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STRAMA the Final Showdown!!

STRAMA the Final Showdown!!

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Executive Summary Julie’s Bakeshop or Julie’s Franchise Corporation has grown to become the largest bakery chain in the

Philippines. By 1999, Julie’s counted 210 branches nationwide. Julie’s Bakeshop has served customers all over the nation its distinctive brand of high quality, freshly baked breads. With more than 500 branches and outlets nationwide, Julie’s is a shining example of success through hard work and commitment. Its main office in Manila is situated in Lot 1 Block 1 Amang Rodriguez Avenue, corner JRA Subdivision, Rosario, Pasig City and the office in Cebu is situated in C. Padilla Street, Duljo Fatima, Cebu City. After a thorough research primed, the external analysis of Julie’s Bakeshop shows a figure of 3.15,which confirms that the firm’s strategies effectively take advantage of existing opportunities and minimize the potential adverse effects of external threats. The internal analysis on the other hand, shows a figure of 3.3, which shows that Julie’s Bakeshop has been busy striving to be the best as it service not only to its customers, franchisees, and to retailers but also to its internal system that made them recognize as one of the outstanding franchising company in the Philippines. With the competitive advantage and market sustainability that the researchers found, the researcher strongly recommends after comprehensive consideration with the Grand Strategy Matrix (GSM) to pursue among three strategies: Market Development, Market Penetration and Product Development as these strategies would lay of a claim to a solid foundation and dynamic synergy upon which to build even more vigorous growth in the future.

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I. Company Profile The Rising of a Breadwinner Since 1981, Julie’s Bakeshop has served customers all over the nation its distinctive brand of high quality, freshly baked breads. With more than 500 branches and outlets nationwide, Julie’s is a shining example of success through hard work and commitment. Julie’s success is attributed to the culture set down by its founder and namesake, the original Tita Julie, Mrs. Julia Gandionco. A canteen concessionaire since 1970, Mrs. Gandionco, or Ma’am Julie as she prefers to be called, started the first Julie’s Bakeshop in Wireless, Mandaue on January 6, 1981. The bakeshop was intended to answer Ma’am Julie’s canteen needs of bread products. Running a bakery has been a very challenging endeavor for Ma’am Julie. Not having any experience in the bakery business nor even knowing how to bake, she ventured into this business with pure guts and faith in God. With the support of her husband, Mr. Deigs Gandionco, Ma’am Julie put up her first bakeshop and named it after herself at the insistence of Bobby Gandionco, her eldest son. While seeming“baduy” at first, Bobby Gandionco’s suggestion that using his mother’s name would give personality to the bakeshop was sheer serendipity. Within six months, a second Julie’s opened in Urgello, Cebu City. Three years later, Julie’s had ten branches all over the city of Cebu. The increasing number of branches led to the formation of RJ and Sons Commodities, led by Bobby Gandionco, to supply the various Julie’s branches with its baking ingredients and supplies. It was in 1988 when the first Julie’s outside Cebu opened in Iloilo. This opened the door that ultimately led to the secret to Julie’s rapid growth: Franchising. The first Julie’s franchise started in 1998 in Mambajao, Camiguin. On July 2, 1998, Julie’s
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Franchise Corporation was registered in the Securities and Exchange Commission. The path to nationwide success was open and clear. Since then, Julie’s Bakeshop has grown to become the largest bakery chain in the Philippines. By 1999, Julie’s counted 210 branches nationwide. So, it was no surprise that on June 1999 Julie’s was dubbed as the “Success Story of the Year” and On October 1999 as “Outstanding Country – Side Investor” by the Philippine Chamber of Commerce and Industry Inc. These awards were followed on June 2000 with the Outstanding Small and Medium Scale Entrepreneur Award and the Certificate of Recognition as Outstanding Small and Medium Scale Entrepreneur Award by the Federation of Filipino – Chinese Chamber of Commerce and Industry Inc., and the Philippine Chamber of Commerce. The year 2000 saw the third Julie’s company formed with the spinning off of Julie’s Franchise Corporation’s maintenance department to form Julie’s Manufacturing Corporation. This is the youngest of all three Julie’s companies. Over the years 2001 and 2002, Julie’s made inroads in the Luzon and Mindanao areas with the first RJ and Sons Commodities in Manila opening on June 22, 2001 and in Davao on October 4, 2002. September 28, 2002 saw Julie’s garner the “Who’s Who in the Philippines: The Best Bakeshop of the Year” by the National Consumers Excellence Award. With its over 300 branches and outlets across the country, Julie’s was a success phenomenon on its own. The three Julie’s companies, RJ and Sons Enterprises, Julie’s Franchise Corporation and Julie’s Manufacturing Corporation merged in July 1, 2003 to become Julie’s Franchise Corporation with three divisions: the Franchise Division, the Supply and Logistics Division and the Corporate Shared Services Division.

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From then on, Julie’s continuously garnered valuable recognitions from esteemed institutions like the Philippine Franchise Association and Philippine Marketing Association. 2004 CEO Roberto R. Gandionco was awarded as the Agora - Outstanding Achievement Award for Entrepreneurship (Large Scale) by the Philippine Marketing Association. 2005 Julie’s Franchise Corporation was awarded with the Franchise Excellence Award for consistently exhibiting high standards of growth and development in all aspects of franchise operations. The award was given by the Philippine Franchise Associations, Department of Trade and Industry, Philippine Chamber of Commerce and Industry, and the Philippine Retailers Association. Franchise Marketing Campaign of the Year Award (Food Category – Medium Scale) Franchisee of the Year Award – Ms. Ritchie Hawak 2006 CEO Roberto R. Gandionco was one of the finalists of Ernst & Young Entrepreneur of the Year. - Hall of Fame/ Outstanding Filipino Franchise of the Year Julie’s Bakeshop (Medium Scale Category/ Specialty Bakeshop) - Franchisee of the Year - Carolyn Francisco - Garbo sa Sugbu Award Recognition from the Office of Governor Gwen Garcia for the success and fame Julie’s has given to the Province of Cebu - Julie’s Bakeshop’s birthplace. 2007 Most Socially Responsible Entrepreneur Award

