Mary the Queen College Jose Abad Santos Ave., San Matias, Guagua, Pampanga

Mang Inasal Philippines Inc.

A Project Strategic Marketing Management PaperPresented to the College of Business Administration

In Partial Fulfillment of the RequirementsFor the degree of

Bachelor of Science in Business AdministrationMajor in Marketing Management

Lopez, Rosemarie P.Mercado, Dimple Kaye V.

Acknowledgement

This Strategic management paper would not have been possible without the

guidance and the help of several individuals who in one way or another contributed and

extended their valuable assistance in the completion of this paper.

First and foremost, our deepest gratitude to our Almighty God for the blessings,

wisdom and knowledge that he showered upon us.

We also wanted to thank our family for the love, concern and moral support. To

our friends and special someone who inspired, encouraged and fully supported us for

every challenges that comes our way.

And also to Mrs. Karren Joy D. Morga, CPA, Mr. Roel Felipe Torres, and Engr.

Nicon Mark M. Versoza who devoted their time in helping us for the accomplishment

and completion of this project.

To our adviser, Ms. Lanie Galvan and to our respective consultant Mr. Isaiah

Panganiban Jr. for some advises, assistance and untiring effort in encouraging us to

pursue this study.

We would like also to extend our thanks to Mrs. Erlinda C. Kabiling, Course

Coordinator, and Mrs. Dolores T. Quiambao, Dean of College who inspired us.

Chapter 1

Introduction

      Fast food is food, which is prepared and served quickly at outlets called fast-food

restaurants. A restaurant is an establishment that serves prepared food and beverages on

tables set for individuals, pairs or larger groups, to be consumed primarily on the

premises. Restaurants serve a wide variety of food at a specified cost given on its menu

card for on or off the premises consumption. These includes eating establishments where

customers are served at walkup or drive away ordering counters for either on or off

premises consumption. However, most good restaurant serves food at tables to their

customers for on-premises consumption. Many of the restaurant chains, have enhanced

their annual sales many times over, well beyond the limits of the tables they can served

each day, by offering hot well packed meals through free home delivery service on orders

placed through a telephone call. It is a multi-billion peso industry that continues to grow

rapidly in many countries. A fast-food restaurant is a restaurant characterized both by

food which is supplied quickly after ordering, and by minimal service. The food in these

restaurants is often cooked in bulk in advance and kept warm, or reheated to order. Many

fast-food restaurants are part of restaurant chains or franchise operations, and

standardized foodstuffs are shipped to each restaurant from central locations.

In today’s world, going to a restaurant has more to do with socializing then to just having

a meal. Only a few decades back restaurants were specifically targeting families, which

situation does not hold true today. Nowadays, even children; regularly eat out with their

friends, on their own. Therefore, restaurants are not just about food of ambience. On a

macro level, they are an important contributor to the economy while on personal levels it

provides us with a place to easily connect with others.

Background of the Study

Fast food industry has been in existence for the past years. The growing

popularity of the industry gave way for many businessmen to put up many branches or

chains in different parts of the country. This leads to the birth of fast food chains, by

which Jollibee, McDonalds, KFC, Mang Inasal, Chowking, WOK Express and

Greenwich are few examples. People prefer to go into fast food chains not just because of

their food preference but because they serve their customer in a quick manner.

Fast Food Industry is now evolving in the food service industry. Malls have been the

place for these because consumers are more of hanging out while eating than buying and

going around the mall. It has been fast growing in the industry because of low budget of

capital and easy to manage due to franchise offers from different sectors.

Company Overview

Mang Inasal Philippines, Inc. operates quick service restaurants. It specializes in

chicken inasal and various pinoy products. The company‘s menu include pinoy palamigs,

pinoy and keso burgers, beef sinigangs, and bangus sinigangs. The company was founded

in 2003 and is based in Iloilo City, the Philippines. It has additional offices in Luzon,

Visayas, and Mindanao. As of November 22, 2010, Mang Inasal Philippines, Inc.

operates as a subsidiary of Jollibee Foods Corp.

Company Profile

Mang Inasal (Ilonggo term for Mr. Barbecue), the Philippines fastest growing

barbeque fast food chain, serving chicken inasal, pork barbeque and other Filipino

favorites, was first established on December 12, 2003 in Iloilo City by businessman

Edgar Sia II . Apart from the usual food presentations of multinational food company

copycats, Mang Inasal endeavors to adhere to elements that bear a distinctively Pinoy

stamp-grilling with charcoal, rice wrapped in banana leaves, a marinade concocted out of

local spices and herbs, bamboo sticks for skewers, and the ambience that encourages

kinamot (Ilonggo term in eating with the hands) whenever chicken inasal is served.

Currently, there are 306 branches nationwide and with over 8,000 employees system

wide. MANG INASAL is doing its share in alleviating the unemployment burden of the

country. The presence of every MANG INASAL in a certain area provides not only

employment but also opportunities to community members including suppliers of

kalamansi, charcoal, banana leaves, vegetables, bamboo sticks, and other ingredients.  It

also indirectly gives income-generating activities to many.

Mang Inasal is operating at the following areas: Bacolod, Iloilo, Roxas, Laguna, Bicutan,

Metro Manila, Davao, Cagayan De Oro, Koronadal, Cavite, Cebu, Boracay, Baguio,

Pangasinan, Tuguegarao, La Union, Pampanga, Bulacan, Mindoro, Agusan, Zamboanga,

Ozamiz, Iligan, Surigao, General Santos, Pagadian, Batangas, Lucena, Naga City, Davao

del Norte, Davao del Sur, Tagaytay, Palawan, Tacloban, Ilocos Sur and Tarlac. Mang

Inasal is targeting to open 500 stores before 2012.

Mang Inasal Iloilo Corporate Office is located at Four-Season Hotel, Delgado St., Iloilo

City. The office fax numbers are (033) 508-7111 and (033) 508-5111. Manila Corporate

Office located at 2316 Aurora Boulevard, Tramo St., Pasay City with fax number (02)

854-5692. You can also visit its website at www.manginasal.com or you can email at

info@manginasal.com

In Mang Inasal, “Pinagsikapan naming laging mabilis, laging masarap, at laging abot-

kaya” so that the Pinoy can truly say, “Kumbinsing!”

Edgar Sia: The man behind Mang Inasal

* Sia recently received the Urban Leadership Award from the Canadian Urban Institute

(CUI)

Edgar "Injap" Sia II is the man behind Mang Inasal, one of the fastest growing food

companies in the Philippines, which has become a modern icon of the Ilonggo culinary

culture.

His parents gave his the nickname Injap because Sia is originally from China while

Jaruda, his mother's name, is originally from Japan. Injap stands for Intsik-Japan. His

parents are businesspersons and it was expected that he take up some business-related

course in college. He took up Architecture instead.

Sia's first taste of running a business was when he was 20 years old. It was at the Four-

Season Hotel, followed by Mister Labada, a Laundromat, then Injap Color Express, a

photo developing shop. All these are based in Iloilo.

Then, he cooked up the idea of operating Mang Inasal, the specialty of which is grilled

chicken. It opened on December 12, 2003.

Mang Inasal was instantly loved by Ilonggos. Then, it branched out to the rest of Visayas,

Mindanao and Manila. Mang Inasal is well-received there, too despite the stiff

competition in the grilled food business. The secret, of course is the use local herbs and

spices that make the chicken taste good. The chicken is held by a bamboo stick and the

rice is wrapped in bamboo leaf.

Mang Inasal has 23 branches, with 10 being franchised. Sia is targeting 100 outlets by

2009. It was open for franchise in 2005.

Each store employs an average of 40 people, thus generating jobs in the communities

where they operate. This has become a market for local products needed by the store.

Grilled chicken isn't the only fare that Mang Inasal offers. They have Sisig, Grilled Pork,

Bangus, Chicken Feet, Wings, Pecho, Liver and Baticulon, Fish and Pork Sinigang,

Batchoy, Bihon, Pancit Molo, Pinoy Burger, Pinoy Mirienda, Pinoy Panamis, Pinoy

Pampagana, and more.

After the success of Mang Inasal, Sia revived Deco's last September 2007, considered as

the original batchoy. It has branches in Delgado, Robinsons Mall and Gaisano City.

Sia recently received the Urban Leadership Award from the Canadian Urban Institute

(CUI). This is the second holding of the Urban Leadership Awards. This honors those

who have made outstanding contributions to the enhancement of the public realm and the

quality of life in the Metro Iloilo-Guimaras area.

There are 10 awardees from Iloilo City. They are Sia, Henry Baviera, Sonia Cadornigara,

Ma. Luisa "Marissa" Segovia, Edgar Sia for individual awardees and Iloilo Dinagyang

Foundation Incorporated, Iloilo Washington Commercial, Jaro Archdiocesan Social

Action Center (JASAC), SM Waste Market Fair, Taytay sa Kauswagan and Callbox, for

the organization awardees.

Importance of the Study

Since Mang Inasal is all about Food and Beverage, a product that categorizes as

one of the most highly in demand in food, it is important to make a study to be able to

know how it is being served, know its mission and vision for the benefits of the

patronizes and since Mang Inasal is the fastest growing quick serve restaurant (QSR) in

the country today, it is important to know some facts for the upcoming restaurant aspiring

entrepreneurs in Fast Food industry.

Research and Design Methodology

This paper is entirely based on the availability of primary data we gathered from

employee interview, company profile and in the internet. The researcher was able to have

an interview with the employees in the business branch at SM Pampanga.

In this paper it includes the Competitive Analysis and Industry Analysis. This

data are presented to determine the strengths, weakness, opportunities and threats of the

business. SWOT analysis helps to distinguish between where your business is today, and

where it could be in the future.

In this paper it also used Porter’s Five Forces of Competition model that

a company must seek to understand the nature of its competitive environment if it is to be

successful in achieving its objectives and in establishing appropriate strategies. If a

company fully understands the nature of the Porter’s five forces, and particularly

appreciates which one is the most important, it will be in a stronger position to defend

itself against any threats and to influence the forces with its strategy. Five forces analysis

looks at five key areas namely the threat of new entrants, the bargaining power of

customers, the bargaining power of suppliers, the threat of substitute products, and

competitive rivalry within an industry.

