qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopasdfg Salesmanship hjklzxcvbnmqwertyuiopasdfghjklz Final Examination xcvbnmqwertyuiopasdfghjklzxcv bnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklz

xcvbnmqwertyuiopasdfghjklzxcv bnmqwertyuiopasdfghjklzxcvbnm qwertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmrtyuiopa sdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklz xcvbnmqwertyuiopasdfghjklzxcv

10/31/2012

Jinky Jane Hally

Table of Contents
Title Page

Maslow's hierarchy of needs.1 Hezbergs Motivation-Hygiene Theory.2 Universal Robina Corporation...9 History of the company.10 Executive personnel13 Personnel and labor relations17 Plants and branches19 Organization31 Distribution methods..33 Research and Investigations..35 Competitive information37

1. Discuss and differentiate the two theories of motivation, Maslows Hierarchy Theory and Hezbergs Theory.

Maslow's Hierarchy of Needs Maslow's hierarchy of needs is often portrayed in the shape of a pyramid, with the largest and most fundamental levels of needs at the bottom, and the need for self-actualization at the top. While the pyramid has become the de facto way to represent the hierarchy, Maslow himself never used a pyramid to describe these levels in any of his writings on the subject.

The most fundamental and basic four layers of the pyramid contain what Maslow called "deficiency needs" or "d-needs": esteem, friendship and love, security, and physical needs. With the exception of the most fundamental (physiological) needs, if these "deficiency needs" are not met, the body gives no physical indication but the individual feels anxious and tense. Maslow's theory suggests that the most basic level of needs must be met before the individual will strongly desire (or focus motivation upon) the secondary or higher level needs. The human mind and brain are complex and have parallel processes running at the same time, so many different motivations from different levels of Maslow's pyramid usually occur at the same time. Maslow was clear about speaking of these levels and their satisfaction in terms such as "relative" and "general" and "primarily", and says that the human organism is "dominated" by a certain need, rather than saying that the individual is "only" focused on a certain need at any given time. So Maslow acknowledges that many different levels of motivation are likely to be going on in a human all at once. His focus in discussing the hierarchy was to identify the basic types of motivations, and the order that they generally progress as lower needs are reasonably well met.

Hezbergs Motivation-Hygiene Theory The Two-factor theory (also known as Herzberg's motivationhygiene theory and Dual-Factor Theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. Frederick Herzberg, a psychologist, who theorized that job satisfaction and job dissatisfaction act independently of each other, developed it.. Two-factor theory fundamentals: Attitudes and their connection with industrial mental health are related to Maslow's theory of motivation. His findings have had a considerable theoretical, as well as a practical, influence on attitudes toward administration. According to Herzberg, individuals are not content with the satisfaction of lower-order needs at work, for example, those associated with minimum salary levels or safe and pleasant working conditions. Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. So far, this appears to parallel Maslow's theory of a need hierarchy. However, Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives lead to worker satisfaction at work, while another and separate set of job characteristics lead to dissatisfaction at work. Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena. This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to decrease in unpleasurable dissatisfaction.

The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews with a large number of engineers and accountants in the Pittsburgh area. From analyzing these interviews, he found that job characteristics related to what an individual does that is, to the nature of the work he performs apparently have the capacity to gratify such needs as achievement, competency, status, personal worth, and self-realization, thus making him happy and satisfied. However, the absence of such gratifying job characteristics does not appear to lead to unhappiness and dissatisfaction. Instead, dissatisfaction results from unfavorable assessments of such job-related factors as company policies, supervision, technical problems, salary, interpersonal relations on the job, and working conditions. Thus, if management wishes to increase satisfaction on the job, it should be concerned with the nature of the work itself the opportunities it presents for gaining status, assuming responsibility, and for achieving self-realization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on the job environment policies, procedures, supervision, and working conditions. If management is equally concerned with (as is usually the case), then managers must give attention to both sets of job factors. The theory was based around interviews with 203 American accountants and engineers in Pittsburgh, chosen because of their professions' growing importance in the business world. The subjects were asked to relate times when they felt exceptionally good or bad about their present job or any previous job, and to provide reasons, and a description of the sequence of events giving rise to that positive or negative feeling. Here is the description of this interview analysis:

