Executive Summary

The paper being submitted by the researcher aims to discuss and focuses on the
development and recommended strategies for Bibingkinitan, a subsidiary company of Philippine
FoodAsia Corporation. It aims to improve the brand recognition of the company and to widen its
target market through effective and proper strategies. This paper also shows how Bibingkinitan
could become an effective company and as well as how it could improve its services and
financial position in the succeeding years to strengthen the competitive position of the company.
This paper shows the external, financial stability, internal stability and other parts of the
company that helps Bibingkinitan to become what it is now and how it operates in its industry
despite the fact that it is a part of an industry with so many competitors domestically and
internationally. This paper also shows the different results of strategy formulation tools used in
order to strategies and do significant action plans.
Bibingkinitan is the number one bibingka chain in the Philippines. They had provided the
Filipino people with a good tasting and healthy rice cake, or commonly known here in the
country as bibingka. The main products of the company are bibingka, kapeng barako and fruit
juices. They have been one of the fast growing franchising businesses in the country.
Bibingkinitan was created in order to promote patriotism by giving the people with this local
delicacy all year round and to promote the culture of the Filipinos.
For the next five years, the company set the objective of expanding the range of its target
market and by increasing its profit without harming the Earnings per share of its stockholders.
Part of its objective is the establishment of outlets outside the country, particularly in Jakarta,
Singapore and Las Vegas.
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To sum up this paper, different strategies and specified programs will be conferred. Results
of strategy matrices and formulation tools will help the management of Bibingkinitan to improve
its production. The analysis in the paper shows how Bibingkinitan could widen its brand
recognition and to expand its target market through the following Intensive strategies: Market
Penetration, Product Development and Market Development.

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I.

Introduction
Company Profile

Bibingkinitan is the leading and biggest Bibingka Chain in the Philippines. They offer the
softest and moistest bibingka not only here in the country but also in the whole world.
Bibingkinitan founded its humble roots in 2006, when Richard Franz, an engineer by profession,
founded this popular bibingka chain. They started franchising in 2007; and as of 2011 they have
80 operating franchises. As of 2011, they have 200 outlets in which more than 80 branches are
owned by Food Asia Corp and the rest are operating franchises. Bibingkinitan is considered as
one of the fastest growing franchise, as rated by the Entrepreneur Magazine Philippines. Since
2007, Bibingkinitan earned numerous awards and recoginitions that include Best in Franchise
Support Award which they have won in 2007, 2008 2010 and the Fastest Growing Franchise
Award which they have won in 2008, 2009 and 2010.
For the year ended 2012, the revenue of the company was 116,720,460.71 pesos. Its profit
for the same here was 340,314.52 pesos. The size of its asset was 25,017,380.90, consisting of
liabilities and stockholders equity of 17,560,690.50 and 7,456,690.41 respectively. The major

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market served by the company is the C and D segment of the socio-economic population in the
country. The company is estimated to have 1,000 1,500 employees.

II.

Paper Design and Methodology

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The research was done in order to know the current position of the company in its industry and to
know the current operating status of the company. The research was projected using
comprehensive strategic management model.

The models used in this research will be

used in order to present practical and clear approach for formulating, implementing and
evaluating strategies for Bibingkinitan. The following methods will be used in developing
strategic management research paper:
The research is projected using comprehensive strategic- management model. This will represent
a practical and clear approach for formulating, implementing and evaluating strategies for
MediCard Philippines Incorporated. The following methods will be used in developing the
strategic management research paper:
Data Gathering Techniques

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The materials used in this paper was gathered mainly in the reputable websites in the internet
such as the main server of the company, Department of Trade and Industries, Philippine Statistics
Authority, Social Weather Station, National Statistical Coordination Board and The Philippine
Star. Books were also used in order to gather information. These include Fundamentals of
Accounting by Empleo and Strategic Management by David.
Scope and Limitations
The scope of this research is limited only to the products served by Bibingkinitan, Mister Donut
and Brownies Unlimited. Covered information in this paper will be from years 2010 to 2015.
The materials used by the researcher are limited to online references and books prescribed by the
school. The researcher also used his personal experience in order to provide information in this
paper.

III.

Vision/Mission Statements

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A. Statement of the Current Vision and Mission Statements

Vision:
Being the countrys leading bibingka chain, we envision to make this traditional Filipino
delicacy to be recognize not only domestically but also internationally and to compete
side by side with other foreign brands. By doing so, we strive to bring out the best that
the Philippines and the Filipino has to offer to the whole world and to become one of the
most wanted products not only today but also in the future.
Mission:
It is our mission to provide not only great tasting bibingka to our customers but also the
taste of Filipino tradition.

B. Critiquing of the Current VM Statements.

The Vision Statement of the company is too long. Preferablly, Vision Statements
should only be short and it should only be simplified into one sentence. The main reason
for this is to easily capture the attention of the people and to give them a glimpse at one
sight of the goal of the company. The Vision statement should also be short enough to be
understood by the people but contains enough words to show them what the company
wants to become.
The Mission Statement of a company should contain the nine (9) components of a
good mission statement. It should be broad in scope, meaning it does not include monetary
amounts, numbers, percentages, ratios or objectives. It should also be inspiring and

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enduring and reveals that the company is not only socially but also environmentally
responsible. Base on the given mission statement of the company, it didnt met the
criterias to have an excellent mission statement. Even though it is broad enought, it lacks
some of its components.
C. Recommendation of Revised VM Statements
The following is the recommended VM Statements of the researcher:
Recommended Vision Statement:
It is our vision to make Filipino food and delicacies known to the whole world and to
compete side by side with the international brands.
Recommended Mission Statement:
It is our mission to provide great tasting bibingka to our customers and to provide not only
the country but also the whole world a taste of the Filipino tradition. By doing so, we will
emphasize in training our staffs and employees to maximize their full potential and to
adapt to technological changes the world has to offer. We will make sure to give the people
what they want and to deliver to them the Filipino values and to provide our company a
positive operating results in order to continue in competing in the international scene.

IV.
External Analysis
A. General Environment

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The following sections will show how external factors will have an effect on the
company directly or indirectly. It will also disccus the impact of these factors on the
operation of the company.
4.1 SOCIAL, CULTURAL, AND DEMOGRAPHIC FORCES
4.1.1 Five Socioeconomic classes:

Figure 1: Socioeconomic Classes

Source: Social Weather Stations (SWS)
http://www.pinoymoneytalk.com/sec-abcde-percentage-population/
The SWS surver shows the different socioeconomic classes here in the Philippines. The
Socioeconomic classes are compose of the A,B,C,D and E market. Since 1985 up to the current
year, the SWS gathers information in order to determine the number of each classes in our
Population. According to the most recent information gathered by the researcher, the AB class
composes the lowest rate amongst the classes with a percentage of 1% in number of families. If
we will compare this with the socioeconomic classes of other countries, we can infer that the AB
class always composes the least number of share in the population. Here in the Philippines, the
1% percentage can be translated into nominal terms, that is they are composed only of 185,000
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families. Assuming that each family is composed of a total of 5 members, then the AB population
is barely 1 million people in the Philippine population. If we will look into their share in the total
income of the country, it will amount to 9% of the total income. Translating it into nominal
terms, it will be equal to approximately 1,857,000 pesos of annual income. Their share of 9% in
the total income is equal to that of the E market, which is the last class in our diagram. The E
market is also known as the lower class because they compose the 30% of the population in
number of families. The 30% population also shares in the same weight of percentage as the AB
class, which is 9% of the total income. That is approximately an annual income of 62,000 pesos
which is not enough for a family composed of 5 members. On the other hand, the middle class
people, also known as the D market dominates the percentage in both share in number of
families and share in percentage of total income. 60% of the population shares in the 56% total
income, meaning that a family composing of 5 persons have an annual income of Php 191,000.
This percentage is a good sign for the company, considering the fact that their target market are
the C and D class of the population. The company can take advantage of these facts in order to
control the market.

4.1.2 Population of the Philippines:

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Figure 2: Population of the Philippines

Source: Trading Economics
http://www.tradingeconomics.com/philippines/population
The population of the Philippines continues to increase rapidly since the 20th century. According
Trading Economicsdata above, the population of the Philippines during January of the year
2006 is 85.26 million people. From then on, the population of the Philippines contiues to grow at
an approximate rate of 1.4 million people per year. The highest increase in the population was on
January 2013, when it reached 97.1 million from 94.8 million of the prior year. That was an 2.6
million increase in the population for just about a year. During the year 2015, we hit the 100
million mark, meaning for the past 55 years we increased by 80 million people.
The current population of the Philippines represent 1.37 percent of the worlds population, which
means that 1 in every 75 people on the planet is a resident of the Philippines. This is also a good
sign for the company in terms of expanding its range outside the country because it can easily
find a Filipino customer wherever in the world.
4.1.3 Division of Religions in the Philippines
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Figure 3: Population of the Philippines

Source: National Statistical Coordination Board
http://www.catholicnotes.com/2014/religion-in-the-philippines/
The Republic of the Philippines is considered as the only country in Southeast Asia with
predominantly Christian population. Christianity is a religion in which people believed in Jesus
Christ, who was sent by God to redeem His people from their sins. Christians believed in the
birth, death and ressurection of Jesus Christ. The birth of Jesus Christ is also known as the
Christmas season. Here in the Philippines, Filipinos celebrate Christmas as early as September
up to as late as January. During this season, vendors usually sell Bibingka, which is a popular
delicacy here in the Philippines
As of 2014, the Roman Catholic still dominates the country in terms of religion. The Catholics
represent 82.9% of the population, followed by the Protestants at 5.4%. Being Catholics means
that we celebrate certain holidays and traditions, especially Christmas which is the birth of Jesus
Christ. This is the season when we celebrate Misa de Gallo and coincidentally this is also the
season of local delicacies like Bibingka and Puto bumbong. For as long as we have this kind of
season, then the demand for local delicacies such as bibingkas and putobumbongs will be high
during this seasons.
4.2 ECONOMIC ENVIRONMENT
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4.2.1 Employment Rate

Figure 4: Employment Rate

Source: Philippine Statistics Authority
http://web0.psa.gov.ph/content/employment-rate-april-2014-estimated-930-percent
According to Philippine Statistics Authority, the estimated employment rate last April 2014 is
93.0%, which is .6% higher compared to last years employment rate. The statistics in 2014 and
2013 excluded the province of Leyte due to the calamity that they had experienced during 2013.
Also, the following regions had and employment rate which is lower than the National
Percentage:
a.
b.
c.
d.

