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De La Salle University - Dasmarias

A Strategic Management Plan for


Universal Robina Corporation

A Strategic Management Research Paper


Presented to the faculty of the
College of Business Administration and Accountancy
De La Salle University- Dasmarias
Dasmarias, Cavite

In Partial Fulfillment of the Requirements in the


Degree of Bachelor of Science of Business Administration Major in Business
and Operations Management

Guadalupe, Ma. Theresa Diana T.


Molo, Denise T.
Penuliar, Winston M.
Penalba, Gheanine Kate
Ramos, Lovely Marbel L.
Tolentino, Carilyn M.

December 2017
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Chapter I

INTRODUCTION

Background of the Company

Universal Robina Corporation (URC) is one of the largest branded

consumer food and beverage product companies in the Philippines and has a

significant and growing presence in the ASEAN markets. URC is among the

Philippines' pioneers in the industry. It has been in operations for over 60

years since John Gokongwei, Jr. established Universal Corn Products, Inc, a

cornstarch manufacturing plant in Pasig, in 1954.

URC is engaged in a wide range of food-related businesses, including the

manufacture and distribution of branded consumer foods and is also in

commodities namely sugar milling and refining and flour milling and in Agro

industrial businesses of farms mainly hogs and animal feed milling and related

products.

URC is the leading branded snackfoods and beverage company in the

Philippines. URC is the first "Philippine Pan ASEAN Multinational" and has

proven itself to be a trailblazer in manufacturing with a strong and loyal

consumer base. The company has unswervingly showcased its innovation and
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excellence through its groundbreaking products, wide distribution network,

and effective marketing. This is also evident in URC's formidable market

leadership in snackfoods and beverages.

John Gokongwei Jr. established a vision for URC to become one of the

leading pan Asian players in snack foods and beverages. This vision is

gradually being realized as URC has managed to transform itself from a

Philippine operation to a recognized Asian multinational with full scale

operations in eight countries outside the Philippines, and soon in emerging

markets like Myanmar, Laos and Cambodia. In addition, URC's products are

already being exported to mainstream markets in the US, Europe, Japan,

Korea the Middle East and frontier markets in West Africa, like Ghana and

Nigeria.

URC has built three strong regional brands over the years; "Jack 'n Jill" for

snack foods, "C2" for ready to drink tea, and "Great Taste" for coffee, with

these brands becoming popular across the ASEAN region. URC's key to

success is to build very strong branding through a robust product innovation

pipeline, consumer-centric marketing and world-class manufacturing and

supply chain management. URC will continue to transform itself in line with

the changing external dynamics in line with increasing opportunities in Asia

and beyond.

Nature of business
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Universal Robina Corporation (URC), the "first Philippine multinational", is

one of the largest branded foods companies in the Philippines, and has

managed to expand to other Asian markets. Most recently, URC has expanded

its reach to New Zealand and Australia through the acquisition of Griffin's

Foods, a leading snacks player in New Zealand.

URC is engaged in a wide range of food-related businesses, including the

manufacture and distribution of branded consumer foods, flour milling and

pasta manufacturing, sugar milling and refining, renewable energy via the

bio-ethanol and biomass cogeneration businesses (under Sugar Group), hog

farming, manufacture of animal feeds, glucose, soya products and veterinary

compounds.

Current Revenue and Profit

For the past few years, Universal Robina Corporations revenue has

been steady and rising.


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Major Markets Served

Universal Robina Corporation (URC) is one of the largest branded

consumer food and beverage product companies in the Philippines and has a

significant and growing presence in the ASEAN markets. URC is among the

Philippines' pioneers in the industry.

Universal Robina Corporation (URC), the "first Philippine multinational",

has managed to expand to other Asian markets. Most recently, URC has

expanded its reach to New Zealand and Australia through the acquisition of

Griffin's Foods, a leading snacks player in New Zealand.

Number of Employees

Universal Robina Corporations has 29,801 employees. With its

competent, hardworking, dedicated and outstanding employees, Universal

Robina Corporation is serving its valued customers through easy access of

Universal Robina Corporations products and very constant innovations, strong

distribution capabilities, and effective marketing campaigns.

Other Relevant Information


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Universal Robina Corporation is among the Philippines pioneers in the

food manufacturing business having been operating in the country for over 40

years. URC is engaged in manufacturing, marketing and distribution of a wide

range of consumer food products such as snacks, confectionery, biscuits and

crackers, instant coffee, instant noodles, tomato sauces, and pasta among

others. For over 40 years now, URC has consistently ranked among the top 50

in the countrys top1000 corporations.

Awards

IABC cites URC Exec in CEO Excel Award 2005


Payless Instant Noodles Receives Best Family Instant Noodles Award
Photo shows 3rd District Representative Mathias Defensor, Councilor

Dante de Guzman, Huwarang Ina


Arnold Clavio is the new Kabalikat of farmers in new Uno Feeds

commercial

Chapter II

Research and Methodology


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Data Gathering Methods

The relevant information contained in this paper was obtained from

various sources. Websites, reference materials like reports, government

issuances, industry and corporate association or group reports, various

publications like annual reports were used.

Other information was also sourced from resource persons of Universal

Robina Corporation through interviews and/or email correspondences. The

interviewer asks questions generally about the data that will be needed in this

paper. A list of questions has been provided by the interviewer during the

interview that contains questions about the relevant information that supports

the research proposal. This type of method of gathering data is reliable

because information was source out at greater depth, its flexibility of

restructuring the questionnaire and the information comes from those

resource persons that knows their company very well.

Secondary Information from various sources like other research papers

coming from the thesis section was also utilized.

The proponents first-hand, confidential, personal knowledge and

access to various industry and its competitors comes from the fact that

he/she has been a practitioner in the industry.

Market shares and internal environment were derived from

management files, reports, collation of feedbacks from the Universal Robina

Corporations sales and marketing manager and staff.


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An independent industry survey through very useful specially in making

data more relevant and accurate, posed to be impossible to do given the time

frame and the cost that it would entail. Thus, this type of method was not

performed.

The research design and methodology was kept simple and based on

available data from regular competitor analysis from sales and marketing.

Competitive information was very limited and not readily available. This

is part and parcel due to the fact that most Filipino and multi-national

companies are not publicly listed. Thus, this posed as a limitation for this

paper through with the available data obtained by the proponent from other

sources and her personal knowledge about the industry, the validity and

accuracy of this paper was never compromised

The primary sources of data and information at a glance are as follows:

Finance Manila
Bloomberg Markets
Philippine Stock Exchange (PSE)
Publications: Magazines, Annual Reports and Websites
Universal Robina Corporation administrative staff, sales & marketing,

suppliers and customers.


