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 today‟s 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 company„s 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 abot-
kaya” 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 Four-
Season 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 Porter‟s 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 Porter‟s 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 Yes NO
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 

Customers - (Who are the firm‟s customers?)

Mang Inasal customers are the pinoy as stated in V/M statement.

Products and Services - (What are the firm‟s 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 there‟s 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 firm‟s 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 firm‟s 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 (Government‟s 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

(+) Filipino‟s 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.

(+) Working class has no time to cook, find fast foods for
convenience.

(-) the rise of other restaurants that offering unlimited rice in the
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 Low Moderate high

Competitor 

Threat of new entrant 

Development of substitute products 

Bargaining power of customers 

Bargaining power of suppliers 

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 it‟s 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 don‟t know how to cook or don‟t 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 everyone‟s 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 Department‟s creation on January

2009 made a big impact on Mang Inasal‟s 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
Robinson‟s 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 country‟s 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 Inasal‟s Mindanao requirements.The Davao commissary will
be operational in September this year and is expected to also augment the needs of
Mang Inasal‟s 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 company‟s 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 Inasal‟s new Vice President for Training since
March this year, is upbeat over the training series that comes with the opening of
the company‟s new training center.Formerly the company‟s organizational
development consultant in 2003, Abela is now setting up Mang Inasal‟s 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 Covey‟s
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 Inasal‟s 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
company‟s 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 master‟s 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 festival‟s
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 Maasin‟s poor families that
comprise majority of the town‟s 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 Inasal‟s 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 Maasin‟s 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
Maasin‟s total land area of 17,000 hectares is planted to the bamboo tinik variety
alone – it could supply only 70 percent of Mang Inasal‟s 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 Mayor‟s 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 Inasal‟s 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. IKM‟s 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 Maasin‟s
bamboo suppliers is their being a major partner of the country‟s 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 Inasal‟s 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 world‟s “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 company‟s Philippine representatives to use Oracle‟s 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, Oracle‟s 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. It‟s 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 Inasal‟s 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 country‟s 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 City‟s 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 Bacolod‟s 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 vehicle‟s “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 Inasal‟s First Employee Intends to Stay Long (Bobby Calumpit)

ILOILO City – He was there doing trouble shooting when Mang Inasal first
opened at Robinson‟s 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 Inasal‟s 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 store‟s 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 Inasal‟s first store manager, Bobby was a dining
supervisor and then banquet manager at Four-Season Hotel, Chairman Sia‟s 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 don‟t 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 Robinson‟s 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 Inasal‟s
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 Deco‟s Original La Paz Batchoy Branch in this city‟s 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 Inasal‟s 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 manager‟s 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 Sia‟s 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 Robinson‟s.
 Financial Ratios

Mang Inasal Philippine Inc.

Ratios Year 1 (2008) Year 2 (2009)

Quick Ratio Current 4,563,987- 0.98 5,240,961- 1.1
Assets- 2,994,288 3,286,542
Inventory 1,598,078 1,721,861
Current
Liabilities
Inventory Sales 7,842,273 2.6 8,628,742 2.6
Turnover Inventory 2,994,288 3,286,542

Fixed Assets Sales 7,842,873 7.29 8,628,742 4.16

Turnover Fix Assets 1,075,830 1,075,830

Total Assets Sales 7,842,873 2.13 8,628,742 2.16

Turnover Total assets 3,686,000 3,989,000

* Average Accounts 2,994,288 176* 3,018,766 159*

Payment Payable 17,000 19,000
Period Ave.
(Days) Purchases/day
* Average Accounts 3,921,436.50 180* 4,899,601 158*
Collection Receivable 21,786 31,050
Period Sales per day
(Days)
Gross Profit Sales-CGS 4,848,585 0.62 5,332,563 0.62
Margin Sales 7,842,873 8,628,742