National Capital Region(NCR) 89.6%

Ilocos Region 90.8%
CALABARZON 91.0%
Central Luzon 91.4%

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The graph also shows that there is an increase of 1.4% in the Labor Force Participation Rate,
which is a good sign for opening new jobs and franchises because we can hire easily employees
to work for the company.
4.2.2 Inflation Rate

Figure 5: Headline Inflation Rates in the Philippines, All Items (2006=100)

Source: Philippine Statistics Authority
http://census.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index2006100-may-2014
According to the Philippine Statistcis Authority, the inflation rate for the month of May in the
year 2014 hit 4.5%. This is as twice as high compared to the 2.6% of inflation rate in the same
period last year. The growth was primarily brought about by higher annual rate posted in the
heavily-weighted food and non-alcoholic beverages index. Faster annual increments were also
registered in the indices of clothing and footwear; housing, water, electricity, gas and other fuels;
furnishing, household equipment and routine maintenance of the house; transport; and

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communication. High inflation rates of 2014 compared to 2013 could post a threat to the
purchasing power of the Filipinos and their power to buy is being challenged by these increases.
If this continues, then it can affect the the company in generating profit for the year.
4.3 POLITICAL, LEGAL AND GOVERNMENTAL FORCES
4.3.1 Republic Act No. 7394
The given Law mentioned below have an effect on the operation of the business:
Republic Act No. 7394, also known as The Consumer Act of the Philippines was enacted on
April 13,1992.
TITLE I. GENERAL PROVISIONS
Article 1. Short Title. This Act shall be known as the "Consumer Act of the Philippines."
Article 2. Declaration of Basic Policy. It is the policy of the State to protect the interests of the
consumer, promote his general welfare and to establish standards of conduct for business and
industry. Towards this end, the State shall implement measures to achieve the following
objectives:
a) protection against hazards to health and safety;
b) protection against deceptive, unfair and unconscionable sales acts and practices;
c) provision of information and education to facilitate sound choice and the proper
exercise of rights by the consumer;
d) provision of adequate rights and means of redress; and
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e) involvement of consumer representatives in the formulation of social and economic

policies.
Article 3. Construction. The best interest of the consumer shall be considered in the
interpretation and implementation of the provisions of this Act, including its implementing rules
and regulations.
CHAPTER II
FOOD, DRUGS, COSMETICS AND DEVICES
Article 20. Declaration of Policy. The State shall ensure safe and good quality of food, drugs,
cosmetics and devices, and regulate their production, sale, distribution and advertisement to
protect the health of the consumer.
Article 21. Implementing Agency. In the implementation of the foregoing policy, the State,
through the Department of Health, hereby referred as the Department, shall, in accordance with
the provisions of this Act:
a) establish standards and quality measures for food, drugs, devices and cosmetics;
b) adopt measures to ensure pure and safe supply of foods and cosmetics, and safe,
efficacious and good quality of drugs and devices in the Country;
c) adopt measures to ensure the rational use of drugs and devices, such as, but not limited
to, banning, recalling or withdrawing from the market drugs and devices which are
unregistered, unsafe, inefficacious or of doubtful therapeutic value, the adoption of an
official National Drug Formulary, and the use of generic names in the labeling of drugs;
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d) strengthen the Bureau of Food and Drugs.

Article 22. Rules and Regulations on Definitions and Standards. Whenever in the judgment
of the Department such action will promote honesty and fair dealing in the interest of consumers,
it shall promulgate rules and regulations fixing and establishing a reasonable definition and
standard of identity, a reasonable standard of quality and/or reasonable standard of fill of
containers for food, drugs, cosmetics or devices.
Article 23. Adulterated Food. A food shall be deemed to be adulterated:
a) 1) if it bears or contains any poisonous or deleterious substance which may render it
injurious to health; but in case the substance is not an added substance, such food shall
not be considered adulterated under this clause if the quantity of such substance does not
ordinarily render it injurious to health;
2) if it bears or contains any added poisonous or deleterious substance other than
one which is (i) a pesticide chemical in or on a raw agricultural commodity, (ii) a
food additive, (iii) a color additive, for which tolerances have been established
and it conforms to such tolerances;
3) if it consists in whole or in part of any filthy, putrid or decomposed substance,
or if it is otherwise unfit for food;
4) if it has been prepared, packed or held under unsanitary conditions whereby it
may have become contaminated with filth, or whereby, it may have been rendered
injurious to health;

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5) if it is, in whole or part, the product of a diseased animal or of an animal which

has died other than by slaughter;
6) if its container is composed, in whole or in part, of any poisonous or
deleterious substance which may render the contents injurious to health; or
7) if it has passed its expiry date.
b) (1) If any valuable constituent has been, in whole or in part, omitted or abstracted
therefrom and the same has not been substituted, by any healthful equivalent of such
constituent;
2) if any substance, not a valuable constituent, has been added or substituted or in
part therefor;
3) if damage or inferiority has been concealed in any manner; or
4) if any substance has been added thereto or packed therewith so as to increase
its bulk or weight, reduce its quality or strength, or make it appear better or of
greater value than it is.
c) if it is, or bears or contains a color additive which is unsafe under existing regulations:
Provided, That the Department shall promulgate regulations providing for the listing of
color additives which are harmless and suitable for use in food for which tolerances have
been established;

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d) if it is confectionary, and it bears or contains any alcohol or non-nutritive article or

substance except harmless coloring, harmless flavoring, harmless resinous glass not in
excess of four-tenths (4/10) of one per centum (1%) natural gum and pectin: Provided,
That this clause shall not apply to a safe non-nutritive article or substance if, in the
judgment of the Department as provided by regulations, (1) such article or substance is of
practical functional value in the manufacture, packaging or storage of such confectionery,
(2) if the use of the substance does not promote deception of the consumer or otherwise
results in adulteration or mislabeling in violation of any provision of this Act, and (3)
would not render the product injurious or hazardous to health: Provided, further, That this
paragraph shall not apply to any confectionery by reason of its containing less than onehalf () of one per centum (1%) by volume of alcohol, derived solely from the use of
flavoring extracts, or to any chewing gum by reason of its containing harmless nonnutritive masticatory substance: Provided, finally, That the Department may, for the
purpose of avoiding or resolving uncertainty as to the application of this clause,
promulgate regulations allowing or prohibiting the use of particular non-nutritive
substances;
e) if it is oleomargarine, margarine or butter and any of the raw materials used therein
consists in whole or in part of any filthy, putrid or decomposed substance, or such
oleomargarine, margarine or butter is otherwise unfit for food;
f) if it has not been prepared in accordance with current acceptable manufacturing
practice established by the Department through regulations.

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Article 24. Regulation of Unprocessed Food. The provincial, municipal and city governments
shall regulate the preparation and sale of meat, fresh fruits, poultry, milk, fish, vegetables and
other foodstuff for public consumption, pursuant to the Local Government Code.
Article 25. Tolerance for Poisonous Ingredients in Food. Any poisonous or deleterious
substance added to any food shall be deemed to be unsafe, except when such substance is
required or can not be avoided in its production or can not be avoided by good manufacturing
practice. In such case, the Department shall promulgate regulations limiting the quantity therein
in such extent as he finds necessary for the protection of public health, and any quantity
exceeding the limits so fixed shall be deemed to be unsafe. In determining the quantity of such
added substance to be tolerated in different articles of food, the Department shall take into
account the extent to which the use of such article is required or can not be avoided in the
production or manufacture of such articles and the other ways in which the consumer may be
affected by the same or other poisonous or deleterious substance.
Article 26. Unsafe Food Additives, Exceptions for Conformity with Regulation. A food
additive, with respect to any particular use or intended use, shall be deemed unsafe unless:
a) it and its use or intended use conforms to the terms of an exemption for being solely
intended for investigational use by qualified experts; or
b) it and its use or intended use is in conformity with a regulation issued by the
Department prescribing the conditions under which such additives may be safely used.

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Article 27. Petition for Regulation of Food Additive. Any person may, with respect to any
intended use of a food additive, file with the Department a petition proposing the issuance of a
regulation prescribing the conditions under which such additives may be safely used.
The Department shall (1) establish a regulation prescribing, with respect to one or more proposed
uses of the food additive involved, (i) the conditions under which a food additive may be safely
used including, but not limited to, specifications as to the particular food, classes of food, in
which such additive may be used, (ii) the maximum quantity which may be used, or permitted to
remain in or on such food; (iii) the manner in which such additive may be added to or used in or
on such food, and (iv) any directions or other labeling or packaging requirement for such
additive deemed necessary to assure the safety of such use, and shall notify the petitioner of such
order and the reasons for such action; or (2) deny the petition and notify the petitioner of and the
reasons for such action.
The Department may, at any time upon his own initiative, issue a regulation prescribing, with
respect to any particular food additive, the conditions under which such additive may be safely
used and the reasons thereof, and cause the publication of the same.
Article 28. Effectivity of Regulations. The regulations promulgated under the preceding
articles shall take effect fifteen (15) days after its publication in a newspaper of general
circulation but the Department may stay such effectivity if, after issuance of such order, a
hearing is sought by any person adversely affected by such order.
CHAPTER IV
LABELING AND FAIR PACKAGING

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Article 74. Declaration of Policy. The State shall enforce compulsory labeling, and fair
packaging to enable the consumer to obtain accurate information as to the nature, quality and
quantity of the contents of consumer products and to facilitate his comparison of the value of
such products.
Article 75. Implementing Agency. The Department of Trade and Industry shall enforce the
provisions of this Chapter and its implementing rules and regulations: Provided, That with
respect to food, drugs, cosmetics, devices and hazardous substances, it shall be enforced by the
concerned department.
Article 76. Prohibited Acts on Labeling and Packaging. It shall be unlawful for any person,
either as principal or agent, engaged in the labeling or packaging of any consumer product, to
display or distribute or to cause to be displayed or distributed in commerce any consumer
product whose package or label does not conform to the provisions of this Chapter.
The prohibition in this Chapter shall not apply to persons engaged in the business of wholesale or
retail distributors of consumer products except to the extent that such persons:
a) are engaged in the packaging or labeling of such products;
b) prescribe or specify by any means the manner in which such products are packaged or
labeled; or
c) having knowledge, refuse to disclose the source of the mislabeled or mispackaged
products.

