Mary the Queen College

Jose Abad Santos Ave., San Matias, Guagua, Pampanga

Mang Inasal Philippines Inc.

A Project Strategic Marketing Management Paper Presented to the College of Business Administration

In Partial Fulfillment of the Requirements For the degree of Bachelor of Science in Business Administration Major in Marketing Management

Lopez, Rosemarie P. Mercado, Dimple Kaye V.

Acknowledgement This Strategic management paper would not have been possible without the guidance and the help of several individuals who in one way or another contributed and extended their valuable assistance in the completion of this paper. First and foremost, our deepest gratitude to our Almighty God for the blessings, wisdom and knowledge that he showered upon us. We also wanted to thank our family for the love, concern and moral support. To our friends and special someone who inspired, encouraged and fully supported us for every challenges that comes our way. And also to Mrs. Karren Joy D. Morga, CPA, Mr. Roel Felipe Torres, and Engr. Nicon Mark M. Versoza who devoted their time in helping us for the accomplishment and completion of this project. To our adviser, Ms. Lanie Galvan and to our respective consultant Mr. Isaiah Panganiban Jr. for some advises, assistance and untiring effort in encouraging us to pursue this study. We would like also to extend our thanks to Mrs. Erlinda C. Kabiling, Course Coordinator, and Mrs. Dolores T. Quiambao, Dean of College who inspired us.

Chapter 1 Introduction Fast food is food, which is prepared and served quickly at outlets called fast-food restaurants. A restaurant is an establishment that serves prepared food and beverages on tables set for individuals, pairs or larger groups, to be consumed primarily on the premises. Restaurants serve a wide variety of food at a specified cost given on its menu card for on or off the premises consumption. These includes eating establishments where customers are served at walkup or drive away ordering counters for either on or off premises consumption. However, most good restaurant serves food at tables to their customers for on-premises consumption. Many of the restaurant chains, have enhanced their annual sales many times over, well beyond the limits of the tables they can served each day, by offering hot well packed meals through free home delivery service on orders placed through a telephone call. It is a multi-billion peso industry that continues to grow rapidly in many countries. A fast-food restaurant is a restaurant characterized both by food which is supplied quickly after ordering, and by minimal service. The food in these restaurants is often cooked in bulk in advance and kept warm, or reheated to order. Many fast-food restaurants are part of restaurant chains or franchise operations, and standardized foodstuffs are shipped to each restaurant from central locations. In todays world, going to a restaurant has more to do with socializing then to just having a meal. Only a few decades back restaurants were specifically targeting families, which situation does not hold true today. Nowadays, even children; regularly eat out with their friends, on their own. Therefore, restaurants are not just about food of ambience. On a macro level, they are an important contributor to the economy while on personal levels it provides us with a place to easily connect with others.

Background of the Study Fast food industry has been in existence for the past years. The growing popularity of the industry gave way for many businessmen to put up many branches or chains in different parts of the country. This leads to the birth of fast food chains, by which Jollibee, McDonalds, KFC, Mang Inasal, Chowking, WOK Express and Greenwich are few examples. People prefer to go into fast food chains not just because of their food preference but because they serve their customer in a quick manner. Fast Food Industry is now evolving in the food service industry. Malls have been the place for these because consumers are more of hanging out while eating than buying and going around the mall. It has been fast growing in the industry because of low budget of capital and easy to manage due to franchise offers from different sectors.

Company Overview

Mang Inasal Philippines, Inc. operates quick service restaurants. It specializes in chicken inasal and various pinoy products. The companys menu include pinoy palamigs, pinoy and keso burgers, beef sinigangs, and bangus sinigangs. The company was founded in 2003 and is based in Iloilo City, the Philippines. It has additional offices in Luzon, Visayas, and Mindanao. As of November 22, 2010, Mang Inasal Philippines, Inc. operates as a subsidiary of Jollibee Foods Corp.

Company Profile Mang Inasal (Ilonggo term for Mr. Barbecue), the Philippines fastest growing barbeque fast food chain, serving chicken inasal, pork barbeque and other Filipino favorites, was first established on December 12, 2003 in Iloilo City by businessman Edgar Sia II . Apart from the usual food presentations of multinational food company copycats, Mang Inasal endeavors to adhere to elements that bear a distinctively Pinoy stamp-grilling with charcoal, rice wrapped in banana leaves, a marinade concocted out of

local spices and herbs, bamboo sticks for skewers, and the ambience that encourages kinamot (Ilonggo term in eating with the hands) whenever chicken inasal is served. Currently, there are 306 branches nationwide and with over 8,000 employees system wide. MANG INASAL is doing its share in alleviating the unemployment burden of the country. The presence of every MANG INASAL in a certain area provides not only employment but also opportunities to community members including suppliers of kalamansi, charcoal, banana leaves, vegetables, bamboo sticks, and other ingredients. It also indirectly gives income-generating activities to many. Mang Inasal is operating at the following areas: Bacolod, Iloilo, Roxas, Laguna, Bicutan, Metro Manila, Davao, Cagayan De Oro, Koronadal, Cavite, Cebu, Boracay, Baguio, Pangasinan, Tuguegarao, La Union, Pampanga, Bulacan, Mindoro, Agusan, Zamboanga, Ozamiz, Iligan, Surigao, General Santos, Pagadian, Batangas, Lucena, Naga City, Davao del Norte, Davao del Sur, Tagaytay, Palawan, Tacloban, Ilocos Sur and Tarlac. Mang Inasal is targeting to open 500 stores before 2012. Mang Inasal Iloilo Corporate Office is located at Four-Season Hotel, Delgado St., Iloilo City. The office fax numbers are (033) 508-7111 and (033) 508-5111. Manila Corporate Office located at 2316 Aurora Boulevard, Tramo St., Pasay City with fax number (02) 854-5692. You can also visit its website at www.manginasal.com or you can email at info@manginasal.com In Mang Inasal, Pinagsikapan naming laging mabilis, laging masarap, at laging abotkaya so that the Pinoy can truly say, Kumbinsing!

Edgar Sia: The man behind Mang Inasal * Sia recently received the Urban Leadership Award from the Canadian Urban Institute (CUI) Edgar "Injap" Sia II is the man behind Mang Inasal, one of the fastest growing food companies in the Philippines, which has become a modern icon of the Ilonggo culinary culture. His parents gave his the nickname Injap because Sia is originally from China while Jaruda, his mother's name, is originally from Japan. Injap stands for Intsik-Japan. His parents are businesspersons and it was expected that he take up some business-related course in college. He took up Architecture instead. Sia's first taste of running a business was when he was 20 years old. It was at the FourSeason Hotel, followed by Mister Labada, a Laundromat, then Injap Color Express, a photo developing shop. All these are based in Iloilo. Then, he cooked up the idea of operating Mang Inasal, the specialty of which is grilled chicken. It opened on December 12, 2003. Mang Inasal was instantly loved by Ilonggos. Then, it branched out to the rest of Visayas, Mindanao and Manila. Mang Inasal is well-received there, too despite the stiff competition in the grilled food business. The secret, of course is the use local herbs and spices that make the chicken taste good. The chicken is held by a bamboo stick and the rice is wrapped in bamboo leaf. Mang Inasal has 23 branches, with 10 being franchised. Sia is targeting 100 outlets by 2009. It was open for franchise in 2005. Each store employs an average of 40 people, thus generating jobs in the communities where they operate. This has become a market for local products needed by the store.

Grilled chicken isn't the only fare that Mang Inasal offers. They have Sisig, Grilled Pork, Bangus, Chicken Feet, Wings, Pecho, Liver and Baticulon, Fish and Pork Sinigang, Batchoy, Bihon, Pancit Molo, Pinoy Burger, Pinoy Mirienda, Pinoy Panamis, Pinoy Pampagana, and more. After the success of Mang Inasal, Sia revived Deco's last September 2007, considered as the original batchoy. It has branches in Delgado, Robinsons Mall and Gaisano City. Sia recently received the Urban Leadership Award from the Canadian Urban Institute (CUI). This is the second holding of the Urban Leadership Awards. This honors those who have made outstanding contributions to the enhancement of the public realm and the quality of life in the Metro Iloilo-Guimaras area. There are 10 awardees from Iloilo City. They are Sia, Henry Baviera, Sonia Cadornigara, Ma. Luisa "Marissa" Segovia, Edgar Sia for individual awardees and Iloilo Dinagyang Foundation Incorporated, Iloilo Washington Commercial, Jaro Archdiocesan Social Action Center (JASAC), SM Waste Market Fair, Taytay sa Kauswagan and Callbox, for the organization awardees.

Importance of the Study Since Mang Inasal is all about Food and Beverage, a product that categorizes as one of the most highly in demand in food, it is important to make a study to be able to know how it is being served, know its mission and vision for the benefits of the patronizes and since Mang Inasal is the fastest growing quick serve restaurant (QSR) in the country today, it is important to know some facts for the upcoming restaurant aspiring entrepreneurs in Fast Food industry.