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Cebu Chamber of Commerce and Industry Franchise Marketing Campaign of the Year Franchisee of the Year Award – Dr. Ed Escalona At Present… Julie’s Franchise Corporation is manned by professionals who assist each franchisee every step of the way from Franchise Application, Expansion, Operation, Training, Marketing, Construction, Accounting, and Human Resources Development. It has a fully operational laboratory under a Research and Development Department that continuously improves and innovates on over 300 varieties of bread and bakery products to respond to the need of the regional markets. Julie’s today is a household name anchoring its success on superior taste and freshness of its products as well as its clean and convenient outlets. With more than 500 branches and outlets, 99% of which are franchised, Julie’s continues to strengthen its market reach from North Luzon to Mindanao. With over 180 franchisees and still growing, pursuing Julie’s principles of Service Excellence and Total Customer Satisfaction, Julie’s Franchise Corporation aims to have Julie’s Bakeshop present in every town in the country. Julie’s franchisees are all independent entrepreneurs committed to practicing the Julie’s Franchise Corporation’s business in all aspects of its operations, thus maintaining Julie’s Bakeshop’s position of market leadership in the industry. On Standards… All Julie’s Bakeshop franchisees and bakery staff are equipped with the knowledge about the company’s strict quality standards through intensive and thorough training, seminar-workshops and hands-on product handling. The Julie’s baking technology

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program highlights the Julie’s way of achieving product quality, service excellence and customer satisfaction. Julie’s Franchise Corporation has established a reward system for bakery team performance, a motivational tool to drive all JBS teams nationwide to excel both in sales and in operational efficiency. Julie’s Franchise Corporation recognizes franchisees whose bakeries adhere to the Julie’s Bakeshop system, upholding the HIGHEST STANDARDS OF QUALITY, CUSTOMER SERVICE, CLEANLINESS, SANITATION, MAINTENANCE and RELIABLE MANAGEMENT. Every Julie’s Bakeshop is assured of continuous marketing campaign support from bakery opening onwards to building superior brand image. A Value Driven Business… Julie’s Bakeshop’s success is not only measured in the fulfillment of its endeavors as a value driven franchise business, but also in establishing harmonious relationships with the Filipino community. The company continues to initiate and support cause-oriented programs in partnership with the community and the local government through its Corporate Social Responsibility (CSR) Programs. Julie’s Bakeshop’s achievement in its business and good relationship with the Filipino people is a measure of true growth. Julie’s Bakeshop does not only bring its bread closer to the Filipino people but it also enhances the capability of the franchisees towards growth, making them proud Julie’s Breadwinners.

II. Research Design and Methodology The researcher was able to acquire data from the following sources:
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Primary Data The Primary Internal Data was gathered through Julie’s Company’s website it includes the company background and product and services information. Primary external data was congregated from the website of the Securities and Exchange Commission. This information includes external factors that affect the industry, market size, market growth ranking positions of all baking companies in the Philippine market. Secondary Data Secondary external and internal data was gathered through the readings from the internet. The information includes economic trends in baking business and its major competitor’s information; it also includes the latest technologies in baking industry in the Philippines. The data requirement of this paper includes recent surveys, projections and operationa l highlights. It also requires information regarding recent trends regarding the industry under study. For comparative purposes, background of some major competitors in the industry is also needed, especially in the financial and operations aspect. Limitations The Strategic Management Paper is only limited to study and analysis of Julie’s Bakeshop, among the different sectors in the industry this study focuses on baking institutions in the Philippines. The focus of this paper is on the company’s performance and position in the market. The annual report of the most recent year (2010) was not yet available during the study. It assumed therefore that the financial statements for the year 2009 were the same as of the year 2010, which is the most recently available financial statement.

III. Environmental Analysis
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i.Economic Specific Factor Exchange rate The Philippine Peso will likely continue to appreciate against the US dollar to Ps 43.89: U$1 (source: BSP, Dec. 30, 2010). Such appreciation to persist due to continuing rise in OFW remittances, rising foreign investments, weak US economy & currency. A strong currency may make exporting more difficult because it may raise the price in terms of foreign currency. Julie’s Bakeshop may have a hard time importing baking ingredients from other countries. Relevance to Enterprise

Interest Rate The Philippine central bank held its policy rate at a record low of 4% Labor cost Non-Agricultural –php 404.00 Agriculture Plantation- php 367.00 Non-Plantation php367.00

Since the interest rare in the country is very low there is a higher tendency for Julie’s Franchising Corporation to have foreign partners or investors, because it cost less to borrow.

Since the labor cost in the Philippines is lesser than the other countries, they can produce more baking products with a lower labor cost.

ii.Political / Legal SPECIFIC FACTOR RELEVANCE TO ENTERPRISE

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Taxation Policy The tax rate for Domestic Corporations is 30% on worldwide income. Foreign Branch Offices have a tax rate of 30% on Philippines based income. Business Regulation Some laws regarding business will guide the franchisee of Julies Bakeshop to a better business operation. Philippines’ Local Governments Improving Business Regulation and Empowering Entrepreneurs, Finds World The policy will give awareness to the enterprise on whatever changes has been made regarding taxes, so as to avoid evasion or other related matters.it is beneficial both on the company and for the Government. In terms of financial matters.

iii.Technological SPECIFIC FACTOR Website Improve the website to communicate with the customers easily and conveniently. New Baking Technologies What are the latest trends in production of baking products. RELEVANCE TO ENTERPRISE Since almost everyone has the easy access on the internet it is very helpful for Julie’s Bakeshop to advertise their products and how to franchise online. It will help boost their sales.

There are a lot of baking technologies now a days, it will be very helpful for the production of Julie’s Bakeshop, it may double or triple their production daily.

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Social Networks Social networking sites are a big help in promoting and to identify the brand.

Facebook, tweeter etc. there are a lot of potential buyers on those social networking sites, Julies Bakeshop should have their pages on these networking site and post what’s new on their products or franchise programs.

iv.Socio/ Cultural Specific Factors Filipinos Taste Buds Filipino haw a unique sense of taste. Filipino Hospitality Trademark of being a Filipino is being Hospitable on their guest. Change in Lifestyle Through times Filipino always want to be on trend, everyone now today are really health conscious. Many Filipinos now are very health conscious and one thong that Julies Bakeshop should concentrate in is to develop new kind of bread which is sugar free or have more nutritional benefits. Being Filipino we are very accommodating to guest, and commonly Filipino serves bread or any other pastry products to their guest, Filipinos calls it as a merienda. Relevance to Enterprise Filipino culture indeed loves to eat and in every family table there is always a place for breads , it’s a big factor to consider that Filipinos loves eating bread especially in occasions or during free time.

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v.Environment / Climate Specific Factors Relevance to Enterprise Climate change has had an impact on International farmers, ranchers, rural land owners, and foresters, and will continue to do so, through its influence on production, distribution, and yields. Continuous climate change in the Philippines may affect the Baking Industry especially the Flour Industry and soon will affect the prices of the products that uses Flour, sugar etc. As to baking industry it is an ideal climate for agriculture with ample rainfall all year long. Julie’s Franchising Corporation has the advantage of buying less expensive agricultural products, instead of importing into other countries.raw materials such as eggs,milks,oil and other baking ingredients. In Philippines pure water is very difficult to obtain. This is due to excretion of biological and other waste into the water of rivers, lakes, and ponds. As a baking corporation water is very important to production, the corporation may have the tendency of consuming too much water. It may affect the products prices because water is one of the main ingredients of bread and other pastries.