The PEST model is also used in this paper. The PEST Analysis or model is

another tool, quite similar to the SWOT model, but it is more specialized and focused on

the external environment and important factors "out there" that can affect present and

future business. The PEST acronym stands for Political, Economic, Social and

Technological. Of course, once political, economic, social and technological factors are

identified which is the first step. The next step is to create a business strategy or strategies

that will take advantage of these trends and changes, while minimizing risk to the

company from those trends and changes

Internal and External Analysis are also applied in this paper. Internal Analysis are

the strengths and weaknesses of a company. It focuses on internal factors that give an

organization certain advantages and disadvantages in meeting the needs of its target

market. Strengths refer to core competencies that give the firm or industry an advantage

in meeting the needs of its target markets. Any analysis of company strengths should be

market oriented/customer focused because strengths are only meaningful when they assist

the firm in meeting customer needs. Weaknesses refer to any limitations a company faces

in developing or implementing a strategy. Weaknesses should also be examined from a

customer perspective because customers often perceive weaknesses that a company

cannot see. While the External Analysis examines opportunities and threats that exist in

the environment. Both opportunities and threats exist independently of the firm. The way

to differentiate between a strength and weakness from an opportunity or threat is to ask,

would this issue exist if the company did not exist? If the answer is yes, it should be

considered external to the firm. Opportunities refer to favorable conditions in the

environment that could produce rewards for the organization if acted upon properly. That

is, opportunities are situations that exist but must be acted on if the firm is to benefit from

them. Threats refer to conditions or barriers that may prevent the firms from reaching its

objectives.

* We are limiting our study of the Strategic Marketing Management with Mang Inasal

Philippines Inc. at SM Pampanga financial statement as management policy and

confidentiality.

Chapter II

Mission and Vision Statements

Vision

To be the preferred quick service restaurant of every pinoy everywhere!

Mission

To consistently provide our customers a great pinoy dining experience.

Components Yes NO1. Customers

2. Products or Services

3. Markets

4. Technology

5. Concern for survival and

growth profitability

6. Philosophy

7. Self-Concept

8. Concern for public

image

9. Concern for employees

Customers - (Who are the firm’s customers?)

Mang Inasal customers are the pinoy as stated in V/M statement.

Products and Services - (What are the firm’s major product and services?)

Mang Inasal offers Quick Service Restaurant (QSR) for dining experience as

stated in M/V statements.

Markets - (Geographically, where does the firm compete?)

Mang Inasal is a nationwide company. Their emphasis of competition is within

the philippine. Their target market are the filipiino people.

Technology - (Is the firm technologically current?)

Mang Inasal is not technologically current and there’s no mentioned about

technology but the product is served made to order in fastest way because Mang Inasal is

a Quick Service Restaurant.

Concerns for survival, growth, and profitability - (Is the firm committed to growth

and financial soundness)

”We continuously grow our business” The company would conduct its operations very

well to provide the profits, growth which will ensure Siemens’ success in the future.

Philosophy - (What are the firm’s basic values, beliefs, ethical priorities of the firm?)

”A learning organization with dynamic integrated business processes.”

Siemens has a strong sense of responsibility towards society and its environment.

Self - concept - (What is the firm’s major competitive advantage?)

”We provide best-in-class electrical and electronic engineering

solutions, products and services.” As of the moment, Siemens was able to capture large

hospitals in the Philippines to be its primary customers.

Concern for public image - (Is the firm responsive to social, community, and

environmental concerns?)

”We have a strong sense of responsibility towards society and the environment.” Siemens

aims to satisfy its customers and have a sense of responsibility to its environment.

Concern for employees - (Are employees a valuable asset of the firm?)

”To be the preferred employer through an effective people management system“

Siemens makes sure that its employees would be the best in their respective fields. They

also help motivate their employees and give them rewards for their exceptional abilities.

Recommended Mission and Vision (If any)

Chapter III

External Assessment (negative and positive assessment)

a) Key External Forces

i. Political – Legal (Government’s Positions)

(-) Purchasing power of the Filipinos weak because of the

unstableness of the administration. This definitely affects the market

profitability of business.

(+) Rapid increase of population and will increase their market share.

(+) Present but not very significant government regulation.

ii. Economic Trend

(+) There are people willing to pay for the convenience that Mang

Inasal has even if many people are minimizing their expense.

(-) 12% value added tax

(+) Rising consumer awareness on health and safety concerns

(-) Oil Price Hike. The Philippines imports fuel from other countries.

It affects the whole operation of the business.

iii. Social – Cultura

(+) Filipino’s love for food

(-) Changing Preference of Customers

(+) The power of media to the consumers. Mang Inasal has TV

commercials, Magazine and Newspaper Ads and by using well-known personalities for

its advertisement.

(+) Working class has no time to cook, find fast foods for

convenience.

(-) the rise of other restaurants that offering unlimited rice in the

market ex. Tokyo Tokyo and dennis the grill boy are threat it can kill the strategy of

Mang Inasal.

iv.Technological

  (+) Delivery Service within Metro Manila through text and call.

(+) Internet access. Through this you can easily advertise your product

and it is an advantage for Mang Inasal because it has a website.

b) Competitive Analysis – Porter 5 Forces Model

SUBSTITUTES

Any other food products.

SUPPLIERS

INDUSTRY RIVALRY

Tokyo – tokyo, Dennis “The Grill Boy” (Unlimited Rice)

CONSUMERS

Ages 3 – 75 yrs. old Class C and above

(The Primary target of Mang Inasal includes students, professionals, and

those families who like bonding activities)

BARRIERS TO ENTRY

Brand Loyalty, Economies of Scale, and Import Taxes

5 forces of competition Low Moderate high

Competitor

Threat of new entrant

Development of substitute products

Bargaining power of customers

Bargaining power of suppliers

Bargaining Power of Consumers Mang Inasal Philippines Inc. caters to almost

everyone regardless of volume, purpose and location. There are so many branches and it

has established its own reputation that the bargaining power of consumer is weak because

the fast food industry principally dictates what masses eat. The prices for the products

and services set by fast food restaurants has become the standard on how consumers

would want to spend on food. Anything above the price range of fast food joints would

be considered expensive; while anything lower would mean it’s cheap. Most consumers

think that the prices set by the restaurants are reasonable and affordable because they

offer value meals and other pricing strategies. This just goes to show that the consumers

in the fast food industry really do not have much bargaining power as they think they do.

Bargaining Power of Suppliers Most fast food restaurants acquire the raw and

other materials used for their business operations from local suppliers and some

international. Given that the inventory for the food served is crucial in any quick service

restaurant, the suppliers of these inventories greatly affects operations. Mang Inasal or

any QSR cannot operate if there is no food to be served. Evidentially, Mang Inasal

Philippines Inc. over the years developed their own commissary system to eliminate the

relatively strong bargaining power of suppliers in the industry. Other than those people

manufacturing the food, suppliers in this industry can go way back to the agricultural,

meat and poultry farms and packaging companies.

Pressure Substitutes on the Business There are a lot of substitutes for almost

everything nowadays. Fast food chains are not exempted from this because thus the

examples of substitute to the menu that Mang Inasal offers to its consumers. Some of the

substitutes are the instant noodles with several flavorings and other frozen products that

can be bought in local and foreign markets. It is important to have rice and a viand as part

of the meals of the Philippine consumers therefore the threat of substitute for what Mang

Inasal is offering to its consumers is considerably high. Basically, anything that can

sustain or feed the cravings of a person is a viable substitute for fast food.

Entry Barriers Mang Inasal Philippines Inc. is aware that it is the procedure on

how they make their distinct mark with their products that makes them stand out that

their patrons choose them over some other fast food chain. So brand favoritisms of the

consumers are a barrier for them to monopolize the fast food industry. Likewise, the

import tax that Mang Inasal has to pay every time they import their raw materials from

other countries could also affect their business as a whole.

Industry Rivals, Tokyo Tokyo is a leading Japanese QSR chain that presently

operates over 50 branches located in the Philippines. That offering unlimited rice same as

Mang Inasal but they are different in the product line that they are offering in the market.

Aside from Tokyo Tokyo is Dennis The Grill boy, formerly called Pupung and Friends,

this restaurant serves Pinoy comfort such as Liempo, Bangus Belly, Barbeque, Steak, and

other all-time Pinoy favorites.an order of a meal would cost 75php – 125php which is

very affordable considering they are offer unlimited rice.

Industry Analysis

Description of the Fast Food Industry

An overview of the fast food industry highlights availability of meals that serve

the need to eat even during tight work or school schedules, and at very affordable or,

most of the time, cheap prices. Individuals, mostly parents or people who live on their

own, who don’t know how to cook or don’t have time to cook, find fast foods of great

convenience. Some fast food restaurants also offer packaged foods or “take-aways”. The

fast food industry now operates out of convenience stores, food kiosks, supermarkets or

grocery stores, coffee shops, and gas stations. Individuals can now eat their food

anywhere and anytime. Fast food restaurants also try to fit their menus according to the

taste and preference of the masses, take for example Mang Inasal, it barbequed chicken

dish this is what Filipinos like. The rise of fast food restaurants or kiosks has often been

linked with urban development this kind of notion can be typically seen in Filipinos.

“Demographics, consumer tastes, and personal income drive demand. The

profitability of individual companies can vary: while QSRs rely on efficient operations

and high volume sales, FSRs rely on high-margin items and effective marketing. Large

companies have advantages in purchasing, finance, and marketing. Small companies can

offer superior food or service. Restaurants compete with companies that serve meals or

prepared foods, including grocery stores, warehouse clubs, delis, and convenience stores.

In addition, restaurants compete with home cooking.”