Research and Design Methodology This paper is entirely based on the availability of primary data we gathered from employee interview, company profile and in the internet. The researcher was able to have an interview with the employees in the business branch at SM Pampanga. In this paper it includes the Competitive Analysis and Industry Analysis. This data are presented to determine the strengths, weakness, opportunities and threats of the business. SWOT analysis helps to distinguish between where your business is today, and where it could be in the future. In this paper it also used Porters Five Forces of Competition model that a company must seek to understand the nature of its competitive environment if it is to be successful in achieving its objectives and in establishing appropriate strategies. If a company fully understands the nature of the Porters five forces, and particularly appreciates which one is the most important, it will be in a stronger position to defend itself against any threats and to influence the forces with its strategy. Five forces analysis looks at five key areas namely the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products, and competitive rivalry within an industry. The PEST model is also used in this paper. The PEST Analysis or model is another tool, quite similar to the SWOT model, but it is more specialized and focused on the external environment and important factors "out there" that can affect present and future business. The PEST acronym stands for Political, Economic, Social and Technological. Of course, once political, economic, social and technological factors are identified which is the first step. The next step is to create a business strategy or strategies that will take advantage of these trends and changes, while minimizing risk to the company from those trends and changes Internal and External Analysis are also applied in this paper. Internal Analysis are the strengths and weaknesses of a company. It focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm or industry an advantage

in meeting the needs of its target markets. Any analysis of company strengths should be market oriented/customer focused because strengths are only meaningful when they assist the firm in meeting customer needs. Weaknesses refer to any limitations a company faces in developing or implementing a strategy. Weaknesses should also be examined from a customer perspective because customers often perceive weaknesses that a company cannot see. While the External Analysis examines opportunities and threats that exist in the environment. Both opportunities and threats exist independently of the firm. The way to differentiate between a strength and weakness from an opportunity or threat is to ask, would this issue exist if the company did not exist? If the answer is yes, it should be considered external to the firm. Opportunities refer to favorable conditions in the environment that could produce rewards for the organization if acted upon properly. That is, opportunities are situations that exist but must be acted on if the firm is to benefit from them. Threats refer to conditions or barriers that may prevent the firms from reaching its objectives.

* We are limiting our study of the Strategic Marketing Management with Mang Inasal Philippines Inc. at SM Pampanga financial statement as management policy and confidentiality.

Chapter II Mission and Vision Statements Vision To be the preferred quick service restaurant of every pinoy everywhere! Mission To consistently provide our customers a great pinoy dining experience.

Components 1. Customers 2. Products or Services 3. Markets 4. Technology 5. Concern for survival and growth profitability 6. Philosophy 7. Self-Concept 8. Concern for public image 9. Concern for employees

Yes

NO

Customers - (Who are the firms customers?) Mang Inasal customers are the pinoy as stated in V/M statement.

Products and Services - (What are the firms major product and services?) Mang Inasal offers Quick Service Restaurant (QSR) for dining experience as stated in M/V statements.

Markets - (Geographically, where does the firm compete?) Mang Inasal is a nationwide company. Their emphasis of competition is within the philippine. Their target market are the filipiino people.

Technology - (Is the firm technologically current?) Mang Inasal is not technologically current and theres no mentioned about technology but the product is served made to order in fastest way because Mang Inasal is a Quick Service Restaurant.

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

We continuously grow our business The company would conduct its operations very well to provide the profits, growth which will ensure Siemens success in the future.

Philosophy - (What are the firms basic values, beliefs, ethical priorities of the firm?) A learning organization with dynamic integrated business processes. Siemens has a strong sense of responsibility towards society and its environment.

Self - concept - (What is the firms major competitive advantage?) We provide best-in-class electrical and electronic engineering solutions, products and services. As of the moment, Siemens was able to capture large hospitals in the Philippines to be its primary customers.

Concern for public image - (Is the firm responsive to social, community, and environmental concerns?) We have a strong sense of responsibility towards society and the environment. Siemens aims to satisfy its customers and have a sense of responsibility to its environment.

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

To be the preferred employer through an effective people management system Siemens makes sure that its employees would be the best in their respective fields. They also help motivate their employees and give them rewards for their exceptional abilities.

Recommended Mission and Vision (If any)

Chapter III External Assessment (negative and positive assessment) a) Key External Forces i. Political Legal (Governments Positions) (-) Purchasing power of the Filipinos weak because of the

unstableness of the administration. This definitely affects the market profitability of business. (+) (+) Rapid increase of population and will increase their market share. Present but not very significant government regulation.

ii.

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

Inasal has even if many people are minimizing their expense. (-) (+) (-) 12% value added tax Rising consumer awareness on health and safety concerns Oil Price Hike. The Philippines imports fuel from other countries.

It affects the whole operation of the business. iii. Social Cultura (+) (-) Filipinos love for food Changing Preference of Customers

(+)

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

commercials, Magazine and Newspaper Ads and by using well-known personalities for its advertisement. (+) convenience. (-) the rise of other restaurants that offering unlimited rice in the Working class has no time to cook, find fast foods for

market ex. Tokyo Tokyo and dennis the grill boy are threat it can kill the strategy of Mang Inasal. iv.Technological (+) (+) Delivery Service within Metro Manila through text and call. Internet access. Through this you can easily advertise your product

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

b) Competitive Analysis Porter 5 Forces Model

SUBSTITUTES Any other food products.

SUPPLIERS

INDUSTRY RIVALRY Tokyo tokyo, Dennis The Grill Boy (Unlimited Rice)

CONSUMERS Ages 3 75 yrs. old Class C and above

(The Primary target of Mang Inasal includes students, professionals, and those families who like bonding activities)

BARRIERS TO ENTRY Brand Loyalty, Economies of Scale, and Import Taxes

5 forces of competition Competitor Threat of new entrant Development of substitute products Bargaining power of customers Bargaining power of suppliers

Low

Moderate

high

Bargaining Power of Consumers Mang Inasal Philippines Inc. caters to almost everyone regardless of volume, purpose and location. There are so many branches and it has established its own reputation that the bargaining power of consumer is weak because the fast food industry principally dictates what masses eat. The prices for the products and services set by fast food restaurants has become the standard on how consumers would want to spend on food. Anything above the price range of fast food joints would be considered expensive; while anything lower would mean its cheap. Most consumers think that the prices set by the restaurants are reasonable and affordable because they offer value meals and other pricing strategies. This just goes to show that the consumers in the fast food industry really do not have much bargaining power as they think they do. Bargaining Power of Suppliers Most fast food restaurants acquire the raw and other materials used for their business operations from local suppliers and some international. Given that the inventory for the food served is crucial in any quick service

restaurant, the suppliers of these inventories greatly affects operations. Mang Inasal or any QSR cannot operate if there is no food to be served. Evidentially, Mang Inasal Philippines Inc. over the years developed their own commissary system to eliminate the relatively strong bargaining power of suppliers in the industry. Other than those people manufacturing the food, suppliers in this industry can go way back to the agricultural, meat and poultry farms and packaging companies. Pressure Substitutes on the Business There are a lot of substitutes for almost everything nowadays. Fast food chains are not exempted from this because thus the examples of substitute to the menu that Mang Inasal offers to its consumers. Some of the substitutes are the instant noodles with several flavorings and other frozen products that can be bought in local and foreign markets. It is important to have rice and a viand as part of the meals of the Philippine consumers therefore the threat of substitute for what Mang Inasal is offering to its consumers is considerably high. Basically, anything that can sustain or feed the cravings of a person is a viable substitute for fast food. Entry Barriers Mang Inasal Philippines Inc. is aware that it is the procedure on how they make their distinct mark with their products that makes them stand out that their patrons choose them over some other fast food chain. So brand favoritisms of the consumers are a barrier for them to monopolize the fast food industry. Likewise, the import tax that Mang Inasal has to pay every time they import their raw materials from other countries could also affect their business as a whole. Industry Rivals, Tokyo Tokyo is a leading Japanese QSR chain that presently operates over 50 branches located in the Philippines. That offering unlimited rice same as Mang Inasal but they are different in the product line that they are offering in the market. Aside from Tokyo Tokyo is Dennis The Grill boy, formerly called Pupung and Friends, this restaurant serves Pinoy comfort such as Liempo, Bangus Belly, Barbeque, Steak, and other all-time Pinoy favorites.an order of a meal would cost 75php 125php which is very affordable considering they are offer unlimited rice.

Industry Analysis Description of the Fast Food Industry An overview of the fast food industry highlights availability of meals that serve the need to eat even during tight work or school schedules, and at very affordable or, most of the time, cheap prices. Individuals, mostly parents or people who live on their own, who dont know how to cook or dont have time to cook, find fast foods of great convenience. Some fast food restaurants also offer packaged foods or take-aways. The fast food industry now operates out of convenience stores, food kiosks, supermarkets or grocery stores, coffee shops, and gas stations. Individuals can now eat their food anywhere and anytime. Fast food restaurants also try to fit their menus according to the taste and preference of the masses, take for example Mang Inasal, it barbequed chicken dish this is what Filipinos like. The rise of fast food restaurants or kiosks has often been linked with urban development this kind of notion can be typically seen in Filipinos. Demographics, consumer tastes, and personal income drive demand. The profitability of individual companies can vary: while QSRs rely on efficient operations and high volume sales, FSRs rely on high-margin items and effective marketing. Large companies have advantages in purchasing, finance, and marketing. Small companies can offer superior food or service. Restaurants compete with companies that serve meals or prepared foods, including grocery stores, warehouse clubs, delis, and convenience stores. In addition, restaurants compete with home cooking. The fast food industry in the Philippines is growing bigger and bigger ever since 1980's. In the most recent survey expenditures of dining out of Filipinos (not including the corporate expenditures) is growing 1520% per annum for the past ten years with 50% the restaurant industry comes from the fast food industry. Despite the country's low GDP growth rate last year of 2.69% the fast food industry grew by as much as 5%. (Miranda, 2009)

Key Success Factors in the Industry In a company such as Mang Inasal, innovation is important because competition in the fast food industry is very tight. Product innovation is a must as it adds value to the company since products are being offered to the market for attention, acquisition or consumption that may satisfy a need or want. In this case product innovation is done to get the attention of customers and most especially the non-customers of the company so that they will have a chance to steal some market share of their competitors. As the saying goes, the test of the pudding is in the eating. It is imperative for Mang Inasal, being in the fast food industry, to offer its customers with good food. They must then make sure that the taste, which the customers have grown accustomed, should be maintained and standardized, to keep the customers hooked and coming back for more. Freshness and quality of ingredients should also be maintained as part of maintaining high standards with their products. Pricing also is an important to consider given that the target market of Mang Inasal is considered to be price sensitive. Any sudden and drastic change in price might push the customers to find other food providers. And in the industry that Mang Inasal is in, there many others than can provide Mang Inasal customers with other alternatives. It must then be ensured that products of Mang Inasal are priced in a way that highlights value at the same time, still affordable to its customers.