Climate Change in the Philippines CO2 emission 75,299.2 Climate in the Philippines The Philippines is a tropic nation with a hot and humid climate. Pollution in the Philippines (Air and Water)

IV.Industry and Competitor Analysis i.)Porter’s 5 Forces 1.)Rivalry of competition Conclusion Basis for conclusion

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Medium

Increasing number of competitors – because, French Baker, Goldilocks, Red ribbon and Pan de Manila, this bakeshops really marked their name in industry and Julies Bakeshop really having the hard time competing with this company. The said competitors already built such public image regards to baking and other pastry products. Consumers can switch brands easily- because of a lot of baking company in the market today there are high tendency for the consumers in switching brand easily. Industry demand declining – the purchase power is depreciating and the people decided to search for new alternatives Barriers to leaving the market/industry are high - a firm may be forced to continue competing in a market, as the costs of leaving may be higher than those incurred if they continue competing in the market and obstacles in the path of a firm which wants to leave a given market or industrial sector. These obstacles often cost the firm financially to leave the market and may prohibit it doing so. Products are perishable- Julie’s bakeshop offers a wide variety of pastry products and it is a big factor for the company to keep their good fresh and, it’s competitors are using ingredients or adding some preservatives to keep the bread and other pastry products fresh.

2.)Potential for New Entrants Conclusion Basis for Conclusion

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Medium

There are a lot of Baking companies in the Philippines, Julie’s bakeshop’s key competitors are the pioneering baking companies on the Philippines, it may be too tough for them to gain loyal customers. Strong customer loyalty- The product is loved by the customers because it is affordable and has a good taste. Strong brand preferences – for example if they don't find the ideal taste that they're looking for, they'll look for other bake shops that will satisfy what their taste buds. Lack of access to raw materials- the basic ingredients of bread are sugar, milk, flour and egg, and the prices of those ingredients rapidly had hit the global high and will continue to high in the next few weeks or months. It may be a big factor for Julie’s bakeshop to get cheaper suppliers of those ingredients, and it would be a reason for them to double their products’ prices. Current competitors have strong marketing resources – because of having a strong customer loyalty the competitors of Julie’s Bakeshop has the advantage of having strong marketing resources. And the competitors are already in the industry quite some time compare to Julie’s Bakeshop.

3.)Bargaining Power of Suppliers Conclusion weak Basis for conclusion Considering if the brand of the supplier is strong and the role of quality and service of baking products. There are a lot of baking suppliers in the market, and it may be a very hard one for Julie’s Bakeshop to find suppliers that offers cheap cost and gives a good deal. Plus the industry is not the key customers to the suppliers. Because of the high price in sugar and flour the baking industry is trying to buy in large volume to lessen the cost. There is a high tendency that Julie’s Bakeshop will charge or pass the cost to the consumer resulting into having a costly pastry product, if the company can’t find a supplier which offers a good deal and price.

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4.) Bargaining power of Buyers Conclusion Medium Basis for Conclusion Julie’s Bakeshop has a large volume of competitors in the market, there are many sellers and at the same time there are dominant buyers. Filipinos love to eat bread everyday and some of the customers buy in volume. The products are undifferentiated compare to the prices of its key competitors like goldilocks, red ribbon, pan de manila. The quality of breads and services of Julie’s bakeshop is just the same to its competitors, it’s just that Goldilocks and Red Ribbon are larger companies compared to Julie’s Bakeshop.

5.) Potential for Substitutes Conclusion Basis for conclusion

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Medium In light of today’s economic status, people are searching for less expensive products. Julie’s Bakeshop offers cheap breads and other pastry product with a high quality same to their competitors. There are a lot of baking companies in the market and for Julie’s Bakeshop to keep its customers they must increase their market shares and keep the aggressiveness in the market. Julie’s Bakeshop has served customers all over the nation its distinctive brand of high quality, freshly baked breads. With more than 500 branches and outlets nationwide.

Summary of Porter’s Five Forces of Competition The researcher performed the industry analysis using Porter’s five forces model. The researcher specifically analyzed the rivalry among competing firms, potential development of substitute products, and potential entry of new firm, bargaining power of suppliers and bargaining power of consumers. Based on the analysis above the researcher concludes - The researcher concludes that the intensity of rivalry is MEDIUM - The researcher concludes that the threat of substitutes is MEDIUM - The researcher concludes that the threat of new entrants is MEDIUM - The researcher concludes that the bargaining power of consumer is MEDIUM - The researcher concludes that the bargaining power of suppliers is WEAK

