JMJ

Marist Brothers
NOTRE DAME OF DADIANGAS UNIVERSITY
Graduate School
General Santos City

In partial fulfilment of the course BA 211: Business Policy

Submitted By:

Karen Joy Bejarin

Eloisa Jane Onez

Princes Elizabeth P. Peñafiel

Gladys Faith Lebosada

Gellie Mae Franklin

Mahathir Bayena

Cathlyn Ruth Villaflor

Carolyn Nicole Cordero

Liezel Marie Pace

JoanMarie Muñez

Submitted To:

Ms. Denise Meryl H. Javellana, CPA MBA

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I. Current Situation

A. Current Performance

 Started with online selling of “Kakanin in Bilao” with only P1,500.00 start-up

capital.

 Earned 2,600 php on its first delivery with an ROI of 173.33%.

(P2,600/1,500)

 First physical store at Bula Road, General Santos City with a start-up capital

of P1,000,000.

B. Strategic Posture

1. Mission

 Opened July 2016 without set mission and vision.

 Developed and opened physical store in June 2019: Make and serve

reasonably priced delicious quality foods quickly and courteously in modern,

attractive and clean surroundings. Dedicated to provide highest quality of

customer satisfaction delivered with a sense of warmth, friendliness,

individual pride and company spirit.

2. Objectives

• To deliver the most value for the least possible total cost.

• To serve a reasonable delicious quality product of foods.

• To continuously strive for quality and brand loyalty.

• To boost overall profits by optimizing productivity.

• To give the best service and a feeling of sense of warmth to our

valued customer.

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3. Strategies

 Constant advertisement through social media (eg; Facebook and Instagram)

- taking photos of customers and posting it on social media

 Improve customer service

- attentive to what the customer needs (e.g. suggest best sellers when

customer is choosing)

- complete customer orders

- good reviews will attract customers

4. Policies

 Work Schedules - Is open daily, through Monday to Sunday from 9:00 am

to 8:00pm. We schedule employees for various shifts depending on the

Restaurant’s needs. There are 2 days Shifts regular 8hours shifts daily for

full-time employees. Employees may request specific shifts, but the

Restaurant cannot always accommodate your preferences. When the

Restaurant is able to honor employee requests, to the extent reasonably

possible we will fulfill requests based on your seniority in the Restaurant.

 Overtime - Because of the nature of the restaurant business, your job may

periodically require overtime work. If the Restaurant requires that you

work overtime, we will give you as much advance notice as possible. You

should not work overtime hours without prior approval by the owner.

Employees working the last shift of the day may be asked to do

side work—cleaning up in preparation for the next day. If you believe that

doing side work will cause you to work overtime (i.e., exceeding 40 hours

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 in one week), you should get permission from owner before working

overtime.

 Attendance and Punctuality - It is important for employees to report to

work on time and to avoid unnecessary absences. The Restaurant

recognizes that illness or other circumstances beyond their control may

cause them to be absent from work from time to time. However, frequent

absenteeism or tardiness may result in disciplinary action up to and

including discharge. Excessive absenteeism or frequent tardiness.

 Treatment of Guests - It is essential for them to make our guests feel

welcome and them extend the highest courtesy at all times to our guests as

well as to co-workers and others. A cheerful and positive attitude is

essential to our commitment to extraordinary customer service and

exceptional quality.

 Performance Reviews, Salary Reviews - New employees’ performance

will have their review at the end of your first (3) months of employment

with the Restaurant. Thereafter, performance reviews will normally be

conducted annually on or about your anniversary date. All performance

reviews will be completed in writing by the owner on the form designated

by Restaurant management, and reviewed during a conference with them.

Factors considered in their review include the quality of their job

performance, their attendance, meeting the requirements of their job

description, dependability, attitude, and cooperation, compliance with

Restaurant employment policies, any disciplinary actions, and year-to-year

improvement in overall performance. Compensation increases may be

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 given by the Restaurant at its discretion in consideration of various factors,

including your performance review.