Briefly, we asked our respondents to describe periods in their lives when they were exceedingly happy and unhappy with their jobs. Each respondent gave as many "sequences of events" as he could that met certain criteriaincluding a marked change in feeling, a beginning and an end, and contained some substantive description other than feelings and interpretations The proposed hypothesis appears verified. The factors on the right that led to satisfaction (achievement, intrinsic interest in the work, responsibility, and advancement) are mostly unipolar; that is, they contribute very little to job dissatisfaction. Conversely, the dissatisfiers (company policy and administrative practices, supervision, interpersonal relationships, working conditions, and salary) contribute very little to job satisfaction. Two-factor theory distinguishes between:

Motivators (e.g. challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth, and

Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions) that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.

Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed to motivate an employee to higher performance. Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related action because you have to then that is classed as movement, but if you perform a work related action because you want to then that is classed as motivation. Unlike Maslow, who offered little data to support his ideas, Herzberg and others have presented considerable empirical evidence to confirm the motivation-hygiene theory, although their work has been criticized on methodological grounds.

2. As a salesman, it is important to know the specific information or should have knowledge about the company. Before your exposure to direct selling, you were required by your manager to present in the committee the specific information of such company you are connected with. a. History of the company b. Executive personnel c. Personnel and labor relations d. Plants and branches e. Organization f. Distribution methods g. Research and Investigations h. Competitive information

10

A. History of the company

Universal Robina Corporation (URC) traces its beginnings all the way back to 1954. John Gokongwei was doing very well then as a trader/importer. He had learned the trade when his father died before the war, and had worked hard through the war and postwar years to prosper. However, while he thrived, he took a long hard look at his company, and correctly predicted that trading would remain a lowmargin business. On the other hand, a successful manufacturer controlling its own production and distribution would command more profitable margins. Mr. John decided to construct a corn milling plant to produce glucose and cornstarch, Universal Corn Products (UCP), the first linchpin of the company that would become the URC we know today. For a time, business was good. However, Mr. John was still looking ahead, working with an eye towards the future. While the business was doing very well, it was producing essentially a commodity, which a customer could easily access elsewhere. To stay ahead in the game, Mr. John had to diversify by producing and marketing his own branded consumer foods, similar to the multinational companies in the country like Nestle and Procter & Gamble. In a sense, he wanted to put up the first local MNC, borne out of their best practices. Thus, in 1961, Consolidated Food Corporation was born. Their first home run product was Blend 45, the first locally manufactured coffee blend, dubbed as the Pinoy coffee. This became the largest-selling coffee brand in the market, even beating market leaders Caf Puro and Nescafe.

11

After coffee came chocolates. Nips, a panned chocolate were a staple of Filipino childhood. In 1963, Robina Farms started operations, beginning with poultry products. This was also the beginning of the vertical integration of the Gokongwei businesses, as the farms would be able to purchase feeds from UCP in the future. Later that decade, Robichem Laboratories would be put up, to cater to the veterinary needs of the farms businesses. Robina Farms expanded as it entered the hogs business in the latter part of the 70s. 1966 saw the establishment of Universal Robina Corporation, which pioneered the salty snacks industry through Chiz Curls, Chippy, and Potato Chips, under the Jack n Jill brand. Other snack products would follow over the years, as the company successfully introduced market leaders like Pretzels, Piattos, and Maxx. The coming decades saw more acquisitions and expansion. In the early 1970s, the family entered the commodities business through the formation of Continental Milling Corporation, for flour milling and production. The late 1980s brought the acquisition of three sugar mills and refineries, under URC Sugar. These two businesses provided stable cash flows, and allowed for further vertical integration in the supply chain, to help URC weather any volatility in the cyclical commodities markets. In line with this strategy, the late 1990s saw the entry of URC into the plastics business, through URC Packaging. While the businesses became more diversified, the companies were slowly integrated in order to streamline and minimize costs. In 2005, the present structure of the group was completed. All the different