Thesis Sections

Framework of Analysis

In order to link and define concepts as they relate to outcomes this

strategic paper made use of Fred R. Davids Strategy-Formulation Analytical

Framework as outlined in his book Strategic Management.


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All data and information gathered were used in the different tools used

in Input, Matching and Decision Stage. The first stage is the Input stage,

where EFE and CPM are used to summarize the basic input information

needed to formulate strategies. The second stage used IE Matrix as tools for

the Matching Stage. It is where both internal and external factors were used

to come up with feasible alternative strategies. The figure below illustrates

how and when these strategies were used to identify logical flaws and clarify

implicit assumptions.

Source: David, Fred R. Strategic Management: A Competitve Advantage

Approach, Concepts & Cases, 15th Edition


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CHAPTER III
VISION AND MISSION

VISION STATEMENT
URC's vision is to be the best Philippine food and beverage company, with a

powerful presence throughout the ASEAN region, carrying a wide portfolio of

delightful brands of exceptional quality and value, equipped with efficient

systems and motivated people. We are committed in making lives a truly fun

experience.

MISSION STATEMENT

Universal Robina Corporation (URC) is one of the largest branded food product
companies in the Philippines and has a growing presence in other ASEAN
markets.

REVIEW OF VISION AND MISSION

URCs Vision and Mission Statement complied with Fred Davids seven
components out of nine suggested characteristics of good Vision and Mission
statements. Providing a tactical framework for organizations to follow and
these parameters are:
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Criteria Yes/No Evaluation

Equipped with efficient and motivated people


committed in making lives a truly fun
Customers YES experience.

Products and YES to be the best Philippine food and beverage


Services company
one of the largest branded food product and
has a growing presence in other ASEAN
markets

Markets YES With a powerful presence throughout the


ASEAN region

Technology NO carrying a wide portfolio of delightful brands


of exceptional quality and value

Concern for to be the best Philippine food and beverage


Survival, YES company, with a powerful presence
Growth and throughout the ASEAN region
Profitability

Philosophy YES carrying a wide portfolio of delightful brands


of exceptional quality and value

Self-Concept YES We are committed in making lives a truly fun


experience.

Concern for YES One of the largest branded food product


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Public Image companies in the Philippines and has a


growing presence in other ASEAN markets.

Concern for NO equipped with efficient systems and


Employees motivated people

REVISED VISION STATEMENT

To be the best Philippine food and beverage company. Delivering a high


quality product domestically and internationally.

REVISED MISSION STATEMENT

Providing a high quality product that serves the customers & community for
better and safer environment, demonstrate corporate responsibility while
providing our members and employees with safe, cost effective and
innovatively working environment.

REVIEW OF NEW VISION AND MISSION


In this revised statements, the proponent has proposed changes and

revisions from the overall mission statements of URC in order to be

definite and specific in its industry. It should be the guiding post and

principles from which the organization operate, providing a better and

safer working environment for all the employees as well as the top

management and for the sake of environment.

Criteria Yes/No Evaluation

Providing a high quality product that serves


Customers YES
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the customers and community

Products and YES To be the best Philippine food and beverage


Services company. Delivering a high quality product
domestically and internationally

Delivering a high quality product domestically


Markets YES and internationally

Technology YES providing our members and employees with


safe, cost effective and innovatively working
environment

Concern for To be the best Philippine food and beverage


Survival, YES company
Growth and Delivering a high quality product domestically
Profitability and internationally.
demonstrate corporate responsibility

Philosophy YES Providing a high quality product that serves


the customers & community for better and
safer environment

Self-Concept YES Delivering a high quality product domestically


and internationally

Concern for YES serves the customers & community for better
Public Image and safer environment
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Concern for YES providing our members and employees with


Employees safe, cost effective and innovatively working
environment

CHAPTER IV

ENVIRONMENTAL ANALYSIS

Economic Development

Inflation

Inflation rate is a rate at which the general level of prices for goods and

services is rising. It greatly affects the buying power of the consumers and

businesses. When the price level rises, each unit of consumers buys fewer

goods and services. It might affect the buying pattern of consumers that leads

to decrease in sales and revenue.

It also affects the businesses especially for manufacturing companies

like Universal Robina Corporation in terms of acquisition of raw materials. If


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the commodities price will increase, it can affect the company in terms of

financial aspects and generating profit for the year.

Source: https://www.statista.com/statistics/7871/inflation-rate-in-philippines/

This statistic shows the average inflation rate in the Philippines from 2012

to 2017, with projections up until 2022. In 2017, the average inflation rate in the

Philippines amounted to about 3.03 percent compared to the previous year.

Exchange Rate
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Most manufacturing companies here in the Philippines heavily relies on

imported raw materials and components and serves largely domestic markets.

It can affect actual inflation as well as the future price movements. Changes

in the exchange rate tend to directly affect domestic prices of imported goods

and services. A stronger peso lowers the peso prices of imported goods,

therefore lowering the rate of inflation. An increase in the value of peso will

lower the prices of a US dollar. It will be favorable for manufacturing

companies to have a strong peso because the cost of raw materials coming

from other countries will decrease after it has been converted from USD

into Peso.

Stock Exchange
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Large companies have been participating in Stock Market. Company

issues shares for them to raise cash. This is done through initial public

offering. Afterwards, the stock continues to trade on an exchange. Investors

who buy and sell the stock benefit from any appreciation in stock price. The

original company that issues the stock does not participate in any profits or

losses resulting from the transaction of secondary markets. Company also

aims to increase share to also increase its prestige and exposure to the public

or market. They also care about the stock market. The larger a companys

market capitalization; the more analyst coverage the company will receive.

The higher the stock price, the greater the positive impact about the

companys prospect and so does its market value.

Employment Rate

According to Labor Force Survey (LFS), the employment rate as of July

2017 has 94.4 %. Regions with lowest employment rates were Ilocos Region

(91.8%), National Capital Region (NCR) (92.1%), and Central Luzon (92.9%)

(Table 4). The labor force participation rate (LFPR) in July 2017 was

estimated at 60.6 percent given the population 15 years old and over of 70.1

million. The LFPR in July 2016 was 63.2 percent. The labor force population

consists of the employed and the unemployed 15 years old and over. The LFS

results also showed that in the industry sectors workers in manufacturing

sectors made up the largest groups, accounting for 50.1 % and 45.3 percent
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of the workers in these sectors. With a high percentage of employment rates,

it will contribute to the buying power of the consumers and continue to buy

products. By that, there would be an increase in economic growth as well as

the expansion growth of the Food Industries.

