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NEW ERA UNIVERSITY I. Industry Analysis A. Economic Forces Consumers tend to spend more as the economy look more favorable. Some of them do not only base their decisions on the economic outlook of the country; they also make decisions based on what the condition of the foreign markets. Companies must always consider the economic standing of their target market. Consumers income, savings, debt and credit availability are all deciding factors in whether they will be able to buy or not.
The economy of the Philippines is the 4th largest economy in South East Asia and the 35th largest economy in the world by purchasing power parity according to the World Bank in 2009. For the first quarter of 2010, the economy grew by 7.3% which was higher than the 3.6% forecast. At the end of the second quarter of 2010, GDP growth again exceeded expectations by coming in at 7.9%. According to IMF, the Philippines will be the second-fastest growing economy among the ASEAN 5 in 2010 with a forecasted growth rate of 7% after Thailand's 7.5%. The good outlook of the economy for this year is a good sign for Andoks overall sales, for this may signify higher purchasing capabilities for consumers. Income Distribution The different GDP per sector includes agriculture, industry and service. Service sector shares the biggest part having 55.1%, followed by the industry with 29.9% and then the agricultural division contributing 14.9%. Summing this up, the total GDP economic growth totaled 6.5%. Litson Manok Market is under of the Food Industry. Food industry plays a big part in our society.
DAILY MINIMUM WAGE RATES National Capital Region (NCR) a/ Per Wage Order No. NCR-15 b/ Effective 01 July 2010 Sector/Indu Minimum Basic stry Wage under Wage Order No. NCR 14 Wage Increase Under W.O. No. NCR 15 Non-Agriculture Agriculture (Plantation and Non Plantation) Retail/Service Establishments employing 15 workers or less Manufacturing Establishments regularly employing less than 10 workers P 345.00 P22.00 P 367.00 P 345.00 P22.00 P 367.00 P 382.00 P 345.00 P22.00 P22.00 P 404.00 P 367.00 New Minimum Wage Rates
Debt Availability The current debt of the Philippines in World Bank is $53,140,000,000 which is lower from the previous years. Most Filipinos are still in debt; debts on banks, companies, etc; and even on loan sharks and individuals. Purchasing decisions of consumers are affected for a portion amount of money must be allocated for paying debts.
contrast, Filipinos are thought by many using credit for daily needs. However, evidences suggest that poor and low-income Filipinos do save, or at least have the capacity to do so. Informal savings mechanisms, like ROSCAs (called paluwagan or dajong) or stashing money into alcancia bamboo poles or piggy bank at home, seem to be widespread throughout the country. Self-help or solidarity groups that conduct savings and credit activities are also common. Market research by financial institutions provides further evidence that low-income clients do save. A survey by a microenterprise bank in the outskirts of Manila, for example, revealed that 75 percent of respondents had savings in commercial
occurred in the context of saving rather than taking loans. In contrast, a recent survey in smaller cities of the Philippines finds that nearly two-thirds of people in urban areas keep their savings at home. Only 9.7 percent save in rural banks, 2.2 percent in commercial/thrift banks, and 9.4 percent in cooperatives. The bottom line of all these facts, Filipinos do save. This implies good purchase capabilities for Filipinos.