12

companies are now organized under the Universal Robina Corporation umbrella, divided into 3 focused groups:

the Branded Consumer Food Group, comprised of BCFG Domestic (including packaging) and International the Agro-Industrial group, comprised of Universal Corn Products, Robina Farms, and Robichem and the Commodities group, with the Sugar and Flour divisions

13

B. Executive Personnel

Key Executives - Universal Robina Corp (URC) Name James L. Go Title Chairman, Chief Executive Officer, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee President, Chief Operating Officer, Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee Age 72

Lance Y. Gokongwei

45

John L. Gokongwei Jr.

Founder, Chairman Emeritus, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee First Vice President and Controller Executive Vice President

85

Geraldo N. Florencio Cornelio S. Mapa Jr.

59 45

14

Board Members Insiders At Universal Robina Corp (URC) Name Title (Connections) James Go Chairman, Chief Executive Officer, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee President, Chief Operating Officer, Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee Age 72

Lance Gokongwei

45

John Founder, Chairman Emeritus, Member of Audit Gokongwei Jr. Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee Patrick Go Vice President, General Manager of URC Packaging Division & CFC Flexible Packaging Division and Director

85

41

15

Audit Committee* - Universal Robina Corp (URC) Name Title (Connections) James Go Chairman, Chief Executive Officer, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee President, Chief Operating Officer, Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee Key Developments

Lance Gokongwei

John Founder, Chairman Emeritus, Gokongwei Jr. Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee Wilfrido Sanchez Independent Director, Chairman of Audit Committee and Member of Nomination Committee

Johnson Go Jr. Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee Pascual Guerzon Independent Director, Member of Audit Committee and Member of Remuneration & Compensation Committee

Compensation Committee* - Universal Robina Corp (URC)

16

Name (Connections) James Go

Board Relationships

Title

54 Relationships Chairman, Chief Executive Officer, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee 29 Relationships Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee 42 Relationships Founder, Chairman Emeritus, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee 46 Relationships President, Chief Operating Officer, Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee 9 Relationships Independent Director, Member of Audit Committee and Member of Remuneration & Compensation Committee

Johnson Go Jr.

John Gokongwei Jr.

Lance Gokongwei

Pascual Guerzon

17

C. Personnel and Labor Relations

Out of the total employees, 2,026 are managerial and administrative staff. As at the same date, approximately 13,000 contractual and agency employees are engaged in the Companys businesses. The Company does not anticipate any substantial increase in the number of its employees in fiscal 2012. For most of the companies and operating divisions, collective bargaining agreements between the relevant representatives of the employees union and the subsidiary or divisions are in effect. The collective bargaining agreements generally cover a five-year term with a right to renegotiate the economic provisions of the agreement after three years, and contain provisions for annual salary increases, health and insurance benefits, and closed-shop arrangements. The collective bargaining agreements are with 22 different unions. For fiscal 2011, 6 collective bargaining agreements were signed and concluded with the labor unions which are as follows: Meat and Canning Division Monthly Independent Union (MCD-MIU), Meat and Canning Division New Employees and Workers United Labor Organization (MCD-NEW-ULO), and Universal Corn Products Technical and Office Staff Employees Association-Association of Genuine Labor Organizations (UCP-TOSEA-AGLO), Kilusan Sa Pakikibaka sa Universal Robina Corp. (KSP-URC), Cebu Industrial Management Corporation Employees Union-Workers Solidarity Network (CIMCEU-WSN) and Terai Workers Union -Organized Labor Association in Line Industries and Agriculture (TWU-OLALIA). The Company believes that good labor relations generally exist

18

throughout the Companys subsidiaries and operating divisions. The Company has established non-contributory retirement plan covering all of the regular employees of URC. The plan provides retirement, separation, disability and death benefits to its members. The Company, however, reserves the right to change the rate and amounts of its contribution at anytime on account of business necessity or adverse economic conditions. The funds of the plan are administered and managed by the trustees. Retirement cost charged to operations, including amortization of past service cost, amounted to P94 million, =63 million and P103 million in fiscals 2011, 2010 and 2009 respectively.