Source:
https://psa.gov.ph/content/employment-rate-july-2017-estimated-944-percent

Population Growth Rate


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The population of the Philippines has been steadily growing for many

years. It is the 12th most populated country in the world,

between Mexico and Ethiopia, and grew at a rate of 1.72% between 2010 and

2015. The 2017 population is 104.92 million, according to the latest UN

estimates.

Based on 2015 census data, the population in 2016 in the Philippines

was 100,981,437. Based on the 2015 census results, the population increased

by over 8 million people when compared to the 2010 census census results.

The growth rate has slowed slightly from the previous census, down to 1.72%

from 1.89%

Source: http://worldpopulationreview.com/countries/philippines-population/
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Socioeconomic Classes

Source: https://www.pinoymoneytalk.com/sec-abcde-percentage-population/

SWS survey shows that the high income AB classes represent only 1%

of the families in the Philippine population. As expected, they are very, very

few. If we are to translate this percentage into nominal terms, the AB classes

number only 185,000 families. If we assume that each family is comprised of

five (5) people, the AB population of the Philippines is barely 1 million people.

The report warns, though, that this number may appear lower because

most AB respondents refuse to participate in the survey. Meanwhile Class

C comprises 9%, with class D representing the largest bulk of families in the

Philippines: 60%. Therefore, six (6) out of every 10 Filipinos belong to Class

D. Judging by this huge percentage, we can say that the masa population in

the country is Class D.

The poorest segment, Class E, also comprises a big chunk. Around 30%

of Filipino families are classified under this class, which undoubtedly confirms
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that poverty in the Philippines remains prevalent. The company can take

advantage of these facts in order to control the market.

Socio-cultural

Lifestyle and Buying Preference

Consumer became conscious about their wellness and being. They shift

to a healthier lifestyle like eating healthier foods in order to avoid health

diseases. They search for a product specifically snack foods which is delicious

and healthy at the same time. Providing healthier product creates a significant

impact on its companys market share.

Some food industry innovates a product which contains healthy

ingredient and these can be a competitive advantage among other

competitors. Also, there are some factors that a food industry should consider

in producing products. They should comply with the requirements given by

the Department of Health. Food Industry should be aware of consumers

buying preferences.

Today, everything is instant because of the expansion of new

technology that makes peoples life easier. In this generation, consumer

became more demanding in terms of convenience in obtaining or buying the

product. Food industries allocate their products near the consumers including

grocery stores and convenience stores that will be easier for consumers to
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find and buy the product. If the product is easy to obtain by the consumers,

they will continue to patronize and buy the product.

In the Philippines, there are many occasions that Filipino people are

celebrating. They also love to hang-out and attend social gatherings. When

there is a social gathering, they communicate with each other and eat at the

same time. Filipino loves to eat snack foods when they are relaxing and

having a good time. Food industry companies provide consumers that fit the

Filipino taste.

The younger generation preferences in terms of their taste in food

changes overtime, they became more demanding that is why Food Industry

should be aware of the consumers behavior in terms of their preferences in

the product. Thats why food industries expand their portfolio and continue to

create an innovative product and improve quality to meet the demand of

consumers. It will lead to growing snack markets.

Typical to Southeast Asian consumers, Filipino consumers also tend to

have a planned approach to their snack consumption. These consumers buy

snacks in the store aisle, plan their purchases before they get to the store,

and have a few snacks they keep in rotation. Notably, however, Filipino

consumers also exhibit characteristics of spontaneous snackers, including

trying new snacks, buying a variety of snacks, and making unplanned snack

purchases. Spontaneous snackers often eat snacks as soon as they buy them

and tend to buy snacks at the check-out counter.


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Opportunities abound with strategic placement of snacks to ensure both

ends of the spectrum are catered for. Purposeful snackers know what they

want in a snack and are very selective about what they choose. For these

consumers, it is important to clearly state product features such as

sustainable sourcing and fair-trade. Conversely, getting products in high

visibility areas, particularly in front-of-store locations, is key to cornering the

impulse-driven snack market.

Demographic Trends

Age Distribution

The latest statistics of NSO regarding the distribution of the population

per age bracket reveals that as of 2015, the group aged 15-64 years old

comprised of 63.41% of the total population of the country, and this has been

the trend since August 2015.

Food Industry companies cater to 15 to 65-year-old consumers, so with

this high percentage of the population, the company has a large market scale.

Technological Development

Affordability of Communication Channels

Digital Marketing is the cheapest advertising and also the most effective

and quickest way to reach customers. Internet use continues to grow around

the world with the number of internet users growing by 8% every year. In
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the Philippines, the report said the number of internet users in the country

has grown by 27% in the Past 12 months. According to Rappler, Most Filipino

People spend most of their time on social media. There are about 60 million or

58% of the total population have the access to the internet. Thats why it will

be recommended to use Social Media as platform of communication with the

consumers.

Most of the consumers are fond of using social media. By using it to

advertise their products, it will be easier to reach large scale of consumers

and it is the most affordable and cheaper compared to TV Commercials.

It increases its connectivity of company to consumers, also increase

their customer relationship management.

Advanced Customer Relationship Management

Customer Relationship Management is a key indicator for a companys

sales to increase. A major benefit can be the development of better relations

with existing customers. Promoting brand loyalty is important and also

acquiring new customers which can lead to business success, but maintaining

customer relationships is not an easy task. It takes a lot of time to manage its

customer relationships especially when it comes to the product or services

that you were offering. Consumers becomes in demand and their preferences

changes from time to time. Because of advancement of technology, it will now

be easier to identify the customer requirements and anticipating their needs.


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Systems has been widely used by many large companies particularly

manufacturing companies. The SAP Business One has been practicing by

these companies to improve its operational activities.

The SAP Business One is an Enterprise Resource Planning (ERP) and

business management application that provides the tools to turn prospects

into customers, grow customer profitability and sales, and increase customer

satisfaction. SAP Business One helps the business optimize and streamline the

entire sales process from tracking leads to managing sales orders and

customer data to administering after-sales support.

There are many advantages of using this system, it has different

features like Web-based customer managements which provides a web

interface accessible to sales teams and customers. A user-friendly interface

allows sales teams to access data anytime, from anywhere. Customers can

post inquiries and check order statuses.