ii.Competitor Analysis #1 Competitor Goldilocks Goldilocks traces its roots to the collaboration and complementary talents of the women, whose collective love for good food fueled what has been transformed into the global enterprise today. In 1966, two sisters Milagros and Clarita, and their sister-in-law, Doris, decided to open a small bakeshop along to the Pasong Tamo Street, Makati. The
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sisters have already been dabbling in the business for some time ---Milagros, by supplying chiffon slices to a number of Manila’s canteens, and Clarita, by baking and decorating cakes during special occasions in Bicol --- when they decided to take their hobby one step further. A third sister, Maria Flor, suggested that they name the enterprise “Goldilocks“, after the character in a fairy tale, aiming to make it easier for children and their mothers to remember its name; and because it suggested luck and prosperity. Over the years, Goldilocks did prosper, but not due to mere luck. The sisters’ dedication, hard work and business sensibilities led to a second branch just two years after the pioneering outlet began operating. From ten employees and two display stands, Goldilocks has become a global brand, expanding to over a total of 250 stores in the Philippines and overseas; and hiring thousands of local employees. The opening day total sales of P574 back in 1966 has multiplied thousand of times over, reaching a system-wide sales of P5.9 billion by the end of 2007. THE MARKET For the most Filipinos, the Goldilocks fairytale has two versions: a golden-haired lass who encounters the three bears, and the bakeshop that has become an integral part of the Filipino way of life. Now on its 42nd year, Goldilocks remains that company and more. At the forefront of its industry, the company enjoys a substantial lead over competitors in all aspects of performance. National consumer surveys have consistently identified Goldilocks as the landslide winner in customer satisfaction indices such as Awareness Conversion (the ability to translate brand awareness to actual trial) and Share of Heart (the emotional approach to measuring preference). Indeed according to a 2005 study by AC Nielsen, the world’s leading market research and information firm, Goldilocks enjoys a total product awareness of 100 percent, with seven out of 10 respondents mentioning it first. More impressively, Goldilocks has managed a full conversion of awareness-to-trial, and has done exceedingly well in retaining trial to regular purchase. It enjoys a committed customer base, and continues
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to attract even more. #2Competitor Red Ribbon From its store in Timog, Quezon City what started out as hobby-induced business in 1979, turned out to be a proudly Filipino-owned and professionally-run business network. Red Ribbon has grown to over 200 outlets all over the country and over 38 stores in the US with locations in California,Las Vegas, Arizona, New Jersey and New York. With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon entered a new phase in its company history. The company will soon become the biggest and fastest-growing bakeshop in the Philippines. Its mission is to bring the joy of eating to everyone through its great-tasting food and superior quality. Red Ribbon uses premium ingredients, such as real butter, high quality cake flour, and its unique Red Ribbon cream. Red Ribbon cakes have become a tradition, an integral part of every celebration - birthdays, christenings, anniversaries, and weddings. Owing to its heritage of bringing families and friends together through its delicious, elegantly-designed cakes and other specially prepared products, Red Ribbon captures this core benefit in a campaign that best summarizes what the company has stood for over the years, "Whatever the celebration, it's more beautiful with a Red Ribbon." #3Competitor Gal’s Bakery In the 1960's, an enterprising man of modest means, Mr. Galileo Ancajas, dreamt of owning his business. While working for a paper product company, he bought and sold bread to his co-workers to augment his income. Gifted with a keen business instinct, he saw the opportunity to set up his own bakery. With almost no technical know-how in running the business, he slowly learned the ropes, with a few hits and misses through hard work, determination and the support of his better half, Remedios. Thus, in 1965, the first GAL's BAKERY was established in Tipolo, Mandaue City, Cebu. Starting on a 30 sq.m. space with a handful of employees, the home spun venture soon became a flourishing business with the opening of more bakery outlets to cater to a wider, diverse market. With more stores to handle, family members soon gave their share in helping the business thrive. A son-in law, Bill Gayatin, undertook the research
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and development by coming up with tasty and reasonably priced baked products on a regular basis, further beefing up the product line-up of GAL'S BAKERY to as much as 108 baked products. The family would have been just content in keeping the GAL'S BAKERY network in Cebu and selected cities in Visayas and Mindanao. However, events would soon unfold GAL'S was meant for more growth. A long-time friend of the family introduced GAL'S BAKERY to Lorna Tolentino and her friends, who at that time, were looking for a new business venture to set up in Manila. The group went to Cebu to meet "Tito Gal", as Mr. Ancajas is fondly called, and immediately hit it off. It was then agreed that Ms. Tolentino and her friends would incorporate and the entity would become the Master Franchise Holder of GAL'S BAKERY in the Luzon area. The group was formalized as Baley Ventures Corporation and actively composed of: 1) Bill & Arcy Gayatin 2) Boogey Ancajas 3) Lorna Tolentino 4) Elena Orosa 5) Lenore Yap 6) Miriam Pantig 7) Alex Cruz 8) Teresa Leung 9) Kristine Tiu 10) Chelo Rivera

A hands-on training was then completed by the group under Bill Gayatin's tutelage and with his help, they were able to set-up the first Metro Manila branch of GAL'S BAKERY in Santa Monica, Novaliches, Quezon City. The rest is as they say is history. From that first branch, which opened in November 15, 2001, it has grown to 32 Luzon branches at the end of the 2004, bringing the network of GAL'S BAKERY to 80 branches nationwide. With the tremendous growth of GAL'S BAKERY in Luzon, it did not escape the watchful eyes of entrepreneurs who wish to venture into the bakery business. Though the group received a good number of franchise inquiries starting on the first quarter of 2002, it was not until the later part of that year that the group decided to expand and grow via franchising. Today GAL'S BAKERY is open to franchising and targets 10 - 20 franchise stores opening per year.

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KEY COMPETITORS COMPETITOR Competitor#1 Goldilocks Market Share(Number of Branches) 37% Competitor #2 Red Ribbon Market Share(Number of Branches) 30% Red Ribbon is one of the successful Baking Company in the Philippines. Red Ribbon have the financial capability of competing in the Baking Industry. For Red Ribbon Bakeshop, the ingredients to success are no secret. Quality. Service. Value. Customer. Red Ribbon has even taken itself to a higher level of customer service. Improvements are geared towards a more delightful dine-in experience with strict FSC (Food, Service, Cleanliness & Condition) compliance, better take-out experience to ensure faster servicing time, and enhanced delivery service with a broader coverage. Your favorite cakes are just a phone call away with our easy-to-recall Metro Manila Cakes by Delivery hotline number 8-77-77. Because of its surviving skills in the Baking Industry Gal’s Bakeshop is still competing with its key competitor. With the tremendous growth of GAL'S BAKERY in Luzon, it did not escape the watchful eyes of entrepreneurs who wish to venture into the bakery business. REASONS FOR CHOOSING AS A BENCHMARK Goldilocks is one of the most Filipino owned bakeshop in the Philippines. They established already established a good image in the Philippine Baking Industry. Goldilocks is the best performing bakeshop in the Filipino hearts and mind. With 100% total brand awareness and top-of-mind score of 71% per 2005 UAI study.

Competitor #3 Gal’s Bakeshop Market Share(Number of Branches) 6%
iii.CRITICAL SUCCESS FACTORS CSF #1 Financial Position
What is the current financial capability of the company.

Importance weight (%) 0.40

Reasons for choosing CSF and the importance of weight Because of having around 250 stores inside and outside the country Goldilocks made its way Page 19

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#2 Technology
What are the latest on technology and how it affects the company’s sales and production.

0.30

#3 Customer Service How the company serve their customers and how they build loyalty.

0.40

on top of the market in the Baking and fastfood industry. the company enjoys a substantial lead over competitors in all aspects of performance. National consumer surveys have consistently identified Goldilocks as the landslide winner in customer satisfaction indices such as Awareness Conversion (the ability to translate brand awareness to actual trial) and Share of Heart (the emotional approach to measuring preference). Using the latest technology in baking, goldilocks created a good products and services. They also have a very accessible internet and phone services. Their loyal customers can access it fast and very reliable. Goldilocks as one of the pioneering baking company in the country already established a good relationship in every Filipino, they always adopts the Filipino hospitality on their services. Most Filipinos consider Goldilocks not only a brand, but also a Filipino Institution. In fact its popular tagline, “How thoughtful, how Goldilocks” has evolved over the years into “How thoughtful, how Pinoy (colloquial for ‘Filipino’)”, and later to “Ang sarap Page 20

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magmahal ng Pinoy!”, embracing a culture and tradition that goes beyond the name.

