Group5 (3-4 MWF)

Saint Louis College
San Fernando City, 2500 La Union

College of Commerce, Secretarial and Accountancy
Company Analysis
(Universal Robina Corporation)
(Jollibee Food Corporation)
(San Miguel Corporation)
In Partial Fulfilment of the Requirements

in
Financial Management 7
Submitted to:
Mrs. Feliza Villanueva
Submitted by:
Camille Gwen Obaldo
Joy Rimando
Nikka Libao
Lucks Mae Madayag
Charmaine Jane Raa
Jenny Rose Cariaga
Maria Cecilia Arranz
Jenimie Reyes
(Time Schedule: 3:00-4:00 MWF)

August 17, 1015
TABLE OF CONTENTS
I.
COMPANY PROFILE
A. When and how the company was established and who were
responsible for setting it up.
B. Evolution of the company
C. Directors and Managers
II.
UNDERSTANDING THE CULTURE
A. Management principles, styles and practices

B. Standing of the firm relative to:
a. Industry
b. Brand name acceptance
c. Production facilities and their locations
d. Marketing and distribution outlets
e. Pricing
C. Product Diversification
D. Investment Diversification
III. ANALYSIS
IV.
REFERENCES
UNIVERSAL ROBINA CORPORATION

I. COMPANY PROFILE
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 50 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 million band
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 snack foods and beverage company in
the Philippines. It 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 excellence through
its groundbreaking products, wide distribution network, and
effective marketing. This is also evident in URC's formidable

market leadership in snack foods 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, consumercentric 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.
a. Company History
Universal Robina Corporation (URC) traces its beginnings all
the way back to 1954. John Gokongwei was doing very well then as
a trader/importer. He had learned the trade when his father died
before the war, and had worked hard through the war and post-war
years to prosper. However, while he thrived, he took a long hard
look at his company, and correctly predicted that trading would
remain a low-margin business. On the other hand, a successful
manufacturer controlling its own production and distribution
would command more profitable margins. Mr. John decided to
construct a corn milling plant to produce glucose and cornstarch,
Universal Corn Products (UCP), the first linchpin of the company
that would become the URC we know today.
For a time, business was good. However, Mr. John was still
looking ahead, working with an eye towards the future. While the
business was doing very well, it was producing essentially a
commodity, which a customer could easily access elsewhere. To
stay ahead in the game, Mr. John had to diversify by producing
and marketing his own branded consumer foods, similar to the
multinational companies in the country like Nestle and Procter &
Gamble. In a sense, he wanted to put up the first 'local' MNC,

borne out of their best practices.
Thus, in 1961, Consolidated Food Corporation was born. Their
first 'home run' product was Blend 45, the first locallymanufactured coffee blend, dubbed as the "Pinoy coffee". This
became the largest-selling coffee brand in the market, even
beating market leaders Cafe Puro and Nescafe.
After coffee came chocolates. Nips, a panned chocolate were
a staple of Filipino childhood.
In 1963, Robina Farms started operations, beginning with
poultry products. This was also the beginning of the vertical
integration of the Gokongwei businesses, as the farms would be
able to purchase feeds from UCP in the future. Later that decade,
Robichem Laboratories would be put up, to cater to the veterinary
needs of the farms businesses. Robina Farms expanded as it
entered the hogs business in the latter part of the 70s.
1966 saw the establishment of Universal Robina Corporation,
which pioneered the salty snacks industry through Chiz Curls,
Chippy, and Potato Chips, under the "Jack 'n Jill" brand. Other
snack products would follow over the years, as the company
successfully introduced market leaders like Pretzels, Piattos,
and Maxx.
The coming decades saw more acquisitions and expansion. In

the early 1970s, the family entered the commodities business
through the formation of Continental Milling Corporation, for
flour milling and production. The late 1980s brought the
acquisition of three sugar mills and refineries, under URC Sugar.
These two businesses provided stable cash flows, and allowed for
further vertical integration in the supply chain, to help URC
weather any volatility in the cyclical commodities markets. In
line with this strategy, the late 1990s saw the entry of URC into
the plastics business, through URC Packaging.
While the businesses became more diversified, the companies
were slowly integrated in order to streamline and minimize costs.
In 2005, the present structure of the group was completed. All
the different companies are now organized under the Universal
Robina Corporation umbrella, divided into 3 focused groups:
the Branded Consumer Food Group, comprised of BCFG Domestic

(including packaging) and International
the Agro-Industrial group, comprised of Universal Corn

Products, Robina Farms, and Robichem
and the Commodities group, with the Sugar and Flour

divisions
b. Business Operations
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.
c. Mission, Vision and Core Values
Mission
branded food product companies in the Philippines and has a
growing presence in other ASEAN markets.
Vision
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.
Values
Passion to Win: We build organizational capability by being
entrepreneurial and proactive, driven by a sense of urgency
and purpose. We continuously challenge ourselves to deliver
world-class brands and consistently rally our people to
strive for excellence.
Dynamism: We cultivate a culture of innovation and
productive working relationships. We continuously find ways
to improve organizational and people capabilities to meet
constantly challenging consumer needs.
Integrity: We are guided by transparency, ethics, and
fairness. We build the business with honour and are
committed to good governance. Our processes and products
meet the highest standards. We are credible in our dealings

with both internal and external stakeholders.
Courage: We seize opportunities in building long-term,
sustainable businesses. We make tough people and business
decisions to ensure competitive advantage.
Looking ahead to a world without borders, URC, currently
the Philippine food and Beverage Company with the widest
geographical footprint, has expanded steadily outside the
country. At present, URC maintains manufacturing facilities in
Vietnam, Thailand, Indonesia, Malaysia and China and sales
offices in Singapore and Hong Kong. Some of the all-time Filipino
favourite Jack n Jill products such as Piattos, Roller
Coaster, Cloud 9, and Cream-O, and C2 Cool and Clean Green Tea,
as well as other new and exciting brands, can be found on
supermarket shelves and in neighbourhood stores throughout the
region. URC International grew tremendously in the past years and
has become a major player in the Southeast Asian region. Fuelled
by its leadership in Thailand and Vietnam, and the steady growth
of its presence in Malaysia, Singapore, Indonesia, Hong Kong and
China, URC continues to impart joy in the region using the same
winning formula that has delighted Filipinos through the years.
URC has been a part of the Filipino consumers lives for

decades. However, the Company also takes much pride in its
successful expansion beyond Philippine shores. Over the past few
years, it has steadily built a presence in Southeast Asia and
China with URC Vietnam at the forefront. URC Vietnam only started
operations in 2004 but has taken giant steps since then. It is
currently the largest (in terms of revenues) among the different
country operations, second only to the Philippines. In October
2013, C2 became the #1 Ready-to-drink Tea product in the whole of
Vietnam*, besting even the strongest local and foreign
competitors. At present, URC Vietnam continues to expand its
innovative portfolio of snack foods and beverages. It also
continues to strengthen its operations with plans to build a new
factory in Quang Ngai (in central Vietnam) to complement the
existing Ho Chi Minh and Hanoi facilities. It is perhaps hard to
believe that a Filipino company can achieve so much success in a
country that is more than 900 miles away, speaks an entirely
different language, and has very unique influences and tastes.
But URC has a couple of things going for it: the ability to
localize, and a universal vision and core values.
Localization can mean many things but for URC, it means the
ability to adapt the products and the business operations to an
entirely different country or situation but still offering
something distinctive. One example in Vietnam is that the Company
has successfully localized both the product and the marketing

for C2. Vietnam has a deep-rooted tea culture and because of
this, the Company decided to offer and push C2 more than any
other product. C2, being freshly brewed from green tea leaves,
caters very well to this traditional tea-drinking culture and yet
offers something new with its refreshing fruity flavours. Even
the way C2 is marketed speaks of this immersion into the Vietnam
culture. URC Vietnam has been running their Only One Love, Only
C2 brand message across its advertising and promotional efforts
and it has created a strong affinity with the local consumer.
This adaptation also carries over to the way the Company runs its
operations from purchasing (e.g. using locally grown green tea
leaves) all the way to distribution.

BOARD
The Board has adopted the Revised Corporate Governance
Manual in 2010 for the Company. The Manual elaborates on the
governance roles and responsibilities of the Board and its
Directors. The Board ensures that all material information about
the Company is disclosed to the public on a timely manner. The
Board likewise is strongly committed to respect and promote the
rights of stockholders in accordance with the Revised Corporate
Governance Manual, the Companys Articles of Incorporation, and
By-Laws.
Composition
The Board is composed of nine directors (four executive
directors, three
non-executive directors, and two independent directors)
with diverse
backgrounds and work experience
None of the independent directors own more than 2% of the
Companys
capital stock
Different persons assume the role of Chairman of the Board
and CEO
Attendance of Directors
January 1 to December 2013
Date of Election: April 18, 2013
Number of meetings during the year: 9
Role
A Directors Office is one of trust and confidence. A
Director should act in the best interest of the Company in a
manner characterized by transparency, accountability, and
fairness. He should also exercise leadership, prudence, and
integrity in directing the Company towards sustained progress.
BOARD OF DIRECTORS
John L. Gokongwei, Jr.

DIRECTOR, CHAIRMAN EMERITUS
James L. Go
DIRECTOR, CHAIRMAN
Lance Y. Gokongwei
DIRECTOR, PRESIDENT
AND CHIEF EXECUTIVE OFFICER
Patrick Henry C. Go
DIRECTOR, VICE PRESIDENT
Frederick D. Go
DIRECTOR
Johnson Robert G. Go, Jr.

DIRECTOR
Wilfrido E. Sanchez
DIRECTOR
Robert G. Coyiuto, Jr.

