STRATEGIC MANAGEMENT

Task performance

Submitted to:
Ms. Phey Banilan

Submitted by:
Batain, Rica Rose
Padua, Shayne

STI COLLEGE
 I. COMPANY BACKROUND
After operating his family's Ling Nam Wanton Parlor, a Chinese noodle store in Santa Cruz,
Manila that specialized in noodles, congee, siopao, siomai, and other dim sum dishes, for
several years, Robert Kuan founded Chowking in 1985. Kuan imagined Chowking as a fast-food
joint with comparable menu items to Ling Nam. On March 18, 1985, Kuan opened the first
Chowking outlet in the Makati Commercial Center's Rotary Foundation Building (since
demolished and incorporated into SM Makati).
In spite of the instability of the local market, Chowking began increasing its market share in
1989. In the same year that it started franchising, it also entered provincial markets Chowking
joined Jollibee Foods Corporation as a wholly owned subsidiary on January 1, 2000. started
remodeling stores to provide Chowking a new corporate appearance that would result in a
substantial alteration for each location.
The conclusion of a Php270 million ($5.65 million) modernization effort, which helped pave the
way for the business's future expansion, was announced by Chowking in 2008. The two-year
modernization program, known as "Project DMSSM" (pronounced "dim sum") for "Designed,
Modernized and Streamlined Supply Chain and Manufacturing," began in 2006 and included the
expansion and renovation of Chowking's Noodle Building, more automation, and better
integration of food manufacturing processes in its two commissaries in Muntinlupa. Chowking
looked for markets outside of the Philippines to guarantee its continued expansion.
The Chowking Food Corporation launched its first US location in 1995. Chowking first entered
the Indonesian market in 1998, opening two significant locations in Jakarta. These
establishments were used to analyze the market's viability and determine how much customers
would be interested in the restaurant chain's signature foods, which include things like fried
chicken, noodles, and rice bowls. While Jakarta was initially the focus of the company's
expansion into Indonesia, Chowking also started to look into other prospective locations and
important cities as part of its long-term expansion goals. The company expanded its store count
in the years that followed, opening new locations across Indonesia and becoming a major player
in the fast-food industry there.
II. INDUSTRY ANALYSIS
Swot matrix
Strength:

 In the strengths, management should identify the following points exists in the organization:
 Advantages of the organization
 Activities of the company better than competitors.
 Unique resources and low-cost resources company have.
 Activities and resources market sees as the company’s strength.
 Unique selling proposition of the company.
Weaknesses:

 Improvement that could be done.

 Activities that can be avoided for Chowking Food Corporation.
 Activities that can be determined as your weakness in the market.
 Factors that can reduce the sales.
 Competitor’s activities that can be seen as your weakness.

Opportunities:

 Good opportunities that can be spotted.

 Interesting trends of industry.
 Opportunities for Chowking Food Corporation can be obtained from things such as:
 Change in technology and market strategies
 Government policy changes that are related to the company’s field
 Changes in social patterns and lifestyles.
 Local events.

Threats:

 The business is having problems.

 competitors' actions.
 Standards for the quality of goods and services
 threat posed by developing technology
 financial and cash flow issues
 weaknesses that endanger the company.

Pestel analysis
Political
 upcoming political elections and changes that will result from them for the nation
 His political stance, which is strong and influential, on business policies and how they
affect the corporation.
 Strength of legal norms and property rights. And how it compares to organized crime
and corruption. the effects of these situations changing.
 Effects of new legislation and taxes on the business
 Regulations and deregulation trends. changes in business regulations and their effects
 the duration of the legislative change.
 Other political aspects that Chowking Food Corporation should expect to change
Economical
 Situation and the present economic trend, including growth, stagnation, or decline.
 Changes in exchange rates and their impact on businesses.
 The impact of a change in the level of customer disposable income.
 Variations in the unemployment rate and their impact on hiring of qualified workers
 Loans and credit are available. And how it impacts business
 Impact of globalization on the economy
 Taking into account other economic factors