preferences, food restrictions, and the likes. Urbnanization 65% of Philippines total population is considered urban population with 3% annual rate of change as estimated for the years 2005 to 2010. This signifies a good opportunity for the expansion of litson manok market. Income opportunities are concentrated in urban areas, thus high number of sales can be expected here. Consumers are capable of buying such products with their good income. These make urban areas suitable for more litson manok outlets. Religions Roman Catholics are 80.9%, Muslims 5%, Evangelical 2.8%, Iglesia ni Kristo 2.3%, Aglipayan 2%, other Christian 4.5%, other 1.8%, unspecified 0.6%, none 0.1%. Differences in religion affect the preference on some Andoks products, but not its main menus like litson manok and dokito frito which are chicken meats. Filipinos as People Filipinos place great importance on faith and education, influenced by its history of Spanish colonization and American occupation. Majority of Filipinos are Roman Catholics, with the Church playing a significant role in the peoples social and cultural lives. Only Mindanao, the southern island cluster in the country, embraced Islam, which was introduced to the region by Arab traders in the past. Feasts and gatherings are very common on different groups. Food is one of the main requirements of Filipino gatherings. Adult literacy rate in the Philippines is among the highest in the world, at about 95%. Proceeding to graduate school is popular
Eating Habits & Hospitality Naturally Filipinos are hospital and generous nation and also love to eat. Food and diet is much important in their social life. The usual eating schedule of Filipinos is they use to eat three meals per day and snacks at two times between the day meals or merienda. Poor families of Philippines eat rice, fish, vegetables and other starchy diet. However at fiesta time all families love to enjoy meat. Like many other nations, Filipinos like to offer extra food to servants, hungry people and helpers. Sauces, flavors and other spices are frequently used to create good taste of food by professional cooks in Philippines. Filipinos remain strict in eating in time meals of the day. They offer the guests food and drink to entertain them. Filipinos are also very respectful to food and dont like to reject it if not like but eat little amount of food and keep aside. Filipinos love to eat, and since they're naturally hospitable and gregarious, food is the basis of their social life. Because the feeling of fulfillment after eating rice, their staple ingredient, is
NEW ERA UNIVERSITY 60% of family expenditures go to food, generally speaking, for it is a necessity for everyone. This is an opportunity for food industry.
Filipinos Getting More Health Conscious Filipinos nowadays are becoming more health conscious due to several types of diseases that can cause death at young age of significant number of Filipinos. You can see even the low class people becoming picky on what they eat and have some sessions of exercise. While the middle class or high class, as well as low class also in some cases, is going to different fitness facilities which is booming industry. Nowadays, going to gyms is becoming very trendy especially to teenagers. This phenomenon is somehow a good thing for us Filipinos to observe and takes care of our health.
Trends 1) Ordinary Day. Average number of people comes to eat or buy their food outside during breaks or meal times. 2) Weekends. Weekends are rest days for both workers and students. Family day also happens during weekends. People tend to eat or buy their food outside more often. 3) Occasions. Occasions like birthdays, anniversaries,
graduations and the likes lead consumers to eat outside. 4) Holidays. weekends. Almost the same During as what happen during season, reunions,
Christmas
celebrations, Christmas parties, and the likes happen. Purchase of foods increase for such gatherings. 13 th month bonuses, aguinaldos, and OFWs return are also there.
NEW ERA UNIVERSITY 5) Religious Events. Religious events like Ramadan and Holy Week decrease the sales of meat and other foods. People avoid eating meat and even fast during these times.
Natural Environment Significant increase on the poultry production exists because of the absence of bird flu issues, but still Philippines imports chicken from other countries because of huge demands. This implies shortage still. Rosendo So, vice president of the National Hog and Poultry Raisers Association of the Philippines, said the government should instead provide more support for stakeholders in the agricultural sector to attain food self-sufficiency. "This year alone, the government allowed the importation of 97,197,041 kilograms of chicken, which [represents] about 31 per cent increase from the 67,264,871 kilograms in 2009," Mr So said. CHICKEN PRODUCTION in Philippines According to the Philippine Bureau of Agricultural Statistics, domestic chicken production increased by 1.53 per cent in 2009 and is projected to continue to expand again this year. Demand for chicken meat is also forecast to rise this year as a result of projected improvements in the Philippine economy and a growing population. Higher inventory of layers and better egglaying efficiency were observed throughout the year.
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Consumption According to BAS, total annual demand in 2009 for broiler meat reached nearly 689,000MT, up more than three per cent from the previous year. Projected improvements in the Philippine economy as well as population growth are expected to continue to push-up consumption of chicken meat in 2010. Moreover, the continued high retail price of pork may result in some shift from pork to chicken by consumers.
Trade
The importation of chicken meat also increased by 47 per cent in 2009, the majority of which came from the United States (41 per cent), Canada (38 per cent) and Brazil (21 per cent). Imports of chicken leg quarters, in particular, increased by 64 per cent, while imports of mechanically deboned chicken, used mainly in the production of hotdogs and processed meat products, increased by 45 per cent. In 2009, the Philippine Department of Agriculture (DA) approved special importations of chicken of up to 8,000MT, exempt from special safeguard duties, which contributed to the increase in chicken trade last year.
