and ser7ices offered b1 foreigners and oftentimes% the1 prefer these to local brands. Mang Inasal @ill

50

ha7e a hard time in selling their products% as man1 competitors @ill enter the countr1 in the future.

@. E!E Matrix External !actor Evaluation Matrix Source 5eight Socio;cultural Technological Technological Socio;cultural Socio;cultural (.+ (.'( (.'( (.'( (.(4

'ey External !actors

Rating 2 + + 2 +

5eighted Score (./ (.+ (.+ (.2 (.'

$PP$R(&%I(IES $' Trending barbecue fast food industr1 $+ Technological ad7ancements in the field of poultr1 production $2 ,ro@ing number of people @ho uses Internet and Mobile 8hones $* Increasing number of potential o@ners through franchising $4 Increase in demand for pacAaged food products due to more people mo7ing to urban areas ()REA(S T' arge number of direct and indirect competitors T+ 3ecline of 8ala1 8roduction that ma1 lead to inflated rice prices T2 Filipinos are looAing for a healthier lifest1le T* #ealth related risAs of poultr1 T4 #igh number of foreign companies entering the fast food marAet 7s. local brands (otal

!conomic !conomic Socio;cultural Socio;cultural !conomic

(.'4 (.(4 (.(4 (.'( (.'( 3

2 ' + 2 2

(.*4 (.(4 (.' (.*4 (.2 ,.0.

8. #ompetitive Pro ile Matrix As an established industr1% Fast Food ser7ice has been a nest for a number of companies and choosing Ae1 competitors for Mang Inasal @ould ha7e been 7er1 difficult.

51

Fortunatel1% Mang Inasal is part of an another branch for fast food ser7ice simpl1 because their products% pricing and le7el of qualit1 are different from the Ae1 pla1ers of the 8hilippine Fast Food Industr1; Collibee Food "orporation and Alliance ,lobal ,roup% Inc (the master franchise holder of Mc3onalds in the 8hilippines). -e1 competitors of Mang Inasal @ere limited to three; "hicbo1 and 5acolod "hicAen Inasal. These companies along @ith Mang Inasal ha7e the same product line (barbeque or grilled food) and pricing is almost identical.

3.3 'ey #ompetitors o Mang Inasal #ompetitor A3 #hic"*oy According to their @eb site% "hic;5o1U is a ne@ trademarA and business model of 8ier $ne 5ar and ,rill #oldings "orporation% the compan1 behind the successful 8ier $ne 5ar and ,rill restaurant chain in the 8hilippines. #a7ing first tried the delicious and tast1 lechon manoA and lechon liempo in "ebu and the "hicAen Inasal of 5acolod% 8ier $ne 5ar and ,rill #oldings "orporation sa@ its business potential and the opportunit1 to tap into the lechon manoA% lechon liempo and chicAen inasal industr1 and therefore% brought the secret recipe to Manila. "hic;5o1U opened its first 3ine; In store last (4 Ma1 +('( and began offering its 3ine;In store concept for franchise. In =ust ' 1ear and 2 months since @e opened our first franchised store in Molito Alabang% @e ha7e gro@n into a total of eight1 fi7e (:4) dine; in stores% eight1 one (:') units of @hich are franchised. Fort1; four (**) more franchised stores are under construction.

"hic;5o1 has been constantl1 gro@ing and it is the archri7al of Mang Inasal for

52

it also offers the same le7el of qualit1 in all aspects% i.e. food and ser7ice. "hic;5o1 also offers an unlimited rice and unlimited iced tea% @hich Mang Inasal pioneered in the 5arbeque Fast Food Industr1.

#ompetitor A, *acolod #hic4en Inasal According to their @eb site% 5acolod "hicAen Inasal is o@ned and managed b1 the sisters and brother team of Rose% 5ing and CM Tanalgo% 5acolod "hicAen Inasal opened its first taAe out and deli7er1 counter in '))2. It @as a small taAe out spot at !3SA "entral "omple6 in Mandalu1ong "it1 @ith deli7er1 ser7ices to the $rtigas and Mandalu1ong areas. The Tanalgo siblings opted to start out @ith a small stall to first ha7e a feel of the marAet in Manila.

5acolod "hicAen Inasal is the oldest of the four but its slo@ gro@th and e6pansion has been the biggest factor of their small marAet share e7en though the1 are the pioneer of ser7ing chicAen inasal in the metro.

3., #ritical Success !actors #S! A3 Price #ompetitiveness 8rice is 7er1 important especiall1 for fast food businesses because the threat of substitutes is strong. Filipinos are 7er1 price sensiti7e and an increase in price @ill turn them off. 8rice competiti7eness is not a matter of the cheapest price but it is about being able to deli7er delicious and high qualit1 products @hile the consumers pa1 affordable and =ustified prices. In Filipino terms FsulitH.

53

Importance 9eightJ 2(D

#S! A, Mar4eting and Advertising Initiatives In an industr1 @here competition is tight% marAeting and ad7ertising 1our products @ill help 1our compan1 ha7e an ad7antage o7er competitors. Some firms percei7e marAeting as an e6pense and the1 fail to see the 7alue of marAeting and ad7ertising. MarAeting is an in7estment for the firm?s future. Importance 9eightJ +(D

#S! A@ Mar4et Share #a7ing a bigger marAet share assures the firm profit and longe7it1. The percentage of an industr1 or marAetTs total sales that is earned b1 a particular compan1 o7er a specified time period. MarAet share is calculated b1 taAing the compan1Ts sales o7er the period and di7iding it b1 the total sales of the industr1 o7er the same period. This metric is used to gi7e a general idea of the siBe of a compan1 to its marAet and its competitors. A larger marAet share assures the firm the dri7er seat of the industr1. Importance 9eightJ '(D

#S! AB Product Cuality 8rice competiti7eness assures 1ou of customers. #o@e7er% lo1al customers are achie7ed through high qualit1 products. "onsumers are 7er1 particular @ith product qualit1; one mistaAe the1 ma1 ne7er bu1 again. Importance 9eightJ 4D

54

#S! A. *randing and Image A reputable brand @ill be a free marAeting for the firm. 5rands are not onl1 part of the business it is the institution of the business. 5ig brands liAe Collibee and Mc3onald?s ha7e continuall1 dominated the fast food industr1 because of their brand and image. A tarnished image @ill discourage consumers from bu1ing. Importance 9eightJ '(D

#S! A/ Product Variety A limited product line is a disad7antage for the firm. "onsumers get tired from bu1ing the same food again and again. 8roduct 7ariet1 @ill be 7er1 important for e6pansion and longe7it1 of the firm. Importance 9eightJ 4D #S! A0 Service Cuality "onsumers @ant to feel important. Ser7ice qualit1 must be right on the middle for consumers do not liAe unnecessar1 emplo1ee interactions. "onsumers also hate being neglected. Importance 9eightJ 4D

#S! A1 Accessi8ility Accessibilit1 in the location of stores of the compan1 is 7er1 important to attract and entice customers. It is 7er1 important factor in ha7ing a business because b1 ha7ing good and accessible location% the compan1 @ill generate more income as more customers

55

bu1 from them. Importance 9eightJ '4D

3.@ Mang Inasal #S! Ratings #S!A3 Mang Inasal<s Price #ompetitiveness 6B7 Mang Inasal?s products ranges from 8*);8)). Most of their customers are students and people part of the labor force. Students and @orAers usuall1 ha7e a tight budget. Aside from being affordable% Mang Inasal?s unlimited rice promo ha7e encouraged Filipinos (lo7es rice) to bu1 again and again e7en though their product line @as limited (the1 recentl1 e6panded their product line). SourceJ httpJMM@@@.manginasal.comMourmenu.html

#S!A, Mang Inasal<s Mar4eting and Advertising Initiatives 6B7 Aside from the MarA 5autista endorsement% Mang Inasal started a ne@ ad7ocac1 program supporting $8M. Mang Inasal has continuall1 in7ested time and mone1 for marAeting and ad7ertising purposes. SourceJ articleIdR./2+*+OpublicationSub"ategor1IdR.( httpJMM@@@.1outube.comM@atchP7Ra8uqIl;/*Bs httpJMM@@@.philstar.comMArticle.asp6P

#S!A@ Mang Inasal<s Mar4et Share 6B7 Through franchising% Mang Inasal?s branches ha7e gro@n to 2((. Mang Inasal is

56

regarded as the fastest gro@ing fast food chain in the countr1. In the 5arbeque Fast Food Industr1% Mang Inasal is the clear marAet leader. SourceJ httpJMMbusiness.globe.com.phMne@sMmang;inasal;opens;2((th;branch

#S!AB Mang Inasal<s Product Cuality 6B7 $7erall emplo1ee performance and qualit1 of products Mang Inasal ha7e Aept its standards high enough. #o@e7er% according to an inter7ie@ @ith Ms. Andrea Tan im% a franchisee of Mang Inasal% customers sometimes complain about not recei7ing free soup and the food is not cooAed properl1 but these are =ust minor complaints that @ill not affect the o7erall standard of Mang Inasal.

