Central Luzon State University

College of Business Administration and Accountancy

Science City of Munoz, Nueva Ecija

External Factor Evaluation (EFE)

Matrix, Internal Factor Evaluation
(IFE) Matrix and Competitive Profile
Matrix

Bautista, Baby Joy A.

Joson, Crystal Gayle A.
Macadangdang, Danah Louise B.
Molina, John Paul H.
Peralta, Joan May C.
Perez, Eugene L.
Posedio, Karen Mae V.

BSTA 4-2
A.Y. 2018-2019
The External Factor Evaluation (EFE) Matrix
OPPORTUNITIES WEIGHT RATING WEIGHTED
SCORE
1. Greater market opportunities in 0.15 4 0.60
ASEAN Integration and other foreign
countries
2. Increase in demand for chemical-free 0.05 2 0.10
canned goods
3. Innovations in packaging , and high 0.10 3 0.30
investment in Research and
development
4. Canned goods is expected to gain 0.10 3 0.30
more importance due to hectic and
busy lifestyles of consumers.
5. The demand for sealed and tamper- 0.05 2 0.10
proof is high, as they protect food
from harmful bacteria.
6. Canned foods require less preparation 0.05 2 0.10
time and are considered convenient to
use.
THREATS

1. Consumers are looking for what they 0.10 3 0.30

deem to be healthier products.
2. Limited supply of raw materials, 0.10 3 0.30
specially tuna.
3. Global issues about Bisphenol A 0.15 4 0.60
(BPA), and other harmful chemicals
on canned goods.
4. Competitors offering Non-BPA 0.10 3 0.30
products
5. Brand loyalty of the customers 0.05 2 0.10
TOTAL 3.10
FINDINGS AND ANALYSIS:
Staying true to its commitment to nourish and delight everyone, everyday, everywhere, Century
Pacific has embarked on a journey towards becoming a truly global Filipino food company.

The past few years saw the Company expand its footprint, bringing its products closer to
Filipinos wherever in the world they may be. Today, the Company’s brands are made available in 58
countries globally. This has been made possible by strengthened sales and distribution in key markets
globally.

Similarly, Century Pacific has also focused on expanding its product line-up with entries into new
categories using brands that resonate strongly with Filipino consumers. Kamayan in shrimp paste and
Hunt’s in Pork & Beans are both welcome additions to the Company’s roster of household names. These
accretive acquisitions are also opportunities to extract a number of potential synergies. These include
synergies in the supply chain, distribution, manufacturing, and marketing.

Century Pacific also looks forward to leveraging on the track record and category leadership that
have been built for these brands both locally and abroad. Century Pacific has been successfully
marketing its key brands in North America, Middle East and Europe. Packaging has been specifically
redesigned for products destined for global markets.

Business Review Selected offshore advertising is also being made. The Argentina brand in
particular has made in-roads in the international space, made stronger by a network of toll
manufacturers in the U.S. A global sourcing strategy has enabled Century Pacific to effectively roll out
products in different countries, passing the rigid regulatory requirements of each foreign market.
The Internal Factors Evaluation (IFE) Matrix
STRENGTHS WEIGHT SCORE WEIGHTED
SCORE
1. Product diversification strategy 0.10 3 0.30
2. Taking advantage of subdued input 0.10 3 0.30
prices
3. Massive global distribution network 0.20 4 0.80
4. High percentage of product 0.10 3 0.30
availability in all Philippine outlets
5. Globally, investing in a worldwide
sales and distribution infrastructure 0.15 3 0.45
6. Dominant market leadership in the 0.10 4 0.40
shelf-stable, canned food market,
specifically in canned tuna
WEAKNESSES

1. Lack of innovations in some 0.10 2 0.20

unpopular brands
2. Insufficient advertising 0.05 2 0.10
3. Low market share in the canned 0.10 1 0.10
sardines, and dairy mixes segments
TOTAL 2.95

FINDINGS AND ANALYSIS:

CNPF dominates the canned tuna and canned meat categories locally, which are in
turn the largest subcategories of canned food in the Philippines. Canned food, especially
those with more affordable prices, is a staple in Philippine households.
These are convenient food items because no refrigeration is required and they are
either ready-to-eat or need very little preparation. Affordability, convenience, ease of
distribution, and cultural affinity are key reasons as to why the Philippines has the largest
shelf-stable, canned food market in South East Asia. Within this space, Century Pacific’s
brands are the brands of choice for the Filipino consumer. Its established reputation
provides a strong platform to grow categories and expand market shares through new
products and line extensions. The Company maintains a broad portfolio of products,
brands, variants, and pack sizes that cater to all preferences and price points. This enables
it to capture a larger share of consumers’ stomach and wallet.
Varying price points also allow CNPF to reach both price conscious consumers as
well as the upper-income markets that seek more premium options. This expanding
product portfolio also provides diversification benefits against concentration risk and
input price exposures. CNPF has demonstrated strong innovative capabilities with an
established track record of introducing products that address different needs. Such
innovations not only ensure a robust pipeline of new and exciting products that engage
the market, but also help address cost concerns when input prices go up.
It is the Company’s strong research and development capabilities which enable a
steady stream of product launches and help improve profitability. Through outstanding
marketing campaigns, the Company is able to create with these products must have and
aspirational brands. Brand recognition is enhanced through active and targeted marketing
and promotions. Intuitive and appealing ad campaigns employing well known celebrities
are able to stand out and grab the attention of potential consumers. More recently,
capitalizing on the desire for healthier lifestyles has been an important strategy for CNPF.
The Company operates and manages one of the most extensive distribution
networks across the Philippines. It currently services 271,00 outlets directly, with its
products available in 760,00 outlets in the country. This represents approximately 66% of
all points of sale domestically. Its exposure to multiple channels and strong relationships
with various customers allow it to maximize and optimize consumer reach. This sales
network is also supported by strategically located production facilities that are situated
close to the sources of main raw materials. Globally, CNPF has begun investing in a
worldwide sales and distribution infrastructure that will also allow it to reach consumers
from all over the world.
Finally, we are a trusted partner for leading international customers CNPF has
long-standing relationships with large international food manufacturers, initially just for
tuna, but now for various coconut products as well. The Company has developed a world-
renowned reputation in the global community as reliable, consistent, and of high quality.
Its customers include market leaders and international food companies in some of the
most strictly regulated markets, a testament to CNPF’s stringent product quality and
supply reliability processes.

Source:
Century Pacific Food Inc. 2016 Annual Report
https:www.centurypacific.com.ph