 Sanitation - The nature of a restaurant environment allows bacteria to be

easily transferred from one person to another. Consequently, they must

exercise extraordinary care to be clean at all times. Wash their hands

frequently. Handle food carefully in accordance with procedures explained

by our Restaurant by being conscientious about cleanliness and sanitation

in all of their work in the Restaurant, can help protect their own health as

well as that of guests, co-workers, and others.

 Payroll Practices - Employees are paid monthly, on or about the 15th and

30th of each month. If the regularly scheduled payroll date falls on a

Saturday, the Restaurant will attempt to deliver pay checks on Friday. If

the regular payday falls on a Sunday, employees will be paid on Monday.

When a payroll date falls on a holiday, employees will, when possible, be

paid on the last business day before the holiday. Otherwise, employees

will be paid on the first business day following the scheduled payroll date.

II. Corporate Governance

See Exhibit 1 (Organizational Chart)

A. Board of Directors

1. Sole proprietorship type of business organization.

2. Owned and managed by family members.

3. Well-trained and experienced entrepreneurs.

B. Top Management

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 1. One manager owner; one dining supervisor.

2. Very experienced in the food industry.

3. All are responsible in the achievements and success of the firm.

III. External Environment (EFAS): Opportunities and Threats

See Exhibit 2 (EFAS Table)

A. Natural Environment
1. Natural phenomenon that can affect harvest and can demand prices of all
staple ingredients such as meat, poultry, seafood and vegetables.
2. Seasonal production and availability of fresh herbs, fruits and vegetables
needed and could add value on some menus.
3. Natural calamities like heavy rains that can hinder customers to go to the
stores and even causes delays on delivery services.
B. Societal Environment
1. Economic
a. Inflation rate that dictates the behaviour of the economy. (T)
b. Local wet market vendors earned and improved their lives at the same
time offers discounts and competitive prices on their goods to their regular
customers. (O)
2. Technological
a. With the use of technology such as online mobile apps and other facebook
page advertisements, customers can easily access or choose to the menus
offered by the restaurant. (O)
b. Less cost advertisement strategy, by using social media the establishment
can be easily well known. (O)
c. With the use of technology, establishment operations can easily be done
which can give fast service to their customer. (O)
3. Political-Legal
a. Government urges food and non-food businesses to use environment-
friendly primary and secondary packaging, utensils and others stuffs.

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 Instead of using disposable utensils, plates, straws, etc in restaurants, they
encouraged using reusable and plant based items. Not only help preserve
the environment but also minimize costs on such items. (O)

4. Sociocultural
a. Restaurants are part of life’s celebration. (O)
b. Customers want services where they feel at ease, prioritized and directly
responded. These are true to working, busy person, students and even on
regular person. (O)
c. With the help of friends and other referrals aside from advertisements or
marketing through the use of facebook, the firm can have an additional
and possibly be a regular customer. (O)
d. Others are unlikely to order for delivery or eat out rather spend time
preparing food at home making sure they will have a quality and nutritious
food for their loved ones. (T)
C. Task Environment
1. Rivalry High. Globally competitive established food chains such as
Jollibee and Mcdonalds and even those that are locally available such as
Joanns, Mix n’ Magic and others also caters delivery services and has their
own uniqueness. (T)
2. Buyer’s Power High. Regular customers like those working in the offices
around city proper and some were loyal customers from previous catering
and delivery services prior physical store was built. (O)
3. Supplier’s Power Low. Staple ingredients are available in wet market and
malls supermarket(O)
4. Threat of Substitutes Low. Rice and viand - basic pair here in
Philippines. R2 Foodies also offers pasta, vegetable salads and the like.
(O)
5. Threat of New Entry High. Many business owners are now interested
into food business industry since people nowadays are into food trips. (T)

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IV. Internal Environment (IFAS): Strengths and Weaknesses

See Exhibit 3 (IFAS Table)