#S!A. Mang Inasal<s *randing and Image 6@7 A part of Mang Inasal enterprise @as sold to Collibee Food "orporation. Mang Inasal as a brand that caters to the masses. CF"?s in7ol7ement @ith Mang Inasal is a boost for the brand. SourceJ httpJMMbusiness.inquirer.netMmone1MtopstoriesM7ie@M+('('(');+):*4/MCollibee;to; bu1;.(;staAe;in;Mang;Inasal;for;825

#S!A/ Mang Inasal<s Product Variety 6,7 Mang Inasal?s menu is still not di7erse as other fast food restaurants. The compan1 onl1 promotes its chicAen inasal promos% @hich the customers ha7e onl1 a limited of products to choose from. SourceJ httpJMM@@@.manginasal.comMourmenu.html

57

#S!A0 Mang Inasal<s Service Cuality 6B7 Mang Inasal has fast ser7ice in ser7ing food to their customers. The compan1 has a training facilit1 that has a mocA;up branch of Mang Inasal to further impro7e ser7ing the customers. SourceJ httpJMM@@@.manginasal.com

#S!A1 Mang Inasal<s Accessi8ility 6B7 The compan1 has an outstanding strategic location of their branches nation@ide. In addition% Mang Inasal has the most number of branches compared to its competitors. SourceJ httpJMM@@@.manginasal.com

3.B #hic"*oy #S! Ratings #S!A3 #hic"*oy<s Price #ompetitiveness 6@7 "hic;5o1?s products costs around 8*);8)) liAe Mang Inasal and 5acolod "hicAen Inasal. The1 ha7e been able to attract more and more consumers because of their affordable prices. #o@e7er% some of its products liAe the drinAs and desserts are more e6pensi7e than Mang Inasal. SourceJ httpJMMchic;bo1.com.phMmenuScm.html

#S!A, #hic"*oy<s Mar4eting and Advertising Initiatives 6,7 This is one @eaAness for "hic;5o1. Aside from billboards and print ads% "hic;5o1 ha7e failed to introduce their brand nation@ide. "hic;5o1 is the 1oungest fast food chain

58

among the four restaurants.

#S!A@ #hic"*oy<s Mar4et Share 6@7 5eing the 1oungest fast food chain among the four restaurants% "hic;5o1 @as able to e6pand and open branches around the metro and uBon. "hic;5o1 is behind Mang

Inasal for the most number of branches in the countr1. Since opening their first dine;in store last +('(% "hic;5o1 @as able to attract in7estors and franchisees that helped them e6pand.

#S!AB #hic"*oy<s Product Cuality 6@7

FSome things to lo7e about this placeJ its name (don?t 1ou =ust lo7e the pun on chicAbo1P)% the pre;inflationar1 prices (a steaming bo@l of sinigang at 8*)G) and the deadl1% highl1 addicting combination of chicAen inasal and roasted porA bell1 @hich are the house specialties.H SourceJ httpJMM@@@.annal1n.netM+('(M(4M2'Mchic;bo1;balamban;liempo;goes;to;manilaM #S!A. #hic"*oy<s *randing and Image 6B7 3espite the "hic;5o1 "aterpillar Scandal @as first posted through social media% "hic;5o1 continues to thri7e and build their brand against all odds. Also% "hic;5o1 is leading in terms of its branding and image as its target marAet are the 1oung professionals. SourcesJ httpJMMne@sinfo.inquirer.netM'():4.MD!+D:(D):looA; thereD!+D:(D))s; caterpillar;on;m1;7eggiesD!+D:(D))

59

#S!A/ #hic"*oy<s Product Variety 6B7 Aside from their lechon products% "hic;5o1 @as able to taAe different dishes from uBon% &isa1as and Mindanao. The1 ha7e one of the most di7erse product line for a fastfood chain.

#S!A0 #hic"*oy<s Service Cuality 6@7 FTheir ser7ice @as efficientE the cre@s are 7er1 attenti7e to their customers. The1 maAe sure that the1 @ill prioritiBe 1ou and 1our entire request @ill be granted.H SourceJ httpJMMracAell+*lumberio.blogspot.comM+('(M(4Mchic;bo1.html

#S!A1 #hic"*oy<s Accessi8ility 6@7 The compan1 is second in ha7ing the most number of barbecue fast food nation@ide. #o@e7er% the "hic;5o1 still struggles because the compan1 is still far behind from Mang Inasal.

3.. *acolod #hic4en Inasal #S! Ratings #S!A3 *acolod #hic4en Inasal<s Price #ompetitiveness 6,7 5acolod "hicAen Inasal prices ranges from 8*).4( to 8)).4(. 5acolod chicAen inasal is much e6pensi7e than "hic;5o1 and Mang Inasal. #o@e7er% the1 still maintain their prices affordable for people @ith tight budgets. SourcesJ httpJMM@@@.re1esbarbecue.netMmenuMregular;menuM

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#S!A, *acolod #hic4en Inasal<s Mar4eting and Advertising Initiatives 6@7 The brand @as Ano@n in the teleno7ela in A5S;"5N?s 0sabella as it partnered @ith 5acolod "hicAen Inasal. It also continuousl1 promotes its name through radio ad7ertisements. SourcesJ httpJMM@@@.re1esbarbecue.netMuncategoriBedMensogo;and;re1es;barbecue;tie;upM httpJMM@@@.re1esbarbecue.netMne@sMchecAout;our;latest;billboardsM

#S!A@ *acolod #hic4en Inasal<s Mar4et Share 637 5acolod "hicAen Inasal garnered the lo@est score for MarAet Share. !6pansion has been stagnant for 5acolod "hicAen Inasal and the1 ha7e failed to reach 2( branches since their opening in '))2.

#S!AB *acolod #hic4en Inasal<s Product Cuality 6,7 Although 5acolod "hicAen Inasal?s main specialt1 is the chicAen inasal% it began to e6pand a more @ide selection of &isa1an as @ell as Filipino fa7orite dishes. 5acolod "hicAen Inasal continuall1 impro7es their products and de7elops ne@ dishes to Aeep up @ith its customer?s needs and @ants. It has '( main product categories @ith o7er '(( dishes for the customers to en=o1. SourcesJ httpJMM@@@.m1mer1l.comM+(()M(*Mre1es;barbecue;restaurant;re7ie@.html

#S!A. *acolod #hic4en Inasal<s *randing and Image 6,7 5acolod "hicAen Inasal is the oldest brand among the four fast food chains. Their products ha7e appeared in T& sho@s liAe 0sabella and 5ett1 a fea. #o@e7er% 5acolod

61

"hicAen Inasal?s consumer base is limited to the metro because the1 ha7e not e6panded to rural pro7inces especiall1 northern uBon.

#S!A/ *acolod #hic4en Inasal<s Product Variety 6B7 5acolod "hicAen Inasal continuall1 impro7es their products and de7elops ne@ dishes to Aeep up @ith its customer?s needs and @ants. It has '( main product categories @ith o7er '(( dishes for the customers to en=o1.

#S!A0 *acolod #hic4en Inasal<s Service Cuality 6,7 5acolod "hicAen Inasal has poor ser7ice compared to Mang Inasal and "hic;5o1. It slo@ ser7ice affects the lo1alt1 and entr1 of ne@ customers to their stores.

#S!A1 *acolod #hic4en Inasal<s Accessi8ility 6,7 5acolod "hicAen Inasal has strategic locations of their stores that are found inside malls and other establishments. #o@e7er% it is not enough because the compan1 has onl1 +( branches nation@ide.

3./ #ompetitive Pro ile Matrix 6#PM7 Ratings

62

Mang Inasal

#hic" *oy

*acolod #hic4en Inasal Score Rate Score

#ritical Success !actors 8rice "ompetiti7eness MarAeting and Ad7ertising Initiati7es MarAet Share 8roduct <ualit1 5randing and Image 8roduct &ariet1

5eight

Rate

Score

Rate

(.2(

'.+

(.)

