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In partial fulfillment

of the requirements
for STRAMAN (Strategic
Management)
submitted to
Mr. Francis Loseo

LEACHON, Rachel Caroline V. 11019492


ONG, Clarence Kane C. 11007672
REYES, Sedfrey C. 11031344
VICENTE, Mary Antonette D. 1101505

TABLE OF CONTENTS
I.

Executive Summary

II.

Research Design Methodology

III.

Introduction

IV.

External Analysis

V.

Industry Analysis

19

VI.

Company Analysis

VII.

Strategy Formulation

VIII.

IX.

5
6

25

a. External Factor Evaluation

45

b. Competitive Profile Matrix

52

c. Internal Factor Evaluation

63

d. SWOT

68

e. SPACE

71

f. I-E Matrix

74

g. Grand Strategy

75

h. Summary of Strategies

77

i. Quantitative Strategic Planning Matrix

77

Recommendations
a. Strategic Objective

82

b. Recommended Strategies

83

c. Financial Projection

85

d. Departmental Programs

93

Evaluation and Success Indicators


a. Balance Scorecard

100

b. Contingency Plan

102

X. References
X.

103

Appendix
a. Financial Statements

106

I.

Executive Summary
Mang Inasal is the Philippines fastest growing barbecue fast food chains which serves
chicken barbeque, pork barbecue and other delicacies that are Filipino favorites. Being the
market leader in the barbecue fast food chain industry, Mang Inasal is in a good position.
Mang Inasal ranked first in the CPM with the rate of 3.80, 0.85 more than the second placer.
This means that Mang Inasal excels and has a strong position considering price
competitiveness, marketing and advertising initiatives, market share, product and service
quality, branding and image, and product variety as the key factors.

The trending barbecue industry is the reason for Mang Inasals continuous growth. However,
with the presence of its competitors and as fast food industry becomes saturated, Mang Inasal
needs to exert more effort to further its market share. Other opportunities for Mang Inasal are
technological advancement in the field of poultry production, growing number of people who
uses Internet and mobile phones, increase in potential franchisee and demand for packaged
food products. Other external factors that Mang Inasal is facing are health risk of poultry
products while Filipinos are looking for healthier lifestyle, increase in number of foreign and
local competitors. Despite the threats, Mang Inasal still managed to respond to the different
external factors in above average manner with an EFE rating of 2.75.

Internally, Mang Inasal is also doing good having a rating of 2.95 in the IFE. Being a market
leader in barbecue fast food industry through being proactive in marketing and advertising,
and having strategic locations for their restaurants and having partnership to different

companies like Decos and Oracle, gave Mang Inasal a good rating. Despite their poor
restaurant environment, inconsistencies in the distribution and quality of products, Mang
Inasal still manage to respond well to the internal factors.

Market Development is the most suitable strategy of the business having a rating of 4.25
rating in QSPM supplemented by Market Penetration with a rate of 3.85 and Product
Development with a rate of 3.80. Market development strategy is to branch out stores in
Mindanao specifically in urbanized cities. Market penetration strategy includes 1)Hire new
product endorsers 2) Increase brand visibility by taking advantage of advertising on mass
transportation systems 3) Intensify social media marketing 4) Organize a Mang Inasal
Franchise Summit to attract potential franchisees. Product Development Strategies are 1)
Forming a department regulating and evaluating branches and employee performances 2) Set
up a sanitation compliance team to ensure that sanitary standards are met for each branch 3)
Conduct research through mobile and online surveys 4) O3 Build a smooth communication channel
for faster distribution of products from the supplier to the branches.

With the use of these strategies, Mang Inasal will continue to exceed its competitors
having a ratio of 0.79 in the return on equity compare to others.

II.

Research Design and Methodology


Research Design
The macro economic data that was used in this paper are from reliable online
media newspapers such as the Philippine Star, Manila Times and other websites as well.
For the industry data, the Mang Inasal website was used and an interview from a Mang
Inasal franchisee, Ms. Andrea Tan Lim. Her Mang Inasal branch is located at the
Robinsons Pioneer.

To compare the financial analysis of the firms different competitors as well as


theirs, the audited financial statements were obtained from the Securities and Exchange
Commission. In addition, some key factors of the competitors information were acquired
in their respective main websites.

Scope and Limitation


This paper will be about Mang Inasal and all of its branches nationwide.
However, the data that were gathered are only limited because Jollibee Food Corporation
owns 70% of the shares of Mang Inasal. This becomes a hindrance to collect
management; marketing and financial data such as the financial statements and internal
strategies of the company as handling the employees is different in every branch because
of its many franchisees. Also, it is very hard to collate data from the Internet because of
the sources found are not reliable.
The audited financial statements that were gathered from the Securities and

Exchange Commission are only from 2008 to 2010.


III.

Introduction

Pang-masa ang lasa, affordable pa!

Mang Inasal is one of the most prosperous fast-food chains in the Philippines.
Founded by Edgar Injap Sia II, it started its operations in Iloilo City, Philippines, and the
number of branches currently continues to grow in number. Right from the start, Mang Inasal
was already able to catch the attention of the Filipinos since its products are mostly, if not
entirely, Filipino in nature. Because of its increasing number of branches around the country,
Mang Inasal provides numerous job opportunities to many, whether the available
opportunities are on the supplier, the management, or the employees. Right from the very
beginning, Edgar Sia already spurred Filipinos interests in Robinsons Place, Iloilo City,
Philippines. What he did was he distributed this initial success in Iloilo City to TATC, Roxas
City, Capiz (second branch), to Marymart Mall, Iloilo City (third branch), to Mall of Asia,
Manila, and soon afterwards, to the rest of the Philippine Islands.

Mang Inasal is known for the swiftness and accuracy of its services, quality of
its products, and its variety of food choices. The National Meat Inspection Service gave
Mang Inasal a certified Double A on its commissaries (one in Iloilo and one in Manila),
assuring safety when consuming their products. Apart from safety, Mang Inasal also allowed
its Research and Development Department (RDD) to makes sure that all of its products are
fresh and hygienic. The RDD also takes the responsibility of developing new products in
Mang Inasals menu. In order to raise concerns in branches scattered everywhere within the

country, Mang Inasal has its Support System to transmit to its main department and act upon
giving remedial solutions. With cooperation between different departments, Mang Inasal
remains to be one of the healthiest businesses in the Philippines.

IV.

External Analysis
Economic Performance and Forecasts
Market becomes saturated due to booming fast food industry

Food is one of the basic needs of every people, with these; food industry is growing as
time pass by. Many people choose to put up or franchise different fast food chain as their
business since this industry has a rapid growth.

No . o f Sto re s

Fast Food Stores in the Philippines


(As of 2011)
800
700
600
500
400
300
200
100
0
Jolibee

Chowking

Mang Inasal

Greenwich

Mcdonalds

As of 2011, the number of fast food industry in the Philippines continuous to grow with
Jollibee has the highest number of branches in the country. Mang Inasal has 423 branches as
of 2011 and still continues to grow this 2012.

Re1evance:
As the market for fast food industry becomes more saturated, it means more competitors,
direct or indirect, for Mang Inasal. Presence of more competitors means more choices for the
people and it can take away the market share of Mang Inasal which may cause them a
decrease in their sales.

High number of foreign companies entering the fast food market vs. local brands
Passing of the Foreign Investment Act made the foreign investors to easily conduct
businesses here in our country. The government gives incentives and other benefits that
would encourage foreign investors to invest in our country. Some the reasons why foreigners
invest in our country are low costs of doing a business. Wages are low compared to other
countries like US. It is estimated that foreign investors can save 30%-40% in the cost of their
business here in the Philippines. As the third largest English-speaking country in the world, it
serves as an advantage for the Philippines as foreign investors can communicate with its
employees easily. Another reason of foreign investors to invest in our country is that because
of the tax benefits and incentives given by the government. Philippines also served as a
strategic location for the reason of just few hours flight in the different major capital in the
country and also reaching 500 million people of the Association of Southeast Asian Nation
(ASEAN). Lastly, as Asian nation is starting to integrate a free trade between the countries of

ASEAN, investors can take advantage of it and also capturing the ASEAN market.

As you can see from the graph that there is an increase of Foreign Investors here in our
country. Though it decreases in the year 2007 because of the financial crisis happened and
the decrease continued until 2009. However, investments increases at this time as some of the
investors chose to invest in the country especially those who are based in Japan to have
offices because of the fear of the tsunami incident in Japan last year.

Relevance:
The presence of the foreign investors would more competitors for Mang Inasal especially
if they engaged in a food service industry. Mang Inasal may lose some of it current market
share as customers have more choices of fast food chain and restaurants in where they can
dine in. Foreign businesses may exhibit better services, which can also be a factor of the loss
of market share of Mang Inasal.

Socio-cultural Factors
Trending barbecue fast food industry
According to Family Income and Expenditure Survey that 42.6 percent of the Filipino
households income were spent on food. The increase in the number of workers who are
engaged in business and administrative jobs and shifting consumers preferences towards
leisure and convenience resulted to the rise in demand for fast food services. It is now
became a trend and routine for middle class earners to eat at different fast food chain which
causes the presence of 32,000 fast food outlets in the Metro Manila area only.

Today, the trend of barbecue fast food industry is in hype. As you can see in the graph
that there are total of 604 branches of the top barbecue fast food chains in the country where
Mang Inasal has the leading number of outlets nationwide, having 423 branches.
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Relevance
Mang Inasal, as a part of the barbecue fast food industry, can take advantage of the
increasing trend for this industry. These would help them generate higher income and
increase further its market share. They can also take this opportunity to attract more
customers and outnumber its competitors.

Increase number of potential owners through franchising


Filipinos now a days are engaging into franchising business since it requires less capital
instead of making their own business. Actually, franchising contributes a lot in the growth of
the Philippine Economy. According to the Association of Filipino Franchisers Inc. (AFFI),
those there members increased to 130 from 75 during the year of 2010. At this moment, there
1000 brands that are being franchised in our country which are divided to five principal
sectors: retail (clothing), cafes, cafes, fast foods, bakeshops, hospitality and wellness, and
food carts. Around $6.6 billion of the Gross Domestic Product of the Philippines or 5% is
contributed by franchising. Franchising also generates jobs for the Filipino people and
therefore reduces unemployment.

The top industries in the Philippine franchises are water refill franchises since water is a
basic necessity for every person, education and training franchises as fresh graduates looking
for review centers for their licensure examination, bakery as bread has been a part of the
Filipino culture especially pandesal, bar and caf franchises, personal care franchises,
service-type franchise, fast food chains, restaurants and food cart franchises as food is a basic

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necessity and Filipinos loves to eat.

Relevance:
Mang Inasal also offers franchising to the community. In fact, it is one of the fastest
growing franchises in our country. The fact it came from the fast food chain and restaurant
franchises then it would continue to grow. A lot franchisee means more income for Mang
Inasal and it will be introduce to different places especially to those areas where Mang Inasal
is not present yet.

More Filipinos are moving to urban area as an increase in demand in packaged food
products.

As more Filipinos migrate to urban areas for the reason of better job opportunities and a
lot of people who are working and does not have the time to prepare their own food, it
increases the demand for the packaged food products for an ease in meal preparation. This
made them to eat in different fast food chains, restaurants and other independent food
establishments like the carinderia for a cheaper food service.

CONSUMER FOODSERVICE MARKET SHARE BY TYPE


2005
2006
2007
2008
2009
Total
100
100
100
100
100
Independent Consumer Foodservice
65.3
64.7
64.3
63.6
62.7
Chained Consumer Foodservice
34.7
35.3
35.7
36.4
37.3
Fast Food
23.7
23.8
24.0
24.7
25.4

2010
100
61.3
38.7
26.3

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Full-Service Restaurants
Cafes/Bars

28.4
26.6

28.0
26.1

27.6
25.6

27.3
25.0

26.7
24.2

26.2
23.5

Street Stalls/Kiosks

18.8

19.6

20.2

20.3

20.7

20.7

Pizza Consumer Foodservice

4.5

4.5

4.5

4.4

4.5

4.6

100% Home Delivery Take Away

2.6

2.6

2.6

2.6

3.0

3.2

As you can see form the graph that the market share of fast food industry continues to
grow overtime and it grows faster during the year 2007 to 2010, which has the market share
from 24% to 26.3%.

Relevance:
An increase in demand for packaged would also mean an increase in demand for fast
food chain where Mang Inasal is a part of. More Filipinos moving to urban areas to look for
job opportunities would be a factor to Mang Inasal since they can employ workers from these
people.

Filipinos are looking for a healthier lifestyle


Now a days, there is an increase in the of people who are facing obesity, heart problems,
diabetes and other health-related issue which make them more conscious on what they eat.

13

According to the World Health Organization that by 2012, there will be 2.3 billion adults
who are overweight and more than 700 million are obese. In 2003, it is reported that 19.6%
of the Filipino population are overweight and 4.9% are obese. The numbers continue to
increase during these days. Consumers are becoming more health conscious looking for more
healthier and organic products.