Innovation New and improve product services and features

0.30

As a fast growing Baking Company Innovation is a big factor in maintaining market penetration. New product features may increase the number of customers.

iv.)Your Firm’s rating per CSF (Julie’s Bakeshop) CSF #1 Financial Position
What is the current financial capability of the company.

FIRM RATING (14) 3

REASONS FOR RATING
Since then, Julie’s Bakeshop has grown to become the largest bakery chain in the Philippines. By 1999, Julie’s counted 210 branches nationwide. Julie’s today is a household name anchoring its success on superior taste and freshness of its products as well as its clean and convenient outlets. With more than 500 branches and outlets, 99% of which are franchised, Julie’s continues to strengthen its market reach from North Luzon to Mindanao.

#2 Technology
What are the latest on technology and how it affects the company’s sales and production.

3

The Julie’s baking technology program highlights the Julie’s way of achieving product quality, service excellence and customer satisfaction.

#3 Customer Service How the company serve their customers and how they build loyalty.

4

Since 1981, Julie’s Bakeshop has served customers all over the nation its distinctive brand of high quality, freshly baked breads.

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#4 Innovation New and improve product services and features

3

Innovation is one of the key factors that Juiles Bakeshop should concentrate into. There are a lot of potential entrants and they should know how to innovate their products and services to keep their loyal customers.

v.)CPM Key Competitor #1 (Goldilocks) CSF #1 Financial Position
What is the current financial capability of the company.

FIRM RATING (1-4) 4

REASONS FOR RATING Because of having around 250 stores inside and outside the country Goldilocks made its way on top of the market in the Baking and fastfood industry. the company enjoys a substantial lead over competitors in all aspects of performance. National consumer surveys have consistently identified Goldilocks as the landslide winner in customer satisfaction indices such as Awareness Conversion (the ability to translate brand awareness to actual trial) and Share of Heart (the emotional approach to measuring preference). Using the latest technology in baking, goldilocks created a good products and services. They also have a very accessible internet and phone services. Their loyal customers can access it fast and very reliable. Goldilocks as one of the pioneering baking company in the country already established a good relationship in every Filipino, they always adopts the Filipino hospitality on their services. Most Filipinos consider Goldilocks not only a brand, but also a Filipino Institution. In fact its popular tagline, “How thoughtful, how Goldilocks” has evolved over the years into “How thoughtful, how Pinoy (colloquial for ‘Filipino’)”, and later to “Ang sarap magmahal ng Pinoy!”, embracing a culture and tradition that goes

#2 Technology
What are the latest on technology and how it affects the company’s sales and production.

3

#3 Customer Service How the company serve their customers and how they build loyalty.

4

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beyond the name.

#4 Innovation New and improve product services and features

4

One of the first 100 companies in the country to get GMP and SSOP (Good Manufacturing Practices and Standard Sanitation Operating Procedures) certifications. They innovate their products by acquiring the latest in baking industry, it resulted into a good sales over the years.

Key Competitor #2

(Red Ribbon) CSF #1 Financial Position What is the current financial capability of the company. #2 Technology What are the latest on technology and how it affects the company’s sales and production. #3 Customer Service How the company serve their customers and how they build loyalty. 3 FIRM RATING (14) 4 REASONS FOR RATING With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon entered a new phase in its company history. The company will soon become the biggest and fastest-growing bakeshop in the Philippines. Its mission is to bring the joy of eating to everyone through its great-tasting food and superior quality. Red Ribbon uses premium ingredients, such as real butter, high quality cake flour, and its unique Red Ribbon cream

4

For Red Ribbon Bakeshop, the ingredients to success are no secret. Quality. Service. Value. Customer. Red Ribbon has even taken itself to a higher level of customer service. Improvements are geared towards a more delightful dine-in experience with strict FSC (Food, Service, Cleanliness & Condition) compliance, better take-out experience to ensure faster servicing time, and enhanced delivery service with a broader coverage.

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#4 Innovation New and improve product services and features
Key Competitor #3 (Gal’s Bakeshop) CSF #1 Financial Position

4

Red Ribbon dominates the baking industry through wide variety of choices in cakes and other pastry products, through innovating their products they created a good results in fair competition with its key competitors.

FIRM RATING (1-4) 2

REASONS FOR RATING Because of having only 32 outlets in Luzon Gal’s bakeshop is having a tough time competing on its key competitors. Because of its financial capability Gal’s Bakeshop is having a hard time on getting the latest technologies on baking compare to it’s competitors. Because of its long stay in the baking industry, it’s loyal customers already built trust on their product and services. Gal’s bakeshop continues to reach out on every Filipino home. Through the years Gal’s bakeshop exerted too much efforts in innovating their pastry products. Resulting into good sales every year.

What is the current financial capability of the company.

#2 Technology
What are the latest on technology and how it affects the company’s sales and production.

2

#3 Customer Service How the company serve their customers and how they build loyalty.

3

#4 Innovation New and improve product services and features Conclusion

3

Based on CSF and CPM ratings Goldilokcs has a strong andvantage compared to Julie’s Bakeshop. Goldilock’s Competitive advantage had allow him to be the number one baking company in the Philippines. Julie’s Bakeshop’s current competitive position is middle ground, there are a lot of baking companies in the industry and one of its key competitors have a very strong financial position, Julie’s bakeshop will have a tough one on sustaining its market stability. The Company needs strategies to address the stiff competition in the industry. Bolivar,Castillo Julie’s Franchise Corporation

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vi.) EFE Matrix

The researcher performed the industry analysis using the external factor evaluation matrix. The external factor evaluation matrix summarizes and evaluates the economic, social, cultural, demographic, environmental, technological and competitive information. The external factor evaluation matrix for the Julie’s Frachising Corp. is given below: Opportunities 1.)Acquiring latest technology in baking 2.)Increasing number of potential customers 3.)Advertising and Social Networking 4.)Market Penetration Threats 1.)Brand Recognition 2.)Increasing Number of Baking Company 0.10 0.10 4 3 0.4 0.3 Weight 0.10 0.15 0.10 0.15 Rating 3 3 2 3 Weighted Score 0.3 0.45 0.2 0.45

3.)Strong Competitors in the 0.15 Industry 4.)High cost of baking ingredients(sugar,egg,flour) Total: 0.15 1.00

3 4

0.45 0.6 3.15

As the results shows that Julie’s Bakeshop is responding above average (3.15) to the environment for exploiting opportunities and to overcome threats. There a lot of strong competitors in the Baking industry and there a lot of increasing number of baking company, Julie’s Bakeshop should deal on how to prevent loss of customer loyalty and should improve their brand awareness among the Filipino market.