(./

(.+(

(.:

(.*

(./

(.'( (.(4 (.'

* * 2

(.* (.+ (.2

2 2 *

(.2 (.'4 (.*

+ + +

(.+ (.' (.+

(.(4

(.'

(.'4

(.+

Ser7ice <ualit1

(.(4

(.+

(.'4

(.'

Accessibilit1 (otal

(.'4 '

(./ @.1

(.*4 +.)(

(.2 +.2(

c. Internal !actor Evaluation Matrix 3. Strengths and Mang Inasal<s responsiveness S1 .ggressi e in !romoting their !roducts (Strategy) httpJMM@@@.adobomagaBine.comMglobalMmodule.phpP MRne@s.le7el'OidR'2+(:':./'*(4 httpJMM@@@.business@eeAmindanao.comM+(''M''M(*M@hat?s;cooAing;@ith;mang;inasal?s; '';'';''M

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Rating B " Mang Inasal maAes itself Ano@n through all the promotional tools possible and it also maAes sure that it maAes the compan1 present to masses. Mang Inasal?s endorser is MarA 5autista @ere 1ou can see his face on billboards and print ads. ast 1ear% the F'';'';''H ad7ertisement of Mang Inasal became a m1ster1 to the publicE 1ou can see it e7er1@here from billboards to commercials. This ad7ertising strateg1 made Mang Inasal more popular as man1 are curious and e6cited for @hat is going happen on the said date. Mang Inasal @ishes for the masses to retain the catch1 =ingles and commercials it presents% bringing more customers to the fast food chains thus increasing profit for the compan1.

S2 $ar)et leader in the barbecue fast food chain (%roduct) httpJMM@@@.ats;sea.agr.gc.caMaseM4))';eng.htm

Rating @ " Mang Inasal became the largest barbecue fast food chain in the 8hilippines b1 being accessible and putting up man1 outlets nation@ide% through its affordabilit1 and products suited according to 8ino1 taste.

S3 .ccessibility/ Strategic locations catering to the masses (Strategy) httpJMM@@@.mb.com.phMarticlesM+/2).+Mthe;e6pansion;mang;inasal

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Rating @ " Mang Inasal has @idened its scope placing its stores strategicall1% letting its customers access their stores @ith con7enience. #a7ing hundreds of branches across the countr1% finding the nearest Mang Inasal store @ouldn?t be such a burden. #a7ing high 7isibilit1% it @ill al@a1s be an option for consumers to dine;in and en=o1 the ser7ices of the firm has to offer. S& Intensified em!loyee com!etency through establishment of a ne# training facility and !rogram (Em!loyee) httpJMMbusiness.inquirer.netMmone1MtopstoriesM7ie@M+('((:'*;+:/.))MInion;of;batcho1; and;inasal;creates;a;business;boom

Rating @ D The o@ner of Mang Inasal% !dgar C. Sia% partnered @ith the o@ners of 3eco?s $riginal batcho1. "hicAen inasal products go together @ith batcho1 and this @ill be a great product and additional brand to carr1 @ith the e6pansion of the firm. 9ith the help of Sia?s In=ap In7estments Inc.% 3eco?s has si6 restaurants in Iloilo and plans to ha7e more branches in Manila.

S( Increased O!erational Efficiency through the ac0uisition of an enter!rise !lanning soft#are (Strategy) httpJMM@@@.manginasal.comMimagesMMISNe@s etter3esignS+('(a.pdf

Rating B " Mang Inasal partnered @ith $racle% @hich is one the most compete and integrated business soft@are and hard@are s1stems that @ill help Mang Inasal @ith their internal operating s1stems. This @ill also help the firm% as more branches are being set up

65

nation@ide and b1 this s1stem% it @ill be 7er1 eas1 to be monitored b1 the managers and o@ners of the firm the operations that ha7e done b1 its emplo1ees.

,. 5ea4nesses and Mang Inasal<s responsiveness 11 %oor restaurant en ironment (Resources) httpJMMpassingparadigms.blog.comMtagMcustomer;ser7ice;+M Rating , " Some Mang Inasal branches are not as good as others. There is no consistenc1 of ho@ the structure of Mang Inasal is made% although the interior of each stores are the same but some branches lacAs space% no air conditioning units and ha7e untid1 surroundings.

12 *imited !roducts offered to consumers (%roduct) httpJMM@@@.manginasal.comMourmenu.html

Rating , D Mang Inasal has a limited 7ariet1 of products to choose from. "ustomers? satisfaction @ill diminishE the compan1 should add more products to their menu so that customers @ill bu1 more from them.

13 Inconsistency in distribution of !roducts (Resources) httpJMM@@@.manginasal.comMourmenu.html

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Rating , D Mang Inasal commissar1 in the countr1 @orAs at the top of its game but as it e6pands to other pro7inces% constraints @ill surel1 be faced. The firm has no capacit1 to maintain this Aind of s1stem in e7er1 branch in the 8hilippines in order to supll1 ingredients +*M..

1& Inconsistency of the 0uality of !roducts (%roduct) httpJMMa'pino1.blogspot.comM+(''S(.S('Sarchi7e.html

Rating , D There are feedbacAs from customers that the qualit1 of products ser7ed in the branches of Mang Inasal are different from one anothr. Some branches offers good qualit1 of their product line% @hile others doesn?t ha7e the ample qualit1 that consumers should en=o1. Mang Inasal has a problem @ith its inconsistent uniformit1 @ith the taste of their foods that is a problem because the firm has a hard time in monitoring because it has too man1 branches to control.

1( 2nable to ma3imi4e 2&'hour ser ices (%roduct) httpJMM@@@.nBte.go7t.nBMe6plore;e6port;marAetsMmarAet;research;b1;industr1MFood;and; be7erageM8agesMFood;and;be7erage;marAet;in;the;8hilippines.asp6

Rating @ D Mang Inasal has stores that open +*M.. This is 7er1 costl1 for the compan1 because there are onl1 fe@ customers @ho bu1 from them at the middle of the night% thus generating a lo@ amount of income.

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@. I!E Matrix 'ey External !actors S(RE%:()S S' Aggressi7e in promoting their products S+ MarAet leader in the barbecue fast food chain S2 Accessibilit1J Strategic locations catering to the masses S* Intensified emplo1ee competenc1 through establishment of a ne@ training facilit1 and program S4 Increased operational efficienc1 through acquisition of an enterprise resources planning soft@are 5EA'%ESSES 9' 8oor restaurant en7ironment 9+ imited products offered to consumers 92 Inconsistenc1 in distribution of products 9* 3eficienc1 in assessing and e7aluating branch and emplo1ee performances 94 Inable to ma6imiBe +*; hour ser7ices (otal Internal !actor Evaluation Source 5eight Rating Strateg1 8roduct Strateg1 !mplo1ee (.'4 (.(4 (.'4 (.'( * 2 2 * 5eighted Score (./ (.'4 (.*4 (.*

Strateg1

(.'(

(.*

Resources 8roduct Resources $perations 8roduct

(.'( (.(4 (.'( (.'4 (.(4 3

+ + + + 2

(.+ (.' (.+ (.2 (.'4 ,.2.

d. S5$( The S9$T matri6 helps de7elop four t1pes of strategies% @hich are the Strengths; $pportunities (S$)% 9eaAnesses;$pportunities (9$)% Strengths;Threats (ST) and

9eaAnesses;Threats (9T).