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Article 77. Minimum Labeling Requirements for Consumer Products. All consumer products
domestically sold whether manufactured locally or imported shall indicate the following in their
respective labels of packaging:
a) its correct and registered trade name or brand name;
b) its duly registered trademark;
c) its duly registered business name;
d) the address of the manufacturer, importer, repacker of the consumer product in the
Philippines;
e) its general make or active ingredients;
f) the net quality of contents, in terms of weight, measure or numerical count rounded of
to at least the nearest tenths in the metric system;
g) country of manufacture, if imported; and
h) if a consumer product is manufactured, refilled or repacked under license from a
principal, the label shall so state the fact.
The following may be required by the concerned department in accordance with the rules and
regulations they will promulgate under authority of this Act:
a) whether it is flammable or inflammable;
b) directions for use, if necessary;
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c) warning of toxicity;
d) wattage, voltage or amperes; or
e) process of manufacture used if necessary.
Any word, statement or other information required by or under authority of the preceding
paragraph shall appear on the label or labeling with such conspicuousness as compared with
other words, statements, designs or devices therein, and in such terms as to render it likely to be
read and understood by the ordinary individual under customary conditions of purchase or use.
The above requirements shall form an integral part of the label without danger of being erased or
detached under ordinary handling of the product.
Article 78. Philippine Product Standard Mark. The label may contain the Philippine Product
Standard Mark if it is certified to have passed the consumer product standard prescribed by the
concerned department.
Article 79. Authority of the Concerned Department to Provide for Additional Labeling and
Packaging Requirements. Whenever the concerned department determines that regulations
containing requirements other than those prescribed in Article 77 hereof are necessary to prevent
the deception of the consumer or to facilitate value comparisons as to any consumer product, it
may issue such rules and regulations to:
a) establish and define standards for characterization of the size of a package enclosing
any consumer product which may be used to supplement the label statement of net
quality, of contents of packages containing such products but this clause shall not be
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construed as authorizing any limitation on the size, shape, weight, dimensions, or number
of packages which may be used to enclose any product;
b) regulate the placement upon any package containing any product or upon any label
affixed to such product of any printed matter stating or representing by implication that
such product is offered for retail at a price lower than the ordinary and customary retail
price or that a price advantage is accorded to purchases thereof by reason of the size of
the package or the quantity of its contents;
c) prevent the nonfunctional slack-fill of packages containing consumer products.
For purposes of paragraph (c) of this Article, a package shall be deemed to be nonfunctionally
slack-filled if it is filled to substantially less than its capacity for reasons other than (1) protection
of the contents of such package, (2) the requirements of machines used for enclosing the contents
in such package, or (3) inherent characteristics of package materials or construction being used.
Article 80. Special Packaging of Consumer Products for the Protection of Children. The
concerned department may establish standards for the special packaging of any consumer
product if it finds that:
a) the degree or nature of the hazard to children in the availability of such product, by
reason of its packaging, is such that special packaging is required to protect children from
serious personal injury or serious illness resulting from handling and use of such product;
and

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b) the special packaging to be required by such standard is technically feasible,

practicable and appropriate for such product. In establishing a standard under this Article,
the concerned department shall consider:
1) the reasonableness of such standard;
2) available scientific, medical and engineering data concerning special packaging
and concerning accidental, ingestions, illnesses and injuries caused by consumer
product;
3) the manufacturing practices of industries affected by this Article; and
4) the nature and use of consumer products.
Article 81. Price Tag Requirement. It shall be unlawful to offer any consumer product for
retail sale to the public without an appropriate price tag, label or marking publicly displayed to
indicate the price of each article and said products shall not be sold at a price higher than that
stated therein and without discrimination to all buyers: Provided, That lumber sold, displayed or
offered for sale to the public shall be tagged or labeled by indicating thereon the price and the
corresponding official name of the wood: Provided, further, That if consumer products for sale
are too small or the nature of which makes it impractical to place a price tag thereon price list
placed at the nearest point where the products are displayed indicating the retail price of the same
may suffice.
Article 82. Manner of Placing Price Tags. Price tags, labels or markings must be written
clearly, indicating the price of the consumer product per unit in pesos and centavos.

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Article 83. Regulations for Price Tag Placement. The concerned department shall prescribe
rules and regulations for the visible placement of price tags for specific consumer products and
services. There shall be no erasures or alterations of any sort of price tags, labels or markings.
Article 84. Additional Labeling Requirements for Food. The following additional labeling
requirements shall be imposed by the concerned department for food:
a) expiry or expiration date, where applicable;
b) whether the consumer product is semi-processed, fully processed, ready-to-cook,
ready-to-eat, prepared food or just plain mixture;
c) nutritive value, if any;
d) whether the ingredients use are natural or synthetic, as the case may be;
e) such other labeling requirements as the concerned department may deem necessary and
reasonable.
Article 85. Mislabeled Food. A food shall also be deemed mislabeled:
a) if its labeling or advertising is false or misleading in any way;
b) if it is offered for sale under the name of another food;
c) if it is an imitation of another food, unless its label bears in type of uniform size and
prominence, the word "imitation" and, immediately thereafter, the name of the food
imitated;

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d) its containers is so made, formed, or filled as to be misleading;

e) if in package form unless it bears a label conforming to the requirements of this Act:
Provided, That reasonable variation on the requirements of labeling shall be permitted
and exemptions as to small packages shall be established by the regulations prescribed by
the concerned department of health;
f) if any word, statement or other information required by or under authority of this Act to
appear on the principal display panel of the label or labeling is not prominently placed
thereon with such conspicuousness as compared with other words, statements, designs or
devices in the labeling and in such terms as to render it likely to be read and understood
by the ordinary individual under customary conditions of purchase and use;
g) if it purports to be or is represented as a food for which a definition or standard of
identity has been prescribed unless:
1) it conforms to such definition and standard; and
2) its labels bears the name of the food specified in the definition or standards,
and insofar as may be required by such regulations, the common names of
optional ingredients other than spices, flavoring and coloring, present in such
food;
h) if it purports to be or represented as:
1) a food for which a standard of quality has been prescribed by regulations as
provided in this Act and its quality fall below such standard, unless its label bears
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in such manner and form as such regulations specify, a statement that it falls
below such standard; or
2) a food for which a standard or standards or fill of container have been
prescribed by regulations as provided by this Act and it falls below the standard of
fill of container applicable thereto, unless its label bears, in such manner and form
as such regulations specify, a statement that it falls below such standard;
i) if it is not subject to the provisions of paragraph (g) of this Article unless its label bears:
1) the common or usual name of the food, if there be any; and
2) in case it is manufactured or processed from two or more ingredients, the
common or usual name of such ingredient; except the spices, flavorings and
colorings other than those sold as such, may be designated as spices, flavorings
and colorings without naming each: Provided, That to the extent that compliance
with the requirement of clause (2) of this paragraph is impracticable or results in
deception or unfair competition, exemptions shall be established by regulations
promulgated by the concerned department of health;
j) if it purports to be or is represented for special dietary uses, unless its label bears such
information concerning its vitamin or mineral or other dietary properties as the concerned
department determines to be, or by regulations prescribed as necessary in order fully to
inform purchasers as its value for such uses;

29 | P a g e

k) if it bears or contains any artificial flavoring, artificial coloring, or chemical

preservative, unless it bears labeling, stating that fact: Provided, That to the extent that
compliance with the requirements of this paragraph is impracticable, exemptions shall be
established by regulations promulgated by the concerned department. The provisions of
this paragraph or paragraphs (g) and (i) with respect to the artificial coloring shall not
apply in the case of butter, cheese or ice cream.
The mentioned Republic Act has an effect on the business as to how they will provide their
products to their customers. It must be of quality and it should not be hazardous to the health of
its consumers. The same law also mention on how they should operate, meaning they must be
responsible enough to price their products and to label it properly, especially that they are in the
food business which can affect the well being of a person.
IV.4

TECHNOLOGICAL DEVELOPMENT

4.4.1 New Technology

Since we are living in a fast pacing environment, the company must develop its technology to
have an edge against its competitors. They should update their website so that people could
place an order online. They should also develop mobile application in order for the people to
place their orders whenever and wherever they are. By improving these aspects, the
customers would be able to reduce their waiting time because they could place their orders
ahead of time. These new technologies will also have an important role for the market
development of the company because this will help in promoting the company.

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B. Industry Analysis and Competitor Analysis

4.5 INDUSTRY ANALYSIS

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Force:
Bargaining power of supplier
Rivalry among competitors
Threats of new substitute
Bargaining power of buyer