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V.Company Analysis i. Vision/Mission Statements Old Mission Vision of Julie's Franchise Corpration Philosophy Each individual in our organization is committed to the pursuit of Service Excellence and the highest level of Customer Satisfaction to any one that we do business with in the service of our God and our Country. Our Vision A Julies Bakeshop in every town. We will be the most sought – after food freanchising company maintaining leadership in the neighborhood bakeshop market. Our Mission Julie's Bakeshop is a major brand established as a family – oriented business and making its presence felt all over.We maintain very high quality standards at each Julie's Bakeshop offereng freshly baked products using only the finest ingredients and produced in a clean environment in full view of our customers. Criteria

Customers Product or Services

No Yes

N/A We maintain very high quality standards at each Julie's Bakeshop Offering freshly baked products using only the finest ingredients and produced clean environment in fyull view of our customers.

Markets

Yes

We will be the most sought – after food freanchising company maintaining leadership in the neighborhood bakeshop market.

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Concern fir SGP Technology Philosophy

No No Yes

N/A N/A Each individual in our organization is committed to the pursuit of Service Excellence and the highest level of Customer Satisfaction to any one that we do business with in the service of our God and our Country.

Self - Concept

Yes

Julie's Bakeshop is a major brand established as a family – oriented business and making its presence felt all over.

Public Image Employees

No No

N/A N/A

ii.Revised Vision- Mission of Julie's Franchising Corporation Philosophy Each individual in our organization is committed to the pursuit of Service Excellence and the highest level of Customer Satisfaction to any one that we do business with in the service of our God and our Country. Our Vision We will be the most sought – after food freanchising company maintaining leadership in the neighborhood bakeshop market. Every Julie's bakeshop is assured of continous

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marketing campaign support from the bakery opening onwards to building superior brand image. Our Mission Julie's Bakeshop is a major brand established as a family – oriented business and making its presence felt all over. We maintain very high quality standards at each Julie's Bakeshop offereng freshly baked products using only the finest ingredients and produced in a clean environment in full view of our customers. All Julie's Bakeshop Franchisees and bakery staff should be equip with the knowledge about company's strict quality standards through intensive and thorough traning, seminar – workshops and hand – on product handling. The Julie's Baking technology program highlights the Julie's way of achieving product quality, service excellence and customer satisfaction. Julie's Bakeshop's succes is not only measured in the fulfillment of its endeavors as a value driven franchise business, but also in establishing harmonious relationships with the Filipino community. Julies bakeshop's achievement in its business and relationship with the Filipino people will be the measure of true growth. Julie's Bakeshop will not only bring its bread closer to the Filipino people but it will also enhance the capability of the franchisees towards growth, making them proud Julie's Breadwinners. Criteria Customers Yes The Julie's Baking technology program highlights the Julie's way of achieving product quality, service excellence and customer satisfaction. Product or Services Yes We maintain very high quality standards at each Julie's Bakeshop offereng freshly baked products using only the
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finest ingredients and produced in a clean environment in full view of our customers. Markets Yes We will be the most sought – after food freanchising company maintaining leadership in the neighborhood bakeshop market Concerns for SGP Yes Every Julie's bakeshop is assured of continous marketing campaign support form the bakery opening onwards to building superior brand image. Julie's Bakeshop will not only brigns its bread closer to the Filipino people but it will also enhance the capability of the franchisees towards growth, making them proud Julie's Breadwinners. Technology Yes The Julie's Baking technology program highlights the Julie's way of achieving product quality, service excellence and customer satisfaction Philosophy Yes Each individual in our organization is committed to the pursuit of Service
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Excellence and the highest level of Customer Satisfaction to any one that we do business with in the service of our God and our Country. Self - Concept Yes Julie's Bakeshop is a major brand established as a family – oriented business and making its presence felt all over. Public Image Yes Julie's Bakeshop's succes is not only measured in the fulfillment of its endeavors as a value driven franchise business, but also in establishing harmonious relationships with the Filipino community. Employees Yes All Julie's Bakeshop Franchisees and bakery staff should be equip with the knowledge about company's strict quality standards through intensive and thorough traning, seminar – workshops and hand – on product handling.

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Recommendation on how will communicate the vision-mission to employees and other stakehoklders: The additional proposed mission statements above clearly states the majority on how to improve their product line, services and values to the customers, practicing good citizenship and the need for competent employees in order to achieve quality service for insuring public. The researcher decided to include respond to social sentiment because it will help to build company’s public image as being socially responsible through responsible management. The core values will be the guiding principle for the employees support the organization. iii.IFE MATRIX Strengths Key Internal Factors 1.)Strong Management team 2.)Good franchising assistance 3.)Good relationship with the Franchisee 4.)Good Relationship with the suppliers 5.)Corporate Culture Weaknesses Key Internal factors 1.)No overseas market 2.)Limited access to international market 3.)Operating Losses 4.)Small number of management team 5.)Small number of suppliers Total: Weight 0.20 0.15 0.05 0.10 0.10 1 Rating 4 4 2 2 3 Wtd Score 0.8 0.6 0.1 0.2 0.3 3.3 Weight 0.05 0.10 0.05 0.10 0.10 Rating 3 4 3 3 3 Wtd Score 0.15 0.4 0.15 0.3 0.3

VI. Strategy Formulation
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The information gathered through the CPM, EFE and IFE matrices will be used to develop strategies for Julie’s Bakeshop. SWOT Matrix, SPACE, InternalExternal (IE) matrix, Grand Strategy, Summary of Strategies and Quantitative Strategic Planning Matrix (QSPM) will be utilized in strategy formulation. 1.)SWOT MATRIX Strengths-S Advertising Job Specialization Pricing Brand Name Weaknesses-W Employee Training Production Speed Limited Branches in Operation Store Size

Opportunities-O Advertising Health Consciousness “Rice Subsidy”

SO Strategies -Being specific and having a concentration with what the products they wanted to offer to the public to satisfy their long for a good and healthy sandwich as a substitute for rice.

WO Strategies -Making the store look more customer friendly to attract more customers, and giving enough benefits to the employees to satisfy their needs for a better production in providing quality and healthy products WT Strategies -Attract more investors to invest to the company to make the financial power more stable and to be able to expand the business and be able to offer much more

Threats-T Newbie in the Market Small Market Share Limited Branches in Operation Competition Food Preferences (Trend)

ST Strategies - Empowering the Brand name through massive advertisements in making a good and health conscious products in just a cheap price, affordable by the

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mass

of the products available for sale.