Market &evelopment 'trategies:

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'. S2;T'J 5ranch out stores in Mindanao specificall1 in urbaniBed cities

Market (enetration 'trategies: '. S';$'J #ire ne@ product endorsers i.e. Cohn lo1d "ruB and Anne "urtis +. S';S*;S4;$*J $rganiBe a Mang Inasal Franchise Summit to attract potential franchisees 2. S';T';T4J Intensif1 social media marAeting

(roduct &evelopment 'trategy: '. 92;$2J 5uild a smooth communication channel for faster distribution of products from the supplier to the branches +. 9*;$*J Form a department for auditing and e7aluating the compan1?s financial statements and booAs of records. 2. 9';9+;$2J "onduct research through mobile and online sur7e1s

Related &iversification 'trategy: '. 9+;T2;T*J Adding more and healthier products their menu i.e. pinaAbet% chopseu1 and
laing

S5$( MatrixE

69

S(RE%:()S 6S7 S' Aggressi7e in promoting their products S+ MarAet leader in the barbecue fast food chain S2 Accessibilit1J Strategic locations catering to the masses S* Intensified emplo1ee competenc1 through establishment of a ne@ training facilit1 and program S4 Increased operational efficienc1 through acquisition of an enterprise resources planning soft@are $PP$R(&%I(IES 6$7 $' Trending barbecue fast food industr1 $+ Technological ad7ancements in the field of poultr1 production $2 ,ro@ing number of people @ho uses Internet and Mobile 8hones $* Increasing number of potential o@ners through franchising $4 Increase in demand for pacAaged food products due to more people mo7ing to urban areas ()REA(S 6(7 T' MarAet becomes saturated due to booming fast food industr1 T+ 3ecline of 8ala1 8roduction that ma1 lead to inflated rice prices T2 Filipinos are looAing for a healthier lifest1le T* #ealth related risAs of poultr1 T4 #igh number of foreign companies entering the fast food marAet 7s. local brands S( S(RA(E:IES S';T';T4 (MarAet 8enetration) Intensif1 social media marAeting S2;T' (MarAet 3e7elopment) 5ranch out stores in Mindanao specificall1 in urbaniBed cities S$ S(RA(E:IES S';$' (MarAet 8enetration) #ire ne@ product endorsers i.e. Cohn lo1d "ruB and Anne "urtis S';S*;S4;$* (MarAet 8enetration) $rganiBe a Mang Inasal Franchise Summit to attract potential franchisees

5EA'%ESSES 657 9' 8oor restaurant en7ironment 9+ imited products offered to consumers 92 Inconsistenc1 in distribution of products 9* 3eficienc1 in assessing and e7aluating branch and emplo1ee performances 94 Inable to ma6imiBe +*;hour ser7ices 5$ S(RA(E:IES 92;$2 (8roduct 3e7elopment) 5uild a smooth communication channel for faster distribution of products from the supplier to the branches 9*;$* (8roduct 3e7elopment) Form a department for auditing and e7aluating the compan1?s financial statements and booAs of records. 9';9+;$2 (8roduct 3e7elopment) "onduct research through mobile and online sur7e1s

S5$( MA(RIF

5( S(RA(E:IES 9+;T2;T* (Related 3i7ersification) Adding more and healthier products their menu i.e. pinaAbet% chopseu1 and laing

70

e. SPA#E MA(RIF The Strategic 8osition and Action !7aluation (S8A"!) Matri6% is a four; quandrant frame@orA that indicates @hether the firm needs an aggressi7e% conser7ati7e% defensi7e or competiti7e strateg1 for the organiBation. There are four factors that are 7er1 important to determine the firm?s strategic position% @hich are the financial position% competiti7e position% stabilit1 position and industr1 position.

a. Financial Strength (FS) RatingsJ For FS use V' (@orst) to V/ (best) Mang Inasal is 7er1 efficient in using its assets in generating sales% as its asset turn o7er rating is V2. The firm?s liquidit1 rating is V/ because of marAetabilit1 and made it stronger @ith associating @ith Collibee Food "orporation. Mang Inasal is no@ the leading barbeque fast food industr1 so it enables to gain more re7enues each 1ear @ith a rating of V4.

b. Industr1 Strength (IS) RatingsJ For IS use V' (@orst) to V/ (best) A V4 rating for gro@th potential is gi7en to the firm because it has a huge chance of maAing it more successful as it Ano@n nation@ide. The profit potential rating is V4 because it has man1 branches in the 8hilippines that the firm can generate more income as the1 continue to put up more branches. A rating of V2 in resource utiliBation as the compan1 is using their ra@ materials efficientl1.

c. !n7ironmental Stabilit1 (!S) RatingsJ For !S use ;' (best) to ;/ (@orst)

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It is 7er1 eas1 to put up a business in the 8hilippines% especiall1 in the fast food industr1. A rating of ;4 is gi7en to the barriers to entr1 into marAet because there are a lot of competitors in the food industr1. The price range of competing products is ;2 as more business sells affordable meals to Filipinos. A ;+ rating for the inflation rate as prices of products continues to increase. The technological change rating is ;' since more ne@ products are being in7ented and sold @orld@ide and technolog1 is gro@ing faster o7er the 1ears.

d. "ompetiti7e Ad7antage ("A) RatingsJ For "A use ;' (best) to ;/ (@orst) The marAet and ad7ertising initiati7es and marAet share rating are both ;'. Mang Inasal is the number in the barbeque fast food industr1 and it continues to gro@ as more branches are built. 8eople can see e7er1@here ad7ertisements and endorsements of Mang Inasal. The branding and image rating is ;+ since the part o@ner of the firm is Collibee Food

72

!inancial Strength #igh Assets Turn;o7er iquidit1 Net Re7enue Average Industry Strength ,ro@th 8otential 8rofit 8otential Resource ItiliBation Average Economic Sta8ility 8rice range of competing products Inflation Rates 5arriers to entr1 into marAet Technological "hanges Average #ompetitive Advantage MarAet and Ad7ertising Initiati7es MarAet Share 5randing and Image 8roduct and Ser7ice <ualit1 Average

Rating V2 V/ V4 GB./0 V4 V4 V2 GB.@@ ;2 ;+ ;4 ;' ",.0. ;' ;' ;+ ;+ "3..

"orporation that is a prestige and a @ell;Ano@n brand. The product and ser7ice qualit1 rating is ;+ as it product line is appropriate to its prices that are lo@ cost budget meals for the people to en=o1.

Space MatrixE 5ased from S8A"! matri6% Mang Inasal belongs in the Aggressi7e quadrant. The firms should pursue bacA@ard% for@ard and horiBontal integration% marAet penetration% marAet de7elopment% product de7elopment and related or unrelated di7ersification.

Space Matrix #alculation !S (;+..4) V FS (V*./.)R '.)+

73

"A (;'.4) V IS (V*.22)R V+.:2

. Internal"External Matrix 5ased on the I;! matri6% Mang Inasal falls in cell &. The recommended strategies are hold and maintain for the firm. MarAet penetration and product de7elopment strategies can be used. Total 9eighted Score for IF!R +.)4 Total 9eighted Score for !F!R +..4 *.( 2.( +.(

74

I I& &II

II & Mang Inasal &III

III &I I>

2.(;*.( +.(;+.)) '.(;'.)) ResultJ #old and maintain StrategiesJ MarAet 8enetration and 8roduct 3e7elopment g. :rand Strategy Matrix Ising the ,rand Matri6 Strateg1% firms are positioned in in one of the four quadrant depending on the firms? competiti7e position and industr1 gro@th.

Market !rowth Rate% Rapid 3emand for food ser7ice industr1 @ill al@a1s be high because of its genre. Restaurants and fast food chains are the main contributors for the food ser7ice industr1 to @hich Mang Inasal belongs. In the 1ear +(()% there are '2%2*: restaurants% bars% fast food chains and other drinAing and eating;places present in our countr1 and it continues to gro@ until this time. In Mang Inasal case% @ith the help of the increasing chicAen barbecue industr1 and an increase in the number of people @ho are interested in franchising then its marAet continuous to gro@.

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"ompetitive (osition% 'trong Mang Inasal has a strong competiti7e position for the reason that it is the marAet leader in the barbecue fast food industr1. 5ecause of its being proacti7e in promoting and ad7ertising its products and ha7ing accessible locations of store for the people% it @as able to attract customers and top the barbecue fast food industr1.

