Philosophy Each individual in our organization is committed to the pursuit of Service Excellence and the highest level of Customer

Satisfaction to any one that we do business with in the service of our God and our Country. Our Vision We will be the most sought after food franchising company maintaining leadership in the neighborhood bakeshop market. Every Julie's bakeshop is assured of continuous marketing campaign support from the bakery opening onwards to building superior brand image. Our Mission Julie's Bakeshop is a major brand established as a family oriented business and making its presence felt all over. We maintain very high quality standards at each Julie's Bakeshop offering freshly baked products using only the finest ingredients and produced in a clean environment in full view of our customers. All Julie's Bakeshop Franchisees and bakery staff should be equip with the knowledge about company's strict quality standards through intensive and thorough training, seminar workshops and hand on product handling. The Julie's Baking technology program highlights the Julie's way of achieving product quality, service excellence and customer satisfaction. Julie's Bakeshop's success is not only measured in the fulfillment of its endeavors as a value driven franchise business, but also in establishing harmonious relationships with the Filipino community. Julies bakeshop's achievement in its business and relationship with the Filipino people will be the measure of true growth. Julie's Bakeshop will not only bring its bread closer to the Filipino people but it will also enhance the capability of the franchisees towards growth, making them proud Julie's Breadwinners.

Recommendation on how will communicate the vision-mission to employees and other stakeholders: The additional proposed mission statements above clearly states the majority on how to improve their product line, services and values to the customers, practicing good citizenship and the need for competent employees in order to achieve quality service for insuring public. The researcher decided to include respond to social sentiment because it will help to build companys public image as being socially responsible through responsible management. The core values will be the guiding principle for the employees support the organization.

New users can be in the form of new customers. Julies Bakeshop, with its sound financial position and affiliation, would allow it to either set up a new plant in Mindanao area to capture the undeserved area. Not only would it create jobs, this strategy would also allow Julies Bakeshop to minimize intermediaries, enabling better inventory and logistics control. Meanwhile, to capture non-users such as those who rely on rice, crackers, cereal, corn or any readily-available food, Julies Bakeshop should craft and organize marketing efforts to create a desire for the products. Dedicated salesmen should be assigned on this particular project to facilitate feedback mechanism. One example of creating a desire is by engaging the services of celebrities which the target market can highly associate themselves with. For increased/more frequent usage, Julies Bakeshop can find creative ways on how to stretch use of its products, stepping out from its usual bread as sandwich or merienda image. To defend its market share from cottage bakeshops as well as the emerging franchise like Gardenia, Julies Bakeshop should further strengthen its Julies Bakeshop Pedicart to enable improved penetration on grassroots level.

This, or Julies Bakeshop, if it would like to maintain its current branding and market image, can establish a new company that would specifically cater the underserved market, reminiscent of Jollibees Mang Pepe. On the other hand, behemoth conglomerates like San Miguel Group, Gokongwei Group, or similar group that has the financial capability to develop and distribute products to compete head-to-head with Julies Bakeshop should also be considered. Julies Bakeshop should be mindful of any business dealings that might prelude this to make preemptive counter-measure strategies. To protect its position in the market, Julies Bakeshop should reinforce markets association with the product. Citing years of relationship since 1997 would send a message to the consumers of the continuing commitment of the company in ensuring quality food in every table, freshness in every bite. Years of uninterrupted dominance in market would give Julies Bakeshop the advantage over the new entrants. Finally, diversification of products could also be an alternative. Entering the beverage or bread spread industries, while risky, would serve as flankers to the core product line of Julies Bakeshop.

Economic
Specific Factor Relevance to Enterprise A strong currency may make exporting more difficult because it may raise the price in terms of foreign currency. Julies Bakeshop may have ahard time importing baking ingredients from other countries.

Exchange rate The Philippine Peso will likely continue to appreciate against the US dollar to Ps43.89: U$1 (source: BSP, Dec. 30, 2010).Such appreciation to persist due to continuing rise in OFW remittances, rising foreign investments, weak US economy &currency

Interest Rate Since the interest rare in the country is very The Philippine central bank held its policyrate low there is a higher tendency for Julies at a record low of 4% Franchising Corporation to have foreign partners or investors because it cost less to borrow. Labor cost Since the labor cost in the Philippines is Non-Agriculturalphp lesser than the other countries, they can 404.00AgriculturePlantation- php 367.00Non- produce more baking products with a lower Plantation php367.00 labor cost.

