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Executive Summary

The paper being submitted by the researcher aims to discuss and focuses on the

development and recommended strategies for Bibingkinitan, a subsidiary company of Philippine

FoodAsia Corporation. It aims to improve the brand recognition of the company and to widen its

target market through effective and proper strategies. This paper also shows how Bibingkinitan

could become an effective company and as well as how it could improve its services and

financial position in the succeeding years to strengthen the competitive position of the company.

This paper shows the external, financial stability, internal stability and other parts of the

company that helps Bibingkinitan to become what it is now and how it operates in its industry

despite the fact that it is a part of an industry with so many competitors domestically and

internationally. This paper also shows the different results of strategy formulation tools used in

order to strategies and do significant action plans.

Bibingkinitan is the number one bibingka chain in the Philippines. They had provided the

Filipino people with a good tasting and healthy rice cake, or commonly known here in the

country as bibingka. The main products of the company are bibingka, kapeng barako and fruit

juices. They have been one of the fast growing franchising businesses in the country.

Bibingkinitan was created in order to promote patriotism by giving the people with this local

delicacy all year round and to promote the culture of the Filipinos.

For the next five years, the company set the objective of expanding the range of its target

market and by increasing its profit without harming the Earnings per share of its stockholders.

Part of its objective is the establishment of outlets outside the country, particularly in Jakarta,

Singapore and Las Vegas.

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To sum up this paper, different strategies and specified programs will be conferred. Results

of strategy matrices and formulation tools will help the management of Bibingkinitan to improve

its production. The analysis in the paper shows how Bibingkinitan could widen its brand

recognition and to expand its target market through the following Intensive strategies: Market

Penetration, Product Development and Market Development.

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I. Introduction
Company Profile

Bibingkinitan is the leading and biggest Bibingka Chain in the Philippines. They offer the

softest and moistest bibingka not only here in the country but also in the whole world.

Bibingkinitan founded its humble roots in 2006, when Richard Franz, an engineer by profession,

founded this popular bibingka chain. They started franchising in 2007; and as of 2011 they have

80 operating franchises. As of 2011, they have 200 outlets in which more than 80 branches are

owned by Food Asia Corp and the rest are operating franchises. Bibingkinitan is considered as

one of the fastest growing franchise, as rated by the Entrepreneur Magazine Philippines. Since

2007, Bibingkinitan earned numerous awards and recoginitions that include Best in Franchise

Support Award which they have won in 2007, 2008 2010 and the Fastest Growing Franchise

Award which they have won in 2008, 2009 and 2010.

For the year ended 2012, the revenue of the company was 116,720,460.71 pesos. Its profit

for the same here was 340,314.52 pesos. The size of its asset was 25,017,380.90, consisting of

liabilities and stockholders equity of 17,560,690.50 and 7,456,690.41 respectively. The major

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market served by the company is the C and D segment of the socio-economic population in the

country. The company is estimated to have 1,000 1,500 employees.

II. Paper Design and Methodology

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The research was done in order to know the current position of the company in its industry and to

know the current operating status of the company. The research was projected using

comprehensive strategic management model. The models used in this research will be

used in order to present practical and clear approach for formulating, implementing and

evaluating strategies for Bibingkinitan. The following methods will be used in developing

strategic management research paper:

The research is projected using comprehensive strategic- management model. This will represent

a practical and clear approach for formulating, implementing and evaluating strategies for

MediCard Philippines Incorporated. The following methods will be used in developing the

strategic management research paper:

Data Gathering Techniques

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The materials used in this paper was gathered mainly in the reputable websites in the internet

such as the main server of the company, Department of Trade and Industries, Philippine Statistics

Authority, Social Weather Station, National Statistical Coordination Board and The Philippine

Star. Books were also used in order to gather information. These include Fundamentals of

Accounting by Empleo and Strategic Management by David.

Scope and Limitations

The scope of this research is limited only to the products served by Bibingkinitan, Mister Donut

and Brownies Unlimited. Covered information in this paper will be from years 2010 to 2015.

The materials used by the researcher are limited to online references and books prescribed by the

school. The researcher also used his personal experience in order to provide information in this

paper.

III. Vision/Mission Statements

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A. Statement of the Current Vision and Mission Statements

Vision:

Being the countrys leading bibingka chain, we envision to make this traditional Filipino

delicacy to be recognize not only domestically but also internationally and to compete

side by side with other foreign brands. By doing so, we strive to bring out the best that

the Philippines and the Filipino has to offer to the whole world and to become one of the

most wanted products not only today but also in the future.

Mission:

It is our mission to provide not only great tasting bibingka to our customers but also the

taste of Filipino tradition.

B. Critiquing of the Current VM Statements.

The Vision Statement of the company is too long. Preferablly, Vision Statements

should only be short and it should only be simplified into one sentence. The main reason

for this is to easily capture the attention of the people and to give them a glimpse at one

sight of the goal of the company. The Vision statement should also be short enough to be

understood by the people but contains enough words to show them what the company

wants to become.

The Mission Statement of a company should contain the nine (9) components of a

good mission statement. It should be broad in scope, meaning it does not include monetary

amounts, numbers, percentages, ratios or objectives. It should also be inspiring and

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enduring and reveals that the company is not only socially but also environmentally

responsible. Base on the given mission statement of the company, it didnt met the

criterias to have an excellent mission statement. Even though it is broad enought, it lacks

some of its components.

C. Recommendation of Revised VM Statements

The following is the recommended VM Statements of the researcher:

Recommended Vision Statement:

It is our vision to make Filipino food and delicacies known to the whole world and to

compete side by side with the international brands.

Recommended Mission Statement:

It is our mission to provide great tasting bibingka to our customers and to provide not only

the country but also the whole world a taste of the Filipino tradition. By doing so, we will

emphasize in training our staffs and employees to maximize their full potential and to

adapt to technological changes the world has to offer. We will make sure to give the people

what they want and to deliver to them the Filipino values and to provide our company a

positive operating results in order to continue in competing in the international scene.

IV. External Analysis


A. General Environment

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The following sections will show how external factors will have an effect on the

company directly or indirectly. It will also disccus the impact of these factors on the

operation of the company.

4.1 SOCIAL, CULTURAL, AND DEMOGRAPHIC FORCES

4.1.1 Five Socioeconomic classes:

Figure 1: Socioeconomic Classes


Source: Social Weather Stations (SWS)
http://www.pinoymoneytalk.com/sec-abcde-percentage-population/

The SWS surver shows the different socioeconomic classes here in the Philippines. The

Socioeconomic classes are compose of the A,B,C,D and E market. Since 1985 up to the current

year, the SWS gathers information in order to determine the number of each classes in our

Population. According to the most recent information gathered by the researcher, the AB class

composes the lowest rate amongst the classes with a percentage of 1% in number of families. If

we will compare this with the socioeconomic classes of other countries, we can infer that the AB

class always composes the least number of share in the population. Here in the Philippines, the

1% percentage can be translated into nominal terms, that is they are composed only of 185,000

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families. Assuming that each family is composed of a total of 5 members, then the AB population

is barely 1 million people in the Philippine population. If we will look into their share in the total

income of the country, it will amount to 9% of the total income. Translating it into nominal

terms, it will be equal to approximately 1,857,000 pesos of annual income. Their share of 9% in

the total income is equal to that of the E market, which is the last class in our diagram. The E

market is also known as the lower class because they compose the 30% of the population in

number of families. The 30% population also shares in the same weight of percentage as the AB

class, which is 9% of the total income. That is approximately an annual income of 62,000 pesos

which is not enough for a family composed of 5 members. On the other hand, the middle class

people, also known as the D market dominates the percentage in both share in number of

families and share in percentage of total income. 60% of the population shares in the 56% total

income, meaning that a family composing of 5 persons have an annual income of Php 191,000.

This percentage is a good sign for the company, considering the fact that their target market are

the C and D class of the population. The company can take advantage of these facts in order to

control the market.

4.1.2 Population of the Philippines:

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Figure 2: Population of the Philippines
Source: Trading Economics
http://www.tradingeconomics.com/philippines/population

The population of the Philippines continues to increase rapidly since the 20th century. According

Trading Economicsdata above, the population of the Philippines during January of the year

2006 is 85.26 million people. From then on, the population of the Philippines contiues to grow at

an approximate rate of 1.4 million people per year. The highest increase in the population was on

January 2013, when it reached 97.1 million from 94.8 million of the prior year. That was an 2.6

million increase in the population for just about a year. During the year 2015, we hit the 100

million mark, meaning for the past 55 years we increased by 80 million people.

The current population of the Philippines represent 1.37 percent of the worlds population, which

means that 1 in every 75 people on the planet is a resident of the Philippines. This is also a good

sign for the company in terms of expanding its range outside the country because it can easily

find a Filipino customer wherever in the world.

4.1.3 Division of Religions in the Philippines

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Figure 3: Population of the Philippines
Source: National Statistical Coordination Board
http://www.catholicnotes.com/2014/religion-in-the-philippines/

The Republic of the Philippines is considered as the only country in Southeast Asia with

predominantly Christian population. Christianity is a religion in which people believed in Jesus

Christ, who was sent by God to redeem His people from their sins. Christians believed in the

birth, death and ressurection of Jesus Christ. The birth of Jesus Christ is also known as the

Christmas season. Here in the Philippines, Filipinos celebrate Christmas as early as September

up to as late as January. During this season, vendors usually sell Bibingka, which is a popular

delicacy here in the Philippines

As of 2014, the Roman Catholic still dominates the country in terms of religion. The Catholics

represent 82.9% of the population, followed by the Protestants at 5.4%. Being Catholics means

that we celebrate certain holidays and traditions, especially Christmas which is the birth of Jesus

Christ. This is the season when we celebrate Misa de Gallo and coincidentally this is also the

season of local delicacies like Bibingka and Puto bumbong. For as long as we have this kind of

season, then the demand for local delicacies such as bibingkas and putobumbongs will be high

during this seasons.

4.2 ECONOMIC ENVIRONMENT

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4.2.1 Employment Rate

Figure 4: Employment Rate


Source: Philippine Statistics Authority
http://web0.psa.gov.ph/content/employment-rate-april-2014-estimated-930-percent

According to Philippine Statistics Authority, the estimated employment rate last April 2014 is

93.0%, which is .6% higher compared to last years employment rate. The statistics in 2014 and

2013 excluded the province of Leyte due to the calamity that they had experienced during 2013.