Major Industry Contribution Since Mang Inasal Philippines Inc. is a listed company in the Philippine Stock Exchange that publicly trades in the stock exchange is not exempt from the erratic conditions of the stock market every day. The raw materials that are being used and bought will tend to be more costly if the Philippine peso depreciates. Having many foreign-owned food corporations being franchised in the Philippines, it can be considered as a threat to Mang Inasal Philippines Inc., knowing that patronizing foreign goods and services are one of the qualities most Filipino consumers have today. With a 5.4% growth in the Philippines GDP in 2006 (Goliath Business News, 2007), the 7.4% growth in 2007 (NSCB, 2008) and the 7.3% growth in 2008 (Index Mundi, 2009), Mang Inasal

Philippines Inc. being a popular fast food chain varies and changes its menu periodically to entice its consumers to patronize their products for the long term. With the culture and tradition of Filipinos, Mang Inasal is where people celebrate their occasions because of the reputation Mang Inasal has established on Filipino People which really boosts their income. As it contributes to lessening the number of unemployment rate in the country and to cope with the erratic inflation rate that is experienced every day.

Top 3 Players (Unlimited Rice within SM Pampanga) 1. Mang Inasal 2. Dennis the Grill Boy 3. Tokyo tokyo

Chapter IV Internal Assessment a. Management (Planning, Organizing, Staffing, Controlling, Motivating,

Organizational Structure)

Edgar J. Sia II Chairman / CEO

Ferdinand J. Sia President / COO

As we aspire to make Mang Inasal a globally competitive company that gives pride and inspiration to every Filipino, with everyones cooperation we will surpass the challenges that come our way and even conquer them with flying colors! OPERATIONS Elmer Hementera VP - Operations

Operations started the year with the release of the revised Operations manual for the five basic stations namely kitchen, counter, quality control, dining and grill. Recently, we released the revised Cash Control Policies, brought about by the opportunities encountered by the stores in handling

of sales and funds. We are in the continuing process of reinforcing the knowledge and skills of the management team members and crew on the Basics of our Operations focusing not only on the systems and procedures embodied in the revised Operations Manual, but on other aspects of running the business as well. Skills of managers in the achievement of sales objectives and management of controllable expenses are now being honed with store management teams coming up with daily targets for sales and expenses. How sales targets are achieved, (good Cycle of Service, GRC concept, etc.) as well as ways to manage expenses, are the orders of the day. Recently, we have also started teaching the managers how to compute for the food cost, the biggest expense in the PnL. Upcoming Operations activities are focused on how to manage food cost and food cost variance troubleshooting.

COMMISSARY James V. Dy VP - Commissary

The Commissary is in a continuous effort to produce and distribute high quality products to all its branches; thus, a new and bigger branch was put up in Taguig City with a total floor area of 5,840 square meters. The new Commissary became fully operational last February 2010 and has a capacity of processing 30 tons of dressed chicken daily. It has its own laboratory for product analysis, improvement of existing products as well as development of new exciting ones on the last quarter of the year. We will continue to ensure all stores will have their quality raw materials delivered on time.

TREASURY Shella A. Sia EVP Treasury

The Office of the Treasury is tasked to keep the company in a sound financial status. It keeps receivables in check and the collections on track. Currently implementing measures to further improve efficiency in the treasury system.

FINANCE AND CONTROLLERSHIP Venancio C. Parcon VP Finance

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

HUMAN RESOURCE Jess Nemenzo Corporate HR Manager

The Human Resource Department champions the hopes and aspirations of its people. It journeys with the organization towards the full realization of holistic people development. We ensure that our people demonstrate the proper knowledge, skills and attitude in the performance of the job.

BUSINESS DEVELOPMENT Marvin Ramos BDD Head

The BDD or Business Development Departments 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.

MARKETING Enri Ruiz De Luzuriaga Marketing Manager

Marketing is developing new strategies and brand direction which will help Mang Inasal become a leader in innovation, creativity, and customer relations in the years to come.

Mang Inasal gears up to go public Mang Inasal Philippines Inc. is preparing for its planned Initial Public Offering (IPO) in the first quarter of 2011 as it remains confident of good business potential and further expansion. Chairman Edgar Sia II said the public listing strategy is to further improve transparency of Mang Inasal where the emphasis is on good management because of public accountability. The company, that opened its first store last Dec. 12, 2003, has tapped Fortman Cline as its financial advisory firm to handle the preparations for listing with the Philippine Stock Exchange. He also added that the company, the first of its kind in the Philippine franchising industry, intends to raise more funds to build more commissaries, company stores and a permanent headquarters. The IPO is also a vehicle for employees and existing franchisees to invest in Mang Inasal so they could benefit more through dividends, said the Chairman.

300Th Store opens on October TRUE to its quest of being the foremost Quick Service Restaurant in the Philippines, Mang Inasal Philippines Inc. is set to open its 300th store by October 2010.Most of our expansion now will be in the provinces since we are all over most of the Metro Manila areas already. The expansion of succeeding stores will be in the north and south of Luzon and in some parts of Mindanao like Tawi-tawi and as far as Aparri, said President Ferdinand Sia. Mang Inasal opened at Robinsons Place in Iloilo City last December 12, 2003 and in a span of seven years, has made a name for itself as the first homegrown fast-food barbecue chain in the Philippines and the first of its kind in the countrys franchise industry.Mang Inasal Philippines Inc. is preparing for its planned Initial Public Offering (IPO) in the first quarter of 2011 as it remains confident of good business potential and further expansion. Chairman Edgar Sia II said the public listing strategy is to further improve transparency of Mang Inasal where the emphasis is on good management because of public accountability. The company, that opened its first store last Dec. 12, 2003, has tapped Fortman Cline as its financial advisory firm to handle the preparations for listing with the Philippine Stock Exchange. He also added that the company, the first of its kind in the Philippine franchising industry, intends to raise more funds to build more commissaries, company stores and a permanent headquarters. The IPO is also a vehicle for employees and existing franchisees to invest in Mang Inasal so they could benefit more through dividends, said the Chairman.

New commissary in Taguig now fully operational The new Mang Inasal commissary at Manalac Industrial Estate in Bagumbayan, Taguig is now fully operational, announced VP - Commissary James V. Dy.Dy further added that the new Taguig Commissary is compliant with Triple A meat processing plant standards.The Taguig commissary has a state-of-the-art testing

laboratory and a modern metal detectorconveyor machine to check meat quality.Sia also said that another commissary is being constructed in Toril, Davao City to supply Mang Inasals Mindanao requirements.The Davao commissary will be operational in September this year and is expected to also augment the needs of Mang Inasals Luzon stores. The new commissary in Taguig City has a total floor area of 5,840 square meters. It became fully operational on February 2010 and has a daily processing capacity of 30 tons of dressed chicken. It also has its own laboratory for product analysis, improvement of existing products, as well as development of new ones.

We Deliver! Dial 733-1111 Within Metro Manila Starting middle of September this year, Metro Manila residents can start dialing the centralized number 733-1111 and give their Mang Inasal orders for delivery anywhere in the metropolis. There are 32 strategically located stores that serve as delivery hubs for motorcycle riding delivery men. According to Mang Inasal President Ferdinand Sia, the delivery system is being serviced by Pilipinas Teleserve Inc., one of the Philippines leading service providers for fast food chain deliveries. The President said the centralized number system is to make the delivery of Mang Inasal orders faster and reliable as part of the companys service values that include excellent customer service and market leadership. There are several marketing activations in line to hype our new delivery program. It is expected to take 2 to 3 months for Mang Inasal to get a good grasp of the delivery market in Metro Manila.

Mang Inasal 1st Franchise Conference set in 2011 The 1st Mang Inasal Franchise Conference will be scheduled on the first quarter of 2011 at least a month before the company goes public and gives its Initial Public Offering (IPO).President Ferdinand Sia said there are many details to be discussed during the conference on the direction of the company and ways to further improve the system.