Degree of Force:
High
High
High
Low

4.5.1 MICHAEL PORTERS FIVE FORCE ANALYISIS

4.5.1.1 Rivalry among competitors (HIGH)
In the food industry, especially in the franchising business, rivalry among competitors are high
because many people want to establish their own business and to generate profit. In the
franchising world, you can set up your own business that already has an establish name because
it is a strength that could be use in order to dominate the market. For the Company, competition
is high because many franchising business can compete in their market in terms of the nature of
their product. Since their product is usually a pasalubong, people have a variety of choices to
pick from. The colonialisim of the Filipino people has an impact on the way they choose what
they want. Sometimes people would consider imported products because it is more popular. For
the industry of the company, having a competitor which provides for imported product makes
the competition high and stiff.
4.5.1.2 Threats of substitute products (HIGH)
Threats of substitute product is high because in the food industry, if a company could provide the
market with food which is new or enticing to the taste of the people, then it could be a substitute
for the product of the company. For example, the given competitor of the company has a
different product from our company. People may shift to other product due to the variety of food
that they could choose from the market. The demand for the product could also be a factor that
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could affect this force. Another example is that the demand for bibingka is high during Christmas
season. During this time, people will choose bibingka more as against to brownies or donut due
to its seasonality. But when the Christmas season end, the demand for bibingka will slowy
decrease, thus people could shift to substittue product.
4.5.1.3 Bargaining Power of Supplier (HIGH)
For the company, the bargaining power of the supplier due to the nature of its product. The main
product for making bibingka is rice, coconut milk and sugar. All of these are abundant in the
country, and usually the company gets its supplies from local suppliers because it is cheaper
compared to imported ones. The sellers has the power to set the prices, meaning that their
bargaining power is high. Their power becomes higher when calamities such as typhoons and
earthquakes hit the country. For example, the recent infestation sufferd by the coconut farmers
affected the production of products from coconut trees. This includes the coconut milk, which is
a main ingredient in making bibingka. The suppliers has the power to set the price high in order
to cope up with this kind of situation. The company, on the other, has no choice but to accept the
price hike or find other suppliers.
4.5.1.4 Bargaining Power of Buyer (LOW)
For the industry, the bargaining power of buyer is low because the buyers could choose from the
variety of products available in the market. They have the discretion to choose from bibingka up
to other products. The company is limited from monopolizing the market because of the taste and
preferences of the people. Some people will tend to pick from more popular desserts than the
local delicacy, which in case is bibingka. The people are not hindered to pick from what they
want and the freedom of choice is present among the people. The company must overcome the
33 | P a g e

bargainig power of the buyer by making sure that the people will choose their product over the
products of their competitors.
4.5.1.5 Threats of New Entrants (MODERATE)
The threat of new entrant is moderate considering that a person will need money in order to set
up his or her own franchising business. It is not low because many people has the capacity to
give up 500,000 1,000,000 pesos in order to set up their own business. On the other hand, it is
no high because law and regulations could prevent other companies or other people from setting
up their own business. Penetrating the food industry means new innovation and new gimmicks in
order to have a share in the market, or for the better to capture the market of the competitor.
Since the company is already an established company, then the entrants of new entrants will only
moderately affect the position of the company in the industry and the image of the company in
the market.

4.6 COMPETITOR ANALYSIS

4.6.1 Brownies Unlimited (Desserts Plus Incorporated)
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Brownies Unlimited
Brownies unlimited is a subsidiary of the company Dessert Plus Incorporated. They provide the
chewy, chocolately, gooey or nutty brownies here in the country. From one store in 1989,
Brownies Unlimited have 60 companyowned Brownies Unlimited stores, and they are still
growing. Whether as a personal treat or a gift, Their brownies always surprise and delight
customers and is considered as one of the most popular pasalubong here in the country. The
products of the company are brownies, cupcakes, pastries and munchies.
Gross Profit Ratio
Year
2010
2011
2012

Gross Profit Ratio = Gross Profit/Net Sales

89,067,567/287,505,882 = .31
58,918,091/281,719,602 = .21
58,088,208/285,646,904 = .20

The table above shows the gross profit ratio of the Brownies Unlimited for the years ended 2010,
2011 and 2012. The company is experiencing a decline in its GPR, with the greatest discrepancy
35 | P a g e

between 2010 and 2011. The GPR for the year 2010 was .31 and it went down to .21 in 2011.
However, even though it declined on the year 2012, it was just a small amount compared to the
amount between 2010 and 2011. By looking and analyzing at these figures, we can say that our
company is ahead against this company in terms of gross profit. It means that our company is
more effective in terms of earning every peso which is left over after the business has paid to its
goods as against to this company.

4.6.2 Mister Donut

Mister Donut is a food venture that provides the market with the tasties donuts out there. From
the streets of Boston, USA in 1955, Mister Donut reached the Philippines in 1982 and is now one
of the fastest growing food brands in the country. Currently, they have over 2,000 shops
nationwide. They sell thousands of donuts and other baked products each day and continuously
bring smiles to millions of Filipinos. The initial investment cost begins at 200,000 pesos, which
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includes the following: Franchise fee at Php 50,000.00, showcase cost, uniform (6 sets),
smallwares, POS tablet, cleaning kit and supply, training vouchers and initial product inventory.
The total investment cost may vary depending on the type of shop to be established. Security
deposit, mobilization and design fees are not yet included in the package.
Gross Profit Ratio:
Year
2010
2011
2012

Gross Profit Ratio = Gross Profit/Net Sales

89,067,567/287,505,882 = .31
58,918,091/281,719,602 = .21
58,088,208/285,646,904 = .20

4.7 COMPETITIVE PROFILE MATRIX (CPM)

Company A
Critical Success Factors

Weight Rating

Company B

Company C

Score

Rating

Score

Rating

Score

Advertising

0.15

0.30

0.30

0.45

Product Quality

0.20

0.60

0.60

0.60

Price Competitiveness

0.10

0.30

0.20

0.40

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Management

0.10

0.30

0.30

0.30

Financial Position

0.10

0.30

0.30

0.40

Customer Loyalty

0.15

0.30

0.45

0.45

Global Expansion

0.05

0.05

0.05

0.15

Market Share

0.15

0.30

0.30

0.45

TOTAL

1.00

2.45

2.50

3.20

Critical Success Factors:

1. Advertising Company C (Mister Donut) has a greater advertising investment compared
to local Company A (Bibingkinitan) and local Company B (Brownies Unlimited). Since
Mister donut is an already established company not only here in the Philippines but also
outside the country, it already has the capacity to finance its advertising expense in order
for them to make their company known in the market
2. Product Quality Companies A, B, and C was tied when it comes to product quality. The
three companies have different products, namely bibingka, brownies and doughnut
respectively. They are tied because they provide the market with different types of
pasalubong products which is generally what customers want and what they look for.
Bibingkinitan must find ways to take the lead and provide other local delicacies.
3. Price competitiveness Again, Company C has the edge when it comes to price
competitiveness. A dozen of donuts has a price of 132 pesos, compared to 6 pieces of
bibingka which is 120 pesos and 128 pieces of brownies for pesos. Company C won in
the category considering their price and in terms of quantity of products which can be
bought at that price. However, the price of bibingka of Company A is lower compared to
38 | P a g e

other bibingkas being sold by other vendors, which means that they are still competitive
when it comes to pricing of the same product.
4. Management The three companies are tied when it comes to its management because
they are able to efficiently enter the market here in the country thru its effective
management. However, since Company C is operating internationally, they must have a
complex management in order to manage its affairs and operations.
5. Financial Position Company C has the edge when it comes to Financial Position
because they cater not only their market in the Philippines but also their market
internationally. Unlike Company A and B, they only cater here inside the country thats
why they have low rating in financial position as against with Company C
6. Customer loyalty Today, most people would look for doughnuts or brownies to buy as
pasalubong to their love ones. Since Companys A product is in demand only during
the Christmas season, its loyal customers shift to substitute products when this season
ends. It must find ways to keep its loyal customers loyal all throughout the year and not
only during this kind of season.
7. Global Expansion Company C takes the lead when it comes to global expansion. The
company already has branches all over the world, which means that it has a wider range
of target market compared to its local competitor A and B. Company A should use its
opportunity to expand internationally to have a share in the market already penetrated by
Company C
8. Market Share - Company C is upfront against Company A and B. Since Donuts are more
popular than Bibingka and Brownies, consumers will tend to choose the former over the
latter. This is the reason why Company C has the largest share in the market.
C. Summary and Conclusion
4.8 EXTERNAL FACTOR MATRIX (EFE)
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Key External Factors

Weight Rating W.S

Opportunitites

1. Dominating the market in terms of providing

.18
the people with this local delicacy
2. Overseas expansion in other countries starting
.18
with Jakarta, Singapore, Hongkong and Las Vegas
3. Our target market is the C and D markets which
.10
represents the greatest percentage in the
population
4. Expanding the range of the company thru opening
.06
new jobs and franchises
5. Providing other Filipino delicacy (such as putobumbong) .05

3
3

.54

.30

.12

Threats
1. Innovation of other food business can pull our
Customers away from us
2. Creation of other unique products
3. Entry of foreign brands which are more popular
than the company
4. Inflation rate which can affect the
purchasing power of the people
5. Unforeseen calamities which can damage our
raw materials in making our products
Total

.54

.05
o

.07

.14

.10
.20

3
2

.30
.40

.03

.03

.03

1.00

.03

2.45

The total weighted score of the External Factor Evaluation Matrix for bibingkinitan is 2.45. The
weight of each external factors are graded in any amount for as long as it will sum to a total of 1.
On the other hand, the ratings were rated from 1-4, 4 being the strongest and 1 being the weakest
factor. Dominating the market in terms of providing people with this local delicacy and by
diversifying into other local delicacies have the highest weight in opportunities with a weighted
score of .18 each. The first three opportunities enumerated above earned the highest ratings with
a rate of 3, meaning that these are the top opportunities to expand the range of the market. As to
40 | P a g e

the threats, entry of foreign brands poses the biggest threat for the company, earning a weighted
score of .2 and rating of 2. Since the Filipinos are known as imported lover people, it must
compete with imported products in order to survive in the market.
Opportunities:
1. Dominating the market in terms of providing the people with this local delicacy Being
the leading bibingka chain in the Philippines, the company already has a head start
compare to other food business who wants to sell the same kind of product. The company
is also the sole food venture which provides this local delicacy, which is an opportunity to
conquer the market by capturing the taste of the Filipinos.
2. Overseas expansion in other countries starting with Jakarta, Singapore, Hongkong and
Las Vegas - As mentioned in earlier in the external analysis, 1 in every 75 people in the
world is a Filipino. With this statistics, we can say that it is a good opportunity for the
company to expand in other countries considering that there are also Filipinos who are
craving for Filipino foods whenever they are outside the Philippines. Oversies expansion
is also an opportunity for the company in order to compete side by side with other brands.
They also already captured the C and D market in the country, which occopies the largest
portiong of the socioeconomic in the country thats why there is already a need to go
internationally
3. Our target market is the C and D market which represent the greatest percentage in the
Population Capturing the C and D market is an opportunity to monopolize the market in
terms of providing local delicacy. New entrants will find it as a threat because the
company already established its product in the largest market segment in the population.
Because of this, the new players will find it hard to enter the same market whilst
providing also the same product.
41 | P a g e

4. Expanding the range of company thru opening new jobs and franchises The increase in
the population of the country will become an opportunity for the company to open new
jobs and franchises. Since the country increased in population, it means that more people
are capable of working and thus the company will not find it hard to hire new employees.
5. Providing other Filipino delicacy such as putobumbong For the company, this will
become its greatest opportunity because it can provide again the people with another
local delicacy which is available only during the holiday season. This opportunity is for
those people who crave for such seasonal delicacy. Since bibingka and putobumbong is
seasonal only, providing these delicacies all through out the year will become an
opportunity for the company to satisfy the cravings of the people.
Threats:
1. Innovation of other food business can pull our customers away from us. Innovation
poses a threat to any company. If other company found out a way to innovate their
products to become more enticing to the people, then it can compete with our trademark
small bibingka which can pull our customers away from us
2. Creation of other unique product. Creation of other unique product also poses a threat
because it can compete with the uniqueness of our product. Having a product which is
unique and can compete with the affordability of our pricecan capture the curiosity of the
people, and it can also capture our target market.
3. Entry of foreign brands which are more popular than the company Since the name of
the company is known only in some other parts of the Philippines, entry of popular
brands from other countries will pose a threat for the company. Branding is a strategic
way in order to capture the market. If established foreign brands entered the country, then
it can compete in the market and it will become a threat in the succes of the business.

