Internal Analysis

a. Internal Audit
I. Management
With a 67.1% market share, Shakey's is the top full-service pizza chain and restaurant

chain in the Philippines. It also commands a 28.9% market share in the full-service restaurant

market. Over the next five years, the full-service pizza chain industry is anticipated to grow more

quickly than other full-service chains. These demonstrate that Shakey's business will continue to

expand in the upcoming years.

With an accumulated expertise exceeding a century in the food and beverage industry, the

management team at Shakey's Pizza Asia Ventures Inc. is both robust and highly experienced.

Heading this team is Vicente L. Gregorio, who has overseen Shakey's operations since 2003. The

company adheres to a functional hierarchy that categorizes the organization into distinct

divisions, including general management, corporate planning and business development,

information technology, finance, and human resources. This structural arrangement promotes

increased operational efficiency and productivity by enabling employees to swiftly and

effectively execute tasks. This is achieved through the strategic grouping of individuals with

shared skills and knowledge, ultimately enhancing overall productivity.

According to the Asia's Top 1,000 Brands survey conducted by Campaign-Asia in

collaboration with Neilsen Company, Shakey's is the second-most popular Filipino brand in the

restaurant category, right behind McDonald's. Shakey's unique menu options have stood the test

of time and become stand-alone brand icons. To name a few, there is Chicken and Mojo's, which

we think has become a household name, and Shakey's famous thin crust pizza. In order to run the

Shakey's brand in the Philippines, all of Asia (aside from Malaysia and Japan, but including
China), the Middle East, Australia, and Oceania, Shakey's has acquired the trademarks and

licenses necessary. Shakey's restaurants are strategically placed in highly populated convergence

zones and along major thoroughfares where they are highly visible and accessible. In the

Philippines, Shakey's is widely distributed throughout the country's major cities and islands.

Supercard, Shakey's loyalty program, is one of the most well-known in the business.

II. Marketing
Shakey's Philippines employs an integrated marketing approach that promotes understanding

and meeting the unique preferences of the Filipino market. Their menu items are thoughtfully

adapted to local tastes while retaining their signature items. A strong digital presence, including

an official website and active engagement on social media platforms, is an essential component

of their strategy for connecting with customers, communicating promotions, and gathering

valuable feedback.

The company regularly rolls out promotions, discounts, and loyalty programs to both attract

and retain customers, using various channels such as online platforms, print media, and in-store

displays for advertising. In addition to this, Shakey's Philippines has fostered partnerships and

collaborations with other brands and organizations, enabling joint promotions and special events

that broaden their customer base and enhance brand visibility. Community engagement and

corporate social responsibility initiatives are another facet of their marketing strategy,

contributing not only to their reputation but also to building a positive brand image. They pay

close attention to customer feedback and reviews, both online and offline, utilizing this

information to drive improvements and shape their marketing and menu strategies.
 By localizing their marketing efforts to align with Filipino culture and traditions, Shakey's

Philippines ensures that their promotions and events resonate with the local calendar. They also

continue to utilize traditional advertising methods, such as television and print advertisements,

particularly for major promotions and campaigns. For the latest insights into Shakey's

Philippines' evolving marketing strategy, it's advisable to refer to their official website, press

releases, or recent news articles about the company, as marketing strategies can change rapidly.

1. Product

Shakey’s thrives on delivering exceptional value through its distinctive menu options and

top-notch product quality. Our renowned chicken n’ mojos and world-famous original thin crust

pizza resonate with a wide spectrum of customers, spanning various ages, backgrounds, and

income groups. Periodically, Shakey's introduces innovative limited-time menu items, injecting

fresh excitement into every dining experience. Moreover, our popular "Family Deals," offering

bundled products designed for sharing, have quickly become a staple at Shakey's outlets. The

combination of this welcoming atmosphere, along with carefully crafted store settings and

convenient locations, bolsters the value that Shakey’s adds to its brand identity for families and

social groups alike.