The fast food industry in the Philippines is growing bigger and bigger ever since

1980's. In the most recent survey expenditures of dining out of Filipinos (not including

the corporate expenditures) is growing 1520% per annum for the past ten years with 50%

the restaurant industry comes from the fast food industry. Despite the country's low GDP

growth rate last year of 2.69% the fast food industry grew by as much as 5%. (Miranda,

2009)

Key Success Factors in the Industry

In a company such as Mang Inasal, innovation is important because competition

in the fast food industry is very tight. Product innovation is a must as it adds value to the

company since products are being offered to the market for attention, acquisition or

consumption that may satisfy a need or want. In this case product innovation is done to

get the attention of customers and most especially the non-customers of the company so

that they will have a chance to steal some market share of their competitors. As the

saying goes, “the test of the pudding is in the eating.” It is imperative for Mang Inasal,

being in the fast food industry, to offer its customers with good food. They must then

make sure that the taste, which the customers have grown accustomed, should be

maintained and standardized, to keep the customers hooked and coming back for more.

Freshness and quality of ingredients should also be maintained as part of maintaining

high standards with their products. Pricing also is an important to consider given that the

target market of Mang Inasal is considered to be price sensitive. Any sudden and drastic

change in price might push the customers to find other food providers. And in the

industry that Mang Inasal is in, there many others than can provide Mang Inasal

customers with other alternatives. It must then be ensured that products of Mang Inasal

are priced in a way that highlights value at the same time, still affordable to its customers.

Major Industry Contribution

Since Mang Inasal Philippines Inc. is a listed company in the Philippine Stock

Exchange that publicly trades in the stock exchange is not exempt from the erratic

conditions of the stock market every day. The raw materials that are being used and

bought will tend to be more costly if the Philippine peso depreciates. Having many

foreign-owned food corporations being franchised in the Philippines, it can be considered

as a threat to Mang Inasal Philippines Inc., knowing that patronizing foreign goods and

services are one of the qualities most Filipino consumers have today. With a 5.4% growth

in the Philippines’ GDP in 2006 (Goliath Business News, 2007), the 7.4% growth in

2007 (NSCB, 2008) and the 7.3% growth in 2008 (Index Mundi, 2009), Mang Inasal

Philippines Inc. being a popular fast food chain varies and changes its menu periodically

to entice its consumers to patronize their products for the long term. With the culture and

tradition of Filipinos, Mang Inasal is where people celebrate their occasions because of

the reputation Mang Inasal has established on Filipino People which really boosts their

income. As it contributes to lessening the number of unemployment rate in the country

and to cope with the erratic inflation rate that is experienced every day.

Top 3 Players (Unlimited Rice within SM Pampanga)

1. Mang Inasal

2. Dennis the Grill Boy

3. Tokyo tokyo

Chapter IV

Internal Assessment

a. Management (Planning, Organizing, Staffing, Controlling, Motivating,

Organizational Structure)

Edgar J. Sia II

Chairman / CEO

Ferdinand J. Sia

President / COO

As we aspire to make Mang Inasal a globally competitive company that

gives pride and inspiration to every Filipino, with everyone’s cooperation

we will surpass the challenges that come our way and even conquer them

with flying colors!

OPERATIONS

Elmer Hementera

VP - Operations

Operations started the year with the release of the revised Operations

manual for the five basic stations namely kitchen, counter, quality control,

dining and grill. Recently, we released the revised Cash Control Policies,

brought about by the opportunities encountered by the stores in handling

of sales and funds. We are in the continuing process of reinforcing the

knowledge and skills of the management team members and crew on the

“Basics of our Operations” focusing not only on the systems and

procedures embodied in the revised Operations Manual, but on other

aspects of running the business as well. Skills of managers in the

achievement of sales objectives and management of controllable expenses

are now being honed –with store management teams coming up with daily

targets for sales and expenses. How sales targets are achieved, (good

Cycle of Service, GRC concept, etc.) as well as ways to manage expenses,

are the orders of the day. Recently, we have also started teaching the

managers how to compute for the food cost, the biggest expense in the

PnL. Upcoming Operations activities are focused on how to manage food

cost and food cost variance troubleshooting.

COMMISSARY

James V. Dy

VP - Commissary

The Commissary is in a continuous effort to produce and distribute high

quality products to all its branches; thus, a new and bigger branch was put

up in Taguig City with a total floor area of 5,840 square meters. The new

Commissary became fully operational last February 2010 and has a

capacity of processing 30 tons of dressed chicken daily. It has its own

laboratory for product analysis, improvement of existing products as well

as development of new exciting ones on the last quarter of the year. We

will continue to ensure all stores will have their quality raw materials

delivered on time.

TREASURY

Shella A. Sia

EVP – Treasury

The Office of the Treasury is tasked to keep the company in a sound

financial status. It keeps receivables in check and the collections on track.

Currently implementing measures to further improve efficiency in the

treasury system.

FINANCE AND CONTROLLERSHIP

Venancio C. Parcon

VP – Finance

The Finance and Controllership Department is responsible for gathering

financial related reports from various segments of the Company and

prepares consolidated Financial Statements in accordance with applicable

Philippine Financial Reporting Standards. This is in compliance with the

disclosure requirements of the Securities and Exchange Commission. The

head of the department sees to it that well-developed accounting systems

and internal controls are operational and in place. This is because periodic

and timely accounting reports to the board are a major tool for decision

making.

HUMAN RESOURCE

Jess Nemenzo

Corporate HR Manager

The Human Resource Department champions the hopes and aspirations of

its people. It journeys with the organization towards the full realization of

holistic people development. We ensure that our people demonstrate the

proper knowledge, skills and attitude in the performance of the job.

BUSINESS DEVELOPMENT

Marvin Ramos

BDD Head

The BDD or Business Development Department’s creation on January

2009 made a big impact on Mang Inasal’s growing status (number of

stores built, alignment to quality and improvement and creation of new

store designs). From its 100 total stores opened in five years (2003-2008),

a phenomenal achievement was recorded when it opened 100 stores in just

a year (2009) - a mark on history not only in Mang Inasal but in the whole

fast-food industry as well. As BDD is gearing up towards its 300th store in

October of this year (with more than 50 stores already on process and

lined up to open first quarter of next year), growth and success will be

inevitable for Mang Inasal.

MARKETING

Enri Ruiz De Luzuriaga

Marketing Manager

Marketing is developing new strategies and brand direction which will

help Mang Inasal become a leader in innovation, creativity, and customer

relations in the years to come.

“Mang Inasal gears up to go public”

Mang Inasal Philippines Inc. is preparing for its planned Initial Public Offering

(IPO) in the first quarter of 2011 as it remains confident of good business

potential and further expansion. Chairman Edgar Sia II said the public listing

strategy is to “further improve transparency of Mang Inasal where the emphasis is

on good management because of public accountability. “The company, that

opened its first store last Dec. 12, 2003, has tapped Fortman Cline as its financial

advisory firm to handle the preparations for listing with the Philippine Stock

Exchange. He also added that the company, the first of its kind in the Philippine

franchising industry, intends to raise more funds to build more commissaries,

company stores and a permanent headquarters. “The IPO is also a vehicle for

employees and existing franchisees to invest in Mang Inasal so they could benefit

more through dividends,” said the Chairman.

300Th Store opens on October

TRUE to its quest of being the foremost Quick Service Restaurant in the

Philippines, Mang Inasal Philippines Inc. is set to open its 300th store by October

2010.“Most of our expansion now will be in the provinces since we are all over

most of the Metro Manila areas already. The expansion of succeeding stores will

be in the north and south of Luzon and in some parts of Mindanao like Tawi-tawi

and as far as Aparri,” said President Ferdinand Sia. Mang Inasal opened at

Robinson’s Place in Iloilo City last December 12, 2003 and in a span of seven

years, has made a name for itself as the first homegrown fast-food barbecue chain

in the Philippines and the first of its kind in the country’s franchise industry.Mang

Inasal Philippines Inc. is preparing for its planned Initial Public Offering (IPO) in

the first quarter of 2011 as it remains confident of good business potential and

further expansion. Chairman Edgar Sia II said the public listing strategy is to

“further improve transparency of Mang Inasal where the emphasis is on good

management because of public accountability. “The company, that opened its first

store last Dec. 12, 2003, has tapped Fortman Cline as its financial advisory firm to

handle the preparations for listing with the Philippine Stock Exchange. He also

added that the company, the first of its kind in the Philippine franchising industry,

intends to raise more funds to build more commissaries, company stores and a

permanent headquarters. “The IPO is also a vehicle for employees and existing

franchisees to invest in Mang Inasal so they could benefit more through

dividends,” said the Chairman.

New commissary in Taguig now fully operational

The new Mang Inasal commissary at Manalac Industrial Estate in Bagumbayan,

Taguig is now fully operational, announced VP - Commissary James V. Dy.Dy

further added that the new Taguig Commissary is compliant with Triple A meat

processing plant standards.The Taguig commissary has a state-of-the-art testing

laboratory and a modern metal detectorconveyor machine to check meat

quality.Sia also said that another commissary is being constructed in Toril, Davao

City to supply Mang Inasal’s Mindanao requirements.The Davao commissary will

be operational in September this year and is expected to also augment the needs of

Mang Inasal’s Luzon stores.

The new commissary in Taguig City has a total floor area of 5,840 square meters.

It became fully operational on February 2010 and has a daily processing capacity

of 30 tons of dressed chicken. It also has its own laboratory for product analysis,

improvement of existing products, as well as development of new ones.

We Deliver!

Dial 733-1111 Within Metro Manila

Starting middle of September this year, Metro Manila residents can start dialing

the centralized number 733-1111 and give their Mang Inasal orders for delivery

anywhere in the metropolis. There are 32 strategically located stores that serve as

delivery hubs for motorcycle riding delivery men. According to Mang Inasal

President Ferdinand Sia, the delivery system is being serviced by Pilipinas

Teleserve Inc., one of the Philippines’ leading service providers for fast food

chain deliveries. The President said the centralized number system is to make the

delivery of Mang Inasal orders faster and reliable as part of the company’s service

values that include excellent customer service and market leadership. There are

several marketing activations in line to hype our new delivery program. It is

expected to take 2 to 3 months for Mang Inasal to get a good grasp of the delivery

market in Metro Manila.