19

D. Plants and Branches

Universal Robina Corp. - Offices/Branches Universal Robina Corp. Address: SilanganCanlubang Industrial Park, , Calamba City, Laguna, Philippines Telephone No: (6349) 549-0012/7418/7453/2195 Universal Robina Corp. Address: , , El Salvador, Misamis Oriental, Philippines Telephone No: (6388) 755-296 Universal Robina Corp. Address: 43F Robinsons Equitable Tower, ADB Ave. Cor. Poveda Rd, Pasig City, Metro Manila, Philippines Telephone No: (632) 633-7631 Fax No: (632) 6354135 Universal Robina Corp. Address: , 16 Santiago St., Pasig City, Metro Manila, Philippines Telephone No: (632) 671-8195 Fax No: (632) 671-3986 Universal Robina Corp. Address: 2F Brittania Bldg., 110 E. Rodriguez Jr. Ave., Pasig City, Metro Manila, Philippines Telephone No: (632) 671-2935 loc. 169, 671 8958 Fax No: (632) 671-8953 Universal Robina Corp. Address: , , San Fernando City, Pampanga, Philippines Universal Robina Corp. Address: , ML Quezon Ave., Antipolo City, Rizal, Telephone No: (632) 639-1040 Universal Robina Corp. 20

Address: , National Rd., Batangas City, Batangas, Telephone No: (6343) 300-7297 to 99, 520-6170 Universal Robina Corp. Address: , National Highway, Calamba City, Laguna, Telephone No: (6349) 834-2830

URC Packaging Division URC Packaging Division produces and sells a wide range of Bi-axially Oriented Polypropylene (BOPP) films, primarily used for packaging of various consumer products. The BOPP plant, located in Simlong, Batangas, is equipped with Bruckner technology and has a rated capacity of 33,000 metric tons per annum. This business unit holds the distinction of being the only Integrated Management System ISO certified BOPP plant in the country today with its Quality ISO 9001:2000 and Environmental ISO 14001:2004 Standards. Commodity Foods Group URCs Commodity Foods Group is engaged in flour and sugar milling and distribution, and sells its products to commercial and institutional accounts.

URC Flour Division

21

URC Flour produces and sells Hard and Soft Wheat Flour to both commercial and institutional accounts. The division also supplies the local and export flour requirements of the URC Branded Consumer Food Group and URC International respectively. Other product offerings are flour-milling by-products such as wheat germ, bran and pollard. The company also manufactures and sells spaghetti and macaroni products under the brand name EL REAL and toll manufactures for other food companies. URC Flour has a total flour milling capacity of 1,550 metric tons per day.

URC Sugar Division URC Sugar operates 4 sugar mills and 3 refineries in Luzon and Visayas, and is among the largest sugar millers/refiners in the country. URSUMCO (Negros Oriental), SONEDCO (Negros Occidental), and CARSUMCO (Cagayan Valley) provide sugar cane milling and refining services, trades raw sugar and sells refined sugar and molasses. PASSI (Iloilo) provides sugar cane milling services and trades raw sugar and molasses. URC Sugar has a total sugar milling capacity of approximately 29,000 tons of cane per day. It also has a sugar refining capacity of approximately 32,000 50-kg bags of sugar per day. Commodity Foods Group URCs Commodity Foods Group is engaged in flour and sugar milling and distribution, and sells its products to commercial and institutional accounts.