2. Price

Shakey's Pizza, a well-known restaurant chain in the Philippines, offers a diverse menu of pizzas,

chicken, pasta, and other American-Italian comfort food. Shakey's pricing is generally

considered to be affordable and caters to a wide range of customers. The menu provides options

for various budget levels, making it a popular choice for families, groups of friends, and even
individuals. Their pricing structure varies depending on location and the specific items ordered,

with single pizza slices ranging from 75 to 150 Philippine Pesos (PHP) and whole pizzas

typically priced between 300 to 700 PHP or more, depending on size and type. Their renowned

chicken and Mojo Potatoes usually cost around 200 to 500 PHP for various portion sizes, while

combo meals for sharing or family deals can fall within the range of 600 to 1,500 PHP. It's

essential to note that prices can change over time, and Shakey's frequently offers promotions and

discounts to cater to a diverse customer base. Additionally, Shakey's offers a pleasant dining

atmosphere, and the affordability is complemented by the quality and taste of their food, making

it a go-to choose for those looking for a satisfying meal at reasonable prices in the Philippines.

3. Physical Evidence

Shakey's restaurants in the Philippines are known for their warm and welcoming interior

designs that cater to families and groups. The color palette frequently includes vibrant and

cheerful colors such as reds, yellows, and oranges that evoke feelings of coziness and nostalgia.

Seating is thoughtfully designed to accommodate larger groups, with a mix of booth seating,

communal tables, and smaller tables to encourage a communal and sociable dining experience.

Wall decorations commemorating the brand's history and achievements are common decor

elements, with vintage photographs and memorabilia adding to the restaurant's nostalgic charm.

The lighting in Shakey's restaurants is typically warm and inviting, with a mix of pendant

lights, chandeliers, and occasionally neon signs creating a cozy and relaxing ambiance. Many

Shakey's locations cater to families by providing kid-friendly amenities such as play areas,

arcade games, and, in larger outlets, a stage for live entertainment. Some restaurants also have an

open kitchen concept, which allows customers to see how their pizzas and other dishes are

prepared, adding an interactive element to the dining experience. The company's distinctive logo
and the iconic Shakey's mascot, "Shakey," are frequently incorporated into the interior design,

providing customers with a sense of familiarity and comfort. Ultimately, Shakey's places a high

value on cleanliness and organization, ensuring that the restaurant looks neat and tidy. Please

keep in mind that specific features may differ between Shakey's locations, and interior designs

can change over time, so it's best to visit the restaurant or check their official website for the

most up-to-date information.

4. Place

Shakey's Philippines, the renowned pizzeria and family restaurant, marked its debut in the

Philippines in 1975 with the opening of its first branch along Makati Avenue near the Rizal

Theatre in Metro Manila. Since its inception, Shakey's has executed a well-crafted strategy for

expansion that has allowed it to become a nationwide culinary institution cherished by Filipinos.

Their growth strategy encompasses a diversified business model, featuring a mix of company-

owned and franchised stores, which has propelled them forward with the financial backing of

company-owned locations and the entrepreneurial drive of local franchisees. Shakey's has

pursued an aggressive expansion strategy, extending its footprint across the Philippines. This

expansion hasn't been limited to major cities but has also embraced smaller towns and provinces,

making Shakey's accessible to consumers throughout the country. Offering a diverse range of

menu options is another key strategy, catering to a broad customer base. While their mojos and

pizzas remain iconic, Shakey's has diversified its offerings to encompass pasta dishes, chicken

specialties, and a mix of Filipino and international favorites, introducing new items to keep the

menu fresh and exciting. Maintaining an unwavering commitment to quality and consistency,

particularly with their signature pizzas, mojos, and fried chicken, has earned Shakey's a

dedicated following and attracted new customers. Continual menu and service innovation,
strategic location choices, robust marketing and branding, and their strong presence in both

urban and suburban areas have all played key roles in their expansion.

According to Shakey’s Philippines official website as of September 30, 2021, Shakey's

Philippines boasts a nationwide network of 307 establishments, comprising 171 company-owned

stores and 136 franchised stores. The combination of these ownership models has allowed them

to reach a wide range of markets while providing local entrepreneurs with the opportunity to be

part of the Shakey's family. Shakey's success story not only highlights the growth of a beloved

restaurant chain but also underscores its ability to adapt, innovate, and maintain a strong position

in a competitive food industry. Shakey’s operates several store formats such as: legacy stores,

free standing stores, strip mall stores and mall stores. Their extensive nationwide presence is a

testament to their unwavering dedication to quality, top-notch service, and a strategic expansion

approach that continues to delight the taste buds of countless Filipinos throughout the country.