DIRECTOR
Pascual S. Guerzon
DIRECTOR
EXECUTIVE OFFICERS
James L. Go
CHAIRMAN
Lance Y. Gokongwei
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Patrick Henry C. Go
DIRECTOR, VICE PRESIDENT
Cornelio S. Mapa, Jr.
EXECUTIVE VICE PRESIDENT AND MANAGING DIRECTOR,
URC BRANDED CONSUMER FOODS GROUP
Constante T. Santos
SENIOR VICE PRESIDENT
Bach Johann M. Sebastian
SENIOR VICE PRESIDENT
Geraldo N. Florencio
FIRST VICE PRESIDENT
Chona R. Ferrer
FIRST VICE PRESIDENT
Ester T. Ang
VICE PRESIDENT TREASURER
Anne Patricia C. Go
VICE PRESIDENT
Alan D. Surposa
VICE PRESIDENT
Ma. Victoria M. Reyes- Beltran
VICE PRESIDENT
Michael P. Liwanag
VICE PRESIDENT
Socorro ML. Banting
ASSISTANT VICE PRESIDENT
Rosalinda F. Rivera
CORPORATE SECRETARY
II. Understanding the Culture

Insider Trading Policy
The Company observes strict compliance with the Exchange's
Trading Rules and Restrictions, emphasizing the need for
transparency and fairness in its transactions in order to fully
apprise its investors of its current activities The Company is
guided by, observes and complies with provisions of the
Securities Regulation Code (RA Act No. 8799) with regard to the
Prohibition on Fraud, Manipulation and Insider Trading.
The Company complies with the provisions of law set forth in
the Securities Regulations Code and shall implement policies and
procedures to prevent the unauthorized disclosure or misuse of
material, non-public information in securities trading to
preserve the reputation and integrity of the Company.
Conflict of Interest Policy
The Company's Code of Business Conduct and Conflicts of
Interest Policy require employees to make a conscious effort to
avoid conflict of interest situations; that his judgment and
discretion is not influenced by considerations of personal gain
or benefit. A conflict of interest may also occur because of the
actions, employment, or investments of an immediate family member
of an employee.
Related Party Transaction

Describe the company's policies and procedures for the
review, approval or ratification, monitoring and recording of
related party transactions between and among the company and its
parent, joint ventures, subsidiaries, associates, affiliates,
substantial stockholders, officers and directors, including their
spouses, children and dependent siblings and parents and of
interlocking director relationships of members of the board.
Stakeholders Health, Safety and Welfare

Stakeholders
The Company is committed to undertake all reasonable steps to
ensure the health, safety and welfare for the best interest of
our stakeholders and the communities where we live and work by
complying with the provisions of law, industry rules and
regulations, standards of independent accreditation bodies where
the Company obtained accreditation, and contractual obligations.
This policy aims to:
1. Provide a guiding principle to ensure health, safety and
welfare of the Company's stakeholder.
2. Identify responsibility and accountability of every

personnel and department in the organization to ensure the
health, safety and welfare of stakeholders.
3. Integrate health and safety practices in all activities to
ensure efficiency and quality of products and services.
This policy shall define the guiding principles and
responsibilities for managing health, safety and welfare of the
stakeholders of JG Summit Holdings, Inc. (JGSHI), its
subsidiaries and affiliates.
Employees
The Company abides by safety, health, and welfare standards
and policies set by the Department of Labor and Employment.
Likewise, the Company has Security and Safety Manuals that are
implemented and regularly reviewed to ensure the security,
safety, health, and welfare of the employees in the work place.
To ensure that the employees of the Company maintain a
healthy balance between work and life, health and wellness
programs are organized for these employees. Professionals are
invited to conduct classes of Zumba, Tai Chi, and other
activities in our work site. The Company has also partnered with
fitness gyms to offer special membership rates to employees. This
is in addition to the free use of gym facilities in the different

installations.
Year on year, the Company has facilitated vaccinations such
as against flu and cervical cancer that are offered not only to
employees but to their dependents as well. The Company has worked
with healthcare providers in identifying top diseases based on
utilization report and has invited resource speakers to talk
about preventive measures.
To ensure the safety of the Company's employees, a Corporate
Emergency Response Team (CERT) has been created that will be
activated and will become the "command center", orchestrating
initiatives across the conglomerate during a crisis. Also, the
CERT shall be responsible for the periodic review of contingency
plans and the institution's emergency preparedness and response
procedures to ensure that effective responses and responsible
policies are in place to deal with crisis or emergency
situations.
Company Trainings and Development Programs for Employees
The Company continuously provides learning and development
opportunities for its employees through the John Gokongwei
Institute for Leadership and Enterprise Development or what is
commonly known as JG-ILED.
JG-ILED is the leadership platform for systematic and

sustained development programs across the conglomerate. Its
mission is to enable a high performing organization that will
facilitate the learning process and develop the intellectual and
personal growth of all employees through targeted and customized
trainings and development programs.
JG-ILED curriculum comprises of the following:
Core Program - programs designed to ensure employees have the
foundation needed to perform job effectively. It also covers key
people skills training that will help supervisors and managers in
leading their teams to perform to the optimum level.
Basic Management Program (BMP)
Coaching for Effectiveness (CFE)
Problem Solving and Decision Making (PSDM)
Employee Discipline Program (EDP)
Achieving Customer Service Excellence (ACE)
Management Development Program a programs that aims to enhance

the leadership capability and business acumen of all leaders
Finance for Senior Executives
Strategic Communication Program
Executive Coaching Program
Advanced Negotiation Skills
Leading and Managing Change
Resources Development Human Program - courses designed to ensure

employees have a common understanding of the HR processes and
systems by which the Company operates.
Job Evaluation
Competency-Based System
Organization Design and Manpower Planning
Labor Relations Management
Performance Management System
Targeted Selection-Competency Based Interviewing
Creditors
The Company upholds creditors' right by honoring contracted
obligations and providing information required under the Revised
Disclosure Rules and the Securities Regulation Code, if
applicable, audited financial statements prepared compliant with
applicable financial reporting standards, and other periodic
reports compliant with the provisions of law, loan covenants and
other regulatory requirements.
This policy aims to:

1. Provide the guiding principles to ensure protection of
creditors' rights.
2. To identify the duties of responsible departments in
protecting the rights of creditors.
This policy shall cover the documentation, reporting and
disclosure requirements to promote transparency for the
protection of the rights of creditors of JG Summit Holdings, Inc.
(JGSHI), its subsidiaries and affiliates.
B. Standing of the firm relative to:

a) Industry
Universal Robina Corporation has great reputation
in the industry for being 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 50 years since John Gokongwei, Jr. established
Universal
Corn
manufacturing
Products,
plant
in
Pasig,
Inc,
in
1954.
cornstarch
URC
is
the
leading branded snack foods and Beverage Company in the

Philippines. URC is the first "Philippine Pan ASEAN
Multinational" and has managed to expand to other Asian
markets. URC also has a growing regional presence in
the branded consumer foods segment and has established
operations
Hong
in
Kong,
Thailand,
Singapore
and
Malaysia,
Vietnam.
Indonesia,
URC
China,
continues
to
launch products in each of its international markets,

both from its existing portfolio of products and brands
and new products specifically formulated and branded
for
the
local
markets.
In
its
most
established
international operations in Thailand, URC has attained
leading
market
share
positions
in
several
product
categories
URC has expanded its reach to New Zealand and
Australia through the acquisition of Griffin's Foods, a
leading snacks player in New Zealand. In November 2014,
the Company acquired 100% shares of NZ Snack Foods
Holdings Limited, the holding company of Griffin's Food
Limited, a snack food company in New Zealand, from
Pacific Equity Partners. URC also entered into joint
ventures with Calbee, Inc. to form Calbee-URC, Inc.
b) Brand name acceptance

URC
has
proven
that
they
are
trailblazer
in
manufacturing with a strong and loyal consumer base.

URC is the customers first choice in fun snack. URC is
the leading branded snack food and beverage company in
the Philippines, which enjoys a loyal and consistent
following from its many delighted customers. Over 40
years of operation 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.
c) Production facilities and their location
The location and production facilities of URC are the
following:
Pasig City Production of flour

Calabarzon Consumer Goods, Packaging and container,
Food production
Central Visayas Consumer Goods
Central Luzon Food and beverages
Cebu and Manila Milling production
Novaliches, Rizal, Bulacan and Batangas Hog
production
Toronto, Canada Pharmaceutical
Ballarat, Austria Food production
Noida, India Food and Beverages
Bangkok, Thailand Consumer goods, Food production
Jakarta, Indonesia Consumer goods
URC uses the modern and larger facilities compare to

other company.
d) Marketing and distribution outlets

URC has consistently grown due
innovations,
effective
efforts
strong
distribution
marketing
caused
URC
campaigns.
to
have
to
its
constant
capabilities,
The
market
company's
leadership
and
constant
in
salty
snacks, candies, chocolates, canned beans, and ready-todrink tea while maintaining strong positions in coffee,
biscuits and noodles. Megabrand Jack 'n Jill offer one of
the most diverse portfolios of snack food products in the
Philippines.
support
products
URC
devotes
advertising
and
and
further
significant
branding
expand
to
market
expenditures
differentiate
share
both
in
to
its
the
Philippines and in its overseas markets, including funding

for advertising campaigns such as television commercials
and radio and print advertisements, as well as promotions
for new product launches by spending on average 8%of its
branded consumer food divisions net sales per year
The
Companys
branded
consumer
food
distributed
to
approximately
114,000
Philippines
and
sold
its
through
products
outlets
direct
sales
in
are
the
force,
regional distributors and independent business managers. URC

intends to enlarge its distribution network coverage in the
Philippines by increasing the number of retail outlets that
its regional sales force and distributors directly service.
By
deploying
larger
and
financially
stronger
regional
distributors over the next two years, URC plans to increase

the
number
of
outlets
serviced
directly
from
114,000
accounts being serviced as of fiscal year 2006 to 120,000

accounts. URC also plans to increase the product focus of
its distribution network by ensuring that relevant products
are targeted towards appropriate retail outlets. Company has
developed an effective nationwide distribution chain and
sales
network
advantage.
primarily
that
The
to
it
Company
believes
sells
supermarkets,
as
provide
its
its
branded
well
as
competitive
food
directly
products
to
top
wholesalers, large convenience stores and two types of subdistributors, large scale trading companies and independent
business managers which in turn sell its products to other
small retailers and down line markets through the Companys
Grand slam Program, an innovative distribution scheme for
downscale
accounts,
which
enabled
URC
Philippines
to
solidify its presence in sari-sari stores and groceries,