Predict trends and anticipate customers needs with full visibility of customers

historical information. Also, it can boost Customer service management which

gives customer service and support teams the ability to administer service

contracts and warranties. Manage service calls and monitor all customer

service activities with alerts and reports.


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Political, Legal, Government Aspects

Intellectual Property Code of the Philippines

The State recognizes that an effective intellectual and industrial

property system is vital to the development of domestic and creative activity,

facilitates transfer of technology, attracts foreign investments, and ensures

market access for our products. It shall protect and secure the exclusive

rights of scientists, inventors, artists and other gifted citizens to their

intellectual property and creations, particularly when beneficial to the people,

for such periods as provided in this Act.

The use of intellectual property bears a social function. To this end, the

State shall promote the diffusion of knowledge and information for the

promotion of national development and progress and the common good.

URC owns a substantial number of trademarks registered with the

Bureau of Trademarks subject to the provisions of RA 8293 also known as the

Intellectual Property Code of the Philippines (IP Code) and recorded with the

Intellectual Property Office of the Philippines (IPPHL). In addition, certain

trademarks have been strategically registered in other countries in which it

operates. These trademarks are important in the aggregate because brand

name recognition is a key factor in the success of many of the companys

product lines. Trademark registration is a means to protect these brand

names from counterfeiting and infringement.


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The company has put considerable efforts to protect the portfolio of

intellectual property rights, including trademark registrations. Security

measures are continuously taken to protect its patents, licenses and

proprietary formulae against infringement and misappropriation.

Food and Drug Administration Act of 2009

An Act strengthening and rationalizing the regulatory capacity of the

Bureau of Food and drugs (BFAD) by establishing adequate testing

laboratories and field offices, upgrading its equipment, augmenting its human

resource complement, giving authority to retain its income, renaming it the

Food and Drug Administration (FDA), amending certain sections of Republic

Act No. 3720, as amended, and appropriating funds thereof.

As manufacturer of consumer food and commodity food products, URC

is required to guarantee that the products are pure and safe for human

consumption, and that the company conforms to standards and quality

measures prescribed by the Bureau of Food and Drugs.


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Environmental Laws

The operations of the Company are subject to various laws enacted for

the protection of the environment, including the Pollution Control Law (R.A.

No. 3931, as amended by P.D. 984), the Solid Waste Management Act (R.A.

No. 9003), the Clean Air Act (R.A. No. 8749), the Environmental Impact

Statement System (P.D. 1586) and the Laguna Lake Development Authority

(LLDA) Act of 1966 (R.A. No. 4850).

The Company believes that it has complied with all applicable

environmental laws and regulations, an example of which is the installation of

wastewater treatments in its various facilities. Compliance with such laws

does not have, and in the Companys opinion, is not expected to have, a

material effect upon the Companys capital expenditures, earnings or

competitive position.

The Company is subject to numerous environmental laws and

regulations relating to the protection of the environment and human health

and safety, among others. The nature of the Companys operations will

continue to subject it to increasingly stringent environmental laws and

regulations that may increase the costs of operating its facilities above

currently projected levels and may require future capital expenditures. The

Company is continually complying with environmental laws and regulations,

such as the wastewater treatment plants as required by the Department of

Environment and Natural Resources, to lessen the effect of these risks.


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Labeling and fair packaging

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;


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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.

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


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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;

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.


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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 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;
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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

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;


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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.
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Others

The Companys business could be adversely affected by the actual or

alleged contamination or deterioration of certain of its flagship products, or of

similar products produced by third parties. A risk of contamination or

deterioration of its food products exists at each stage of the production cycle,

including the purchase and delivery of food raw materials, the processing and

packaging of food products, the stocking and delivery of the finished products

to its customers, and the storage and display of finished products at the

points of final sale.

The Company conducts extensive research and development for new

products, line extensions for existing products and for improved production,

quality control and packaging as well as customizing products to meet the

local needs and tastes in the international markets for its food business. For

its agro-industrial business, its researchers are continually exploring

advancements in breeding and farming technology.

The Company regularly conducts market research and farm-test for all

of its products. Moreover, the Company ensures that the products are safe for

human consumption, and that the Company conforms to standards and

quality measures prescribed by regulatory bodies such as Bureau of Food and

Drugs, Sugar Regulatory Administration, Bureau of Animal Industry, and

Department of Agriculture.
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CHAPTER V

INDUSTRY AND COMPETITOR ANALYSIS

Industry Analysis

Force: Degree of Force:


Bargaining power of supplier High
Rivalry among competitors High
Threats of new substitute High
Bargaining power of buyer Moderate
Threat of New Entrants Low

Threat of New Entrants: Low

Branding, advertising, and creating product demand requires a large

capital therefore it limits the entry of new competitors in the market.


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Universal Robina Corporation has held a very significant market share for a

long time and loyal customers are not very likely to try a new brand.

Even though it is difficult to make an entry, it is not entirely impossible

for the customers to switch from URC to new entrants considering the low

switching costs.

Competitive Rivalry: High

Universal Robina Corporation has three competitors (Nestle, Coca-Cola,

Monde Nissin). These companies are producing product/s that has the same

category such as Bakery, Confectionary, and Beverage. The quality of their

products is also aligned to the satisfaction of the customers and to the quality

standards set by Hazard Analysis and Critical Control Points or HACCP and

International Organization for Standardization or ISO.

Most firms in the food and beverage industry are aggressive, such as in

product innovation and marketing. Competitive rivalry is also strengthened

because consumers can easily shift from one provider to another.

Bargaining Power of Buyers: Moderate

Since Universal Robina Corporation is one of the largest branded

consumer food and beverage product companies in the Philippines and has a
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significant and growing presence in the ASEAN markets, it is only natural for

them to have local and international buyers. These buyers may purchase

individually or in bulk orders. Large retailers, like Wal-Mart, have bargaining

power because of the large order quantity, but the bargaining power is

lessened because of the end consumer brand loyalty. Individual buyers have

no pressure effect on URC.

However, even if URC is the leading branded snackfoods and beverage

company in the Philippines, it is still possible for customers to look for a

product that could satisfy their expectations with a lower price. Consumers

can easily shift from one firm to another especially when they have extensive

information about the firm that would enable them to easily make choices

between URC products and competing products.