5. Promotion

Shakey's Philippines employs a multifaceted promotion marketing strategy designed to

attract and retain customers. Their approach includes several key elements. They offer an array

of combo meals and group deals to cater to various party sizes, encouraging customers to enjoy

their dining experience with friends and family. The introduction of limited time offers linked to

seasons and holidays creates a sense of urgency, prompting patrons to try new menu items.

Furthermore, Shakey's operates a loyalty program which is called the “Supercard” that

rewards loyal customers with discounts and exclusive deals while also gathering valuable

customer data for targeted marketing. The brand actively engages with its audience through
social media and digital marketing, using online contests, interactive content, and targeted

advertising to reach a broader customer base.

As of May 2023, an exciting collaboration between Shakey's, a renowned pizza chain in the

Philippines, and Potato Corner, a popular French fries brand. This collaboration has resulted in a

unique and mouthwatering offering – Shakey's Mojos with a twist of flavors from Potato Corner.

This partnership promises to elevate the classic Shakey's Mojos by incorporating the irresistible

flavors and seasoning varieties that Potato Corner is known for. This creative combination is set

to provide customers with a delightful and tasty snacking experience, blending the crispy

goodness of Mojos with the distinctive and beloved flavors from Potato Corner. It's a noteworthy

culinary fusion that caters to the cravings of food enthusiasts in the Philippines.

In addition to their digital efforts, Shakey's is actively involved in community events and

charitable activities, cultivating goodwill, and positioning the brand as a socially responsible

business. According to Business Worl official website in August 2023, Shakey's announced a

new partnership with Potato Corner to introduce a product that aims to support local farmers in

the Philippines. The collaboration reflects Shakey's commitment to corporate social

responsibility and helping the agricultural community. Their partnerships and sponsorships of

local events and sports teams help expand their reach and connect their brand with positive

community experiences. Finally, traditional advertising methods such as TV, radio, and print ads

are employed to maintain broad brand visibility. Collectively, these strategies contribute to

Shakey's popularity and adaptability in the competitive landscape of the Philippines' restaurant

industry.

6. Process
 Shakey's Philippines, a beloved pizza and restaurant chain with a rich history, has been

delighting customers since its inception. Since its establishment, it has consistently provided top-

notch service to its patrons. Known for its iconic pizzas and mouthwatering menu, Shakey's has

become a go-to destination for casual dining and celebrations.

For the convenience of its guests, Shakey's Philippines has adapted to modern booking

methods. Customers can easily make reservations through the official Shakey's website,

streamlining the booking process. Additionally, the restaurant accepts a wide range of credit

cards, including Visa, Mastercard, American Express, Diners Club, and JCB. Cashless Payment

such as G-cash and Pay Maya. This diverse payment options make transactions hassle-free,

ensuring that patrons can enjoy their meals without any inconvenience. For those who prefer a

more traditional approach, Shakey's also welcomes walk-in customers who can make payments

in cash. This flexibility caters to a wide range of preferences, allowing everyone to experience

the delectable offerings of Shakey's.

Moreover, Shakey's Philippines has extended its accessibility by partnering with delivery

mobile application. Customers can book an order through well- known mobile application such

as Food Panda, Grab Food, Uber eats and Shakey’s Super App itself. This collaboration with

online booking platforms has made it even more convenient for customers to make reservations

and access the services offered by Shakey's.

7. People

Shakey's Philippines stands out for its inclusive hiring practices, actively welcoming persons

with disabilities and senior citizens into their workforce. This commitment to equality ensures
that every employee, regardless of age or ability, has an opportunity to contribute their skills and

perspectives, fostering a diverse and enriched work environment.

Jeremy Lapeña, a 26-year-old born with Down syndrome, has become a beloved figure at

Shakey's Pizza BF Aguirre branch in the Philippines. Jeremy enthusiastically takes on various

tasks, including greeting diners, setting tables, serving food, and engaging with guests. Despite

his limited vocabulary, he forms strong bonds with coworkers and patrons, particularly children.

Jeremy's presence at Shakey's has drawn admiration from parents of children with similar

conditions, who visit the branch to see him. He is part of Shakey's "Love 'Em Down" program,

launched in 2018 in partnership with the Down Syndrome Association of the Philippines, which

aims to provide people with Down syndrome with employment opportunities. The program,

recently relaunched with Jeremy and six others, not only benefits these individuals but also

fosters employee and guest engagement.