Political or Legal
Specific Factor Taxation Policy The tax rate for Domestic Corporations is 30% on worldwide income. Foreign Branch Offices have a tax rate of 30% on Philippines based income. Relevance to Enterprise The policy will give awareness to the enterprise on whatever changes has been made regarding taxes, so as to avoid evasion or other related matters. It is beneficial both on the company and for the Government. In terms of financial matters. Some laws regarding business will guide the franchisee of Julies Bakeshop to a better business operation.

Business Regulation Philippines Local Governments Improving Business Regulation and Empowering Entrepreneurs, Finds World

Technological
Specific Factor Website Improve the website tocommunicate with the customerseasily and conveniently. Relevance to Enterprise Since almost everyone has the easy access on theinternet it is very helpful for Julies Bakeshop toadvertise their products and how to franchise online.It will help boost their sales. There are a lot of baking technologies now a days, it will be very helpful for the production of JuliesBakeshop, it may double or triple their productiondaily. Facebook, tweeter etc. there are a lot of potential buyers on those social networking sites, Julies Bakeshop should have their pages on these networking site and post whats new on their products or franchise programs.

New Baking Technologies What are the latest trends in production of baking products.

Social Networks Social networking sites are a bighelp in promoting and to identifythe brand.

Socio/cultural
Specific Factor Filipinos Taste Buds Filipino haw a unique sense of taste. Relevance to Enterprise Filipino culture indeed loves to eat and in every family table there is always a place for breads, its a big factor to consider that Filipinos loves eating bread especially in occasions or during free time. Filipino Hospitality Being Filipino we are very accommodating to Trademark of being a Filipino is being guest, and commonly Filipino serves bread Hospitable on their guest. or any other pastry products to their guest, Filipinos calls it as a merienda. Many Filipinos now are very health Change in Lifestyle Through times Filipino always wants to be on conscious and one thong that Julies Bakeshop should concentrate in is to trend, everyone now today is really health develop new kind of bread which is conscious. sugar free or have more nutritional benefits.

Environment / Climate
Specific Factor Climate Change in the Philippines CO2 emission 75,299.2 Relevance to Enterprise Climate change has had an impact on International farmers, ranchers, rural land owners, and foresters, and will continue to do so, through its influence on production, distribution, and yields. Continuous climate change in the Philippines may affect the Baking Industry especially the Flour Industry and soon will affect the prices of the products that uses Flour, sugar etc. Climate in the Philippines As to baking industry, it is an ideal climate for agriculture The Philippines is a tropic nation with a hot with ample rainfall all year long. Julies Franchising and humid climate. Corporation has the advantage of buying less expensive agricultural products, instead of importing into other countries.raw materials such as eggs, milks, oil and other baking ingredients. Pollution in the Philippines In Philippines pure water is very difficult to obtain. This is (Air and Water) due to excretion of biological and other waste into the water of rivers, lakes, and ponds. As baking corporation water is very important to production, the corporation may have the tendency of consuming too much water. It may affect the products prices because water is one of the main ingredients of bread and other pastries.

SWOT MATRIX
Strengths-S Advertising Job Specialization Pricing Brand Name Weaknesses-W Employee Training Production Speed Limited Branches in Operation Store Size WO Strategies -Making the store look more customer-friendly to attract more customers, and giving enough benefits to the employees to satisfy their needs for a better production in providing quality and healthy products. WT Strategies -Attract more investors to invest to the company to make the financial power more stable and to be able to expand the business and be able to offer much more of the products available.

Opportunities-O Advertising Health Consciousness Rice Subsidy

SO Strategies -Being specific and having a concentration with what the products they wanted to offer to the public to satisfy their long for a good and healthy sandwich as a substitute for rice. ST Strategies - Empowering the Brand name through massive advertisements in making a good and health conscious products in just a cheap price, affordable by the mass.

Threats-T Newbie in the Market Small Market Share Limited Branches in Operation Competition Food Preferences (Trend) Competition Food Preferences (Trend)

Rivalry of Competition
Basis for Conclusion Increasing number of competitors because, French Baker,Goldilocks, Red ribbon and Pan de Manila, this bakeshops really marked their name in industry and Julies Bakeshop really having the hard time competing with this company. The said competitors already built such public image regards to baking and other pastry products. Consumers can switch brands easily- because of a lot of baking company in the market today there are high tendency for the consumers in switching brand easily. Industry demand declining the purchase power is depreciating and the people decided to search for new alternatives. Barriers to leaving the market/industry are high - a firm may be forced to continue competing in a market, as the costs of leaving may be higher than those incurred if they continue competing in the market and obstacles in the path of a firm which wants to leave a given market or industrial sector . These obstacles often cost the firm financially to leave the market and may prohibit it doing so. Products are perishable- Julies bakeshop offers a wide variety of pastry products and it is a big factor for the company to keep their good fresh and, its competitors are using ingredients or adding some preservatives to keep the bread and other pastry products fresh. Medium