Operating EBIT 1,078,968 0.14 875,742 0.10

Profit Margin Sales 7,842,873 8,628,742

Net Profit Net Income 733,698 0.09 875,307 0.10

Margin Sales 7,842,873 8,628,742

Return on Net Income 733,698 0.20 875,307 0.22

Total Assets Total Assets 3,686,000 3,989,000
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) (2009)
Net Sales
Gross Sales 7,882,278 8,670,506
Less: Sales Discount 39,405 41,764
Net Sales 7,842,873 8,628,742
Less: Cost of Sales
Drinks
Inventory beg. 7,843 8,629
Purchases 401,745 598,265
Total 486,947 604,012
Less: Inventory End. 12,253 18,781
Cost of Drinks Sold 397,336 517,725
Foods
Inventory beg. 23,511 19,763
Purchases 2,629,230 2,890,629
Total 2,814,313 3,097,718
Less: Inventory End. 28,149 31,144
Cost of Food Sold 2,624,592 3,010,984
Cost of Sale Bef. Free Item 3,021,927 3,332,066
Free Item (27,639) (30,679)
Cost of Sale After Free Item 2,994,288 3,291,387
Gross Profit 4,848,585 5,332,563
Less: Operating Expenses
Royalty Fee 287,388 319,111
Salaries & Bonuses-Sales 1,181,867 1,302,940
Salaries & Bonuses-Admin. 6,440 7,286
Advertising 20,443 16,886
Communication 24,190 23,684
Other Employee Costs 49,787 43,289
SSS/Phil health exp 38,582 39,176
Insurance - -
Kitchen Utensils 89,787 81,342
Miscellaneous 1,253 1,570
Office Supplies 26,082 24,365
Professional fee 32,750 33,125
Repairs 14,981 10,764
Store Supplies 496,061 500,040
Taxes & Licenses 49,074 49,821
Travel 11,191 12,078
Rentals:
Basic Rent 299,485 299,485
Percentage Rent 452,789 599,796
Utilities:
Common Area 61,447 61,496
Aircon 65,207 66,423
Electricity 276,538 235,798
Water 23,982 24,641
Other Operating Costs:
Ice 36,326 39,999
Gas 162,437 190,231
Janitorial 61,530 62,000
Total Operating Expenses 3,769,617 4,045,344
Net Income before Depreciation 1,078,968 1,287,217
32% tax 345,269 411,909
Net Income after tax 733,698 875,307
Chapter V

External Factor Evaluation (EFE matrix)

Critical success factors Weight Rating Weighted score

Opportunities

1.Local Culture and Tradition 0.12 4 0.48

2.Cultural Diversity 0.08 2 0.16

3.Philippines – Agricultural Nation 0.10 2 0.20

4.New Brand Acquisitions 0.11 4 0.44

5.Urban Development 0.10 3.5 0.35

Threats

1. Foreign-owned and local SMEs 0.10 3 0.30

2. Global Financial Crisis 0.09 3 0.27

3. Increase in oil prices 0.10 2 0.20

4. Sanitary Issues Standards / Health and Safety 0.11 3 0.33

5. Political Instability 0.09 3 0.27

TOTAL 1.0 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 family-
oriented 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
everybody‟s 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
doesn‟t 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 everyone‟s 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 Weight Rating Weighted score

Strengths

1. Endorsements 0.12 4.0 0.48

2. Large Target Market 0.15 4.0 0.60

3. Market leader in Barbeque fast food chain 0.13 4.0 0.52

4. Accessibility 0.10 3.0 0.30

5. Strong Commissary System 0.15 3.0 0.45

Weakness

1. Filipino Culture 0.05 1.0 0.05

2. Unhealthy food 0.08 2.0 0.16

3 Brands under the Mang Inasal 0.10 2.0 0.20

4. Commissary struggles 0.07 2.0 0.14

5. Lack Research for other countries 0.05 1.0 0.05

Total 1.00 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 wouldn‟t 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 won‟t 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 Tokyo-tokyo Dennis

Critical Success Factors Weight Rating Score Rating Score Rating Score

Advertising 0.10 4 0.30 3 0.30 2 0.2

Product Quality (Taste) 0.15 4 0.60 3 0.45 3 0.45

Price Competitiveness 0.15 4 0.60 4 0.60 3 0.45

Service 0.10 3 0.30 3 0.30 3 0.3

New Product Innovations 0.10 4 0.40 4 0.40 2 0.2

Financial Position 0.05 4 0.20 3 0.15 2 0.1

Customer Loyalty 0.15 4 0.60 3 0.45 2 0.3

Global Expansion 0.10 3 0.30 2 0.20 3 0.3

Market Share 0.10 4 0.40 3 0.30 1 0.1

Total 1.00 3.7 3.15 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. It‟s 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 won‟t 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. We‟re in the food business and people‟s 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 Weakness