Additionally, the article introduces Reynaldo Alison, a 66-year-old part-time server at

Shakey's Malate branch, who exemplifies the company's senior citizen hiring program. Shakey's

has made it a policy to hire one senior citizen and one person with disabilities (PWD) for every

branch in Manila, promoting inclusivity and providing employment opportunities for these

individuals.

Shakey’s Philippines started job hiring for PWD and Senior Citizens

On September 13, 2022, Shakey's, a renowned restaurant chain, has recently launched an

innovative Senior Citizen and PWD (Persons with Disabilities) hiring program, as reported by

the Inquirer. This progressive initiative is part of Shakey's commitment to fostering inclusivity
and diversity in the workplace. The program's primary objective is to create job opportunities for

senior citizens and PWDs, acknowledging their valuable contributions to the workforce.

By implementing this hiring program, Shakey's not only showcases its social

responsibility but also takes a significant step in addressing unemployment challenges faced by

these marginalized communities. This move is expected to not only provide these individuals

with meaningful work but also contribute to the overall enrichment of the company's workforce

through the diverse perspectives and experiences these employees bring.

Double Hiring for PWD and Senior Citizen

According to ABS CBN News official website last July 03, 2023, the subsidiary of

Shakey's Philippines is launching an initiative to significantly increase its hiring of senior

citizens and people with disabilities (PWDs). The move is part of a larger effort to promote

inclusivity and diversity in the company's workforce. This increase in employment opportunities

for senior citizens and people with disabilities demonstrates Shakey's dedication to assisting

marginalized and underrepresented groups and promoting equal employment opportunities in the

Philippines. The initiative not only increases workplace diversity but also recognizes the unique

skills, experiences, and contributions that these individuals can bring to the company, further

aligning Shakey's with social responsibility and inclusion principles.

III. Finance/Accounting
The Securities and Exchange Commission states that Shakey's Pizza Asia Ventures, Inc.

has published audited financial reports. These reports encompass explanatory notes outlining key

accounting practices. They also feature statement of financial position for both June 30, 2023,
and December 31, 2022. Furthermore, they include statement of comprehensive income,

statement of changes in equity, and statement of cash flows for the current period and the year

ended.

The management of Shakey's Pizza Asia Ventures, Inc. bears the responsibility for

creating and ensuring the accurate presentation of the consolidated financial statements for June

30, 2023, and December 31, 2022. This responsibility is carried out in compliance with the

Philippine Financial Reporting Standards and includes establishing necessary internal controls to

prevent significant errors or fraud in the preparation of these consolidated financial statements.

1. Corporate Information

Shakey’s Pizza Asia Ventures Inc. is a company that owns and operates a chain of fast

food restaurants, primarily under the “Shakey’s” brand in the Philippines. The company’s

primary purpose is to operate and maintain food parlors under the “Shakey’s” brand. The

company was incorporated and registered with the Securities and Exchange Commission on

February 14, 1974, originally as International Family Food Services, Inc. Shakey’s Pizza Asia

Ventures Inc. is the exclusive franchise holder of the SHakey’s Pizza Restaurant business in the

Philippines and is licensed to develop company-owned Shakey’s outlets and sub-license the

Shakey’s brand to other entities in the country. The company’s headquarters is located at 15 Km.

East Service Road corner Marian Road 2, Barangay San Martin de Porres, Parañaque, Manila,

Philippines.

2. Basis of Preparation

The unaudited interim condensed consolidated financial statements have been prepared

on a historical cost basis, except for financial assets at fair value through profit or loss (FVPL)
which are carried at fair value. The consolidated financial statements comprise the financial

statements of the parent company and its wholly-owned subsidiaries as at the end of the

reporting period. The unaudited interim condensed consolidated financial statements are

presented in Philippine peso, which is the Group’s functional currency. All values are rounded

off to the nearest million, except those otherwise stated.

3. Statement of Compliance

The unaudited interim condensed consolidated financial statements have been produced

in accordance with Philippine Financial Reporting Standards (often known as “PFRS” in full).