Competition Food Preferences (Trend)

Key Internal Factor Unique Product Offering (Strengths) Store Popularity (Weaknesses) Strong R&D (Opportunities)

Key External Factor Government proposal for a food subsidy(Opportunity) Entry of other companies (Opportunity) Acquiring more customer friendly products and having better supplies(Threat)

Resultant Strategy Acquire Customer Loyalty and potential customers Massive production of product to top them all, and take the lead Offering of more products for sale to customers and producing it with cheaper cost

Low Employee Involvement (Weaknesses) -

Employee Aggressiveness for secured work(Threat)

Develop a new employee worklife package for their benefit

In order for the business to succeed more, the company should be able to know exactly the strengths of the business and know the opportunities available for them, and by the time they are to execute everything for the good of the

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business, the weaknesses and the threats visible for the business should be avoided. 2.) Space Matrix Internal Strategic Position Financial Strength (FS) Return on investment=3 Leverage=2 Liquidity=3 Working capital=4 Cash flow=3 External Strategic Position Environmental Stability (ES) Technological changes=-3 Rate of inflation=-4 Demand variability=-3 Price range of competing products=-4 Competitive pressure=-4 Price elasticity of demand=-3 Ease of exit from market =-4 Risk involved in business=-2 Barriers to entry=-3

Internal Strategic Position Competitive Advantage (CA) Market share=-4 Product quality=-3 Product life cycle=-4 Customer loyalty=-4 Competition’s capacity utilization=-5 Technological know-how=-4 Control over suppliers & distributors=-5

External Strategic Position Industry Strength (IS) Growth potential=2 Profit potential=-2 Financial stability=1 Technological know-how=3 Resource utilization=2 Ease of entry into market=2 Productivity, capacity utilization=3

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Julies bakeshop is a financially strong firm that has achieved major competitive advantages in growing and stable industry. 3.) IE Matrix

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Based on the on the IE Matrix Julie’s Bakeshop falls on cell 1 grow and build which means that the following strategies are recommended: Market Penetration Market Development Product Development Backward Integration Forward Integration Horizontal Integration

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4.) Grand Strategy Matrix Another alternative tool in formulating strategies is the GSM. It has a l s o f o u r quadrants just like the SPACE Matrix but GSM is base of two evaluative dimensions: competitive position and market growth.Using the grand strategy matrix, firms are grouped into four quadrants depending on the firms competitive position and the industry’s growth.

Looking at the GSM, Julies Bakeshop is located in the quadrant I. They are in an excellent strategicp o s i t i o n . T h e p e r f e c t s t r a t e g i e s a r e m a r k e t p e n e t r a t i o n , m a r k e t development, andproduct development. Being in the quadrant I, they can afford to take advantage of external
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opportunities in several areas. They can take risks aggressively w h e n necessary.

5.) BCG MATRIX

Having an Industry Growth Rate of 8.5% and a Market Share of 27%, Julies Bakeshop falls on Question Marks, which means Low relative market share – compete in high-growth industry    Cash needs are high Case generation is low Decision to strengthen (intensive strategies) or divest

6.) QSPM

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Strategic Alternatives 1.)Improve Franchising Program Key Factors Opportunities 1.)Acquiring latest technology in baking 2.)Increasing number of potential customers 3.)Advertising and Social Networking 4.)Market Penetration Threats 1.)Brand Recognition 2.)Increasing Number of Baking Company 3.)Strong Competitors in the Industry 4.)High cost of baking ingredients(sugar,egg,flour) Total: Strengths 1.)Strong Management team 2.)Good franchising assistance 3.)Good relationship with the Franchisee 4.)Good Relationship with the suppliers 5.)Corporate Culture Weaknesses 1.)No overseas market 2.)Limited access to international market 3.)Operating Losses 4.)Small number of management team 5.)Small number of suppliers Total: Weight 0.10 0.15 0.10 0.15 0.10 0.10 0.15 0.15 1.00 0.05 0.10 0.05 0.10 0.10 0.20 0.15 0.05 0.10 0.10 1.00 4 3 0.2 0.3 3.65 4 4 3 0.2 0.3 3.85 3 .3 4 4 0.2 0.2 2 4 0.10 .4 4 3 3 3 1 3 4 AS TAS 0.4 0.45 .3 .45 0.1 .45 0.6 2.)Build more stores in Visayas and Mindanao AS TAS 4 3 4 3 4 3 .4 0.45 .4 .45 .4 .45

VII. Strategy Implementation
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i.Recommended revised Mission and Vision Statements Philosophy Each individual in our organization is committed to the pursuit of Service Excellence and the highest level of Customer Satisfaction to any one that we do business with in the service of our God and our Country. Our Vision We will be the most sought – after food freanchising company maintaining leadership in the neighborhood bakeshop market. Every Julie's bakeshop is assured of continous marketing campaign support from the bakery opening onwards to building superior brand image. Our Mission Julie's Bakeshop is a major brand established as a family – oriented business and making its presence felt all over. We maintain very high quality standards at each Julie's Bakeshop offereng freshly baked products using only the finest ingredients and produced in a clean environment in full view of our customers. All Julie's Bakeshop Franchisees and bakery staff should be equip with the knowledge about company's strict quality standards through intensive and thorough traning, seminar – workshops and hand – on product handling. The Julie's Baking technology program highlights the Julie's way of achieving product quality, service excellence and customer satisfaction. Julie's Bakeshop's succes is not only measured in the fulfillment of its endeavors as a value driven franchise business, but also in establishing harmonious relationships with the Filipino community. Julies bakeshop's achievement in its business and relationship with the Filipino people will be the measure of true growth. Julie's Bakeshop will not only bring its bread closer to the Filipino people but it will also enhance the capability of the franchisees towards growth, making them proud Julie's Breadwinners. ii.Recommended Revised Strategic and Financial Objectives
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From the Market analysis Goldilocks and Red Ribbon are ahead of Julie’s Bakeshop while Gal’s Bakery is in the lower rate. Goldilokcs and Red Ribbon are very dominant in the baking industry. However, given that the market followers have equal position Julie’s bakeshop can best succeed if it can become the strong number 2 in position next to Goldilocks in the next 3-5 years. The researcher established specific business strategy for Julie’s franchising Corp. The following strategies are both strategic and financial in nature: 1.)Increase Brand Awareness 2.)Improve Franchising Assistance 3.)Expand Stores and build stores inside malls
4.)Build more stores in Visayas and Mindanao