Threat of Substitution: High

As the rivalry among competitors are growing, high availability of

substitutes is not a surprise considering these firms are producing product/s

that has the same category such as Bakery, Confectionary, and beverage as

URC. These firms may be able to provide high performance substitutes. This

could be fatal the company considering that switching costs are low.

Bargaining Power of Suppliers: Low


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The company requires a variety of materials, including corn grains,

soya beans and meals, feed-wheat grains, wheat bran, wheat pollard, soya

seeds, rice bran, copra meal and fish meal. Considering this, the company has

several thousand suppliers covering services and materials. They confide with

local and international suppliers to be able to produce unique and exclusive

products and services.

The company gains the upper hand as there are large number of

substitute inputs that could replace their suppliers materials. And since there

are thousands of them out there, a high competition among suppliers is seen.

There would be a low switching cost if ever URC plans to switch since it is

likely a large, or one of the largest customer of any of these suppliers. High

overall supply increases URC's options in acquiring raw materials, thereby

reducing the bargaining power of suppliers.

CONCLUSION:

Universal Robina Corporations development in one of the most well

respected and profitable company in the Philippines. It is clear that URC is a

stable company and that it would continue to grow and become more diverse

because of its strong foundation and qualities a company. Among the 5

forces, rivalry among competing firms is the most existing threat for the

Universal Robina Corporation due to increasing number of competitors. Food

manufacturing, including food and beverage processing, remains the


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Philippines most dominant primary industry and accounts for 40% of total

manufacturing output. The industry contributes to 20% of GDP. The industry

represents a gross added value of more than $2 billion and the Philippines

Bureau of Food and Drugs statistical report lists approximately 12,000 food-

processing establishments. The government has identified food processing as

the priority sector to attract foreign investment and one of the top players in

food industry is the URC.

EFE MATRIX

PAIRED COMPARISON METHOD FOR EXTERNAL FACTORS


O1 O2 O3 O4 O5 O6 T1 T2 T3 T4 T5 FREQUENCY WEIGHTS

O1 O2 O3 O1 O1 O6 T1 T2 T3 T4 T5 2 0.09
O2 O3 O2 O2 O2 T1 T2 O2 T4 T5 5 0.11
O3 O3 O5 O3 O3 O3 T3 T4 O3 7 0.07
O4 O4 O6 T1 T2 T3 O4 O4 3 0.11
O5 O6 T1 O5 T3 O5 T5 3 0.07
O6 T2 O6 O6 T4 O6 6 0.06
T1 T1 T3 T4 T1 6 0.11
T2 T3 T2 T2 6 0.11
T3 T3 T5 7 0.13
T4 T5 5 0.08
T5 5 0.06
TOTAL 1 2 3 4 5 6 7 8 9 10 55 1.00

EXTERNAL FACTOR EVALUATION


KEY EXTERNAL FACTORS WEIGHTS RATING WEIGHTED
SCORE
O1 Growing Snack Markets 0.09 3 0.27
O2 Advanced technology 0.11 3 0.33
O3 Lifestyle geared towards purchase 0.07 2 0.14
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O4 Stronger Peso 0.11 3 0.33


O5 Emerging market expansion 0.07 3 0.21
O6 Advanced communication channels 0.06 2 0.12
T1 Changing consumers taste 0.11 3 0.33
T2 Many Substitute Products 0.11 3 0.33
T3 Intense competition 0.13 4 0.52
T4 High Inflation rate 0.08 3 0.24
T5 External changes (governmental, politics, taxes, etc.) 0.06 2 0.12
TOTAL 2.94

Growing Snack Markets (Weights-0.09;Rating-3)

Filipino consumers typically like to eat snacks thats why Snack

industries has expanding locally and globally. Snack manufacturers must

understand consumer demand and what drives their need states in order to

innovate offerings which incorporate the right balance of healthy and

indulgence. Localizing product portfolios to appeal to the taste and health

preferences of consumers is a critical factor in any successful growth strategy.

With this, it will be companys advantage to expand their market. The

researchers rate it as 3 because Growing Snack Markets can lead to increase

revenues and sales of the company.

Advanced technology (Weights- 0.11;Rating-3)

The researchers rate it as 3 with 0.11 weights. Technology brings

businesses closer to customers. Businesses use email to answer questions,


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offer online chat to help customers that are visiting the business website, and

equip call centers with the latest phone equipment that makes customer

service agents more efficient. Give customers a choice of ways to contact the

company. Technology is powerful, but keep the people element in mind and

don't skimp on training employees in effective customer service techniques

and the proper use of the technology

Small businesses need to wring every ounce of productivity out of their

operations and technology tools help employees get tasks done more quickly.

This may range from printing out marketing materials to providing customer

service through email or online chat. The key is to keep employees focused

when using technology and to use it appropriately with the goal of saving

time. Sometimes, a phone call may be more efficient and productive than an

email. Provide employees with the right hardware and updated software to

keep them working at peak proficiency.

Lifestyle geared towards purchase (Weights-0.07;Rating-2)


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In this kind of opportunity, Universal Robina Corporation got the above

average rating which indicates that the company is taking advantage of the

lifestyle which is geared towards purchase.

Stronger Peso (Weights-0.11;Rating-3)

The researcher rate it as 3 with the weights of 0.07 because it

moderately affect the financial aspect of business and due to great effect of

inflation rate in purchasing power of the company as well as the consumers.A

stronger peso lowers the peso prices of imported goods, therefore lowering

the rate of inflation. An increase in the value of peso will lower the prices of a

US dollar. It will be favorable for Universal Robina Corporation to have a

strong peso because the cost of raw materials coming from other countries

will decrease after it has been converted from USD to Peso.

Emerging market expansion (Weights-0.07;Rating-3)

The researcher rate it as 3 with the weights of 0.07 because it

moderately affects the financial aspect of business. Business expansion often

has the advantage of exposing the business to a wider audience. This

increased pool of potential customers can dramatically improve sales,

resulting in increased profitability. Customers, like employees, are important

in operating a successful company. Expansion, when done properly, can place


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the company in the forefront of many customers' minds. Thats why URC

should continue to expand their market in order to increase market shares.

Advanced communication channels (Weights-0.06;Rating-2)

Due to expansion of technology in terms of communication. It will be

easier for the company to promote or advertise their product by means of

using the platform of social media such as Facebook, Youtube and others. The

researchers recommend that the company should expand more and

continually use Digital Marketing in order to stay in touch with the consumers

because most consumers are using Social Media. The means of using Social

media includes Facebook or Twitter, Blogging, Company Websites, Mobile

Phone Promotions and Youtube.