1. Endorsements 1. Filipino Culture

2. Large Target market 2. Unhealthy food

3. Market leader in the Fast 3 Brands under the Mang

Food Industry Inasal

4. Accessibility 4. Commissary struggles

5. Efficient Commissary 5. Lack Research for other

system countries

Opportunities SO Strategies WO Strategies

1. Local culture and (S3+O5+O3) Consider (W2+O3) Acquire

traditions raising their own chickens. restaurants that serve
healthy food and introduce a
2. Cultural Diversity (S3+S2+O4) Expand
healthy product line.
network of stores to newly
3. Brand Acquisitions
developed areas in the (W5+O2) Intensify research
4. Urban development provinces. on other countries‟ culture
in order to cater effectively
5. Philippines‟ being an (S3+O3) Acquire business
to the Filipino and foreign
Agricultural nation in order to penetrate
markets abroad.
overseas market.
Threats ST Strategies WT Strategies

1. Foreign-owned and local (S5+T3) Continue (W5+T1) Intensify research

SMEs adherence to standards and on foreign culture and
become a benchmark in the develop market for Mang
2. Global financial crisis
government sanitary health Inasal abroad.
3. Sanitary Standards/ standards.
Health and Safety issues
(S2+S3+T5) strengthen
4. Oil Prices advertising to reinforce
market leadership amidst
5. Political Instability in the
political instability.
country
(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 RATINGS

Current ratio is high with a percentage score of 1.46% 4

Quick ratio is high with a percentage of 0.98% 3

Net Sales of Siemens Healthcare is Php. 2,569,894,466 4

11

INDUSTRY STRENGTH

Market share of Siemens in the industry 5

Growth potential of 50% every year and 12.5% per quarter. 4

Product Innovations by the company‟s R&D is an –

important factor in the Health Industry. 3

12

ENVIRONMENTAL STABILITY

Fast development of technology -1

Competitive Pressure -2

Inflation Rates -3

Price range of competing pressure -4

 -10

COMPETITIVE ADVANTAGE

Market Share -1

Product Quality -2

Control over suppliers -1

Customer Loyalty -3

-7

Conclusion

ES average is -6/4 = -1.5 IS average is 12/3 = 4

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 Market

Development Penetration

Opportunities Weight AS TAS AS TAS

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

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-à -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. It‟s 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 PERSON/UNIT

OUTPUT RESPONSIBLE

Make advertisements Every 6 Increase in market Marketing

on news paper or months share / sales
television.

Penetrate small Monthly Increase sales / retain Marketing

hospitals market leadership

Evaluation Meetings Monthly Minimize hanging Management

projects and company
activities.

Scouting and hiring of Annually Increase in work Human Resource

qualified engineers. productivity

Development of Monthly Increase in sales / Management /

innovative products to market share Research and Dev‟t
be sold in the market.

Easier customer Quarterly Increase in customer Distribution

support and satisfaction
maintenance of
products.

Invest on Corporate Quarterly Increase market Management /

Social Activities. 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 MEASURES TARGETS

1. Customer loyalty Rate of return of the Increase of sales by 30%

customers in the year 2013

2. Excellent product Advertise through Penetration of small

advertisements. ATL and BTL kind of hospitals by year 2013 /
advertising. More demand across the
nation.

3. Expansion of Maintenance Increase of number of By 2013 maintenance

Outlets and Stores nationwide stores and outlets should be visible
maintenance outlets within the market area.
per region.

4. Market leadership Monthly market Increase of market

share performance share.
evaluation.

5. High customer satisfaction Customer feedback Avoid loss of customer

forms on each and decrease in sales.
maintenance outlets.

FINANCIAL PERSPECTIVE

GOALS MEASURES TARGETS

1. Increase its market share. Return on Assets and Increase in Revenue and
Equity Net Income.

2. Maintain high profitability Increase in Revenue Increase in profits and

by 30% in the next 5 market share
years.

3. Maintain Financial Stability Increase in Stock Maintained Market

and Good reputation through Holder‟s Equity Leadership.
investors.
 HUMAN RESOURCE / MANAGEMENT

GOALS MEASURES TARGETS

1. Additional Career Fair Tie up with Minimize threat of less

Activities in Schools. engineering schools. qualified engineers.

2. CSR orientation of Promote CSR CSR oriented employees.

employees. activities in the whole
company.

3. Continue being the preferred Incentives every High inflow of

employer. month, Team employees.
buildings every
quarter.

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.