Relevance
Most of the products of Mang Inasal are meat which has high saturated and transfat that
can lead to obesity and heart disease. For customers who are looking for a healthier food,
eating in Mang Inasal may not be a good option for them and this may lead to a decrease in
the market share of Mang Inasal as people will shift their interest to those restaurants who
offer organic foods.

Health Related risks of poultry


One common disease that we can get from poultry, especially chickens, is bird flu, which
is a disease caused by Type A influenza virus that mostly infect birds.

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As you can see from the figure that bird flu cases increases from 2003 to 2006 then it
falls in 2007. Although the cases and deaths of bird flu falls down, people are still being
caution especially if there is a bird flu scare in the country.

Relevance
Since the major product of Mang Inasal is its Chicken Inasal, health related risks of
poultry can decrease the sales of Mang Inasal as people will avoid poultry products because
of the fear of having a sickness that they can get from it.

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Technological Factors
Technological advancements in the field of production

Many producers are interested to other alternatives in raising their chickens and technological
advancements can help with these problems. They are looking to a type of chicken, which
can be more suitable for outdoor production and niche markets. Out with the conventional
poultry industry and it is now genetically refined. Chickens now grow faster, has a broad
breast and limited feather for easier plucking and other traits that are considered desirable for
raising large number of birds. Chickens now reach five pounds in six to seven weeks due to
their rapid growth.

Relevance
Because of the new technologies that are discovered in order to grow more chickens than
usual, supply of chicken would not be a problem for Mang Inasal since it is their major
products. The genetically refined chickens would also be bigger than the conventional
chicken which can be an advantage for Mang Inasal because they will be able to serve bigger
chickens to their customers. This would mean higher satisfaction for the customers.

Growing number of people who uses Internet and mobile phones


As the technology aged, there is an increase in the number of Internet and mobile phone
users worldwide. Since Internet are more convenient to use compared to those conventional
ways, people preferred them more and its users gradually increasing. The same as to mobile
phone, which are easier to use in communicating with other people, user of mobile phone are
also rising. According to the secretary general of the UNs International Telecommunications
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Union, at the beginning of 2000 there are only 250 million users of Internet and 500 mobile
subscriptions globally. But when 2011 approaches, it grows to 5 billion mobile users and 2
billion Internet users worldwide.

As you can see from the two figures above that the trend for using the Internet and
Mobile Phones is increasing rapidly. Though Internet users fall during 2007-2008 where
there is an recession, it still managed to increase during the year of 2009 until now.

Relevance
Through Negostar Deal Biz Loop 99, transactions of Mang Inasal were made easier and
even reduce the cost of Mang Inasal which allows them to offer affordable prices to their
customers. Negostar Deal Biz Loop 99 offers unlimited talk to Mang Inasals employees,
franchisees and suppliers for just P99.00 per month. Mang Inasal was able to reach its
connections in just an affordable price, which is an advantage to them.

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Legal Factor
Compliance to sanitary standards
According to the Chapter 3 of the Presidential Decree No. 856 which is the code of
sanitation, that no one is authorized to operate a food establishment without securing a
sanitary permit from the local health office. The sanitary permit should be posted in the
visible part of the restaurant. Employees should also have a Heath Certificate issued by
the local health authority. All foods should also come from suppliers or sources which are
approved by the local health authority. The construction and location of the restaurant
should also comply with structural requirement prescribed the code of sanitation. Other
equipment and material used in the business should also follow the code of sanitation.

Relevance
Mang Inasal, as a food establishment, should also abide with the laws provided in
the sanitation code. They should also maintain cleanliness in their different branches
in order to pass the sanitary test of the government. Sanitary standards are also
important for the customers of Mang Inasal since they want to ensure that the food
they are eating are safe.

V.

Industry Analysis
a. Industry and Market Segments
Food Service Industry

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Food Service Industry is one of the industries, which are in rapid growth as there
are increase in number of people who wants to have a prepared meal in the short time and
at most reasonable prices. Food Service Industry is an industry, which produces and sells
foods and serves its consumers. There are different types of food establishment that are
being set up in our country in our time now like big restaurants and fast food chain, small
canteens and carinderias or even the in demand food carts.

Commercial Food Service


Commercial Food Services are those eateries, which are engaged into business
and profit. This is where Mang Inasal belongs. Part of the job of the owner is to control
the expenses of the company, to set its profit and to plan the business growth. It is also
the owner who sets the price of the food and services that they cater to the masses and
value the place and economic level of their target customers. Competition in this type of
food service is high since a lot of eateries are engaging in this type of business.

Welfare Food Service


Welfare Food Services are those restaurants that are set up to serve a particular
group of people like employees, students and patients. These are eateries that are
commonly found in schools, office canteen and cafeterias in the hospital, which are
managed by concessionaires. Competition in this type of business is low since the
competition will only be inside the entire office building and hospital.

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Market Segment and Trends


Segmentation through Economic Classification
Company
Jollibee
Chowking
Mang Inasal
McDonalds
KFC
Goldilocks
Wendys

Budget Food Items


Rice Meal 39ers,
Value Meals
Value Kings, Combo
Kings
Sulit Meals, Bulilit
Meals
Value Meals,
M2ecSaver Meals,
Everyday McSavers
Wow Burger, Wow
Sulit Meals
Sarapinoy Meals
Super Value Menu

Price (PHP)
39.00-55.00
29.00-87.00
49.00
25.00-55.00
30.00-89.0
49.00
37.00-62.00

Famous fast food chains offer affordable prices for the masses and even cater
budget meals, which are more affordable. The segment share of the middle income to this
type of industry is large compared to people with larger income beside from the
affordable prices it offers, it is also a factor that the food they offer is for the masses.

Segmentation through Source of Income


For the year 2009, 42.6% of the total expenditures are spending on food and 6.1%
of these are food consumed outside home. This provides an avenue for the industry to
increase its sales and to further increase its market growth since people who eat outside
their houses are gradually increasing throughout the years. Customers are made-up
mostly of workers, especially during lunch, whom are not able to eat in their house.
Students are also one of the main customers of this industry. Others are composed of
families eating outside especially during weekends.

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Pricing
Pricing will depend on the target market of the fast food companies. There are
food chains which have higher prices compared to others which are affordable by middle
to low income household. Prices will also depend on the products served by the different
fast food companies. It will also depend on the bulk of your orders for the reason that fast
food companies offers meals with lower prices but the serving is also small compared to
the products in their normal price.
Fast Food
Mang Inasal
Bacolod Chicken Inasal
Chic-Boy
Distribution Channels

Farmers/
Growers

Price Range
P 49.00-99.00
P 49.50-99.50
P 49.00 99.00

Manufacturers

Distributors

Consumers

Food
Chains

The common distribution channels for food service industry is that it started with
farmers and growers of the raw materials or supplies that the food chains will need in
order to produce their products. Some of these materials will go to manufacturers to
produce other products which will also be used by different fast food chains such as

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goods like dairy products and the like. After that, these products will go to different
distributors or the suppliers of the products of these food chains. Fast food companies
have lots of different suppliers whom to supply the ingredients for their products. They
will have a different supplier or every ingredient of their products. After the delivery of
their supplier, then it will be given to the different branches of the company for cooking
and serving its customers. Products are only distributed through the different branches of
the company nationwide or globally.

Advertising and Promotion


Advertising and Promotion is a way for a company to penetrate the market and to
increase further it sales. This is also a means in order for a company to attract more
customers and introduce to the public the products it caters. Media, playing a part in
consumers decision in choosing a good, is an advantage for different firms. The presence
of television, radio, Internet, newspaper, magazines and other reading materials, and the
rampant billboards on different roadways are means for firms to promote its products.
Different fast food chains even made websites in order to post updates about the company
and its products. Mang Inasal, compared to its competitors, has been very proactive in
advertising its product in utilizing the media in informing the public the different promos
it caters to the public.

b. Porters Five Forces

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Potential Entrants- STRONG

In recent years, starting a fastfood business has never been easier. Mang Inasal is
one of the numerous fastfood chains that expanded their number through franchising.
Mang Inasals founder and CEO Edgat Injap Sia divulged in an interview that more
than 90% of Mang Inasal branches in the Philippines are owned by Mang Inasal
franchisees. However, as a franchiser Mang Inasal is able to earn income through royalty
fees and other fees required to start the Mang Inasal franchise.
Many people are attracted to start a franchise because brands like Jollibee, Mcdonalds
and Mang Inasal already have a customer base and marketing initiatives, and business
strategies. According to an interview with Ms. Andrea Tan Lim, a franchisee of Mang
Inasal, It is easy to enter the industry but the hard part is maintaining the business
because of the presence of competitors.

Bargaining Power- WEAK


Mang Inasal has been very successful acquiring and distributing supplier for their
branches. According to Ms. Andrea Tan Lim, a franchisee of Mang Inasal, they have a lot
of suppliers they have different suppliers for chicken, drinks, utensils, etc. One of the
main reasons for their success is that Mang Inasal employs and has developed
commissaries. They have recently constructed a commissary at Taguig, which is
compliant with a Triple A meat processing plant standards and equipped with a state-ofthe-art testing laboratory and a modern metal-detector or a device to check meat quality.

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Threat of Competition- STRONG


The number of fastfood chains in the country is rapidly increasing. Aside from
direct competitors, Mang Inasal will also face indirect competitors such as Mcdonalds
and KFC. The fastfood industry in the Philippines has been one of the tightest industries.
Ms. Andrea Tan Lim, a franhisee of Mang Inasal, admitted that it is very difficult to
maintain the business because of tight competition.

Purchasing Power of Consumers- STRONG


Referring to our Competitive Profile Matrix, Mang Inasal got the highest mark
regarding price competitiveness. Mang Inasals products ranges from P49-P99. Most of
their customers are students and people part of the labor force. Students and workers
usually have a tight budget.
Threat of Substitution- STRONG
Besides from the famous chicken inasal, Mang Inasal has a variety of food
products to choose from. To keep up with the trends, Mang Inasal expanded their product
line. Also, the soy garlic chicken industry (e.g. Manangs & Bonchon) is getting popular
in the country.

VI.

Company Analysis

a. Vision and Mission of the Company


Vision Statement and Evaluation
The vision statement of Mang Inasal is:
To be the preferred quick service restaurant of every pinoy everywhere!

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http://www.manginasal.com/about.html

Vision Statement Evaluation


Parameter
Does it clearly answer the
question: What do we want
to become?
Is it concise enough yet
inspirational?
Is it aspirational?
Does it give clear indication
as to when it should be
attained?

Yes/No
Why?
Yes
Mang Inasal aims to become the best fast-food
barbecue food chain in the Philippines.
Yes
Yes
No

The vision statement promotes the company to


be chosen as their favorite restaurant.
Mang Inasal aspires to be Filipinos most
favored quick-service restaurant.
The vision statement is not time-bound. It fails
to mention when the company wants to achieve
their goal as the most favored restaurant by
Filipinos.

Mission Statement Analysis and Evaluation


The mission statement of Mang Inasal is:
To consistently provide our customers a great pinoy dining experience.

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Mang Inasal intends to give its customers an amazing Pinoy dining experience.
The firm competes in the Philippine fast food market and is currently one of the most
prosperous fast-food chains in the country. Throughout the years, Mang Inasal gives the
customers their best product and service quality to gain their customers desires for their
product. By means of their effective implementation, Mang Inasal intends to gain
customer dependence for the companys survival, growth, and profitability in the long
run. Unlike other fast-food chains, Mang Inasal has an efficient method for serving their
customers, focused mainly on refilling its customers plates (unlimited rice, free soup,
etc.). With these traits together with their large workforce and developed processing
system, Mang Inasal has an exceptional competitive advantage. Also stated in the
companys vision, Mang Inasal provides job opportunities for jobless people, as well as
available suppliers, giving it a good public image. In accordance to law, Mang Inasal
gives employee benefits to its workers.
b. Recommendations
Recommended Vision
By 2017, Mang Inasal will be the preferred quick service restaurant by Filipinos
everywhere in the Philippines.
Parameter
1. Customers
2. Products & services
3. Markets
4. Technology
5. Concern for survival,
growth, profitability
6. Philosophy
7. Self-concept
8. Concern for employees
9. Concern for public
image
10. Concern for nation
building

Yes/No
If yes, which part of the statement
Yes
provide our customers
Yes
great pinoy dining experience
No
No
No
No
No
No
No
No

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The new vision now indicates a clear indication when will it be attained. In five
years, Mang Inasal will be have every branch in the Philippines as it continues to grow
every single day. The old vision is vague as it just answers everywhere and does not
indicate whether it is outside or inside the Philippines.

Recommended Mission
To consistently provide Filipinos with a variety of pinoy foods to choose from
especially our famous chicken inasal. Moreover, we are committed to provide our
customers a great pinoy dining experience, to achieve growth by having more
branches, to take care of our employees, to take care of our environment and to also
give something back to society. As leading in the barbeque fast food industry, our
company promotes Integrity, Honesty and welfare of every individual working in
Mang Inasal.