Mang Inasal 1st Franchise Conference set in 2011

The 1st Mang Inasal Franchise Conference will be scheduled on the first quarter

of 2011 at least a month before the company goes public and gives its Initial

Public Offering (IPO).President Ferdinand Sia said there are many details to be

discussed during the conference on the direction of the company and ways to

further improve the system.

VP upbeat over training series

Gil Pangilinan Abela Jr, Mang Inasal’s new Vice President for Training since

March this year, is upbeat over the training series that comes with the opening of

the company’s new training center.Formerly the company’s organizational

development consultant in 2003, Abela is now setting up Mang Inasal’s Academy

of Learning with customized programs for the Managing Directors, Management

Team, Crew Development and Support Units or departments. “The academy is

hoped to revolutionize the training department of the organization,” said

Abela.Abela is a Psychology graduate of the University of the Philippines in

Cebu and has finished courses on the following institutes : Rizal Youth

Leadership Training Institute, Purposeful Stewardship Institute, Stephen Covey’s

Institute (7 Habits of Highly Effective People ),  Human Potential and other

related fields. After retiring early as an Opening Team Manager for Jollibee

(Freemont) Foods Corporation that facilitated the opening of 14 outlets in Visayas

and Mindanao, he started his consulting and training outfit by August 2000  called

Koncepts and More. Among his other short term training and consulting clients in

the Service Industry are Thirsty Shakes and Juices – Cebu ( 100 branches ), Fancy

(Cakes, Crepes and Coffee ) – Tomas Morato, Quezon City, Laguna Group of

Companies ( Laguna Catering, Laguna Cafe, Laguna Garden, Laguna Iloilo and

Lemon Grass ), Kublai Khan – Cebu, Jollibee Foods Corporation Visayas and

Mindanao  Stores, Badian Island Resort and Spa, Bantayan Island Resorts

Association, UnileverVismin Sales Team and others.

New training center in Tramo now open

Expect more improvements in Mang Inasal’s services as staff and crew get trained

and certified in the new training center that is now operational at the former

commissary in Tramo, Metro Manila. The reconstruction of the commissary into a

training center started in March 2010 and includes a mock-up of a typical Mang

Inasal store. President Ferdinand Sia said the training center is part of the

company’s thrust in improving operations, services and food quality. “Existing

stores will be required to have their store employees, cashiers, dealers and dining

crew trained and certified. This is a certification program for all who work with

Mang Inasal,” said the President. The certification program for employees will

soon become a requirement prior to the opening of any new Mang Inasal store.

The Mang Inasal Training Academy at the former commissary in Tramo, Manila,

aims to further strengthen the learning of company employees with complete

kitchen set-up, facilities and training rooms.

De Luzuriaga is new marketing head

Mang Inasal has a new marketing head in the person of Enrique Ruiz de

Luzuriaga who began office last June 26, 2010.De Luzuriaga comes from the

advertising industry. He holds a master’s degree in Integrated Marketing from

Golden Gate University in San Francisco, USA. He has worked for ad agencies,

call centers, blog networks, digital agencies, and restaurants. He has recently

returned from the US to work for Mang Inasal. His favorite saying: I love my job.

‘green gold’ improves economy of a small town

MAASIN, Iloilo – In the late 90s, there was such a glut of bamboos in the small

Iloilo town of Maasin that the mayor decided to turn it into a tourism attraction

with a bamboo-themed festival called Tultugan.Even though the festival’s

popularity picked up, it did not make much of a dent on the over-supply to such a

point that it was the buyers who were dictating the prices, much to the

discouragement of the Maasin farmers spread out in 50 barangays. By 2007, all

this was a thing of the past when what used to be grass taken for granted is now a

precious commodity called “green gold” – thanks to the expansion of Mang

Inasal, the determination of Maasin Mayor Mariano Malones Sr., and the industry

of more than 10 barangays supplying the bamboo tinik variety.

Supplying bamboo sticks

Every week, Iloilo Kawayan Marketing (IKM) delivers an equivalent of a

thousand bamboo poles coming from six contractors who in turn employ more

than 180 households to cut and process the three types of bamboo barbecue sticks

used for barbecuing chicken legs and other parts, and the round and thin ones for

the pork barbecue. The “green gold” is a blessing for Maasin’s poor families that

comprise majority of the town’s total population of 40,000 who used to rely on

subsistence farming. The first supplier of IKM, 55-year-old Marina Molina, from

Brgy. Inabasan was able to make two children graduate from college all because

of the income that comes from the “green gold”. ”We are thankful for the

opportunities that Mang Inasal has given us; they have helped so many families,”

says Molina who earns a profit of P10,000 or more a week from the sales of

bamboo barbecue sticks alone. Marina and her fellow contractors earn a

commission of at least a peso per stick. The rest is used to pay for the bamboos

and the workers. Marina has shared her blessings to friends and relatives like

Marilou Rote and Adoracion Manda who started being bamboo contractors only

in July this year as Mang Inasal’s expansion has created a need for more barbecue

sticks. “The income has helped us a lot. We used to plant and sell vegetables and

have other sidelines just to survive,” says Marilou, A 34-year-old mother of four

from Brgy. Nasaka.

One opportunity begets another

It was in 2005 when Mayor Malones began his bamboo barbecue stick business in

a bid to help Maasin’s farmers deal with the over-supply of bamboos. By 2006,

IKM was already supplying bamboo chopsticks to several Chinese restaurants in

Manila.Mayor Malones saw an opportunity to supply Mang Inasal in 2007 when

he noticed that the barbecue chain had only one kind of barbecue stick and offered

to supply it.What happened next was a trial and error process on top of a series of

trainings until the bamboo workers had perfected the method of coming up with

barbecue sticks that were polished and mould-free. IKM has 40 workers and four

sets of machines worth several millions that work on the cutting, splitting, slicing,

drying and polishing of the bamboo poles. Even though 4,000 hectares of

Maasin’s total land area of 17,000 hectares is planted to the bamboo tinik variety

alone – it could supply only 70 percent of Mang Inasal’s barbecue sticks, forcing

IKM to get other bamboos from nearby towns.

Expanding with Mang Inasal

At the IKM factory in Brgy. Naslo which happens to be beside the house of

Mayor Malones, the bamboo suppliers led by Marina discuss the Mayor’s request

for improved workmanship after he noticed that some bamboo sticks were not up

to standard. “We are also doing our best to keep up with Mang Inasal’s brand of

quality services and with their expansion, we will also look for more bamboo

farmers and suppliers and sustain those who are already working with us,” says

Mayor Malones. IKM’s work of improving the lives of farmers has been noticed

by the Department of Trade and Industry that has recognized the company as a

finalist for the Outstanding OTOP (One Town One Product) Awards last Oct. 2,

2009.However, the greater source of pride for Mayor Malones and Maasin’s

bamboo suppliers is their being a major partner of the country’s leading fast food

barbecue chain that has remained loyal to them.

“MANG INASAL FOREST”

In this historic step, MANG INASAL PHILIPPINES, INC. developed a project

dubbed as the “MANG INASAL FOREST”. The project is located at Brgy.

Millan, Sibunag, Guimaras and has a total land area of 19.7 hectares. The

company acquired the property last January 2010.This project will educate people

to be sustainable by taking care of the environment. This will be a huge project by

Mang Inasal which is always committed towards a clean environment and better

livelihood for the Filipino people.

TOP TAXPAYER AWARD

EDGAR J. SIA II, Chairman/CEO of Mang Inasal Philippines, Inc. was awarded

the 2008 top individual taxpayer by the Bureau of Internal Revenue (BIR),

Revenue District Office no. 74 of Iloilo City. BIR acknowledge the Chairman for

his significant contribution and valuable cooperation in the implementation of

various programs of the agency, faithful observance of tax rules and regulations

and conscientious payment of taxes to the government.Edgar J. Sia II was also

recently awarded as one of the top business taxpayers of the City of Iloilo.

Oracle helps Mang Inasal’s efficiency

By aquiring an Enterprise Resource Planning software (ERP) of Oracle thru its

Philippine affiliate, Active Business Solutions, Mang Inasal is poised for business

dominance in the fast food industry. Oracle is the world’s “most complete, open,

and integrated business software and hardware systems, with more than 370,000

customers” globally. Last December 2009, Chairman Edgar Sia II signed a

contract with the company’s Philippine representatives to use Oracle’s ERP

software. Oracle describes itself as “the only vendor able to offer a complete

technology stack in which every layer is integrated to work together as a single

system. In addition, Oracle’s open architecture and multiple operating-system

options gives our customers unmatched benefits from industry-leading products,

including excellent system availability, scalability, energy efficiency, powerful

performance, and low total cost of ownership.

ORACLE AND MANG INASAL begins its partnership with Mang Inasal

Chairman Edgar Sia II recently signing a contract together with representatives

of Oracle in the Philippines led by Abigail Yap-Ang, Geovan Ang and Stef

Villamejor.

Mang Inasal Chairman Edgar Sia II signs the contract with Jose Catequista of

Manabat Sanagustin & Co. For the year 2010 accounting period, Mang Inasal

Philippines Inc. has engaged the external audit service of certified public

accountants Manabat Sanagustin & Co. The highly respected accounting firm is a

member firm of the KPMG network of independent member firms affiliated with

KPMG International Cooperative (“KPMG International”), a Swiss entity. It is

presently “the fastest growing professional service provider in the field of audit,

tax and advisory services.”

Franchisee Testimony

MID Investment Pays Off (Arian Chua and Mang Inasal)

BACOLOD City -- Owning a brand new car is no big deal for most moneyed men

but for young businessman Arian Chua, driving the silver Toyota Land Cruiser he

bought this year gives him a different kind of satisfaction and happiness. It’s not

just a toy for the big boys. The vehicle tells the story of how the 30-year-old

Marketing graduate of La Salle Bacolod would not have been around buying his

second car, traveling several times abroad and constructing his dream house were

it not for Mang Inasal helping him to do business just in the nick of time. A year

after graduating from La Salle Bacolod in 2001, Arian took a care-giving course

with hopes of working abroad the following year but he was twice denied his visa

in 2002.Thinking of his options, Arian planned to get into the restaurant business

but was not sure exactly where to begin.