"ompetitive (osition% 'trong Mang Inasal has a strong competiti7e position for the reason that it is the marAet leader in the barbecue fast food industr1. 5ecause of its being proacti7e in promoting and ad7ertising its products and ha7ing accessible locations of store for the people% it @as able to attract customers and top the barbecue fast food industr1. Rapid MarAet ,ro@th II MarAet 3e7elopment MarAet 8enetration 8roduct 3e7elopment #oriBontal Integration 3i7estiture iquidation III Retrenchment Related 3i7ersification Inrelated 3i7ersification 3i7estiture iquidation I MarAet 3e7elopment MarAet 8enetration 8roduct 3e7elopment For@ard Integration 5acA@ard Integration #oriBontal Integration Related 3i7ersification I& Related 3i7ersification Inrelated 3i7ersification Coint &enture

76

9eaA "ompetition 8osition

Strong "ompetition 8osition

Slo@ MarAet ,ro@th Mang Inasal falls under the quadrant one of the grand strateg1 matri6. Inder this quadrant% marAet de7elopment% marAet penetration% product de7elopment and related di7ersification are a7ailable for business. #o@e7er% Mang Inasal cannot adapt horiBontal integration for the1 are bought b1 its competitor Collibee Food "orporation. For@ard Integration is not also a7ailable since Mang Inasal don?t offer merchandise that can be directl1 sold. astl1% 5acA@ard Integration @ill not be appropriate since Mang Inasal has different suppliers.

h. Summary o Strategies After doing the T$9S% S8A"!% Internal;!6ternal% and ,rand Strateg1 Matrices% different recommended strategies @here tallied to determine the most common option for the firm. MarAet 8enetration MarAet 3e7elopment 8roduct 3e7elopment ($5S > > > SPA#E > > > I"E > > :RA%D > > > ($(AL * 2 *

77

For@ard Integration 5acA@ard Integration Related 3i7ersification #oriBontal Integration "oncentric 3i7ersification AllianceMMerger 3i7estment iquidation

>

> > > >

> > > >

+ + 2 + ( ( ( (

The most common options are MarAet 8enetration and 8roduct 3e7elopment. For the third strateg1% MarAet 3e7elopment and Related 3i7ersification got the same total. #o@e7er% marAet de7elopment strateg1 @ill suit the compan1 better.

i. Cuantitative Strategic Planning Matrix 6CSPM7 The <uantitati7e Strategic 8lanning Matri6 (<S8M) is an instrument that is used in order to e7aluate the strategies and alternati7e strategies% based on the different e6ternal and internal factors that are listed.

)n )pportunities: MarAet 8enetration is effecti7e @hen usage rate of customers could be increased significantl1. A rating of * is gi7en to more Filipinos are mo7ing to urban area since this @ill help in order to increase the marAet share of Mang Inasal since ne@ customers @ill be tapped b1 the firm through its ad7ertisements.

MarAet de7elopment is most suitable @hen there are ne@ channels of distribution @ill be a7ailable. Increase in number of potential o@ners through franchising recei7es a rate * for the reason that the ne@ franchisee @ill be able to pro7ide ne@ location of Mang Inasal store

78

@hich are not 1et tapped. A rate of 2 is gi7en to MarAet 8enetration for the same opportunit1 since ne@ store of Mang Inasal @ill be able to attract ne@ customers.

A rating of * is gi7en to product de7elopment for trending barbecue fast food industr1 for it is most acceptable since Mang Inasal competes in a high;gro@th industr1. Technological ad7ancements in the field of poultr1 production and gro@ing number people @ho uses Internet and mobile phones also recei7es a rating * for this can help in order for Mang Inasal to impro7e their products and customer ser7ices.

)n Threats 8roduct 3e7elopment is highl1 applicable to compliance to sanitar1 standards. Mang Inasal should al@a1s checA the sanitation of their different branches and enhance its ser7ice for sanitationE therefore it recei7es a rating of *. MarAet 8enetration got a rating of + since it is not that much applicable to this factor.

MarAet 8enetration is used in order to increase sales through marAeting efforts. #igh number of foreign companies entering the fast food marAet 7s. local brands @ould mean more competitors. Thus% further marAeting efforts is needed b1 Mang Inasal in order to penetrate and attract customers from its different competitors.

A rating of * is gi7en to the 8roduct 3e7elopment for Saturation of the marAet due to booming fast food industr1. Mang Inasal should impro7e its products and menu in order to compete @ith its direct and indirect competitors and those established and ne@ fast food

79

chains. MarAet 8enetration recei7es rating of 2 to attract more customers in order to increase further the marAet share of Mang Inasal.

#ealth related risAs of poultr1 products and Filipinos are looAing for healthier lifest1les are not rated for the reason the three strategies are not applicable to these factors.

)n 'trengths As a marAet leader in the barbecue fast food chain and being aggressi7ein promoting their products% marAet penetration is the best strateg1 to use. Mang Inasal can continue to do more ad7ertising and do promos in order to drag bigger marAet. A rating of 2 is gi7en to MarAet 3e7elopment in order for Mang Inasal to e6pand more their areas to the different parts of the 8hilippines and go International. 5eing a leader not onl1 in marAet share but also in marAeting and ad7ertising its products% the1 can also focus on impro7ing their product or add more to their menus through product de7elopment in order to Aeep its customers more satisfied.

MarAet 3e7elopment is most suitable to the accessibilit1 of the locations of the restaurant to masses. Mang Inasal could e6pand to the different pro7inces of the 8hilippines especiall1 to those areas @here there are lesser Mang Inasal restaurants.

The three strategies are not suitable intensified emplo1ee competenc1 though establishment of ne@ training facilit1 program and increased operational efficienc1 through acquisition of an enterprise resource.

80

)n *eaknesses The @eaAness of inconsistenc1 in distribution of products can be sol7ed through adding more commissaries in order for the different restaurants to ha7e a better distribution of products. A rating of 2 is gi7e to product de7elopment since inconsistenc1 of distribution @ould also mean inconsistenc1 of the products. Mang Inasal can further impro7e their ser7ices.

The @eaAnesses that there are onl1 limited products offered to consumers can be sol7ed through product de7elopment. Mang Inasal can create ne@ products and specialties that the1 @ill cater to its customers. A rating of + is gi7en to marAet penetration and ' for marAet de7elopment since the1 are not suitable to these factors.

MarAet 8enetration is most applicable in addressing the @eaAness of unable to ma6imiBe its +*;hour ser7ices. MarAet 3e7elopment recei7es a rating of 2 because Mang Inasal can create ne@ marAet in order to satisf1 its +*;hour ser7ices. 8oor restaurant en7ironment and deficienc1 in assessing and e7aluating branch and emplo1ee performances are not rated since none of the three strategies is applicable.

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'E+ !A#($RS 5eight $pportunities '. Trending barbecue fast food industr1 +. Technological ad7ancements in the field of poultr1 production (.+( (.'( (.'(

Mar4et Penetration (S AS ' + 2 (.+( (.+( (.2(

Mar4et Development (S AS 2 2 + (./( (.2( (.+(

Product Development (S AS * * * (.:( (.*( (.*(

2. ,ro@ing number of people @ho uses Internet and Mobile 8hones

*. Increasing number of potential o@ners through franchising 4. More Filipinos are mo7ing to urban area (hreats '. MarAet becomes saturated due to booming fast food industr1

(.'( (.(4 (.'4 (.(4 (.(4 (.'( (.'( '.( (.'4 (.(4 (.'4 (.'(

2 * 2 + ; ; *

(.2( (.+( (.*4 (.'( ; ; (.*(

* 2 + 2 ; ; 2

(.*( (.'4 (.2( (.'4 ; ;

' ' * * ; ; +

(.'( (.(4 (./( (.+( ; ; (.+(

+. "ompliance to sanitar1 standards

2. Filipinos are looAing for a healthier lifest1le *. #ealth related risAs of poultr1 4. #igh number of foreign companies entering the fast food marAet 7s. local brands (otal 5eight Strengths '. Aggressi7e in promoting their products +. MarAet leader in the barbecue fast food chain 2. Accessibilit1J Strategic locations catering to the masses *. Intensified emplo1ee competenc1 through establishment of a ne@ training facilit1 and program 4. Increased operational efficienc1 through acquisition of an enterprise resources 5ea4nesses '. 8oor restaurant en7ironment +. imited products offered to consumers 2. Inconsistenc1 in distribution of products *. 3eficienc1 in assessing and e7aluating branch and emplo1ee performances 4. Inable to ma6imiBe +*;hour ser7ices (otal 5eight ($(AL

(.2(

* * 2 ;

(./( (.+( (.*4 ;

2 2 * ;

(.*4 (.'4 (./( ;

+ + ' ;

(.2( (.'( (.'4 ;

(.'(

(.'( (.(4 (.'( (.'4 (.(4 '

; ' + ; *

; (.(4 (.+( ; (.+( @.1.

; + * ; 2

; (.'( (.*( ; (.'4 B.,.