Also, the following regions had and employment rate which is lower than the National

Percentage:

a. National Capital Region(NCR) 89.6%


b. Ilocos Region 90.8%
c. CALABARZON 91.0%
d. Central Luzon 91.4%

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The graph also shows that there is an increase of 1.4% in the Labor Force Participation Rate,

which is a good sign for opening new jobs and franchises because we can hire easily employees

to work for the company.

4.2.2 Inflation Rate

Figure 5: Headline Inflation Rates in the Philippines, All Items (2006=100)


Source: Philippine Statistics Authority
http://census.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-
2006100-may-2014

According to the Philippine Statistcis Authority, the inflation rate for the month of May in the

year 2014 hit 4.5%. This is as twice as high compared to the 2.6% of inflation rate in the same

period last year. The growth was primarily brought about by higher annual rate posted in the

heavily-weighted food and non-alcoholic beverages index. Faster annual increments were also

registered in the indices of clothing and footwear; housing, water, electricity, gas and other fuels;

furnishing, household equipment and routine maintenance of the house; transport; and

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communication. High inflation rates of 2014 compared to 2013 could post a threat to the

purchasing power of the Filipinos and their power to buy is being challenged by these increases.

If this continues, then it can affect the the company in generating profit for the year.

4.3 POLITICAL, LEGAL AND GOVERNMENTAL FORCES

4.3.1 Republic Act No. 7394

The given Law mentioned below have an effect on the operation of the business:

Republic Act No. 7394, also known as The Consumer Act of the Philippines was enacted on

April 13,1992.

TITLE I. GENERAL PROVISIONS

Article 1. Short Title. This Act shall be known as the "Consumer Act of the Philippines."

Article 2. Declaration of Basic Policy. It is the policy of the State to protect the interests of the

consumer, promote his general welfare and to establish standards of conduct for business and

industry. Towards this end, the State shall implement measures to achieve the following

objectives:

a) protection against hazards to health and safety;

b) protection against deceptive, unfair and unconscionable sales acts and practices;

c) provision of information and education to facilitate sound choice and the proper

exercise of rights by the consumer;

d) provision of adequate rights and means of redress; and

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e) involvement of consumer representatives in the formulation of social and economic

policies.

Article 3. Construction. The best interest of the consumer shall be considered in the

interpretation and implementation of the provisions of this Act, including its implementing rules

and regulations.

CHAPTER II

FOOD, DRUGS, COSMETICS AND DEVICES

Article 20. Declaration of Policy. The State shall ensure safe and good quality of food, drugs,

cosmetics and devices, and regulate their production, sale, distribution and advertisement to

protect the health of the consumer.

Article 21. Implementing Agency. In the implementation of the foregoing policy, the State,

through the Department of Health, hereby referred as the Department, shall, in accordance with

the provisions of this Act:

a) establish standards and quality measures for food, drugs, devices and cosmetics;

b) adopt measures to ensure pure and safe supply of foods and cosmetics, and safe,

efficacious and good quality of drugs and devices in the Country;

c) adopt measures to ensure the rational use of drugs and devices, such as, but not limited

to, banning, recalling or withdrawing from the market drugs and devices which are

unregistered, unsafe, inefficacious or of doubtful therapeutic value, the adoption of an

official National Drug Formulary, and the use of generic names in the labeling of drugs;

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d) strengthen the Bureau of Food and Drugs.

Article 22. Rules and Regulations on Definitions and Standards. Whenever in the judgment

of the Department such action will promote honesty and fair dealing in the interest of consumers,

it shall promulgate rules and regulations fixing and establishing a reasonable definition and

standard of identity, a reasonable standard of quality and/or reasonable standard of fill of

containers for food, drugs, cosmetics or devices.

Article 23. Adulterated Food. A food shall be deemed to be adulterated:

a) 1) if it bears or contains any poisonous or deleterious substance which may render it

injurious to health; but in case the substance is not an added substance, such food shall

not be considered adulterated under this clause if the quantity of such substance does not

ordinarily render it injurious to health;

2) if it bears or contains any added poisonous or deleterious substance other than

one which is (i) a pesticide chemical in or on a raw agricultural commodity, (ii) a

food additive, (iii) a color additive, for which tolerances have been established

and it conforms to such tolerances;

3) if it consists in whole or in part of any filthy, putrid or decomposed substance,

or if it is otherwise unfit for food;

4) if it has been prepared, packed or held under unsanitary conditions whereby it

may have become contaminated with filth, or whereby, it may have been rendered

injurious to health;

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5) if it is, in whole or part, the product of a diseased animal or of an animal which

has died other than by slaughter;

6) if its container is composed, in whole or in part, of any poisonous or

deleterious substance which may render the contents injurious to health; or

7) if it has passed its expiry date.

b) (1) If any valuable constituent has been, in whole or in part, omitted or abstracted

therefrom and the same has not been substituted, by any healthful equivalent of such

constituent;

2) if any substance, not a valuable constituent, has been added or substituted or in

part therefor;

3) if damage or inferiority has been concealed in any manner; or

4) if any substance has been added thereto or packed therewith so as to increase

its bulk or weight, reduce its quality or strength, or make it appear better or of

greater value than it is.

c) if it is, or bears or contains a color additive which is unsafe under existing regulations:

Provided, That the Department shall promulgate regulations providing for the listing of

color additives which are harmless and suitable for use in food for which tolerances have

been established;

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d) if it is confectionary, and it bears or contains any alcohol or non-nutritive article or

substance except harmless coloring, harmless flavoring, harmless resinous glass not in

excess of four-tenths (4/10) of one per centum (1%) natural gum and pectin: Provided,

That this clause shall not apply to a safe non-nutritive article or substance if, in the

judgment of the Department as provided by regulations, (1) such article or substance is of

practical functional value in the manufacture, packaging or storage of such confectionery,

(2) if the use of the substance does not promote deception of the consumer or otherwise

results in adulteration or mislabeling in violation of any provision of this Act, and (3)

would not render the product injurious or hazardous to health: Provided, further, That this

paragraph shall not apply to any confectionery by reason of its containing less than one-

half () of one per centum (1%) by volume of alcohol, derived solely from the use of

flavoring extracts, or to any chewing gum by reason of its containing harmless non-

nutritive masticatory substance: Provided, finally, That the Department may, for the

purpose of avoiding or resolving uncertainty as to the application of this clause,

promulgate regulations allowing or prohibiting the use of particular non-nutritive

substances;

e) if it is oleomargarine, margarine or butter and any of the raw materials used therein

consists in whole or in part of any filthy, putrid or decomposed substance, or such

oleomargarine, margarine or butter is otherwise unfit for food;

f) if it has not been prepared in accordance with current acceptable manufacturing

practice established by the Department through regulations.

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Article 24. Regulation of Unprocessed Food. The provincial, municipal and city governments

shall regulate the preparation and sale of meat, fresh fruits, poultry, milk, fish, vegetables and

other foodstuff for public consumption, pursuant to the Local Government Code.

Article 25. Tolerance for Poisonous Ingredients in Food. Any poisonous or deleterious

substance added to any food shall be deemed to be unsafe, except when such substance is

required or can not be avoided in its production or can not be avoided by good manufacturing

practice. In such case, the Department shall promulgate regulations limiting the quantity therein

in such extent as he finds necessary for the protection of public health, and any quantity

exceeding the limits so fixed shall be deemed to be unsafe. In determining the quantity of such

added substance to be tolerated in different articles of food, the Department shall take into

account the extent to which the use of such article is required or can not be avoided in the

production or manufacture of such articles and the other ways in which the consumer may be

affected by the same or other poisonous or deleterious substance.

Article 26. Unsafe Food Additives, Exceptions for Conformity with Regulation. A food

additive, with respect to any particular use or intended use, shall be deemed unsafe unless:

a) it and its use or intended use conforms to the terms of an exemption for being solely

intended for investigational use by qualified experts; or

b) it and its use or intended use is in conformity with a regulation issued by the

Department prescribing the conditions under which such additives may be safely used.

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Article 27. Petition for Regulation of Food Additive. Any person may, with respect to any

intended use of a food additive, file with the Department a petition proposing the issuance of a

regulation prescribing the conditions under which such additives may be safely used.

The Department shall (1) establish a regulation prescribing, with respect to one or more proposed

uses of the food additive involved, (i) the conditions under which a food additive may be safely

used including, but not limited to, specifications as to the particular food, classes of food, in

which such additive may be used, (ii) the maximum quantity which may be used, or permitted to

remain in or on such food; (iii) the manner in which such additive may be added to or used in or

on such food, and (iv) any directions or other labeling or packaging requirement for such

additive deemed necessary to assure the safety of such use, and shall notify the petitioner of such

order and the reasons for such action; or (2) deny the petition and notify the petitioner of and the

reasons for such action.

The Department may, at any time upon his own initiative, issue a regulation prescribing, with

respect to any particular food additive, the conditions under which such additive may be safely

used and the reasons thereof, and cause the publication of the same.

Article 28. Effectivity of Regulations. The regulations promulgated under the preceding

articles shall take effect fifteen (15) days after its publication in a newspaper of general

circulation but the Department may stay such effectivity if, after issuance of such order, a

hearing is sought by any person adversely affected by such order.

CHAPTER IV

LABELING AND FAIR PACKAGING

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Article 74. Declaration of Policy. The State shall enforce compulsory labeling, and fair

packaging to enable the consumer to obtain accurate information as to the nature, quality and

quantity of the contents of consumer products and to facilitate his comparison of the value of

such products.

Article 75. Implementing Agency. The Department of Trade and Industry shall enforce the

provisions of this Chapter and its implementing rules and regulations: Provided, That with

respect to food, drugs, cosmetics, devices and hazardous substances, it shall be enforced by the

concerned department.

Article 76. Prohibited Acts on Labeling and Packaging. It shall be unlawful for any person,

either as principal or agent, engaged in the labeling or packaging of any consumer product, to

display or distribute or to cause to be displayed or distributed in commerce any consumer

product whose package or label does not conform to the provisions of this Chapter.