Policy
WTO commitments
Since 2005, the DA has continued to maintain 10th or final-year Minimum Access Volume (MAV) levels under its Uruguay Round commitments. For fresh/chilled/frozen poultry HS 0207, the final-year MAV was 23,490MT. The DA previously stated that it will continue to do
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Tariff rates
In-quota and out-of-quota tariff rates for MAV commodities have not changed since 2005. On the other hand, 2009 tariff rates for ASEAN countries have dropped to 20 per cent and are expected to reach 5 per cent in 2010. For this year, MFN and AFTA-CEPT (ASEAN Free Trade Agreement-Common Effective Preferential Tariffs) rates follow.
Special safeguards
In 2002, the Government of the Philippines imposed a price-based special safeguard duty (SSG) on chicken under H.S. 0207.1400 (frozen chicken cuts and offal). This has doubled the effective rate of protection for all out-of-quota imports for these specific products. Last year, the United States exported over $26 million worth of poultry meat to the Philippines, the majority of which are chicken leg quarters and other chicken cuts. The imposition of the SSG in 2002 was mainly the result of intense political pressure from the domestic poultry industry to keep low-priced chicken imports out.
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The
production,
processing,
distribution,
retail,
packaging and labelling of food stuffs are governed by a mass of laws, regulations, codes of practice and guidance. The Bureau of Food and Drugs is concerned with the whole food industry from farming, food production and distribution, to retail and catering. It addresses food safety issues at every stage of the chain, providing information and guidance on best practice and legal requirements.
Philippines - Regulations & Standards The regulation of food in the Republic of the Philippines is enshrined in the 1987 Philippine Constitution. Statutory laws are also in place providing legal basis for the creation of a regulatory agency, the Bureau of Food and Drugs (BFAD), mandated to ensure the safety, efficacy and good quality of all food products being made available to the general public "it is the policy of the state to ensure safe and good quality food, drug and cosmetics and regulate the production, sale and traffic of the same to protect the health of the consumer". The most important of these laws is the Republic Act (RA) 3720 "Foods, Drugs, Medical Devices and Cosmetics Act". Regulation is achieved through inspection and licensing of food establishments, registration and market monitoring of products, approval of product label prior to marketing, and approval and monitoring of promotions and advertisements.
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recommended by the WHO, USP or BP, FAO and Codex Alimentarius are used as a basis in the formulation and implementation of rules and regulations governing the manufacture, importation, exportation, distribution, or sale of food. In 2009 a new law was signed strengthening the regulatory capacity of the BFAD to ensure the safety, quality and efficacy of medicines and other health products in the Philippines. Republic Act No. 9711, otherwise known as the Food & Drug Administration Act of 2009, also renames the BFAD as the Food & Drug Administration (FDA) with improved administrative and technical capacity in the regulation of food, drugs, cosmetics and device establishments and products.
Regulatory Issues To prevent the occurrence of unfair trade practices, the government has implemented a series of policies to govern the retail trade sector. Some of these policies include: The Price Act of 1991 (RA 7581) which protects consumers from price manipulation such as hoarding, profiteering, and cartels; the Consumer Act of the Philippines (RA 7394) which penalizes certain acts such as deceptive, unfair, and unconscionable sales practices in both goods and credit transactions. It is the Department of Trade and Industry (DTI) which is tasked to implement these policies through their consumer protection program. Registration on BFAD Establishments involved in the manufacture, packaging, re-
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D. Technological Forces E-commerce, specifically on line advertisements, is very common nowadays. Looking to its significance on the business world, e-commerce considered one of the fastest, cheapest, and easiest ways to reach the consumers. Different companies in Litson Manok market, especially those which are well-known and in good financial condition, use websites to market their products and services. In order for this strategy to be successful, there must be a great number of internet users. According to Yahoo, as of June 2009, 29.7% of the population or 29,700,000 are considered internet users.
Technology brings significant benefits on the consumers and the food industry by eliminating boundaries in quality, quantity and reducing costs.