A. Corporate Structure
1. Family Owned Business- they strive together to make the business grow (S)
2. Division of Labor- the functional units are working smoothly (S)
B. Corporate Culture
1. Fresh ingredients- the owner purchased fresh vegetables and meat (S)
2. Family Treatment to Employees- giving fair salary and appreciates employees’
efforts (S)
C. Corporate Resources
1. Marketing- prices are set within the capacity of middle class (S)
2. Finance- No established system of recording and analyzing profits (W)
3. R & D- Continually searched for new recipes that are trending (S)
4. Operations- Has only 2 burners so food are not served at the same time (W)
5. Human Resources- Staff needs to be retooled in serving customers with delight
(W)
6. Information Systems- No plans yet to commit resources needed to stay
competitive (W)
D. Operations
1. Offer products that are similar to what the other players offer like their spaghetti,
fries, garlic chicken, squid rings etc. (W)
2. The food comes out piecemeal since they just have 2 gas burners (W)
E. Human Resources
1. Owners have very good relationship with employees (S)
2. The benefits and salary of the chef and waiters/waitresses is good (S)
3. Staff lack training when it comes to serving customers with a delight (W)

V. Analysis of Strategic Factors (SFAS)

See Exhibit 4 (SFAS Table)

A. Key Internal and External Strategic Factors (SWOT)

1. Strengths
a. Variety of cuisine offered.
b. Low-priced menu.

2.Weaknesses
a. Inadequate staff training.
b. Disorganized financial recording system.

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 3. Opportunities

a. Product and service innovation and differentiation.

b. Marketing strategy improvement.
c. Partnership with local wet market vendors.
d. Branch expansion and possession.
e. Technology and management system utilization.

4. Threats

a. Competition with established and soon-to-open food businesses.

b. Rapid change of customer preference.
c. Potential rising price of raw materials and other commodities.
d. Continuous rising of inflation rate.

B. Review of Current Mission and Vision

1. The current mission of R2 Foodies appears appropriate.

2. Some of the set objectives of R2 Foodies are need to be quantified and needs

time to be materialize.

V1. Strategic Alternativesand Recommended Strategy

A. Strategic Alternatives

See Exhibit 5 (TOWS Matrix)

 As we look back on our strategies and findings, and on the study itself, given the

sufficient equipment, capital and right decision making our plan could turn into a

genuinely straightforward expansion to the developing side of running a restaurant.

The key factors for success being identified and strategies being researched

thoroughly, we conclude that the R2 Foodies will have a positive growth both in

short and the long run of the business. However, even though the R2 Foodies has a

very good potential in competing in the restaurant industry, large food chain

companies in the Philippines are threat for the business.

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 B. Recommended Strategy

 One of the main focuses of the Philippine government is to help local MSMEs to be

developed into a successful entrepreneur. Ergo, we recommend that the R2 Foodies

should cooperate and be active to different government programs because based on

various factors, researches, and surveys we have gathered throughout the study,

exploiting every opportunity that the business could have would mean efficiency

and effectiveness for the business. In this way, we can successfully implement our

strategies to keep the R2 Foodies competitive in the market with lesser cost and

greater benefits.

VI. Implementation

See Exhibit 6 (Implementation Table)

A. The only way to improve supply management throughout supply chain is to select

proper supplier that lower product cost.

B. Canvass delivery equipment and assign/hire personnel and create a loyalty program,

such as a free delivery or package deals that offer a flat price for a certain number of

deliveries.

C. Develop a sales plan, offer coupons and discounts and maximize engagement and

customer connection with Social Media.

D. Launch more foods and beverages that are nutritious.

E. Canvass supplier that offers quality raw materials and check the quality of the

materials.

F. Purchase of additional cooking equipment and conduct a hiring activity.

G. Do a weekly toolbox meeting

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VII. Evaluation and Control

See Exhibit 6 (Evaluation Table)

 For the company’s Expansion the following internal control is needed: conduct

feasibilty study, do a site inspection, provide bill of quantities, planning and designs,

have a monthly monitoring of Sales and then provide shoutout /suggestion box for

comments and reviews and lastly, identify competitors in the market.

