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SUCCESS OF MANG INASAL: EXPLORATORY CASE

A Thesis
Presented to the Faculty of Graduate School
DELA SALLE ARANETA UNIVERSITY
Victoneta Avenue, Malabon City

In Partial Fulfillment
of the Requirements for the Degree
Master in Business Administration
By
Ming Yang
October 2014

CHAPTER 1
THE PROBLEM AND REVIEW OF RELATED LITERATURE

Success in the fast food industry requires


mastery of different parameters in order to
invite customers continuously. Customers
who go to a fast food business are looking
for speed, convenience and predictability
rather than a memorable dining
experience.
Furthermore, the level of service, product
quality, pricing scheme, business location,
and promotion are some marketing
strategies that would help the restaurant
grow.

History of Mang Inasal


Mang Inasal barbecue fastfood chain in the
Philippines was established on December 12,
2003 in Ilo-Ilo City by no less than its founder,
Edgar Injap Sia II. From a Hiligaynon word for

Mr. Barbecue, Mang Inasal was established as a


unique entry to the saturated grill restaurant
industry.

Its Chicken Inasal as the flagship

product is a distinctively Pinoy chicken inasal


stamp-grilling with charcoal.

For a start-up franchise fee of about


P800,000, you can have your own Mang
Inasal franchise. (Total investment is
about P3 million to P4 million). After his
first franchise offer in 2005, there are now
over 300 branches/franchisees.

Jollibee Foods Corp. (JFC), the countrys


largest fast food chain, has taken over
control of Mang Inasal, a highly successful
Visayas-based restaurant chain specializing
in grilled chicken, in a deal worth P3 billion.
In its disclosure to the Philippine Stock
Exchange on Oct. 18, JFC said it has
submitted an unsolicited offer to acquire 70
percent of Mang Inasal Philippines Inc.
(MIPI), which was unconditionally and
irrevocably accepted by its parent
company, Injap Investments Inc.

Human resources are the most important


resources in an organization, at the same
time one of the factors in the success of the

company from which depends its success


or failure.

Photo Source: www.sleekthecity.com

To work with people effectively,


it needs to understand human

behavior, and manage about


the

various

practices

systems

available

to

and

help

build a skilled and motivated

workforce.

STATEMENT OF THE PROBLEM


This study aims to determine to explore the success of Mang Inasal
company.
Specifically, this study seeks to answer the following questions:
1.
What is the profile of the company
2.
How does the company perform the following functions towards
business success?
2.1 Human Resource
2.2 Marketing
2.3 Operation
3.
How does the company achieve its success with regard to the
following strategies?

Corporate Capabilities
Core Competencies
Creating Customer Value
Opportunity-Driven Business
Continuous Innovation

BUSINESS FLOW OF MANG INASAL


STRATEGIES
1. Corporate
Capabilities

HR

OPERATIONS 2. Core Competences

MARKETING

3. Creating Customer
Value
4. Opportunity-driven
Business
5. Continuous
Innovation
FEEDBACK

SUCCESS

OF
MANG INASAL

Marketing
Marketing studies consumer trends by surveying
and
researching
consumer
demands,
purchasing methods, product sales, and the
existence and development of technology
across the relevant market.

SIGNIFICANCE OF THE STUDY


The significance of the results of the study aims to

evaluate the effectiveness of policies and practices


of human resources department of Mang Inasal

company as how it links its programs to


organizational needs and the ways it contributes in

development of employees career.

Management
This study will be useful to top management
and HRM managers and practitioners to design
their HRM practices within a strategic condition
at the organizational level in order to improve
firm performance that they may able to know
the
feedbacks
and
suggestions
from
the
respondents on the study
and able to review and
improve methods and
process of evaluating the
current effectiveness of
HR policies and practices.

Employees
To help identify the importance of their
roles in an organization and to promote
communications between employees
and
management
through
proper
communications of the expectations of
the policies, programs, procedures and
practices to the company.

Researcher
To examine the effectiveness of the
policies and practices of human
resource department of Mang Inasal
company and the result of the study
would further help in strengthening the
effectiveness of its HR management
department in achieving its vision and
mission

SCOPE AND DELIMITATION


OF THE STUDY
The main thrust of this research will cover
the implementation of the policies and

practices in the strengthening of human


resources

department

of

Mang

Company in National Capital Region.