Changing consumers taste (Weights-0.11;Rating-3)

In the type of industry Universal Robina Corporation are in, changing

consumer tastes is a great threat where Universal Robina Corporation

provides snack ang beverages to Filipino consumers. The researchers rate it

as 3 with 0.11 weights.

Many substitute Products (Weights-0.11;Rating-3)

The researchers rate it as 3 with weights of 0.11 because many

substitute products can affect the competitive environment for the firms in
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that industry and influences those firms ability to achieve profitability. The

availability of a substitution threat effects the profitability of an industry

because consumers can choose to purchase the substitute instead of the

industrys product. The availability of close substitute products can make an

industry more competitive and decrease profit potential for the firms in the

industry. On the other hand, the lack of close substitute products makes an

industry less competitive and increases profit potential for the firms in the

industry.

Intense competition (Weights-0.13;Rating-4)

The researchers rate it as 4 with Weights of 0.13 due to the negative

impact of intense competition with the market share of the company. A

primary drawback of competition is the reality of sharing customers with other

providers. With open competition, every provider has some level of market

share, so it is virtually impossible for a single provider to earn 100 percent

of what customers spend on specific products and services.

High Inflation rate (Weights-0.08;Rating-3)

The researchers rate it as 3 with Weights of 0.08 because they believe

that it also affects the businesses especially for manufacturing companies like

Universal Robina Corporation in terms of acquisition of raw materials. If the


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commodities price will increase, it can affect the company in terms of financial

aspects and generating profit for the year.

External changes (governmental, politics, taxes, etc.) (Weights-0.06;Rating-

2)

The researchers rate it as 2 with weights of 0.06 because it can

somehow affect the companys strategy. Governments establish many rules

and regulations that guide businesses. Businesses will normally change the

way they operate when government changes these rules and regulations.

Government economic policy and market regulations have an influence on the

competitiveness and profitability of businesses. Business owners must comply

with regulations established by federal, state and local governments.

CONLUSION:

Universal Robina Corporation got a total weighted score of 2.94, which

indicates that Universal Robina Corporation is responding in a way that is

above the average among organizations to the opportunities and threats

existing in their industry. With that being said, Universal Robina Corporations

strategies towards taking advantage of the opportunities existing in their

industry and minimizing the effects of the external threats to the company are

significantly effective compared to the organizations with average response

rate to the said external factors.


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Key Success Factors

These following Critical Success Factors will ensure the companys success to

sustain its competitive advantage:

1. A Good Quality Product that delight the consumer and customer makes

the company more attractive

2. Providing a fun and exciting product from packaging products is also

one of the strategy of the company to give joy to their customers,

adding some fun stuff that provide consumers satisfaction on the

product.

3. Good Quality Service is one of the most important CSF, consumers tend

to shift from another product if the company cant offer the desired

quality service that they want.

4. Supply Chain Effectiveness is one of the things that other companies

failed to achieve, it requires a Strategic and Integration challenge to

help the company what to outsource.

5. Price Competitiveness is also important to the CSF, once this is

achieving it can help the company a lot.

6. Continuously Improve the System Process is very important when it

comes to the companys CSF, a continuous improvement will ensure

the competitive performance.


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7. Develop New Product/s that are aligned to new Generation and Moving

Forward, in order to achieve this CSF, the company must be updated

on what is trendy nowadays because it might be threat for the

company if they cant be updated on whats the consumers want and

need.

8. Improve and Upgrade the Management Perspective (People Mgnt

Development) People at the Bottom to Top management should have a

better perspective towards success, training and seminar will help from

the bottom management.

9. Product Advertising is one of the CSF that plays an important role in

consumers life, it helps to keep the consumers informed about

whatever new products available in the market.


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Competitive Profile Matrix (CPM)

URCs competitors are San Miguel Corporation and Nestl

San Miguel Corporation is a Filipino multi-national publicly listed

conglomerate holding company. It is the largest publicly listed food, beverage

and packaging company in Southeast Asia as well as the Philippines' largest

corporation in terms of revenue, with over 17,000 employees in over 100

major facilities throughout the Asia-Pacific region.

Nestl Philippines, Inc. (NPI) today is a robust and stable

organization, proud of its role in bringing the best food and beverage

throughout the stages of the Filipino consumers lives. The Company employs

3,700 men and women all over the country, and is among the Philippines top

corporations. Its products are No. 1 or strong No. 2 brands in their respective

categories.
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These are the Top 2 Competitors of Universal Robina Corporation, the

San Miguel Corporation and the Nestle. SMC is one of the largest food and

beverage company in the Asia specifically the Philippines while Nestle is One

of the largest Food and Beverage Company Globally, They are Operating also

here in the Philippines. We identify that these are our competitors because of

the same alignment of product we are offering to the consumers.

CPM ANALYSIS

K1 K2 K3 K4 K5 K6 K7 K8 K9 Frequency Weights
K1 K1 K3 K4 K1 K1 K1 K1 K1 6 0.17
K2 K3 K4 K5 K6 K2 K8 K9 1 0.03
K3 K3 K5 K3 K3 K8 K3 6 0.17
K4 K4 K4 K7 K8 K4 5 0.14
K5 K5 K5 K8 K9 4 0.11
K6 K6 K8 K9 2 0.06
K7 K8 K9 1 0.03
K8 K9 6 0.17
K9 5 0.14
TOTAL 1 2 3 4 5 6 7 8 36 1.00
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CONCLUSION:

URC lead as they get 3.22 average weighted score while the SMC and

Nestle is tied at 3.03 average weighted score. That is how tight the

competition between URC, SMC, and Nestle. These three companies are both

exceed the average weighted score which is 2.75, they reach 3 above which

means they are very competitive to achieve those critical success factors. But

above all URC is still leading SMC and Nestle reaching 3.22 average that

results to have the best CSF Criteria.

CHAPTER VII
STRATEGIC AND LONG-TERM OBJECTIVES
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Through detailed research and close observation, researchers found out

that for over 63 years in the food and beverage industry, URC (also known as

Universal Robina Corporation) has managed to expand from different

countries in Asia to Australia and New Zealand. URC is engaged in a wide

range of food-related businesses, including the manufacture and distribution

of branded consumer foods, flour milling and pasta manufacturing, sugar

milling and refining, renewable energy via the bio-ethanol and biomass

cogeneration businesses (under Sugar Group), hog farming, manufacture of

animal feeds, glucose, soya products and veterinary compounds. This made

URC the first Philippine multination and one of the largest branded food and

beverage companies in the Philippines. However, successful organizations do

not stop after achieving their goals. Instead, such organizations create new

sets of goals, long term and short term, to be fulfilled in the future.