Conclusion

Potential New Entrants

Basis for Conclusion There are a lot of Baking companies in the Philippines, Julies bakeshops key competitors are the pioneering baking companies on the Philippines, and it may be too tough for them to gain loyal customers. Strong customer loyalty- The product is loved by the customers because it is affordable and has a good taste. Strong brand preferences for example if they don't find the ideal taste that they're looking for, they'll look for other bake shops that will satisfy what their taste buds. Lack of access to raw materials- the basic ingredients of bread are sugar, milk, flour and egg, and the prices of those ingredients rapidly had hit the global high and will continue to high in the next few weeks or months. It may be a big factor for Julies bakeshop to get cheaper suppliers of those ingredients, and it would be a reason for them to double their products prices. Current competitors have strong marketing resources because of having a strong customer loyalty the competitors of Julies Bakeshop has the advantage of having strong marketing resources. And the competitors are already in the industry quite some time compare to Julies Bakeshop. Medium

Conclusion

Bargaining Power of Suppliers

Basis for Conclusion Considering if the brand of the supplier is strong and the rol e of quality and service of baking products. There are a lot of baking suppliers in the market, and it may be a very hard one for Julies Bakeshop to find suppliers that offers cheap cost and gives a good deal. Plus the industry is not the key customers to the suppliers. Because of the high price in sugar and flour the baking industry is trying to buy in large volume to lessen the cost. There is a high tendency that Julies Bakeshop will charge or pass the cost to the consumer resulting into having a costly pastry product, if the company cant find a supplier which offers a good deal and price.

Conclusion Weak

Bargaining Power of Buyers

Conclusion Medium Basis for Conclusion Julies Bakeshop has a large volume of competitors in the market, there are many sellers and at the same time there are dominant buyers. Filipinos love to eat bread everyday and some of the customers buy in volume. The products are undifferentiated compare to the prices of its key competitors like goldilocks, red ribbon, and pan de manila. The quality of breads and services of Julies bakeshop is just the same to its competitors, its just that Goldilocks and Red Ribbon are larger companies compared to Julies Bakeshop.

Potential for Substitutes

Conclusion Medium Basis for Conclusion In light of todays economic status, people are searching for less expensive products. Julies Bakeshop offers cheap breads and other pastry product with a high quality same to their competitors. There are a lot of baking companies in the market and for Julies Bakeshop to keep its customers they must increase their market shares and keep the aggressiveness in the market. Julies Bakeshop has served customers all over the nation its distinctive brand of high quality, freshly baked breads. With more than 500 branches and outlets nationwide.

Summary of Porters Five Forces of Competition The researcher performed the industry analysis using Porters five forces model. The researcher specifically analyzed the rivalry among competing firms, potential development of substitute products, and potential entry of new firm, bargaining power of suppliers and bargaining power of consumers. Based on the analysis above the researcher concludes - The researcher concludes that the intensity of rivalry is MEDIUM - The researcher concludes that the threat of substitutes is MEDIUM - The researcher concludes that the threat of new entrants is MEDIUM - The researcher concludes that the bargaining power of consumer is MEDIUM - The researcher concludes that the bargaining power of suppliers is WEAK

Julies Bakeshop Pedicart

The Pedicart is for those who wish to venture in microentrepreneurship, marketing fast selling Julies Bakeshops bread products primarily house-to-house in the mornings and secondarily near market centers or palengkes, churches, community centers, office clusters and other heavy commuter traffic areas during peak hours. A franchise area will be designated by Julies Bakeshop to a Pedicart distributor/franchisee without the need for a franchise fee, except for a minimal investment on the cost of the pedicart and revolving fund to cover the daily merchandise that will be sold.

Fresh Julies Bakeshop breads will be delivered daily to the franchisee and any unsold bread will be replaced by the company with fresh stocks to ensure that only the freshest breads are sold which is in line with Julies Bakeshops freshness guarantee and high quality policy. This way, individuals, families, OFWs, housewives, others wanting to start a business can have an opportunity venturing in this profitable project.
The pedicart will also provide the vending crew person or vendor an opportunity to earn at least P300 for a half days work, and double the income with a second round in the afternoon or early evening. This creates employment opportunities especially for those looking for work or are underemployed.