Inasal

Chapter 2 Methods
Research Locale
Mang Inasal is a fast food chain which originated in IloIlo in 2003 at the Fuentes Street, Ilo-Ilo City.
The business was forced to be operated after the
owner discovered what fast food industry has been
missing in the market.
This led to open a fast food store that provides a flavor
to Filipino customers with a touch of Philippines
tradition.

Founding Philosophy
To provide efficient services to customers, Mang Inasal in Bacolod has
super friendly, accommodating and hardworking staff who will attend to
their needs.
In addition, the ambience in this Bacolod restaurant is very refreshing,
rejuvenating, and cozy. This dining place also features a clean and well
ventilated dining area for the comfort and convenience of everyone.
Moreover, tourists in the city will not have problems situating the
restaurant because it is located in one of the most popular areas in
Bacolod.

Slogan
Mang Inasal is a truly Filipino-style fast food chain. Our concept,
ambiance and even the way our food is served on banana leaves is
authentically Filipino.

Mission and Vision


The concept of Mang Inasal Philippines
was to spread the business in various locations
to promote the goodness of Filipino dishes.
Aside from the financial capability to own a
Mang Inasal franchise, commitment and
dedication to serve the Filipino customers with
the best are the must-have attitudes an
entrepreneur must have to join the bandwagon
of the success of Mang Inasal Philippines
franchise. For 800,000PHP, an entrepreneur can
use the name of Mang Inasal

Respondents of the Study


The study was conducted to explore the
success of Mang Inasal business whose
information will be taken from selected
personnel who served in the company for
more than three years. To get the data, the
information will be taken from the 12 personnel
who hold important functions in the three
major departments namely; human resource,
marketing and operation.

Research Design
The study employs the qualitative research
strategy for data gathering using the

descriptive method of investigation through


in-depth interviews and structured
questionnaires.

Research Questions
The questionnaires were prepared by the researcher to
guide during the interviews so that the relevant information would
be gathered to explore the success of Mang Inasal.
The questionnaires were distributed to the respondents whose
response would be taken as the primary data of the study.
Strategies Employed to Ensure Quality Data
According to Henning (2005) argue with regard to validity in
qualitative research that the concord of methodology and
methods will assist in creating coherence, but with that also
comes a cohesive theoretical structure and substantial
theoretical knowledge.
Lewis and Ritchie (2003) will be applied, to wit; the interviewer
will be facilitated by an interview as the instrument, capturing of
phenomena, identification or labeling and the interpretation
and the display of the findings.

Triangulation
Creswell (2003) - The concept of triangulation was
based on the assumption that any bias inherent in
particular data sources, investigator, and method
would be naturalized when used in conjunction with
the other data sources, investigators, and methods
Bogdan & Biklen (2007) In depth interviewing,
member-check or focus group discussion, and
documents validation are the most frequently used
research strategies in qualitative research.
Kothari(2008) stated that bias might occur in the
research design or at data collection; analysis and
interpretation and therefore, researcher must carry
out consistent set of actions to put down the
biasness.

Interviewing
Gall, Gall & Borg (2010)
According to them the collection of data
through direct interaction between the
researcher and the individuals being
studied
Bogdan & Biklen (2007)
The interviewer collects descriptive data in
the participants own words which provides
a rich context for the problem being
studied.

Member-check / Participant-check
The member check has been heralded as an
important component of validation in qualitative research.
Traditionally, the member check has been used in
order to assess the accuracy with which a researcher has
represented a participants subjectivity.
Gall (2009) - The member check process ensures that the
data collected accurately describes the participants
views, behaviors, and experiences This strategy for
assessing the validity of the data involves ensuring that
the participants experiences are correctly conveyed.
DePoy & Gitlin (1998) - The researcher provides the
participant with a transcript of the interview allows for
the participant to review and confirm the information is
accurate. The member-check process ensures that the
researcher has correctly captured the data and any
factual errors can be amended.

Document Analysis
Corbin & Strauss, 2008 - Like other
analytical methods in qualitative
research, document analysis requires
that data be examined and
interpreted in order to elicit meaning,
gain understanding, and develop
empirical knowledge.