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Gross expenditure on R&D in Philippines for Food and Nutrition Development (Budget Appropriation from the Congress) Republic of the Philippines Republic Act No. 9970 GENERAL APPROPRIATION ACT Fiscal Year 2010
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FOOD AND NUTRITION RESEARCH INSTITUTE A. PROGRAMS I. General Administration and Support a. General Administration and Support Services 21,081,000 b. Sub-Total, General Administration and Support 21,081,000 --------------- --------------- --------------II. Operations a. Research and Development Services on Food and Nutrition 40,942,0 00 b. Technical Services on Food and Nutrition 38,058,0 00 TOTAL NEW APPROPRIATIONS =============== =============== =============== Special Provision(s) I. General Administration and Support a. General Administration and Support Services 21,081,000 b. General management and supervision 18,467,000 P P 100,081,000 P
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Competition (High) Andoks Baliwag Sr. Pedro Mangboks ChicBoy Pop-ups chicken stores
Customers
(High) Families Professionals Students Commuters Potential Franchisees Other
customers
Substitute (High) - BBQ (includes Chicken Inasal) - Sisig - Liempo - Other unseen substitutes
Competition
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Baliwag Lechon Manok Inc. Baliwag Lechon Manok Inc. is one of the largest companies in the litson manok market in Philippines primarily selling litson manok, fried chicken and litson baboy. In NCR alone, Baliwag has more than 120 branches as they were considered as the top selling litson manok because of their secret ingredient pandan. They also started opening in food courts of some malls like SM. Mang Boks Manok Mang Boks focuses on quality, cleanliness, and their very unique way of packaging. The roasted products can be taken home in specially designed styro-foam packages that are very hygienic and easy to carry. Its mission is to provide customer with high quality thru value for money and to improve on existing product lines thru continuing product research and development. It aims to stay ahead of competition by making the Mang Boks Manok name synonymous to high quality and value. The management decided to further expand the business thru franchising and aims to establish more outlets nationwide. New Entrant Despite of homogeneity of products offered, new entrants cannot easily penetrate the market for competition is very high among Andoks and its competitors which have already established their name in the market. High capital requirement also strengthens the entry barrier. In addition, raw chicken meats are perishable. Proper management of raw materials adds up to the difficulties for the new entrants. Improper management can result to an immediate loss because of large costs.
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Customers Competition gives a high impact when it comes to the decision making of the customers for they can control the litson manok market, especially on the aspect of prices. On the other hand, consumers determine the market share of the company. Customers also have a great influence in the competition for they can strategically play the market considering the high number of competitors offering same products. They can easily switch from one company to another. Naturally, Filipinos families love to eat together, students
(especially those in the college levels who can already afford to purchase and always have the interest of eating together with friends, and the professionals who already have the purchasing power which eventually give them the greater decision power. Other customers include individuals that cannot be classified under the given categories like out of school youth, unemployed, but still have the capacity and interest to buy the product because of factors such as financial stability, support, provision. Suppliers Existing players in litson manok market have dominance over their suppliers. They cannot be controlled by any single supplier because raw meat and other supplies that are needed for the completion of the product are available in numerous numbers of suppliers locally and internationally. Other barriers like government control over the prices and supply of raw chicken meat limits the power of the supplier Currently, Andoks has four quality suppliers. They are not limited by one supplier. Issues on supply and price change are controllable.
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Substitutes Though high number of competitors in litson manok market takes a good position in the food industry, it has an equal power with that of the substitutes. Litson manok market is just one of the several markets inside the said industry. There is a wide variety of choices which Filipinos consider when they are deciding what to serve on their dining tables or lamesa. Other unseen substitutes include palabok, spaghetti, pancit, and the likes that can be served for numbers of people.
F. Company Profile Andoks is primarily engaged in the business of selling litson manok or roasted chicken. Over time, ANDOK'S had evolved and added a new concept to its main business of offering roasted chicken, and that is the concept of specialty grocery store offering a host of products, including beer, an assortment of beverages, rice, sugar, and other grocery products. Andoks now has approximately 150 SKUs (Stockkeeping unit) offered in the market, and is likely to grow in order to meet the demands of its valued customers. ANDOK'S main business thrust has always been to provide high quality products at affordable prices. From the first ANDOK'S outlet located at Baler Street corner West Avenue Quezon City way back 1985; the Company has now grown into more than 300 stores across the country. These stores are strategically located in key municipalities nationwide.
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It was in July 2002 that ANDOK'S opened its first store in Mabolo and Mactan Cebu. Eleven outlets were later established within two years, all strategically located along the major localities in Cebu area. In September 2004, ANDOK'S opened its first dine-in store in D'Mall located at Boracay Island, province of Aklan. Soon thereafter, four dine-in stores opened in a span of less than a year. To date, Andok's has a total of six stores in the island of Boracay.