effectively locking out competitors in the consumer foods
segment
in
the
Philippines.
The
branded
consumer
food
products are generally sold by the Company either directs

from delivery vans to small retail outlets or by travelling
salesman
to
wholesalers
or
supermarkets,
and
regional
distributors with delivery subsequently being undertaken by
third
party
road
carriers.
Direct
delivery
sales
are
normally made on cash basis, while 15- to 30- day credit

terms are extended to wholesalers, supermarkets and regional
distributors.
The
Company
believes
that
its
emphasis
on
marketing, product innovation and quality, and strong brand

equity has played a key role in its success in achieving
leading market shares in the different categories where it
competes.
e. Pricing
URC is competitive enough in terms of pricing. They
make sure that the prices of their products are affordable.
URC also gain the loyalty of the consumer by serving the
industry over 50 years.
Universal Robina Corporation (URC) traces its root
to
1954
when
founder
John
Gokongwei
diversified
his
trading
company into corn starch production (United Corn Products) and

counts
its
production
of
Blend
45,
the
first
domestically
manufactured instant coffee, as its first successful venture. URC

has since then expanded exponentially and is currently involved
in
plethora
of
food
related
businesses,
including
the
manufacture of branded consumer foods, hog and day-old chick
production, manufacture of animal and fish feeds, glucose and

veterinary
compounds,
flour
milling,
and
sugar
milling
and
refining.
URC has several branches that provide a variety of
products. The Branded Food Group (BCF) is responsible for the
distribution
of
biscuits,
baked
products.
The
farming,
the
diverse
goods,
mix
of
snacks,
beverages,
noodles
Agro-Industrial
manufacture
and
Group
chocolate,
handles
distribution
candy,
and
tomato-based
hog
and
of
animal
poultry
feeds,
glucose and soya products, and the production of animal health

product. The Commodities Group meanwhile operates URCs sugar and
flour divisions.
URC is part of the JG Summit (JGS) conglomerate which
includes
air
transport,
hotels,
banking,
telecommunications,
petrochemicals, real estate and property development, and food

manufacturing businesses.
The Gokongwei group has struck a deal to buy the remaining

27.1 percent stake in Manila Electric Corp. held by the San
Miguel group.
Universal Robina Corp., the manufacturing unit of taipan
John Gokongweis JG Summit Holdings, is seeking shareholders
approval to diversify into the power generation business.
The company is putting up a 40-megawatt biomass plant at one

of its sugar mills site. This is seen to complement URCs sugar
milling business as it will be using molasses which are byproducts of its sugar milling operations.
Biomass plants generate power using plant or animal matter
as fuel. In the case of sugar mills, these produce large
amounts of bagasse as waste which can still be used to fuel
the biomass plant.
URC is investing about $27 million for the construction of
an ethanol plant in Mahhuyod, Negros Occidental as part of
the firms sugar mill.

URC investing in a state-of-the-art
cogeneration
facility
in
SONEDCO.
biomass-fired
Costing
around
power
US62
million, the power plant is expected to produce 46 megawatts

of electricity from bagasse.
III. Analysis
branded food product companies in the Philippines and has a
growing presence in other ASEAN markets. And it is listed in the
Philippine Stock Exchange. Everyone can invest their money on the
URC but they must first study if its worth investing.
URC was established and continuously serving consumers since
1954. Based on its existence for a long period of time, we can
say that URC is profitable (because of its wide range of
consumers, and its different products being produce), and stable

(for it has been established long time ago and still growing to
the present). 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 million
band 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 snack foods and beverage
company in the Philippines. It is the first "Philippine Pan ASEAN
Multinational" and has proven itself to be a trailblazer in
manufacturing with a strong and loyal consumer base. So we can
now formulate ideas little by little regarding of the given
information's above. It has a great standing in the industry
since it has been in operations for over 50 years. And URC gain
peoples loyalty because of their wide range of products, and
their wide and excellent strategy of distribution and marketing.
But these are only the first step in analyzing companies. It
is only the qualitative side and we cannot conclude yet if it is
a good investment or not. We can only decide a little or we are
only guided by some of the information's given. And above all
this, we can say that it is good in investing at URC (based on
the information's gathered).
IV. REFERENCES
http://www2.urc.com.ph/
http://books.google.co.jp
http://journals.upd.edu.ph
http://business.inquirer.net
http://archive.sunstar.com.ph
http://philstar.com
JOLLIBEE FOOD CORPORATION

I. COMPANY PROFILE
Jollibee is founded by Filipino-Chinese Tony Tan
Caktiong and his family began as a two-branch ice cream
parlor in 1975 at Cubao offering hot meals and sandwiches.
The original company name was Jolibe then Mr. Lumba next
reformed the name Jolibe to Jolly Bee and made the two words
form a single name Jollibee. Their success is phenomenon.
Fast food popularity begins 1960sand the pioneers of this
are Ray Kroc McDonalds and Colonel Sanders Kentucky
Fried Chicken. They have the concept of Serve time
constrained customers, good quality food, clean dining
environment, having a low price and give convenience to the
customer. Almost 15 years when Jollibee entered the industry
but they rapidly became successful to other fast food that
came first. It was incorporated a 100% Filipino company 1978
with seven outlets to explore the possibilities of
a hamburger concept. 1979 is the introduction of Spaghetti
Special. 1980, First TV commercial was launched by Jollibee,
Chicken joy and French Fries are launched and it is the
introduction of Jollibee mascot debuts. Then Jollibee

Palabok Fiestas introduction was 1982.
In 1984, Jollibee hit the P500 million ales mark,
landing in the Top 500 Philippine Corporations. Their first
international venture was at Singapore by 1985 and they
already have 31 stores by 1986. In 1987, barely 10 years
in the business, Jollibee landed into the countrys Top 100
Corporations. It became the first Philippine fast food chain
to break the P1 billion sales mark in 1989. In 1993,
Jollibee became the first food service company to be listed
in the Philippine Stock Exchange and the new Main Office
site has been moved to Jollibee Centre Building in Ortigas
Center, Pasig. By 1994 he got Greenwich for Jollibee
expansion into the pizza-pasta segment and by the end of the
year there has been already 148 Jollibee stores nationwide.
By 1995 Jollibee acquires franchise of Delifrance and
Jollibee success fully opens stores abroad: Guam, Dubai,
United Arab Emirates, Kuwait, and Jeddah, and Kingdom of
Saudi Arabia. By 1996 By the Far Eastern Economic Review
Jollibee has been cited again as one of the leading
companies in Asia having cited it last 1994 and on the same
year Marys Chicken was born last July 10. It is a semi-self
service restaurant and another Jollibee subsidiary it is
also in the same year of launching of Jollibees Amazing

Aloha, opening of first Jollibee in Hongkong and the
launching of the project Maagaang Pasko sa Jollibee and
Chikiting Patrol: at Home AkoDito. These projects main
objective was to protect and contribute to the development
of the Filipino children. By 1999 Jollibee opened 50 stores
nationwide which makes a total of 350 stores and Cheezy
Bacon Mushroom Burger has been introduced to its line of
specialty burgers. By 2000,31 more Jollibee stores opened,
bringing the total to 381 stores and Jollibee obtains
Chowking Foods Corporation, Asian Business Magazine ranks
Jollibee as the Most Admired Company in the Philippines and
the 3rd over-all in Asia, surpassed only by global giants
General Electric and Microsoft and reaching a system wide
sales of P20 billion. Jollibee also acquired Red Ribbon
Bakeshop on2005, another popular fast-food restaurant in the
Philippines. In2006, they acquired the Dlifrance which
further expanded its penetration in the food service
industry particularly in the French caf-bakery, a growing
segment of the Philippine food market.
And until now Jollibee Corporation is continuously
expanding and they already acquired MangInasal last Oct. 19,
2010. It was their competitor in their chicken product, but
now it is one of their sister company. It is now part of

Jollibee Food Corporation. Among all the fast food chains
here in the Philippines, the Jollibee Food Corporation is
considered to be the most popular choice among all the
Filipinos. The Jollibee Food Corporation has been serving us
with their delectable collection of fast food service and
cleanliness offered by Jollibee is an advantage. Restaurants
are not as quick as a Jollibee QSR which is an advantage for
Jollibee having a superior service, and finally, Jollibee
prices are reasonably priced that is has been a pinoy
favorite.
All Filipino will love Jollibee, if a new Jollibee
branch will be build Filipino wait until it will open and
patronize it. The threat of substitute products is
considerable. Local street food and high-end restaurants
form two ends of a range of substitutes. Potential entrants
face entry barriers that will hinder them from entering
the industry. These are the inability to gain access to
technology and specialized know-how, brand preference and
customer loyalty, capital requirements, economies of scale,
and strategically situated distribution channels. But
Jollibee can overcome with this. Anew substitute for
Jollibee product will be hard to enter to the industry and

compete with Jollibee.
From Ice Cream Parlor to Fast Food Empire: Tony Tan
Caktiongs Story
Jollibee is a registered trademark in the Philippines and
other countries.
Background
From modest beginnings to the top of the world are
the words that succinctly sum up Tony Tan Caktiongs story,
today president and CEO of Jollibee Foods Corporation, the
biggest fast food restaurant chain in the Philippines.
Born in a poor family who migrated from south-eastern
China to the Philippines in search of a better life, he
became involved in the restaurant business from an early age
when his father opened a restaurant. The restaurant became
profitable with the help of all family members and this
success enabled Mr. Caktiong to pursue a degree in chemical
engineering in Manila.
At the age of 22, inspired by a visit to an ice cream

plant, he set out to gain his own foothold in the restaurant
business: relying on family savings, he seized

a franchising opportunity with Magnolia Dairy Ice Cream and
opened two ice cream parlors. In response to customer
requests, he added hot meals and sandwiches to the menu,
which soon proved a lot more popular than ice cream. Three
years later, in 1978, he decided to capitalize on this
development, discontinued the Magnolia franchise and
converted his parlors into fast food outlets.
Trademarks and Branding
Tony Tan Caktiong, founder, president and CEO of