VP upbeat over training series Gil Pangilinan Abela Jr, Mang Inasals new Vice President for Training since March this year, is upbeat over the training series that comes with the opening of the companys new training center.Formerly the companys organizational development consultant in 2003, Abela is now setting up Mang Inasals Academy of Learning with customized programs for the Managing Directors, Management Team, Crew Development and Support Units or departments. The academy is hoped to revolutionize the training department of the organization, said Abela.Abela is a Psychology graduate of the University of the Philippines in Cebu and has finished courses on the following institutes : Rizal Youth Leadership Training Institute, Purposeful Stewardship Institute, Stephen Coveys Institute (7 Habits of Highly Effective People ), Human Potential and other related fields. After retiring early as an Opening Team Manager for Jollibee (Freemont) Foods Corporation that facilitated the opening of 14 outlets in Visayas and Mindanao, he started his consulting and training outfit by August 2000 called Koncepts and More. Among his other short term training and consulting clients in the Service Industry are Thirsty Shakes and Juices Cebu ( 100 branches ), Fancy (Cakes, Crepes and Coffee ) Tomas Morato, Quezon City, Laguna Group of

Companies ( Laguna Catering, Laguna Cafe, Laguna Garden, Laguna Iloilo and Lemon Grass ), Kublai Khan Cebu, Jollibee Foods Corporation Visayas and Mindanao Stores, Badian Island Resort and Spa, Bantayan Island Resorts Association, UnileverVismin Sales Team and others.

New training center in Tramo now open Expect more improvements in Mang Inasals services as staff and crew get trained and certified in the new training center that is now operational at the former commissary in Tramo, Metro Manila. The reconstruction of the commissary into a training center started in March 2010 and includes a mock-up of a typical Mang Inasal store. President Ferdinand Sia said the training center is part of the 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. The Mang Inasal Training Academy at the former commissary in Tramo, Manila, aims to further strengthen the learning of company employees with complete kitchen set-up, facilities and training rooms. De Luzuriaga is new marketing head Mang Inasal has a new marketing head in the person of Enrique Ruiz de Luzuriaga who began office last June 26, 2010.De Luzuriaga comes from the advertising industry. He holds a masters degree in Integrated Marketing from Golden Gate University in San Francisco, USA. He has worked for ad agencies, call centers, blog networks, digital agencies, and restaurants. He has recently returned from the US to work for Mang Inasal. His favorite saying: I love my job.

green gold improves economy of a small town MAASIN, Iloilo In the late 90s, there was such a glut of bamboos in the small Iloilo town of Maasin that the mayor decided to turn it into a tourism attraction with a bamboo-themed festival called Tultugan.Even though the festivals popularity picked up, it did not make much of a dent on the over-supply to such a point that it was the buyers who were dictating the prices, much to the discouragement of the Maasin farmers spread out in 50 barangays. By 2007, all this was a thing of the past when what used to be grass taken for granted is now a precious commodity called green gold thanks to the expansion of Mang Inasal, the determination of Maasin Mayor Mariano Malones Sr., and the industry of more than 10 barangays supplying the bamboo tinik variety.

Supplying bamboo sticks Every week, Iloilo Kawayan Marketing (IKM) delivers an equivalent of a thousand bamboo poles coming from six contractors who in turn employ more than 180 households to cut and process the three types of bamboo barbecue sticks used for barbecuing chicken legs and other parts, and the round and thin ones for the pork barbecue. The green gold is a blessing for Maasins poor families that comprise majority of the towns total population of 40,000 who used to rely on subsistence farming. The first supplier of IKM, 55-year-old Marina Molina, from Brgy. Inabasan was able to make two children graduate from college all because of the income that comes from the green gold. We are thankful for the opportunities that Mang Inasal has given us; they have helped so many families, says Molina who earns a profit of P10,000 or more a week from the sales of bamboo barbecue sticks alone. Marina and her fellow contractors earn a commission of at least a peso per stick. The rest is used to pay for the bamboos and the workers. Marina has shared her blessings to friends and relatives like

Marilou Rote and Adoracion Manda who started being bamboo contractors only in July this year as Mang Inasals expansion has created a need for more barbecue sticks. The income has helped us a lot. We used to plant and sell vegetables and have other sidelines just to survive, says Marilou, A 34-year-old mother of four from Brgy. Nasaka.

One opportunity begets another It was in 2005 when Mayor Malones began his bamboo barbecue stick business in a bid to help Maasins farmers deal with the over-supply of bamboos. By 2006, IKM was already supplying bamboo chopsticks to several Chinese restaurants in Manila.Mayor Malones saw an opportunity to supply Mang Inasal in 2007 when he noticed that the barbecue chain had only one kind of barbecue stick and offered to supply it.What happened next was a trial and error process on top of a series of trainings until the bamboo workers had perfected the method of coming up with barbecue sticks that were polished and mould-free. IKM has 40 workers and four sets of machines worth several millions that work on the cutting, splitting, slicing, drying and polishing of the bamboo poles. Even though 4,000 hectares of Maasins total land area of 17,000 hectares is planted to the bamboo tinik variety alone it could supply only 70 percent of Mang Inasals barbecue sticks, forcing IKM to get other bamboos from nearby towns.

Expanding with Mang Inasal At the IKM factory in Brgy. Naslo which happens to be beside the house of Mayor Malones, the bamboo suppliers led by Marina discuss the Mayors request

for improved workmanship after he noticed that some bamboo sticks were not up to standard. We are also doing our best to keep up with Mang Inasals brand of quality services and with their expansion, we will also look for more bamboo farmers and suppliers and sustain those who are already working with us, says Mayor Malones. IKMs work of improving the lives of farmers has been noticed by the Department of Trade and Industry that has recognized the company as a finalist for the Outstanding OTOP (One Town One Product) Awards last Oct. 2, 2009.However, the greater source of pride for Mayor Malones and Maasins bamboo suppliers is their being a major partner of the countrys leading fast food barbecue chain that has remained loyal to them.

MANG INASAL FOREST In this historic step, MANG INASAL PHILIPPINES, INC. developed a project dubbed as the MANG INASAL FOREST. The project is located at Brgy. Millan, Sibunag, Guimaras and has a total land area of 19.7 hectares. The company acquired the property last January 2010.This project will educate people to be sustainable by taking care of the environment. This will be a huge project by Mang Inasal which is always committed towards a clean environment and better livelihood for the Filipino people. TOP TAXPAYER AWARD EDGAR J. SIA II, Chairman/CEO of Mang Inasal Philippines, Inc. was awarded the 2008 top individual taxpayer by the Bureau of Internal Revenue (BIR), Revenue District Office no. 74 of Iloilo City. BIR acknowledge the Chairman for his significant contribution and valuable cooperation in the implementation of various programs of the agency, faithful observance of tax rules and regulations and conscientious payment of taxes to the government.Edgar J. Sia II was also recently awarded as one of the top business taxpayers of the City of Iloilo.

Oracle helps Mang Inasals efficiency By aquiring an Enterprise Resource Planning software (ERP) of Oracle thru its Philippine affiliate, Active Business Solutions, Mang Inasal is poised for business dominance in the fast food industry. Oracle is the worlds most complete, open, and integrated business software and hardware systems, with more than 370,000 customers globally. Last December 2009, Chairman Edgar Sia II signed a contract with the companys Philippine representatives to use Oracles ERP software. Oracle describes itself as the only vendor able to offer a complete technology stack in which every layer is integrated to work together as a single system. In addition, Oracles open architecture and multiple operating-system options gives our customers unmatched benefits from industry-leading products, including excellent system availability, scalability, energy efficiency, powerful performance, and low total cost of ownership. ORACLE AND MANG INASAL begins its partnership with Mang Inasal Chairman Edgar Sia II recently signing a contract together with representatives of Oracle in the Philippines led by Abigail Yap-Ang, Geovan Ang and Stef Villamejor.

Mang Inasal Chairman Edgar Sia II signs the contract with Jose Catequista of Manabat Sanagustin & Co. For the year 2010 accounting period, Mang Inasal Philippines Inc. has engaged the external audit service of certified public accountants Manabat Sanagustin & Co. The highly respected accounting firm is a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. It is presently the fastest growing professional service provider in the field of audit, tax and advisory services.

Franchisee Testimony MID Investment Pays Off (Arian Chua and Mang Inasal) BACOLOD City -- Owning a brand new car is no big deal for most moneyed men but for young businessman Arian Chua, driving the silver Toyota Land Cruiser he bought this year gives him a different kind of satisfaction and happiness. Its not just a toy for the big boys. The vehicle tells the story of how the 30-year-old Marketing graduate of La Salle Bacolod would not have been around buying his second car, traveling several times abroad and constructing his dream house were it not for Mang Inasal helping him to do business just in the nick of time. A year after graduating from La Salle Bacolod in 2001, Arian took a care-giving course with hopes of working abroad the following year but he was twice denied his visa in 2002.Thinking of his options, Arian planned to get into the restaurant business but was not sure exactly where to begin. Believing in Mang Inasals Potential Franchising was just a vision then for the Mang Inasal management but it knew it was serious about the strategy and planned to be the countrys first fast-food barbecue chain with 500 stores nationwide by 2012.It may be because of the seemingly wild vision of Mang Inasal or the need to invest but either way, Arian checked out the possibility of putting up Mang Inasal restaurants in Bacolod City in 2003. Friends and associates were telling me I better think twice of investing on Mang Inasal because Bacolod is Inasal country and it might not click, says Arian. Not one to be impulsive, Arian observed how Mang Inasal did business in its newly opened branches in the cities of Davao and Iloilo, checking sales and feedback and found it to be lucrative and systematic. Together with his partners Tiffany Ang, younger brother Richie Chua, and friend Michael Javelosa as major stockholders, they formed the Bacolod Prime Food Corporation. They then bought a Mang Inasal franchise and opened Bacolod Citys first Mang Inasal