; * 2 ; +

; (.+( (.2( ; (.'( 82 @.1

VIII. Recommendations a. Strategic $8Hective The strategic ob=ecti7e of to maintain its dominance of the barbecue fast food industr1 here in the 8hilippines b1 adding more and healthier products% branching out thirt1 more branches in Mindanao% increasing its ad7ertising efforts through hiring ne@ product endorsers% taAing ad7antage of ad7ertising on public mass transportation s1stems and fi6ing administrati7e deficiencies. Mang Inasal is currentl1 on top of the barbecue fastfood industr1. In +(''% Mang Inasal generated a gross profit of 8*2+% +((%(((.(( and total e6penses of 82:2% '((%(((.((. Mang Inasal @as able to achie7e a net income of 8*)% '((%(((.(( and Mang Inasal?s liabilities amount to 82.*% )*2%)2).((. #o@e7er% !dgar WIn=apW Sia% founder and "!$ Mang Inasal% Ano@s that there @ould come a time @hen Mang Inasal @ill stop e6panding. The question @ill be ho@ @ill Mang Inasal handle an ine7itable drop in sales and e6pansion. An assessment of their strength and @eaAnesses% along @ith the e6ternal opportunities and threats% has concluded that Mang Inasal should focus more on product de7elopment. Mang Inasal has been dominating the middle class. Most of their consumers are students and people from the labor force. It @ould be 7er1 important for them to continue dominating this class because here in the 8hilippines about 24D of the population is part of the labor force and are students.

8. Recommended Strategies 1. Market &evelopment 'trategies a. S2;T' 5ranch out stores in Mindanao specificall1 in urbaniBed cities

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$pening 2( more branches in Mindanao @ill be a 7er1 important business mo7e for Mang Inasal. Mang Inasal ha7e successfull1 opened branches in different Ae1 citites and pro7inces in uBon and &isa1as. #o@e7er% Mang Inasal must realiBe that branching out in Mindanao @ill be 7er1 beneficial to them especiall1 if the1 @ill be able to open up branches in the Ae1 cities and pro7inces in Mindanao.

+. Market (enetration 'trategies a. S';$' #ire ne@ product endorsers b. S';$4 Increase brand 7isibilit1 b1 taAing ad7antage of ad7ertising on mass transportation s1stems c. S';T';T4 Intensif1 social media marAeting Mang Inasal?s initiati7e to promote and ad7ertise their products is one of the best @a1s to increase their sales. Aside from this% because of the trending barbecue fastfood industr1 Mang Inasal?s promotions @ill 1ield much better and positi7e results. Instead of rel1ing on MarA 5autista alone Mang Inasal must hire more endorsers for their ptoduct. &isa1an celebrities @ill be 7er1 effecti7e to be their product endorsers. Mang Inasal also has a number of gigantic billboards around the metro. #o@e7er% Mang Inasal must also in7est in ad7ertising on mass transportation s1stems liAe MRT% RT ' and +% and 8NR. 8eople on the go @ill be able to see this as the1 ride these transportation s1stems. Social media channels liAe T@itter and FacebooA @ill pro7ide free ad7ertising.

d. S';S*;S4;$* $rganiBe a Mang Inasal Franchise Summit to attract potential franchisees

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Through this franchise summit% Mang Inasal @ill be able to discuss and e6plain the nature and procedures of a branch and acquring a franchise. This @ill help Mang Inasal attract potential franchisees.

,. (roduct &evelopment a. 9*;$* Form a department for regulating and e7aluating branches and emplo1ee performances to enhance emplo1ee competenc1 and branch longe7it1 for potential franchisees b. 9';9*;T+ Set up a sanitation compliance team to ensure that sanitar1 standards are met for each branch Mang Inasal must establish an !7aluation and Regulator1 3epartment as @ell as a Sanitation "ompliance Team. These t@o ne@l1 instituted departments @ill help maintain abo7e a7erage emplo1ee performances and a relati7el1 health1 franchise fiscal 1ear performance.

c. 9';9+;$2 "onduct research through mobile and online sur7e1s "ustomer lo1alt1 is 7er1 difficult to quantif1 or qualif1 because a lot of factors must be taAen into account. #o@e7er% conducting mobile and online sur7e1 @ill enable Mang Inasal learn ho@ consumers percei7e the1 brand and products.

d. 92;$2 5uild a smooth communication channel for faster distribution of products from the supplier to the branches Shortage of stocAs in Mang Inasal branches @ill be pre7ented if a smooth and clear

85

communication channel bet@een the distributor (commissar1) and the branch so that deli7er1 and emergenc1 replenishment of stocAs @ill be set and @ill be on time.

c. !inancial ProHection Financial $b=ecti7e The financial ob=ecti7es of Mang Inasal are to increase its net income b1 +4D and increase in return of equit1 b1 4(D consecuti7el1 through +('+% +('2% and +('*. Financial Assumptions This 1ear% as Mang Inasal faces its competitors (i.e. "hic;bo1 and 5acolod "hicAen Inasal)% Mang Inasal ma1 e6perience a slo@er gro@th than before (also considering inflation and e6change rates).

!6pected Success Rate of MarAeting 8rograms Mang Inasal has been doing quite @ell in terms of ho@ the1 sell their goods. As Mang Inasal hires more potential @orAersMemplo1ees (but not too much% as it @ill lead to Wdiseconomies of scaleW)% the1 are becoming more efficient in terms of the efficienc1 and accurac1 of its ser7ices.

MarAet "ondition The fast food industr1 has been gro@ing and (e6pectedl1) @ill still continue to gro@ in the future. 9ith this assumption% there @illMmight come a time @hen Mang Inasal @ill be WoutmatchedW b1 another fast food compan1.

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!quipment 8erformanceM3urabilit1 As technolog1 ad7ances and as Mang Inasal continues (hopefull1) to gro@% Mang Inasal @ould be able to purchase more ad7anced equipments that @ill impro7e the efficienc1 in sellingMproducing their products.

!ase of "redit "ollection Mang Inasal assumes that none of its recei7ables are impaired (as of +('')% @hich means that o7er the past 1ears% the business had no problem dealing @ith credit sales. 5ut as the number of Mang InasalTs customers is increasing% the1 @ill find it more difficult to collect its recei7ables. Ratio against competitors '. "IRR!NT RATI$ +. <II"- RATI$ 2. IN&!NT$R0 TIRN$&!R *. 3!5T RATI$ 4. TIM!S INT!R!ST !ARN!3 /. $8!RATIN, IN"$M! R!TIRN $N IN&!STM!NT .. $8!RATIN, 8R$FIT MAR,IN :. T$TA ASS!T TIRN$&!R ). FI>!3 ASS!T TIRN$&!R '(. R!TIRN $N !<IIT0 ''. R!TIRN $N ASS!T MA%: I%ASAL 3.32 -.2@ ,@.,2 -.,1 B3.1@ -.B0 -.3@ @.00 33.2@ -.02 -.@@ "#I" ;5$0 (..) (./' '2.)/ (.*' 4.'* (.'* (.'+ (.2. (..* (.'2 (.(: 5"I (.+) nMa nMa +.(4 nMa ;'.') ;(.+/ *.4. '2.+ : ;(.. ;'.') Rating G G G G G G G G G G G

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From a financial perspecti7e% Mang Inasal is doing better than its competitors. Iltimatel1% Mang Inasal has the greatest return on equit1 @ith a ratio of (..) during the 1ear +('(% compared to that of "hic;bo1 and 5arbecue "hicAen Inasal (5"I) @ith ratios (.'2 and (.. (deficienc1)% respecti7el1. (The FnMaH indicated on 5"I Inasal is because 5"I has no report on its in7entor1 and interest e6pense.) MA%: I%ASAL 6#&RRE%( A%D PREVI$&S7 '. "IRR!NT RATI$ +. <II"- RATI$ 2. IN&!NT$R0 TIRN$&!R *. 3!5T RATI$ 4. TIM!S INT!R!ST !ARN!3 /. $8!RATIN, IN"$M! R!TIRN $N IN&!STM!NT .. $8!RATIN, 8R$FIT MAR,IN :. T$TA ASS!T TIRN$&!R ). FI>!3 ASS!T TIRN$&!R '(. R!TIRN $N !<IIT0 ''. R!TIRN $N ASS!T

,-33.32 -.2@ ,@., 2 -.,1 B3.1 @ -.B0 -.3@ @.00 33.2 @ -.02 -.@@

+(() '.+* '.'( '..2 : (./+ 22.4 * (.2: (.++ '..( ..*2 (./) (.+/

Rating " " G G G G " G G G G

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ProHected !inancial Statements "ash As the firm operates% Mang Inasal is e6pected to recei7e cash inflo@s from its operations. It ma1 be in the form of collection of its Accounts Recei7ables% Sale of 8ropert1 or !quipment% Sale of In7entories% or Income itself.