The prohibition in this Chapter shall not apply to persons engaged in the business of wholesale or

retail distributors of consumer products except to the extent that such persons:

a) are engaged in the packaging or labeling of such products;

b) prescribe or specify by any means the manner in which such products are packaged or

labeled; or

c) having knowledge, refuse to disclose the source of the mislabeled or mispackaged

products.

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Article 77. Minimum Labeling Requirements for Consumer Products. All consumer products

domestically sold whether manufactured locally or imported shall indicate the following in their

respective labels of packaging:

a) its correct and registered trade name or brand name;

b) its duly registered trademark;

c) its duly registered business name;

d) the address of the manufacturer, importer, repacker of the consumer product in the

Philippines;

e) its general make or active ingredients;

f) the net quality of contents, in terms of weight, measure or numerical count rounded of

to at least the nearest tenths in the metric system;

g) country of manufacture, if imported; and

h) if a consumer product is manufactured, refilled or repacked under license from a

principal, the label shall so state the fact.

The following may be required by the concerned department in accordance with the rules and

regulations they will promulgate under authority of this Act:

a) whether it is flammable or inflammable;

b) directions for use, if necessary;

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c) warning of toxicity;

d) wattage, voltage or amperes; or

e) process of manufacture used if necessary.

Any word, statement or other information required by or under authority of the preceding

paragraph shall appear on the label or labeling with such conspicuousness as compared with

other words, statements, designs or devices therein, and in such terms as to render it likely to be

read and understood by the ordinary individual under customary conditions of purchase or use.

The above requirements shall form an integral part of the label without danger of being erased or

detached under ordinary handling of the product.

Article 78. Philippine Product Standard Mark. The label may contain the Philippine Product

Standard Mark if it is certified to have passed the consumer product standard prescribed by the

concerned department.

Article 79. Authority of the Concerned Department to Provide for Additional Labeling and

Packaging Requirements. Whenever the concerned department determines that regulations

containing requirements other than those prescribed in Article 77 hereof are necessary to prevent

the deception of the consumer or to facilitate value comparisons as to any consumer product, it

may issue such rules and regulations to:

a) establish and define standards for characterization of the size of a package enclosing

any consumer product which may be used to supplement the label statement of net

quality, of contents of packages containing such products but this clause shall not be

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construed as authorizing any limitation on the size, shape, weight, dimensions, or number

of packages which may be used to enclose any product;

b) regulate the placement upon any package containing any product or upon any label

affixed to such product of any printed matter stating or representing by implication that

such product is offered for retail at a price lower than the ordinary and customary retail

price or that a price advantage is accorded to purchases thereof by reason of the size of

the package or the quantity of its contents;

c) prevent the nonfunctional slack-fill of packages containing consumer products.

For purposes of paragraph (c) of this Article, a package shall be deemed to be nonfunctionally

slack-filled if it is filled to substantially less than its capacity for reasons other than (1) protection

of the contents of such package, (2) the requirements of machines used for enclosing the contents

in such package, or (3) inherent characteristics of package materials or construction being used.

Article 80. Special Packaging of Consumer Products for the Protection of Children. The

concerned department may establish standards for the special packaging of any consumer

product if it finds that:

a) the degree or nature of the hazard to children in the availability of such product, by

reason of its packaging, is such that special packaging is required to protect children from

serious personal injury or serious illness resulting from handling and use of such product;

and

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b) the special packaging to be required by such standard is technically feasible,

practicable and appropriate for such product. In establishing a standard under this Article,

the concerned department shall consider:

1) the reasonableness of such standard;

2) available scientific, medical and engineering data concerning special packaging

and concerning accidental, ingestions, illnesses and injuries caused by consumer

product;

3) the manufacturing practices of industries affected by this Article; and

4) the nature and use of consumer products.

Article 81. Price Tag Requirement. It shall be unlawful to offer any consumer product for

retail sale to the public without an appropriate price tag, label or marking publicly displayed to

indicate the price of each article and said products shall not be sold at a price higher than that

stated therein and without discrimination to all buyers: Provided, That lumber sold, displayed or

offered for sale to the public shall be tagged or labeled by indicating thereon the price and the

corresponding official name of the wood: Provided, further, That if consumer products for sale

are too small or the nature of which makes it impractical to place a price tag thereon price list

placed at the nearest point where the products are displayed indicating the retail price of the same

may suffice.

Article 82. Manner of Placing Price Tags. Price tags, labels or markings must be written

clearly, indicating the price of the consumer product per unit in pesos and centavos.

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Article 83. Regulations for Price Tag Placement. The concerned department shall prescribe

rules and regulations for the visible placement of price tags for specific consumer products and

services. There shall be no erasures or alterations of any sort of price tags, labels or markings.

Article 84. Additional Labeling Requirements for Food. The following additional labeling

requirements shall be imposed by the concerned department for food:

a) expiry or expiration date, where applicable;

b) whether the consumer product is semi-processed, fully processed, ready-to-cook,

ready-to-eat, prepared food or just plain mixture;

c) nutritive value, if any;

d) whether the ingredients use are natural or synthetic, as the case may be;

e) such other labeling requirements as the concerned department may deem necessary and

reasonable.

Article 85. Mislabeled Food. A food shall also be deemed mislabeled:

a) if its labeling or advertising is false or misleading in any way;

b) if it is offered for sale under the name of another food;

c) if it is an imitation of another food, unless its label bears in type of uniform size and

prominence, the word "imitation" and, immediately thereafter, the name of the food

imitated;

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d) its containers is so made, formed, or filled as to be misleading;

e) if in package form unless it bears a label conforming to the requirements of this Act:

Provided, That reasonable variation on the requirements of labeling shall be permitted

and exemptions as to small packages shall be established by the regulations prescribed by

the concerned department of health;

f) if any word, statement or other information required by or under authority of this Act to

appear on the principal display panel of the label or labeling is not prominently placed

thereon with such conspicuousness as compared with other words, statements, designs or

devices in the labeling and in such terms as to render it likely to be read and understood

by the ordinary individual under customary conditions of purchase and use;

g) if it purports to be or is represented as a food for which a definition or standard of

identity has been prescribed unless:

1) it conforms to such definition and standard; and

2) its labels bears the name of the food specified in the definition or standards,

and insofar as may be required by such regulations, the common names of

optional ingredients other than spices, flavoring and coloring, present in such

food;

h) if it purports to be or represented as:

1) a food for which a standard of quality has been prescribed by regulations as

provided in this Act and its quality fall below such standard, unless its label bears

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in such manner and form as such regulations specify, a statement that it falls

below such standard; or

2) a food for which a standard or standards or fill of container have been

prescribed by regulations as provided by this Act and it falls below the standard of

fill of container applicable thereto, unless its label bears, in such manner and form

as such regulations specify, a statement that it falls below such standard;

i) if it is not subject to the provisions of paragraph (g) of this Article unless its label bears:

1) the common or usual name of the food, if there be any; and

2) in case it is manufactured or processed from two or more ingredients, the

common or usual name of such ingredient; except the spices, flavorings and

colorings other than those sold as such, may be designated as spices, flavorings

and colorings without naming each: Provided, That to the extent that compliance

with the requirement of clause (2) of this paragraph is impracticable or results in

deception or unfair competition, exemptions shall be established by regulations

promulgated by the concerned department of health;

j) if it purports to be or is represented for special dietary uses, unless its label bears such

information concerning its vitamin or mineral or other dietary properties as the concerned

department determines to be, or by regulations prescribed as necessary in order fully to

inform purchasers as its value for such uses;

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k) if it bears or contains any artificial flavoring, artificial coloring, or chemical

preservative, unless it bears labeling, stating that fact: Provided, That to the extent that

compliance with the requirements of this paragraph is impracticable, exemptions shall be

established by regulations promulgated by the concerned department. The provisions of

this paragraph or paragraphs (g) and (i) with respect to the artificial coloring shall not

apply in the case of butter, cheese or ice cream.

The mentioned Republic Act has an effect on the business as to how they will provide their

products to their customers. It must be of quality and it should not be hazardous to the health of

its consumers. The same law also mention on how they should operate, meaning they must be

responsible enough to price their products and to label it properly, especially that they are in the

food business which can affect the well being of a person.

IV.4 TECHNOLOGICAL DEVELOPMENT

4.4.1 New Technology

Since we are living in a fast pacing environment, the company must develop its technology to

have an edge against its competitors. They should update their website so that people could

place an order online. They should also develop mobile application in order for the people to

place their orders whenever and wherever they are. By improving these aspects, the

customers would be able to reduce their waiting time because they could place their orders

ahead of time. These new technologies will also have an important role for the market

development of the company because this will help in promoting the company.

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B. Industry Analysis and Competitor Analysis

4.5 INDUSTRY ANALYSIS

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Force: Degree of Force:
Bargaining power of supplier High
Rivalry among competitors High
Threats of new substitute High
Bargaining power of buyer Low

4.5.1 MICHAEL PORTERS FIVE FORCE ANALYISIS

4.5.1.1 Rivalry among competitors (HIGH)

In the food industry, especially in the franchising business, rivalry among competitors are high

because many people want to establish their own business and to generate profit. In the

franchising world, you can set up your own business that already has an establish name because

it is a strength that could be use in order to dominate the market. For the Company, competition

is high because many franchising business can compete in their market in terms of the nature of

their product. Since their product is usually a pasalubong, people have a variety of choices to

pick from. The colonialisim of the Filipino people has an impact on the way they choose what

they want. Sometimes people would consider imported products because it is more popular. For

the industry of the company, having a competitor which provides for imported product makes

the competition high and stiff.

4.5.1.2 Threats of substitute products (HIGH)

Threats of substitute product is high because in the food industry, if a company could provide the

market with food which is new or enticing to the taste of the people, then it could be a substitute

for the product of the company. For example, the given competitor of the company has a

different product from our company. People may shift to other product due to the variety of food

that they could choose from the market. The demand for the product could also be a factor that

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could affect this force. Another example is that the demand for bibingka is high during Christmas

season. During this time, people will choose bibingka more as against to brownies or donut due

to its seasonality. But when the Christmas season end, the demand for bibingka will slowy

decrease, thus people could shift to substittue product.