ANDOK'S saw the great potential of Panay Island, and later on opened two dine-in stores in Iloilo and in Kalibo during the last quarter of 2005. The newly opened stores emerged as among the top ten stores of the Company nationwide as of to date. Having seen the excellent sales performance of dine-in stores in Panay Island, the Company is now gearing towards the opening of dine-in stores nationwide. The Company opened in Market Market mall, ANDOK'S first dine-in store in Metro Manila. Two outlets in Baguio City were converted into dine-in stores in early 2006. To date, the Company has more than 60 dine-in stores nationwide, namely Robinson's Novastop, Olongapo, Tagaytay, SM City Lipa Batangas, Baclaran, Tacloban Palo, Tacloban RTR, Baguio Session Road,
NEW ERA UNIVERSITY Harrison, Dampa Farmers, Stop & Shop, Mactan Cebu, Mandaue Cebu, among others.
The success of Andok's in almost twenty five years of operations has given us the capability to pursue expansion. They take pride in having a capable and strong retail organization that is structured for efficient and systematic franchise support. Our Metro Manila commissary has acquired (GMP) "AA" standard while for our Good Iloilo Manufacturing Practices compliance,
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commissary has been nominated for "AAA" standard for GMP. This enforces that we can meet the daily requirements of our franchisees and consumers.
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Dokito frito Crispy and juicy choice cut breaded fried chicken with distinct Andoks Dokito Frito aroma and taste
Crispy pata Deep fried pork leg with crunchy rind and soft and moist meat inside and distinct Andoks Crispy Pata aroma and taste
Litson Bangus Char-grilled boneless fish stuffed with flavored onions and tomatoes with distinct Andoks Litson Bangus aroma and taste
Porkcharap Porkchops crisply coated in palatable crumbs with distinct Andoks Pork Charap aroma and taste
BBQ - Sweet and spicy grilled lean pork cuts with distinct Andoks Barbeque aroma and taste
BBQ Liempo Sweet, juicy and tender pork belly charcoal grilled with distinct Andoks Barbeque Liempo aroma and taste
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Litson kawali - Fried pork belly with crispy skin and tender meat and distinct Andoks Litson Kawali aroma and taste
Kawali royal Reinvented twist of traditional Litson Kawali in a special mix of leeks with distinct Andoks Kawali Royal taste and aroma
Bistek Tagalong Scrumptious combination of beef and onions and special sauce with distinct Andoks Bistek Tagalog taste and aroma.
Beef Rice - Beef slices served in enticing sauce and topped sesame seeds and spring onions with distinct Andoks Beef Rice taste and aroma
Pork Sinigang Special mix of tamarind soup base, fresh vegetables and pork slices with distinct Andoks Pork Sinigang taste and aroma
Chopsuey - An appetizing combination of fresh stir-fried with distinct Andoks Chopsuey taste and aroma, a favorite dish of health conscious Pinoys
Bicol Express Spicy stew made from long chilies, string beans, shrimp paste and pork with distinct Andoks Bicol Express taste and aroma
Sisig - Chopped maskara and chicken liver enhanced with secret spices and flavoring with distinct Andoks Sisig taste and aroma
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Inasal - A tempting new dish, full of interesting flavor and texture enhanced with secret spices and flavorin
Afforda Meals
Dokito Meal Andoks Dokito Frito with rice and gravy Prokcharap Meal - Andoks Porkcharap with rice and gravy
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BBQ Meal Andoks Barbeque on stick with rice and sweet and sour sauce
BBQ Liempo Meal - Andoks Barbeque liempo chopped into bite-size pieces with rice and sweet and sour sauce
Breakfast style combination of brine-cured beef brisket, rice and fried egg with distinct Andoks Corned Beef aroma and taste
Breakfast style
combination of sweet cured meat, rice and fried egg with distinct Andoks Tocino Agahan aroma and taste
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Breakfast style combination of sausage, rice and fried egg with distinct Andoks Langgonisa aroma and taste Breakfast style combination of hotdog, rice and fried egg with distinct Andoks Kenkoy aroma and taste
Breakfast style combination of Lucban sausage, rice and fried egg with distinct Andoks Lucban Langgonisa aroma and taste
Merienda
Meat stuffed steamed bun with distinct Andoks Siopao taste and aroma NEW! Chocolate stuffed steamed bun with distinct Andoks Chocopao taste and aroma
Spaghetti
NEW! Native rice cake with distinct Andoks Bibingka Espesyal taste and aroma
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Services Franchise
Andok's offers two franchise formats: Take-out and Dine-in. Both offer the same great tasting and affordable food Filipino families have come to love through the years. Recently, Andoks offers a franchise in a format of food stalls in places like LRT stations.