42 | P a g e

4. Inflation rate which can affect the purchasing power of the people Inflation rate means
that the price of comodities continue to rise, resulting into a weak purchasing power of
the people. Having a weak purchasing power can hinder not only our customers but also
prospective customers to buy our prodcuts, affecting our sales which can have an impact
on the growth and expansion of the company.
5. Unforeseen calamities which can damage our raw materials in making our products.
Unforeseen calamities is a threat for the company because it can affect in the production
of our product. Typhoons, for example, is typical in the country especially in Luzon.
Since most of the rice are produced in Luzon, then Typhoons could damage the rice fields
which in effect can cause a shortage in supply of our main ingridient in making bibingka.

V.
Company Analysis
The Company: Bibingkinitan ( Philippine FoodAsia Corporation)

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Bibingkinitan is one of the brands of Philippine FoodAsia Corporation. Bibingkinitan was

established last 2006 and has grown into one of the leaders in its market in terms of revenues,
market share and market presence. To date, it already has over 200 stores spread in the
Philippines and it is currently branching out to Jakarta, Indonesia. The company is located at
2nd floor UNIOIL Center, Commerce corner Acacia Ave, Madrigal Business Park, Muntinlupa
City. Franchasing for Bibingkinitan is one of the prime movers in the Philippine Franchise
Industry through its innovative and responsible approach to franchising. 70% of total
Bibingkinitan stores are company owned and operated wholly by Food Asia Corporation, and the
remaining 30% are operated by Franchisees.
5.1 MARKETING
Bibingkinitan is one of the prime movers in the Philippine Franchise Industry through its
innovative and responsible approach to franchising. Bibigkinitan is considered as one of the
fastest growing franchising here in the country with an initial investment of 200,000 pesos. But
according to the study by market research firm Euromonitor International, Mister Donut
emerged as the leading kiosk brand in the country with an initial investment of 200,000 pesos.
Based on the price of its initial investment, Bibingkinitan is one of the best choice for investing
money in the food cart industry. Included also in its franchise package deal is the equipment
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used for production which will cost at around 200,000 php. Estimated cost for renovation and
construction is around 300,000 to 500,000 php depending on the size of the store. Security
deposit cost is 100,000 php. The total estimated cost of investment is around 500,000 to
1,500,000 php. The company prefers areas like malls, hospitals, offices, gas stations and free
standing roadside areas to set up the business because these are the places where people usually
go to. According to Richard Sanz, founder of Bibingkinitan, he handled the marketing for the
brand even if he doesnt have any marketing background. He is the one who trains his staff and
that he is very hands down to the last detail of the business.
5.2 FINANCIAL FUNCTIONS
5.2.1 Liquidity Ratio
5.2.1.1 Current Ratio
Year

Current Ratio = Current assets/

2010

Current Liabilities
7,872,859.8/13,695,392.18 = .

2011

57
9,730,180.11/14,043,966.59 = .

2012

69
10,326,510.40/16,560,690.50
= .62

The current ratio expresses the relationship of current assets to current liabilities, computed by
dividing current assets by current liabilities. A high currrent ratio suggests a strong liquidity
position and an ability to meet current obligations. For many users, the rule of thumb is that a
current ratio of 2:1 will be a guideline to evaluate a companys debt-paying ability. The current
45 | P a g e

ratio of the company for the year 2010 shows a ratio of .57 which is low compared to the rule of
thumb. The company may find it hard to meet its current obligation. The ratio for the year 2011
improved, climbing to a ration of .69. This means that the company was able to increase its
current assets in order to increase the debt paying ability of the company. The ratio dropped
down to .07 places, giving them a ratio of .62. This means that for that year its ability to pay its
current debt was lessen.
5.2.1.2 Quick Ratio
Year

Quick Ratio = Quick Assets

2010 (January 1, 2012)

assets/ Current Liabilities

4,416,070.2/13,695,392.18 = .

2011

32
4,503,151.35/14,043,966.59 = .

2012

32
3,865,919.8/16,560,690.50 = .
23

Quick ratio is a measure of a companys immediate short-term liquidity. It differs from current
ratio because it exlcude the merchandise inventory account. A rule of thumb is that the quick
ratio should have a value equal to or higher than 1.0 to conclude that the company is unlikely to
meet immedieate liquidity problems. The companys quick ratio for the year 2010 is .32.
Considering the rule of thumb of 1, the companys ability to convert into cash its quick asset is
low. The same is true for the following year 2011. The case worsen for the year 2012 because it
goes down to .23. The company may find it hard to meet immediate liquidity problems and it can
pose a problem for them in the short run.

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5.2.1.3 Accounts Receivable Turnover

Year

Net Credit Sale/Ave. Accounts

2010

Receivable
53,210,288.80/985,678.90

2011

53.98 times
75,136,856.72/1,561,209.05

2012

48.13 times
116,720,460.71/1,512,799.05 =
77.16 times

Accounts Receivable Turnover shows how many times a company can collect its receivables
from its customers. A high A/R turnover means that the company is highly liquid and it can have
cash in a short span of time. For the year 2010, the company was able to collect its accounts
receivable 53.98 times for that year. It decrease by 5.85 on the following, meaning that they
arent able to collect efficiently its receivables from its customers. The year 2012 is a different
story becase they jumped from 48.13 times up to 77.16 times, meaning that the managemet
somehow find ways to have a more efficient and rapid collection of receivables.
5.2.1.4 Average Collection Period
Year

Average Collection Period =

365/Accounts

2010
2011
2012

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Receivable

Turnover
365/53.98 = 6.76 days
365/48.13 = 7.58 days
365/77.16 = 4.73 days

5.2.1.5 The Average Collection Period

This shows the average time required to collect account receivable, obtained by dividing the 365
days by accounts receivable turnover ratio. For the year 2010, the company was able to collect its
receivable in 6.76 days. This is effective assuming that the company has a credit term of 10 days.
It increased in the year 2011, having a ratio of 7.58 days. Unfortunately for the company, it
decreased about a half on the year 2012. This means that for the year 2012, the company has a
poor collectiom of accounts receivable for that year.
5.2.1.6 Inventory Turnover Ratio
Year

Cost of Goods Sold/Average

2010

Inventory
21,985,608.85/3,456,789.60

2011

6.36 times
31,557,479.82/4,341,909.18

2012

7.27 times
46,884,497.66/5,484,401 = 8.54
times

Inventory turnover ratio is computed by dividing the cost of goods sold by the average inventory.
Average inventory is the average of the beginning and ending inventory. If a company is holding
excess inventory, it means that the funds are being tied up in inventory that could have been
invested elsewhere for an income. In addition, there will be high carrying costs to store the good
and the risk of obsolesence also exist. The inventory turnover of the company is 6.36, 7.27, and
8.54 for the years 2010, 2011, and 2012 respectively. This indicates decrease in the stocking of

48 | P a g e

goods thereby lessening the funds tied up in inventory as well as carring costs and risk of
obsolescence.
5.1.2.7 Average Days in Inventory
Year

Average Days in Inventory =

2010
2011
2012

365/Inventory turnover ratio

365/6.36 = 57.39 days
365/7.27 = 50.21 days
365/8.54 = 42.74 days

The average days in invetory is computed the same as the average collection period, the
difference is in the dividend. The dividend for average days in inventory is the computed ratio in
the inventory turnover ratio. This shows the liquidity of invetory and inventory management. The
ratio for the year 2010 is 57.39 days. It gradually decrease until the year 2012, for the given ratio
was 50.21 days and 42.74 days respectively.
5.1.2.8 Operating Cycle
Year

Operating Cycle = Average

collection period + Average

2010 (January 1, 2012)

2011
2012

days in inventory
6.76 + 57.39 = 64.15 days
7.58 + 50.21 = 57.79
4.73 + 42.74 = 47.47

The days in operating cycle shows the number of days the company was able to convert its
invetory into cash. The company was able to convert its inventory in just 64.15 days in 2010. Its

49 | P a g e

ability to convert inventory into cash decreased as years gone by, giving them 57.79 days and
47.47 days for the years 2011 and 2012 respectively.
5.2.2Leverage Ratio
5.2.2.1 Debt to Total Assets
Year
2010 (January 1, 2012)

Total Liabilities/Total Assets

14,695,392.18/20,567,891.30

2011

= .71
15,043,966.59/22,004,651.01

2012

= .68
17,560,690.50/25,017,380.90
= .70

Debt to total asset ratio shows the percentage of total assets provided by creditors. Preferably, the
creditors would prefer a low debt ratio since there is a greater cushion of buffer for creditor
losses if the firm goes bankrupt. For the year 2010, its debt ratio was .71. this is slightly high
which means that it has a greater risk that it may not be able to pay its maturing obligation. The
year 2011 was good for the company in terms debt ratio because it is lower compared to last
years ration. The compay has a ratio of .68 for that year. Unfortunately, it is higher during the
year 2012, having a ratio of .70. The company may find it hard to find creditors that are willing
to lend them money because of its high debt ratio for the past 3 years.
5.2.2.2 Debt to Equity
Year

Debt to Equity Ratio = Total

Liabilities/Total

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2010 (January 1, 2012)

ShareholdersEquity
14,395,392.18/5,872,499.12

2011

2.45
15,043,966.59/6,960,684.42

2012

2.16
17,560,690.50/7,456,690.40

2.36

The debt/equity ratio is a significant measure of solvency since a high degree of debt in the
capital structure may make it difficult for the company to meet interest charges and principal
payments at maturity. The risk of running out of cash under conditions of adversity goes high
with a debt position. The company has an excessive debt wich can result in less financial
flexibility since they will fnd it hard to obtain funds during tight money market. The ratios for
the years 2010 to 2012 are 2.45, 2.16 and 2.36 respectively.
5.2.3 Profitablity Ratio
5.2.3.1 Profit Margin Ratio
Year
2010 (January 1, 2012)

Profit Margin Ratio/Net Sale

214,449.60/53,210,288.80 = .