5.) Increase its distribution and promotion of products and services iii. Recommended Strategies In this section, the researcher established specific business strategies for each business objective based on the results of the strategy formulation in the previous chapter. In summary, the recommended business strategies from the strategy formulation chapter are market penetration, product development and market development. The strategic objectives along with the corresponding business strategies are given as follows: 1.)Market Development Julie’s Bakeshop as a baking company should expand its business; its key competitors are located almost everywhere except in the rural parts of the country. Julie’s Bakeshop should also build stores inside the mall to gain its competitive advantage among its competitors like Red Ribbon and goldilocks. Managers take actions like targeting promotions, opening sales offices and creating alliances to operationalize a market development strategy. They should also need to improve its franchising programs and assistance so they can expand stores in Visayas and Mindanao. 2.)Product Development
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Julie’s Bakeshop as one of the oldest in Philippine Baking market should innovate its pastry products to cope up with the consumer rapid change on taste and to the competition among its key competitors, through new-product development m the company sown research -and-development department By new products we mean original products product improvements product modifications and new brands that the firm develops through its own research-and-development efforts. 3.)Market Penetration In light of Julie’s Bakeshop’s market position it should increase its market share through Increasing its distribution and promotion of products and services, more expenditure in marketing and advertising activities. This strategy adopted by the firms to raise their sales revenue without making changes in the products or services. The other dimension of market penetration is the existing market which means firm already offering products or services to the customer but can forecast that the existing sales figures can be improved by working on marketing penetration strategy. iv. Recommended organizational Strategies After analyzing the key internal factors of Julie’s Bakeshop the following strategies are highly recommended: 1.)Should build strong management team. A key element to entrepreneurial success is choosing the right people to be part of your management team. 2.) Should have Good Franchising Assistance Franchisors provide financing assistance either directly or indirectly. 3.)Build Good relationship with the Franchisee On – going support from the franchisor and fellow franchisees. Julie’s Franchising program should keep its continuous support to its franchisee.

v.Financial Projections and Overall Evaluation of the strategies
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The researcher established a forecast of the Net Income of Julie’s Bakeshop . The period covered is 2008-2012. The financial projections below was based on the strategic objectives and proposed strategies on the different aspects of the business in the previous chapters. Year Net Income Increase or decrease %of increase or decrease Conclusion:The strategies recommended by the researcher are projected to gradually enable Julie’s Bakeshop to achieves it strategic objectives of growing the net income to P2,209,947 exceeding the net income of the previous years. vi.Departamental Programs In this section the researcher established different programs and step by step action that will be undertaken to progress the implementation of the strategic plan. The action is discussed based on its objective and strategy it supports. The action plan for Julie’s Bakeshop is given as follows: 1.)Increase Brand Awareness Strategic Program Use the Internet to develop product popularity Develop Business Status with public relations and press It will gain exposure in local press or publication. Continuous Expected Output Gain popularity Time Table Continuous Persons/unit Responsible Marketing Department Marketing Department Public Relation
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2008(actual) 2009(actual) 303,566 208,463.8 -99,103

2010 335,413.0 126,950

2011 542,691.8 207,278.8

2012 2,209,947 1,667,255.2

-145%

62.15%

61%

24%

Bolivar,Castillo Julie’s Franchise Corporation

relations Rent Billboard along This will associate Highways the brand with a specific product 2.)Improve Franchising Assistance Strategic Program Positive Reinforcement Monthly Evaluation of the new Franchise for the next 2 years The role of Mentoring Expected Output Increase potential franchisee Will oversee the growth of the business effective franchiseesupport

Continuous

Officer/s Marketing Department

Time Table Continuous Monthly for the next 2 years

Persons/unit Responsible Management/ Franchising Officers Management

Continuous

Management

3.)Expand Stores and Build Stores inside malls Strategic Program Increase the Business Capacity to produce the product or service Assess whether the current number of employees can handle the new business load Expected Output Will assess how much money will be needed to expand the business Will assess how employees to employ, will lessen the cost of the company. First months of the strategy implementation Time Table Quarterly Persons/unit Responsible Management, Marketing, Financing Management, Human resource

Target other markets. Look for larger

Will serve different markets Will serve larger

Annually Annually

Marketing , Management All department
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Bolivar,Castillo Julie’s Franchise Corporation

premises if needed.

market, and costumers

4.) Build more stores in Visayas and Mindanao Strategic Program Build Stores in Visayas and Mindanao 5.) Increase its distribution and promotion of products and services Strategic Program Advertise Expected Output Increase in profit Time table Monthly Monthly Persons/Unit resposible Marketing Department Management, Marketing Departmetn It will maximize company’s profit and revenue and will stabilize the price of the products Monthly Accounting Department, Management Expected Output Will serve a larger market Time Table Quarterly Persons/unit Responsible All departments

(tv,radio,newspapers,etc) and sales Sales promotion (Could increase in sales involve using money off coupons or special offers.) Set pricing objectives short term

VII. Strategy Evaluation, Monitoring and Control In this section the researcher prepare a Balance Scorecard as strategy evaluation tool, It will allow the organization to evaluate from our perspectives: Financial Performance, Customer Knowledge, Internal Business processes and Learning and Growth.

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Proposed Strategy Market development

Key Result Areas Target different market (malls,

Performance Indicators Establishments of the said

Time Frame 2 to 3 years

Department in Change Marketing, Finance, Production and Operations Marketing, Management, Production and Operations Marketing, Production and Operation

establishments) areas. Market Penetration Increase the market share in the Baking Product development Industry Innovation in Baking products and Baking Equipments Profit and sales 2 t0 3 years Result of the Market share 2 to 3 yrs

Balanced Scorecard for Julie’s Bakeshop Area of Objectives Scorecard Measurement Timetable
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Financial Perspective

Improve Productivity Increase by 25 – 30 % 2 to 3 years Long Term Share Holder Value Return of Investment Customers satisfaction

Customers

Increase customers 20-30 % Increase of sales 30 – 40 %

2 to 3 years

Internal Process (Marketing, Management, Operations)

Development of new baking technologies and Pastry Product, Integrated Marketing Communications, Management

2 to 3 years

Learning and Growth

recognition Grow Human capital Increase in production Build Organizational Capital and sales 20 30 %

2 to 3 years

Reference: Fred R. David. Strategic Management: Concepts and Cases, 11th Edition. Fred, David. Strategic Management. 7th edition. 2009. Kotler, Philip & Keller, Kevin. Marketing Management. 4th Edition. www.scribd.com http://www.planware.org/businessstrategies.htm
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http://www.entrepreneur.com/management/growingyourbusiness/article70660.html www.juliesbakeshop.com.ph www.goldilocks.com.ph www.gal’sbakery.com.ph www.sec.gov.ph www.redribbon.com.ph

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