4.5.1.3 Bargaining Power of Supplier (HIGH)

For the company, the bargaining power of the supplier due to the nature of its product. The main

product for making bibingka is rice, coconut milk and sugar. All of these are abundant in the

country, and usually the company gets its supplies from local suppliers because it is cheaper

compared to imported ones. The sellers has the power to set the prices, meaning that their

bargaining power is high. Their power becomes higher when calamities such as typhoons and

earthquakes hit the country. For example, the recent infestation sufferd by the coconut farmers

affected the production of products from coconut trees. This includes the coconut milk, which is

a main ingredient in making bibingka. The suppliers has the power to set the price high in order

to cope up with this kind of situation. The company, on the other, has no choice but to accept the

price hike or find other suppliers.

4.5.1.4 Bargaining Power of Buyer (LOW)

For the industry, the bargaining power of buyer is low because the buyers could choose from the

variety of products available in the market. They have the discretion to choose from bibingka up

to other products. The company is limited from monopolizing the market because of the taste and

preferences of the people. Some people will tend to pick from more popular desserts than the

local delicacy, which in case is bibingka. The people are not hindered to pick from what they

want and the freedom of choice is present among the people. The company must overcome the

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bargainig power of the buyer by making sure that the people will choose their product over the

products of their competitors.

4.5.1.5 Threats of New Entrants (MODERATE)

The threat of new entrant is moderate considering that a person will need money in order to set

up his or her own franchising business. It is not low because many people has the capacity to

give up 500,000 1,000,000 pesos in order to set up their own business. On the other hand, it is

no high because law and regulations could prevent other companies or other people from setting

up their own business. Penetrating the food industry means new innovation and new gimmicks in

order to have a share in the market, or for the better to capture the market of the competitor.

Since the company is already an established company, then the entrants of new entrants will only

moderately affect the position of the company in the industry and the image of the company in

the market.

4.6 COMPETITOR ANALYSIS

4.6.1 Brownies Unlimited (Desserts Plus Incorporated)

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Brownies Unlimited

Brownies unlimited is a subsidiary of the company Dessert Plus Incorporated. They provide the

chewy, chocolately, gooey or nutty brownies here in the country. From one store in 1989,

Brownies Unlimited have 60 companyowned Brownies Unlimited stores, and they are still

growing. Whether as a personal treat or a gift, Their brownies always surprise and delight

customers and is considered as one of the most popular pasalubong here in the country. The

products of the company are brownies, cupcakes, pastries and munchies.

Gross Profit Ratio

Year Gross Profit Ratio = Gross Profit/Net Sales


2010 89,067,567/287,505,882 = .31
2011 58,918,091/281,719,602 = .21
2012 58,088,208/285,646,904 = .20

The table above shows the gross profit ratio of the Brownies Unlimited for the years ended 2010,

2011 and 2012. The company is experiencing a decline in its GPR, with the greatest discrepancy

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between 2010 and 2011. The GPR for the year 2010 was .31 and it went down to .21 in 2011.

However, even though it declined on the year 2012, it was just a small amount compared to the

amount between 2010 and 2011. By looking and analyzing at these figures, we can say that our

company is ahead against this company in terms of gross profit. It means that our company is

more effective in terms of earning every peso which is left over after the business has paid to its

goods as against to this company.

4.6.2 Mister Donut

Mister Donut is a food venture that provides the market with the tasties donuts out there. From

the streets of Boston, USA in 1955, Mister Donut reached the Philippines in 1982 and is now one

of the fastest growing food brands in the country. Currently, they have over 2,000 shops

nationwide. They sell thousands of donuts and other baked products each day and continuously

bring smiles to millions of Filipinos. The initial investment cost begins at 200,000 pesos, which

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includes the following: Franchise fee at Php 50,000.00, showcase cost, uniform (6 sets),

smallwares, POS tablet, cleaning kit and supply, training vouchers and initial product inventory.

The total investment cost may vary depending on the type of shop to be established. Security

deposit, mobilization and design fees are not yet included in the package.

Gross Profit Ratio:

Year Gross Profit Ratio = Gross Profit/Net Sales


2010 89,067,567/287,505,882 = .31
2011 58,918,091/281,719,602 = .21
2012 58,088,208/285,646,904 = .20

4.7 COMPETITIVE PROFILE MATRIX (CPM)

Company A Company B Company C

Critical Success Factors Weight Rating Score Rating Score Rating Score

Advertising 0.15 2 0.30 2 0.30 3 0.45

Product Quality 0.20 3 0.60 3 0.60 3 0.60

Price Competitiveness 0.10 3 0.30 2 0.20 4 0.40

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Management 0.10 3 0.30 3 0.30 3 0.30

Financial Position 0.10 3 0.30 3 0.30 4 0.40

Customer Loyalty 0.15 2 0.30 3 0.45 3 0.45

Global Expansion 0.05 1 0.05 1 0.05 3 0.15

Market Share 0.15 2 0.30 2 0.30 3 0.45

TOTAL 1.00 2.45 2.50 3.20

Critical Success Factors:

1. Advertising Company C (Mister Donut) has a greater advertising investment compared

to local Company A (Bibingkinitan) and local Company B (Brownies Unlimited). Since

Mister donut is an already established company not only here in the Philippines but also

outside the country, it already has the capacity to finance its advertising expense in order

for them to make their company known in the market


2. Product Quality Companies A, B, and C was tied when it comes to product quality. The

three companies have different products, namely bibingka, brownies and doughnut

respectively. They are tied because they provide the market with different types of

pasalubong products which is generally what customers want and what they look for.

Bibingkinitan must find ways to take the lead and provide other local delicacies.
3. Price competitiveness Again, Company C has the edge when it comes to price

competitiveness. A dozen of donuts has a price of 132 pesos, compared to 6 pieces of

bibingka which is 120 pesos and 128 pieces of brownies for pesos. Company C won in

the category considering their price and in terms of quantity of products which can be

bought at that price. However, the price of bibingka of Company A is lower compared to

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other bibingkas being sold by other vendors, which means that they are still competitive

when it comes to pricing of the same product.


4. Management The three companies are tied when it comes to its management because

they are able to efficiently enter the market here in the country thru its effective

management. However, since Company C is operating internationally, they must have a

complex management in order to manage its affairs and operations.


5. Financial Position Company C has the edge when it comes to Financial Position

because they cater not only their market in the Philippines but also their market

internationally. Unlike Company A and B, they only cater here inside the country thats

why they have low rating in financial position as against with Company C
6. Customer loyalty Today, most people would look for doughnuts or brownies to buy as

pasalubong to their love ones. Since Companys A product is in demand only during

the Christmas season, its loyal customers shift to substitute products when this season

ends. It must find ways to keep its loyal customers loyal all throughout the year and not

only during this kind of season.


7. Global Expansion Company C takes the lead when it comes to global expansion. The

company already has branches all over the world, which means that it has a wider range

of target market compared to its local competitor A and B. Company A should use its

opportunity to expand internationally to have a share in the market already penetrated by

Company C
8. Market Share - Company C is upfront against Company A and B. Since Donuts are more

popular than Bibingka and Brownies, consumers will tend to choose the former over the

latter. This is the reason why Company C has the largest share in the market.

C. Summary and Conclusion

4.8 EXTERNAL FACTOR MATRIX (EFE)

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Key External Factors Weight Rating W.S

Opportunitites o

1. Dominating the market in terms of providing .18 3 .54


the people with this local delicacy
2. Overseas expansion in other countries starting .18 3 .54
with Jakarta, Singapore, Hongkong and Las Vegas
3. Our target market is the C and D markets which .10 3 .30
represents the greatest percentage in the
population
4. Expanding the range of the company thru opening .06 2 .12
new jobs and franchises
5. Providing other Filipino delicacy (such as putobumbong) .05 1 .05

Threats o

1. Innovation of other food business can pull our .07 2 .14


Customers away from us
2. Creation of other unique products .10 3 .30
3. Entry of foreign brands which are more popular .20 2 .40
than the company
4. Inflation rate which can affect the .03 1 .03
purchasing power of the people
5. Unforeseen calamities which can damage our .03 1 .03
raw materials in making our products

Total 1.00 2.45

The total weighted score of the External Factor Evaluation Matrix for bibingkinitan is 2.45. The

weight of each external factors are graded in any amount for as long as it will sum to a total of 1.

On the other hand, the ratings were rated from 1-4, 4 being the strongest and 1 being the weakest

factor. Dominating the market in terms of providing people with this local delicacy and by

diversifying into other local delicacies have the highest weight in opportunities with a weighted

score of .18 each. The first three opportunities enumerated above earned the highest ratings with

a rate of 3, meaning that these are the top opportunities to expand the range of the market. As to

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the threats, entry of foreign brands poses the biggest threat for the company, earning a weighted

score of .2 and rating of 2. Since the Filipinos are known as imported lover people, it must

compete with imported products in order to survive in the market.

Opportunities:

1. Dominating the market in terms of providing the people with this local delicacy Being

the leading bibingka chain in the Philippines, the company already has a head start

compare to other food business who wants to sell the same kind of product. The company

is also the sole food venture which provides this local delicacy, which is an opportunity to

conquer the market by capturing the taste of the Filipinos.


2. Overseas expansion in other countries starting with Jakarta, Singapore, Hongkong and

Las Vegas - As mentioned in earlier in the external analysis, 1 in every 75 people in the

world is a Filipino. With this statistics, we can say that it is a good opportunity for the

company to expand in other countries considering that there are also Filipinos who are

craving for Filipino foods whenever they are outside the Philippines. Oversies expansion

is also an opportunity for the company in order to compete side by side with other brands.

They also already captured the C and D market in the country, which occopies the largest

portiong of the socioeconomic in the country thats why there is already a need to go

internationally
3. Our target market is the C and D market which represent the greatest percentage in the

Population Capturing the C and D market is an opportunity to monopolize the market in

terms of providing local delicacy. New entrants will find it as a threat because the

company already established its product in the largest market segment in the population.

Because of this, the new players will find it hard to enter the same market whilst

providing also the same product.