Socio-cultural
 Organizational effects of changing age and population growth rates.
 Effect of generational and attitude changes on the organization.
 Health, education, and social mobility standards. its modifications and impacts on
business.
 According to different age groups, there are differences in employment patterns, job
market trends, and work attitudes.
 Social trends and attitudes, as well as sociocultural change and its impacts.
 The impact of religious adherents' lifestyles on organizations
 additional sociocultural elements and their effects.
Technological

 New technologies that the business is utilizing

 Any emerging technology that might have an impact on the workplace, an organization,
or a sector
 Competition's access to new technologies and how it affects the creation of better
products and services.
 sectors of government and educational institution research where the business can exert
any effort
 Infrastructure changes and their effects on work flow
 existing technologies that will help the business
 Impacts of additional technology aspects on business and industry

Porter's five forces model is used to examine a company's organizational structure and
corporate strategy. Five forces that are significant in influencing the market and industry have
been found in this model. These factors are used to gauge the level of rivalry and market and
industry profitability. These forces include the company's capacity to provide for its clients while
also turning a profit. There are two forces from vertical competition and three forces from
horizontal rivalry among these five forces. Below, the five forces are discussed.

Porters Five Forces

THREAT OF NEW ENTRANTS:

 Due of the industry's huge revenues, a lot of new competitors will attempt to enter the
market. However, the new competitors will eventually result in a decline in industry
profitability. As a result, it's critical to prevent new competitors from entering the
market. The following elements describe the danger posed to new entrants:
 Copyright and patent restrictions are examples of entrance barriers.
 high capital expenditure
 Government-imposed restrictions
 Changing fees
 access to distributors and suppliers
 brand loyalty among existing customers
THREAT OF SUBSTITUTES:
 this explains the danger to the company. Customers can utilize alternatives and
substitutes that do not require any extra work and do not significantly modify the
product or service if it is not up to par. For instance, using Pepsi instead of Coca-Cola or
Aquafina in place of regular tap water. The following are some possible reasons why
customers switched to substitutes:
 Price-performance of a replacement
 switching fees for the buyer
 Marketable alternatives to the product
 decrease in quality
 There is a close substitute available.
DEGREE OF INDUSTRY RIVALRY:
 There will be more new competitors and more effective competitors in any business the
less money and resources are needed to participate. The position of the corporation will
likewise be weakened. The potential elements that could affect how the company
competes are as follows:
 advantage over rivals
 perpetual innovation
 Positioning yourself for long-term competitive advantage
 Advertising intensity
 Competitive approach
BARGAINING POWER OF BUYERS:
  It concerns the power of consumers to lower costs. The importance of a client and the
amount of cost if a customer switches from one product to another are the two primary
factors. If there are too many options, the buyer power is large. If there are fewer
choices and switching options, the buyer power is also minimal. The following elements
will affect consumers' purchasing power:
 Negotiating power
 the price of a buyer switching
 pricing sensitivity of the buyer
 Advantage of the Company's Product
BARGAINING POWER OF SUPPLIERS:
 this refers to the supplier's capacity to change pricing up and down. If there aren't many
options for suppliers, the business will be threatened and forced to buy its raw materials
under the supplier's terms. However, if a corporation has several options for suppliers,
suppliers will have less negotiating leverage and will not incur substantial switching
costs. The following are some potential variables that could affect suppliers' bargaining
power:
 input distinction
 Cost effects and differentiation
 Distribution centers' capabilities
 availability of a replacement input

III. Recommendation
When it comes to their goods, they must do an assessment of both their current and
prospective customers. Chowking must have a plan that will increase its revenue and customer
base.
Chowking needs to improve its meal offerings since, according to consumers, the product's
flavor and quality are gradually deteriorating.

Because occasionally their service times are getting slower than previously, the Chowking
management needs to provide training to both their old and new personnel.
The management of the eatery must determine the tastes of their target customers.
In order to protect customers from food-borne illnesses, chow king must practice hygiene.
Every meal at Chowking needs to be evaluated.
IV. Management Lesson Learn

The taste of Chowking's current food products is changing quickly, especially the Chao pan fried rice,
even though they occasionally have the same flavor as before.
 V. Bibliography
Chowking - Wikipedia, chow king swot matrix - Search (bing.com), Chowking Food Corporation Case
Study Solution and Analysis of Harvard Case Studies (casequiz.com)