22

URC Flour Division URC Flour produces and sells Hard and Soft Wheat Flour to both commercial and institutional accounts. The division also supplies the local and export flour requirements of the URC Branded Consumer Food Group and URC International respectively. Other product offerings are flour-milling by-products such as wheat germ, bran and pollard. The company also manufactures and sells spaghetti and macaroni products under the brand name EL REAL and toll manufactures for other food companies. URC Flour has a total flour milling capacity of 1,550 metric tons per day.

URC Sugar Division URC Sugar operates 4 sugar mills and 3 refineries in Luzon and Visayas, and is among the largest sugar millers/refiners in the country. URSUMCO (Negros Oriental), SONEDCO (Negros Occidental), and CARSUMCO (Cagayan Valley) provide sugar cane milling and refining services, trades raw sugar and sells refined sugar and molasses. PASSI (Iloilo) provides sugar cane milling services and trades raw sugar and molasses. URC Sugar has a total sugar milling capacity of approximately 29,000 tons of cane per day. It also has a sugar refining capacity of approximately 32,000 50-kg bags of sugar per day.

Universal Corn Products 23

Universal Corn Products (UCP) is one of the leaders in the Philippine animal feed industry with combined milling capacities of 1,200MT per day from its plants in Manila and Cebu. Its line of nutritionally balanced and cost effective hogs, poultry, fish and game fowl feeds, marketed under the brand name Robina Starfeeds, is formulated by a top-caliber nutrition team and have gained wide acceptance among animal raisers in the country. They come in pellet, crumbled and mash form. UCP likewise, produces and sells liquid glucose and quality soya products, which are used in the production of confectionery products and animal feeds, respectively. Robichem Robichem manufactures, distributes and sells a wide range of highquality and well-known animal health products such as vaccines, water solubles, injectables, feeds supplements and disinfectants, which are both marketed commercially and used by Robina Farms because of its proven effectiveness and cost-efficiency. Robichem is the exclusive distributor of multinational companies namely, Janssen Animal Health and Malaysian Vaccines Pharmaceuticals.

Robina Farms-Hogs Robina Farms (RF) Hogs breeds and sells prime finisher hogs, piglets and breeder stocks such as its own Grandeur Boar and Grand Dame gilt.

24

RF- hog production facilities, located in Rizal, Novaliches, Bulacan and Batangas maintain 15,500 sows at any given time; and are reputed to be one of the most modern swine facilities in the country.

Robina Farms-Poultry RF also produces superior day-old broiler and layer chicks from the world-class breeds such as Hubbard, Shaver and Hyline. RF poultry production facilities are located in Cebu, Rizal and Bulacan, with a total farm capacity of 500,000 breeders. RF is a formidable player in both the Layer and Broiler industries; and is the number one day-old chick supplier in the country. Branded Consumer Foods Group - International Looking ahead to a world without borders, URC has expanded steadily outside the country. At present, URC maintains manufacturing facilities in China, Thailand, Malaysia, Vietnam and Indonesia and has a strong foothold in the countries it presently operates in. URC products, under the Jack n Jill megabrand, are widely available in most trade channels in Thailand, Malaysia, Singapore, Indonesia, Vietnam, China, and Hong Kong. The most established international operations of URC are in Thailand, Indonesia and Malaysia. Leading market share positions are attained in these countries in several niche product categories. ACES, a brand bought by URC from Acesfood Network Pte Ltd in 2005, continues to be a leader in the instant cereal beverage and oatmeal markets in China. The purchase of the brand is a strategic move for URC as it allows improved distribution in key geographic

25

markets and provides a strong, well-regarded brand that will be a platform for future growth in China. In April 2006, URC started manufacturing and selling C2 Green Tea in Vietnam, making URC Vietnam the first subsidiary outside the Philippines to manufacture and market C2. C2 is now one of the two market leaders in Vietnam and manufacturing is being expanded to meet strong market demands. In August 2007, URC Vietnam started manufacturing biscuits in order to strengthen its foothold in the fast growing snackfoods market in Vietnam.