Delivery The 24-hour delivery service of Andoks is concentrating in all areas of Makati City and it has its own call center to receive orders. The hotline number is 844-4444 with a minimum order of only Php 150.00.
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H. Organizational Structure
The organizational structure of Andoks Corporation falls under traditional-functional structure. In this structure, teams or groups are created based on a common function which follows the bottom-up manner. It is a result of functional areas such as marketing, finance, human resource, and the likes that are coordinated by the top level management.
food tradition.
To be globally recognized as the Supreme Leader in the
Philippines and abroad through aggressive expansion and continuous innovation in terms of product development and service excellence.
To be the leading quick service restaurant by continuously
providing our customers the best quality food, value for their money and excellent customer service.
To provide every Filipino home the joy of family ties by giving
Mission
NEW ERA UNIVERSITY Andoks general mission is two- fold, with each being an integral to our success as the next. Product Mission- Ensure availability and quality of our products through innovation and product leadership. Economic Mission- Operate and grow at a profitable rate through sound economic decisions. Plan and implement systematic strategies in order to explore our unrealized potentials for bigger opportunities, higher revenue and immense earnings. II. External Factor Evaluation (EFE Matrix)
Key Internal Factors Weig ht Rati ng Weight ed Score 0.60 0.92 0.45
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3 4 4
1 1 2 2
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2 1 1
1.00
3.10
IV.
Critical Success Factor Accessibility Customer loyalty Location Nutrition Packaging Price competitive Processing Product quality Promotion Taste Total
These companies are great competitors for Andoks Litson Corporation. Though they are considered competitors, Andoks Litson Corporation can formulate strategies based from their performance to improve the company. There accessibility, are ten critical success factors for liston manok market: price customer loyalty, location, nutrition, packaging,
competitiveness, processing, product quality, promotion, and taste. The main competitors are Mang Boks, Sr. Pedro, and Baliwag which backgrounds are discussed.
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2.
3.
Opportunity 1. Increasing Urban Population 2. Increasing demand for food stalls 3. Filipinos culture and spending pattern for food
SO Strategies 1.Additional outlets in urban areas 2.Add food stall outlets 3.Explore internetbased marketing
WO Strategies 1.Invest in a good managing info system 2.Train staffs with the required technical capabilities 3.Improve outlet designs and packaging
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In general terms, Market Development, Product Development and Market Penetration are the strategies which are appropriate for the existing internal strengths and weaknesses, and external opportunities and threats. SO Strategies Additional outlets in urban areas- Andoks Litson Corporation
must explore urbanizing places where they can strategically place their outlets.
the most efficient and fastest way to reach the consumers. Andoks must explore other way beyond their existing website, which costs can be covered by their finances.
WO Strategies Invest in a good managing info system- A good network consolidation can give a significant help in the whole operation of Andoks Corporation. This can connect store networks via broadband or frame- relay. This project allows fast transfer on information from the head office to the different branches nationwide. Examples of this information are announcements,
NEW ERA UNIVERSITY price updates, memos, suppliers update, and email. This project will not just benefit the company, but the millions of customers, as well. Train staffs with the required technical capabilities- Staffs must be equipped with necessary training to enhance overall performance and image of the company. This will also increase employee retention in the company. Improve outlet designs and packaging- Improve company image through outlet innovation. Store sanitation must also be considered. Develop food packaging by using paper bags and banana leaves to be more eco-friendly.