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Exhibit 1.0

Organizational Chart

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Exhibit 2.0

External Environment (EFAS)

EXTERNAL FACTORS WEIGHT RATING WEIGHTED COMMENTS

SCORE
Opportunities
1. Product and service innovation 0.15 4.0 0.60 More food options and quality
and differentiation. services.
2. Marketing strategy 0.15 4.0 0.60 Provide easy and convenient
improvement. access to customers.
3. Partnership with local wet 0.05 2.0 0.10 Patronized local vendors and
market vendors. earn discounts.
4. Technology and management 0.10 3.0 0.30 Track financial and operational
system utilization. transactions.
5. Branch expansion and 0.15 4.0 0.60 Additional profit, brand
possession. positioning and eliminate
monthly expenditures on
rentals.
Threats
1. Competition with established 0.15 3.0 0.45 Wide choices and options of
and soon-to-open food businesses. food available in the market.
2. Rapid change of customer 0.05 3.0 0.15 Customers are likely to be
preference. influenced with popular
influencers on latest trends and
interest of society.
3. Potential rising price of raw 0.10 4.0 0.40 Possible to happen and these
materials and other commodities. could affect the serving size and
product prices.
4. Continuous rising of inflation 0.10 3.0 0.30 Customers will likely to choose
rate. where they can save money and
spend within their means.
Total Scores 1.00 3.50

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Exhibit 3.0

Internal Environment (IFAS)

Internal Factors Weight Rating Weighted Comments

Score
1 2 3 4 5
Strengths
Family Owned .15 5.0 .75 One key to
success
Employee relations .05 3.0 .15 Good but have
some loopholes
Authentic Filipino .10 4.2 .42 People have wide
cuisines offered options
Cozy ambiance .05 2.8 .14 Customers can
relax
Lower-priced menu .10 3.9 .39 Many people can
afford
Weakness
Inadequate staff .05 2.2 .11 Staffs need
training retooling
Tight table .10 2.0 .20 Affects the
arrangements due to mobility of
space constraint customers
Inadequate number of .15 2.0 .10 Group of friends
burner in the kitchen must wait for a
long time
Offer products that are .05 2.1 .105 Comparisons to
similar to what the other shops
other players offer
Disorganized financial .20 4.0 .80 Might lead to
recording system misconception
about real
financial status
TOTAL SCORES 1.00 3.165

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 Exhibit 4.0

Strategic Factors (SFAS)

STRATEGIC FACTORS Weight Rating Weighted SHORT INTERMEDIATE LONG Comments

Score
Internal
Variety of 0.1 5 0.5 X People have
1
Strengths cuisines offered wide options
Lower-priced 0.1 2.7 0.27 X Many people
2
menu can afford
Inadequate staff 0.1 2.6 0.26 X Staffs need
1
training retooling
2 Disorganized 0.15 1.9 0.285 X X Might lead to
Weaknesses financial misconceptio
recording n about real
system financial
status
External
Opportunities 1 Product and 0.15 4.5 0.675 X X More food
service options and
innovation and quality
differentiation. services.
2 Partnership with 0.1 3.8 0.38 X Patronized
local wet local vendors
market vendors. and earn
discounts.
3 Branch 0.1 1.3 0.13 X Additional
expansion and profit, brand
possession. positioning
and eliminate
monthly
expenditures
on rentals.
Threats 1 Competition 0.15 2.3 0.345 X X Wide choices
with established and options
and soon-to- of food
open food available in
businesses. the market.
2 Rapid change 0.05 2.9 0.145 X X Customers
of customer are likely to
preference. be influenced
with popular
influencers on
latest trends
and interest
of society.
1 2.99