Research Method
Research methods can be defined as the tools, instruments, techniques,
procedures or approaches adopted by the researcher to collect data for
interpretation, explanation and prediction.
Semi-Structured Interview
The interview is probably the most widely employed method in qualitative
research. It has different forms, including a focus group interview, a
structured and semi-structured interview, and an unstructured interview.
Semi-Structured Interview Analysis
The interview data that were gathered from the employees of Mang Inasal
was transcribed before being identified and transformed into categories.
Data Collection
The study would aim to assess and identify the factors that determines the
success of Mang Inasal, the researcher would need to have a selected
number of personnel to be included in the study. However, interview is the
relevant method but it might turn time consuming for the researcher if the
sample size is large.
Since the study is based on longitudinal time frame, it rules out the
observation and scheduling technique that aim to assess the changes in the
research variables. Thus, questionnaire as it is feasible with gathering the
large amount of response from the participants, is chosen for the study.

Data Analysis
Qualitative studies often use an analytic framework
a network of linked concepts and classificationsto
understand an underlying process; that is, a sequence
of events or constructs and how they relate.
In qualitative researchers develop concepts, insights,
and understanding from the patterns in the data
rather than collecting data to assess a preconceived
model, hypotheses, or theories
The most common sources of qualitative data include
interviews, observations, and documents.

Validity of Results
The validity is one of the critical factors in the overall
research process in order to have access to the valid
data and information.
The present study is based on the exploration of
the success of Mang Inasal. It aims to gather the data
from the real environment.
This study ensured that all interviews were
transcribed in order to provide participants with
opportunity to check for accuracy, and their
feedback was requested so that the degree of
consistency was maintained.

Recording of Data
Henning (2005) The interviews were transcribed in verbatim after
permission was obtained from the participants. Then, the researcher
analyzed the resulting text. He also took notes during the interviews and
reflected on them during the data processing. and data analysis phases.
Researcher Biases
Qualitative research is a type of scientific investigation that aims to
provide answers to a question without bias. It uses predetermined
procedures such as interviewing participants to collect information and
produce findings. Biases occur naturally in the design of your research,
but you can minimize their impact by recognizing and dealing with them.
Researcher Credibility
Qualitative research in business, management, marketing, health,
education and the social sciences explores organizations, issues and
phenomena by collecting and analyzing extensive unstructured
information gathered through interviews, participant observation,
document analysis and other methods.

ETHICAL CONSIDERATIONS
Ethical considerations are critical aspects of all research.
Procedures
The study is intended to explore the success of Mang
Inasal Company. To achieve the good research, the
researcher used the 12 personnel who have exact
knowledge when the company started up to its success.

RESULTS AND DISCUSSIONS


The chapter presents the data collected
through the questionnaire and interviews
for the other important data that were
not written in the questionnaire. The
data are analyzed and interpreted
based on previous studies and literature
review.

Company Profile : Mang Inasal

Mr. Edgar Sia II who was just 26 years old, opened "Mang Inasal " in
2003 at the Fuentes Street, Iloilo City.

Company Growth
For Mang Inasal's phenomenal growthabout 100 new stores a year.
Since 2003, our company grew daily. In 2008, we discovered that the
customers accepted our products. In 2010, Mang Inasal registered 2.6
billion pesos revenue.

Revenue
That Jollibee will be paying P 3 billion in Mang Inasal has made Sia
a very successful businessman. The buying price of Jollibee, which
courted Sia for the transaction, values the entire Mang Inasal
business at P4.3 billion. Not a bad deal for a business that has an
estimated annual total revenues of P2.6 billion and system wide
sales of P3.8 billion.

Since Sias holding company, Injap Investments, will continue to


hold on to 30% of Mang Inasal, the Jollibee deal actually valued
Sias remaining stake at a staggering P1.3 billion. By the way, Sia
already received a P200 million down payment.

Marketing Strategies Used


1) Operating on the principle of division of labor, to wit;
corporate headquarters, unified management, unified
purchase, unified accounting and firm, unified
inventory, uniform pricing, uniform service standards.
2) 3S principle of management, namely; Specialization,
Standardization, Simplification.
3) Focus on the distribution logistics like the Commodity
distribution center by the transit center (TC) system,
Commodity Development Center (DC) systems, and
processing and distribution (PC) system structure.
4) There is observance of information on the network.
Chain system can save a lot of advertising costs and
distribution costs, and create economies of scale so
large-scale and rapid development.

HR Department
The head office department engaged in
recruitment, and deployment of personnel to their
respective areas especially managerial positions.
In each store, we will arrange technical staff who
will take care of the training of the personnel and
occasionally the Supervising Commissioner will come
for evaluating the personnel capability.