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4. Expanding the range of company thru opening new jobs and franchises The increase in

the population of the country will become an opportunity for the company to open new

jobs and franchises. Since the country increased in population, it means that more people

are capable of working and thus the company will not find it hard to hire new employees.
5. Providing other Filipino delicacy such as putobumbong For the company, this will

become its greatest opportunity because it can provide again the people with another

local delicacy which is available only during the holiday season. This opportunity is for

those people who crave for such seasonal delicacy. Since bibingka and putobumbong is

seasonal only, providing these delicacies all through out the year will become an

opportunity for the company to satisfy the cravings of the people.

Threats:

1. Innovation of other food business can pull our customers away from us. Innovation

poses a threat to any company. If other company found out a way to innovate their

products to become more enticing to the people, then it can compete with our trademark

small bibingka which can pull our customers away from us


2. Creation of other unique product. Creation of other unique product also poses a threat

because it can compete with the uniqueness of our product. Having a product which is

unique and can compete with the affordability of our pricecan capture the curiosity of the

people, and it can also capture our target market.


3. Entry of foreign brands which are more popular than the company Since the name of

the company is known only in some other parts of the Philippines, entry of popular

brands from other countries will pose a threat for the company. Branding is a strategic

way in order to capture the market. If established foreign brands entered the country, then

it can compete in the market and it will become a threat in the succes of the business.

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4. Inflation rate which can affect the purchasing power of the people Inflation rate means

that the price of comodities continue to rise, resulting into a weak purchasing power of

the people. Having a weak purchasing power can hinder not only our customers but also

prospective customers to buy our prodcuts, affecting our sales which can have an impact

on the growth and expansion of the company.


5. Unforeseen calamities which can damage our raw materials in making our products.

Unforeseen calamities is a threat for the company because it can affect in the production

of our product. Typhoons, for example, is typical in the country especially in Luzon.

Since most of the rice are produced in Luzon, then Typhoons could damage the rice fields

which in effect can cause a shortage in supply of our main ingridient in making bibingka.

V. Company Analysis
The Company: Bibingkinitan ( Philippine FoodAsia Corporation)

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Bibingkinitan is one of the brands of Philippine FoodAsia Corporation. Bibingkinitan was

established last 2006 and has grown into one of the leaders in its market in terms of revenues,

market share and market presence. To date, it already has over 200 stores spread in the

Philippines and it is currently branching out to Jakarta, Indonesia. The company is located at

2nd floor UNIOIL Center, Commerce corner Acacia Ave, Madrigal Business Park, Muntinlupa

City. Franchasing for Bibingkinitan is one of the prime movers in the Philippine Franchise

Industry through its innovative and responsible approach to franchising. 70% of total

Bibingkinitan stores are company owned and operated wholly by Food Asia Corporation, and the

remaining 30% are operated by Franchisees.

5.1 MARKETING
Bibingkinitan is one of the prime movers in the Philippine Franchise Industry through its

innovative and responsible approach to franchising. Bibigkinitan is considered as one of the

fastest growing franchising here in the country with an initial investment of 200,000 pesos. But

according to the study by market research firm Euromonitor International, Mister Donut

emerged as the leading kiosk brand in the country with an initial investment of 200,000 pesos.

Based on the price of its initial investment, Bibingkinitan is one of the best choice for investing

money in the food cart industry. Included also in its franchise package deal is the equipment

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used for production which will cost at around 200,000 php. Estimated cost for renovation and

construction is around 300,000 to 500,000 php depending on the size of the store. Security

deposit cost is 100,000 php. The total estimated cost of investment is around 500,000 to

1,500,000 php. The company prefers areas like malls, hospitals, offices, gas stations and free

standing roadside areas to set up the business because these are the places where people usually

go to. According to Richard Sanz, founder of Bibingkinitan, he handled the marketing for the

brand even if he doesnt have any marketing background. He is the one who trains his staff and

that he is very hands down to the last detail of the business.

5.2 FINANCIAL FUNCTIONS

5.2.1 Liquidity Ratio

5.2.1.1 Current Ratio

Year Current Ratio = Current assets/

Current Liabilities
2010 7,872,859.8/13,695,392.18 = .

57
2011 9,730,180.11/14,043,966.59 = .

69
2012 10,326,510.40/16,560,690.50

= .62

The current ratio expresses the relationship of current assets to current liabilities, computed by

dividing current assets by current liabilities. A high currrent ratio suggests a strong liquidity

position and an ability to meet current obligations. For many users, the rule of thumb is that a

current ratio of 2:1 will be a guideline to evaluate a companys debt-paying ability. The current

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ratio of the company for the year 2010 shows a ratio of .57 which is low compared to the rule of

thumb. The company may find it hard to meet its current obligation. The ratio for the year 2011

improved, climbing to a ration of .69. This means that the company was able to increase its

current assets in order to increase the debt paying ability of the company. The ratio dropped

down to .07 places, giving them a ratio of .62. This means that for that year its ability to pay its

current debt was lessen.

5.2.1.2 Quick Ratio

Year Quick Ratio = Quick Assets

assets/ Current Liabilities


2010 (January 1, 2012) 4,416,070.2/13,695,392.18 = .

32
2011 4,503,151.35/14,043,966.59 = .

32
2012 3,865,919.8/16,560,690.50 = .

23

Quick ratio is a measure of a companys immediate short-term liquidity. It differs from current

ratio because it exlcude the merchandise inventory account. A rule of thumb is that the quick

ratio should have a value equal to or higher than 1.0 to conclude that the company is unlikely to

meet immedieate liquidity problems. The companys quick ratio for the year 2010 is .32.

Considering the rule of thumb of 1, the companys ability to convert into cash its quick asset is

low. The same is true for the following year 2011. The case worsen for the year 2012 because it

goes down to .23. The company may find it hard to meet immediate liquidity problems and it can

pose a problem for them in the short run.

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5.2.1.3 Accounts Receivable Turnover

Year Net Credit Sale/Ave. Accounts

Receivable
2010 53,210,288.80/985,678.90 =

53.98 times
2011 75,136,856.72/1,561,209.05 =

48.13 times
2012 116,720,460.71/1,512,799.05 =

77.16 times

Accounts Receivable Turnover shows how many times a company can collect its receivables

from its customers. A high A/R turnover means that the company is highly liquid and it can have

cash in a short span of time. For the year 2010, the company was able to collect its accounts

receivable 53.98 times for that year. It decrease by 5.85 on the following, meaning that they

arent able to collect efficiently its receivables from its customers. The year 2012 is a different

story becase they jumped from 48.13 times up to 77.16 times, meaning that the managemet

somehow find ways to have a more efficient and rapid collection of receivables.

5.2.1.4 Average Collection Period

Year Average Collection Period =

365/Accounts Receivable

Turnover
2010 365/53.98 = 6.76 days
2011 365/48.13 = 7.58 days
2012 365/77.16 = 4.73 days

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5.2.1.5 The Average Collection Period

This shows the average time required to collect account receivable, obtained by dividing the 365

days by accounts receivable turnover ratio. For the year 2010, the company was able to collect its

receivable in 6.76 days. This is effective assuming that the company has a credit term of 10 days.

It increased in the year 2011, having a ratio of 7.58 days. Unfortunately for the company, it

decreased about a half on the year 2012. This means that for the year 2012, the company has a

poor collectiom of accounts receivable for that year.

5.2.1.6 Inventory Turnover Ratio

Year Cost of Goods Sold/Average

Inventory
2010 21,985,608.85/3,456,789.60 =

6.36 times
2011 31,557,479.82/4,341,909.18 =

7.27 times
2012 46,884,497.66/5,484,401 = 8.54

times

Inventory turnover ratio is computed by dividing the cost of goods sold by the average inventory.

Average inventory is the average of the beginning and ending inventory. If a company is holding

excess inventory, it means that the funds are being tied up in inventory that could have been

invested elsewhere for an income. In addition, there will be high carrying costs to store the good

and the risk of obsolesence also exist. The inventory turnover of the company is 6.36, 7.27, and

8.54 for the years 2010, 2011, and 2012 respectively. This indicates decrease in the stocking of

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goods thereby lessening the funds tied up in inventory as well as carring costs and risk of

obsolescence.

5.1.2.7 Average Days in Inventory

Year Average Days in Inventory =

365/Inventory turnover ratio


2010 365/6.36 = 57.39 days
2011 365/7.27 = 50.21 days
2012 365/8.54 = 42.74 days

The average days in invetory is computed the same as the average collection period, the

difference is in the dividend. The dividend for average days in inventory is the computed ratio in

the inventory turnover ratio. This shows the liquidity of invetory and inventory management. The

ratio for the year 2010 is 57.39 days. It gradually decrease until the year 2012, for the given ratio

was 50.21 days and 42.74 days respectively.

5.1.2.8 Operating Cycle

Year Operating Cycle = Average

collection period + Average

days in inventory
2010 (January 1, 2012) 6.76 + 57.39 = 64.15 days
2011 7.58 + 50.21 = 57.79
2012 4.73 + 42.74 = 47.47

The days in operating cycle shows the number of days the company was able to convert its

invetory into cash. The company was able to convert its inventory in just 64.15 days in 2010. Its

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ability to convert inventory into cash decreased as years gone by, giving them 57.79 days and

47.47 days for the years 2011 and 2012 respectively.

5.2.2Leverage Ratio

5.2.2.1 Debt to Total Assets

Year Total Liabilities/Total Assets


2010 (January 1, 2012) 14,695,392.18/20,567,891.30

= .71
2011 15,043,966.59/22,004,651.01

= .68
2012 17,560,690.50/25,017,380.90

= .70

Debt to total asset ratio shows the percentage of total assets provided by creditors. Preferably, the

creditors would prefer a low debt ratio since there is a greater cushion of buffer for creditor

losses if the firm goes bankrupt. For the year 2010, its debt ratio was .71. this is slightly high

which means that it has a greater risk that it may not be able to pay its maturing obligation. The

year 2011 was good for the company in terms debt ratio because it is lower compared to last

years ration. The compay has a ratio of .68 for that year. Unfortunately, it is higher during the

year 2012, having a ratio of .70. The company may find it hard to find creditors that are willing

to lend them money because of its high debt ratio for the past 3 years.