restaurant on March 2006 in Libertad with the second one opening at the East Block on October of the same year. In 2007, Bacolod Prime Food Corporation opened its 3rd Mang Inasal branch at Gaisano Mall, followed by three more branches in 2008 and another one the following year. Good sales, more stores In the same year Arian and his partners were opening their first store in Bacolod, they were also setting up shop in Cagayan de Oro and now counts five branches in CDO and one in nearby Iligan City. Arian says they were able to put up that many branches because the sales is good as in the case of its SM City Branch in Bacolod where it took only a year and three months to pay off franchise and construction expenses.Every success story comes with hard work. Arian has experienced mopping floors and even doing the asal work himself when there is manpower shortage.These days, his brother Richie is in-charge of the office and warehouse in Bacolods North Drive while Tiffany deals with the finances. Meantime, things are looking up. His dream house from Mang Inasal earnings begins construction this September in Ayala Land and he and his partners are negotiating the construction of more branches in downtown Bacolod City.I am grateful to Injap and Mang Inasal for the good break. I am impressed with how the company has reached its dreams and has more than exceeded expectations, says Arian.Arian gamely poses beside his P5.3 million silver, all options Toyota Land Cruiser in front of the Mang Inasal SM City Bacolod branch holding the now-famous barbecued chicken. The vehicles MID plate number stands for Mang Inasal Decos, a tribute to the two franchise businesses that has made him a multi-millionaire. The thumbs up is a tribute to that one moment in his life when he decided to take the risk and venture into a business that everybody thought would fail.

Employee Testimony Mang Inasals First Employee Intends to Stay Long (Bobby Calumpit) ILOILO City He was there doing trouble shooting when Mang Inasal first opened at Robinsons Place Iloilo last Dec. 12, 2003 and intends to remain with the company he has grown to love until he reaches retirement age. Bobby Calumpita, 45, is Mang Inasals first and longest staying employee to date. Such is his loyalty, good work ethic and competence at troubleshooting. Bobby, now the branch manager of Mang Inasal at Times Square in Gen. Luna St., Iloilo City, remembers his baptism of fire on opening day when the stores duct system acted up and on top of that, customers were complaining about the now-accepted Mang Inasal system of lining up to order and pay. We had to go open air until the ductwork was fixed and patiently explain to customers about the new system. They had trouble adjusting because in other chicken houses, waiters would go to their tables and get their orders, explained Bobby, a graduate of Marine Engineering from the University of Iloilo. As the store manager, Bobby and his 17-member crew patiently wooed customers with quick and pleasant service that they kept coming back until word of mouth spread about that unique chicken barbecue restaurant at Rob. Back to the same boss Prior to his employment as Mang Inasals first store manager, Bobby was a dining supervisor and then banquet manager at Four-Season Hotel, Chairman Sias other business that he started with partners when he was only 19 years old. In 2001, he asked permission to apply for work in a passenger ship but clearly remembers the young Sia telling him to come back if things dont work out. Bobby must have been destined to work for Mang Inasal because he went home in October 2003 and so happened to pass by at Robinsons while the store was ongoing construction. Sir Edgar saw me and asked if I wanted to work as his store manager and that was how it all started, says Bobby who later trained the staff

and crew of other Mang Inasal branches .He stayed for three years and eight months at the first store and in-between that, he would go to Mang Inasals second branch in Roxas City, Capiz to prepare the crew and store in time for its opening on July 7, 2004. Demand for Mang Inasal in Iloilo had also increased that in the next five months, it opened its third branch in Mary Mart Mall on Dec. 1, 2004.The other stores he has helped put in good condition are the Smallville Iloilo Branch and the first Decos Original La Paz Batchoy Branch in this citys La Salette Bldg. in Valeria Street that opened on Aug. 25, 2007. The Binondo challenge Helping new stores with their birthing pains is nothing compared to what he experienced as a store manager in one of Mang Inasals Binondo branch in April 2008, says Bobby.At Binondo, competition was stiff as two major Filipino fastfood chains were all over the place. The residents there told me that the challenge was to stay for more than a year, says Bobby, noting that Binondo has many senior citizens. He worked his managers charm on the senior citizens who liked him not only for the discounts but for his friendly approach and the fact that he would greet them by name. Bobby also did a lot of telemarketing and gave out leaflets as well as visiting other establishments, urging them to try Mang Inasal.To this day, the Mang Inasal Binondo branch has uptrend sales despite people saying otherwise at the beginning and Bobby remains satisfied for winning the Binondo Challenge in the six months that he stayed there. All in the family In the nearly seven years that he has been employed with Mang Inasal, Bobby has been able to fend for his family with the eldest of his five children graduating with a degree in Management Accounting from the University of Iloilo and now working with Chairman Sias Injap Investments Inc. as purchaser. It would not be surprising if his children worked with Mang Inasal for this loyal employee only has words of appreciation for the company and his boss. Sir Edgar has a good

leadership style, all his businesses are successful and he treats his people well, says Bobby who remains a hands-on manager at Mang Inasal Times Square as he was in the first store at Robinsons.

Financial Ratios
Mang Inasal Philippine Inc. Ratios Quick Ratio Current AssetsInventory Current Liabilities Inventory Sales Turnover Inventory Fixed Assets Turnover Total Assets Turnover * Average Payment Period (Days) * Average Collection Period (Days) Gross Profit Margin Sales Fix Assets Sales Total assets Accounts Payable Ave. Purchases/day Accounts Receivable Sales per day Sales-CGS Sales Year 1 (2008) 4,563,9870.98 2,994,288 1,598,078 Year 2 (2009) 5,240,9611.1 3,286,542 1,721,861

7,842,273 2,994,288 7,842,873 1,075,830 7,842,873 3,686,000 2,994,288 17,000

2.6

8,628,742 3,286,542 8,628,742 1,075,830 8,628,742 3,989,000 3,018,766 19,000

2.6

7.29

4.16

2.13

2.16

176*

159*

3,921,436.50 21,786

180*

4,899,601 31,050

158*

4,848,585 7,842,873

0.62

5,332,563 8,628,742

0.62

Operating Profit Margin

EBIT Sales

1,078,968 7,842,873

0.14

875,742 8,628,742

0.10

Net Profit Margin

Net Income Sales

733,698 7,842,873

0.09

875,307 8,628,742

0.10

Return on Total Assets

Net Income Total Assets

733,698 3,686,000

0.20

875,307 3,989,000

0.22

Liquidity Mang Inasal Philippine Inc. liquidity is doing well since all payable and receivable transactions are made in cash. The Quick Ratio is close to 1.0 on year2005 and 1.1 on year 2006, which evaluates the liquidity of the business if ever inventory cannot be easily converted to cash. Leverage The business has no long-term debt. That assures the firms profit is not taken by financing interest costs. Activity The only transaction that is not paid with cash is the credit card purchases by the customers. The amount of receivables from the credit card company was automatically placed in the bank account of the business within 3 days. The longest collection period was within 3 days. The resources of the business is said to be used effectively since inventory turnover last for 2-3 days and it utilizes and maximize the business ability to generate more sales and profit. The turnover rate indicates a fast moving inventory. Profitability The business is earning income from the transactions and generated returns from its sales, assets and investments. The management is effectively running the company and utilizing its assets. (*) The receivables (in any amount) are still dependent on the 3-day payment of the credit card company to the business.

Mang Inasal Philippine Inc. Income Statement Year-to-Date Amount (2008) Net Sales Gross Sales Less: Sales Discount Net Sales Less: Cost of Sales Drinks Inventory beg. Purchases Total Less: Inventory End. Cost of Drinks Sold Foods Inventory beg. Purchases Total Less: Inventory End. Cost of Food Sold Cost of Sale Bef. Free Item Free Item Cost of Sale After Free Item Gross Profit Less: Operating Expenses Royalty Fee Salaries & Bonuses-Sales Salaries & Bonuses-Admin. Advertising Communication Other Employee Costs SSS/Phil health exp Insurance Kitchen Utensils Miscellaneous Office Supplies Professional fee Repairs Store Supplies Taxes & Licenses 7,882,278 39,405 7,842,873 (2009) 8,670,506 41,764 8,628,742

7,843 401,745 486,947 12,253 397,336 23,511 2,629,230 2,814,313 28,149 2,624,592 3,021,927 (27,639) 2,994,288 4,848,585 287,388 1,181,867 6,440 20,443 24,190 49,787 38,582 89,787 1,253 26,082 32,750 14,981 496,061 49,074

8,629 598,265 604,012 18,781 517,725 19,763 2,890,629 3,097,718 31,144 3,010,984 3,332,066 (30,679) 3,291,387 5,332,563 319,111 1,302,940 7,286 16,886 23,684 43,289 39,176 81,342 1,570 24,365 33,125 10,764 500,040 49,821

Travel Rentals: Basic Rent Percentage Rent Utilities: Common Area Aircon Electricity Water Other Operating Costs: Ice Gas Janitorial Total Operating Expenses Net Income before Depreciation 32% tax Net Income after tax

11,191 299,485 452,789 61,447 65,207 276,538 23,982 36,326 162,437 61,530 3,769,617 1,078,968 345,269 733,698

12,078 299,485 599,796 61,496 66,423 235,798 24,641 39,999 190,231 62,000 4,045,344 1,287,217 411,909 875,307