Thailand URC Thailand, URC Internationals largest subsidiary, is a major snackfoods player in that country, manufacturing Snacks, Biscuits, Wafers, Candies, and Chocolates under the following brands: Snacks: Roller Coaster, Fun Bite Biscuits: Cream-O, Fun-O, Magic, Dewberry Wafers: Tivoli, Lausanne Candies: X.O., Dynamite, Lush, X-cite, Chocolates: Nips, Wiggles

Malaysia and Singapore In Malaysia, URC produces Snacks, Wafers, and Chocolates. These products are also carried by URCs sales office in Singapore. Snacks: Potato Chips, Roller Coaster, Jigs, Fun Bite Biscuits: Cream-O, Magic, Dewberry Wafers: Cloud 9

26

Candies: Dynamite, Cloud 9 Candies Chocolates: Nips, Cloud 9, Chooey Choco

Indonesia URC has factories in the most populous country in Southeast Asia, manufacturing Snacks, Candies, and Chocolates under the following brands: Snacks: Roller Coaster, Piattos, Sea Crunch, Peppitas, Guritoz, Chippy Wafers: Cloud 9 Wafrets Candies: Dynamite, Alus, Lush Chocolates: Chooey Choco, Cloud 9

China and Hong Kong URC has factories in China that cater to both China and HK markets. These products are marketed under the following brands: Snacks: Roller Coaster, Potato Chips, Beef Crunchies, Spuds Candies: X.O., Dynamite Beverages (China only): ACES Instant Cereal, ACES Oates, ACES Coffee, ACES Health drink, ACES Soya Chocolates (HK only): Nips, Cloud 9 Biscuits (HK only): Cream-O, Magic, Dewberry

Vietnam

27

URC Vietnam, which started operations in 2004, is the newest addition to URC International. Vietnam manufactures Biscuits, Snacks and Candies, and is the very first URC subsidiary outside the Philippines to manufacture and successfully market C2 Green Tea. Snacks: Fun Bite, Potato Chips Biscuits: Cream-O, Magic Candies: Dynamite, Lush, Xcite Beverages: C2 Branded Consumer Foods Group - Domestic Universal Robina Corporation (URC) is the leading branded convenience food and beverage company in the Philippines. Touted as the countrys first Philippine multinational as it has the widest geographical footprint among local food manufacturers, URC has blazed the trail for the branded foods industry. The company has shaped the competitive landscape of local consumer brands through its innovative products, wide distribution, and high-impact marketing. URC is best known for manufacturing and distributing high-performing products such as Chippy, Nova and other snack foods under the Jack n Jill mega brand, Nissin and Payless instant noodles, as well as Hunts tomato-based products. URC is also a trendsetter in the beverage industry with its coffee and ready-to-drink products. It grew the local non-carbonated beverage market with the successful launch and continuing promotion of C2 Cool & Clean Green Tea. Building on the global trend towards health and wellness, C2 spearheaded the expansion of a new and high-growth segment in the Philippine beverage industry: the green tea segment. URC built on that success with forays into other areas of the non-

28

carbonated beverage market, such as juices, energy drinks, and ready-to-drink coffee, among others.

Snack foods Beverage Grocery Others

Snackfoods With a long heritage that began in the 1960s, URCs snack foods brands are well-loved by generations of Filipinos. Many have grown up with the comforting crunch of Chippy and Chiz Curls, and todays young adults have fond memories of eating along to the well-loved Nips jingle of days passed. From heritage brands such as these, to newer products such as Magic, Nova, and Dewberry, URC has developed the largest and most diverse portfolio of snackfood products in the Philippines to fill everyones snacking needs. And now, the products you grew up with and continue to snack on are all under the Jack n Jill megabrand, a name synonymous with consistent quality, great value, and fun.