Recei7ables (Net) 3uring +('+% Mang Inasal is e6pected to ha7e a significant decrease in Accounts Recei7ables. This phenomena is e7ident because there has been a decrease in most of the Financial Ratios for the 1ear +(''% 1et $perating Income Return on In7estment remains positi7e% @hich means that the firm is still maAing profit. 5ut in +('*% Mang Inasal is e6pected to lend firmsMpeople more plus interest% resulting to further increases in Accounts Recei7able.

In7entories In +('+% Mang Inasal is e6pected to not sell as much as +('' (b1 looAing at the financial ratio)E therefore% in7entories increase. 5ut in +('2% suppose there @ill be foreigners @ho @ill be residing in the countr1% gi7en the current positi7e gro@th in the 8hilippine econom1 (around 2D aggregatel1). 5ut% in +('*% Mang Inasal is e6pected to e6perience a tight competition bet@een rising number of competitors% old and ne@ (gi7en a limited population). $ther "urrent Assets

89

Mang Inasal is e6pected to ha7e an increasing number of other assets (e.g. prepaid e6penses% scrap 7alue of equipment) during its operations.

8ropert1 and !quipment Mang Inasal is e6pected to bu1 more propert1 in the succeeding 1ears because it aims to dominate the marAet. ,i7en more propert1% more equipments are needed.

3eferred Ta6 Asset 9e assume that Mang Inasal does not pa1 its ta6es in ad7ance in the succeeding 1ears.

$ther Non;"urretn Asset $ther non;current assets include organiBation cost% good@ill% franchise% trademarAs% trade names% patents% cop1rights% etc. 5ecause of the increasing number of branches% it is e6pected to ha7e an increase in other non;current asset.

Accounts 8a1able and Accrued !6penses In the succeeding 1ears% Mang Inasal is assumed to be liquid and is able to pa1 its debts. Therefore% accounts pa1able and accrued e6penses are e6pected to decrease.

"urrent 8ortion on 5orro@ings due to a Related 8art1 So far% there is a great decrease (more than half) in this account in +(() and +('(. 3uring the 1ear +(''% this account is assumed to ha7e Bero balance% and it continues to remain at Bero in the succeeding 1ears.

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Income Ta6 8a1able Suppose that in +('+% Mang Inasal @ill be able to pa1 a portion of its income ta6 pa1able. #o@e7er% in the succeeding 1ears% Mang Inasal focuses on its e6pansion% gi7en the rise of ne@ competitorsE therefore% the firm?s income ta6 liabilit1 increases.

5orro@ings; Net of "urrent 8ortion Mang Inasal% gi7en its relati7el1 high income% pa1s its borro@ings before pa1ing its Income Ta6% as the borro@ings entail Mang Inasal?s trust to the Flenders.H As a result% Mang Inasal @ould rather pa1 for its borro@ings before pa1ing for its income ta6 liabilit1.

"apital StocA The capital stocA is assumed to be constant throughout +('+% +('2 and +('*.

CURRENT RATIO QUICK RATIO INVENTORY TURNOVER DEBT RATIO TI!E" INTERE"T

2008 3.57 2.75 71.21 0.98 #$%

2009 1.24 1.1 17.38 0. 2 33.54

2010 1.19 0.93 23.29 0.28 41.83

2011 1.09 0.85 4.23 0. 1 21.89

2012 1.42 1.14 2.42 0.48 34.41

2013 1.84 1.51 2.34 0.38 36.67

2014 2.39 2.00 2.10 0.30 40.11

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EARNED O&ERATIN' INCO!E RETURN ON INVE"T!ENT O&ERATIN' &RO(IT !AR'IN TOTA) A""ET TURNOVER (I*ED A""ET TURNOVER RETURN ON EQUITY RETURN ON A""ET

0.021 0.008 1 2. 2 8.50 1.29 0.014

0.38 0.22 1.7 7.43 0. 9 0.2

0.47 0.13 3.77 11.93 0.79 0.33

0.71 0.83 0.08 0.28 0.21 0.08

0.74 0.59 0.81 2.61 0.24 0.09

0.77 0.55 0.66 2.24 0.27 0.10

0.83 0.53 0.52 1.88 0.33 0.12

ProHected ,-3, to ,-3B !inancial Ratios InterpretationE

$7erall% Mang Inasal should be doing @ell financing its a7ailable assets due to increases in $perating Income Return on In7estments. 5ut% Mang Inasal made financial sacrifices such as borro@ing mone1 (also sub=ected to more interest e6penses) and bu1ing more financial assets (e6pansion). The bu1ing .(D of Mang Inasal b1 Collibee had the greatest impact on Mang Inasal?s Financial Ratios (leading to decreases in all ratios e6cept $perating Income Return on In7estments). 5ut according to ho@ Mang Inasal is doing in the first quarter of +('+% Mang Inasal should be able to regain its financial gro@th in assets in the ne6t 4 1ears% unless affected b1 e6ternalities. In the pro=ected financial statements% Mang Inasal is e6pected to ha7e a slo@er gro@th or a decreasing gro@th as it faces ne@ competitors. 5ut% b1 comparing the financial ratios of Mang Inasal @ith "hic;bo1 and Re1es 5arbecue% Mang Inasal is still leading in the barbecue fast food industr1.

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!inancial $8Hective Mang Inasal should ha7e an increase in Return on !quit1 b1 4(D consecuti7el1 throughout the 1ears +('+% +('2% +('* to maintain competiti7eness and profitabilit1 @hile maintaining a lo@ cost le7el (around =ust a '4D increase) relati7e to its gross income.

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d. Departmental Programs !ach and e7er1 department of Mang Inasal has an important role for the implementation and effecti7eness of marAet and product de7elopment strategies.

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Strateg#'Map

3e7elopment of !6tended Share #older &alue !6panded ,ro@th of "apitaliBation Increase in Net Income Re7enue from ne@ Franchisees

I8ang;masa ang lasa% affordable paGH FTo consistentl1 pro7ide our customers a great pino1 dining e6perience.H

Intensified 'ocial Media and (ublic Mass Transportation 'ystem Marketing Increasing brand a@areness through marAeting channels liAe tele7ision ads% print ads and public mass transportation ad7ertising @ill be an in7estment for the compan1.

#uman "apital #stablishment of an evaluation and regulatory body and a sanitation compliance team "onsistent emplo1ee performance @ill not onl1 be an asset to the compan1 but it @ill be a bridge for a better customer;business relationship.

-ranch out stores in Mindanao Reinforced Franchising Reinforced Franchising specifically in urbani.ed cities 8aradigm and Mang Inasal 8aradigm and Mang Inasal Mang Inasal must realiBe that Franchise Summit Franchise Summit Mang InasalTs 533 must Mang InasalTs 533 must branching out in Mindanao @ill be 7er1 beneficial to them especiall1 if the1 realiBe the importance ofof realiBe the importance @ill be able to open up branches in the qualit1 stores. 8otential qualit1 stores. 8otential Ae1 cities and pro7inces in Mindanao.. franchisees are 7er1 price )rgani*a(ional+Ca,i(al franchisees are 7er1 price Information "apital sensiti7e. !7er1 franchise is is anan sensiti7e. !7er1 franchise /tili.ation of "omputeri.ed asset for the compan1. asset for the compan1. "ustomercentric and team; 0ccounting 'ystems1

based paradigm.

"ommunication 'olutions and a "ustomer Management 'ystem.

Mar4eting Mang InasalTs marAeting de7elopment has been de7eloping strategies and brand direction @hich @ill contribute to Mang InasalTs desire to become a leader in inno7ation% creati7it1%

95

and customers relations in the 1ears to come. The marAeting department must focus more on brand a@areness and the1 must realiBe that mouth to mouth marAeting is still the best and cost;efficient @a1 to marAet 1our brand and product. Aside from the con7entional marAeting schemes% Mang Inasal must understand the 7alue of of their asset and @orAing @ith their strengths.

Intensified 'ocial Media and (ublic Mass Transportation 'ystem Marketing Increasing brand a@areness through marAeting channels liAe tele7ision ads and print ads @ill be an in7estment for the compan1. #o@e7er% Mang Inasal must taAe full ad7antage of the popularit1 of social media and start promoting and ad7ertising through the internet. Internet marAeting is much cheaper compared to tele7ision ads and print ads. Intensified brand marAeting @ill be needed for an effecti7e marAet penetration and de7elopment strategies. Aside from this% RT ' and +% MRT% 8NR and other public transporations are potential ad7ertising hotspots fot Mang Inasal and must taAe full1 ad7antage of these hotspots. MarAeting is needed to sell the product right no@ and @here e7er.