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Exhibit 5.0
Internal/External Factors
OPPORTUNITY (O)
1. Own and expand the store and SO
open new branches in nearby 1. Product differentiation
cities.
THREAT (T)
1. Intensifying competition from
other established, new and
upcoming restaurants and food
chains.
TOWS Matrix
STRENGTH (S)
1. Variety of cuisine offered
2. Lower-priced Menu
ST
1. Brand positioning
2. Cost leadership
WEAKNESSES (W)
1. Inadequate staff training.
2. Disorganized financial
recording system.
WO
1. Work towards decreasing staff turn-
over. (retrenchment)
2. Technology integration. (stability)
WT
1. Adopt Technological
advancement. (stability)
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Exhibit 6.1

Implementation Table

PRIMARY ACTIVITIES

IMPLEMENTATION- Primary Activities Program Budget Procedure

Focus on profitable Improve supply management Travel and Transportation 1. Determine the maximum amount the business is
P1000
products throughout supply chain by Postage and Telephone willing to pay for the product
P1000
selecting proper supplier to lower Photocopy and Printing 2. Contact Suppliers
P200
Inbound product cost. (1st year of 3. Request pricing from suppliers (quotation) and
operation) analyze 4.
Negotiate and make an ambitious counter-offer (
lowest price possible)
Create Delivery 1.Canvass delivery equipment and Purchase Price (Motorcycle) P80 000 1. Determine delivery boundaries
System and its assign/hire personnel Taxes, Licenses & Fees P1000 2.Create a list of business contacts who might contract
assigned personnel 2. Create a loyalty program, such as a Insurance P 500 for deliveries
free delivery or package deals that Repairs and Maintenance ( 1year) 3. Create a baseline price for delivery services and
Outbound offer a flat price for a certain number P5 000 tack on charges by distance
of deliveries (After 1 year ) Fuel and Oil (1 year) P 15 000 4. Identify supplier to purchase delivery equipment
Salary ( 1 year) P 97 000
Miscelleneous P1500

Offer promos and 1. Develop a sales plan ( after 1 year) Utilities (Internet) P 10 800 1. Make sales forecast for the next 12 months
utilize social media 2. Offer Coupons and Discounts (after 2. Make Loyalty, bundling and fixed-price offerings
1 year) 3. Offer coupons for customer's birthday, special
3.Maximize engagement and events/ holidays and promoting new products
customer connection with Social 4. Set up restaurant’s Google+ account to aggregate
Marketing
Media (1st year) Google user reviews
5. Monitor social media presence across Twitter,
Instagram and Facebook (post new menus and
update information)

1. Launch more foods and beverages Food cost - 375,000 1. Seek assistance with a dietician/nutritionist for the
that are nutritious. (after 1st year of Beverage cost - 420,000 proper food choices to offer to customers that would
Operation operation) Direct operating expenses - 79,000 align with the program.
2. Further decrease sugars, sodium Fuel - 37,000 2. Identify prospect producers, suppliers and retailers
and saturated fat. (after 1st year of General & Administrative - 14,500 to increase access to ingredients that align with the
operation) Repairs & Maintenance - 12,000 health-promoting foods.
Focus more on 3. Identify areas such as modifying recipes and/or
healthy products. 3. Increase vegetables, fiber-rich food/beverage selections where customers can
grains, pulses, nuts and seeds in our make shifts to align with the healthy food program like
foods and beverages. (after 1st year inventing healthy salads, fruit shakes, or vegetable
of operation) chips.
4. Help customers become more aware of the new set
4. Simplify our ingredients lists and of healthy foods/beverages offered by modifying
remove artificial colors. (after 1st year menus or advertisements inside and outside
of operation) establishment.
(Utilities) Internet - 10,800 1. Add a survey to facebook page (social media) and
Services Customer feedback Customer satisfaction surveys Miscellaneous expense - 2,000 suggestion box inside physical store.
2. Give customers the freedom to answer one single
and straight forward question: "How likely would you
be to recommend us to a friend or colleague?" which
will be posted in the page and suggestion box inside
physical store.
3. After a week, gather all feedbacks from the
customers and focus on the most important drivers of
customer loyalty and if there are negative feedbacks,
focus on few things you believe you can change and
start making changes in the business.
4. Re-survey customers regularly.