Written below are the main objectives of URC that needs to be achieved

to have continuous development within the organization:

Active participation on social networking sites. Nowadays, these sites have

the biggest impact in customer buying behavior. Putting more positive

advertisements on social networking sites will help the company increase their

sales. Also, online ads are more efficient and less expensive.

According to The Wall Street Journal, as of 2017, the companys total

shareholders equity is 77.56 B with 21.58 B return on shareholders equity.


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For the next three to five years, the companys return on shareholders Equity

must increase atleast 1% each year to increase the wealth of its shareholders.

By the year 2020 the company must have a new product that is flexible

enough to be liked by different countries it has been serving.

Recommended Vision and Mission Statement

B.1. Revised Vision Statement

To be the best Philippine food and beverage company. Delivering a high

quality product domestically and internationally.

B.2. Revised Mission Statement

Providing a high quality product that serves the customers &

community for better and safer environment, demonstrate corporate

responsibility while providing our members and employees with safe, cost

effective and innovatively working environment.

Criteria Yes/No Evaluation

Customers YES Providing a high quality product

that serves the customers and

community

Products YES To be the best Philippine food and

and beverage company. Delivering a

Services high quality product domestically


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and internationally

Delivering a high quality product


Markets YES
domestically and internationally

Technolog YES providing our members and

y employees with safe, cost effective

and innovatively working

environment

Concern To be the best Philippine food and


YES
for beverage company
Delivering a high quality product
Survival,
domestically and internationally.
Growth demonstrate corporate

and responsibility

Profitabilit

Philosophy YES Providing a high quality product

that serves the customers &

community for better and safer

environment
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Self- YES Delivering a high quality product

Concept domestically and internationally

Concern YES serves the customers &

for Public community for better and safer

Image environment

Concern YES providing our members and

for employees with safe, cost effective

Employees and innovatively working

environment
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CHAPTER VI

COMPANY ANALYSIS

Listed Strengths and Weaknesses

To summarize the internal analysis of Universal Robina Corporation below are

the list of the strengths and weaknesses:

Strengths

S1- Strong brand image and structure

S2- Strong network in key region (Philippines)

S3- Economies of scale; Price Competitiveness

S4- Availability of Products nationwide

S5- Innovative Culture

Weaknesses

W1- Company Mission not well-defined

W2- Obsolete Machineries

W3- Delayed Implementation of System Application

W4- High Employee turnover rate


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IFE MATRIX

Weight URC
IFE Rating Weighted
Score
S1 Strong Brand Image & Structure 0.17 3
0.50
S2 Strong Network in key region (Philippines) 0.11 3
0.33
S3 Economies of Scale; Price Competitiveness 0.03 2
0.06
S4 Availability of Products Nationwide 0.25 4
1.00
S5 Innovative Culture 0.06 2
0.11
W1 Company Mission not well defined 0.08 2
0.17
W2 Obsolete Machineries 0.03 1
0.03
W3 Delayed Implementation of System Application 0.08 1
0.08
W4 High Employee Turnover rate 0.19 2
0.39
TOTAL 1.00 2.67

S1 S2 S3 S4 S5 W1 W2 W3 W4 Frequency Weights
S1 S1 S1 S4 S1 S1 S1 S1 W4 6 0.17
S2 S3 S4 S2 S2 S2 S2 W4 4 0.11
S3 S4 S4 S4 S4 W3 W4 1 0.03
S4 W1 S5 S4 S4 S4 9 0.25
S5 W1 S5 W3 W4 2 0.06
W1 W1 W2 W4 3 0.08
W2 W3 W4 1 0.03
W3 W4 3 0.08
W4 7 0.19
TOTAL 1 2 3 4 5 6 7 8 36 1.00

Strong brand image (weight 0.17, rating 3)

URC has the strong brand image leading all the products of their

competitor, its very important to have strong brand image because this is
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what make the company gain competitive advantage and attract the

consumers because of having a good product line.

Strong network in key region (Philippines) (weight 0.11, rating 3)

URC has the strong connection in the Philippines, its key network helps

them to promote and distribute their products in order to prevent the

unavailability to the different regions.

Price Competitiveness (weight 0.3, rating 2)

Products produce from URC are very competitive when it comes to

pricing, it is very important to the internal key to have it because Filipinos

always want affordable prices with good products.

Availability of Products Nationwide (weight 0.25, rating 4)

Due to have the strong connection of key regions in the Philippines,

URC transport their products just in time to the specific region. They have

been using this philosophy JIT because they knew that URC products are in

demand in the market.

Innovative Culture (weight 0.06, rating 2)

Aside of using JIT philosophy, URC applied also the Kaizen Philosophy

developed by Toyota. They trust this Philosophy in order to maintain their

competitive advantage to others and to help also the management and

organization to run the business well. Continuous Improvement is one of the

key aspect in URC.

Company Mission not well defined (weight 0.8, rating 2)


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Company objectives are not clear, their mission is also state in the

vision statement.

Obsolete Machineries (weight 0.3, rating 1)

Machines is also one of the important in the URC, Its important to

solve this issues inside the plant because sometimes newer machines that is

using for production is not functioning well so when it is not working the

production stops until they fix.

Delayed Implementation of System Application (weight 0.8, rating 1)

It is risky for the production to Delay the implementation of system

application because they arent using manual operation inside the plant.

Scheduling is very important to avoid delayed operations.

High Employee Turnover Rate (weight 0.19, rating 2)

High employee turnover rate is one of their issues in the organization,

Management should have implement trainings and improve working

environment.

Conclusion

URC has a lot of issues inside the organization but its good that they

are strong when it comes to the promotion and availability of products. URC

also should work for their companys objectives in order to have a clearer

goal. Its manageable but its risky for them if they wont focus on this issues.

Besides, URC has established strong brand image and strong connection
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nationwide, This help them a lot because they have already the advantage but

they should take care of their internal organization because it might affect

their brand image and also the whole company.


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CHAPTER VIII

STRATEGY FORMULATION

Generation of Strategic Options

Internal-External (IE) Matrix


THE IFE TOTAL WEIGHTED SCORE
THE EFE TOTAL WEIGHTED SCORE

EFE= 2.94 STRONG AVERAGE WEAK


IFE=2.67 (3.0-4.0) (2.0-2.99) (1.0-1.99)

HIGH I II III
(3.0-4.0)

MEDIUM IV V VI
(2.0-2.99)

LOW VII VIII IX


(1.0-1.99)

Table 13 IE Matrix of Universal Robina Corporation

The organization is average both internally and externally, which falls to the

hold and maintain quadrant. Market Penetration and product development

are the two most commonly employed strategies.