The old mission was too short; the new mission indicates that the firm will
provide its customers variety of pinoy foods with a great dining experience. The new
mission also mentions about having growth, concern for employees, image and
society. Furthermore, by having the firm to promote Integrity, Honesty and welfare of
its employees, this will help Mang Inasal to grow and develop new things in the
future.

Internal Audit
Management Audit
The company uses basic strategic management concepts like the Backward

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Integration, by getting raw materials and products from their suppliers. Although the
firm uses this, some of its franchises dont have Certified Public Accountants in
managing their financial statements. This means that they do not have standardized
management strategies in all of its franchises and this is very hard for them to fully
organize the business.

The firms objectives and goals are measurable and well communicated to its
employees, managers and franchisees. They see to it that they have the same ideas
and intentions for Mang Inasal to develop.

The employee turnover in company is moderate as the firm has many


employees in each of its branches in the country. Absenteeism of employees is low
but from time to time there are still some employees who do not go to work. The
company follows the standard sick leave and vacation leave with all of its employees.
Marketing Audit
Segmentation of Markets
Mang Inasal is a nationwide company. The target market of the company is the
Filipino people. As stated in the vision statement of the company, they will be the
preferred restaurant of every pinoy everywhere in the Philippines. Also, students and
workers are the main customers of the company because of its very affordable
products that fit to the budget of the Filipinos.
Positioning
As Jollibee Food Corporation (JFC) is known to have the most branches of its
fast food chain in the Philippines; it is now a part owner of Mang Inasal. JFC

28

improved the position of Mang Inasal being the 3 rd fast food chain to have the most
number of branches in the country.
Fast Food
Chain
Jollibee
Chowking
Mang Inasal
Greenwich
Mcdonalds

No. of
Branches
686
431
423
330
325

Market Shares
The companys market share is still the leading fast food chain with the development
of JFC. The firm outnumbered its competitors by having four times the number of
branches it has in the country.
Barbeque Fast
Food Chain
Mang Inasal

No. of
Branches
423

Reyes Barbeque

90

Chic-Boy

71

Bacolod Chicken
Inasal

20

Sales and Distribution System


The company has its own commissary system that is found in Metro Manila and Iloilo
and easily distributes its goods and products to its nearby branches. However, the
firm is having a hard time in distributing goods and products in the provinces. So the
branches outside the Metro purchase their supplies in the nearby stores, which is more
costly.
The company sale from 2009 is 850 M. In 2010, the company sale increased by 36%
from 2009 that is 2 B. The company sales still exceeded the cost of sales, operating
and other expenses, so it still enable to generated a vast amount of net income during

29

the years.

Product
The company has a limited variety of products to choose from. Since the barbeque
fast food industry is trending, its competitors and other businesses entering the market
easily imitate the products of Mang Inasal. However, the firm is still leading because
of its fast services in delivering the food to its costumers.
Pricing
The price of the products of the firm fit aptly. The products are very affordable that
entices the customers to by from them. Nevertheless, its key competitors also imitate
the prices of their products as they follow the firm.
Promotions Capability
The company proactively promotes its products as people can see in billboards and tv
advertisements of Mang Inasal everywhere. The firm spends a lot on promotion and
advertising their products in order for them to have more customers. Also, the firm
has a famous endorser that also made Mang Inasal more popular and increasing the
companys profit.

Financial Audit
Growth
Sales Growth
The increase in the sales of the company grew significantly. As the business

30

continues, it will have more sales as more stores of Mang Inasal open nationwide.

Revenue Growth
The revenue growth of the company grew 97% from 2008 to 2009. The sales
compensate the operating expenses, taxes and other expenses in gain more than
enough to sustain the business. From 2009 to 2010, the revenue grew 62% and in the
upcoming years, the revenue will still continue to significantly grow.

Comparative Growth Rate


Comparing the company to its key competitors. Mang Inasal is still leading at a faster
rate of 73% in the sales and 62% growth in the net income. Chic-Boy is next to the

31

company as more of its stores are opening. Bacolod Chicken Inasal has a 49.73%
sales growth but it did not compensate the net loss of the company.

Profitability
Margin Growth
In 2009, the margin growth of the company is at its highest and it decreased in 2010.

Comparative Margins
Chic-Boy has a higher gross profit margin than Mang Inasal. However, Mang Inasal
has a higher operating profit margin and net income margin compared to Chic-Boy
32

but it is still close.

Return on Assets
The return on asset of the company improved from 26% in 2009 to 33% in 2010. The
companys competitors are far behind with an 8% of Chic-Boy and -1.19% of
Bacolod Chicken Inasal.

33

Return on Equity
Mang Inasals return on equity decreased from 79% in 2008 to 69% in 2009. The
10% decrease was not a hindrance to the company as it increased 129% in 2010. The
return on equity of its competitors is -28.5%.

Activity and Efficiency


Inventory Turnover
Mang Inasal is better in efficiently selling its inventory compared to Chic-Boy.
Bacolod Chicken Inasal has no inventory turnover. Mang Inasal has its worst
inventory turnover in 2008 but it improved in 2009 by 17.38%.

34

Asset Turnover
A decrease of 1.7 in 2009 in the asset turnover is the worst rate. However, it grew
3.77 in 2010, as it is a good sign that the company is using its assets in generating
sales. The key competitors average is still lower than Mang Inasal only 2.47 asset
turnover.

35

Liquidity
Mang Inasal is still leading as the most liquid in terms of current and quick ratio.
Despite this, there is still a decline in the current ratio and quick ratio of Mang Inasal
2009 and 2010.

36

Cash Flow
Investing activities mainly provides the companys cash. In 2008, cash was provided
in the operating activities of the business. There is no amount of financing activities
in 2008 and investing activities in 2010.

37

Working Capital
The working capital of the company increases every year. In 2010, it has a 98.36%
growth from 2009 and due to this, the company can cover the companys liabilities
during the year.
Working Capital
2008
2009
2010

Amount
717,282.30

Growth
69.65%

3,107,207.4
7
185,894,260

81.25%
98.36%

Solvency
Leverage Ratio
Bacolod Chicken Inasal is the most highly leveraged compared to the other
companies. This can lead to the insolvency of the business if this still continues.
Mang Inasal is least leveraged compared to its key competitors with a debt ratio of
0.28.

38

Production Audit
The company has very fast service in delivering food to the table of its customers.
The employees are organized and efficiently work to be able to maintain its fast
services. The facilities and amenities of the company are in good condition that
enables the employees to work in a healthy environment. The companys firm are
strategically located almost everywhere as the branches can be seen where there are
many people, which gains the firm a lot of attention. The company has advanced
internal operating system that is very easy for the managers and owners of the firm to
monitor every branch in the country.

Information Systems
In 2009, Mang Inasal partnered with Oracle, which is the most complete, open and
integrated business software and hardware systems, with more than 370,000
customers globally. Oracle will helps Mang Inasals efficiency in running the
business. In addition, Oracle has state of the art multiple operating system options

39

that gives customers unmatched benefits from industry-leading products and low total
cost of ownership.

7S FRAMEWORK
Strategy
The company proactively promotes their products, which is in line in the trending
barbeque fast food industry that attracts many customers and made Mang Inasal
popular. The numerous branches of the company also made Mang Inasal very
successful as people can see the fast food chain almost everywhere in the country.

The integration strategy of the company is the turning point of success. Jollibee
bought 70% of the shares of Mang Inasal made the firm more popular and Jollibee is
known to be one of the best in promoting their products and leading fast food industry
in the country.

Based from the Porters Five Forces, the purchasing power of consumer is strong as
the products only ranges from P49 to P99. The company generates a big amount of
income as more customers buy products from Mang Inasal branches nationwide that
is cost affordable.

Evaluation: Effective
Capitalizing on advertising the company that shows their products are delicious yet
very affordable and increasing number of branches are the advantages of Mang Inasal
from its competitors, as more customers will buy from them. In addition, the public

40

admired the company as Jollibee bought 70% of the shares of the company. This
made the Mang Inasal worthy that caught the attention of one of the biggest company
in the Philippines and considers buying the business.
Shared Values
The mission statement does not state any core values of the company. However, the
company shows compassion by helping alleviating the unemployment of the country
since it provides job opportunities to Filipinos. Also, the company provides job
opportunities in certain areas to community members as they provide supplies for the
company to operate.

Evaluation: Needs Improvement


The company lacks in presenting their core values, as it is not stated in the mission
statement. Nevertheless, the company still shows their concern to the society by
having projects helping the poor and providing job opportunities to the unemployed
Filipinos.
Structure
Edgar J. Sia II
Chairman/CEO

Ferdinand J. Sia
President/COO

//
//

OPERATIONS
Elmer Hementera
VP-Operations

BUSINESS
FINANCE AND
COMMISSARY TREASURY HUMAN RESOURCE MARKETING
Enri
Ruiz
De
DEVELOPMENT
CONTROLLERSHIP
James V. Dy
Shella A. Sia
Jess Nemenzo
Marvin Ramos
Venancio C. Parcon VP-Commissary EVP-Treasury Corporate HR Manager Luzuriaga
Marketing
Manager
BDD Head
VP-Finance

The company organizational structure is hierarchal with each


41

of the departments of the company has its main functions. All of the information
regarding the management of the company disseminated from the chairman all the
way to its employees. The construction of the business development department,
which its main objective is to improve and create new stores, made a big impact on
the companys growing status as it continuously creates new Mang Inasal branches
nationwide.

Evaluation: Good
The company has a good organizational structure especially when company created
the business development department that is they key of the success of the business,
as its main objective is to build more branches of Mang Inasal.
Systems
The companys information dissemination is good as employees and staffs are well
informed of the new projects and business plans that the company has in store for its
customers. Each department does their roles effectively in making the business
successful. The heads of the different departments see to it that their staffs do the
tasks assigned to them and able to manage their own departments. Before the
franchisees manage their own branch of Mang Inasal, they are first instructed of how
to manage and operate their own branches for it to be successful. The company
promotes consistency with all of its branches so that it will be managed well.

42

Evaluation: Good
Consistency is one of their priorities in managing the company. As the number of
branches of the company is increasing, they see to it that they provide outstanding
and exceptional products and services to its consumers in every branch that they own.
Style
The companys success is attributed to its high standards. It can be summarized into
F.S.C. The company believes that every food (F) served to their customers must
meet the standards set by the company. Excellent customer service (S) is one of the
backbones of the company, where the employees are expected to deliver with a fast
and courteous service at all times. Cleanliness (C) is very important for Mang Inasal
both inside and outside the store as the employees clean the restaurant and they
themselves have presentable appearance at all times.

Evaluation: Helpful
The high standard of the company is the main reason why Mang Inasal is very
successful. The company sees to it that they have the utmost services, operation and
management of the business. The employees are trained well in serving its customers
and they must comply with the fast services that the company promotes.

Staff
Employee growth is supported through series of trainings that the company provides.
In March 2010, the company has a new training center, which has a mock-up of a
typical Mang Inasal store. The training center is a part of the companys drive in
improving its services, management, services and food quality. This is a certification

43

program for all of its employees and soon it will become a requirement prior to the
opening of new Mang Inasal stores. The company has good compensation and benefit
package to encourage their employees to work their very best. The company also
provides career pathing of its employees that provides opportunities for them to
pursue a higher career in the company.
Evaluation: Effective
The certification program for the employees is an effective way to promote the
consistency and to have better operations in the company. This will not only serve as
a growth of the company but also to its employees. The employees are given
opportunities to grow and excel in their careers as the company gives them a chance
to prove themselves that they are qualified in earning a higher position in the
company.

Skills
The company has intensive trainings for its employees to be efficient and promote the
companys high standards. The managers also trained and continuously learn the
latest systems in operating the store and people management skills.

Evaluation: Good
The skills are in line with the goals of the company to be the best and have the fast
services in delivering food to its customers. The company is able to attain their goal
through managing and training the employees.

44

VII.

Strategy Formulation

a. External Factor Evaluation


1. Opportunities and Mang Inasals responsiveness

O1 Trending barbecue fast food industry (Socio Cultural)


http://www.philstar.com/Article.aspx?articleId=764743&publicationSubCategoryId=108

Rating 3 - This helps promote the firm to expand more branches across the Philippines,
as many customers are fond of the growing barbecue fast food industry. Mang Inasal is
leading with 423 branches nationwide as the number 1 barbecue fast food chain. It also
ranked 3rd, as the biggest fast food industry in the Philippines.

Number of Stores of Mang Inasal


50
100

2008
2009

423
300

2010
2011

O2 Technological advancements in the field of poultry production (Technological)


http://www.ublcorp.com/broilers.html

45

Rating 2 - There are some recent studies that will help in producing poultry faster
through poultry genetics. Ultra Natural Plus is a poultry feed additive containing more
than 20 enzymes combined with beneficial organic plant extracts of natural origin in a
concentrated, easy to use and mix liquid form. Used as a poultry drinking water additive
for poultry broilers, layers and turkey grower applications. Although it is still not
available in the Philippines, this will help the firm to produce more food in a short period
of time. This will help the sales of Mang Inasal to grow and generate more income in the
future.