2011

004
761,728.81/75,136,856.72 = .

2012

010
340,314.52/116,720,460.71 = .
003

51 | P a g e

Profit margin ratio is an important measure of performance since it indicates profitability

generated from revenue. It also provides possilble hints on a companys pricing and cost
structure. For the year 2010, the company has a ratio of .004. It increased by .006 during 2011
and it decreased by .007 during 2012.
5.2.3.2 Gross Profit
Year

Gross Profit Ratio = Gross

2010 (January 1, 2012)

Profit/Net Sale
31,224,679.95/53,210,288.80

2011

= .59
43,579,376.90/75,136,856.72

2012

= .58
69,835,963.05/116,720,460.71
= .60

The gross profit margin reveals the percentage of each peso left over after the business has paid
for its goods. The higher the gross profit earned, the better. Gross profit is the excess of net sales
over cost of goods sold. As shown above in the table, there is a slight increase and decrease in
the gross profit ratio of the company. The company has a ratio of .59, .58 and .60 for the years
2010, 2011 and 2012.
5.2.3.3 Operating Expenses to Sales
Year

Operating Expenses to Sales =

2010 (January 1, 2012)

Operating Expenses/Net Sale

30,906,976.85/53,210,288.80

2011

= .58
42,491,191.60/75,136,856.72

52 | P a g e

2012

= .57
69,349,799.45/116,720,460.71
= .59

The operating expenses to sales ratio measures the costs incurred to support each peso of sales. It
is computed by dividing operating expenses total by net sales. There is a slight change in the
operating expense to sale ratio of the company, as shown in the table above
5.2.3.4 Return on Total Assets
Year

Return on Total Asset = Total

Assets/Total

2010 (January 1, 2012)

2011
2012

Shareholders

Equtiy
214,449.60/20,567,891.30 = .01
761,728.81/21,285,833.55 = .04
340,314.52/25,017,380.90 = .01

The return on total assets

indicates the efficiency with

which management has used its available resources to generate income. This is computed by
dividing the profit by the total assets. The year 2010 has a ratio of .01. The year 2011 has a ratio
of .04 and the year 2012 has a ratio of .01.
5.2.3.5 Return on Shareholders Equity
Year
2010 (January 1, 2012)
2011
2012

Profit/Shareholders Equity
214,449.60/5,872,499.12 = .04
761,728.81/6,960,684.42 = .10
340,314.52/7,456,690.40 = .005

The ratio measures the rate of return earned on shareholdersinvestment. This is obtained by
dividing the net income by the total shareholders equity. There is an unstable increase and drop

53 | P a g e

in the return earned by the owners of the company, from .04 in 2010, .10 in 2011 and .005 in
2012.
5.2.3.6 Asset Turnover
Year

Asset

Turnover

Net

2010 (January 1, 2012)

Sales/Ave. Total Assets.

53,210,288.80/20,567,891.30 =

2011

2.59
75,136,856.72/21,286,271.16 =

2012

3.53
116,720,460.71/23,151,607.23
= 5.04

The asset turnover ratio measures how efficiently a company uses its assets to generate sales. It is
determined by dividing net sales by average total assets for the period. The resulting number
shows the peso of sales produced by each peso invested in assets. For the year 2010, the
company was able to generate 2.59 for every peso it had invested in assets. The value constantly
increase during 2011 up to 2012. The salse generated for every peso ot had invested in assets was
3.53 and 5.04 respectively.
5.3 MANAGEMENT
The management of Bibingkinitan lead by its founder Engr. Richard Sanz is obviously
successful, owning a total of 70% of Bibingka stores nationwide and employing 200 people
directly and another 200 at the various Bibingkinitan franchises. Each store by bibingka usually
has personnel of 1-2 persons. Since its foundation, the company improved dramatically,
extending its branch on the southern part of the country and also starting its expansion
54 | P a g e

internationally. According to Sanz, Innovation is part of our strategy and they use this quote as
a guide in order to help the business grown and to achieve what it is today.
5.4 RESEARCH AND DEVELOPMENT
Recent and developments for the company was the integration of an inventory tool to its
information facility that cost them for about a million pesos. The company purchased SAP
business One which is attached in its IT infrastructure. SAP Business Online is designed to
integrate the various systems of a business, providing a single comprehensive and functional
solution for the process needed to run a business such as finance lease, sales customers, ecommerce, inventory and operation. It allowed the company to transfer data from its
Bibingkinitan outlets to the central office with less human intervention, thus ensuring greater
accuracy. Sanz also added the Business plus in order to stay connected to the office. Business
plus is the customizable postpaid plan offered by Globe Business that allows entreprenuers to
choose the mobile services that best suit them and pay only for what they needed. It comes with
various tack-on services such as unlimited calls, texts, mobile browsing and Business loop, as
well as Duo and SuperDuo.
5.5 REVENUE AND SALES
Revenue of the company for the years 2010 to 2012 coming from its Statement of
Comprehensive Income from its Financial Statement is shown as follows:
Year
2010
2011
2012

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Sales
53,210,288.80
75,136,856.72
116,720,460.71

As stated above, the revenue of Bibingkinitan is constantly increasing as years pass by. We can
see that for the last 2 years, it had doubled its sales. The company earned 53,210,288.80 pesos
during the year 2010 and it increase by almost 100 % during the year 2012. It has 75,136,856.72
and 116,720,460.71 pesos of revenue for the years 2011 and 2012 respectively.

5.6 INTERNAL FACTOR EVALUATION MATRIX (IFE)

Key Internal Factors

Weight Rating

Strenghts

1. Uniqueness of their product

.15

.60

2. Affordable Price

.20

.60

3. Conversion of some of its stores into bigger cafetype stores with seating areas for our customers
4. Variation of bibingka

.05

.05

.05
.10

5. Using of Business Plus (Globe business) to stay

connected to the office

.05

.15

Weaknesses
1. Large initial investment can hinder the expansion of
the company
.05
56 | P a g e

.15

W.S

2. Lack of advertisement, especially brochures and

leaflets in their stalls.
3. Weak distribution networks.
4. Seasonal product
5. Other people tend to choose less the
local delicacies
Total

.10
.05
.20

3
3
4

.30
.15
.80

.10

.20

1.00

3.10

The Internal Factor Evaluation (IFE) Matrix earned a total weighted score of 3.10. For the
company, the uniqueness of its product and its affordability is its biggest strength. It earned them
a weighted score of .15 and .20 respectively. Both Strengths also have the highest rating with a
rating of 4 for each internal factor. On the other hand, its biggest weakness the seasonality of its
product. It has a weight and rating of .20 and 4 respectively. The company must find ways to
attract its customers to purchase their product all through out the year even if the demand for
their products rises only when the Christmas season is approaching.

Strengths:
1. Uniqueness of their product Bibingka offers bibingka which is smaller than the
traditional size of bibingka. The uniqueness of the apperance of their product is a strength
of the company because it is a means to open the curiosity of their market. Opening the
cuiriuosity of a person will enable him to look for answers. Since most people are not
used to a small bibingka, then they will have look for a vendor which offers a small
bibingka.

57 | P a g e

2. Affordable Price The price of their products is much lower compared to the price of the
products of their competitors. This is another strength of the company because they are
able to sell their product at a low price but still able to earn profit given that price. They
are also able to attract more customers because of the low price of their products. Having
an affordable price at todays world is a big strength for any company.
3. Conversion of its stores into bigger cafe-type stores with seating areas for our customers
The conversion of their stores into bigger cafe-type stores is also a strength of the
company because having a bigger place means the company could accomodate more
people. Accomodation of more people means that the company will have more customers
who will patrionize their products, which is a good thing for any business. They could
provide people with a relaxing and smooth atmosphere which will become a reason for
the people to visit their stores frequently.
4. Variation of bibingka The company provides for variation in taste of their bibingka.
Having a variety to choose from is a strength because they are giving their customers
more freedom to pick what they want. They are also providing their customers with a
product in which is not yet offered in the public, thus they are gaining an edge as against
to their competitors.
5. Using of Business Plus (Globe business) to stay connected to the office The use of
Globe business is a strength of the company because they are able to have an update of
what is happening inside and outside the company. They are able to check if the company
is operating well and if they are meeting the target of the company. The use of such
technology enables the owners to have an online view of the company anytime of the day.
Weaknesses:

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1. Large initial investment can hinder the expansion of the company Having a large initial
investment could scare away investors thats why it is a weakness for the company.
Compared to other companies, the initial investment in our business is quiet high
compared to them. The company must find ways to lower the amount that investors
would pay in order to start up their own franchising business. It can hinder the expansion
of the company because prospective investors from other parts of the country could be
turned off because of the large capital needed to start the business.
2. Lack of advertisement, especially brochures and leaflets in their stalls For the company,
having lack of advertisement is a major weakness for them because they are not reaching
the people with the news and updates about their company. Advertisement is a major
factor in a success of a business because through it, we are spreading the information not
only about the products but also about the operation of the company. As against to other
competitors, their advertisement is a big factor on the promotion of the company, thats
why we are left behind in terms of advertisment.
3. Weak distribution networks Having a weak distribution network is a weakness for the
company because its raw materials may not reach its destination due to the weakness of
its distribution lines. This is a weakness that should be treated by the management in
order to minimiz the delay in the delivary of their products. Management must improve
their networks to minimize the risk of loss for every delay that they will encounter during
delivery.
4. Seasonal product The seasonality of the product of the company is a weakness because
the demand for the product is unstable. The demand for the product is high only during
its season, and it declines after the season. For the company it is a weakness because the
seasonality of the product affects the taste and prefences of the buyers. Unlike the

59 | P a g e

products of its competitors, they are prefered all year long compared to the product of the
company, which can affect the sales of the business.
5. Other people tend to choose less the local delicacies It is a weakness because the
company must overcome with ways in order to satisfy the taste and preferences of its
consumers as compare to other products. Internally, it must find ways to innovate its
product so that it could compete with others.