Believing in Mang Inasal’s Potential

Franchising was just a vision then for the Mang Inasal management but it knew it

was serious about the strategy and planned to be the country’s first fast-food

barbecue chain with 500 stores nationwide by 2012.It may be because of the

seemingly wild vision of Mang Inasal or the need to invest but either way, Arian

checked out the possibility of putting up Mang Inasal restaurants in Bacolod City

in 2003. “Friends and associates were telling me I better think twice of investing

on Mang Inasal because Bacolod is Inasal country and it might not click,” says

Arian. Not one to be impulsive, Arian observed how Mang Inasal did business in

its newly opened branches in the cities of Davao and Iloilo, checking sales and

feedback and found it to be lucrative and systematic. Together with his partners

Tiffany Ang, younger brother Richie Chua, and friend Michael Javelosa as major

stockholders, they formed the Bacolod Prime Food Corporation. They then

bought a Mang Inasal franchise and opened Bacolod City’s first Mang Inasal

restaurant on March 2006 in Libertad with the second one opening at the East

Block on October of the same year. In 2007, Bacolod Prime Food Corporation

opened its 3rd Mang Inasal branch at Gaisano Mall, followed by three more

branches in 2008 and another one the following year.

Good sales, more stores

In the same year Arian and his partners were opening their first store in Bacolod,

they were also setting up shop in Cagayan de Oro and now counts five branches

in CDO and one in nearby Iligan City. Arian says they were able to put up that

many branches because the sales is good – as in the case of its SM City Branch in

Bacolod where it took only a year and three months to pay off franchise and

construction expenses.Every success story comes with hard work. Arian has

experienced mopping floors and even doing the asal work himself when there is

manpower shortage.These days, his brother Richie is in-charge of the office and

warehouse in Bacolod’s North Drive while Tiffany deals with the finances.

Meantime, things are looking up. His dream house from Mang Inasal earnings

begins construction this September in Ayala Land and he and his partners are

negotiating the construction of more branches in downtown Bacolod City.“I am

grateful to Injap and Mang Inasal for the good break. I am impressed with how

the company has reached its dreams and has more than exceeded expectations,”

says Arian.Arian gamely poses beside his P5.3 million silver, all options Toyota

Land Cruiser in front of the Mang Inasal SM City Bacolod branch holding the

now-famous barbecued chicken. The vehicle’s “MID” plate number stands for

Mang Inasal Decos, a tribute to the two franchise businesses that has made him a

multi-millionaire. The thumbs up is a tribute to that one moment in his life when

he decided to take the risk and venture into a business that everybody thought

would fail.

Employee Testimony

Mang Inasal’s First Employee Intends to Stay Long (Bobby Calumpit)

ILOILO City – He was there doing trouble shooting when Mang Inasal first

opened at Robinson’s Place Iloilo last Dec. 12, 2003 and intends to remain with

the company he has grown to love until he reaches retirement age. Bobby

Calumpita, 45, is Mang Inasal’s first and longest staying employee to date. Such

is his loyalty, good work ethic and competence at troubleshooting. Bobby, now

the branch manager of Mang Inasal at Times Square in Gen. Luna St., Iloilo City,

remembers his baptism of fire on opening day when the store’s duct system acted

up and on top of that, customers were complaining about the now-accepted Mang

Inasal system of lining up to order and pay. “We had to go ‘open air’ until the

ductwork was fixed and patiently explain to customers about the new system.

They had trouble adjusting because in other chicken houses, waiters would go to

their tables and get their orders,” explained Bobby, a graduate of Marine

Engineering from the University of Iloilo. As the store manager, Bobby and his

17-member crew patiently wooed customers with quick and pleasant service that

they kept coming back until word of mouth spread about “that unique chicken

barbecue restaurant at Rob.

”Back to the same boss”

Prior to his employment as Mang Inasal’s first store manager, Bobby was a dining

supervisor and then banquet manager at Four-Season Hotel, Chairman Sia’s other

business that he started with partners when he was only 19 years old. In 2001, he

asked permission to apply for work in a passenger ship but clearly remembers the

young Sia telling him to “come back if things don’t work out. “Bobby must have

been destined to work for Mang Inasal because he went home in October 2003

and so happened to pass by at Robinson’s while the store was ongoing

construction. “Sir Edgar saw me and asked if I wanted to work as his store

manager and that was how it all started,” says Bobby who later trained the staff

and crew of other Mang Inasal branches .He stayed for three years and eight

months at the first store and in-between that, he would go to Mang Inasal’s

second branch in Roxas City, Capiz to prepare the crew and store in time for its

opening on July 7, 2004. Demand for Mang Inasal in Iloilo had also increased that

in the next five months, it opened its third branch in Mary Mart Mall on Dec. 1,

2004.The other stores he has helped put in good condition are the Smallville Iloilo

Branch and the first Deco’s Original La Paz Batchoy Branch in this city’s La

Salette Bldg. in Valeria Street that opened on Aug. 25, 2007.

The Binondo challenge

Helping new stores with their birthing pains is nothing compared to what he

experienced as a store manager in one of Mang Inasal’s Binondo branch in April

2008, says Bobby.At Binondo, competition was stiff as two major Filipino

fastfood chains were all over the place. “The residents there told me that the

challenge was to stay for more than a year,” says Bobby, noting that Binondo has

many senior citizens. He worked his manager’s charm on the senior citizens who

liked him not only for the discounts but for his friendly approach and the fact that

he would greet them by name. Bobby also did a lot of telemarketing and gave out

leaflets as well as visiting other establishments, urging them to try Mang

Inasal.To this day, the Mang Inasal Binondo branch has uptrend sales despite

people saying otherwise at the beginning and Bobby remains satisfied for winning

the “Binondo Challenge” in the six months that he stayed there.

All in the family

In the nearly seven years that he has been employed with Mang Inasal, Bobby has

been able to fend for his family with the eldest of his five children graduating

with a degree in Management Accounting from the University of Iloilo and now

working with Chairman Sia’s Injap Investments Inc. as purchaser. It would not be

surprising if his children worked with Mang Inasal for this loyal employee only

has words of appreciation for the company and his boss. “Sir Edgar has a good

leadership style, all his businesses are successful and he treats his people well,”

says Bobby who remains a hands-on manager at Mang Inasal Times Square as he

was in the first store at Robinson’s.

Financial Ratios

Mang Inasal Philippine Inc.

Ratios Year 1 (2008) Year 2 (2009)Quick Ratio Current

Assets- InventoryCurrent

Liabilities

4,563,987-2,994,2881,598,078

0.98 5,240,961-3,286,5421,721,861

1.1

Inventory Turnover

SalesInventory

7,842,2732,994,288

2.6 8,628,7423,286,542

2.6

Fixed Assets Turnover

SalesFix Assets

7,842,8731,075,830

7.29 8,628,7421,075,830

4.16

Total Assets Turnover

SalesTotal assets

7,842,8733,686,000

2.13 8,628,7423,989,000

2.16

* Average Payment Period(Days)

Accounts Payable

Ave. Purchases/day

2,994,28817,000

176* 3,018,76619,000

159*

* AverageCollection

Period(Days)

Accounts Receivable

Sales per day

3,921,436.5021,786

180* 4,899,60131,050

158*

Gross Profit Margin

Sales-CGSSales

4,848,5857,842,873

0.62 5,332,5638,628,742

0.62

Operating Profit Margin

EBITSales

1,078,9687,842,873

0.14 875,7428,628,742

0.10

Net Profit Margin

Net IncomeSales

733,6987,842,873

0.09 875,3078,628,742

0.10

Return on Total Assets

Net IncomeTotal Assets

733,6983,686,000

0.20 875,3073,989,000

0.22

Liquidity

Mang Inasal Philippine Inc. liquidity is doing well since all payable and receivable transactions are made in cash. The Quick Ratio is close to 1.0 on year2005 and 1.1 on year 2006, which evaluates the liquidity of the business if ever inventory cannot be easily converted to cash.

Leverage

The business has no long-term debt. That assures the firms profit is not taken by financing interest costs.

Activity

The only transaction that is not paid with cash is the credit card purchases by the customers. The amount of receivables from the credit card company was automatically placed in the bank account of the business within 3 days. The longest collection period was within 3 days. The resources of the business is said to be used effectively since inventory turnover last for 2-3 days and it utilizes and maximize the business ability to generate more sales and profit. The turnover rate indicates a fast moving inventory.

Profitability

The business is earning income from the transactions and generated returns from its sales, assets and investments. The management is effectively running the company and utilizing its assets.

(*) – The receivables (in any amount) are still dependent on the 3-day payment of the credit card company to the business.

Mang Inasal Philippine Inc.