O3 Growing number of people who uses Internet and Mobile Phones (Technological)
http://business.globe.com.ph/sme/news/mang-inasal-opens-300th-branch

Rating 2 - Globe Business opens Globe Negostar, which aims to aid small and medium
enterprises (SME), to help them cut on cost of operations and boost productivity. Mang
Inasal uses this as it helps them expand more branches and easily communicate with its
employees, suppliers and franchisees through the services of Globe.

46

No. of People

No. of Internet Users


10,000,000
5,000,000
0
2000

2002

2005

2007

2008

2009

Year

O4 Increasing number of potential owners through franchising (Socio-cultural)


http://franchisephilippines.org/8-best-philippine-franchises/

Rating 3 People today recognize franchising as a new way of starting a new business
instead of thinking their own concept. Franchising is very easy because many businesses
accept franchising their products and services. Although franchising can be costly, but
there are many benefits like the brand name and they can assistance with the management
of the firm to help them put up a successful business.

O5 Increase in demand for packaged food products due to more people moving to
urban areas
http://www.nzte.govt.nz/explore-export-markets/market-research-by-industry/Food-andbeverage/Pages/Food-and-beverage-market-in-the-Philippines.aspx

Rating 2 More Filipinos are expected to move to urban areas because of better work
opportunities so that they can provide for their own families that they cannot sustain

47

living in rural areas. This will increase the demand for packaged food products. However,
affordability will remain an important factor due to the limited disposable income of most
households. Mang Inasal offers affordable meals that will pass the budget of most
Filipinos.

2. Threat and Mang Inasals responsiveness


T1 Large number of direct and indirect competitors (Economic)
http://www2.pse.com.ph/html/ListedCompanies/pdf/2011/JFC_17A_Dec2010.pdf
http://www2.pse.com.ph/html/ListedCompanies/pdf/2011/AGI_17A_Apr2011.pdf

Rating 3 - Annual reports of Jollibee Food Corporation and Alliance Global Group,
INC., These companies control more than half of the fast food industry market share. It
describes how saturated the market is.

Barbecue Fast Food Industry in the

Number ofPhilippines
Stores of Mang Inasal
(As of 2011)
No. of Stores

500
400
300

50

2008

100

423

2009

423

200
100

2010

300

0
Mang Inasal

90
Reyes
Barbecue

71
Chic-Boy

2011
20
Bacolod
Chicken
Inasal

48

Fast Food Stores in the


Philippines
(As of 2011)
800

No. of Stores

700
600
500
400
300
200
100
0
Jollibee

Chowking

Mang
Inasal

Greenwich Mcdonalds

T2 Decline of Palay
Production that may lead to inflated rice prices (Economic)
http://countrystat.bas.gov.ph/
Rating 1 Serving unlimited rice has captures a lot of customers for Mang Inasal.
However, due to the declining Philippine agriculture, rice prices have plummeted to
nearly P60 per kilo last 2008. Palay production must be stable and consistent to obtain
price stability for rice.

Palay Production Growth Rate


10.00%
5.00%

Palay Production Growth


Rate

0.00%
2005 2006 2007 2008 2009 2010 2011
-5.00%

49

T3 Filipinos are looking for a healthier lifestyle (Socio-cultural)


http://www.allaboutdiabetes.net/promoting-filipino-healthy-lifestyle/

Rating 2 - As we all know, Mang Inasal offers unlimited rice for most of its meals.
However, more and more Filipinos are leaning towards a healthier lifestyle for longevity
and tranquility.

T4 Health related risks of poultry (Socio-cultural)


http://www.birdlife.org/news/news/2007/03/avian_flu_report.html

Rating 3 - Mang Inasal's most famous product is chicken. The article above describes
how avian fluenza or bird flu moves and being transferred from imported frozen poultry
to humans. It discusses the danger of catching the said disease through imported frozen
poultry.

T5 High number of foreign companies entering the fast food market vs. local brands
(Economic)
http://www.tripleiconsulting.com/main/philippines-business-registration/find-out-why
Rating 3 Many foreign companies enter in the Philippines because of the low cost and
high income in doing business in the country. Also, globalization is happening
worldwide, especially in the Philippines. Filipinos widely accept products and services
offered by foreigners and oftentimes, they prefer these to local brands. Mang Inasal will

50

have a hard time in selling their products, as many competitors will enter the country in
the future.

3. EFE Matrix

Key External Factors

External Factor Evaluation Matrix


Source
Weight

OPPORTUNITIES
O1 Trending barbecue fast food industry

Rating

Weighted
Score

Socio-cultural

0.2

0.6

O2 Technological advancements in the


field of poultry production
O3 Growing number of people who uses
Internet and Mobile Phones
O4 Increasing number of potential owners
through franchising
O5 Increase in demand for packaged food
products due to more people moving to
urban areas
THREATS
T1 Large number of direct and indirect
competitors
T2 Decline of Palay Production that may
lead to inflated rice prices
T3 Filipinos are looking for a healthier
lifestyle
T4 Health related risks of poultry

Technological

0.10

0.2

Technological

0.10

0.2

Socio-cultural

0.10

0.3

Socio-cultural

0.05

0.1

Economic

0.15

0.45

Economic

0.05

0.05

Socio-cultural

0.05

0.1

Socio-cultural

0.10

0.45

T5 High number of foreign companies


entering the fast food market vs. local
brands
Total

Economic

0.10

0.3

2.75

b. Competitive Profile Matrix


As an established industry, Fast Food service has been a nest for a number of
companies and choosing key competitors for Mang Inasal would have been very difficult.

51

Fortunately, Mang Inasal is part of an another branch for fast food service simply because
their products, pricing and level of quality are different from the key players of the
Philippine Fast Food Industry- Jollibee Food Corporation and Alliance Global Group, Inc
(the master franchise holder of McDonalds in the Philippines). Key competitors of Mang
Inasal were limited to three- Chicboy and Bacolod Chicken Inasal. These companies along
with Mang Inasal have the same product line (barbeque or grilled food) and pricing is
almost identical.

1.1 Key Competitors of Mang Inasal


Competitor #1 Chic-Boy
According to their web site, Chic-Boy is a new trademark and business model of
Pier One Bar and Grill Holdings Corporation, the company behind the successful Pier One
Bar and Grill restaurant chain in the Philippines. Having first tried the delicious and tasty
lechon manok and lechon liempo in Cebu and the Chicken Inasal of Bacolod, Pier One
Bar and Grill Holdings Corporation saw its business potential and the opportunity to tap
into the lechon manok, lechon liempo and chicken inasal industry and therefore, brought
the secret recipe to Manila. Chic-Boy opened its first Dine- In store last 05 May 2010
and began offering its Dine-In store concept for franchise. In just 1 year and 3 months
since we opened our first franchised store in Molito Alabang, we have grown into a total
of eighty five (85) dine- in stores, eighty one (81) units of which are franchised. Fortyfour (44) more franchised stores are under construction.

Chic-Boy has been constantly growing and it is the archrival of Mang Inasal for

52

it also offers the same level of quality in all aspects, i.e. food and service. Chic-Boy also
offers an unlimited rice and unlimited iced tea, which Mang Inasal pioneered in the
Barbeque Fast Food Industry.

Competitor #2 Bacolod Chicken Inasal


According to their web site, Bacolod Chicken Inasal is owned and managed by
the sisters and brother team of Rose, Bing and JM Tanalgo, Bacolod Chicken Inasal
opened its first take out and delivery counter in 1993. It was a small take out spot at
EDSA Central Complex in Mandaluyong City with delivery services to the Ortigas and
Mandaluyong areas. The Tanalgo siblings opted to start out with a small stall to first have
a feel of the market in Manila.

Bacolod Chicken Inasal is the oldest of the four but its slow growth and expansion
has been the biggest factor of their small market share even though they are the pioneer of
serving chicken inasal in the metro.

1.2 Critical Success Factors


CSF #1 Price Competitiveness
Price is very important especially for fast food businesses because the threat of
substitutes is strong. Filipinos are very price sensitive and an increase in price will turn
them off. Price competitiveness is not a matter of the cheapest price but it is about being
able to deliver delicious and high quality products while the consumers pay affordable and
justified prices. In Filipino terms sulit.

53

Importance Weight: 30%

CSF #2 Marketing and Advertising Initiatives


In an industry where competition is tight, marketing and advertising your products
will help your company have an advantage over competitors. Some firms perceive
marketing as an expense and they fail to see the value of marketing and advertising.
Marketing is an investment for the firms future.
Importance Weight: 20%

CSF #3 Market Share


Having a bigger market share assures the firm profit and longevity. The
percentage of an industry or market's total sales that is earned by a particular company
over a specified time period. Market share is calculated by taking the company's sales
over the period and dividing it by the total sales of the industry over the same period.
This metric is used to give a general idea of the size of a company to its market and its
competitors. A larger market share assures the firm the driver seat of the industry.
Importance Weight: 10%

CSF #4 Product Quality


Price competitiveness assures you of customers. However, loyal customers are
achieved through high quality products. Consumers are very particular with product
quality- one mistake they may never buy again.
Importance Weight: 5%

54

CSF #5 Branding and Image


A reputable brand will be a free marketing for the firm. Brands are not only part
of the business it is the institution of the business. Big brands like Jollibee and
McDonalds have continually dominated the fast food industry because of their brand and
image. A tarnished image will discourage consumers from buying.
Importance Weight: 10%

CSF #6 Product Variety


A limited product line is a disadvantage for the firm. Consumers get tired from
buying the same food again and again. Product variety will be very important for
expansion and longevity of the firm.
Importance Weight: 5%
CSF #7 Service Quality
Consumers want to feel important. Service quality must be right on the middle for
consumers do not like unnecessary employee interactions. Consumers also hate being
neglected.
Importance Weight: 5%

CSF #8 Accessibility
Accessibility in the location of stores of the company is very important to attract
and entice customers. It is very important factor in having a business because by having
good and accessible location, the company will generate more income as more customers

55

buy from them.


Importance Weight: 15%

1.3 Mang Inasal CSF Ratings


CSF#1 Mang Inasals Price Competitiveness (4)
Mang Inasals products ranges from P49-P99. Most of their customers are students
and people part of the labor force. Students and workers usually have a tight budget. Aside
from being affordable, Mang Inasals unlimited rice promo have encouraged Filipinos
(loves rice) to buy again and again even though their product line was limited (they
recently expanded their product line).
Source: http://www.manginasal.com/ourmenu.html

CSF#2 Mang Inasals Marketing and Advertising Initiatives (4)


Aside from the Mark Bautista endorsement, Mang Inasal started a new advocacy
program supporting OPM. Mang Inasal has continually invested time and money for
marketing and advertising purposes.
Source:

http://www.philstar.com/Article.aspx?

articleId=763242&publicationSubCategoryId=70
http://www.youtube.com/watch?v=aPuqUl-64zs

CSF#3 Mang Inasals Market Share (4)


Through franchising, Mang Inasals branches have grown to 300. Mang Inasal is

56

regarded as the fastest growing fast food chain in the country. In the Barbeque Fast Food
Industry, Mang Inasal is the clear market leader.
Source: http://business.globe.com.ph/news/mang-inasal-opens-300th-branch

CSF#4 Mang Inasals Product Quality (4)


Overall employee performance and quality of products Mang Inasal have kept its
standards high enough. However, according to an interview with Ms. Andrea Tan Lim, a
franchisee of Mang Inasal, customers sometimes complain about not receiving free soup
and the food is not cooked properly but these are just minor complaints that will not
affect the overall standard of Mang Inasal.

CSF#5 Mang Inasals Branding and Image (3)


A part of Mang Inasal enterprise was sold to Jollibee Food Corporation. Mang
Inasal as a brand that caters to the masses. JFCs involvement with Mang Inasal is a boost
for the brand.
Source: http://business.inquirer.net/money/topstories/view/20101019-298456/Jollibee-tobuy-70-stake-in-Mang-Inasal-for-P3B

CSF#6 Mang Inasals Product Variety (2)


Mang Inasals menu is still not diverse as other fast food restaurants. The company
only promotes its chicken inasal promos, which the customers have only a limited of
products to choose from.
Source: http://www.manginasal.com/ourmenu.html

57

CSF#7 Mang Inasals Service Quality (4)


Mang Inasal has fast service in serving food to their customers. The company has
a training facility that has a mock-up branch of Mang Inasal to further improve serving
the customers.
Source: http://www.manginasal.com

CSF#8 Mang Inasals Accessibility (4)


The company has an outstanding strategic location of their branches nationwide. In
addition, Mang Inasal has the most number of branches compared to its competitors.
Source: http://www.manginasal.com

1.4 Chic-Boy CSF Ratings


CSF#1 Chic-Boys Price Competitiveness (3)
Chic-Boys products costs around P49-P99 like Mang Inasal and Bacolod Chicken
Inasal. They have been able to attract more and more consumers because of their
affordable prices. However, some of its products like the drinks and desserts are more
expensive than Mang Inasal.
Source: http://chic-boy.com.ph/menu_cm.html

CSF#2 Chic-Boys Marketing and Advertising Initiatives (2)


This is one weakness for Chic-Boy. Aside from billboards and print ads, Chic-Boy
have failed to introduce their brand nationwide. Chic-Boy is the youngest fast food chain

58

among the four restaurants.