This is one way of identifying the company that is


different to the others. There are responsibilities that the
training office will do for the personnel are as follows:
1. The company's development strategy closely
develops the training programs for the current
year;
2. Responsible for the company to carry out the
various training and management of internal
affairs. The company will complete the training
tasks assigned;
3. Responsible for organizing the work of the entire
training, education and communication between
the school and ensure the successful completion of
the training;
4. The establishment and improvement of training
systems and systems company, set up training
database;

5. The internal team responsible lecturer


(regional
Manager, etc.) of the building, training,
evaluation;
6. Management training team, monitoring the progress of
the implementation of the training, the timely
processing of related issues;
7. Student organizations to collect views and promote
improved training and adjustment work;
8. Training and curriculum development and preparation
of teaching materials;
9. The training will be based on the actual needs of the
design and implementation of other training courses for
the customers.
10. Since that the stores, we cannot carry out training for
every employee, then let each chain is assigned two
staff training, after training, by their conduct training for
other employees. This point may be that we and other
companies are not the same.

Marketing Department
This strategy was successful through the
team up of the Marketing department and
the Research & Development Office.
They engaged on the on-site research
experimental studies, combined with the
local situation, to ensure that our stores will
have a good business.
This marketing development creates a
good customer relation and later discovers
the Filipino products that hits the tastes of the
customers.

We recognized cause and effect of


employees inside Mang Inasal through
the following topics:

Corporate Capabilities
Core Competencies
Creating Customer Value
Opportunity Driven Business
Continuous Innovation

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS


SUMMARY OF THE FINDINGS
Mang Inasal started in 2003 selling grilled chicken
wrapped in banana leaves and rice. The typical Filipino flavor,
and a plain paper lanterns decorated small restaurants with
wooden tables, a hand - made and painted orange, green, and
yellow walls that expresses its Philippine tradition.
First, operating on the principle of division of labor, to wit;
corporate headquarters, unified management, unified
purchase, unified accounting and firm, unified inventory,
uniform pricing, uniform service standards.
Second,3S principle of management, namely; specialization,
standardization, simplification.
Third, focus on the distribution logistics like the Commodity
distribution center by the transit center (TC) system,
Commodity Development Center (DC) systems, and
processing and distribution (PC) system structure.
Fourth, there is observance of information on the network.
Chain system can save a lot of advertising costs and
distribution costs, and create economies of scale so largescale and rapid development. Since we do the food business,
our strategy varies on some special changes like on raw
materials, transportation, processing, and strict specifications
of the product and its tastes.

Strategies employed by the Mang Inasal


The success of Mang Inasal lies on the competent performance of
the three departments human resource, marketing, and operation
as the strategies.

Mang Inasal performed its operation very well. The strategies were as
follows:
1.

2.
3.
4.
5.

It focused on the qualifications of the personnel who were expert


on their respective duties hence, they could be effective and
efficient to their jobs.
It listened on the needs of the employer so that they could respond
effectively and efficiently of the customers needs.
It responds the customer needs not only satisfaction but delightful
products and services with Filipino taste and style, freebies,
unlimited rice and soup.
It grabbed opportunity at the earliest possible time. Taking
advantages of a situation is the Mang Inasals another strategy
using the uniqueness of its gawang pinoy product and service.
It enhanced the product and services through innovations such as
attractive promotions, & enticing scheme like unlimited rice and
soup.

CONCLUSIONS
Mang Inasal had introduced the marketing strategy
on the standardization of the products and services, and
streamlined the other policies to produce an efficient and
effective output. The collaboration of the two departments
namely; the marketing and the research and development
office ensures the stores to have good business operation.
This strategy created a good customer relation and invited
customers to dine in and experience the Filipino taste of the
products and style of service. In addition, the Filipino
tradition introduced in the restaurants like the provincial
ambience expresses the Filipino atmosphere.
This showed how Filipino customers preserved Filipino
culture in food and service preference that rose revenue to
Mang Inasal. It further added, the enhancing on
promotional scheme like offering unlimited rice and soup
complimented the home-liked tradition. This evidenced that
Mang Inasal hit the diners desire on food and at the same
experience the Filipino tradition.

RECOMMENDATIONS
Based on the conclusions given, the
recommendations are forwarded:
1. The company should build and/or rent
business place that is spacious to
accommodate an increasing number of
customer.
2. Increase the benefit of the personnel that
would motivate them to work hard for the
company.
3. Expands the space for parking in favor of the
increasing number of customers in the
location outside the malls.