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Exhibit 6.2

Implementation Table

SECODARY ACTIVITIES

Implementation -
SECONDARY Strategies Programs Budgets Procedures
ACTIVITIES
1. Search for a supplier of raw materials needed by the
1. Canvass supplier company. 2. Select the supplier that offers the best
that offers quality price with the best quality. 3. Choose at least another
Focus on purchasing (Utilities) Internet - 10,800
Procurement raw materials one alternative supplier. 4. Meet the supplier to
quality raw materials Raw Materials - 420,000
2. Raw Materials personally check the quality of raw materials. 5.
Quality Check Consider your supplier for your future purchases to
maintain the quality of your company's products.
1. List down the current cooking equipment the
company have. 2. List equipments that company needs
1. Purchase of to have for the effectiveness of its operation. 3.
Technology Look for additional Cooking Equipment - 30,000
additional cooking Canvass suppliers of this equipment. 4. Make a budget
Development equipment Miscellaneous Expense - P2,000
equipment and set aside cash to purchase the equipment. 5.
Purchase the cooking equipment with the best quality
base on the canvass.
1. Identify the company's need of employee, the
Increase hiring of
Human Resource Salaries Expense - P8,086/month number and the position. 2. Hire the most qualified
Highly-trained 1. Hiring Activity
Management Emplyee Benefits - P500/month person for the position. 3. Conduct orientation and/or
employees
training for that employee.

1. Set a day in a week for the toolbox meeting. 2.

Assign personnel that will lead the meeting per week
(rotational assignment. 3. List down the agenda for the
Program a weekly 1. Conduct a weekly Budgeted Time for meeting - meeting. 4. Assure that all employee or representative
Infractructure
toolbox meeting toolbox meeting 30-45 minutes in every department must attend the meeting to rise
their concerns. 5. Always have a copy of the minutes of
the meeting so that i will be review on the next
meetings whether their are still other concerns.

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Exhibit 7.0

Value Chain Management

A. Primary Activities

 Inbound Logistics: Is where purchased of inputs such as raw materials are

often taken care of.

Goods: Purchasing of raw materials and perishable goods

1. Raw Materials: Bila-o

Kitchen Utensils

Food Packaging for take-out orders

2. Perishable Goods: Vegetables, Meats and Etc.

Services:

1. Raw materials needed for take-out orders.

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 2. Raw materials for dining operation.

 Operations

1. Preparation for food orders take-out and dine-in.

2. Inventory for take-out packaging.

3. Doing all necessary items or work to be done in the specific

time period (so as to deliver to the customer in the mentioned time

period at the time of ordering) and also adhering to the restaurant

standards while maintaining the quality of the food items.

 Outbound Logistics:

1. Delivery of ordered foods within Gensan area only.

2. Preparing for food items.

3. Serving hot the ordered food items to the customers at the restaurant

and at their doorstep.

 Marketing and Sales

Goods and Services:

1. Social media advertising.

2. Print media through fliers.

3. Friend referral & customer feedback.

4. Segmentation ant target market.

5. Pricing: as per the market demand and keeping the competitors also in

mind.

 Services (After Sale Services)

Goods and Services

1. Posted reviews on social media.

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 2. Ordering online service: customers can look at the menu, decide and

order online as per their location.

3. Striving to provide quality good foods and excellent customer service.

4. Customer feedback.

B. Secondary Services:

 Procurement: Purchasing inputs used in the operations on different

suppliers to gain special discounts.

1. Bought some perishable goods and raw materials in Gensan public

market and leading supermarket.

 Technology Development: The array of technology used in R2 Operation.

1. Computers and printers to help check on billing information, inventory

and sales.

2. Laptops and smartphones for social media advertising and online

services.

3. Cooking equipment.

4. Vehicle for food delivery.

 Human Resource Management:

1. 2 Cashier

2. 5 Waiters

3. 2 Dishwashers

4. 2 for Meal Preparation

5. 2 Cook

6. 1 Dispatcher (for food delivery)

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Exhibit 8.0

Porters 5 Forces

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