CSF#3 Chic-Boys Market Share (3)


Being the youngest fast food chain among the four restaurants, Chic-Boy was able
to expand and open branches around the metro and Luzon. Chic-Boy is behind Mang
Inasal for the most number of branches in the country. Since opening their first dine-in
store last 2010, Chic-Boy was able to attract investors and franchisees that helped them
expand.

CSF#4 Chic-Boys Product Quality (3)

Some things to love about this place: its name (dont you just love the pun on
chickboy?), the pre-inflationary prices (a steaming bowl of sinigang at P49!) and the
deadly, highly addicting combination of chicken inasal and roasted pork belly which are
the house specialties.
Source:
http://www.annalyn.net/2010/05/31/chic-boy-balamban-liempo-goes-to-manila/
CSF#5 Chic-Boys Branding and Image (4)
Despite the Chic-Boy Caterpillar Scandal was first posted through social media,
Chic-Boy continues to thrive and build their brand against all odds. Also, Chic-Boy is
leading in terms of its branding and image as its target market are the young professionals.
Sources: http://newsinfo.inquirer.net/109857/%E2%80%98look- there%E2%80%99scaterpillar-on-my-veggies%E2%80%99

59

CSF#6 Chic-Boys Product Variety (4)


Aside from their lechon products, Chic-Boy was able to take different dishes from
Luzon, Visayas and Mindanao. They have one of the most diverse product line for a
fastfood chain.

CSF#7 Chic-Boys Service Quality (3)


Their service was efficient; the crews are very attentive to their customers. They
make sure that they will prioritize you and your entire request will be granted.
Source: http://rackell24lumberio.blogspot.com/2010/05/chic-boy.html

CSF#8 Chic-Boys Accessibility (3)


The company is second in having the most number of barbecue fast food
nationwide. However, the Chic-Boy still struggles because the company is still far behind
from Mang Inasal.

1.5 Bacolod Chicken Inasal CSF Ratings


CSF#1 Bacolod Chicken Inasals Price Competitiveness (2)
Bacolod Chicken Inasal prices ranges from P49.50 to P99.50. Bacolod chicken
inasal is much expensive than Chic-Boy and Mang Inasal. However, they still maintain
their prices affordable for people with tight budgets.
Sources: http://www.reyesbarbecue.net/menu/regular-menu/

60

CSF#2 Bacolod Chicken Inasals Marketing and Advertising Initiatives (3)


The brand was known in the telenovela in ABS-CBNs Ysabella as it partnered
with Bacolod Chicken Inasal. It also continuously promotes its name through radio
advertisements.
Sources: http://www.reyesbarbecue.net/uncategorized/ensogo-and-reyes-barbecue-tie-up/
http://www.reyesbarbecue.net/news/checkout-our-latest-billboards/

CSF#3 Bacolod Chicken Inasals Market Share (1)


Bacolod Chicken Inasal garnered the lowest score for Market Share. Expansion
has been stagnant for Bacolod Chicken Inasal and they have failed to reach 30 branches
since their opening in 1993.

CSF#4 Bacolod Chicken Inasals Product Quality (2)


Although Bacolod Chicken Inasals main specialty is the chicken inasal, it began
to expand a more wide selection of Visayan as well as Filipino favorite dishes. Bacolod
Chicken Inasal continually improves their products and develops new dishes to keep up
with its customers needs and wants. It has 10 main product categories with over 100
dishes for the customers to enjoy.
Sources: http://www.mymeryl.com/2009/04/reyes-barbecue-restaurant-review.html

CSF#5 Bacolod Chicken Inasals Branding and Image (2)


Bacolod Chicken Inasal is the oldest brand among the four fast food chains. Their
products have appeared in TV shows like Ysabella and Betty La fea. However, Bacolod

61

Chicken Inasals consumer base is limited to the metro because they have not expanded
to rural provinces especially northern Luzon.

CSF#6 Bacolod Chicken Inasals Product Variety (4)


Bacolod Chicken Inasal continually improves their products and develops new
dishes to keep up with its customers needs and wants. It has 10 main product categories
with over 100 dishes for the customers to enjoy.

CSF#7 Bacolod Chicken Inasals Service Quality (2)


Bacolod Chicken Inasal has poor service compared to Mang Inasal and Chic-Boy.
It slow service affects the loyalty and entry of new customers to their stores.

CSF#8 Bacolod Chicken Inasals Accessibility (2)


Bacolod Chicken Inasal has strategic locations of their stores that are found inside
malls and other establishments. However, it is not enough because the company has only
20 branches nationwide.

1.6 Competitive Profile Matrix (CPM) Ratings

62

Mang
Inasal

ChicBoy

Bacolod
Chicken
Inasal

Critical Success
Factors

Weight

Rate

Score

Rate

Score

Rate

Score

Price
Competitiveness

0.30

1.2

0.9

0.6

Marketing and
Advertising
Initiatives

0.20

0.8

0.4

0.6

Market Share

0.10

0.4

0.3

0.2

Product Quality

0.05

0.2

0.15

0.1

Branding and
Image

0.1

0.3

0.4

Product Variety

0.05

0.1

0.15

0.2

Service Quality

0.05

0.2

0.15

0.1

Accessibility

0.15

0.6

0.45

0.3

Total

3.8

2.90

0.2

2.30

c. Internal Factor Evaluation Matrix


1. Strengths and Mang Inasals responsiveness
S1 Aggressive in promoting their products (Strategy)
http://www.adobomagazine.com/global/module.php?
LM=news.level1&id=1320818761405
http://www.businessweekmindanao.com/2011/11/04/whats-cooking-with-mang-inasals11-11-11/

63

Rating 4 - Mang Inasal makes itself known through all the promotional tools
possible and it also makes sure that it makes the company present to masses. Mang
Inasals endorser is Mark Bautista were you can see his face on billboards and print ads.
Last year, the 11-11-11 advertisement of Mang Inasal became a mystery to the public;
you can see it everywhere from billboards to commercials. This advertising strategy made
Mang Inasal more popular as many are curious and excited for what is going happen on
the said date. Mang Inasal wishes for the masses to retain the catchy jingles and
commercials it presents, bringing more customers to the fast food chains thus increasing
profit for the company.

S2 Market leader in the barbecue fast food chain (Product)


http://www.ats-sea.agr.gc.ca/ase/5991-eng.htm

Rating 3 - Mang Inasal became the largest barbecue fast food chain in the Philippines by
being accessible and putting up many outlets nationwide, through its affordability and
products suited according to Pinoy taste.

S3 Accessibility: Strategic locations catering to the masses (Strategy)


http://www.mb.com.ph/articles/263972/the-expansion-mang-inasal

64

Rating 3 - Mang Inasal has widened its scope placing its stores strategically, letting its
customers access their stores with convenience. Having hundreds of branches across the
country, finding the nearest Mang Inasal store wouldnt be such a burden. Having high
visibility, it will always be an option for consumers to dine-in and enjoy the services of
the firm has to offer.
S4 Intensified employee competency through establishment of a new training facility
and program (Employee)
http://business.inquirer.net/money/topstories/view/20100814-286799/Union-of-batchoyand-inasal-creates-a-business-boom

Rating 3 The owner of Mang Inasal, Edgar J. Sia, partnered with the owners of Decos
Original batchoy. Chicken inasal products go together with batchoy and this will be a
great product and additional brand to carry with the expansion of the firm. With the help
of Sias Injap Investments Inc., Decos has six restaurants in Iloilo and plans to have
more branches in Manila.

S5 Increased Operational Efficiency through the acquisition of an enterprise planning


software (Strategy)
http://www.manginasal.com/images/MI_NewsLetterDesign_2010a.pdf

Rating 4 - Mang Inasal partnered with Oracle, which is one the most compete and
integrated business software and hardware systems that will help Mang Inasal with their
internal operating systems. This will also help the firm, as more branches are being set up

65

nationwide and by this system, it will be very easy to be monitored by the managers and
owners of the firm the operations that have done by its employees.

2. Weaknesses and Mang Inasals responsiveness


W1 Poor restaurant environment (Resources)
http://passingparadigms.blog.com/tag/customer-service-2/
Rating 2 - Some Mang Inasal branches are not as good as others. There is no consistency
of how the structure of Mang Inasal is made, although the interior of each stores are the
same but some branches lacks space, no air conditioning units and have untidy
surroundings.

W2 Limited products offered to consumers (Product)


http://www.manginasal.com/ourmenu.html

Rating 2 Mang Inasal has a limited variety of products to choose from. Customers
satisfaction will diminish; the company should add more products to their menu so that
customers will buy more from them.

W3 Inconsistency in distribution of products (Resources)


http://www.manginasal.com/ourmenu.html

66

Rating 2 Mang Inasal commissary in the country works at the top of its game but as it
expands to other provinces, constraints will surely be faced. The firm has no capacity to
maintain this kind of system in every branch in the Philippines in order to suplly
ingredients 24/7.

W4 Inconsistency of the quality of products (Product)


http://a1pinoy.blogspot.com/2011_07_01_archive.html

Rating 2 There are feedbacks from customers that the quality of products served in the
branches of Mang Inasal are different from one anothr. Some branches offers good
quality of their product line, while others doesnt have the ample quality that consumers
should enjoy. Mang Inasal has a problem with its inconsistent uniformity with the taste of
their foods that is a problem because the firm has a hard time in monitoring because it has
too many branches to control.

W5 Unable to maximize 24-hour services (Product)


http://www.nzte.govt.nz/explore-export-markets/market-research-by-industry/Food-andbeverage/Pages/Food-and-beverage-market-in-the-Philippines.aspx

Rating 3 Mang Inasal has stores that open 24/7. This is very costly for the company
because there are only few customers who buy from them at the middle of the night, thus
generating a low amount of income.

67

3. IFE Matrix
Key External Factors
STRENGTHS
S1 Aggressive in promoting
their products
S2 Market leader in the
barbecue fast food chain
S3 Accessibility: Strategic
locations catering to the masses
S4 Intensified employee
competency through
establishment of a new training
facility and program
S5 Increased operational
efficiency through acquisition of
an enterprise resources planning
software
WEAKNESSES
W1 Poor restaurant environment
W2 Limited products offered to
consumers
W3 Inconsistency in distribution
of products
W4 Deficiency in assessing and
evaluating branch and employee
performances
W5 Unable to maximize 24hour services
Total

Internal Factor Evaluation


Source
Weight
Rating

Weighted Score

Strategy

0.15

0.6

Product

0.05

0.15

Strategy

0.15

0.45

Employee

0.10

0.4

Strategy

0.10

0.4

Resources
Product

0.10
0.05

2
2

0.2
0.1

Resources

0.10

0.2

Operations

0.15

0.3

Product

0.05

0.15

2.95

d. SWOT
The SWOT matrix helps develop four types of strategies, which are the StrengthsOpportunities

(SO),

Weaknesses-Opportunities

(WO),

Strengths-Threats

(ST)

and

Weaknesses-Threats (WT).