Savory Snacks URC is the market leader in savory snacks, and has welcomed Granny Goose snacks into its fold. Corn Chips: Chippy, Mr. Chips, Taquitos, Tostillas Natural Potato:Potato Chips, V-Cut Fabricated Potato: Piattos, Roller Coaster Extruded / Pelletized: Chiz Curls Multi-Grain: Nova

29

Mixed Snacks: Pic-A Granny Goose: Tortillos, Kornets

Biscuits URC is one of the leading biscuit producers in the country. Cookies: Presto, Cream-O, Dewberry Crackers: Magic Flakes, Magic Creams, Magic Flavors Wafers: Hello! Coated, Hello! Pipers, Hello! Glazed, Wafrets Sticks Pretzels: Choco Pretzels, Knots

Cakes URC is an innovative player in the cakes category. Quake Bars Quake Overload

Candies URC is the market leader in candies. Hard Boiled: Maxx, Dynamite Deposited: X.O. Gummies / Jellies: Jojo Gummies Lollipops: Star Pops Marshmallows: Wiggles Soft: Lush

30

Chocolates URC is the market leader in chocolates. Enrobed: Cloud 9, Big Bang, Chooey, Monster Munch Panned: Nips

E. Organization

31

Universal Robina Corporation has three main business lines:

The Branded Consumer Foods Group is the largest business and the key driver of growth and profitability. It is composed of the Philippine, international and packaging businesses. In the Philippine BCFG, our main divisions are Snack Foods, Beverages, Grocery (which include the joint ventures Nissin-URC and Hunts URC), Exports, and Packaging. Our international investments are in Thailand, Indonesia, Malaysia/Singapore, China/HK, and Vietnam. The Agro-Industrial Group is composed of hog and poultry farms, branded feeds, and animal health products.

32

The Commodity Foods Group has both flour and sugar.

The latter two groups provide URC with consistent cashflows and, in the case of commodities, consistent supply of raw materials for the Branded Consumer Foods Group.

E. Distribution methods

33

The Company has developed an effective nationwide distribution chain and sales network that it believes provide its competitive advantage. The Company sells its branded food products primarily to supermarkets, as well as directly to top wholesalers, large convenience stores, large scale trading companies and regional distributors, which in turn sell its products to other small retailers and down line markets. The Companys branded consumer food products are distributed to approximately 150,000 outlets in the Philippines and sold through its direct sales force and regional distributors. URC intends to enlarge its distribution network coverage in the Philippines by increasing the number of retail outlets that its sales force and distributors directly service. The Company generally sells the branded consumer food products from salesmen to wholesalers or supermarkets, and regional distributors to small retail outlets. 15 to 30 day credit terms are extended to wholesalers, supermarkets and regional distributors. The Company believes that its emphasis on marketing, product innovation and quality, and strong brand equity has played a key role in its success in achieving leading market shares in the different categories where it competes. In particular, URC launched Jack n Jill as a master umbrella brand in order to enhance customer recognition of its products. URC devotes significant expenditures to support advertising and branding to differentiate its products and further expand market share both in the Philippines and in its overseas markets, including funding for advertising campaigns such as television commercials and radio and print advertisements, as well as

34

promotions for new product launches by spending on average 5% of its branded consumer food divisions net sales this year.

F. Research and Investigations

35

The Company develops new products and variants of existing product lines, researches new processes and tests new equipment on a regular basis in order to maintain and improve the quality of the Companys food products. In Philippine operations alone, about P28 million was spent for research= and development activities for fiscal 2011 and approximately P40 million and P42 million for fiscals 2010 and 2009, respectively.

The Company has research and development staff for its branded consumer foods and packaging divisions of approximately 83 people located in its research and development facility in Metro Manila. The Company also has research and development staff in each of its manufacturing facilities. In addition, the Company hires experts from all over the world to assist its research and development staff. The Company conducts extensive research and development for new products, line extensions for existing products and for improved production, quality control and packaging as well as customizing products to meet the local needs and tastes in the international markets. The Companys commodity foods division also utilizes this research and development facility to improve their production and quality control. The Company also strives to capitalize on its existing joint ventures to effect technology transfers.