5.2.2.2 Debt to Equity

Year Debt to Equity Ratio = Total

Liabilities/Total

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ShareholdersEquity
2010 (January 1, 2012) 14,395,392.18/5,872,499.12 =

2.45
2011 15,043,966.59/6,960,684.42 =

2.16
2012 17,560,690.50/7,456,690.40 =

2.36

The debt/equity ratio is a significant measure of solvency since a high degree of debt in the

capital structure may make it difficult for the company to meet interest charges and principal

payments at maturity. The risk of running out of cash under conditions of adversity goes high

with a debt position. The company has an excessive debt wich can result in less financial

flexibility since they will fnd it hard to obtain funds during tight money market. The ratios for

the years 2010 to 2012 are 2.45, 2.16 and 2.36 respectively.

5.2.3 Profitablity Ratio

5.2.3.1 Profit Margin Ratio

Year Profit Margin Ratio/Net Sale


2010 (January 1, 2012) 214,449.60/53,210,288.80 = .

004
2011 761,728.81/75,136,856.72 = .

010
2012 340,314.52/116,720,460.71 = .

003

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Profit margin ratio is an important measure of performance since it indicates profitability

generated from revenue. It also provides possilble hints on a companys pricing and cost

structure. For the year 2010, the company has a ratio of .004. It increased by .006 during 2011

and it decreased by .007 during 2012.

5.2.3.2 Gross Profit

Year Gross Profit Ratio = Gross

Profit/Net Sale
2010 (January 1, 2012) 31,224,679.95/53,210,288.80

= .59
2011 43,579,376.90/75,136,856.72

= .58
2012 69,835,963.05/116,720,460.71

= .60

The gross profit margin reveals the percentage of each peso left over after the business has paid

for its goods. The higher the gross profit earned, the better. Gross profit is the excess of net sales

over cost of goods sold. As shown above in the table, there is a slight increase and decrease in

the gross profit ratio of the company. The company has a ratio of .59, .58 and .60 for the years

2010, 2011 and 2012.

5.2.3.3 Operating Expenses to Sales

Year Operating Expenses to Sales =

Operating Expenses/Net Sale


2010 (January 1, 2012) 30,906,976.85/53,210,288.80

= .58
2011 42,491,191.60/75,136,856.72
52 | P a g e
= .57
2012 69,349,799.45/116,720,460.71

= .59

The operating expenses to sales ratio measures the costs incurred to support each peso of sales. It

is computed by dividing operating expenses total by net sales. There is a slight change in the

operating expense to sale ratio of the company, as shown in the table above

5.2.3.4 Return on Total Assets

Year Return on Total Asset = Total

Assets/Total Shareholders

Equtiy
The return on total assets
2010 (January 1, 2012) 214,449.60/20,567,891.30 = .01
2011 761,728.81/21,285,833.55 = .04 indicates the efficiency with
2012 340,314.52/25,017,380.90 = .01
which management has used its available resources to generate income. This is computed by

dividing the profit by the total assets. The year 2010 has a ratio of .01. The year 2011 has a ratio

of .04 and the year 2012 has a ratio of .01.

5.2.3.5 Return on Shareholders Equity

Year Profit/Shareholders Equity


2010 (January 1, 2012) 214,449.60/5,872,499.12 = .04
2011 761,728.81/6,960,684.42 = .10
2012 340,314.52/7,456,690.40 = .005

The ratio measures the rate of return earned on shareholdersinvestment. This is obtained by

dividing the net income by the total shareholders equity. There is an unstable increase and drop

53 | P a g e
in the return earned by the owners of the company, from .04 in 2010, .10 in 2011 and .005 in

2012.

5.2.3.6 Asset Turnover

Year Asset Turnover = Net

Sales/Ave. Total Assets.


2010 (January 1, 2012) 53,210,288.80/20,567,891.30 =

2.59
2011 75,136,856.72/21,286,271.16 =

3.53
2012 116,720,460.71/23,151,607.23

= 5.04

The asset turnover ratio measures how efficiently a company uses its assets to generate sales. It is

determined by dividing net sales by average total assets for the period. The resulting number

shows the peso of sales produced by each peso invested in assets. For the year 2010, the

company was able to generate 2.59 for every peso it had invested in assets. The value constantly

increase during 2011 up to 2012. The salse generated for every peso ot had invested in assets was

3.53 and 5.04 respectively.

5.3 MANAGEMENT

The management of Bibingkinitan lead by its founder Engr. Richard Sanz is obviously

successful, owning a total of 70% of Bibingka stores nationwide and employing 200 people

directly and another 200 at the various Bibingkinitan franchises. Each store by bibingka usually

has personnel of 1-2 persons. Since its foundation, the company improved dramatically,

extending its branch on the southern part of the country and also starting its expansion

54 | P a g e
internationally. According to Sanz, Innovation is part of our strategy and they use this quote as

a guide in order to help the business grown and to achieve what it is today.

5.4 RESEARCH AND DEVELOPMENT

Recent and developments for the company was the integration of an inventory tool to its

information facility that cost them for about a million pesos. The company purchased SAP

business One which is attached in its IT infrastructure. SAP Business Online is designed to

integrate the various systems of a business, providing a single comprehensive and functional

solution for the process needed to run a business such as finance lease, sales customers, e-

commerce, inventory and operation. It allowed the company to transfer data from its

Bibingkinitan outlets to the central office with less human intervention, thus ensuring greater

accuracy. Sanz also added the Business plus in order to stay connected to the office. Business

plus is the customizable postpaid plan offered by Globe Business that allows entreprenuers to

choose the mobile services that best suit them and pay only for what they needed. It comes with

various tack-on services such as unlimited calls, texts, mobile browsing and Business loop, as

well as Duo and SuperDuo.

5.5 REVENUE AND SALES

Revenue of the company for the years 2010 to 2012 coming from its Statement of

Comprehensive Income from its Financial Statement is shown as follows:

Year Sales
2010 53,210,288.80
2011 75,136,856.72
2012 116,720,460.71

55 | P a g e
As stated above, the revenue of Bibingkinitan is constantly increasing as years pass by. We can

see that for the last 2 years, it had doubled its sales. The company earned 53,210,288.80 pesos

during the year 2010 and it increase by almost 100 % during the year 2012. It has 75,136,856.72

and 116,720,460.71 pesos of revenue for the years 2011 and 2012 respectively.

5.6 INTERNAL FACTOR EVALUATION MATRIX (IFE)

Key Internal Factors Weight Rating W.S

Strenghts o

1. Uniqueness of their product .15 4 .60

2. Affordable Price .20 4 .60

3. Conversion of some of its stores into bigger cafe-

type stores with seating areas for our customers .05 1 .05

4. Variation of bibingka .05 2 .10

5. Using of Business Plus (Globe business) to stay

connected to the office .05 3 .15

Weaknesses s

1. Large initial investment can hinder the expansion of


the company .05 3 .15

56 | P a g e
2. Lack of advertisement, especially brochures and
leaflets in their stalls. .10 3 .30
3. Weak distribution networks. .05 3 .15
4. Seasonal product .20 4 .80
5. Other people tend to choose less the
local delicacies .10 2 .20

Total 1.00 3.10

The Internal Factor Evaluation (IFE) Matrix earned a total weighted score of 3.10. For the

company, the uniqueness of its product and its affordability is its biggest strength. It earned them

a weighted score of .15 and .20 respectively. Both Strengths also have the highest rating with a

rating of 4 for each internal factor. On the other hand, its biggest weakness the seasonality of its

product. It has a weight and rating of .20 and 4 respectively. The company must find ways to

attract its customers to purchase their product all through out the year even if the demand for

their products rises only when the Christmas season is approaching.

Strengths:

1. Uniqueness of their product Bibingka offers bibingka which is smaller than the

traditional size of bibingka. The uniqueness of the apperance of their product is a strength

of the company because it is a means to open the curiosity of their market. Opening the

cuiriuosity of a person will enable him to look for answers. Since most people are not

used to a small bibingka, then they will have look for a vendor which offers a small

bibingka.

57 | P a g e
2. Affordable Price The price of their products is much lower compared to the price of the

products of their competitors. This is another strength of the company because they are

able to sell their product at a low price but still able to earn profit given that price. They

are also able to attract more customers because of the low price of their products. Having

an affordable price at todays world is a big strength for any company.


3. Conversion of its stores into bigger cafe-type stores with seating areas for our customers

The conversion of their stores into bigger cafe-type stores is also a strength of the

company because having a bigger place means the company could accomodate more

people. Accomodation of more people means that the company will have more customers

who will patrionize their products, which is a good thing for any business. They could

provide people with a relaxing and smooth atmosphere which will become a reason for

the people to visit their stores frequently.


4. Variation of bibingka The company provides for variation in taste of their bibingka.

Having a variety to choose from is a strength because they are giving their customers

more freedom to pick what they want. They are also providing their customers with a

product in which is not yet offered in the public, thus they are gaining an edge as against

to their competitors.
5. Using of Business Plus (Globe business) to stay connected to the office The use of

Globe business is a strength of the company because they are able to have an update of

what is happening inside and outside the company. They are able to check if the company

is operating well and if they are meeting the target of the company. The use of such

technology enables the owners to have an online view of the company anytime of the day.

Weaknesses:

58 | P a g e
1. Large initial investment can hinder the expansion of the company Having a large initial

investment could scare away investors thats why it is a weakness for the company.

Compared to other companies, the initial investment in our business is quiet high

compared to them. The company must find ways to lower the amount that investors

would pay in order to start up their own franchising business. It can hinder the expansion

of the company because prospective investors from other parts of the country could be

turned off because of the large capital needed to start the business.
2. Lack of advertisement, especially brochures and leaflets in their stalls For the company,

having lack of advertisement is a major weakness for them because they are not reaching

the people with the news and updates about their company. Advertisement is a major

factor in a success of a business because through it, we are spreading the information not

only about the products but also about the operation of the company. As against to other

competitors, their advertisement is a big factor on the promotion of the company, thats

why we are left behind in terms of advertisment.