Jollibee Foods Corporation (Photo: WIPO/Arrou-Vignod)
Realizing that he needed a brand name and logo for his

new business, Mr. Caktiong and his family decided on using a
smiling red bee. They chose a bee because of its association
with hard work, and because honey represents the sweet
things in life. The jolly prefix was intended to connote
happiness and enjoyment. Jollibee invested millions of pesos
to register the bee trademark in the Philippines and other
key countries.
Helped by smart marketing and advertising strategies,

the mark struck a chord with the public: From a rather
crude, strange-looking bee that no bank dared to touch back

in 1978, Jollibee and his cheeky smile today have become
synonymous with a truly Filipino success story that is now a
source of patriotic pride. It is estimated that the Jollibee
brand is now worth several billion pesos, Mr. Caktiong
points out.
Trademarks increased a lot of value to our business,

he explains. To the consumer, they represent either trust
in the company or trust in the brandthey will remember that
the brand connotes very tasty food and also the experience,
the ambiance, the service, and they are also proud to be a
part of that brand.
Today, Jollibee Foods Corporation uses 8 proprietary

brands (including Jollibee for their core fast food
business, Greenwich for their pizza and pasta chain, and
Chowking for their oriental food outlets), owns many
trademarks (including Bee Happy, Yumburger, Chickenjoy
and Amazing Aloha) and has registered all of its logos,
some of them in several countries.
IP Infringements and Enforcement
The strong Jollibee brand name and its positive

connotations have made it a target for free-riders and
counterfeiters: We have some cases where people will do
other things like garments or shoes and they call it
Jollibee. Overseas, they will open a restaurant or a fast
food also called Jollibee, even with the same drawing, Mr.
Caktiong reports.
Conscious of the importance of protecting their brand,

Jollibee Foods Corporation reacts to trademark
infringements: We have to enforce [our trademarks]
properly. If you do not enforce it properly, your brand
image will get diluted over time, he continues.
Mr. Caktiong is also aware of the long-term

consequences of counterfeiting for the economy and society
as a whole: Counterfeiting will destroy society in the long
runthis will hurt everybody because counterfeit does not
have the right quality: customers get confused by this and
they are not happythen they lose confidence in the real
brand and everything will be destroyed. Therefore, overall
the whole society will also be hurt, he concludes.
Franchising
There are nearly 2,000 restaurants worldwide

representing the Jollibee Foods Corporation (Photo:
WIPO/Arrou-Vignod)
Jollibee Foods Corporation relies on a franchising
model for the exploitation of about half of its outlets in
the Philippines. In order to protect the companys high
quality and service standards, potential franchisees have to
conform to a specific profile (self-driven entrepreneurs
with good management skills, good community standing and
excellent interpersonal skills).
Successful franchising applicants undergo a 3-month

full time Operations Training Program (BOTP) at a designated
training restaurant, supplemented with other programs that
will enrich the franchisee's management and analytical
skills needed in the operation of the restaurant.
However, support for franchisees does not end there:

Jollibee provides advice for and assistance with restaurant
layout and design, equipment specifications, furniture and
fixtures, and construction management. Field personnel
renders consulting services once the outlets are
operational. Creative advertising and marketing programs,
product development, manufacturing and logistics facilities

provide further support to franchisee restaurants.
Business Results
Jollibee is the most popular fast food restaurant in
the Philippines. Since its establishment at the end of the
1970s, Jollibee Foods Corporation has grown spectacularly:
today, Jollibee is the leading fast food chain in the
Philippines with over 50% market share and hundreds of
restaurants all over the country. The companys public
listing at the Philippine Stock Exchange in 1993 broadened
its capital and allowed for the acquisition of the
Greenwich pizza and pasta chain in 1994. Other major
acquisitions include the Chinese fast food chain
YongheDawang (in 2004) and the Chowking oriental food
outlets (in 2000).
The company is also present in Brunei Darussalam,
China, Hong Kong (SAR of China), Indonesia, Saudi Arabia,
the United Arab Emirates, the United States and Viet Nam. By
2020, the group plans to roughly double the number of
restaurants to 4,000 outlets worldwide. Jollibees business
success relies on its smart branding strategy, complemented
by strong customer orientation, superior menu line-up,
innovative new products, creative marketing programs and

efficient manufacturing and logistics facilities.
In a recent survey, the Jollibee group was the only

Philippine company that made it to the top 20 of Asias best
employers list, ranking 16th. Jollibee Foods Corporation
ranked third among Asias most admired companies in 2000 and
was cited as number one in overall leadership among the top
ten Philippine companies. In 2004, Mr. Caktiong received the
Ernst & Young World Entrepreneur Award.
Through the Jollibee Foundation, the company has
established an institutionalized mechanism of giving back to
the community through projects in the areas of education,
leadership development, livelihood, environment, and housing
and disaster relief.
Marking their Territory in the Philippines and abroad

Protecting their brands through national and
international trademark registration has been instrumental
in Jollibees remarkable success without an easily
recognizable brand associated with highest quality and
customer service standards, it would have been difficult to
prevail in the extremely competitive fast food market.
Intellectual property is becoming very important because
you need to distinguish yourself from the others its a

very competitive world [in which] you need to create
something unique, concludes Mr. Caktiong.

During the Annual Stockholders' Meeting of the Jollibee
Foods Corporation, the stockholders elected the following as
the company's Directors for the year 2012:
1. Tony Tank Caktiong
2. Ernesto Tanmantiong
3. William Tan Untiong
4. Ang Cho Sit
5. Antonio Chua Poe Eng
6. Ret. Chief Justice ArtemioPanganiban
7. Felipe B. Alfonso (Independent Director)
8. Monico Jacob (Independent Director)
9. Cezar P. Consing (Independent Director)
At the organizational meeting that immediately followed

the stockholders meeting, the following are elected as
officers of the Company:
Tony Tan Caktiong - as President and Chief Executive Officer

(CEO)
Ernesto Tanmantiong - as Treasurer and Chief Operating Officer
William Tan Untiong - Corporate Secretary
The following were also appointed as members of the Board
Committees:
Executive Committee
Tony Tan Caktiong
Ernesto Tanmantiong
William Tan Untiong
Felipe B. Alfonso
Ret. Chief Justice ArtemioPanganiban
Nomination Committee
Ret. Chief Justice ArtemioPanganiban - Head
Ernesto Tanmantiong - Member
Ang Cho Sit - Member
Compensation Committee
Felipe B. Alfonso - Head
Ret. Chief Justice ArtemioPanganiban - Member
Ernesto Tanmantiong - Member
Audit Committee
Monico Jacob - Head
Felipe B. Alfonso - Member
Antonio Chua Poe Eng - Member
William Tan Untiong Member
Finance Committee
Cizar P. Consing - Head
Monico Jacob - Member
William Tan Untiong - Member
UNDERSTANDING THE CULTURE
A. Management Principle, Style and Practices
Jollibee Foods Corporation (JFC) espouses the principle

of shared value in its corporate social responsibility (CSR)
activities.
As a company in the food industry, JFC through
its CSR arm, the Jollibee Foundation, implements programs

that address access to education, livelihood development,
leadership development and disaster response, issues that
are also of relevance to the companys core business.
Jollibee Foundations Busog, Lusog, Talino (BLT) brings
together local education stakeholders and JFC employee
volunteers to mitigate hunger and undernourishment, widely
attributed causes of school attendance decline and drop-out
among lower grade pupils. Daily lunch is provided to below
normal weight-for-age Grades 1 & 2 pupils with food prepared
by parent groups following menus developed by Jollibee
Foundation. The parents also attend seminars on food safety,
cooking, health and nutrition. For SY 2008-2009, BLT is
being implemented in 54 public elementary schools benefiting
1,822 pupil beneficiaries. Pupils' exhibit marked
improvements in weight and attendance while their parents
show improved budgeting and menu preparation skills as well
as knowledge on nutrition.
Aside from education, Jollibee Foundation also has

initiatives in livelihood, leadership development and
provides assistance in times of calamities.
Jollibee Foods Corporations (JFC or the Company)
core business is the development, operation and franchising
of its quick-service restaurant brands. It offers a wide
variety of affordable and delicious dishes and great tasting
food prepared to satisfy customers of all ages and from all
walks of life.
Food quality, service, price-value relationship, store
location and ambience, and efficient operations continue to
be critical elements of the Companys success in the quickservice restaurant industry.
Sa Jollibee, bida ang saya. (At Jollibee, We Promote
Happiness).This is the popular slogan of the undisputed top
fast food chain in the Philippines, which is the flagship
among the other
Jollibee Food Corporation subsidiaries (the
rest being Chowking, Greenwich Pizza, MangInasal and Red