Income Statement

Year-to-DateAmount

(2008) (2009)

Net SalesGross Sales 7,882,278 8,670,506Less: Sales Discount 39,405 41,764Net Sales 7,842,873 8,628,742Less: Cost of SalesDrinksInventory beg. 7,843 8,629Purchases 401,745 598,265Total 486,947 604,012Less: Inventory End. 12,253 18,781Cost of Drinks Sold 397,336 517,725FoodsInventory beg. 23,511 19,763Purchases 2,629,230 2,890,629Total 2,814,313 3,097,718Less: Inventory End. 28,149 31,144Cost of Food Sold 2,624,592 3,010,984Cost of Sale Bef. Free Item 3,021,927 3,332,066Free Item (27,639) (30,679)Cost of Sale After Free Item 2,994,288 3,291,387Gross Profit 4,848,585 5,332,563Less: Operating ExpensesRoyalty Fee 287,388 319,111Salaries & Bonuses-Sales 1,181,867 1,302,940Salaries & Bonuses-Admin. 6,440 7,286Advertising 20,443 16,886Communication 24,190 23,684Other Employee Costs 49,787 43,289SSS/Phil health exp 38,582 39,176Insurance - -Kitchen Utensils 89,787 81,342Miscellaneous 1,253 1,570Office Supplies 26,082 24,365Professional fee 32,750 33,125Repairs 14,981 10,764Store Supplies 496,061 500,040Taxes & Licenses 49,074 49,821Travel 11,191 12,078Rentals:

Basic Rent 299,485 299,485Percentage Rent 452,789 599,796Utilities:Common Area 61,447 61,496Aircon 65,207 66,423Electricity 276,538 235,798Water 23,982 24,641Other Operating Costs:Ice 36,326 39,999Gas 162,437 190,231Janitorial 61,530 62,000Total Operating Expenses 3,769,617 4,045,344Net Income before Depreciation 1,078,968 1,287,21732% tax 345,269 411,909Net Income after tax 733,698 875,307

Chapter V

External Factor Evaluation (EFE matrix)

Critical success factors Weight Rating Weighted score

Opportunities

1.Local Culture and Tradition 0.12 4 0.48

2.Cultural Diversity 0.08 2 0.16

3.Philippines – Agricultural Nation 0.10 2 0.20

4.New Brand Acquisitions 0.11 4 0.44

5.Urban Development 0.10 3.5 0.35

Threats

1. Foreign-owned and local SMEs 0.10 3 0.30

2. Global Financial Crisis 0.09 3 0.27

3. Increase in oil prices 0.10 2 0.20

4. Sanitary Issues Standards / Health and Safety 0.11 3 0.33

5. Political Instability 0.09 3 0.27

TOTAL 1.0 3

1= major weakness, 2= minor weakness, 3= minor strength, 4= major strength

Summary of Key Opportunities and Threats

Opportunities

Local culture and traditions

Every Filipino, regardless of race, gender, age, and social status, has a dream to

be able to consume Mang Inasal products at least once in their lifetime. It has been

known that Filipinos are very family-oriented in the sense that almost every occasion

should be celebrated as long as they have the means and capability. Having a family-

oriented culture, Filipino consumers are naturally thrifty. Surely they would want to

maximize the value of their money but at the same time the food service that they are to

receive should be worth the price that is why Mang Inasal would always be in

everybody’s lists because of its adherence to this Filipino trait.

Cultural diversity

Since there are more and more Filipinos, Mang Inasal can leverage on this

opportunity to expand and serve filipino and foreign consumers as well. Wherever

Filipinos migrate surely there would be Filipinos offering Filipino cuisines that Mang

Inasal can consider as their potential markets in a nationwide setting. Mang Inasal could

likewise benefit from the local or foreign consumers that would surely be curious enough

to try and consume Mang Inasal products as well.

Philippines - an agricultural nation

Another opportunity that Mang Inasal Philippines Inc. has is the fact that the

Philippines still remains to be an agricultural nation where it can serve as a source for the

raw materials that Mang Inasal uses for its business. Instead of having every ingredients,

flavorings, and other materials imported, it is a given that the Philippines is abundant

with its natural resources. Mang Inasal could instead use this and instead focus on

maintaining an international standard in terms of its quality especially that Mang Inasal

has the means to do so.

Brand Acquisitions

Local Brands willing to be Bought Mang Inasal Philippines Inc. has the capability

to acquire and merge with other companies both local and international brands. There

might be some companies out there that would need more capital that Mang Inasal can

easily provide. Companies with small capital would find it hard to operate given the

thrifty financial environment the global crisis has caused. On the part of Mang Inasal, it

would further improve its reputation and its credibility when it comes to offering its food

services to consumers from all walks of life. Not only will Mang Inasal live up to its goal

as a service provider in the food industry but they would also be able to contribute to

giving more jobs to the workforce who are currently unemployed and affected by the

financial crisis that has been going on for quite some time. This way, not only will Mang

Inasal Philippines Inc. expand and excel in its business operations but could contribute to

lessening the unemployment rate that the Philippines have right now.

Urban Development

With the recent growth in the real estate industry in the country, more and more

provinces and rural areas in the country are starting to be developed and urbanized. More

and more condominiums and villages are being constructed in various provinces of the

country. This has started a sort of migration of Filipinos families to the provinces or

countryside. This would mean more new areas for Mang Inasal to conquer and more

market to serve. This would then provide Mang Inasal with another opportunity to

expand its network of stores to more areas in the Philippines, making their presence even

more felt in the Philippines. This would also increase their market share in areas that still

doesn’t have a Mang Inasal store.

Threats

Threats Foreign-owned and local SMEs

There are so many foreign-owned companies and local small and medium sized

enterprises in the same industry that tries to penetrate the Filipino market every day. Just

like what Mang Inasal offers to its potential consumers, the foreign-owned corporation

and local SMEs tries to leverage on the threats and weakness of Mang Inasal so there will

really be a tough competition. This is a threat to Mang Inasal because this means that

they cannot afford to be lousy or commit grave mistakes such as messing up their

reputation and committing health and safety issues especially that they are in the food

industry because the competitors might just take over and lead. Thus, being the market

leader means everyone out there will try to beat you or work around you.

Global Financial Crisis Experiencing worldwide financial crisis is one of the

threats that every company regardless of chosen industries or size of enterprise has to

deal with. Mang Inasal is not exempt from this threat as this can affect the company

which can contribute to their loss in sales if they do not differentiate their products

enough for consumers to really choose them over so many substitutes that are out there in

the local and international market depending on their location.

Increase in oil prices. Another threat would be the erratic crude prices that always

happen in the Philippines as well as other parts of the world. This is because every time

oil product prices increase the tendency is to have a domino-effect on the succeeding

materials and products that will be produced or served by the different business

industries. That is why Mang Inasal should be able to deal with this threat in a positive

way like to do something like backward integration so as to lessen unnecessary costs to

still be able to maximize what they can in the midst of erratic oil prices throughout the

country.

Sanitary Issues Standards / Health and Safety Major Issues arise when sanitary

standards and health and safety issues are involved especially that Mang Inasal is in the

food industry that is part of everyone’s basic needs. It is a threat to Mang Inasal

Philippines Inc. because they cannot allow even minor issues to happen especially if it is

within their control because this can affect the loyalty and sales of Mang Inasal

Philippines Inc. as a whole. Quality products and services should be maintained to avoid

sanitary standards issues.

Political Instability in the Country Another major threat would be the political

instability of the country now that we have new government, there are so many things

that could still happen. Witnessing the unstable status of the government in general with

all the inhumane things happening, this is a threat to Mang Inasal Philippines Inc.

because it would scare potential investors and would be hesitant to allow expansion of

Mang Inasal Philippines Inc. into their respective places. It is a given that if there is

political instability, the economy will be unstable.

Internal Factor Evaluation (IFE Matrix)

Critical success factors Weight Rating Weighted score

Strengths

1. Endorsements 0.12 4.0 0.48

2. Large Target Market 0.15 4.0 0.60

3. Market leader in Barbeque fast food chain 0.13 4.0 0.52

4. Accessibility 0.10 3.0 0.30

5. Strong Commissary System 0.15 3.0 0.45

Weakness

1. Filipino Culture 0.05 1.0 0.05

2. Unhealthy food 0.08 2.0 0.16

3 Brands under the Mang Inasal 0.10 2.0 0.20

4. Commissary struggles 0.07 2.0 0.14

5. Lack Research for other countries 0.05 1.0 0.05

Total 1.00 2.95

1= major weakness, 2= minor weakness, 3= minor strength, 4= major strength

Summary of Key Strength and Weaknesses

Strengths

Endorsements

Mang Inasal makes itself known through all the promotional tools possible, from

TV commercials, radio jingles, posters, print ads and billboards Mang Inasal makes sure

that it makes itself present to the masses. It has become a well-known fact that Jollibee

invests on actors, actresses and singers to endorse them; money is not an object if it could

bring about bigger sales to the company. Mang Inasal wishes for the masses to retain the

catchy jingles and commercials it presents, bringing more customers to the fast food

chains thus increasing profit for the company.

Large Target Market

Mang Inasal presents itself as a product to people from a young age of 3 till as old

as 70, this way it widens its target market giving the company an edge over its

competitors for its store accommodates a large group of people making it more enticing

to visit and patronize. Since it caters to a large group of people, it gives the store a greater

opportunity to earn more and increase the number of consumers that sets it apart from all

the other fast food chains.

Market leader in Barbeque fast food chain

Mang Inasal became the largest barbeque fast food chain in the Philippines by

being accessible by putting up many outlets all throughout the Philippines, through its

affordability, and by offering chicken, pork barbeque and other Filipino style products

that were suited according to Pinoy taste.

Accessibility

Mang Inasal has widened its horizon placing its stores strategically, letting its

customers access their stores with convenience. Having hundreds of branches across the

country, finding the nearest Mang Inasal store wouldn’t be such a burden. Having high

visibility It will always be an option for consumers to dine-in and enjoy the service that

Mang Inasal has to offer.

Strong Commissary System

Mang Inasal numerous branches won’t be able to serve its consumers in a high

quality manner as how it does now if not for its commissary system, making sure that

each branch receives the supply it needs daily. Having commissary that works 24/7, it

assures each branch receives the ingredients needed to serve its hundreds of customers

nationwide. Having an award winning commissary system, how else can Man Inasal

system go wrong?

Weaknesses

Filipino Culture

Being a locally developed company, Mang Inasal has accustomed its products to

the liking and culture of the Filipinos; this is what sets it apart from other fast food chains

that go in and out of the country. Mang Inasal is a big hit to the Filipino people because

the taste and service it caters is concentrated to how Filipinos are used to and how they

want to be served. But since Mang Inasal is expanding nationwide, their distinct products

and services may not be as attracting as it is in the iloilo causing a big problem to the

company especially regarding its sales.

Unhealthy Fast Food

Mang Inasal indeed serves meals that are tasty and affordable that it attracts

customers daily but as the market evolves, the wants of the people also change

indefinitely and today people are starting to get conscious of what they intake and how it

would affect their health. Since Mang Inasal does not label the food or meals they serve,

it gives the consumers a sense of doubt in purchasing their products; and even if the

consumers do purchase, the consistency and frequency of which is never certain.

Brands under the Mang Inasal

In the past years, Mang Inasal Philippines Inc. has spent of its resources acquiring

several types of ice cream businesses in the country. In the country, 2 various ice cream

brands are under the Mang Inasal Network of stores, namely Selecta ice cream and Pinoy

Sorbetes. Though this would mean more profit with more brands, competition among

these brands is also a reality. Aside from offering more options, these also pose a

dilemma, as costumers choose which to eat. Thus gaining more market share from taking

from another.