$perations Mang InasalTs Ne@sletter reports that the $perations department started the 1ear @ith the release of the re7ised $perations manual for the fi7e basic stations namel1 Aitchen% counter% qualit1 control% dining and grill. Recentl1% $3 released the re7ised "ash "ontrol 8olicies% brought about b1 the opportunities encountered b1 the stores in handling of sales and funds. $3 is in the continuing process of reinforcing the Ano@ledge and sAills of the management team members and cre@ on the F5asics of our $perationsH focusing not onl1

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on the s1stems and procedures embodied in the re7ised $perations Manual% but on other aspects of running the business as @ell. SAills of managers in the achie7ement of sales ob=ecti7es and management of controllable e6penses are no@ being honed N@ith store management teams coming up @ith dail1 targets for sales and e6penses. #o@ sales targets are achie7ed% (good "1cle of Ser7ice% ,R" concept% etc.) as @ell as @a1s to manage e6penses% are the orders of the da1. Recentl1% $3 has also started teaching the managers ho@ to compute for the food cost% the biggest e6pense in the 8n . Ipcoming $perations acti7ities are focused on ho@ to manage food cost and food cost 7ariance troubleshooting.

#stablishment of an evaluation and regulatory body and a sanitation compliance team Mang Inasal must establish an !7aluation and Regulator1 3epartment as @ell as a Sanitation "ompliance Team. These t@o ne@l1 instituted departments @ill help maintain abo7e a7erage emplo1ee performances and a relati7el1 health1 franchise fiscal 1ear performance.

"onduct research through mobile and online surveys "ustomer lo1alt1 is 7er1 difficult to quantif1 or qualif1 because a lot of factors must be taAen into account. #o@e7er% conducting mobile and online sur7e1 @ill enable Mang Inasal learn ho@ consumers percei7e the1 brand and products.

*usiness Development According to Mang Inasal Ne@s etter% 533 or 5usiness 3e7elopment 3epartment?s

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creation on Canuar1 +(() made a big impact on Mang Inasal?s gro@ing status (number of stores built% alignment to qualit1 and impro7ement and creation of ne@ store designs). From its '(( total stores opened in fi7e 1ears (+((2;+((:)% a phenomenal achie7ement @as recorded @hen it opened '(( stores in =ust a 1ear (+(()) ; a marA on histor1 not onl1 in Mang Inasal but in the @hole fast;food industr1 as @ell. As 533 is gearing up to@ards its 2((th store in $ctober of this 1ear (@ith more than 4( stores alread1 on process and lined up to open first quarter of ne6t 1ear)% gro@th and success @ill be ine7itable for Mang Inasal.

Reinforced ranchising (aradigm and )rgani.e Mang Inasal ranchise 'ummit Mang InasalTs 533 must realiBe the importance of qualit1 stores. 8otential franchisees are 7er1 price sensiti7e. 533 must be able to e6plain tranparentl1 e7er1 e6pense franchisees are pa1ing for their store. 533 must also pro7e that e7er1 peso spent for o@ning a Mang Inasal franchise is @orth it. In a franchising business% e7er1 franchise is an asset for the compan1. Through this franchise summit% Mang Inasal @ill be able to discuss and e6plain the nature and procedures of a branch and acquring a franchise. This @ill help Mang Inasal attract potential franchisees.

-ranch out stores in Mindanao specifically in urbani.ed cities $pening 2( more branches in Mindanao @ill be a 7er1 important business mo7e for Mang Inasal. Mang Inasal ha7e successfull1 opened branches in different Ae1 citites and pro7inces in uBon and &isa1as. #o@e7er% Mang Inasal must realiBe that branching out in Mindanao @ill be 7er1 beneficial to them especiall1 if the1 @ill be able to open up branches in the Ae1 cities and pro7inces in Mindanao.

98

!inance and #ontrollership The Finance and "ontrollership 3epartment is responsible for gathering financial related reports from 7arious segments of the "ompan1 and prepares consolidated Financial Statements in accordance @ith applicable 8hilippine Financial Reporting Standards. This is in compliance@ith the disclosure requirements of the Securities and !6change "ommission. The head of the department sees to it that @ell;de7eloped accounting s1stems and internal controls are operational and in place. This is because periodic and timel1 accounting reports to the board are a ma=or tool for decision maAing.

/tili.ation of "omputeri.ed 0ccounting 'ystems1 "ommunication 'olutions and a "ustomer Management 'ystem. Mang Inasal has alread1 in7ested mone1 for the acquisition of an !nterprise Resource 8lanning soft@are (!R8) of $racle thru its 8hilippine affiliate% Acti7e 5usiness Solutions% Mang Inasal is poised for business dominance in the fastfood industr1. "omputeriBed Accounting S1stem ("AS) refers to the integration of different component s1stems to produce computeriBed booAs of accounts and computer;generated accounting records and documents. "AS @ill be 7er1 useful for Mang Inasal because it is an asset for the compan1 and its franchises. "MS and "S are 7er1 important for a smooth and hassle;free operations

(raining According to Mang InasalTs Ne@sletter% impro7ements in Mang Inasal?s ser7ices are

99

e6pected as staff and cre@ get trained and certified in the ne@ training center that is no@ operational at the former commissar1 in Tramo% Metro Manila. The reconstruction of the commissar1 into a training center started in March +('( and includes a mocA;up of a t1pical Mang Inasal store. 8resident Ferdinand Sia said the training center is part of the compan1?s thrust in impro7ing operations% ser7ices and food qualit1. F!6isting stores @ill be required to ha7e their store emplo1ees% cashiers% dealers and dining cre@ trained and certified. This is a certification program for all @ho @orA @ith Mang Inasal%H said the 8resident. The certification program for emplo1ees @ill soon become a requirement prior to the opening of an1 ne@ Mang Inasal store.

"ustomercentric Training 'eries Mang Inasal must maAe it a point to train their emplo1ees in such a @a1 that customers @ill appreciate the ser7ice being gi7en to them. "onsistenc1 must be instilled to each and e7er1 emplo1ee. "onsistent emplo1ee performance @illl not onl1 be an asset to the compan1 but it @ill be a bridge for a better customer;business relationship.

IF.

Evaluation and Success Indicators a. *alance Scorecard ,$A S;3AS#5$AR3

100

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101

8. #ontingency Planning Do;nside Potential Events 'ey #oncerns Mass 8roduction of chicAen and other meats b1 in=ecting numerous antibiotics and stimulants

Action Plan !nhance the Research and 3e7elopment team. #ire a part;time health inspector (To be a@are and updated of current health issues)

!nhance the Research and Introduce ne@ menu items 3e7elopment team. #ire a part; time health inspector (to be a@are and updated of current health issues) Rise of 8roduction and $ther "ompensate b1 moderatel1 increase the "osts marA;up of goods sold. &pside Potential Events 'ey #oncerns Increasing 8rices of and

Action Plan $ffer eases

,ro@th in the 8hilippine !conom1

In7ite potential in7estors

102

F. '. +.

Re erences Fred% 3a7id. Strategic Management. .th edition. +((). Securities and !6chang "ommission Audited Financial Statements for Mang Inasal% "hic;5o1 and 5acolod "hicAen Inasal

2. *. 4. /. 7%

Tan. Andrea. Mang Inasal Franchisee. 8ersonal "ommunication. Canuar1 +('+. httpJMM@@@.manginasal.com httpJMM@@@.scribd.comMdocM/*4/:+:/MMAN,;INASA httpJMM@@@.manginasal.comMimagesMMISNe@s etter3esignS+('(a.pdf httpJMM@@@.philstar.comMArticle.asp6P articleIdR./*.*2OpublicationSub"ategor1IdR'(:

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FI.

Appendix a. !inancial Statements Appendi6 'JMang Inasal Income Statement Appendi6 + Mang Inasal 5alance Sheets Appendi6 2J "ompetitors Income Statements Appendi6 *J "ompetitors 5alance Sheets Appendi6 4J Mang Inasal Financial Ratios Appendi6 /J "ompetitors Financial Ratios Appendi6 '

Appendi6 +

106

Appendi6 2

Appendi6

107

108

Appendi6 4

Appendi6 /

109