Market Development Strategies:

68

1. S3-T1: Branch out stores in Mindanao specifically in urbanized cities

Market Penetration Strategies:


1. S1-O1: Hire new product endorsers i.e. John Lloyd Cruz and Anne Curtis
2. S1-S4-S5-O4: Organize a Mang Inasal Franchise Summit to attract potential franchisees
3. S1-T1-T5: Intensify social media marketing

Product Development Strategy:


1. W3-O3: Build a smooth communication channel for faster distribution of products from
the supplier to the branches
2. W4-O4: Form a department for auditing and evaluating the companys financial
statements and books of records.
3. W1-W2-O3: Conduct research through mobile and online surveys

Related Diversification Strategy:


1. W2-T3-T4: Adding more and healthier products their menu i.e. pinakbet, chopseuy and
laing

SWOT Matrix:

69

STRENGTHS (S)
S1 Aggressive in promoting their products

WEAKNESSES (W)
W1 Poor restaurant environment

S2 Market leader in the barbecue fast food


chain
S3 Accessibility: Strategic locations
catering to the masses
S4 Intensified employee competency
through establishment of a new training
facility and program

W2 Limited products offered to


consumers
W3 Inconsistency in distribution of
products
W4 Deficiency in assessing and
evaluating branch and employee
performances

S5 Increased operational efficiency through


acquisition of an enterprise resources
planning software

W5 Unable to maximize 24-hour


services

OPPORTUNITIES (O)
O1 Trending barbecue fast food
industry

SO STRATEGIES
S1-O1 (Market Penetration) Hire new
product endorsers i.e. John Lloyd Cruz and
Anne Curtis

O2 Technological advancements in
the field of poultry production

S1-S4-S5-O4 (Market Penetration)


Organize a Mang Inasal Franchise Summit
to attract potential franchisees

WO STRATEGIES
W3-O3 (Product Development) Build a
smooth communication channel for
faster distribution of products from the
supplier to the branches
W4-O4 (Product Development) Form a
department for auditing and evaluating
the companys financial statements and
books of records.
W1-W2-O3 (Product Development)
Conduct research through mobile and
online surveys

SWOT MATRIX

O3 Growing number of people who


uses Internet and Mobile Phones
O4 Increasing number of potential
owners through franchising
O5 Increase in demand for
packaged food products due to
more people moving to urban areas
THREATS (T)
T1 Market becomes saturated due
to booming fast food industry

ST STRATEGIES
S1-T1-T5 (Market Penetration) Intensify
social media marketing

T2 Decline of Palay Production


that may lead to inflated rice prices

S3-T1 (Market Development) Branch out


stores in Mindanao specifically in
urbanized cities

WT STRATEGIES
W2-T3-T4 (Related Diversification)
Adding more and healthier products their
menu i.e. pinakbet, chopseuy and laing

T3 Filipinos are looking for a


healthier lifestyle
T4 Health related risks of poultry
T5 High number of foreign
companies entering the fast food
market vs. local brands

70

e. SPACE MATRIX
The Strategic Position and Action Evaluation (SPACE) Matrix, is a fourquandrant framework that indicates whether the firm needs an aggressive, conservative,
defensive or competitive strategy for the organization. There are four factors that are very
important to determine the firms strategic position, which are the financial position,
competitive position, stability position and industry position.

a. Financial Strength (FS) Ratings: For FS use +1 (worst) to +6 (best)


Mang Inasal is very efficient in using its assets in generating sales, as its asset turn
over rating is +3. The firms liquidity rating is +6 because of marketability and made it
stronger with associating with Jollibee Food Corporation. Mang Inasal is now the leading
barbeque fast food industry so it enables to gain more revenues each year with a rating of
+5.

b. Industry Strength (IS) Ratings: For IS use +1 (worst) to +6 (best)


A +5 rating for growth potential is given to the firm because it has a huge chance of
making it more successful as it known nationwide. The profit potential rating is +5
because it has many branches in the Philippines that the firm can generate more income
as they continue to put up more branches. A rating of +3 in resource utilization as the
company is using their raw materials efficiently.

c. Environmental Stability (ES) Ratings: For ES use -1 (best) to -6 (worst)

71

It is very easy to put up a business in the Philippines, especially in the fast food
industry. A rating of -5 is given to the barriers to entry into market because there are a lot
of competitors in the food industry. The price range of competing products is -3 as more
business sells affordable meals to Filipinos. A -2 rating for the inflation rate as prices of
products continues to increase. The technological change rating is -1 since more new
products are being invented and sold worldwide and technology is growing faster over
the years.

d. Competitive Advantage (CA) Ratings: For CA use -1 (best) to -6 (worst)


The market and advertising initiatives and market share rating are both -1. Mang
Inasal is the number in the barbeque fast food industry and it continues to grow as more
branches are built. People can see everywhere advertisements and endorsements of Mang
Inasal. The branding and image rating is -2 since the part owner of the firm is Jollibee
Food

72

Financial Strength
High Assets Turn-over
Liquidity
Net Revenue
Average
Industry Strength
Growth Potential
Profit Potential
Resource Utilization
Average
Economic Stability
Price range of competing products
Inflation Rates

Rating
+3
+6
+5
+4.67

Barriers to entry into market


Technological Changes
Average
Competitive Advantage
Market and Advertising Initiatives
Market Share
Branding and Image
Product and Service Quality
Average

-5
-1
-2.75

+5
+5
+3
+4.33
-3
-2

-1
-1
-2
-2
-1.5

Corporation that is a prestige and a well-known brand. The product and service quality
rating is -2 as it product line is appropriate to its prices that are low cost budget meals for
the people to enjoy.

Space Matrix:
Based from SPACE matrix, Mang Inasal belongs in the Aggressive quadrant. The firms
should pursue backward, forward and horizontal integration, market penetration, market
development, product development and related or unrelated diversification.

Space Matrix Calculation

ES (-2.75) + FS (+4.67)= 1.92

73

CA (-1.5) + IS (+4.33)= +2.83

f. Internal-External Matrix
Based on the I-E matrix, Mang Inasal falls in cell V. The recommended strategies are
hold and maintain for the firm. Market penetration and product development strategies
can be used.
Total Weighted Score for IFE= 2.95
Total Weighted Score for EFE= 2.75
4.0

3.0

2.0

74

II

IV

III
VI
Mang Inasal

VII

VIII

IX

3.0-4.0
2.0-2.99
1.0-1.99
Result: Hold and maintain
Strategies: Market Penetration and Product Development
g. Grand Strategy Matrix
Using the Grand Matrix Strategy, firms are positioned in in one of the four quadrant
depending on the firms competitive position and industry growth.

Market Growth Rate- Rapid


Demand for food service industry will always be high because of its genre. Restaurants
and fast food chains are the main contributors for the food service industry to which
Mang Inasal belongs. In the year 2009, there are 13,348 restaurants, bars, fast food chains
and other drinking and eating-places present in our country and it continues to grow until
this time. In Mang Inasal case, with the help of the increasing chicken barbecue industry
and an increase in the number of people who are interested in franchising then its market
continuous to grow.

75

Competitive Position- Strong


Mang Inasal has a strong competitive position for the reason that it is the market leader in
the barbecue fast food industry. Because of its being proactive in promoting and
advertising its products and having accessible locations of store for the people, it was able
to attract customers and top the barbecue fast food industry.

Competitive Position- Strong


Mang Inasal has a strong competitive position for the reason that it is the market leader in
the barbecue fast food industry. Because of its being proactive in promoting and
advertising its products and having accessible locations of store for the people, it was able
to attract customers and top the barbecue fast food industry.
Rapid Market
Growth
II
Market Development
Market Penetration
Product Development
Horizontal Integration
Divestiture
Liquidation

I
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification

III
Retrenchment
Related Diversification
Unrelated Diversification
Divestiture
Liquidation

IV
Related Diversification
Unrelated Diversification
Joint Venture

76

Weak
Competition
Position

Strong
Competition
Position

Slow Market
Growth
Mang Inasal falls under the quadrant one of the grand strategy matrix. Under this
quadrant, market development, market penetration, product development and related
diversification are available for business. However, Mang Inasal cannot adapt horizontal
integration for they are bought by its competitor Jollibee Food Corporation. Forward
Integration is not also available since Mang Inasal dont offer merchandise that can be
directly sold. Lastly, Backward Integration will not be appropriate since Mang Inasal has
different suppliers.

h. Summary of Strategies
After doing the TOWS, SPACE, Internal-External, and Grand Strategy Matrices,
different recommended strategies where tallied to determine the most common option
for the firm.
Market Penetration
Market Development
Product Development

TOWS
X
X
X

SPACE
X
X
X

I-E
X
X

GRAND
X
X
X

TOTAL
4
3
4

77

Forward Integration
Backward Integration
Related Diversification
Horizontal Integration
Concentric Diversification
Alliance/Merger
Divestment
Liquidation

X
X
X
X

X
X
X
X

2
2
3
2
0
0
0
0

The most common options are Market Penetration and Product Development. For
the third strategy, Market Development and Related Diversification got the same
total. However, market development strategy will suit the company better.

i. Quantitative Strategic Planning Matrix (QSPM)


The Quantitative Strategic Planning Matrix (QSPM) is an instrument that is used in
order to evaluate the strategies and alternative strategies, based on the different external and
internal factors that are listed.

On Opportunities:
Market Penetration is effective when usage rate of customers could be increased
significantly. A rating of 4 is given to more Filipinos are moving to urban area since this
will help in order to increase the market share of Mang Inasal since new customers will be
tapped by the firm through its advertisements.

Market development is most suitable when there are new channels of distribution will be
available. Increase in number of potential owners through franchising receives a rate 4 for
the reason that the new franchisee will be able to provide new location of Mang Inasal store

78

which are not yet tapped. A rate of 3 is given to Market Penetration for the same
opportunity since new store of Mang Inasal will be able to attract new customers.

A rating of 4 is given to product development for trending barbecue fast food industry for
it is most acceptable since Mang Inasal competes in a high-growth industry. Technological
advancements in the field of poultry production and growing number people who uses
Internet and mobile phones also receives a rating 4 for this can help in order for Mang
Inasal to improve their products and customer services.

On Threats
Product Development is highly applicable to compliance to sanitary standards. Mang
Inasal should always check the sanitation of their different branches and enhance its service
for sanitation; therefore it receives a rating of 4. Market Penetration got a rating of 2 since it
is not that much applicable to this factor.

Market Penetration is used in order to increase sales through marketing efforts. High
number of foreign companies entering the fast food market vs. local brands would mean
more competitors. Thus, further marketing efforts is needed by Mang Inasal in order to
penetrate and attract customers from its different competitors.

A rating of 4 is given to the Product Development for Saturation of the market due to
booming fast food industry. Mang Inasal should improve its products and menu in order to
compete with its direct and indirect competitors and those established and new fast food

79

chains. Market Penetration receives rating of 3 to attract more customers in order to


increase further the market share of Mang Inasal.

Health related risks of poultry products and Filipinos are looking for healthier lifestyles
are not rated for the reason the three strategies are not applicable to these factors.

On Strengths
As a market leader in the barbecue fast food chain and being aggressivein promoting their
products, market penetration is the best strategy to use. Mang Inasal can continue to do
more advertising and do promos in order to drag bigger market. A rating of 3 is given to
Market Development in order for Mang Inasal to expand more their areas to the different
parts of the Philippines and go International. Being a leader not only in market share but
also in marketing and advertising its products, they can also focus on improving their
product or add more to their menus through product development in order to keep its
customers more satisfied.

Market Development is most suitable to the accessibility of the locations of the restaurant
to masses. Mang Inasal could expand to the different provinces of the Philippines especially
to those areas where there are lesser Mang Inasal restaurants.

The three strategies are not suitable intensified employee competency though
establishment of new training facility program and increased operational efficiency through
acquisition of an enterprise resource.

80

On Weaknesses
The weakness of inconsistency in distribution of products can be solved through adding
more commissaries in order for the different restaurants to have a better distribution of
products. A rating of 3 is give to product development since inconsistency of distribution
would also mean inconsistency of the products. Mang Inasal can further improve their
services.

The weaknesses that there are only limited products offered to consumers can be solved
through product development. Mang Inasal can create new products and specialties that
they will cater to its customers. A rating of 2 is given to market penetration and 1 for
market development since they are not suitable to these factors.

Market Penetration is most applicable in addressing the weakness of unable to maximize


its 24-hour services. Market Development receives a rating of 3 because Mang Inasal can
create new market in order to satisfy its 24-hour services. Poor restaurant environment and
deficiency in assessing and evaluating branch and employee performances are not rated
since none of the three strategies is applicable.

81

KEY FACTORS
Weight
Opportunities
1. Trending barbecue fast food
industry
2. Technological advancements
in the field of poultry
production

Market
Penetration
TS
AS

Market
Development
TS
AS

Product
Development
TS
AS

0.20

0.20

0.60

0.80

0.10

0.20

0.30

0.40

3. Growing number of people


who uses Internet and
Mobile Phones

0.10

0.30

0.20

0.40

4. Increasing
number
of
potential owners through
franchising
5. More Filipinos are moving to
urban area
Threats
1. Market becomes saturated
due to booming fast food
industry

0.10

0.30

0.40

0.10

0.05

0.20

0.15

0.05

0.15

0.45

0.30

0.60

2. Compliance to sanitary
standards

0.05

0.10

0.15

0.20

3. Filipinos are looking for a


healthier lifestyle
4. Health related risks of poultry
5. High number of foreign
companies entering the fast
food market vs. local brands
Total Weight
Strengths
1. Aggressive in promoting their
products
2. Market leader in the barbecue
fast food chain
3. Accessibility:
Strategic
locations catering to the
masses
4. Intensified employee
competency through
establishment of a new
training facility and program
5. Increased
operational
efficiency through acquisition
of an enterprise resources
Weaknesses
1. Poor restaurant environment
2. Limited products offered to
consumers
3. Inconsistency in distribution
of products
4. Deficiency in assessing and
evaluating
branch
and
employee performances
5. Unable to maximize 24-hour
services
Total Weight
TOTAL

0.05

0.10
0.10

0.40

0.30

0.20

0.15

0.60

0.45

0.30

0.05

0.20

0.15

0.10

0.15

0.45

0.60

0.15

0.10

0.10

0.10
0.05

0.05

0.10

0.20

0.10

0.20

0.40

0.30

0.15

0.05

0.20

0.15

1.0

0.1082

1
3.85

4.25

3.8

VIII. Recommendations
a. Strategic Objective
The strategic objective of to maintain its dominance of the barbecue fast food
industry here in the Philippines by adding more and healthier products, branching out thirty
more branches in Mindanao, increasing its advertising efforts through hiring new product
endorsers, taking advantage of advertising on public mass transportation systems and fixing
administrative deficiencies.
Mang Inasal is currently on top of the barbecue fastfood industry. In 2011, Mang Inasal
generated a gross profit of P432, 200,000.00 and total expenses of P383, 100,000.00. Mang
Inasal was able to achieve a net income of P49, 100,000.00 and Mang Inasals liabilities
amount to P374, 943,939.00. However, Edgar "Injap" Sia, founder and CEO Mang Inasal,
knows that there would come a time when Mang Inasal will stop expanding. The question
will be how will Mang Inasal handle an inevitable drop in sales and expansion. An
assessment of their strength and weaknesses, along with the external opportunities and
threats, has concluded that Mang Inasal should focus more on product development.
Mang Inasal has been dominating the middle class. Most of their consumers are
students and people from the labor force. It would be very important for them to continue
dominating this class because here in the Philippines about 35% of the population is part of
the labor force and are students.

b.
Recommended Strategies
1. Market Development Strategies
a. S3-T1 Branch out stores in Mindanao specifically in urbanized cities

83

Opening 30 more branches in Mindanao will be a very important business move


for Mang Inasal. Mang Inasal have successfully opened branches in different key citites
and provinces in Luzon and Visayas. However, Mang Inasal must realize that branching
out in Mindanao will be very beneficial to them especially if they will be able to open up
branches in the key cities and provinces in Mindanao.