Ribbon.)
The typical Filipino childhood would not be complete
without experiencing Jollibee and its flavors. While Aga
Mulach had popularized the Chicken Joy to a-whole-nother
level (it was already pretty good before he campaigned for

it), the Jollibee menu is also filled with interesting
pickings. The Spaghetti is a unique Filipino concoction we
prefer our Spaghetti sweet, for some reason. And Jollibee
comes with hotdog bites, too!
And the dessert section is home to some really good
pies. Their Peach-Mango combo is easily the most popular.
Family Day is also usually a Jollibee day. Many
Filipino families, especially those who belong in the middle
class, troop to the nearest Jollibee branch after attending
the Holy Mass on Sundays, a practice that has been passed on
to new generations.
Indeed, this Pinoy food titan has gone a long way since
it first started its journey. Jollibees single greatest
accomplishment is that it has thoroughly dominated the
competition among multinational fast-food chains like
McDonalds, Wendys and Burger King (in the Philippines).
The first Jollibee restaurant was located beside the
Quezon Bridge, near Quiapo Market. It was in a tiny 30
square-meter space, which had been previously abandoned, and
was therefore low-cost. The signboard was made out of
plywood, humbly painted and had one purpose to say that

this was Jollibee.
Along the sidewalk fronting the restaurant was a
barker, who enticed passers-by to try their hamburgers for
merely 2.75 Pesos (a local competitor, Tropical Hut, sold
hamburgers for 4.50 Pesos).
The following years, Jollibee branched out in a gradual
manner. But in 1978, McDonalds opened at the corner of CM
Recto and Morayta in Manilas University Belt. In 1979,
Jollibee opened its first franchised restaurant at
Ronquillo, Quiapo, Manila, which was an almost exact replica
of the McDonalds restaurant.
In the coming years, the two fought tit for tat in
opening more franchises, with Jollibee winning out
eventually, maybe, because of lower franchise fee, and have
no royalties to be paid to a mother company.
In 1984, Jollibee entered the top 500 Philippine
Corporations, and topped the local food industry. It opened
its first overseas store in Taiwan in 1986. In 1992, its
sales reached 3.4 billion Pesos, and it expanded overseas
aggressively.
In 2002, its revenues neared 27 billion Peso mark. This

year, its founder, Tony Tan Caktiong was named Management
Man of the Year of the Philippines, with stores already
numbering about 900. MangInasals 70% equity was bought by
Jollibee Corporation in 2010 for 3 billion Pesos.
To strengthen its hold in the fast-food field in the
Philippines, it gobbled and bought diversified competitors,
Chowking with 377 franchises, Greenwich Pizza with 236,
Red Ribbon Bakeshop with 194, Delifrances 28 branches,
ManongPepes 4 and MangInasals 500.
Now, it has more than 2,000 stores, and still expanding
at a brisk phase. But still, its the Bee that remains the
face of this Filipino Food Empire.
B. STANDING OF THE FIRM RELATIVE TO:
a.Industry
Since its inception as a corporation in the late 70s,
Jollibee has seen strong financial growth. As seen in the
financial data provided, Jollibees sales and revenue has
been on the rise in the recent years. As shown in their
revenues, an amount of $12.9 billion pesos in 1998 was
gradually increased to $26.2 billion pesos in 2004, and
indicating strong growth and ability to compete in the
already dense fast food market locally and internationally.

The organization going public on the Philippine Stock
Exchange in 1993 acts as a foundation for the rapid
expansion of its stores locally and internationally
Organizational Design
The decentralization of its operations in 2000 enables the
organization to manage their business on a manageable scale.
Four autonomous regional business units dealing with human
resources, administration, finance and network development
enabled the company to focus their operations on a corporate
level and allowing the RBUs to achieve greater efficiency.
Physical
As of June 2005, Jollibee has a total of 1200 stores locally
and internationally. A diversification of food products
enabled the organization to reach out to a variety of
customers and making them as a market leader in the
Philippines. Due to the geographical structure of the
country, they are the only fast food chain that operated
nationwide, and in some locations face no other
competitions.
Risk Management
The acquisition of several new brands such as Greenwich,
Chowking and Delifrance allow the diversification of its
products into different market niches. It proved to be a
hedge against downturns and competition and as seen in the
case study, most of the acquisitions are the leader in their
respective market segment.
Product Development
The main draw for customers into Jollibees restaurants is
the appeal for local styled food catered to Filipinos
preferences. This is evident as they are constantly adding
its product range on top of their already popular favourites
menu, in order to allow its local customers to experience
the traditional Filipino way of having local flavoured taste
in a comfortable setting.
Marketing
Jollibee projects itself as being closer to Filipino
families as compared to its competitors. There is already
widespread awareness locally that Jollibee is a local
Filipino establishment, which in turn appealed to the mass
population whom felt more comfortable in a familiar setting.
Tailoring its menu towards the Filipino taste, it positioned

itself as the favourite destination for family outings as
compared to its similar competitors.
Outbound Logistics
Individual RBUs are able to achieve greater efficiency in
the delivery of products and services, quicker coordination,
and more timely decision making due to this decentralizing.
Marketing and Sales

Portraying itself as a fast-food outlet of high-quality at
an affordable price specifically tailored for the Filipinos,
the chain has appealed to patriotic locals. With its
introduction of in-store play activities for children and a
cast of brand mascots, it reaches and appeals to the
children and is evidently more popular than its nearest
competitors. Recognizing that a normal Filipino familys
weekends are normally reserved for children, the previously
mentioned activities add value to Jollibee's position as the
prime destinations for family outings.
Service
The Filipino speaking crew appeals to the locals more than
its competitors where their crew spoke in English. It is
also in Jollibees commitment that this service component of
their business to their customers must be fast and at the
same time being courteous.
Procurement
Being a major player in the Fast-food industry in
Philippines, they constantly enjoyed economies of scale in
terms of retail site selection, procurement, manufacturing,
distribution, and marketing levels unavailable to most
industry players.
Human Resource Management

To attract the right talent and retaining of valuable
staffs, the compensation and benefits package at Jollibee is
the highest in the Philippine fast-food industry. Employees
are to undergo comprehensive training programs based on
underlying standards. Managers also received ongoing
training in the latest operations systems and peoplemanagement skills. Opportunities are available for crew
members to advance into a management role in the
organization.
Firm Infrastructure
Decentralizing its organization into 4 autonomous business
units, which corresponded to the country's major
geographical markets. This enables the Head Office to focus
its operations on the key marketing, finance, restaurant
systems and engineering functions and act as a support and
advice to the RBUs.
Business Fundamentals Analysis
Economics
The uncertainties of competition from foreign players as
well as downturns in specific market inches are omnipresent
in our current economic nature. Other uncertainties also
come in the form of financial crisis in the region as well
as in the country it is operating in.
Stakeholders
Three groups of stakeholders of Jollibee are identified who
are affected by the strategic outcomes and discussed below.
Capital Market Stakeholders
Jollibees capital market stakeholders include its
shareholders whom have a direct interest in the company.
Since going public on the Philippine Stock Exchange,
Jollibee had been able to tap on this key resource to expand

its horizon within and beyond the local Philippines market.
The importance of the capital market stakeholders is also
evident in the growing operations of Jollibee over the
years.
Product Market Stakeholders

Jollibees product market stakeholders include its customers
locally and globally, as well as suppliers of its food
sources. Jollibee has been able to capture the market share
of the fast food going customers due to its understanding of
locals preferences and it quality and competitive pricing
of its food. An approximate 1 million customers ate at
Jollibees stores daily, making them an important
stakeholder in this category.
The large daily requirement of food resources had enabled
Jollibee to enjoy better prices through economies of scale
from its suppliers.
Organizational Stakeholders
Jollibees organizational stakeholders include its large
number of employees under its corporation (26,500 employees
as of 2004), its managers and its franchisees. In
maintaining its high standards, Jollibees compensation,
benefits and comprehensive training programs ensure they

have the best employees that are available.
b. Brand Name Acceptance
The number one fast food chain in the Philippines is
not a global giant. Its Jollibee, the countrys very own
home-grown fast-food brand that first opened its doors in
1978. With 847 stores in the Philippines today and 111
outlets abroad (30 in the United States, 50 in Vietnam, 12
in Brunei, 10 in Saudi Arabia, three each in Qatar and
Kuwait, two in Singapore and one in Hong Kong), Jollibee has
steadily risen to become a multinational itself.
The jolly giant bee wearing his orange coat with a
black bow tie and chefs hat is one of the most enduring
icons of Pinoys memories of childhood. It has almost become
a rite of passage to chase after the Jollibee mascot or have
some pictures taken with Jollibee at one point in our lives.
Offering a cultural blend of Western and Filipino
comfort food in a convenient fast food setting, the
following Jollibee has gained over the years arose from the
brands understanding of Filipinos and the local palate. If
Jollibees Jolly Spaghetti were one day declared the
national spaghetti of the Philippines, there would likely be
weak opposition. Jolly Spaghettis full-bodied sauce

captures the sweetness Filipinos like in their spaghetti
sauce. It is this sweet taste that distinguishes the
Filipino style spaghetti from all others around the world.
But what has really established Jollibee as a household
name is its Chickenjoy, the langhapsarap fried chicken for
which Jollibees slogan seems to be made, because there is
no other way to describe it. Chickenjoy is Jollibees
timeless classic. It is a guaranteed favourite that appeals
across Philippine demographicsincluding pregnant women,
interestinglyand its absence from the menu has been known
to incite minor riots.
With the Jolly Hotdog, Palabok Fiesta, Yumburger and
other bestsellers, Jollibee bested its larger counterparts
in the Philippines from the very beginning. The fast-food
chains success is at one hand generated by
its langhapsarap menu, but its staying power in the industry
and in the hearts of Filipinos is a reflection of the
company behind Jollibee.
Through the years, Jollibee has promoted a familyoriented approach in the work environment and in its brand
values. The original Jollibee restaurant was founded by
entrepreneur Tony Tan, who established and ran the business
with his family. What then grew into the Jollibee Foods
Corporation (JFC) is today the parent company that also
consists of other fast food brands Chowking, Greenwich, Red
Ribbon, MangInasal, Burger King and food business
partnerships with restaurants in China.
Jollibee, the brand and the corporation, is now a
global enterprise that beats with a local heart. While the
menu remains authentic to the way Filipinos like their fried
chicken, spaghetti, fries or burger, it is also the Filipino
core values which move Jollibee that ensures its longevity
and leadership in the fast food industry. The value of
family, first and foremost, because family takes care of
each other, supports one another. In life as in business,
people who treat each other like family exercise respect,
share trust and value teamwork.
Recently, Jollibee activated a systems upgrade that
supposedly cost the corporation P500 million in orders to
improve the fast food chains business processes. The irony
was that the initial migration to the new system disrupted
the supply chain, and the unavailability of favourite
bestsellers led to an uproar in Metro Manila. Despite the
risks, these are ventures a rising global brand needs to
undertake to make it outside of its home country.
Jollibee has long since restored its normal operations.