Commissary struggles

Truly Mang Inasal commissary in the country works at the top of its game but as

Mang Inasal expands its horizon to other neighboring provinces, constraints will surely

be faced. The company has no capacity to maintain this kind of system in every branch in

order to supply ingredients 24/7 as how they do in the Iloilo.

Lack of in depth planning and research in global expansion

Being the market leader in Barbeque fast food chain, Mang Inasal tried to expand

overseas, but failed to replicate its success in the foreign markets. This is probably

because it tries to offer Pinoystyle food into the foreign market or the company has

already established its local Filipino taste that it cannot easily adopt to people of other

countries.

Competitive Profile Matrix (CPM)

Mang Inasal Tokyo-tokyo Dennis

Critical Success Factors Weight Rating Score Rating Score Rating Score

Advertising 0.10 4 0.30 3 0.30 2 0.2

Product Quality (Taste) 0.15 4 0.60 3 0.45 3 0.45

Price Competitiveness 0.15 4 0.60 4 0.60 3 0.45

Service 0.10 3 0.30 3 0.30 3 0.3

New Product Innovations 0.10 4 0.40 4 0.40 2 0.2

Financial Position 0.05 4 0.20 3 0.15 2 0.1

Customer Loyalty 0.15 4 0.60 3 0.45 2 0.3

Global Expansion 0.10 3 0.30 2 0.20 3 0.3

Market Share 0.10 4 0.40 3 0.30 1 0.1

Total 1.00 3.7 3.15 2.4

1= major weakness, 2= minor weakness, 3= minor strength, 4= major strength

Marketing is developing new strategies and brand direction which will help Mang

Inasal become a leader in innovation, creativity, and customer relations in the years to

come by the use of the most basic strategy in advertising the brand: Pinoy Advertising.

Despite how Americanized the modern culture of the Filipinos was becoming, the brand

maintained addressing its target market using local messages. As Mang Inasal expanded

to the fast food chain that it is now, its target market also grew, serving Pinoy Palamig ice

cream and Pinoy and Keso Burger for kids as young as 3 to grandparents as old as 79;

Mang Inasal is successful in enhancing their stores to serve a big age group and fulfilling

their needs and expectations of the their favorite fast food chain. Mang Inasal has done a

good job in promoting its stores in all possible ways; may it be in billboards, radio ads, tv

ads, posters or even flyers. This was the time they launched the “Unlimited Rice! On all

paborito meals” campaign. It’s as if everywhere you go and everywhere you look, Mang

Inasal always has its ways on showing itself to you.

As for its prices, it is considered affordable considering Class C and above can

avail of the food and meals that they offer; targeting a big scale of the population; Mang

Inasal just secured itself to as much sales that they wish to achieve.

As for promos, Mang Inasal has considered this as to magnet their customers,

may it be the birthday pain all celebrations, value meals or their delivery service within

metro manila; the company indeed have entered all the possible service it can offer its

consumers to ensure their loyalty. Mang Inasal has indeed used all its resources to

capture their customers and be able to serve to their expectations.

Operations Jollibee has over a hundred branches nationwide; it truly has made its mark in

the market nationwide and yet the number does not stop Mang Inasal to continue

increasing it locally. They target that by 2020 they would have put up thousand stores

already. It has also been said that by the end of 2011, Mang Inasal has yet again

expanded its name in different places in country, adding more branches to serve the

Filipino people from other races that have been transformed into liking the unique service

that Mang Inasal offers. Seeing how driven Mang Inasal is and having so much potential,

it won’t be such a dream for the company to reach its target given that every year the

company just grows and grows.

As mentioned earlier, the company uses a commissary system that ensures the

quality of the products being sold in the local stores. This system does not only guarantee

quality of product, but also the timing of the delivery of Mang Inasal products. A

professionally staffed Technical Services Team supports the maintenance of an

internationally accepted quality management system that further ensures the quality and

safety of the commissary manufactured food products. High caliber teams from

Engineering, Human Resources, Information Management, Finance and Accounting

likewise provide support to the Manufacturing and Logistics operations of the

Commissary. The key to handling any complex commissary operations is being able to

use automation, computerization and continuous improvement in manufacturing

equipment and processes. Mang Inasal automated operations not only cut production time

and ensure consistent quality from batch to batch but also ensures food safety by

minimizing handling and maintaining the highest standards of cleanliness.

Human Resources Mang Inasal sees that their employees play a big role in

sustaining their spot as one of the best fast-food chain in the country. Having this in

mind, they take it as a big test in coming up with the best employees that will serve their

thousands of customers. The VP, said, “Our challenge is how to provide the requirements

of the market. We’re in the food business and people’s eating habits are changing. Before

everybody thought that learning how to cook was an important survival skill, but today,

learning how to cook is no longer considered by most young people as necessary because

you can already go out. So the fast food industry is really providing the need. And there

is a need to fulfill that particular human need easily.” Mang Inasal employees evolve

depending on its customers because the company tries to cater and the dynamic needs

and wants of the consumers and eventually tries to make them loyal customers.

Mang Inasal success could be attributed to its strict adherence to its high

standards, which can be summarized into “F.S.C.” Mang Inasal believed that every food

(F) served to their customers must meet the standards set by the company; otherwise it

will not be served. Excellent customer service (S) is one of the backbones of Mang

Inasal. Employees are expected to delivery fast and courteous service at all times.

Cleanliness (C) is very important for Mang Inasal both inside and outside the store.

Exteriors, from walls to sidewalks, and the interiors, from utensils to the appearance of

employees must be clean and presentable at all times. Much is expected from the

employees of Jollibee to deliver these standards every time. That is why Mang Inasal has

set in place a good compensation and benefit package to encourage their employees to

perform their very best. They also go through an intensive training that introduces them

to the kind of standard Mang Inasal wants to keep. Managers are continuously learning

the latest systems in store operations and other effective store and people management

skills. The company has also set in place career pathing for its employees, which provides

an opportunity for its employees to pursue a higher career in the company.

Strengths, Weaknesses, Opportunities, Threats (SWOT)

Strengths

1. Endorsements

2. Large Target market

3. Market leader in the Fast

Food Industry

4. Accessibility

5. Efficient Commissary

system

Weakness

1. Filipino Culture

2. Unhealthy food

3 Brands under the Mang

Inasal

4. Commissary struggles

5. Lack Research for other

countries

Opportunities

1. Local culture and

traditions

2. Cultural Diversity

3. Brand Acquisitions

4. Urban development

5. Philippines’ being an

Agricultural nation

SO Strategies

(S3+O5+O3) Consider

raising their own chickens.

(S3+S2+O4) Expand

network of stores to newly

developed areas in the

provinces.

(S3+O3) Acquire business

in order to penetrate

overseas market.

WO Strategies

(W2+O3) Acquire

restaurants that serve

healthy food and introduce a

healthy product line.

(W5+O2) Intensify research

on other countries’ culture

in order to cater effectively

to the Filipino and foreign

markets abroad.

Threats

1. Foreign-owned and local

SMEs

2. Global financial crisis

3. Sanitary Standards/

Health and Safety issues

4. Oil Prices

5. Political Instability in the

country

ST Strategies

(S5+T3) Continue

adherence to standards and

become a benchmark in the

government sanitary health

standards.

(S2+S3+T5) strengthen

advertising to reinforce

market leadership amidst

political instability.

(S3+T2) Create more

affordable meals to aid

Filipinos coping with the

financial crisis.

S1+S3+T1 = intimidate

competitors by reinforcing

market dominance through

intensified advertising.

WT Strategies

(W5+T1) Intensify research

on foreign culture and

develop market for Mang

Inasal abroad.

Strategic Position and Action Evaluation (SPACE) Matrix

FINANCIAL STRENGTH RATINGS

Current ratio is high with a percentage score of 1.46% 4

Quick ratio is high with a percentage of 0.98% 3

Net Sales of Siemens Healthcare is Php. 2,569,894,466 4

11

INDUSTRY STRENGTH

Market share of Siemens in the industry 5

Growth potential of 50% every year and 12.5% per quarter. 4

Product Innovations by the company’s R&D is an –

important factor in the Health Industry. 3

12

ENVIRONMENTAL STABILITY

Fast development of technology -1

Competitive Pressure -2

Inflation Rates -3

Price range of competing pressure -4

-10

COMPETITIVE ADVANTAGE

Market Share -1

Product Quality -2

Control over suppliers -1

Customer Loyalty -3

-7

Conclusion

ES average is -6/4 = -1.5 IS average is 12/3 = 4

CA average is -7/4 = -1.75 FS average is 11/3 = 3.67

Directional Vector coordinates: x-axis: -1.75 + (+4) = 2.25

y-axis: -2.5 + (+3.67) = 1.17

The directional vector is located at the aggressive quadrant of the SPACE Matrix.

It means that the organization is in an excellent position to use its internal strength. The

company could avoid the external strength while taking advantage of external

opportunities. Siemens can rely fully on its internal strengths.