3. Weak distribution networks Having a weak distribution network is a weakness for the

company because its raw materials may not reach its destination due to the weakness of

its distribution lines. This is a weakness that should be treated by the management in

order to minimiz the delay in the delivary of their products. Management must improve

their networks to minimize the risk of loss for every delay that they will encounter during

delivery.
4. Seasonal product The seasonality of the product of the company is a weakness because

the demand for the product is unstable. The demand for the product is high only during

its season, and it declines after the season. For the company it is a weakness because the

seasonality of the product affects the taste and prefences of the buyers. Unlike the

59 | P a g e
products of its competitors, they are prefered all year long compared to the product of the

company, which can affect the sales of the business.


5. Other people tend to choose less the local delicacies It is a weakness because the

company must overcome with ways in order to satisfy the taste and preferences of its

consumers as compare to other products. Internally, it must find ways to innovate its

product so that it could compete with others.

60 | P a g e
VI. Strategy Formulation

6.1 SWOT MATRIX

Strengths: Weaknesses:
1. Uniqueness of 1. Large initial
products investment can hinder
2. Affordable Price in the expansion of the
3. Conversion of some of company (Php
its stores into bigger 500,000-1,500,000)
caf-type stores with 2. Weak distribution
seating areas for our networks
customers 3. Seasonal Product
4. Variation of bibingka 4. Other people tend to
5. Using of Business Plus choose less this local
(Globe business) to delicacy
stay connected with 5. Lack of advertisement,
the office especially brochures
and leaflets in their
stalls.
Opportunities: SO Strategies: WO Strategies:
1. Dominating the 1. Diversifying of 1. Providing of Filipino
market in terms of products with delicacy which are in
providing the affordable price demand regardless of
people with (S1,O5) the
bibingka 2. Day to day update of season(W4,W3,O5)
2. Overseas the business in case of 2. Advertisement thru
Expansion in other expansion outside the referral from our loyal
countries starting country(S5,O2) customers (W5,O3)
with Jakarta, 3. Cafe-type stores mean
Singapore, bigger space for
Hongkong and Las customers, which also
Vegas. means more
3. Our target market customers(S3,O3)
is the C and D
market which
represents the
greatest percentage

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in the population.
4. Expanding the
range of the
company thru
opening new jobs
and franchises.
5. Providing other
Filipino delicacy
such as
putobumbong
Threats: ST Strategies: WT Strategies:
1. Innovation of other 1. Set the most affordable 1. Reduction in the price
food business can pull price as possible to of initial investment to
our customers away lessen the effect of make it affordable
from us. economic distress to even with high rate of
2. Creation of other our customers (S2,T4) inflation(W1,T4)
unique products. 2. Variation of products 2. Promote bibingka as
3. Entry of foreign brands can lessen the chances not just your seasonal
which are more of our customers being delicacy but also a
popular than the pulled by the snack that you can
company. competitors(S4,T1,T2) grab anytime of the
4. Inflation rate which 3. Innovation to improve year(W3,T1,T2)
can affect the our products to 3. Improve the
purchasing power of compete with the distribution networks,
the people. competitors(S1,T1) especially when
5. Unforeseen calamities unforeseen calamities
which can damage our happen.(W2,T5)
raw materials in
making our products.

Strategies:

Intensive Strategies (Market Penetration, Market Development, and Product Development)

Integration Strategies (Backward, Forward, and Horizontal Integration)

6.2 STRATEGIC POSITION AND ACTION EVALUATION MATRIX (SPACE)

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INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC POSITION

Financial Position (FP) Stability Position (SP)

(+1 worst, +6 best) (-6 worst, -1 best)

(+3) Working Capital (-1) Barrier to enter

(+4) Return on Investment (-4)Competitive Pressure

(+2)Leverage (-2)Price range of competing products

(+3) Inventory turnover (-3)Demand Variability

Average: 3.00 Average: -2.50

Competitive Position (CP) Industry Position (IP)

(-6 worst, -1 best) (+1 worst, +6 best)

(-4) Customer Loyalty (+3) Financial Stability

(-3)Product quality (+2)Growth Potential

(-4) Market Share (+2)Ease Of Entry Into Market

(-3)Product life cycle (+3) Productivity, Capacity utilization

Average: -3.5 Average: 2.5

TOTAL X-AXIS SCORE: .5

TOTAL Y-AXIS SCORE: -1.5

63 | P a g e
Strategies:

Intensive Strategies (Market Penetration, Market Development, and Product Development)

Integration Strategies (Backward, Forward, and Horizontal integration)

64 | P a g e
6.3 INTERNAL EXTERNAL MATRIX (IE)

IFE 3.1 STRONG AVERAGE WEAK

3.0 4.0 2.0 2.99 1.0 1.99


EFE 2.09

I II III
HIGH

3.0 4.0

IV V VI
MEDIUM

2.0 2.99

VII VIII IX
LOW

1.0 1.99

- Backward, Forward and Horizontal


Diversification
- Market Penetration
- Market Development
- Product Development
GROW AND BUILD

65 | P a g e
For the Internal-External (IE) Matrix, Bibingkinitan has an EFE and IFE rating of 2.45 and 3.10

respectively. The company, under its parent company Philippine FoodAsia Corp. falls in the

fourth quadrant of the matrix which signifies that the company has a medium external position

and a strong internal position; therefore it must add additional resources, allocate its resources

properly and have a proper branding in order to build and establish the name of the company. On

the other hand, in order to maximize the growth of the company, it must increase its sales and

expand the range of the firm in order to increase its growth. The result of this matrix was derived

from the total IFE and EFE weighted score. Being in the fourth quadrant indicates that the

growth and build strategies appropriate for Bibingkinitan are as follows:

Intensive Strategies (Market Penetration, Market Development, and Product Development)

Integration Strategies (Backward, forward and horizontal Integration)

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6.4 GRAND STRATEGY MATRIX (GSM)

QUADRANT II QUADRANT I

Market development Market development


Market penetration Market penetration
Product development Product development
Horizontal integration Forward integration
Divestiture Backward integration
Liquidation Horizontal integration
Concentric diversification

QUADRANT III QUADRANT IV

Retrenchment Concentric diversification


Concentric diversification Horizontal diversification
Horizontal diversification Conglomerate diversification
Conglomerate diversification Joint ventures
Liquidation

Bibingkinitan is positioned in quadrant II of the Grand Strategy Matrix. It indicates that the firm

needs to assess and evaluate their current approach to the marketplace more seriously. Despite of

being known as the number one bibingka chain in the Philippines, it must develop its product in

order to get a wider target market. The company must also diversify and innovate it products in

order to become competitive not only during the Christmas season but also throughout the year.

In terms of market development, since they already captured the C and D market of the

population, they must now find ways to cater the other classes. They should also expand

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internationally to cater more people in order to develop their market. For this quadrant intensive

strategies and integration strategies are recommended in order to create and gain competitive

advantage.

6.5 QSPM

MARKET MARKET PRODUCT


KEY FACTOR WEIGHT PENETRATION DEVELOPMENT DEVELOPMENT

OPPORTUNITIES AS TAS AS TAS AS TAS


1. Dominating the
market in terms 0.18 3 .54 4 0.72
of providing the
people with this
local food.
2. Overseas
expansion in 0.18 3 .54 3 .54
other countries
starting with
Jakarta,
Singapore,
Hongkong, and
Las Vegas.
3. Our target
market is the C 0.10 2 .2
and D market
which
represents the
greatest
percentage in
the population.
4. Expanding the
range of the 0.06 2 .12
company thru
opening new
jobs and
franchises.
5. Providing other
Filipino 0.05 4 0.36 4 0.36

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delicacy (such
as
putobumbong)

THREATS
1. Innovation of 3 .21
other food 0.07 3 .21
business can
pull our
customers away
from us.
2. Creation of .30
other unique 0.10 4 .4 3
products.
3. Entry of foreign
brands which 0.20 4 .8
are more
popular than the
company.
4. Inflation rate
which can 0.03 3 0.09
affect the
purchasing
power of the
people.
5. Unforeseen
calamities 0.03 3 .09
which can
damage our raw
materials in
making our
products.

STRENGTHS
1. Uniqueness of
their product. 0.15 3 .45
2. Affordable
price. 0.20
3. Conversion of
some of its 0.05 3 .15 3 0.15
stores into

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bigger cafe-type
stores with
seating areas
for our
customers.
4. Variation of
bibingka. 0.05 3 .15 4 0.2
5. Using of
Business Plus 0.05
(Globe
business) to
stay connected
to the office.

WEAKNESSES
1. Large initial
investment can .05
hinder in the
expansion of
the company.
(Php 500,000-
1,500,000)
2. Lack of
advertisemen, 0.10 3 .3 3 .3
especially
brochures and
leaflets in their
stalls.
3. Weak
distribution 0.05 3 0.15
networks.
4. Seasonal
product. 0.20 4 0.8
5. Other people
tend to choose 0.10 1 0.1 2 0.2
less this local
delicacy

TOTAL 2 3.26 2.92 2.11

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Legend: 4 Highly Attractive 3 Reasonably Attractive 2-Somewhat
Attractive 1 Not Attractive

VII. Strategic, Objective and the Recommended Strategies


A. Strategic and Financial Objectives
Through the effort and cautious analysis of the researcher, he found out that

Bibingkinitan is already a established brand here in country, extending its range from the

northern part of Luzon up to the southern part of Mindanao. Bibingkinitan is also one of

the fast growing franchising business here in the country, and they posed a big threat as

against to their competitors here in the country especially to Brownies Unlimited.

However, Brand recognition is one of the weakness of company, meaning that even

though they are known locally, still there are other brands who are more popular than

them, just like the case of Mister Donut. Mister Donut still dominates the market as

against Bibingkinitan and Brownies Unlimited because of its brand recognition. They are

already known internationally and they are already operating in the business for more

than 30 years thats why it is a huge advantage for them and it is a disadvantage to the

other company. The company must also prioritize in its advertisement because it affects

the image of the company. Lack of advertisemet is also a cause of lack of recognition of

the brand, thats why they should address this problem in order to turn this weakness into

a strength in the long run. In terms of their financial standing, the researcher can say that

they are financially stable and are going to the right direction. However, they must

71 | P a g e
maintain the way they are returning the investment of its stockholders in order to satisfy

the shareholders and to ensure that they will never run out of people who can finance the

budget of the company.