Combined with all the brands under JFC, Jollibee is the
largest and number one fast food chain in the Philippines.
It is the industry leader because it stays true to its
roots, and to its Pinoy family.
c. Production facilities and their Location
Jollibee Foods Corporation (JFC) was incorporated on
January 28, 1978. JFC's principal business is the
development, operation, and franchising of quick-service
restaurant under the trade name "Jollibee". In the
Philippines, JFC also has as subsidiaries, Fresh & Famous
Foods, Inc., which develops and operates, and franchises
quick-service restaurants under the trade names "Chowking",
"Greenwich", "Delifrance", "ManongPepe'sKarinderia", and
"Red Ribbon Bakeshop, Inc.". JFC also has subsidiaries and
affiliates overseas which develop and operate its
international brands, "Yonghe King", "Chun Shui Tang",
"Hongzhuangyuan", and "Lao Dong".
JFC operates its central commissary in Calamba, Laguna
through a wholly-owned subsidiary, Zenith Foods Corporation
(ZFC). On February 7, 2008, ZFC was merged with another
wholly-owned subsidiary, Vismin Foods Corporation, which
owned commissary facilities in Mandaue, Cebu, with ZFC as
the surviving entity. The merger allowed JFC to be more

efficient in sourcing, receiving, manufacturing,
warehousing, and distributing raw materials in its stores.
The commissaries have a collective capacity to service 800
stores nationwide.
By the end of 2009, JFC had a total of 686 stores
nationwide, of which 355 are franchised and 331 are companyowned. There were also 57 Jollibee stores overseas,
including the United States, Vietnam, Hong Kong, Brunei,
Dubai, Guam, Saipan, and Jeddah.
d. Marketing and Distribution
Jollibee Foods Corporation, the Philippines largest
fast food chain, wanted to integrate the distribution
systems for four of its brands under one roof. They opened
their new distribution center in Paraaque City in May 2012
and commissioned SSI SCHAEFER Philippines to design a
picking and sorting system for its dry warehouse.
The installation includes a three-tier picking tower
equipped with pallet and carton live storage, where nonperishable supplies, such as utensils and condiments, are
stored for dispatch. These items are tagged with bar codes
and transported on a conveyor system, where it is scanned
and sorted by store, before being delivered to JFCs many

stores across the country.
With the new system enabling faster picking and
deployment for the company, it has become more responsive to
the needs of its stores. The system also aided JFCs plans
to consolidate multiple supply chains into one facility in a
cost-effective way, laying the groundwork for the companys
expansion plans.
For more project information, project specifications
and more project pictures, please download Case Study in PDF
on the right hand side. The Case Study is in PDF format and
needs Adobe Reader to view.
e. Pricing
Since, Jollibee Foods Corporation is one of the highly
recognized fast food chains Jollibee sets its price at a
acceptable price that a buyer is willing to buy and is very
competitive compared with other fast food chains.
The combo meals of Jollibee are cheaper by 10% compared
to McDonalds.
As for the Chicken, though the price of Jollibee is
cheaper the McDo but their Chicken size is bigger.
Jollibee Philippines is one of the most popular
Philippine franchises. Originally opened as a Magnolia Ice
Cream parlor at Cubao in 1975, the name was originally
called Jollibee. In 1978, the business focus shifted from
ice cream to hamburgers. Jollibee studies showed a much
larger market was waiting to get tapped. Lumba became Tony
Tans first business and management mentor. After changing
the name to Jollibee, the Jollibee mascot was inspired by
local and foreign childrens books. Developed by a
management consultant named, Manuel C. Lumba working for
Tony Tan Caktiong next created the product names Yumburger
as well as the name Chickenjoy. Later Tony Tony made Manny
Lumbar in charge of developing the franchise. The stores
were re-designed, the service transformed into a full selfservice, fast food operation with drive thus. The first
headquarters was located on Main St. in Cubao, Quezon City.
Lumba developed a long-term marketing strategy, listing up a
number of consumer promotions and traffic building schemes
while maintaining internal strengths required by Tony Tan.
We wont be going in detail on how Jollibee
Philippines exactly work. We are here to analyze the reason
and principle of Jollibee Philippines success.
Acquisitions in the Philippines

The corporation is actually known as Jollibee Foods
Corporation. Oh and if you thought that Jollibee was the
only fast food chain operated by this corporation, boy are
you in for a surprise. To me, it seems like JFC owns a
majority stake in all of the Filipino fast food niches. Do
you ever eat at Chow King? I know I love the halo-halo
there, but did you know that in the year 2000, JFC acquired
Chowking! Thats right; all the delicious oriental style
fast food from Chow King is operated at a high level by the
same corporation as Jollibee. Oh and thats not all. Seems
like Jollibee Foods Corporation has the idea that
diversification is key to its future, and I think theyre on
the right track. JFC also bought out the popular fast food
pizza restaurant known as Greenwich Pizza. Additionally, in
2005, Red Ribbon Bakery became part of JFC. Keeping with the
baking theme, JFC acquired the French cafe and bakery known
as Deliverance. The division of JFC that handles business
inside of the Philippines is known as Jollibee Philippines.
Acquisitions outside of the Philippines
JFC has holdings in several other Asian countries
including China and Taiwan. Theres a Chinese fast food
chain named Yonghe King in mainland China (based in
Shanghai) that is owned and operated by JFC. Another Chinese

restaurant chain named Hongzhuangyuan was acquired on
September 21, 2007. This chain has 33 locations in Beijing
and was purchased for the amount of US $50.5 million.
Wow! I sure was surprised when I learned about all
those acquisitions. Its interesting to note that when I
walk into any of the chains above that theyre owned and
operated by the same corporation. Im glad that Jollibee has
a great track record with the Filipino community and that in
addition to the amazing Jollibee Philippines; they can offer
us a variety of different foods ranging from pizza, oriental
food, and coffee and baked goods.
As an investor, you should know the pitfalls of loving
what you own too much. As much as I would
rate Jollibees Chickenjoy to be my #1 chicken-of-all-time
(yes, it beats Colonel Sanders secret recipe in my personal
taste buds), Jollibee Food Corp (PSE: JFC) is too richly
valued by investors and traders alike in todays market.
Make no mistake that I absolutely love the company, its
management, and especially its menu. In fact, I daresay my
grandkids would probably be eating the same chicken as I do
now. However, for the shareholder, Jollibee might just upset
your portfolio if you bought it last week or even

today even as it has gone down from its 52-week highs. It
is that expensive.
The Lesson of Value
As a buyer, price is what you fork over. While traders
worry about the price, investors should worry about the
value. It is value that dictates how much you are willing to
fork over for a share of Jollibee. Any sane person would not
even fork out more than Php5, 000 for headphones and yet I
pony top-dollar for flagships costing more than a MacBook
Pro. It has little value for you but it has
considerable value for me.
Even when it has significantly declined from its 52week high of Php241 per share, Jollibee Foods is still
expensive at its last trade price of Php 216.8 per share.
However, you will not know of that until you have read this
article. Fundamentalists who believe that earning is the #1
reason for share price movement know. But if you try to
check your technical, it wont get you anywhere.
III.ANALYSIS
Jollibee may be the nations favourite fast food chain but
the humble bee weve always known is more than meets the eye of
every individual. Jollibee has its own fair share of lifes

surprises to everyone. Customers are loyal to Jollibee because
they created the most peoples choice taste; they were highly
recognized because Jollibee is one of the best competitive
company which the people will patronize their products because it
sets the prices at a cheap price but can satisfy the customers.
Instead also of targeting new customers in order to grow their
business, there is a specific target market already which is the
kids or the whole family in the market industry.
JFC has its wide range distribution, and for this surely
they gain customers loyalty that triggers the profitability of
the business. But despite of the information's given, it is not
yet enough to conclude whether it is a good investment or not.
Based on its background it has a good record, thus we can say
that it is stable, and profitable. On the persons behind its
success, we can say that they are reputable based on their
background. JFC is a good investment based only to the
information's gathered, but we still need to know their
Quantitative analysis to be accurately concluded.
IV.REFERENCES
http://www.wipo.int/ipadvantage/en/details.jsp?id=2531
http://www.affordablecebu.com/load/business/jollibee_foods_c
orporation_board_of_directors_and_officers_2012_2013/6-1-03709#ixzz3iglLjpfY
http://www.affordablecebu.com/load/business/jollibee_foods_c
orporation_board_of_directors_and_officers_2012_2013/6-1-03709
http://jollibeefoundation.org/jollibee-foods-corporationscsr-programs/
http://nhobeelab.weebly.com/industry-analysis.html
http://adedge.com.ph/jollibee-foods-corporation-the-globalenterprise-with-a-pinoy-heart-a-bee-ting/
https://www.google.com.ph/search?
q=jollibee+food+corporation+swot+analysis&biw=1024&bih=513&s
ource=lnms&tbm=isch&sa=X&ved=0CAYQ_AUoAWoVChMIwuCklbStxwIVFF
aOCh3Z6AE2#imgdii=Q82Vf89jGc8BHM%3A%3BQ82Vf89jGc8BHM%3A
%3BQ07gOXQe-lssMM%3A&imgrc=Q82Vf89jGc8BHM%3A
http://franchisephilippines.org/jollibee-philippines/
http://wikamag.com/the-filipino-food-empire-jollibee-foodscorporation/
http://edge.pse.com.ph/companyInformation/form.docmpy_id=86
http://www.alphainvestments.ph/is-jollibee-expensive/
SAN MIGUEL CORPORATION

I.
COMPANY PROFILE
A. When and how the company was established who were
responsible for setting up?
The
original
San
Miguel
Brewery, Incorporation was founded

as La Fabrica de Cerveza de San
Miguel
in
1890
by
Don
Enrique
Maria Barretto de Ycaza y Esteban

under a Spanish Royal Charter that officially permitted the
brewing of beer in the Philippines and incorporated as the
first San Miguel Brewery, Inc. in 1913.
It was renamed San
Miguel Corporation (SMC) in 1963, having grown into one of

the
Philippines
largest
business
conglomerates
with
core
interests in alcoholic and non-alcoholic beverages, food and

packaging. The breweries operated as the beer division of SMC
until 2007.
Early success led to the expansion of the business and
the Barretto decided to incorporate his brewery. On June 6,
1893, the company was incorporated and registered with a
capital of Php 180,000.Those forming the corporation were Don
Pedro Pablo Roxas y Castro, Don Gonzalo Tuason y Patio, Don
Vicente D. Fernandez y Castro, Don Albino Goyenechea, Benito
Legarda y Tuason, the heirs of Don Mariano Buenaventura y

Chuidan and Barretto.
Roxas was appointed manager, playing a prominent role in
the development of the firm. He was the active member of the
firm until 1896.
San Miguel Brewery, Inc. (SMC) was incorporated on July
26,
2007
as
subsidiary
of
SMC
and
the
domestic
beer
business was spun off from SMC to SMB on October 1, 2007. In

2009, Kirin Holdings Co. Ltd. Of Japan acquired 48.3% of the
company from SMC for Php 8.841 per share.
In 2010, SMB acquired 100% ownership
of
San
Miguel
Brewing International Ltd. (SMBIL) from SMC. The acquisition

of
SMBIL
enabled
SMB
to
achieve
full
integration
of
San
Miguels domestic and international beer businesses.