Chapter V External Factor Evaluation (EFE matrix)

Critical success factors Opportunities 1.Local Culture and Tradition 2.Cultural Diversity 3.Philippines Agricultural Nation 4.New Brand Acquisitions 5.Urban Development Threats 1. Foreign-owned and local SMEs 2. Global Financial Crisis 3. Increase in oil prices 4. Sanitary Issues Standards / Health and Safety 5. Political Instability TOTAL

Weight

Rating

Weighted score

0.12 0.08 0.10 0.11 0.10

4 2 2 4 3.5

0.48 0.16 0.20 0.44 0.35

0.10 0.09 0.10 0.11 0.09 1.0

3 3 2 3 3

0.30 0.27 0.20 0.33 0.27 3

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

Summary of Key Opportunities and Threats Opportunities Local culture and traditions Every Filipino, regardless of race, gender, age, and social status, has a dream to be able to consume Mang Inasal products at least once in their lifetime. It has been known that Filipinos are very family-oriented in the sense that almost every occasion should be celebrated as long as they have the means and capability. Having a familyoriented culture, Filipino consumers are naturally thrifty. Surely they would want to maximize the value of their money but at the same time the food service that they are to receive should be worth the price that is why Mang Inasal would always be in everybodys lists because of its adherence to this Filipino trait. Cultural diversity Since there are more and more Filipinos, Mang Inasal can leverage on this opportunity to expand and serve filipino and foreign consumers as well. Wherever Filipinos migrate surely there would be Filipinos offering Filipino cuisines that Mang Inasal can consider as their potential markets in a nationwide setting. Mang Inasal could likewise benefit from the local or foreign consumers that would surely be curious enough to try and consume Mang Inasal products as well. Philippines - an agricultural nation Another opportunity that Mang Inasal Philippines Inc. has is the fact that the Philippines still remains to be an agricultural nation where it can serve as a source for the raw materials that Mang Inasal uses for its business. Instead of having every ingredients, flavorings, and other materials imported, it is a given that the Philippines is abundant with its natural resources. Mang Inasal could instead use this and instead focus on maintaining an international standard in terms of its quality especially that Mang Inasal has the means to do so.

Brand Acquisitions Local Brands willing to be Bought Mang Inasal Philippines Inc. has the capability to acquire and merge with other companies both local and international brands. There might be some companies out there that would need more capital that Mang Inasal can easily provide. Companies with small capital would find it hard to operate given the thrifty financial environment the global crisis has caused. On the part of Mang Inasal, it would further improve its reputation and its credibility when it comes to offering its food services to consumers from all walks of life. Not only will Mang Inasal live up to its goal as a service provider in the food industry but they would also be able to contribute to giving more jobs to the workforce who are currently unemployed and affected by the financial crisis that has been going on for quite some time. This way, not only will Mang Inasal Philippines Inc. expand and excel in its business operations but could contribute to lessening the unemployment rate that the Philippines have right now. Urban Development With the recent growth in the real estate industry in the country, more and more provinces and rural areas in the country are starting to be developed and urbanized. More and more condominiums and villages are being constructed in various provinces of the country. This has started a sort of migration of Filipinos families to the provinces or countryside. This would mean more new areas for Mang Inasal to conquer and more market to serve. This would then provide Mang Inasal with another opportunity to expand its network of stores to more areas in the Philippines, making their presence even more felt in the Philippines. This would also increase their market share in areas that still doesnt have a Mang Inasal store.

Threats Threats Foreign-owned and local SMEs There are so many foreign-owned companies and local small and medium sized enterprises in the same industry that tries to penetrate the Filipino market every day. Just like what Mang Inasal offers to its potential consumers, the foreign-owned corporation and local SMEs tries to leverage on the threats and weakness of Mang Inasal so there will really be a tough competition. This is a threat to Mang Inasal because this means that they cannot afford to be lousy or commit grave mistakes such as messing up their reputation and committing health and safety issues especially that they are in the food industry because the competitors might just take over and lead. Thus, being the market leader means everyone out there will try to beat you or work around you. Global Financial Crisis Experiencing worldwide financial crisis is one of the threats that every company regardless of chosen industries or size of enterprise has to deal with. Mang Inasal is not exempt from this threat as this can affect the company which can contribute to their loss in sales if they do not differentiate their products enough for consumers to really choose them over so many substitutes that are out there in the local and international market depending on their location. Increase in oil prices. Another threat would be the erratic crude prices that always happen in the Philippines as well as other parts of the world. This is because every time oil product prices increase the tendency is to have a domino-effect on the succeeding materials and products that will be produced or served by the different business industries. That is why Mang Inasal should be able to deal with this threat in a positive way like to do something like backward integration so as to lessen unnecessary costs to still be able to maximize what they can in the midst of erratic oil prices throughout the country. Sanitary Issues Standards / Health and Safety Major Issues arise when sanitary standards and health and safety issues are involved especially that Mang Inasal is in the food industry that is part of everyones basic needs. It is a threat to Mang Inasal Philippines Inc. because they cannot allow even minor issues to happen especially if it is

within their control because this can affect the loyalty and sales of Mang Inasal Philippines Inc. as a whole. Quality products and services should be maintained to avoid sanitary standards issues. Political Instability in the Country Another major threat would be the political instability of the country now that we have new government, there are so many things that could still happen. Witnessing the unstable status of the government in general with all the inhumane things happening, this is a threat to Mang Inasal Philippines Inc. because it would scare potential investors and would be hesitant to allow expansion of Mang Inasal Philippines Inc. into their respective places. It is a given that if there is political instability, the economy will be unstable.

Internal Factor Evaluation (IFE Matrix)

Critical success factors Strengths 1. Endorsements 2. Large Target Market 3. Market leader in Barbeque fast food chain 4. Accessibility 5. Strong Commissary System Weakness 1. Filipino Culture 2. Unhealthy food 3 Brands under the Mang Inasal 4. Commissary struggles 5. Lack Research for other countries Total

Weight

Rating

Weighted score

0.12 0.15 0.13 0.10 0.15

4.0 4.0 4.0 3.0 3.0

0.48 0.60 0.52 0.30 0.45

0.05 0.08 0.10 0.07 0.05 1.00

1.0 2.0 2.0 2.0 1.0

0.05 0.16 0.20 0.14 0.05 2.95

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

Summary of Key Strength and Weaknesses Strengths Endorsements Mang Inasal makes itself known through all the promotional tools possible, from TV commercials, radio jingles, posters, print ads and billboards Mang Inasal makes sure that it makes itself present to the masses. It has become a well-known fact that Jollibee invests on actors, actresses and singers to endorse them; money is not an object if it could bring about bigger sales to the company. Mang Inasal wishes for the masses to retain the catchy jingles and commercials it presents, bringing more customers to the fast food chains thus increasing profit for the company. Large Target Market Mang Inasal presents itself as a product to people from a young age of 3 till as old as 70, this way it widens its target market giving the company an edge over its competitors for its store accommodates a large group of people making it more enticing to visit and patronize. Since it caters to a large group of people, it gives the store a greater opportunity to earn more and increase the number of consumers that sets it apart from all the other fast food chains. Market leader in Barbeque fast food chain Mang Inasal became the largest barbeque fast food chain in the Philippines by being accessible by putting up many outlets all throughout the Philippines, through its affordability, and by offering chicken, pork barbeque and other Filipino style products that were suited according to Pinoy taste. Accessibility Mang Inasal has widened its horizon placing its stores strategically, letting its customers access their stores with convenience. Having hundreds of branches across the country, finding the nearest Mang Inasal store wouldnt be such a burden. Having high

visibility It will always be an option for consumers to dine-in and enjoy the service that Mang Inasal has to offer.

Strong Commissary System Mang Inasal numerous branches wont be able to serve its consumers in a high quality manner as how it does now if not for its commissary system, making sure that each branch receives the supply it needs daily. Having commissary that works 24/7, it assures each branch receives the ingredients needed to serve its hundreds of customers nationwide. Having an award winning commissary system, how else can Man Inasal system go wrong?

Weaknesses Filipino Culture Being a locally developed company, Mang Inasal has accustomed its products to the liking and culture of the Filipinos; this is what sets it apart from other fast food chains that go in and out of the country. Mang Inasal is a big hit to the Filipino people because the taste and service it caters is concentrated to how Filipinos are used to and how they want to be served. But since Mang Inasal is expanding nationwide, their distinct products and services may not be as attracting as it is in the iloilo causing a big problem to the company especially regarding its sales. Unhealthy Fast Food Mang Inasal indeed serves meals that are tasty and affordable that it attracts customers daily but as the market evolves, the wants of the people also change indefinitely and today people are starting to get conscious of what they intake and how it would affect their health. Since Mang Inasal does not label the food or meals they serve, it gives the consumers a sense of doubt in purchasing their products; and even if the consumers do purchase, the consistency and frequency of which is never certain.

Brands under the Mang Inasal In the past years, Mang Inasal Philippines Inc. has spent of its resources acquiring several types of ice cream businesses in the country. In the country, 2 various ice cream brands are under the Mang Inasal Network of stores, namely Selecta ice cream and Pinoy Sorbetes. Though this would mean more profit with more brands, competition among these brands is also a reality. Aside from offering more options, these also pose a dilemma, as costumers choose which to eat. Thus gaining more market share from taking from another. Commissary struggles Truly Mang Inasal commissary in the country works at the top of its game but as Mang Inasal expands its horizon to other neighboring provinces, constraints will surely be faced. The company has no capacity to maintain this kind of system in every branch in order to supply ingredients 24/7 as how they do in the Iloilo. Lack of in depth planning and research in global expansion Being the market leader in Barbeque fast food chain, Mang Inasal tried to expand overseas, but failed to replicate its success in the foreign markets. This is probably because it tries to offer Pinoystyle food into the foreign market or the company has already established its local Filipino taste that it cannot easily adopt to people of other countries.