The Company has dedicated research and development staff for its agro-industrial business of approximately 41 persons. Its researchers are continually exploring advancements in breeding and farming technology. The Company regularly conducts market research and farm-test for all of its products.

36

The Company also has a diagnostic laboratory that enables it to perform its own serology tests and offers its laboratory services directly to other commercial farms and some of its customers as a service at a minimal cost.

G.Competitive information

37

The URC business is highly competitive and competition varies by country and product category. The Company believes that the principal competitive factors include price, taste, quality, convenience, brand recognition and awareness, advertising and marketing, availability of products and ability to get its product widely distributed. Generally, the Company faces competition from both local and multinational companies in all of its markets. In the Philippines, major competitors in the market segments in which it competes include Liwayway Manufacturing Corp., Columbia Foods International, Republic Biscuit Corporation, Suncrest Foods Inc., Del Monte Phil. Inc., Monde Nissin Corporation, Nestle Philippines Inc., San Miguel Pure Foods Company Inc. and Kraft Foods Inc. Internationally, major competitors include Procter & Gamble, Effem Foods/Mars Inc., Lotte Group, Perfetti Van Melle Group, Mayora Inda PT, Calbee Group, Apollo Food, Frito-Lay, Nestl S.A., Cadbury Schweppes plc, Groupe Danone S.A. and Kraft Foods International.

Competition in the Philippine food and beverage industry is expected to increase in the future with increased liberalization of trade by the Philippine government and the predicted accompanying growth in imports due to the World Trade Organization (WTO) and ASEAN Free Trade Area (AFTA). Under the WTO, tariff rates on food and agricultural items are being decreased and import quotas are being eliminated among member countries, including the Philippines. AFTA is a free trade area formed by 10 South East Asian countries, including the Philippines. Under the AFTA, tariffs on manufactured goods, including processed agricultural products, are being minimized or

38

eliminated over a 15-year period starting from January 1, 1993, and non-tariff barriers will be subsequently phased out. The day-old chicks market is cyclical, very competitive and principally domestic. The Company believes that the principal competitive factors are chick quality, supply dependability, price and breeder performance for broiler chicks. For layer chicks, competitive factors are egg productivity and disease resistance. The Companys principal competitors are Danway Processing Corp, RFM Corp. and Math Agro for broiler chicks and Bounty Farms, Inc., Brookdale Farms, and Heritage Vet Corp. for layer chicks. The live hog market is highly fragmented, competitive and principally domestic. The Company believes that the principal competitive factors are quality, reliability of supply, price and proximity to market. The Companys principal competitors are San Miguel Corp. (Monterey) and Foremost Farms, Inc. The main competition is from backyard raisers who supply 6265% of the total pork requirement in the country. In 2011, the hog population decreased by 6% because of disease outbreaks and farm closure(s) due to high cost of inputs (Feeds) and lower live weight prices (due to lower consumer spending). It is expected that live weight prices will relatively be higher in the 1st half of 2011 that will encourage raisers, both backyard and commercial farms to start and expand their operations with the anticipated improvement in profitability. The commercial animal feed market is highly fragmented and its products compete primarily with domestic feed producers. As of

39

September 30, 2011, there were 150 registered feed mills in the Philippines, 25% of which sell commercial feeds. URC believes the principal competitive factors are quality, brand equity, credit term and price. The Companys principal competitors are B-Meg and UNAHCO (Sarimanok & Thunderbird). A number of multinationals including Cargil Purina Phils. Inc, CJ and Sun Jun of Korea, and New Hope of China are also key players in the market. The animal health products market is highly competitive. The market is dominated by multinationals and the Company is one of only few Philippine companies in this market. The Companys principal competitors are Pfizer, Inc., UNAHCO (Univet)., and Merial Limited, a company jointly owned by Merk and Co., Inc. and Aventis. S.A. The principal competitive factors are brand equity, price, product effectiveness, and credit terms.

40