SMB became listed in the Philippine Stock Exchange on
November 5, 1948.
Established in 1890 as
single
brewery
in
the
Philippines under La Fabrica de Cerveza de San Miguel was

Southeast Asias first brewery, which produced and bottled
what would eventually become one of the best-selling beers in
the region and among the top beer brands in the world.
San Miguel since expanded to produce
a wide range of
popular beverage, food and packaging products, which have

for over a century catered to generations of consumers
ever changing tastes. They give every customer and consumer
they touch access to the best they can offer whether in

terms of quality, or affordability or choice.
SMB enhance the value of their established businesses by
striving to achieve even greater efficiencies and operational
excellence. They also strengthen their brands by improving
product visibility and targeting areas where there is room
for growth in market share.
The company seek strategic
acquisition
and
Greenfield
opportunities, positioning their businesses in a way to best

contribute
to
the
countrys
development.
Broader distribution
network
growth
for
and
their
industrial
products
and
expand their customer base by identifying synergies across

their various businesses.
plans
to
integrate
In addition, they are pursuing
their
production
and
distribution
facilities for it's both their established and newly acquired

businesses
to
generate
additional
cost
savings
and
efficiency.
San
position
Miguel
in
intends
the
to
Philippines
further
by
enhance
leveraging
their
the
market
companys
financial resources and experience to allow it to continue to

introduce new products and services. Potential investments to
develop
existing
businesses
include
building
additional
service and micro-filling stations, constructing new power

plants,
expanding
their
power
generation
portfolio
and
expanding food distribution networks. They will also continue

to invest in and develop business that has the potential to
gain
leading
positions
in
their
respective
markets
and
industries.
Insiders at San Miguel Corporation (SMC)
Name
Title
Type of Board
or Member
Eduardo Cojuangco Jr.
*Chairman
*Chief Executive
Chief
Executive
Officer
*Chairman of
Officer
Executive
Committee
Ramon Ang B.S.M.E
*Vice Chairman
*President
*Chief Operating
Officer
*Director
*Member of
Executive
Committee
*Member of
Nomination &
Hearing Committee
President
Ferdinand Constantino
*Chief Finance
Chief
B.A. (Econ.)
Officer
*Senior Vice
Financial
Officer
President
*Corporate
Information
Officer
*Treasurer
*Director
*Member of
Executive
Committee
*Member of Audit
Committee
*Member of
Executive
Compensation
Committee
*Member of
Nomination &
Hearing Committee
Aurora Calderon
*Senior Executive
Senior Key
Assistant To The
Executive
Office of the
President & Chief

Operating Officer
*Senior Vice
President
*Director and
Member of
Executive
Compensation
Committee
Ferdinand Tumpalan
*Chairman of San
Unit
Miguel Packaging
President
Specialists inc.
*President of
Mindanao
Corrugated
Fibreboard Inc.
*President of San
Miguel Packaging
Specialists Inc.
*President of San
Miguel Yamamura
Packaging
Corporation
Carlos Berba B.Sc.,
*Managing Director
M.B.A, M.Sc.
of San Miguel
Other Key
Brewing
Executive
International
Limited
*Chairman of San
Miguel Brewing
International
Limited
Francisco Alejo III
*President of San
Unit
Miguel Pure Foods
President
Company Inc.
*Director of San
Miguel Pure Foods
Company Inc.
Thomas Tan
*Director
Unit
*President of San
President
Miguel Shipping &

Lighterage
Corporation
Other Board Members on Board
Name
Estelito Mendoza AA,
LLB
(UP), LLM (Harvard)
Type of Board Member

Member of the Board of Directors
Menardo Jimenez
Margarito Teves
Iigo Zobel
Leo Alvez
Winston Garcia
Alexander Poblador
Joselito Campos Jr.
Reynato Puno M.C.L,
L.L.M, L.L.B
Horacio Ramos
II. UNDERSTANDING THE CULTURE

San Miguel Corporation in adherence
to
management
principles and best practices, the Chairman of the Board

designated a Compliance Officer reporting directly to him. As
the position denotes, he is responsible for seeing to it that
the organization complies with the provision in the manual.
The Board of Directors is responsible for the long-term
success of the Corporation and its sustained competitiveness,
consistent
interest
of
with
the
its
trusted
Corporation,
role
its
exercised
in
shareholders
the
and
best
other
stakeholders.
Forming working committees within the Board fosters open
discussion, keeping Board members informed, and allowing them
to become more sensitive to shareholders interest.
The
Audit
auditing
Committee
processes,
international
ensures
practices
standards.
that
the
and
methodologies
Financial
accounting
records
conform
and
meet
to
accounting principles generally accepted in the Philippines.

Upon its approval, the Corporation will adopt the IAS as its
accounting and financial reporting platform for international
acceptability.
The Corporation
has
in
place
an
independent
internal
audit function performed by an Internal Auditor, who ensures

that
its
key
organizational
and
procedural
controls
are
effective, appropriate and complied with.

All material information is publicly disclosed. These
include earnings result, board changes, and shareholdings of
directors.
The Corporation established an Investor Relations Unit
to
disseminate
practices
timely
consistency,
information
accuracy,
to
and
shareholders.
timeliness
in
SMC
the
delivery and communication of information and data. The Unit

coordinates
with
the
Compliance
Officer
and
other
SMC
divisions in effectively communicating with stakeholders.

B.Standing of the firm relative to:
a. Industry
San Miguel Corporation (SMC or
the
Parent
Company),
together with its subsidiaries (collectively referred to as

the SMC Group), is one of the largest and most diversified
conglomerates in the Philippines by market capitalization and
total assets, with sales accounting for approximately 6.5% of

the Philippine GDP in 2013. Originally founded in 1890 as a
single brewery in the Philippines, SMC has transformed itself
from a market-leading beverages, food and packaging business
with a globally recognized beer brand, into a diversified
conglomerate with market-leading businesses and investments
in
the
fuel
and
oil,
energy,
infrastructure,
telecommunications, mining, banking and airline industries.

SMC owns a portfolio of companies that is tightly interwoven
into the economic fabric of its home market, benefiting from
and contributing to, the development and economic progress of
the Philippines. The common shares of SMC were listed on the
Philippine Stock Exchange on November 5, 1948.
b. Brand name acceptance
San Miguel Brewery Inc. (SMB) is the largest producer of
beer in the Philippines, with nine out of ten beer drinkers
preferring its brands. As the beer business grew at a steady
pace, it provided the foundation from which SMC expanded its
interests from food, beverage and packaging, to power, oil,
airline
biggest
and
infrastructure.
Today,
diversified
SMC
is
the
country's
conglomerate.
From a single product produced in a single brewery in

1890, SMB has developed an array of popular beer products
over the past century, catering to the distinct tastes and

preferences of beer drinkers across all segments and markets
in the Philippines. Today, it carries a portfolio of ten
strong and popular beer brands: San Mig Light, Red Horse
Beer, Cerveza Negra, Gold Eagle Beer, San Miguel Strong Ice,
San Miguel Super Dry, San Miguel Premium All-Malt Beer, San
Miguel Flavoured Beer, San Mig Zero, and its flagship brand,
San
Miguel
Pale
Pilsen.
These
products
carry
distinct
attributes that cater to all segments of the Philippine beer

market and have earned international recognition for quality,
winning
in
the
prestigious
Monde
International
Selection
almost on an annual basis, among other awards and citations.

c. Production Facilities and Locations
Breweries
steel,
today
although
are
made
predominantly
vessels
often
of stainless
have
decorative copper cladding for a nostalgic look. Stainless

steel has many favorable characteristics that make it a wellsuited material for brewing equipment.
San Miguel Corporation plants perform myriad analyses on
their
beers
for
quality
control
purposes.
Shipments
of
ingredients are analyzed to correct for variations. Samples

are
pulled
at
almost
every
step
and
tested
for
[oxygen]
content, unwanted microbial infections, and other beer-aging
compounds. A representative sample of the finished product

often is stored for months for comparison, when complaints
are received.
San Miguel's manufacturing operations extend beyond its
home
market
Thailand,
to
Hong
Malaysia
and
Kong,
China,
Australia;
Indonesia,
and
its
Vietnam,
products
are
exported to 60 markets around the world.
The Company has six production facilities strategically

located across the Philippines to ensure product availability
and
freshness.
The
six
production
facilities
in
the
Philippines are located at Pampanga, Metro Manila, Laguna,