Competitive Profile Matrix (CPM) Mang Inasal Critical Success Factors Advertising Product Quality (Taste) Price Competitiveness Service New Product Innovations Financial Position Customer Loyalty Global Expansion Market Share Total Weight Rating 0.10 0.15 0.15 0.10 0.10 0.05 0.15 0.10 0.10 1.00 4 4 4 3 4 4 4 3 4 Score 0.30 0.60 0.60 0.30 0.40 0.20 0.60 0.30 0.40 3.7 Tokyo-tokyo Rating 3 3 4 3 4 3 3 2 3 Score 0.30 0.45 0.60 0.30 0.40 0.15 0.45 0.20 0.30 3.15 Dennis Rating 2 3 3 3 2 2 2 3 1 Score 0.2 0.45 0.45 0.3 0.2 0.1 0.3 0.3 0.1 2.4

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

Marketing is developing new strategies and brand direction which will help Mang Inasal become a leader in innovation, creativity, and customer relations in the years to come by the use of the most basic strategy in advertising the brand: Pinoy Advertising. Despite how Americanized the modern culture of the Filipinos was becoming, the brand maintained addressing its target market using local messages. As Mang Inasal expanded to the fast food chain that it is now, its target market also grew, serving Pinoy Palamig ice cream and Pinoy and Keso Burger for kids as young as 3 to grandparents as old as 79;

Mang Inasal is successful in enhancing their stores to serve a big age group and fulfilling their needs and expectations of the their favorite fast food chain. Mang Inasal has done a good job in promoting its stores in all possible ways; may it be in billboards, radio ads, tv ads, posters or even flyers. This was the time they launched the Unlimited Rice! On all paborito meals campaign. Its as if everywhere you go and everywhere you look, Mang Inasal always has its ways on showing itself to you. As for its prices, it is considered affordable considering Class C and above can avail of the food and meals that they offer; targeting a big scale of the population; Mang Inasal just secured itself to as much sales that they wish to achieve. As for promos, Mang Inasal has considered this as to magnet their customers, may it be the birthday pain all celebrations, value meals or their delivery service within metro manila; the company indeed have entered all the possible service it can offer its consumers to ensure their loyalty. Mang Inasal has indeed used all its resources to capture their customers and be able to serve to their expectations. Operations Jollibee has over a hundred branches nationwide; it truly has made its mark in the market nationwide and yet the number does not stop Mang Inasal to continue increasing it locally. They target that by 2020 they would have put up thousand stores already. It has also been said that by the end of 2011, Mang Inasal has yet again expanded its name in different places in country, adding more branches to serve the Filipino people from other races that have been transformed into liking the unique service that Mang Inasal offers. Seeing how driven Mang Inasal is and having so much potential, it wont be such a dream for the company to reach its target given that every year the company just grows and grows. As mentioned earlier, the company uses a commissary system that ensures the quality of the products being sold in the local stores. This system does not only guarantee quality of product, but also the timing of the delivery of Mang Inasal products. A professionally staffed Technical Services Team supports the maintenance of an internationally accepted quality management system that further ensures the quality and safety of the commissary manufactured food products. High caliber teams from

Engineering, Human Resources, Information Management, Finance and Accounting likewise provide support to the Manufacturing and Logistics operations of the Commissary. The key to handling any complex commissary operations is being able to use automation, computerization and continuous improvement in manufacturing equipment and processes. Mang Inasal automated operations not only cut production time and ensure consistent quality from batch to batch but also ensures food safety by minimizing handling and maintaining the highest standards of cleanliness. Human Resources Mang Inasal sees that their employees play a big role in sustaining their spot as one of the best fast-food chain in the country. Having this in mind, they take it as a big test in coming up with the best employees that will serve their thousands of customers. The VP, said, Our challenge is how to provide the requirements of the market. Were in the food business and peoples eating habits are changing. Before everybody thought that learning how to cook was an important survival skill, but today, learning how to cook is no longer considered by most young people as necessary because you can already go out. So the fast food industry is really providing the need. And there is a need to fulfill that particular human need easily. Mang Inasal employees evolve depending on its customers because the company tries to cater and the dynamic needs and wants of the consumers and eventually tries to make them loyal customers. Mang Inasal success could be attributed to its strict adherence to its high standards, which can be summarized into F.S.C. Mang Inasal believed that every food (F) served to their customers must meet the standards set by the company; otherwise it will not be served. Excellent customer service (S) is one of the backbones of Mang Inasal. Employees are expected to delivery fast and courteous service at all times. Cleanliness (C) is very important for Mang Inasal both inside and outside the store. Exteriors, from walls to sidewalks, and the interiors, from utensils to the appearance of employees must be clean and presentable at all times. Much is expected from the employees of Jollibee to deliver these standards every time. That is why Mang Inasal has set in place a good compensation and benefit package to encourage their employees to perform their very best. They also go through an intensive training that introduces them to the kind of standard Mang Inasal wants to keep. Managers are continuously learning

the latest systems in store operations and other effective store and people management skills. The company has also set in place career pathing for its employees, which provides an opportunity for its employees to pursue a higher career in the company. Strengths, Weaknesses, Opportunities, Threats (SWOT) Strengths 1. Endorsements 2. Large Target market Weakness 1. Filipino Culture 2. Unhealthy food

3. Market leader in the Fast 3 Brands under the Mang Food Industry 4. Accessibility 5. Efficient Inasal 4. Commissary struggles Commissary 5. Lack Research for other countries WO Strategies Consider (W2+O3) restaurants that Acquire serve

system Opportunities 1. Local culture SO Strategies and (S3+O5+O3)

traditions 2. Cultural Diversity 3. Brand Acquisitions 4. Urban development

raising their own chickens. (S3+S2+O4) Expand

healthy food and introduce a healthy product line.

network of stores to newly developed provinces. areas in

the (W5+O2) Intensify research on other countries culture in order to cater effectively to the Filipino and foreign markets abroad.

5. Philippines being an (S3+O3) Acquire business Agricultural nation in order to penetrate

overseas market.

Threats

ST Strategies

WT Strategies Continue (W5+T1) Intensify research foreign culture and

1. Foreign-owned and local (S5+T3) SMEs 2. Global financial crisis 3. Sanitary

adherence to standards and on

become a benchmark in the develop market for Mang government sanitary health Inasal abroad.

Standards/ standards. (S2+S3+T5) strengthen to reinforce

Health and Safety issues 4. Oil Prices 5. Political Instability in the country advertising

market leadership amidst political instability. (S3+T2) Create more

affordable meals to aid Filipinos coping with the financial crisis. S1+S3+T1 = intimidate

competitors by reinforcing market dominance through intensified advertising.

Strategic Position and Action Evaluation (SPACE) Matrix FINANCIAL STRENGTH Current ratio is high with a percentage score of 1.46% Quick ratio is high with a percentage of 0.98% Net Sales of Siemens Healthcare is Php. 2,569,894,466 RATINGS 4 3 4 11

INDUSTRY STRENGTH Market share of Siemens in the industry Growth potential of 50% every year and 12.5% per quarter. Product Innovations by the companys R&D is an important factor in the Health Industry. 3 12 5 4

ENVIRONMENTAL STABILITY Fast development of technology Competitive Pressure Inflation Rates Price range of competing pressure -1 -2 -3 -4

-10

COMPETITIVE ADVANTAGE Market Share Product Quality Control over suppliers Customer Loyalty -1 -2 -1 -3 -7

Conclusion

ES

average

is

-6/4

-1.5

IS

average

is

12/3

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

Directional Vector coordinates: x-axis: -1.75 + (+4) = 2.25 y-axis: -2.5 + (+3.67) = 1.17

The directional vector is located at the aggressive quadrant of the SPACE Matrix. It means that the organization is in an excellent position to use its internal strength. The company could avoid the external strength while taking advantage of external opportunities. Siemens can rely fully on its internal strengths.

SPACE Matrix

Financial Strength ROI Leverage Liquidity Working capital Cash flow Inventory turnover Earnings per share Price earnings ratio Average

2.00 4.00 5.00 5.00 3.00 4.00 4.00 4.00

Environmental Stability Technological Changes Rate of Inflation Demand Variability Price Range of Competing Products Barriers to entry into market Competitive pressure Ease from exit from market Price elasticity of demand Risk involved in business Average

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

3.88

Competitive Advantage Market share Product quality Product Life Cycle

-1.00 -2.00 -2.00

Industry Strength Growth potential Profit potential Financial stability

3.00 3.00 4.00

30

Customer Loyalty Competition capacity to utilization Technological Now How Control over suppliers and buyers Average

-5.00 -2.00 -3.00 -4.00 -2.71

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

1.00 2.00 1.00 3.00 2.42

JFC should stick to its core competencies by making sure that it provides its consumers benefits that no other fast food chain could provide, by making sure that what they have and what they do would not easily copied or imitated by others and that they would leverage on the strengths that the company have so that they could have their added value over competitors. This way, they can apply the conservative strategy throughout their businesses and still be the leading and successful fast food chain in the country. JFC also should focus on particular niche markets which concentrates on a certain group or market which further proves that they indeed uses the conservative strategy in their line of business. They did not waste their time spreading themselves too thin across different kinds of business so that they can concentrate and stand out in that particular niche that they are dominating and serving. Since JFC has several opportunities which they can take advantage of, they were able to pinpoint these opportunities and use them for their benefit. More often than not, Jollibee should only take calculated risks and avoids taking unnecessary risks that could put them in a disadvantageous position. There sould always be thorough studies conducted before JFC makes a move or change certain things related to the product and services that they offer.