60 | P a g e

VI.

Strategy Formulation

6.1 SWOT MATRIX

Strengths:
1. Uniqueness of
products
2. Affordable Price
3. Conversion of some of
its stores into bigger
caf-type stores with
seating areas for our
customers
4. Variation of bibingka
5. Using of Business Plus
(Globe business) to
stay connected with
the office

Opportunities:
1. Dominating the
market in terms of
providing the
people with
bibingka
2. Overseas
Expansion in other
countries starting
with Jakarta,
Singapore,
Hongkong and Las
Vegas.
3. Our target market
is the C and D
market which
represents the
greatest percentage
61 | P a g e

SO Strategies:
1. Diversifying of
products with
affordable price
(S1,O5)
2. Day to day update of
the business in case of
expansion outside the
country(S5,O2)
3. Cafe-type stores mean
bigger space for
customers, which also
means more
customers(S3,O3)

Weaknesses:
1. Large initial
investment can hinder
in the expansion of the
company (Php
500,000-1,500,000)
2. Weak distribution
networks
3. Seasonal Product
4. Other people tend to
choose less this local
delicacy
5. Lack of advertisement,
especially brochures
and leaflets in their
stalls.
WO Strategies:
1. Providing of Filipino
delicacy which are in
demand regardless of
the
season(W4,W3,O5)
2. Advertisement thru
referral from our loyal
customers (W5,O3)

in the population.
4. Expanding the
range of the
company thru
opening new jobs
and franchises.
5. Providing other
Filipino delicacy
such as
putobumbong
Threats:
ST Strategies:
1. Innovation of other
1. Set the most affordable
food business can pull
price as possible to
our customers away
lessen the effect of
from us.
economic distress to
2. Creation of other
our customers (S2,T4)
unique products.
2. Variation of products
3. Entry of foreign brands
can lessen the chances
which are more
of our customers being
popular than the
pulled by the
company.
competitors(S4,T1,T2)
4. Inflation rate which
3. Innovation to improve
can affect the
our products to
purchasing power of
compete with the
the people.
competitors(S1,T1)
5. Unforeseen calamities
which can damage our
raw materials in
making our products.

WT Strategies:
1. Reduction in the price
of initial investment to
make it affordable
even with high rate of
inflation(W1,T4)
2. Promote bibingka as
not just your seasonal
delicacy but also a
snack that you can
grab anytime of the
year(W3,T1,T2)
3. Improve the
distribution networks,
especially when
unforeseen calamities
happen.(W2,T5)

Strategies:
Intensive Strategies (Market Penetration, Market Development, and Product Development)
Integration Strategies (Backward, Forward, and Horizontal Integration)

6.2 STRATEGIC POSITION AND ACTION EVALUATION MATRIX (SPACE)

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INTERNAL STRATEGIC POSITION

EXTERNAL STRATEGIC POSITION

Financial Position (FP)

Stability Position (SP)

(+1 worst, +6 best)

(-6 worst, -1 best)

(+3) Working Capital

(-1) Barrier to enter

(+4) Return on Investment

(-4)Competitive Pressure

(+2)Leverage

(-2)Price range of competing products

(+3) Inventory turnover

(-3)Demand Variability

Average: 3.00

Average: -2.50

Competitive Position (CP)

Industry Position (IP)

(-6 worst, -1 best)

(+1 worst, +6 best)

(-4) Customer Loyalty

(+3) Financial Stability

(-3)Product quality

(+2)Growth Potential

(-4) Market Share

(+2)Ease Of Entry Into Market

(-3)Product life cycle

(+3) Productivity, Capacity utilization

Average: -3.5

Average: 2.5

TOTAL X-AXIS SCORE:

.5

TOTAL Y-AXIS SCORE:

-1.5

63 | P a g e

Strategies:
Intensive Strategies (Market Penetration, Market Development, and Product Development)
Integration Strategies (Backward, Forward, and Horizontal integration)

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6.3 INTERNAL EXTERNAL MATRIX (IE)

IFE 3.1

STRONG

AVERAGE

WEAK

3.0 4.0

2.0 2.99

1.0 1.99

EFE 2.09
I

II

III

IV

VI

VII

VIII

IX

HIGH
3.0 4.0

MEDIUM
2.0 2.99

LOW
1.0 1.99

65 | P a g e

Backward, Forward and Horizontal

Diversification
Market Penetration
Market Development
Product Development
GROW AND BUILD

For the Internal-External (IE) Matrix, Bibingkinitan has an EFE and IFE rating of 2.45 and 3.10
respectively. The company, under its parent company Philippine FoodAsia Corp. falls in the
fourth quadrant of the matrix which signifies that the company has a medium external position
and a strong internal position; therefore it must add additional resources, allocate its resources
properly and have a proper branding in order to build and establish the name of the company. On
the other hand, in order to maximize the growth of the company, it must increase its sales and
expand the range of the firm in order to increase its growth. The result of this matrix was derived
from the total IFE and EFE weighted score. Being in the fourth quadrant indicates that the
growth and build strategies appropriate for Bibingkinitan are as follows:
Intensive Strategies (Market Penetration, Market Development, and Product Development)
Integration Strategies (Backward, forward and horizontal Integration)

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6.4 GRAND STRATEGY MATRIX (GSM)

QUADRANT II

Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation

QUADRANT III

Retrenchment
Concentric diversification
Horizontal diversification
Conglomerate diversification
Liquidation

QUADRANT I

Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Concentric diversification
QUADRANT IV

Concentric diversification
Horizontal diversification
Conglomerate diversification
Joint ventures

Bibingkinitan is positioned in quadrant II of the Grand Strategy Matrix. It indicates that the firm
needs to assess and evaluate their current approach to the marketplace more seriously. Despite of
being known as the number one bibingka chain in the Philippines, it must develop its product in
order to get a wider target market. The company must also diversify and innovate it products in
order to become competitive not only during the Christmas season but also throughout the year.
In terms of market development, since they already captured the C and D market of the
population, they must now find ways to cater the other classes. They should also expand

67 | P a g e

internationally to cater more people in order to develop their market. For this quadrant intensive
strategies and integration strategies are recommended in order to create and gain competitive
advantage.
6.5 QSPM
KEY FACTOR
OPPORTUNITIES
1. Dominating the
market in terms
of providing the
people with this
local food.
2. Overseas
expansion in
other countries
starting with
Jakarta,
Singapore,
Hongkong, and
Las Vegas.
3. Our target
market is the C
and D market
which
represents the
greatest
percentage in
the population.
4. Expanding the
range of the
company thru
opening new
jobs and
franchises.
5. Providing other
Filipino
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WEIGHT

MARKET
PENETRATION

MARKET
DEVELOPMENT

AS

TAS

AS

TAS

0.18

.54

0.72

0.18

.54

0.10

.2

0.06

.12

0.05

.54

0.36

PRODUCT
DEVELOPMENT
AS

TAS

0.36

delicacy (such
as
putobumbong)
THREATS
1. Innovation of
other food
business can
pull our
customers away
from us.
2. Creation of
other unique
products.
3. Entry of foreign
brands which
are more
popular than the
company.
4. Inflation rate
which can
affect the
purchasing
power of the
people.
5. Unforeseen
calamities
which can
damage our raw
materials in
making our
products.
STRENGTHS
1. Uniqueness of
their product.
2. Affordable
price.
3. Conversion of
some of its
stores into
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3
0.07

.21

.21

.30
0.10

.4

0.20

.8

0.03

0.09

0.03

0.15

.45

0.15

0.20
0.05

.15

.09

bigger cafe-type
stores with
seating areas
for our
customers.
4. Variation of
bibingka.
5. Using of
Business Plus
(Globe
business) to
stay connected
to the office.
WEAKNESSES
1. Large initial
investment can
hinder in the
expansion of
the company.
(Php 500,0001,500,000)
2. Lack of
advertisemen,
especially
brochures and
leaflets in their
stalls.
3. Weak
distribution
networks.
4. Seasonal
product.
5. Other people
tend to choose
less this local
delicacy
TOTAL

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0.05

.15

0.2

.3

0.05

0.15

0.20

0.8

0.05

.05

0.10

0.10

.3

0.1

3.26

0.2

2.92

2.11

Legend:
Attractive

4 Highly Attractive
1 Not Attractive

3 Reasonably Attractive

2-Somewhat

VII. Strategic, Objective and the Recommended Strategies

A. Strategic and Financial Objectives
Through the effort and cautious analysis of the researcher, he found out that
Bibingkinitan is already a established brand here in country, extending its range from the
northern part of Luzon up to the southern part of Mindanao. Bibingkinitan is also one of
the fast growing franchising business here in the country, and they posed a big threat as
against to their competitors here in the country especially to Brownies Unlimited.
However, Brand recognition is one of the weakness of company, meaning that even
though they are known locally, still there are other brands who are more popular than
them, just like the case of Mister Donut. Mister Donut still dominates the market as
against Bibingkinitan and Brownies Unlimited because of its brand recognition. They are
already known internationally and they are already operating in the business for more
than 30 years thats why it is a huge advantage for them and it is a disadvantage to the
other company. The company must also prioritize in its advertisement because it affects
the image of the company. Lack of advertisemet is also a cause of lack of recognition of
the brand, thats why they should address this problem in order to turn this weakness into
a strength in the long run. In terms of their financial standing, the researcher can say that
they are financially stable and are going to the right direction. However, they must
71 | P a g e

maintain the way they are returning the investment of its stockholders in order to satisfy
the shareholders and to ensure that they will never run out of people who can finance the
budget of the company.
To summarize this, here are the following main objectives of Bibingkinitan that needs to
be prioritized or meet:
- Update its website in order to let people know that they are always active and to
-

promote the name of the company internationally thru the internet.