2. Market Penetration Strategies


a. S1-O1 Hire new product endorsers
b. S1-O5 Increase brand visibility by taking advantage of advertising on mass
transportation systems
c. S1-T1-T5 Intensify social media marketing
Mang Inasals initiative to promote and advertise their products is one of the best
ways to increase their sales. Aside from this, because of the trending barbecue fastfood
industry Mang Inasals promotions will yield much better and positive results. Instead of
relying on Mark Bautista alone Mang Inasal must hire more endorsers for their ptoduct.
Visayan celebrities will be very effective to be their product endorsers. Mang Inasal also
has a number of gigantic billboards around the metro. However, Mang Inasal must also
invest in advertising on mass transportation systems like MRT, LRT 1 and 2, and PNR.
People on the go will be able to see this as they ride these transportation systems. Social
media channels like Twitter and Facebook will provide free advertising.

d. S1-S4-S5-O4 Organize a Mang Inasal Franchise Summit to attract potential


franchisees

84

Through this franchise summit, Mang Inasal will be able to discuss and explain the
nature and procedures of a branch and acquring a franchise. This will help Mang Inasal
attract potential franchisees.

3. Product Development
a. W4-O4 Form a department for regulating and evaluating branches and employee
performances to enhance employee competency and branch longevity for potential
franchisees
b. W1-W4-T2 Set up a sanitation compliance team to ensure that sanitary standards
are met for each branch
Mang Inasal must establish an Evaluation and Regulatory Department as well as a
Sanitation Compliance Team. These two newly instituted departments will help maintain
above average employee performances and a relatively healthy franchise fiscal year
performance.

c. W1-W2-O3 Conduct research through mobile and online surveys


Customer loyalty is very difficult to quantify or qualify because a lot of factors must
be taken into account. However, conducting mobile and online survey will enable Mang
Inasal learn how consumers perceive they brand and products.

d. W3-O3 Build a smooth communication channel for faster distribution of products


from the supplier to the branches
Shortage of stocks in Mang Inasal branches will be prevented if a smooth and clear

85

communication channel between the distributor (commissary) and the branch so that
delivery and emergency replenishment of stocks will be set and will be on time.

c. Financial Projection
Financial Objective
The financial objectives of Mang Inasal are to increase its net income by 25% and
increase in return of equity by 50% consecutively through 2012, 2013, and 2014.
Financial Assumptions
This year, as Mang Inasal faces its competitors (i.e. Chic-boy and Bacolod Chicken Inasal),
Mang Inasal may experience a slower growth than before (also considering inflation and
exchange rates).

Expected Success Rate of Marketing Programs


Mang Inasal has been doing quite well in terms of how they sell their goods. As Mang
Inasal hires more potential workers/employees (but not too much, as it will lead to
"diseconomies of scale"), they are becoming more efficient in terms of the efficiency and
accuracy of its services.

Market Condition
The fast food industry has been growing and (expectedly) will still continue to grow in the
future. With this assumption, there will/might come a time when Mang Inasal will be
"outmatched" by another fast food company.

86

Equipment Performance/Durability
As technology advances and as Mang Inasal continues (hopefully) to grow, Mang Inasal
would be able to purchase more advanced equipments that will improve the efficiency in
selling/producing their products.

Ease of Credit Collection


Mang Inasal assumes that none of its receivables are impaired (as of 2011), which means
that over the past years, the business had no problem dealing with credit sales. But as the
number of Mang Inasal's customers is increasing, they will find it more difficult to collect
its receivables.
Ratio against
competitors

MANG
INASAL

CHIC
-BOY

BCI

Rating

1. CURRENT RATIO

1.19

0.79

0.29

2. QUICK RATIO
3. INVENTORY
TURNOVER

0.93

0.61

n/a

23.29

13.96

n/a

4. DEBT RATIO
5. TIMES INTEREST
EARNED
6. OPERATING
INCOME RETURN ON
INVESTMENT
7. OPERATING
PROFIT MARGIN
8. TOTAL ASSET
TURNOVER
9. FIXED ASSET
TURNOVER
10. RETURN ON
EQUITY
11. RETURN ON
ASSET

0.28

0.41

2.05

41.83

5.14

n/a

0.47

0.14

-1.19

0.13

0.12

-0.26

3.77

0.37

11.93

0.74

4.57
13.2
8

0.79

0.13

-0.7

0.33

0.08

-1.19

87

From a financial perspective, Mang Inasal is doing better than its competitors.
Ultimately, Mang Inasal has the greatest return on equity with a ratio of 0.79 during the
year 2010, compared to that of Chic-boy and Barbecue Chicken Inasal (BCI) with ratios
0.13 and 0.7 (deficiency), respectively. (The n/a indicated on BCI Inasal is because BCI
has no report on its inventory and interest expense.)
MANG INASAL
(CURRENT AND
PREVIOUS)

2010

2009

Rating

1. CURRENT RATIO

1.19

1.24

2. QUICK RATIO

0.93

1.10

3. INVENTORY
TURNOVER

23.2
9

17.3
8

4. DEBT RATIO

0.28

0.62

5. TIMES INTEREST
EARNED
6. OPERATING
INCOME RETURN ON
INVESTMENT
7. OPERATING
PROFIT MARGIN
8. TOTAL ASSET
TURNOVER

41.8
3

33.5
4

0.47

0.38

0.13

0.22

3.77

1.70

9. FIXED ASSET
TURNOVER
10. RETURN ON
EQUITY
11. RETURN ON
ASSET

11.9
3

7.43

0.79

0.69

0.33

0.26

88

Projected Financial Statements


Cash
As the firm operates, Mang Inasal is expected to receive cash inflows from its
operations. It may be in the form of collection of its Accounts Receivables, Sale of
Property or Equipment, Sale of Inventories, or Income itself.

Receivables (Net)
During 2012, Mang Inasal is expected to have a significant decrease in Accounts
Receivables. This phenomena is evident because there has been a decrease in most of the
Financial Ratios for the year 2011, yet Operating Income Return on Investment remains
positive, which means that the firm is still making profit. But in 2014, Mang Inasal is
expected to lend firms/people more plus interest, resulting to further increases in
Accounts Receivable.

Inventories
In 2012, Mang Inasal is expected to not sell as much as 2011 (by looking at the financial
ratio); therefore, inventories increase. But in 2013, suppose there will be foreigners who
will be residing in the country, given the current positive growth in the Philippine economy
(around 3% aggregately). But, in 2014, Mang Inasal is expected to experience a tight
competition between rising number of competitors, old and new (given a limited
population).
Other Current Assets

89

Mang Inasal is expected to have an increasing number of other assets (e.g. prepaid
expenses, scrap value of equipment) during its operations.

Property and Equipment


Mang Inasal is expected to buy more property in the succeeding years because it aims to
dominate the market. Given more property, more equipments are needed.

Deferred Tax Asset


We assume that Mang Inasal does not pay its taxes in advance in the succeeding years.

Other Non-Curretn Asset


Other non-current assets include organization cost, goodwill, franchise, trademarks, trade
names, patents, copyrights, etc. Because of the increasing number of branches, it is
expected to have an increase in other non-current asset.

Accounts Payable and Accrued Expenses


In the succeeding years, Mang Inasal is assumed to be liquid and is able to pay its debts.
Therefore, accounts payable and accrued expenses are expected to decrease.

Current Portion on Borrowings due to a Related Party


So far, there is a great decrease (more than half) in this account in 2009 and 2010.
During the year 2011, this account is assumed to have zero balance, and it continues to
remain at zero in the succeeding years.

90

Income Tax Payable


Suppose that in 2012, Mang Inasal will be able to pay a portion of its income tax
payable. However, in the succeeding years, Mang Inasal focuses on its expansion, given
the rise of new competitors; therefore, the firms income tax liability increases.

Borrowings- Net of Current Portion


Mang Inasal, given its relatively high income, pays its borrowings before paying
its Income Tax, as the borrowings entail Mang Inasals trust to the lenders. As a result,
Mang Inasal would rather pay for its borrowings before paying for its income tax
liability.

Capital Stock
The capital stock is assumed to be constant throughout 2012, 2013 and 2014.

CURRENT RATIO
QUICK RATIO
INVENTORY
TURNOVER
DEBT RATIO
TIMES INTEREST

2008
3.57
2.75

2009
1.24
1.1

2010
1.19
0.93

2011
1.09
0.85

2012
1.42
1.14

2013
1.84
1.51

2014
2.39
2.00

71.21
0.98
n/a

17.38
0.62
33.54

23.29
0.28
41.83

4.23
0.61
21.89

2.42
0.48
34.41

2.34
0.38
36.67

2.10
0.30
40.11

91

EARNED
OPERATING INCOME
RETURN ON
INVESTMENT
OPERATING PROFIT
MARGIN
TOTAL ASSET
TURNOVER
FIXED ASSET
TURNOVER
RETURN ON EQUITY
RETURN ON ASSET

0.021
0.008
1

0.38

0.47

0.71

0.74

0.77

0.83

0.22

0.13

0.83

0.59

0.55

0.53

2.62

1.7

3.77

0.08

0.81

0.66

0.52

8.50
1.29
0.014

7.43
0.69
0.26

11.93
0.79
0.33

0.28
0.21
0.08

2.61
0.24
0.09

2.24
0.27
0.10

1.88
0.33
0.12

Projected 2012 to 2014 Financial Ratios


Interpretation:

Overall, Mang Inasal should be doing well financing its available assets due to
increases in Operating Income Return on Investments. But, Mang Inasal made financial
sacrifices such as borrowing money (also subjected to more interest expenses) and buying
more financial assets (expansion). The buying 70% of Mang Inasal by Jollibee had the
greatest impact on Mang Inasals Financial Ratios (leading to decreases in all ratios
except Operating Income Return on Investments). But according to how Mang Inasal is
doing in the first quarter of 2012, Mang Inasal should be able to regain its financial
growth in assets in the next 5 years, unless affected by externalities. In the projected
financial statements, Mang Inasal is expected to have a slower growth or a decreasing
growth as it faces new competitors. But, by comparing the financial ratios of Mang Inasal
with Chic-boy and Reyes Barbecue, Mang Inasal is still leading in the barbecue fast food
industry.

92

Financial Objective
Mang Inasal should have an increase in Return on Equity by 50% consecutively
throughout the years 2012, 2013, 2014 to maintain competitiveness and profitability
while maintaining a low cost level (around just a 15% increase) relative to its gross
income.

93

d. Departmental Programs
Each and every department of Mang Inasal has an important role for the implementation
and effectiveness of market and product development strategies.

94

Strategy Map

Development of Extended
Share Holder Value
Expanded Growth of
Capitalization

Increase in Net Income

Revenue from new


Franchisees

Pang-masa ang lasa, affordable pa!


To consistently provide our customers a great pinoy dining experience.

Intensified Social Media and Public


Mass Transportation System Marketing
Increasing brand awareness through
marketing channels like television ads,
print ads and public mass transportation
advertising will be an investment for
the company.

Human Capital
Establishment of an evaluation
and regulatory body and a
sanitation compliance team
Consistent employee
performance will not only be an
asset to the company but it will
be a bridge for a better
customer-business relationship.