Grand Strategy Matrix The Grand Strategy Matrix is centered on two evaluative dimensions, namely competitive position and market growth. In the matrix, we will see that Mang Inasal falls under the fourth quadrant-having a strong competitive position in a slow market growth. Recommended strategies under this quadrant are: horizontal, conglomerate, concentric diversification and joint venture. We suggest that Mang Inasal Philipines Inc. follow concentric or horizontal diversification or both. Concentric Diversification is growing a firm by acquiring other firms or adding new products or services that are related to the current products/services or to the firm itself. We say this because one of its strengths is its large target market, catering to different groups of consumers. Mang Inasal Phillipines Inc. any come up with new food products or services like catering. Horizontal Diversification, on the other hand, is when a firm develops or acquires new products that are may appeal to its current consumers. Mang Inasal Philippines Inc. may opt to team up with other firms to come up with new products or services.

QSPM Key Factors Internal Endorsements Large Target Market-Age, Culture, and Class AccessibiltyOutlets Market Leader in Fast Food Industry Commissary System External Sanitary and Health Standards Philippines Agricultural Nation Urban Development Global Financial Crisis Competition with Other Companies Total Score .12 .15 .13 .10 .15 Weight Horizontal Diversification AS 3 3 4 4 4 TAS .36 .45 .52 .40 .60 Research and Development AS 2 4 4 4 3 TAS .24 .60 .52 .40 .45 Concentric Diversification AS 3 4 4 4 4 TAS .36 .60 .52 .40 .60

.11 .10 .10 .09 .10 3 3 4 3 3 34 .33 .30 .40 .27 .30 3.93 4 3 2 3 4 33 .44 .30 .20 .27 .40 3.82 4 3 4 3 4 37 .44 .30 .40 .27 .40 4.29

Quantitative Strategic Planning Matrix (QSPM) Key factors Product Development Opportunities 1. Local culture and traditions 2. Cultural Diversity 3. Brand Acquisitions 4. Urban development 5. Philippines being an Agricultural nation Threats 1. Foreign-owned and local SMEs 2. Global financial crisis 3. Sanitary Standards/ Health and Safety issues 4. Oil Prices 5. Political Instability in the country Weight AS TAS Market Penetration AS TAS

Strengths 1. Endorsements 2. Large Target Market 3. Market leader in the Fast Food Industry 4. Accessibility 5. Efficient Commissary system Weakness 1. Filipino Culture 2. Unhealthy food 3 Brands under the Mang Inasal 4. Commissary struggles 5. Lack Research for other countries TOTAL

Mgt mktg finance production

Chapter V I. Objective and Recommended Strategies a. Strategic and Financial Objectives b. Recommended Strategies i. Management ii. Marketing iii. Production iv. Finance

Generic Competitive Strategy Mang Inasal should continue with the use of Product development strategy. As seen in the analysis of Mang Inasal operations the past years, this strategy has been proven beneficial to the company. With good research and development, Mang Inasal is capable of continuing to produce products that fit well to the taste of their market. They could also continue innovating their current product line so as to continuously remain ahead of its competitors. And to compliment this strategy, Mang Inasal should also pursue Cost Leadership - Best Value strategy. In this strategy, Mang Inasal should create a new product line to cater to a unique segment of their market. For example, creating a healthier product line for those who are weight and health conscious would be ideal.

Complementary Strategies Based on the analysis made on Mang Inasal current performance, two of its segments; food and franchising both fall into the first quadrant. It is then advisable if Mang Inasal will continue expanding its network by setting more stores in new strategic areas, either through franchise and company initiated. Mang Inasal should also strengthen its advertising promotions so as to continue to reinforce dominance in the industry. And this would be necessary, as Mang Inasal will introduce new additions to their product line. Further analysis, using the QSPM Matrixes reveal that based on the key success factors of Mang Inasal vis- -vis its current strategies, Mang Inasal should best go for Market Penetration strategy. This is one aggressive strategy, best to compliment Mang

Inasal grown and build position in the IE matrix. It is advised that Mang Inasal adds more related products to their product line. This is because there appears to be no need to totally change the current product line of Mang Inasal, as it has been widely accepted and loved by the Filipino market. Addition to the said product line would be necessary to cater to more markets.

Functional Strategies Marketing / Sales Strategy Rather than overhauling the entire marketing and sales strategy of Mang Inasal, it should keep to its market for now, given the global financial crisis. As what the SPACE matrix indicated, the company or the brand should not take unnecessary risks in trying to get ahead in the industry. They are already on top of the industry here in the Philippines and the only thing they need to do is to stay ahead. As for its nationwide brands competing in the nationwide market, the Mang Inasal brand should stick to the Filipino market and let its other brands focus on the other markets. Its a kind of strategy where each brand would target specific markets.

Operational, Production or Technical Strategies It was also raised during analysis that Mang Inasal production and supply system is working well in the country. It can also be said that the success of Mang Inasal could also be attributed to this. It is then necessary that Mang Inasal makes sure that the same system could be brought to other places were Magn Inasal would like to venture in. This is to ensure that same quality will also be delivered all the time and in order to maintain the standard and quality that Mang Inasal has been known for.

Finance, HR and Others

There is nothing much to do in the financial side of Mang Inasal Philippines Inc. because they are financially well-off despite the crisis. They were able to weather it and eventually stayed on top by keeping the same or even better financial performance. Although, Mang Inasal Philippines Inc. should avoid any unnecessary investments, like buying another brand if it is not at all strategic or financially beneficial to the company in the long-term. In developing the human resources of Mang Inasal Philippines Inc., the company should always remember that they are breaking barriers and competing in the market. In line with diversifying its products and services, the employees should adapt to this. By offering foreign language programs for Filipino employees who wish to work abroad should be considered if Mang Inasal really wants to compete in the global markets, especially in Asia.

Chapter 7 Action Plans and Departmental Programs ACTIVITIES TIMETABLE EXPECTED OUTPUT 6 Increase in share / sales PERSON/UNIT RESPONSIBLE market Marketing

Make advertisements Every on news paper or months television. Penetrate hospitals small Monthly

Increase sales / retain Marketing market leadership

Evaluation Meetings

Monthly

Minimize hanging Management projects and company activities. Increase in productivity Increase in market share work Human Resource

Scouting and hiring of Annually qualified engineers. Development of Monthly innovative products to be sold in the market. Easier customer Quarterly support and maintenance of products. Invest on Corporate Quarterly Social Activities.

sales

/ Management / Research and Devt

Increase in customer Distribution satisfaction

Increase market Management leadership / establish a Financial more strong company image.

Chapter 8 Strategy Evaluation / Monitoring and Control Strategies recommend in all the aspects of the business should be closely monitored in order to achieve success. Every division / departments in the company would submit a monthly report regarding the status of their activities. The management also would conduct monthly evaluation meetings to fully monitor if there is a problem or activities that are left behind and not done on the designated schedule.

The distribution department would be monitoring on the number of branches that they have established and should submit a report to the management about the newly established branches efficiency.

Balance Score Card CUSTOMERS GOALS 1. Customer loyalty MEASURES Rate of return of the customers Advertise through ATL and BTL kind of advertising. TARGETS Increase of sales by 30% in the year 2013 Penetration of small hospitals by year 2013 / More demand across the nation. By 2013 maintenance outlets should be visible within the market area.

2. Excellent product advertisements.

3. Expansion of Maintenance Outlets and Stores nationwide

Increase of number of stores and maintenance outlets per region. Monthly market share performance evaluation. Customer feedback forms on each maintenance outlets.

4. Market leadership

Increase of market share.

5. High customer satisfaction

Avoid loss of customer and decrease in sales.

FINANCIAL PERSPECTIVE GOALS 1. Increase its market share. MEASURES Return on Assets and Equity Increase in Revenue by 30% in the next 5 years. Increase in Stock Holders Equity TARGETS Increase in Revenue and Net Income. Increase in profits and market share

2. Maintain high profitability

3. Maintain Financial Stability and Good reputation through investors.

Maintained Market Leadership.

HUMAN RESOURCE / MANAGEMENT GOALS 1. Additional Career Fair Activities in Schools. 2. CSR orientation of employees. MEASURES Tie up with engineering schools. Promote CSR activities in the whole company. Incentives every month, Team buildings every quarter. TARGETS Minimize threat of less qualified engineers. CSR oriented employees.

3. Continue being the preferred employer.

High inflow of employees.

The goals and measurements of those goals that were determined for Mang Inasal in the balanced scorecard were derived from the previously stated vision, mission, values and SWOT analysis. The fast food industry has many growth opportunities, particularly with the advent of the health conscious individual who is looking for convenient alternatives to fast food. The following categories are breakdowns of each goal and how it relates to the overall strategy of Yum Yum Smoothies.