The company must compete with their competitors, like hiring well-known actors to
endorsed their products and ensuring that each store have enough leaflets and

brochures so that people could learn about the producs that the company offers.
For the next five years, its Return on Shareholders Equity must increase atleast 1%

each year to increase the wealth of its shareholders.

By the year 2020, at least 80 % of its stores should be converted into cafe-type areas

in order to attract more customers and to be more appealing as against its competitors
Offer other Filipino delicacy to promote patriotism and to diversify their products.
The researcher suggest that they should start to offer putobumbong, another classic
local delicacy which is in demand during Christmas season so that they could offer
another on the season product all through out the year.

7.1 Recommended Vision/Mission Statement

7.1.1 Revised Vision Statement
-

It is our vision to make Filipino food and delicacies known to the whole world and to
compete side by side with the international brands.

72 | P a g e

7.1.2 Revised Mission Statement:

-

It is our mission to provide great tasting bibingka to our customers and to provide not
only the country but also the whole world a taste of the Filipino tradition. By doing
so, we will emphasize in training our staffs and employees to maximize their full
potential and to adapt to technological changes the world has to offer. We will make
sure to give the people what they want and to deliver to them the Filipino values and
to provide our company a positive operating results in order to continue in competing
in the international scene.

9
Components
1. Customers

Yes

No

Remarks:

The statement to provide great tasting bibingka to our

2. Product or

customers clearly shows how we will cater our customers.

". . .to provide great tasting bibingka this statement

Service
3. Markets

describes the quality of its product

. . .and to provide not only the country but also the whole
world a taste of the Filipino tradition. . . it shows that it

4. Technology

will expand the range of it market globally

Bibingkinitan will adapt to technological advances, as
stated. . . .to adapt to technological changes the world has

5. Concern for

to offer. . .
. . .to provide our company a positive operating results in

survival,

order to continue in competing in the international

growth and

scene. . . this statement shows that they are concerned with

profitability

the growth and profitability of the company

73 | P a g e

6. Philosophy

7. Self-Concept

The statement, . . . deliver to them the Filipino values. . .

X

shows that the company will operate with values.

The company should define itself in order to differentiate
them from their competitors. Suggested statement would be

8. Concern for

Public Image:
Is the firm

to become the most wanted bibingka vendor

The firm has the concern for public image with the
statement We will make sure to give the people what they
want

responsive to
social,
community,
and
environmental
concerns?
9. Concern for
Employees:
Are employees

The company shows there concern for their employees in

the statement we will emphasize in training our staffs and
employees to maximize their full potential

a valuable
asset for the
firm?

B. Recommended Business Strategies

With the results of all the matrices in this paper, it is concluded that intensive strategies
are advised to Bibingkinitan. These three (3) intensive strategies are Market
Development, Product Development and Market Penetration. By doing these strategies,

74 | P a g e

they could gain more competetive advantage and improve their internal stabiliy as against
to their competitors.
a. Market Development This strategy includes global expansion. Since the company is
already operating all over the country, they must now expand internationally to gain
brand recognition and to compete side by side with the foreign brands. They should
also start expanding out of the country because in the current world it is a way to
survive the harsh environment of competition in the industry.
b. Product Development The company must alsto start to develop its product. As of
now, there are only three primary products being offered by them, these are (1)
bibingka, (2) kapeng barak, and (3) fruit juices. They must to diversify into other
product in order to offer the market with a variety of choices. Having a variety means
increasing the range to capture the taste and preferences of the people, and this have a
positive feedback for the company in the long run.
c. Market Penetration The company now increase their visibility in the market.
Training the marketing team with technological advances will increase their ideas or
new approach for visibility in the market. They must also increase their publicity in
order to attract the other markets and to make the brand known to the people who are
not a fan of their products.
C. Recommended Organizational Strategies
Generally, internal issues are the hardest to address because it affects the way how the
management manage the company. If these issues are not addressed properly
immediately, then the organization could have a hard time answering this problems and it
could harm the company. Internal stability may be gained by informing all of the people
inside its organization of the revised mision and vision from top level management up to
the rank and file employee.

75 | P a g e

Update its website in order to let people know that they are always active and to

promote the name of the company internationally thru the internet.

The company must compete with their competitors, like hiring well-known actors to
endorsed their products and ensuring that each store have enough leaflets and

brochures so that people could learn about the producs that the company offers.
For the next five years, its Return on Shareholders Equity must increase atleast 1%

each year to increase the wealth of its shareholders.

By the year 2020, at least 80 % of its stores should be converted into cafe-type areas

in order to attract more customers and to be more appealing as against its competitors
Offer other Filipino delicacy to promote patriotism and to diversify their products.
The researcher suggest that they should start to offer putobumbong, another classic
local delicacy which is in demand during Christmas season so that they could offer
another on the season product all through out the year.

D. Strategy Map
Visibility of Mission
and Vision
Statement

Enhancement of
Employees
-

Internal Stability
-

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Update its website

Enhance its
advertisment thru
famous people

Keeping and
recruiting star
employees
- Training

Customer
-

Financial Growth and

Stability

Conversion of
stores into cafetype places
Offering of new
products

Increase the
wealth of its
stockholders

Main Business Strategy

-

ROE should increase

atleast 1% per year.

E. Financial Projection and overall evaluation of the strategies

Consolidated financial
Statement
Revenue
Net Profit after
tax
Current Assets
Non-current
Assets
Total Assets
Total Liabilities
Total Equity

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(%) Increase
2012 per year
116,720,461
0.553438163

2010
53,210,288.80

2011
75,136,857

214,450
7,872,860

761,729
9,730,180

340,315
10,326,510

0.58692075
0.061286665

12,695,032
20,567,891
14,695,392
5,872,499

12,274,471
22,004,651
14,043,967
6,960,684

14,690,871
25,017,381
17,560,691
7,456,690

0.19686385
0.136913323
0.250408165
0.07125822

F. Departmental Programs
ACTIVITIES
General

TIMETABLE

EXPECTED

PERSON/DEPARTMENT

Every six months

OUTPUT
To update the

RESPONSIBLE
Marketing Department

Assembly

employees for the

new promotions so
that visibility of the
new promotion will
be fast and strong.
To have a strong

Human Resource

employees and

roster of employees

Department

train their talents

and keep the

Keeping star

Every month

competitive
advantage,
unproductive
employees must be

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Create Seasonal

Every year

products

terminated
New and enticing

Marketing Department

product provided in
the market in which
it could capture
easily the taste and
preferences of the

Research about

Every 4 months

the industry and

market
To keep the firm on

Research and

trend and updated

Development

create new
promotions
Monitor the

Every start and

To see new

Marketing Department

performance of

end of the year

opportunities and

and Research and

competitors and

the real competitive

Development Department

their rates per

position of the

year
Meetings with

Every half of the

company.
Building

Human Resource and Top

business partners

year

relationship with

Management

about future

business partners to

actions and plans.

let them contribute

with the stability of
the company
To measure

Operations and production

Evaluation

customer

Department

Report

preferences to

Customer

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Quarterly

engage relationship
with the
members/customers
To build internal

Top management and

assessment

stability and create

Human Resource

internally for the

new programs to

Department

whole company

replace job rotation

Evaluation and

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Yearly

VIII. Strategy Evaluation, Monitoring and Controlling

8.1 Balanced Scorecard
8.1.1 Learning and Growth Perspective
Goal
Employee Efficient

Measures
Engage employees in

Targets

and employees to

training and

employees full talent

become star

development

and Potential with the

50%

employees

Initiative
Releasing and utilizing

use of training and

development

8.1.2 Customer Perspective

Goal
Customer Preferences

Measures
Customer Evaluation

Targets

and Brand

and proper promotion

sheets and reports for

Recognition

of the services that is

production and

rendered by the

operation team,

company

Upgrade Marketing

30%

Initiative
Customer evaluation

efforts (i.e. promotion

and advertisement)
8.1.3 Financial Perspective
Goals
Increase the ROE and

Measures
Widen the network of

Increase Sales

the company

Targets
20%

Initiative
Increase number of
branches by at least 10
internationally

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8.1.4 Internal Process

Goals
Increase the number

Measures
Look for high end

Targets
40%

Initiative
Acquire these

of equipment in

equipment to be used

equipments in order to

production

in producing goods

maximize the
production output of
the company.

References:
Online Resources:
http://www.browniesunlimited.com/products
http://www.misterdonut.ph/faq
http://www.worldometers.info/world-population/philippines-population/
http://www.lawphil.net/statutes/repacts/ra1992/ra_7394_1992.html
http://www.philstar.com:8080/business-usual/665532/bibingkinitan-owner-innovative-businesstool-important-facet-trade
https://finder.kanegosyo.com/franchise/about/81/bibingkinitan
82 | P a g e

https://www.google.com.ph/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&sqi=2&ved=0CDQQFjAE&url=
http%3A%2F%2Ffranchisemanila.com%2F2012%2F12%2Fbibingkinitan-franchise
%2F&ei=rwv3VIKAOuXlmAXTuILwBA&usg=AFQjCNEuNwhH1Frvxu8fcr9UKHn2b9lUuQ
&sig2=hOvBAT0GMSzBE4PRUCuwQw
http://www.misterdonut.ph/faq
http://www.entrepreneur.com.ph/directory/franchise-directories/food-and-snack-cart/entrepinoyfoodcart-business
http://manilastandardtoday.com/2013/09/29/food-cart-guru-gives-tips-on-successful-business/
https://www.google.com.ph/search?
newwindow=1&q=how+to+quote+from+a+website&oq=How+to+quote+f&gs_l=serp.1.1.0l5j0i
20l2j0l3.692054.703925.0.705903.61.28.5.3.3.2.589.4543.26j2j3j2.13.0.msedr...0...1c.1.62.serp..43.18.3496.0.VTt7AF9DG9A
http://www.bibingkinitan.com/2011/03/23/bibingkinitans-business-systems-integration-a-soundinvestment/
Books:
DAVID, Fred R. Strategic Management Concepts and Cases,13th edition. Jurong: Pearson
Education South Asia Pte. Ltd.,
Fundamentals of Accounting Volume 2 Partnership and Corporation (2012 Edition)
Patricia M. Empleo, et al.

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