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Recommended Business Strategies

URC ensures responsibility and accountability on how the company advertises

and sells its products and clearly communicates the value proposition of each

brand to the consumer. URC ensures that the brand delivery and experience

is aligned to how it is communicated so that the company's customers are

well informed on the benefits of the product.

Universal Robina Corporation should focus on differentiation strategy. They

should differentiate their products with their competitors by giving them

better customer satisfaction and quality with in an acceptable price limit. They

should also reduce the risk of complexity of supply chain and lower

attractiveness for discounters to follow this differentiation strategy and try to

grow their products through innovation and renovation and target at long

term performance.

URC is one of the leading company in food manufacturing industry. They have

a variety of successful products. The way of innovative thinking and quality of

the products made them a market leader in particular sector.


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The cost of raw materials has been on a rise over the past few years

which have caused an increase in the production costs. Acquiring local

farms for their raw materials will reduce their production cost and

hence they can improve their profit.

Educating the consumers through campaigning is a possible way to

grow their business. As URC is producing food and beverage products,

they can use the packaging as a means to describe the nutrition

benefits of their products.

Currently, URC sells its products through wholesalers and retailers. URC

can improve its profit margin further by establishing their own retail

outlets.

Monitoring and evaluating their products and market continuously gives

them a clear vision of their market position and it will helps them to

shape a proper competition to take advantage over their competitors

and also to set up a better brand image.

Advanced technology and innovative products to access new capability.

Maintaining a good customer relationship according to the taste and

demand of emerging market.

Market Development This strategy includes global expansion. The

company is already operating all over the country, they must now expand

more internationally to gain brand recognition and to compete side by side

with the foreign brands. In the current world, expanding is a way to survive
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the harsh environment of competition in the industry. It is important to

introduce present products and services into new geographic area because

maximizing the stockholders investment through expansion will have a

greater chance of getting back the ROI and profit of the company.

Product Development The company must also start to develop more its

product. 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.

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. Thus it must

be proactive to external change, formulated and last but not least it must

support the wider corporate strategy, a critical success factor for large,

multinational corporations. This is necessary just to maintain the companys

global competitive position as a market leader, let-a-lone increase sales.


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Recommended Organizational Techniques

In order to support the needs of the different departments within their

company in achieving their goals and objectives. The following are the

supporting units:

Human Resource

The human resource department will conduct more employee trainings

and seminars to all respective department to harness their abilities and skills.

Employee training and development programs also help with employee

retention. Studies of what factors influence employee retention suggest that

working with good colleagues, challenging job assignments and opportunities

for career growth and development are among the top reasons for staying

with a company. It will also prepare staff to successfully carry out their task

and mission to attain the goals of organization. It will also contribute job

satisfaction, worker morale and improves productivity performance. If the

company will have satisfactorily employees, it will surely achieve its goals,

vision and mission.

Information Technology
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The Information Technology department should continually maintain

mainframe systems and databases to the company. They also improve and

provide every department within the company the information needed and

store information coming from other departments in the database. They

should also continue to expand their knowledge in providing communication

system within external and internal customers such as employees, suppliers

and customers. They will also be required to respond fast, maintain and repair

any aborted programs and utilize the systems within the company.

Finance/Accounting

This department should improve in managing organizations cash flow

and ensuring there are enough funds available to meet the day-to-day

payments. Also, they should keep in track of their cash flows and financials

and should maintain credibility and trust in reporting financial statements in

order to avoid frauds and theft within the company. They should also improve

its advising and sourcing longer term financing of the company. The

accounting/finance department should provide funds and budgets to every

department in order to carry out their task. Also, they should maintain great

relationships with the vendors by making sure that the accounts payable is

being paid.

Logistics Department
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The logistics department should conduct an effective distribution

logistics with accurate inventory and warehousing, improves capacity

planning, controlling the flow of goods and services in order to minimize

discrepancies and frauds within the organization. They should accommodate

all organizations department demand in a sense that their inventory can be

tracked, transported and stored. The logistics department should ensure that

deliveries of finished product to the end-users will be delivered within the

specific lead time in order to improve its customer service management

process. They should also select the best mode of transportation while

delivering the goods to the place of destinations. This department should

coordinate well with their party logistics and to ensure that the business goals

of the organization are in synchronization with logistics systems, to ensure

that timely supply and payment of goods and reduce inventories. Also, they

should provide the materials that every department needed within specific

time. The logistics department should minimize their holding cost to have

better flow of cash flows of company.

Sales and Marketing Department

This department should continue to expand their knowledge and skills

in terms of research and development to have better Promotions strategies

that will attract many consumers and continue to patronize their product,

improving their sales presentations, closing deals, improves customer service

to manage customer relationships as well as developing product, pricing and


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distribution planning. They should be more aware of behavior of consumers

such as their buying patterns, needs and their wants and their demands. Also,

the company should know their target market well. The marketing

department should track their monthly sales in their database to provide

insights about the performance of their company also the goals and interests

of individual customers. Identifying leads and tracking its sales funnel is an

important part of the process when planning inbound marketing investment.

Overall Evaluation of the Strategies

Strategy is a plan of action designed to achieve a particular goal

or objective. And for a company to avoid making mistakes and improve

their strategy if necessary, they have to evaluate their strategies. Every

company needs to evaluate their strategy in order for them to verify

and analyze the effectiveness of a specific strategy and improve overall

business performance. Subject to the presented tables, to achieve an

effective market penetration strategy it must be developed.

Successfully selling the particular product, where its sales volume is

much greater compared to the total target market of the product

indicates potential increase in sales. Which means, the smaller the

market share the bigger the investment should be provided in this

matter. An established product holds a huge market share, for as much


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as a high market penetration is concerned this means the company has

become a market leader. By virtue of strong competition existing in the

companys industry the company should also consider developing their

products to gain and maintain competitive advantage. Product

development involves modification of their existing product, its

presentation, or formulation of an entirely new product to meet or

exceed the satisfactory level of their consumers. It would be highly

beneficial for the company if they will be able to achieve a much larger

market share or higher market penetration and a great product

development. And it will be a lot harder for competitors to beat them.