SPACE Matrix

Financial Strength

ROI

Leverage

Liquidity

Working capital

Cash flow

Inventory turnover

Earnings per share Price earnings ratio

Average

2.00

4.00

5.00

5.00

3.00

4.00

4.00

4.00

Environmental Stability

Technological

Changes Rate of Inflation Demand Variability Price Range of Competing Products

Barriers to entry into market Competitive pressure Ease from exit from market Price

elasticity of demand Risk involved in business Average

-4.00 -3.00 -3.00 -3.00 -5.00 -3.00 -4.00 -4.00 -4.00 -3.00

3.88

Competitive Advantage Market share Product quality Product Life Cycle

-1.00 -2.00 -2.00

Industry Strength Growth potential Profit potential Financial stability

3.00 3.00 4.00

30

Customer Loyalty Competition capacity to utilization Technological Now How Control

over suppliers and buyers Average

-5.00 -2.00 -3.00 -4.00 -2.71

Technological know-how Resource utilization East of entry in market Productivity

Average

1.00 2.00 1.00 3.00 2.42

JFC should stick to its core competencies by making sure that it provides its consumers

benefits that no other fast food chain could provide, by making sure that what they have

and what they do would not easily copied or imitated by others and that they would

leverage on the strengths that the company have so that they could have their added value

over competitors. This way, they can apply the conservative strategy throughout their

businesses and still be the leading and successful fast food chain in the country. JFC also

should focus on particular niche markets which concentrates on a certain group or market

which further proves that they indeed uses the conservative strategy in their line of

business. They did not waste their time spreading themselves too thin across different

kinds of business so that they can concentrate and stand out in that particular niche that

they are dominating and serving. Since JFC has several opportunities which they can take

advantage of, they were able to pinpoint these opportunities and use them for their

benefit. More often than not, Jollibee should only take calculated risks and avoids taking

unnecessary risks that could put them in a disadvantageous position. There sould always

be thorough studies conducted before JFC makes a move or change certain things related

to the product and services that they offer.

Grand Strategy Matrix

The Grand Strategy Matrix is centered on two evaluative dimensions, namely

competitive position and market growth. In the matrix, we will see that Mang Inasal falls

under the fourth quadrant-having a strong competitive position in a slow market growth.

Recommended strategies under this quadrant are: horizontal, conglomerate, concentric

diversification and joint venture. We suggest that Mang Inasal Philipines Inc. follow

concentric or horizontal diversification or both. Concentric Diversification is growing a

firm by acquiring other firms or adding new products or services that are related to the

current products/services or to the firm itself. We say this because one of its strengths is

its large target market, catering to different groups of consumers. Mang Inasal Phillipines

Inc. any come up with new food products or services like catering. Horizontal

Diversification, on the other hand, is when a firm develops or acquires new products that

are may appeal to its current consumers. Mang Inasal Philippines Inc. may opt to team up

with other firms to come up with new products or services.

QSPM

Key Factors

Internal

Endorsements Large Target Market-Age, Culture, and Class AccessibiltyOutlets Market

Leader in Fast Food Industry Commissary System

External

Sanitary and Health Standards Philippines – Agricultural Nation Urban Development

Global Financial Crisis Competition with Other Companies

Total Score .12 .15 .13 .10 .15

Weight Horizontal Diversification AS 3 3 4 4 4 TAS .36 .45 .52 .40 .60

Research and Development AS 2 4 4 4 3 TAS .24 .60 .52 .40 .45

Concentric Diversification AS 3 4 4 4 4 TAS .36 .60 .52 .40 .60

.11 .10 .10 .09 .10

3 3 4 3 3 34

.33 .30 .40 .27 .30 3.93

4 3 2 3 4 33

.44 .30 .20 .27 .40 3.82

4 3 4 3 4 37

.44 .30 .40 .27 .40 4.29

Quantitative Strategic Planning Matrix (QSPM)

Key factors Product

Development

Market

Penetration

Opportunities Weight AS TAS AS TAS

1. Local culture and traditions

2. Cultural Diversity

3. Brand Acquisitions

4. Urban development

5. Philippines’ being an Agricultural

nation

Threats

1. Foreign-owned and local SMEs

2. Global financial crisis

3. Sanitary Standards/ Health and

Safety issues

4. Oil Prices

5. Political Instability in the country

Strengths

1. Endorsements

2. Large Target Market

3. Market leader in the Fast Food

Industry

4. Accessibility

5. Efficient Commissary system

Weakness

1. Filipino Culture

2. Unhealthy food

3 Brands under the Mang Inasal

4. Commissary struggles

5. Lack Research for other countries

TOTAL

Mgt mktg finance production

Chapter V

I. Objective and Recommended Strategiesa. Strategic and Financial Objectivesb. Recommended Strategies

i. Managementii. Marketing

iii. Productioniv. Finance

Generic Competitive Strategy

Mang Inasal should continue with the use of Product development strategy. As

seen in the analysis of Mang Inasal operations the past years, this strategy has been

proven beneficial to the company. With good research and development, Mang Inasal is

capable of continuing to produce products that fit well to the taste of their market. They

could also continue innovating their current product line so as to continuously remain

ahead of its competitors. And to compliment this strategy, Mang Inasal should also

pursue Cost Leadership - Best Value strategy. In this strategy, Mang Inasal should create

a new product line to cater to a unique segment of their market. For example, creating a

healthier product line for those who are weight and health conscious would be ideal.

Complementary Strategies

Based on the analysis made on Mang Inasal current performance, two of its

segments; food and franchising both fall into the first quadrant. It is then advisable if

Mang Inasal will continue expanding its network by setting more stores in new strategic

areas, either through franchise and company initiated. Mang Inasal should also strengthen

its advertising promotions so as to continue to reinforce dominance in the industry. And

this would be necessary, as Mang Inasal will introduce new additions to their product

line. Further analysis, using the QSPM Matrixes reveal that based on the key success

factors of Mang Inasal vis-à -vis its current strategies, Mang Inasal should best go for

Market Penetration strategy. This is one aggressive strategy, best to compliment Mang

Inasal grown and build position in the IE matrix. It is advised that Mang Inasal adds more

related products to their product line. This is because there appears to be no need to

totally change the current product line of Mang Inasal, as it has been widely accepted and

loved by the Filipino market. Addition to the said product line would be necessary to

cater to more markets.

Functional Strategies

Marketing / Sales Strategy

Rather than overhauling the entire marketing and sales strategy of Mang Inasal, it

should keep to its market for now, given the global financial crisis. As what the SPACE

matrix indicated, the company or the brand should not take unnecessary risks in trying to

get ahead in the industry. They are already on top of the industry here in the Philippines

and the only thing they need to do is to stay ahead. As for its nationwide brands

competing in the nationwide market, the Mang Inasal brand should stick to the Filipino

market and let its other brands focus on the other markets. It’s a kind of strategy where

each brand would target specific markets.

Operational, Production or Technical Strategies

It was also raised during analysis that Mang Inasal production and supply system

is working well in the country. It can also be said that the success of Mang Inasal could

also be attributed to this. It is then necessary that Mang Inasal makes sure that the same

system could be brought to other places were Magn Inasal would like to venture in. This

is to ensure that same quality will also be delivered all the time and in order to maintain

the standard and quality that Mang Inasal has been known for.

Finance, HR and Others

There is nothing much to do in the financial side of Mang Inasal Philippines Inc.

because they are financially well-off despite the crisis. They were able to weather it and

eventually stayed on top by keeping the same or even better financial performance.

Although, Mang Inasal Philippines Inc. should avoid any unnecessary investments, like

buying another brand if it is not at all strategic or financially beneficial to the company in

the long-term. In developing the human resources of Mang Inasal Philippines Inc., the

company should always remember that they are breaking barriers and competing in the

market. In line with diversifying its products and services, the employees should adapt to

this. By offering foreign language programs for Filipino employees who wish to work

abroad should be considered if Mang Inasal really wants to compete in the global

markets, especially in Asia.

Chapter 7

Action Plans and Departmental Programs

ACTIVITIES TIMETABLE EXPECTED OUTPUT

PERSON/UNIT RESPONSIBLE

Make advertisements on news paper or television.

Every 6 months

Increase in market share / sales

Marketing

Penetrate small hospitals

Monthly Increase sales / retain market leadership

Marketing

Evaluation Meetings Monthly Minimize hanging projects and company activities.

Management

Scouting and hiring of qualified engineers.

Annually Increase in work productivity

Human Resource

Development of innovative products to be sold in the market.

Monthly Increase in sales / market share

Management / Research and Dev’t

Easier customer support and maintenance of products.

Quarterly Increase in customer satisfaction

Distribution

Invest on Corporate Social Activities.

Quarterly Increase market leadership / establish a more strong company image.

Management / Financial

Chapter 8

Strategy Evaluation / Monitoring and Control

Strategies recommend in all the aspects of the business should be closely

monitored in order to achieve success. Every division / departments in the company

would submit a monthly report regarding the status of their activities. The management

also would conduct monthly evaluation meetings to fully monitor if there is a problem or

activities that are left behind and not done on the designated schedule.

The distribution department would be monitoring on the number of branches that

they have established and should submit a report to the management about the newly

established branches’ efficiency.

Balance Score Card

CUSTOMERS

GOALS MEASURES TARGETS

1. Customer loyalty Rate of return of the customers

Increase of sales by 30% in the year 2013

2. Excellent product advertisements.

Advertise through ATL and BTL kind of advertising.

Penetration of small hospitals by year 2013 / More demand across the nation.

3. Expansion of Maintenance Outlets and Stores nationwide

Increase of number of stores and maintenance outlets per region.

By 2013 maintenance outlets should be visible within the market area.

4. Market leadership Monthly market share performance evaluation.

Increase of market share.

5. High customer satisfaction Customer feedback forms on each maintenance outlets.

Avoid loss of customer and decrease in sales.

FINANCIAL PERSPECTIVE

GOALS MEASURES TARGETS

1. Increase its market share. Return on Assets and Equity

Increase in Revenue and Net Income.

2. Maintain high profitability Increase in Revenue by 30% in the next 5 years.

Increase in profits and market share

3. Maintain Financial Stability and Good reputation through investors.

Increase in Stock Holder’s Equity

Maintained Market Leadership.

HUMAN RESOURCE / MANAGEMENT

GOALS MEASURES TARGETS

1. Additional Career Fair Activities in Schools.

Tie up with engineering schools.

Minimize threat of less qualified engineers.

2. CSR orientation of employees.

Promote CSR activities in the whole company.

CSR oriented employees.

3. Continue being the preferred employer.

Incentives every month, Team buildings every quarter.

High inflow of employees.

The goals and measurements of those goals that were determined for Mang Inasal

in the balanced scorecard were derived from the previously stated vision, mission, values

and SWOT analysis.   The fast food industry has many growth opportunities, particularly

with the advent of the health conscious individual who is looking for convenient

alternatives to fast food.   The following categories are breakdowns of each goal and how

it relates to the overall strategy of Yum Yum Smoothies.