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ST Strategies Additional healthy menu- Andoks can cater additional healthy menu, especially on dine-in store. This will give a room for healthy eater consumers. Make an intense product identity- Andoks must intensify their campaign to maintain their position as Pambansang Litson Manok. Delivery must also be available in other outlet aside from Makati to increase service differentiation. Delivery during weekends and holidays can be introduced to add convenience for customers. Increase product quality and health benefits awarenessAndoks products are in good quality and contain health benefits. It is a good strategy to emphasize these to combat the high number of competitors. and labeling. WT Strategies Invest in a good managing information system This can be done through promotions
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Provide a good employee training program Improve packaging and overall design
VI.
FINANCIAL STRENGTHS 1. Working capital 2. Liquidity 3. Profitability 4. Return on Investment TOTAL FS average (20/4) COMPETITIVE ADVANTAGE 1. Market share 2. Product quality 3. Control over suppliers and distributors 4. Financial Stability TOTAL CA average (-8/4)
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Ratings of this matrix are based on different analysis on the internal and financial condition of the company, as well as the external and industry condition. Computations are made for financial analysis to make the ratings more accurate.
Y-axis: 5.0 (FS) 2.75 (ES) = 2.25 X-axis: 6 (IS) 2 (CA) = 3.0
FS
+6 +5 +4 +3 +2 +1
(3.0, 2.25)
CA
+1 +2 +3 +4 +5 +6
IS
ES
The result on the SPACE Matrix signifies that the company is financially strong that has achieved major competitive role in a
NEW ERA UNIVERSITY growing and stable industry. In addition, the company is in good position to use internal strengths to take advantage of external opportunities, overcome internal weaknesses, and avoid external threats. Backward, Forward, and Horizontal Integration, Market Penetration, Market Development; and Product Development are possible strategies.
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VII.
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BCG Analysis Since Andoks Litson Corporation is a product base company, this BCG Matrix is based on the sales ability of the products. Product development is one of the strategies applied here when it comes to their products. Market Penetration and Market Development are also applied as they offer these products in outlets that open and to food stall which is a new format of their outlets.
o Star People often buy products that are on star quadrant. These
include Litson Manok, Dokito, Pork Charap and Liempo. These are the main products that generate a big amount of income which Andoks offers to their customers.
o Cash Cows Even though Andoks has a large market share in the
business compared to other litson manok company, the growth of these products, Bistek Tagalog, Pork Sinigang, and Sisig, are lesser.
IV
VI
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Based on the IE matrix, the company falls on quadrant II. Main strategies such as Backward, Forward, and Horizontal Integration; Market Penetration; Market Development; and Product Development can be used to improve sales. These alternative strategies will be further evaluated on the next matrices and analysis.
IX.
Quadrant 2
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STRONG COMPETITIVE POSITION
Quadrant 3
Quadrant 4
This signifies that Andoks Litson Corporation is in an excellent strategic position. It is capable of taking advantage of the existing external opportunities. current strategies products and to and Penetration, Andoks can do continued concentration on market. Market Development, are the and Market Development Backward, corresponding Horizontal
Product that.
obtain
Forward,
X. Table of Strategy for the Matching Stage MATRI X TOWS Recommended Strategy
MARKET DEVELOPMENT PRODUCT DEVELOPMENT MARKET PENETRATION BACKWARD INTEGRATION FORWARD INTEGRATION HORIZONTAL INTEGRATION MARKET DEVELOPMENT PRODUCT DEVELOPMENT MARKET PENETRATION BACKWARD INTEGRATION= 3 FORWARD INTEGRATION= 3 HORIZONTAL INTEGRATION= 3
Total
SPACE
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GSM
BCG
In summary, these are the strategies suggested in different matrices used: Backward, Forward, and Horizontal Integration, Market Penetration, Market Development, and Products Development. Among these strategies, Market Penetration, Market Development, and Product Development are the preferred ones, and the researchers agree with it. Andoks Litson Corporation is in good financial condition, but its extra resources cannot perform Integration strategies at the same time. Such strategies demand for more financial support. In addition, Market Penetration, Market Development, and Product Development are timelier to use considering the existing forces in the environment.
Example of Integrations strategies is Andoks having its own Research and Development Department, which is a Backward Integration. At present, Andoks contract with research firms when necessary. Having own R&D needs a financial resources for investment
NEW ERA UNIVERSITY and maintenance. There is no significant need for this department at the moment also.
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XI.