To summarize this, here are the following main objectives of Bibingkinitan that needs to

be prioritized or meet:
- Update its website in order to let people know that they are always active and to

promote the name of the company internationally thru the internet.


- The company must compete with their competitors, like hiring well-known actors to

endorsed their products and ensuring that each store have enough leaflets and

brochures so that people could learn about the producs that the company offers.
- For the next five years, its Return on Shareholders Equity must increase atleast 1%

each year to increase the wealth of its shareholders.


- By the year 2020, at least 80 % of its stores should be converted into cafe-type areas

in order to attract more customers and to be more appealing as against its competitors
- Offer other Filipino delicacy to promote patriotism and to diversify their products.

The researcher suggest that they should start to offer putobumbong, another classic

local delicacy which is in demand during Christmas season so that they could offer

another on the season product all through out the year.

7.1 Recommended Vision/Mission Statement

7.1.1 Revised Vision Statement

- It is our vision to make Filipino food and delicacies known to the whole world and to

compete side by side with the international brands.

72 | P a g e
7.1.2 Revised Mission Statement:

- It is our mission to provide great tasting bibingka to our customers and to provide not

only the country but also the whole world a taste of the Filipino tradition. By doing

so, we will emphasize in training our staffs and employees to maximize their full

potential and to adapt to technological changes the world has to offer. We will make

sure to give the people what they want and to deliver to them the Filipino values and

to provide our company a positive operating results in order to continue in competing

in the international scene.

9 Yes No Remarks:

Components
1. Customers X The statement to provide great tasting bibingka to our

customers clearly shows how we will cater our customers.


2. Product or X ". . .to provide great tasting bibingka this statement

Service describes the quality of its product


3. Markets X . . .and to provide not only the country but also the whole

world a taste of the Filipino tradition. . . it shows that it

will expand the range of it market globally


4. Technology X Bibingkinitan will adapt to technological advances, as

stated. . . .to adapt to technological changes the world has

to offer. . .
5. Concern for X . . .to provide our company a positive operating results in

survival, order to continue in competing in the international

growth and scene. . . this statement shows that they are concerned with

profitability the growth and profitability of the company

73 | P a g e
6. Philosophy X The statement, . . . deliver to them the Filipino values. . .

shows that the company will operate with values.


7. Self-Concept X The company should define itself in order to differentiate

them from their competitors. Suggested statement would be

to become the most wanted bibingka vendor


8. Concern for X The firm has the concern for public image with the

Public Image: statement We will make sure to give the people what they
Is the firm
want
responsive to

social,

community,

and

environmental

concerns?
9. Concern for X The company shows there concern for their employees in

Employees: the statement we will emphasize in training our staffs and


Are employees
employees to maximize their full potential
a valuable

asset for the

firm?

B. Recommended Business Strategies


With the results of all the matrices in this paper, it is concluded that intensive strategies

are advised to Bibingkinitan. These three (3) intensive strategies are Market

Development, Product Development and Market Penetration. By doing these strategies,

74 | P a g e
they could gain more competetive advantage and improve their internal stabiliy as against

to their competitors.
a. Market Development This strategy includes global expansion. Since the company is

already operating all over the country, they must now expand internationally to gain

brand recognition and to compete side by side with the foreign brands. They should

also start expanding out of the country because in the current world it is a way to

survive the harsh environment of competition in the industry.


b. Product Development The company must alsto start to develop its product. As of

now, there are only three primary products being offered by them, these are (1)

bibingka, (2) kapeng barak, and (3) fruit juices. They must to diversify into other

product in order to offer the market with a variety of choices. Having a variety means

increasing the range to capture the taste and preferences of the people, and this have a

positive feedback for the company in the long run.


c. Market Penetration The company now increase their visibility in the market.

Training the marketing team with technological advances will increase their ideas or

new approach for visibility in the market. They must also increase their publicity in

order to attract the other markets and to make the brand known to the people who are

not a fan of their products.

C. Recommended Organizational Strategies


Generally, internal issues are the hardest to address because it affects the way how the

management manage the company. If these issues are not addressed properly

immediately, then the organization could have a hard time answering this problems and it

could harm the company. Internal stability may be gained by informing all of the people

inside its organization of the revised mision and vision from top level management up to

the rank and file employee.

75 | P a g e
- Update its website in order to let people know that they are always active and to

promote the name of the company internationally thru the internet.


- The company must compete with their competitors, like hiring well-known actors to

endorsed their products and ensuring that each store have enough leaflets and

brochures so that people could learn about the producs that the company offers.
- For the next five years, its Return on Shareholders Equity must increase atleast 1%

each year to increase the wealth of its shareholders.


- By the year 2020, at least 80 % of its stores should be converted into cafe-type areas

in order to attract more customers and to be more appealing as against its competitors
- Offer other Filipino delicacy to promote patriotism and to diversify their products.

The researcher suggest that they should start to offer putobumbong, another classic

local delicacy which is in demand during Christmas season so that they could offer

another on the season product all through out the year.

D. Strategy Map

Visibility of Mission
and Vision
Enhancement of
Statement
Employees

- Keeping and
recruiting star
employees
- Training

Internal Stability

- Update its website


- Enhance its
advertisment thru
famous people

76 | P a g e
Customer Financial Growth and
Stability
- Conversion of
stores into cafe- - Increase the
type places wealth of its
- Offering of new stockholders
products

Main Business Strategy

- ROE should increase


atleast 1% per year.

E. Financial Projection and overall evaluation of the strategies

Consolidated financial
Statement
(%) Increase
2010 2011 2012 per year
Revenue 53,210,288.80 75,136,857 116,720,461 0.553438163
Net Profit after
tax 214,450 761,729 340,315 0.58692075
Current Assets 7,872,860 9,730,180 10,326,510 0.061286665
Non-current
Assets 12,695,032 12,274,471 14,690,871 0.19686385
Total Assets 20,567,891 22,004,651 25,017,381 0.136913323
Total Liabilities 14,695,392 14,043,967 17,560,691 0.250408165
Total Equity 5,872,499 6,960,684 7,456,690 0.07125822

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F. Departmental Programs

ACTIVITIES TIMETABLE EXPECTED PERSON/DEPARTMENT

OUTPUT RESPONSIBLE
General Every six months To update the Marketing Department

Assembly employees for the

new promotions so

that visibility of the

new promotion will

be fast and strong.


Keeping star Every month To have a strong Human Resource

employees and roster of employees Department

train their talents and keep the

competitive

advantage,

unproductive

employees must be

78 | P a g e
terminated
Create Seasonal Every year New and enticing Marketing Department

products product provided in

the market in which

it could capture

easily the taste and

preferences of the

market
Research about Every 4 months To keep the firm on Research and

the industry and trend and updated Development

create new

promotions
Monitor the Every start and To see new Marketing Department

performance of end of the year opportunities and and Research and

competitors and the real competitive Development Department

their rates per position of the

year company.
Meetings with Every half of the Building Human Resource and Top

business partners year relationship with Management

about future business partners to

actions and plans. let them contribute

with the stability of

the company
Customer Quarterly To measure Operations and production

Evaluation customer Department

Report preferences to

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engage relationship

with the

members/customers
Evaluation and Yearly To build internal Top management and

assessment stability and create Human Resource

internally for the new programs to Department

whole company replace job rotation

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VIII. Strategy Evaluation, Monitoring and Controlling

8.1 Balanced Scorecard


8.1.1 Learning and Growth Perspective

Goal Measures Targets Initiative


Employee Efficient Engage employees in 50% Releasing and utilizing

and employees to training and employees full talent

become star development and Potential with the

employees use of training and

development

8.1.2 Customer Perspective

Goal Measures Targets Initiative


Customer Preferences Customer Evaluation 30% Customer evaluation

and Brand and proper promotion sheets and reports for

Recognition of the services that is production and

rendered by the operation team,

company Upgrade Marketing

efforts (i.e. promotion

and advertisement)

8.1.3 Financial Perspective

Goals Measures Targets Initiative


Increase the ROE and Widen the network of 20% Increase number of

Increase Sales the company branches by at least 10

internationally

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8.1.4 Internal Process

Goals Measures Targets Initiative


Increase the number Look for high end 40% Acquire these

of equipment in equipment to be used equipments in order to

production in producing goods maximize the

production output of

the company.

References:

Online Resources:

http://www.browniesunlimited.com/products
http://www.misterdonut.ph/faq

http://www.worldometers.info/world-population/philippines-population/

http://www.lawphil.net/statutes/repacts/ra1992/ra_7394_1992.html

http://www.philstar.com:8080/business-usual/665532/bibingkinitan-owner-innovative-business-

tool-important-facet-trade

https://finder.kanegosyo.com/franchise/about/81/bibingkinitan

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https://www.google.com.ph/url?

sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&sqi=2&ved=0CDQQFjAE&url=

http%3A%2F%2Ffranchisemanila.com%2F2012%2F12%2Fbibingkinitan-franchise

%2F&ei=rwv3VIKAOuXlmAXTuILwBA&usg=AFQjCNEuNwhH1Frvxu8fcr9UKHn2b9lUuQ

&sig2=hOvBAT0GMSzBE4PRUCuwQw

http://www.misterdonut.ph/faq

http://www.entrepreneur.com.ph/directory/franchise-directories/food-and-snack-cart/entrepinoy-

foodcart-business

http://manilastandardtoday.com/2013/09/29/food-cart-guru-gives-tips-on-successful-business/

https://www.google.com.ph/search?

newwindow=1&q=how+to+quote+from+a+website&oq=How+to+quote+f&gs_l=serp.1.1.0l5j0i

20l2j0l3.692054.703925.0.705903.61.28.5.3.3.2.589.4543.2-

6j2j3j2.13.0.msedr...0...1c.1.62.serp..43.18.3496.0.VTt7AF9DG9A

http://www.bibingkinitan.com/2011/03/23/bibingkinitans-business-systems-integration-a-sound-

investment/

Books:

DAVID, Fred R. Strategic Management Concepts and Cases,13th edition. Jurong: Pearson
Education South Asia Pte. Ltd.,

Fundamentals of Accounting Volume 2 Partnership and Corporation (2012 Edition)


Patricia M. Empleo, et al.

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