Annual-plan control
The basis of annual-plan control is managerial objectives that is to say, specific goals, such as sales and profitability, that are established on a monthly or quarterly basis. Organizations use five tools to monitor plan performance. The first is sales analysis, in which sales goals are compared with actual sales and discrepancies are explained or accounted for. It comprises at least five performance gauging tools:

I. Sales analysis (comparing sales targets to actual sales and accounting for discrepancies).
II. Market-share analysis (comparing the country's "sales" with those of its competitors). The country should also compare its own sales to the total sales in the global market and to sales within its "market segment" (neighboring countries, countries which share its political ambience, same-size countries, etc.).

III. Expense-to-sales analysis demonstrates the range of costs - both explicit and hidden (implicit) - of achieving the country's sales goals.
IV. Financial analysis calculates various performance ratios such as profits to sales (profit margin), sales to assets (asset turnover), profits to assets (return on assets), assets to worth (financial leverage), and, finally, profits to worth (return on net worth of infrastructure). V. Customer satisfaction is the ultimate indicator of tracking goal achievement. The country should actively seek, facilitate, and encourage feedback, both positive and negative by creating friendly and ubiquitous complaint and suggestion systems.

Profitability control
Profitability control and efficiency control allow a company to closely monitor its sales, profits, and expenditures. Profitability control demonstrates the relative profit-earning capacity of a companys different products and consumer groups. Companies are frequently surprised to find that a small percentage of their products and customers contribute to a large percentage of their profits

Efficiency control
Efficiency control involves micro-level analysis of the various elements of the marketing mix, including sales force, advertising, sales promotion, and distribution. For example, to understand its sales-force efficiency, a company may keep track of how many sales calls a representative makes each day, how long each call lasts, and how much each call costs and generates in revenue.

Strategic control
Strategic control processes allow managers to evaluate a companys marketing program from a critical long-term perspective. This involves a detailed and objective analysis of a companys organization and its ability to maximize its strengths and market opportunities. Companies can use two types of strategic control tools. Marketing audit The marketing audit is, in some respects, the raw material for the strategic control. Its role is to periodically make sure that the marketing plan emphasizes the country's strengths in ways that are compatible with shifting market sentiments, current events, fashions, preferences, needs, and priorities of relevant market players. This helps to identify marketing opportunities and new or potential markets.

The largest bakeshop chain in the country, Julie's Bakeshop, plans for international expansion, although putting up at least one Julie's Bakeshop in every town in the country within five years remains its top priority.
Julie's Franchise Corporation (JFC) chairman Bobby Gandionco said Julie's international venture has to be studied very carefully, as the company sees a bigger challenge if it were to start opening branches outside the country.

But as of now, the international venture is still a difficult move saying to be able to service the overseas branch you have to expand the backroom support service of the company.

Julie's is offering from P1 million to P1.5 million franchising fee, including already the training, one-time invention, equipment among others.
With the growing Filipinos working abroad, opportunities for Julie's Bakeshop to expand in other countries is tempting, as Julie's Bakeshop brand has become a household name in majority of Filipinos, when it comes to bread.

i. Vision/Mission Statements Old Mission Vision of Julie's Franchise Corporation Philosophy Each individual in our organization is committed to the pursuit of Service Excellence and the highest level of Customer Satisfaction to any one that we do business with in the service of our God and our Country. Our Vision A Julies Bakeshop in every town. We will be the most sought after food franchising company maintaining leadership in the neighborhood bakeshop market. Our Mission Julie's Bakeshop is a major brand established as a family oriented business and making its presence felt all over. We maintain very high quality standards at each Julie's Bakeshop offering freshly baked products using only the finest ingredients and produced in a clean environment in full view of our customers.

Recommended Revised Strategic and Financial Objectives From the Market analysis Goldilocks and Red Ribbon are ahead of Julies Bakeshop while Gals Bakery is in the lower rate. Goldilocks and Red Ribbon are very dominant in the baking industry. However, given that the market followers have equal position Julies bakeshop can best succeed if it can become the strong number 2 in position next to Goldilocks in the next 3-5 years. The researcher established specific business strategy for Julies franchising Corp. The following strategies are both strategic and financial in nature: 1.) Increase Brand Awareness 2.) Improve Franchising Assistance3.)Expand Stores and build stores inside malls 4.) Build more stores in Visayas and Mindanao 5.) Increase its distribution and promotion of products and services