AS= Attractiveness Score; TAS= Total Attractiveness Score AS: 1= Not Attractive 2= Somewhat Attractive 4= Highly Attractive Product Development AS TAS 3= Reasonably Attractive
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0.25
1.00
1.00
1.00
0.15
0.60
0.60
0.60
0.10
0.40
0.30
0.20
3 4 2
4 4 3
2 4 3
1.00
3.75
3.20
3.00
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0.25 0.15
4 4
1.00 0.60
4 4
1.00 0.60
4 4
1.00 0.60
0.10
0.20
0.20
0.20
0.05
0.10
0.05
0.05
1.00
3.25 7.00
3.20 6.40
3.20 6.20
As seen in the above matrix, product development strategy is the most attractive strategy among the three strategies, followed by market development and market penetration strategy respectively.
XII.
Summary
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Backward, Forward, and Horizontal Integration, Market Penetration, Market Development, and Product Development are suggested. Market Penetration, Market Development, and Product Development are more recommended to be implemented because of factors such as financial capability and timeliness. In addition, these strategies are aligned with vision and mission of the company. Researchers suggested specific tactics to expound the strategies further.
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XIII. Conclusion Andoks Litson Corporations can be considered one of the strongest players in the litson manok market. The company is in good position to use internal strengths, such as financial stability, established name, and the likes, to take advantage of external opportunities, overcome internal weaknesses, and avoid external threats, thus a very competitive company. After analyzing the different factors with the help of different matrices, Backward, Forward, and Horizontal Integration, Market Penetration, Market Development, and Product Development come up as suggested strategies Though all of these are possible, it is more appropriate to apply Market Penetration, Market Development, and Product Development as main strategies to improve the sales of Andoks Litson Corperation. These strategies best suit the existing forces in the environment, culture of the consumers, and trends in Philippines. There is a great chance to dominate the market as the company implement these strategies. XIV. Recommendation As seen to TOWS Matrix, the researchers recommend the following tactics for the company:
First, the company may put additional outlets in urban areas. Andoks Litson Corporation must explore urbanizing places where they can
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Third, the company is capable of exploring internet-based marketing. Based on the analysis on technological environment, populations of internet users, in offices or homes, are continually increasing. E-commerce is one of the most efficient and fastest ways to reach the consumers, thus used by different companies. Andoks must explore e-commerce beyond their existing website, which costs can be covered by their finances.
Fourth, invest in a good managing info system. A good network consolidation can give a significant help in the whole operation of Andoks Corporation. This can connect store networks via broadband or framerelay. This project allows fast transfer on information from the head office to the different branches nationwide. Examples of this information are announcements, price updates, memos, suppliers update, and email. This project will not just benefit the company, but the millions of customers, as well. Staffs should also be trained with the required technical capabilities. This will enhance overall performance and image of the company and will also increase employee retention in the company. These will support the company as they apply Market Penetration, Market Development, and Product Development. The success of the strategy implementation will be based from the performance of the manpower on as how they apply it.
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In company
relation may
with
developing product
food quality
packaging, and
sixth,
the
increase
health
benefits
awareness. Andoks products are in good quality and contain health benefits. It is a good strategy to emphasize these to combat the high number of competitors. This can be done through promotions and labeling. Examples are putting phrases in the packaging such as Mayaman sa Protina, Mas Pinasarap, or Masarap may sawsawan o wala are suggested. This will support the word-ofmouth strategy.
Seventh, add healthy menus. Andoks may cater additional healthy menu, especially on dine-in store. This will give a room for increasing healthy eater consumers. This is part of product development. Lastly, make an intense product identity. Andoks must intensify their campaign to maintain their position as Pambansang Litson Manok. Delivery must also be available in other outlet aside from Makati to increase service differentiation. Delivery during weekends and holidays can be introduced to add convenience for customers.
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: Name : Bachelor of Science Business Administration major in Marketing/Financial/Human Resources Management : The Art of ABC
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: Name : Bachelor of Science Business Administration major in Marketing/Financial/Human Resources Management : The Art of ABC
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: Name : Bachelor of Science Business Administration major in Marketing/Financial/Human Resources Management : The Art of ABC
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: Name : Bachelor of Science Business Administration major in Marketing/Financial/Human Resources Management : The Art of ABC
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: Name : Bachelor of Science Business Administration major in Marketing/Financial/Human Resources Management : The Art of ABC
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Name Major : : Name Bachelor of Science Business Administration major in
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