Negros Occidental, Cebu and Davao.
d. Marketing and Distribution Outlets

From a portfolio perspective, San Miguels new business
ventures
increase
the
companys
recurring
revenue
and
are
companys
core
businesses,
exposure
highly
to
profitable
synergistic
enjoying
with
complementarities
the
in
scale, markets, geography, technology and raw materials. At

the
corporate
distribution
level,
network
the
size
operations
and
scale
will
of
San
provide
Miguels
significant
economies of scale and synergies in production, research and

development, distribution, management and marketing. Scale
also lends to substantial leverage and bargaining power with
suppliers
and
retailers,
an
advantage
that
SMC
currently
enjoys. In terms of immediate distribution channels, Petrons

network of over 1,700 service stations and convenience stores
has
already
broadened
the
footprint
of
SMCs
food
and
beverage products. And the combined distribution network will

also
be
critical
in
the
roll-out
of
new
products
and
services. SMCs ownership of toll roads and regional airports

would further expand this network, providing various retail
and
advertising
options
in
kiosks
and
rest
stops.
The
infrastructure sector would also result in ancillary business

opportunities for SMC businesses as its toll way projects
provide the right of first refusal to use the land that falls
within the scope of the project. Synergies are also abundant
for the power business and San Miguels three coal mines,
with the mines providing raw material input to the power
plants
and
fuel
for
the
companys
other
non-coal
power
plants.
C.Product Diversification
For the longest time, the San Miguel Corporation (San
Miguel was the model of the focused related diversifier in
the
Philippines.
To
broaden
its
beer
and
soft
drink
businesses, it acquired La Tonden Distillers (later renamed

Ginebra,
the
largest
selling
hard
liquor
brand
in
the
Philippines. Beyond the beer and the beverages business, the

company integrated backwards by entering into the bottlemaking as well another packaging materials businesses. Then,
it
went
beyond
its
beverage
businesses
by
diversifying
further in the food line, adding ice cream, milk and dairy
and processed meat products. The acquisition of Purefood from
Ayala in 2001 further broadened its food line to include
flour. Its largest and most publicized strategic move was,
however,
the
acquisition
in
2000
of
National
Foods,
the
largest dairy company in Australia. The acquisition through,

considered a very costly one, was well within its historical
trust as a diversified food and beverage company.
For
its
beer
business,
it
aggressively
pursued
territorial diversification in the 1990s. It established in

China,
Vietnam,
Thailand,
and
Indonesia
and
expanded
its
operations in Hong Kong. It also acquired the Australian beer

brewer J Boag and Son. The beer line was said to be San
Miguels spearhead for the entry of its other food lines into
foreign markets in the region.
Until the new millennium, San Miguel hewed closely to its
decadesold posture of diversifying within
beverage fields.
Beginning in
the food and
2007, however, San Miguels
diversification efforts took a different direction. In the

second half of 2007, it was one of the principal contenders
for the acquisition of Energy Development Corporation (EDC),
the governments largest geothermal steam producer.
In addition, it acquired the controlling interest
in
Petron Corporation, the largest oil refiner and distributor i
n the Philippines.Its interest in the power distribution ande

nergy field wassaid to diversify into biofuel production (e.g
., ethanol) in the future.
Since the new millennium,
the
San
has
entered
outside
its
Miguel
unrelated
Corporation
businesses
new
management
the
of
following
traditional
food
and beverage businesses: (1) Telecommunications(e.g., Liberty

Telecoms); (2) Banking (e.g., Bank
of
Commerce);
(3) Electricity generation and distribution (e.g., SMC

Global Power Holdings, San Miguel Energy, Meralco); (4)Oil
refining and distribution (e.g., Petron Corporation);
(5)Mining(e.g., Daguma Agro Minerals, Bonanza Energy Resource
s, SultanEnergy);(6)Air Transport(e.g.Philippine Airlines);
and
(7)
Public infrastructure construction and management
(e.g., Universal LRT, TransAire, TPLEX).
III. ANALYSIS
San Miguel Corporation was started during the year 1890
by Don Enrique Maria Barretto de Ycaza y Esteban and until
now the company exist. The company has already 125 years in
business. It is stable enough because the company was already
last long in the business world and theyve done many things
in
the
world
for
good
business
operation,
for
the
betterment of the company and there will be the probability

that
it
will
continue
in
the
future.
Don
Enrique
Maria
Barretto de Ycaza y Esteban was a well-known businessman in
Manila and is responsible enough in establishing San Miguel

Corporation. SMC was listed in the Philippine Stock Exchange
on November 5, 1948.
SMC is a stable business, has a well known founder and
responsible, and was listed in the PSE attracts its investor
to invest in SMC. This will increase the demand of stocks for
SMC, increase in stock price, increase in profit and will
also increase the sales of the company. Being listed in the
PSE
the
company
makes
it
legal
because
theyve
pass
the
necessary documents needed for their good business operation.

The company evolved through expansion and making quality
products throughout the years. Expansion of business caters
more customers, that will increase their production, increase
also to their profit and it will also lead an increase of
their
sales.
One
of
their
strategies
is
enhancing
their
market position in the Philippines by leveraging companys

financial resources and experience to allow it to continue to
new products and services. This strategy of SMC attracts more
investors and customers to patronize their product.
The Chief Executive Officer of SMC is Eduardo Cojuangco
Jr.
has
been
called
one
of
the
countrys
leading
businessmen. He serves as the Chief Executive Officer of SMC

since July 7, 1998. He studied at San Beda College, De La
Salle University. He is a responsible man and credible in

handling businesses. The other board members of SMC are also
responsible enough and credible in their positions. Having a
credible, responsible and good board of directors of SMC
attract
more
investors.
They
are
also
efficient
and
effectiveness in such a way in making a good decision for the

betterment of the company and also it can be seen that there
are a lot of programs and projects that they are makes and
there are a lot of improvements that they make since its
establishment.
The company ensures that all public information is being
disseminated. They also informed changes about the earning
result, board changes and shareholdings of directors which is
good for the investors so that they will be fully informed
about the company and it can also help them in deciding
whether to invest in the company or not.
SMC offered their products nationwide. They have also
production
facilities
nationwide
which
is
good
for
the
business in order to produce more products. They ensure that

their products and services will meet the demand of their
customers. This is good for the business in order to satisfy
more customers, increase production, increase their profit,
increase sales and will increase also the value of the firm
which is good for the investors.
Brand name of SMC was widely accepted by the customers
or
highly
recognized
it.
Customers
patronize
the
SMC
products. Having an accepted brand name for SMC creates the

loyalty of their customers, more potential buyers, increase
in
demand
increase
for
in
their
profit,
products,
and
increase
increase
the
in
their
stability
sales,
of
the
business.
They dont focus solely in beverages but also in food,
packaging, properties, oil and refining and marketing, power,
infrastructure
and
other
businesses.
This
is
good
for
the
company in to become stable and in case of having a loss in

the beverages industry there would be other businesses that
will be gaining.
IV.
REFERENCES
A. Company Profile
https://en.wikipedia.org/wiki/San_Miguel_Brewery
shttps://en.wikipedia.org/wiki/San_Miguel_Corporation
http://www.sanmiguel.com.ph/company/page/802/Strategy.h
tml
http://www.bloomberg.com/research/stocks/people/board.a
sp?ticker=SMC:PM
B. Understanding the Culture
http://www.sanmiguel.com.ph/corporate/page/19/Corporate
_governance.html
http://www.sanmiguel.com.ph/PDF/fs/SMC-17-AFinal04.15.14.pdf
http://www.sanmiguel.com.ph/business/page/773/beer.html
http://sanmiguelbrewery.com.ph/plantsandfacilities.php
http://sanmiguelbrewery.com.ph/about-us.php
http://www.sanmiguel.com.ph/synergy.html
http://journals.upd.edu.ph/index.php/pmr/article/viewFi
le/3597/3312

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Saint Louis College

San Fernando City, 2500 La Union

In Partial Fulfilment of the Requirements

(Time Schedule: 3:00-4:00 MWF)

UNDERSTANDING THE CULTURE

A. Management principles, styles and practices

UNIVERSAL ROBINA CORPORATION

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

Gamble. In a sense, he wanted to put up the first 'local' MNC,

The coming decades saw more acquisitions and expansion. In

the Branded Consumer Food Group, comprised of BCFG Domestic

the Agro-Industrial group, comprised of Universal Corn

and the Commodities group, with the Sugar and Flour

meet the highest standards. We are credible in our dealings

URC has been a part of the Filipino consumers lives for

has successfully localized both the product and the marketing

C. Directors and Managers

John L. Gokongwei, Jr.

Johnson Robert G. Go, Jr.

Robert G. Coyiuto, Jr.

A. Management principles, styles and practices

Related Party Transaction

Stakeholders Health, Safety and Welfare

2. Identify responsibility and accountability of every

is in addition to the free use of gym facilities in the different

JG-ILED is the leadership platform for systematic and

Basic Management Program (BMP)

Coaching for Effectiveness (CFE)

Problem Solving and Decision Making (PSDM)

Employee Discipline Program (EDP)

Achieving Customer Service Excellence (ACE)

Management Development Program a programs that aims to enhance

Finance for Senior Executives

Strategic Communication Program

Executive Coaching Program

Advanced Negotiation Skills

Leading and Managing Change

Resources Development Human Program - courses designed to ensure

Organization Design and Manpower Planning

Labor Relations Management

Performance Management System

Targeted Selection-Competency Based Interviewing

This policy aims to:

B. Standing of the firm relative to:

leading branded snack foods and Beverage Company in the

launch products in each of its international markets,

international operations in Thailand, URC has attained

b) Brand name acceptance

manufacturing with a strong and loyal consumer base.

coffee, with these brands becoming popular across the

manufacturing and supply chain management. URC will

Pasig City Production of flour

URC uses the modern and larger facilities compare to

d) Marketing and distribution outlets

Philippines and in its overseas markets, including funding

regional distributors and independent business managers. URC

distributors over the next two years, URC plans to increase

accounts being serviced as of fiscal year 2006 to 120,000

solidify its presence in sari-sari stores and groceries,

products are generally sold by the Company either directs

distributors with delivery subsequently being undertaken by

normally made on cash basis, while 15- to 30- day credit

marketing, product innovation and quality, and strong brand