Branch out stores in Mindanao


Reinforced
Franchising
Reinforced
Franchising
specifically in urbanized cities
Paradigm
and
Mang
Inasal
Paradigm
and
Mang
Inasal
Mang Inasal must realize that
Franchise
Summit
Franchise
Summit
Mang
Inasal's
BDD
must
Mang
Inasal's
BDD
must branching out in Mindanao will be very
beneficial to them especially if they
realize
thethe
importance
ofof
realize
importance
will be able to open up branches in the
quality
stores.
Potential
quality
stores.
Potential
key cities
and provinces Capital
in Mindanao..
franchisees
areare
very
price
Organizational
franchisees
very
price
Information
Capital
sensitive.
Every
franchise
is is
anan
sensitive.
Every
franchise
Utilization of Computerized
asset
forfor
thethe
company.
asset
company.
Customercentric and teamAccounting Systems,

based paradigm.

Communication Solutions
and a Customer Management
System.

Marketing
Mang Inasal's marketing development has been developing strategies and brand direction
which will contribute to Mang Inasal's desire to become a leader in innovation, creativity,

95

and customers relations in the years to come. The marketing department must focus more
on brand awareness and they must realize that mouth to mouth marketing is still the best
and cost-efficient way to market your brand and product. Aside from the conventional
marketing schemes, Mang Inasal must understand the value of of their asset and working
with their strengths.

Intensified Social Media and Public Mass Transportation System Marketing


Increasing brand awareness through marketing channels like television ads and print ads
will be an investment for the company. However, Mang Inasal must take full advantage of
the popularity of social media and start promoting and advertising through the internet.
Internet marketing is much cheaper compared to television ads and print ads. Intensified
brand marketing will be needed for an effective market penetration and development
strategies. Aside from this, LRT 1 and 2, MRT, PNR and other public transporations are
potential advertising hotspots fot Mang Inasal and must take fully advantage of these
hotspots. Marketing is needed to sell the product right now and where ever.

Operations
Mang Inasal's Newsletter reports that the Operations department started the year with the
release of the revised Operations manual for the five basic stations namely kitchen,
counter, quality control, dining and grill. Recently, OD released the revised Cash Control
Policies, brought about by the opportunities encountered by the stores in handling of sales
and funds. OD is in the continuing process of reinforcing the knowledge and skills of the
management team members and crew on the Basics of our Operations focusing not only

96

on the systems and procedures embodied in the revised Operations Manual, but on other
aspects of running the business as well. Skills of managers in the achievement of sales
objectives and management of controllable expenses are now being honed with store
management teams coming up with daily targets for sales and expenses. How sales targets
are achieved, (good Cycle of Service, GRC concept, etc.) as well as ways to manage
expenses, are the orders of the day. Recently, OD has also started teaching the managers
how to compute for the food cost, the biggest expense in the PnL. Upcoming Operations
activities are focused on how to manage food cost and food cost variance troubleshooting.

Establishment of an evaluation and regulatory body and a sanitation compliance team


Mang Inasal must establish an Evaluation and Regulatory Department as well as a
Sanitation Compliance Team. These two newly instituted departments will help maintain
above average employee performances and a relatively healthy franchise fiscal year
performance.

Conduct research through mobile and online surveys


Customer loyalty is very difficult to quantify or qualify because a lot of factors must be
taken into account. However, conducting mobile and online survey will enable Mang
Inasal learn how consumers perceive they brand and products.

Business Development
According to Mang Inasal NewsLetter, BDD or Business Development Departments

97

creation on January 2009 made a big impact on Mang Inasals growing status (number of
stores built, alignment to quality and improvement and creation of new store designs).
From its 100 total stores opened in five years (2003-2008), a phenomenal achievement was
recorded when it opened 100 stores in just a year (2009) - a mark on history not only in
Mang Inasal but in the whole fast-food industry as well. As BDD is gearing up towards its
300th store in October of this year (with more than 50 stores already on process and lined
up to open first quarter of next year), growth and success will be inevitable for Mang
Inasal.

Reinforced Franchising Paradigm and Organize Mang Inasal Franchise Summit


Mang Inasal's BDD must realize the importance of quality stores. Potential franchisees are
very price sensitive. BDD must be able to explain tranparently every expense franchisees
are paying for their store. BDD must also prove that every peso spent for owning a Mang
Inasal franchise is worth it. In a franchising business, every franchise is an asset for the
company. Through this franchise summit, Mang Inasal will be able to discuss and explain
the nature and procedures of a branch and acquring a franchise. This will help Mang Inasal
attract potential franchisees.

Branch out stores in Mindanao specifically in urbanized cities


Opening 30 more branches in Mindanao will be a very important business move for Mang
Inasal. Mang Inasal have successfully opened branches in different key citites and
provinces in Luzon and Visayas. However, Mang Inasal must realize that branching out in
Mindanao will be very beneficial to them especially if they will be able to open up
branches in the key cities and provinces in Mindanao.

98

Finance and Controllership


The Finance and Controllership Department is responsible for gathering financial related
reports from various segments of the Company and prepares consolidated Financial
Statements in accordance with applicable Philippine Financial Reporting Standards.
This is in compliancewith the disclosure requirements of the Securities and Exchange
Commission. The head of the department sees to it that well-developed accounting systems
and internal controls are operational and in place. This is because periodic and timely
accounting reports to the board are a major tool for decision making.

Utilization of Computerized Accounting Systems, Communication Solutions and a


Customer Management System.
Mang Inasal has already invested money for the acquisition of an Enterprise Resource
Planning software (ERP) of Oracle thru its Philippine affiliate, Active Business Solutions,
Mang Inasal is poised for business dominance in the fastfood industry. Computerized
Accounting System (CAS) refers to the integration of different component systems to
produce computerized books of accounts and computer-generated accounting records and
documents. CAS will be very useful for Mang Inasal because it is an asset for the company
and its franchises. CMS and CS are very important for a smooth and hassle-free operations

Training
According to Mang Inasal's Newsletter, improvements in Mang Inasals services are

99

expected as staff and crew get trained and certified in the new training center that is now
operational at the former commissary in Tramo, Metro Manila. The reconstruction of the
commissary into a training center started in March 2010 and includes a mock-up of a
typical Mang Inasal store. President Ferdinand Sia said the training center is part of the
companys thrust in improving operations, services and food quality. Existing stores will
be required to have their store employees, cashiers, dealers and dining crew trained and
certified. This is a certification program for all who work with Mang Inasal, said the
President. The certification program for employees will soon become a requirement prior
to the opening of any new Mang Inasal store.

Customercentric Training Series


Mang Inasal must make it a point to train their employees in such a way that customers
will appreciate the service being given to them. Consistency must be instilled to each and
every employee. Consistent employee performance willl not only be an asset to the
company but it will be a bridge for a better customer-business relationship.

IX.

Evaluation and Success Indicators


a. Balance Scorecard
GOALS-DASHBOARD

100

MEETS
EXPECTATION

ALERT

BELOW
EXPECTATION

15%-39%

14%

20%-49%

19%

30%

5%-29%

19%

25%

10%-24%

9%

OPERATIONS

REDUCE UTILITY
COSTS
(VARIABLE
COST)
15%

10%-14%

9%

LEARNING
AND
GROWTH

SEARCH FOR
EFFICIENT
EMPLOYEES TO
BOOST
PERFORMANCE

5%-3%

2%

FINANCE

CUSTOMER

GROWTH IN NET
INCOME
40%
IMPROVE
CAPITALIZATION 50%
ATTRACT
UPPER-CLASS
BUSINEESSMEN
ATTRACT
FOREIGNERS

6%

101

b. Contingency Planning
Downside Potential Events
Key Concerns
Mass Production of chicken and
other meats by injecting
numerous antibiotics and
stimulants

Action Plan
Enhance the Research and Development
team. Hire a part-time health inspector
(To be aware and updated of current
health issues)

Enhance the Research and


Introduce new menu items
Development team. Hire a parttime health inspector (to be aware
and updated of current health
issues)
Rise of Production and Other
Compensate by moderately increase the
Costs
mark-up of goods sold.
Upside Potential Events
Key Concerns
Increasing Prices of Land

Growth in the Philippine


Economy

Action Plan
Offer Leases

Invite potential investors

102

X.
1.
2.

References
Fred, David. Strategic Management. 7th edition. 2009.
Securities and Exchang Commission Audited Financial Statements for Mang
Inasal, Chic-Boy and Bacolod Chicken Inasal

3.

Tan. Andrea. Mang Inasal Franchisee. Personal Communication. January 2012.

4.

http://www.manginasal.com

5.

http://www.scribd.com/doc/64568286/MANG-INASAL

6.

http://www.manginasal.com/images/MI_NewsLetterDesign_2010a.pdf

7.

http://www.philstar.com/Article.aspx?
articleId=764743&publicationSubCategoryId=108

8.

www.thepoultrysite/articles/364/poultry-genetics-for-pastured-production

9.

http://business.globe.com.ph/sme/news/mang-inasal-opens-300th-branch

10.

http://franchisephilippines.org/8-best-philippine-franchises/

11.

http://www.nzte.govt.nz/explore-export-markets/market-research-byindustry/Food-and-beverage/Pages/Food-and-beverage-market-in-thePhilippines.aspx

12.

http://www2.pse.com.ph/html/ListedCompanies/pdf/2011/JFC_17A_Dec2010.pdf

13.

http://www2.pse.com.ph/html/ListedCompanies/pdf/2011/AGI_17A_Apr2011.pdf

14.

http://www.birdlife.org/news/news/2007/03/avian_flu_report.html

15.

http://www.philstar.com/Article.aspx?
articleId=763242&publicationSubCategoryId=70

16.

http://www.youtube.com/watch?v=aPuqUl-64zs

103

17.

http://business.inquirer.net/money/topstories/view/20101019-298456/Jollibee-tobuy-70-stake-in-Mang-Inasal-for-P3B

18.

http://chic-boy.com.ph/menu_cm.html

19.

http://rackell24lumberio.blogspot.com/2010/05/chic-boy.html

20.

www.annalyn.net/2010/05/31/chic-boy-balamban-liempo-goes-to

21.

www.newsinfo.inquuirer.net/109857/%E2%80%98look-there%E2%80%99scaterpillar-on-my-veggies%E2%90%99

22.

http://www.reyesbarbecue.net

23.

http://www.mymeryl.com/2009/04/reyes-barbecue-restaurant-review.html

24.

http://www.adobomagazine.com/global/module.php?
LM=news.level1&id=1320818761405

25.

http://www.businessweekmindanao.com/2011/11/04/whats-cooking-with-manginasals-11-11-11/

26.

http://www.ats-sea.agr.gc.ca/ase/5991-eng.htm

27.

http://www.mb.com.ph/articles/263972/the-expansion-mang-inasal

28.

http://business.inquirer.net/money/topstories/view/20100814-286799/Union-ofbatchoy-and-inasal-creates-a-business-boom

29.

http://passingparadigms.blog.com/tag/customer-service-2/

30.

http://eatallyoucanallyoucaneat.blogspot.com/2012/01/mang-inasal-lumpiangsardinas-ginataang.html

31.

http://planetphilippines.com/people/the-man-behind-mang-inasal/

32.

http://a1pinoy.blogspot.com/2011_07_01_archive.html

33.

http://www.nzte.govt.nz/explore-export-markets/market-research-by-

104

industry/Food-and-beverage/Pages/Food-and-beverage-market-in-thePhilippines.aspx
34.

http://manilareviews.com/2010/07/food-service-industryphilippines.html#ixzz1pASjlzfg

35.

http://www.census.gov.ph/data/sectordata/aspbi09_secthftx.html

36.

http://manilareviews.com/2010/07/food-service-industryphilippines.html#ixzz1pASjlzfg

37.

http://www.census.gov.ph/data/sectordata/aspbi09_secthftx.html

38.

http://killavianflu.com/stat.htm

39.

http://www.dti.gov.ph/uploads/DownloadableForms/Total%20Approved%20Foreign
%20Direct%20Investments%201996-2009.pdf

40.

http://pinoybusiness.org/2010/09/22/growing-franchising-industry/

41.

http://emievil.hubpages.com/hub/The-Advantages-and-Disadvantages-ofFranchising

42.

http://www.nzte.govt.nz/explore-export-markets/market-research-byindustry/Food-and-beverage/Documents/FB%20market%20profile%20in%20the
%20Philippines%20January%202012.pdf

43.

http://www.obesity.org.ph/?p=article2-wellness

44.

http://en.mercopress.com/2011/01/27/two-billion-internet-users-worldwide-and-mobilephone-users-increases

45.

http://www.ats-sea.agr.gc.ca/ase/5991-eng.htm

105

XI.

Appendix
a. Financial Statements
Appendix 1:Mang Inasal Income Statement
Appendix 2 Mang Inasal Balance Sheets
Appendix 3: Competitors Income Statements
Appendix 4: Competitors Balance Sheets
Appendix 5: Mang Inasal Financial Ratios
Appendix 6: Competitors Financial Ratios
Appendix 1

Appendix 2

106

Appendix 3

Appendix

107

108

Appendix 5

Appendix 6

109

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