4. Presentation of Company Financial Statements

In order of liquidity, the company publishes its statement of financial status. The

unaudited interim condensed consolidated financial statements comprise the unaudited interim

condensed financial statements of the Parent Company and its wholly-owned subsidiaries and are

prepared for the same reporting year as the Parent Company, using consistent accounting policies

for like transactions and other events with similar circumstances.

Current Ratio
June 30, 2023 December 31, 2022
(Unaudited) (Audited)
Current Assets ₱3,732,228,022 ₱3,854,643,595

Current Liabilities 2,425,339,638 2,804,649,072

Current Ratio ₱1.54:1 or 154% ₱1.37:1 or 137%

 A current ratio of 1.54:1 can be interpreted to mean that for every ₱1.0 of current

liabilities, the company has ₱1.54 in current assets available to cover those liabilities. This

indicates that the company has a healthier short-term financial position compared to the previous

year (2022). A current ratio of 1.37 in 2022 means that for every ₱1.0 of current liabilities, the

company had ₱1.37 in current assets available to pay those liabilities. The increase in the current

ratio from 1.37 in 2022 to 1.54 in the six months ended in 2023 is generally a positive sign. It

suggests that the company has increased its ability to meet its short-term financial obligations,

which can indicate a sign of improved liquidity and financial stability.

Return on Equity
June 30, 2023 December 31, 2022
(Unaudited) (Audited)
Net Profit ₱489,003,818 ₱250,112,831

Ave. Stockholder’s Equity 1,683,760,178 1,683,760,178

Return on Equity ₱0.29:1 or 29% ₱0.15:1 or 15%

The ratio can be interpreted to mean that for every ₱1.0 invested capital by the owners

and used to generate revenue, it yielded a net income of ₱0.15 in 2022 and ₱0.29 in the first half

of 2023. Below 10% is low. This indicates that the company was more profitable in 2023

compared to the previous year, 2022. It suggests that the company improved its profitability and

became more efficient in generating profits from shareholder’s equity.

Profit Margin
 June 30, 2023 December 31, 2022
(Unaudited) (Audited)
Net Profit ₱489,003,818 250,112,831

Net Sales 6,900,939,803 4,079,856,959

Profit Margin ₱0.071:1 or 7.1% ₱0.061:1 or 6.1%

The ratio can be interpreted to mean that for every ₱1.0 sales revenue, the company has

₱0.061 net income for the year ended 2022 and ₱0.071 for the six months ended 2023. It

suggests that the company improved its profitability over the year, indicating that it was more

successful in converting its revenue into profit.

IV. Operations and Human Resources

Operation

Business organizations typically allocate their operations based on functionality, personnel

management, and responsibilities. At Shakey's, it's important to note that their operations do not

predominantly favor any single functional unit. While these functional units operate

independently, they are interconnected through their job activities. Shakey’s give utmost focus

and priority in their preparations, make table, dispatching, product standards, defrosting, topping

standards, dating standards, and product shelf life.

Shakey's is using Salesforce right now to increase customer satisfaction across all digital

channels and encourage more customers to place online orders through social listening and

omni-channel guest feedback. The Shakey's Digital Acceleration team is in charge of this work
and is in charge of the company's website, mobile app, social media, online ordering through

Facebook chat, and SuperCard, its 1.5M-member guest loyalty program.

The introduction of Social Studio by Salesforce Marketing Cloud has significantly altered

things. Shakey's can use it to automatically gather online comments and determine which

messages need to be addressed first. Additionally, it simplifies reporting and makes it much

simpler and quicker to spot problems or trends. For instance, Shakey's can almost instantly gauge

customer sentiment toward new offerings or products. These insights and efficiencies are being

used by Shakey's to better respond to online comments and convert inquiries and complaints into

online orders. Additionally, it has begun to accept orders through Facebook, giving call centers

another choice.

Human Resource

One of the top full-service restaurant chains in the nation, Shakey's Pizza Asia Ventures,

Inc., has teamed with Darwinbox to equip its team of over 1000 employees with HR technology

to increase operational effectiveness and boost company productivity. By efficiently managing

its Human Resources from hire to retirement, Darwinbox, an end-to-end HRMS platform that

just became the first Asian participant to feature on Gartner's Magic Quadrant for HCM suites

for 1000+ Employee Enterprises, is poised to help Shakey's succeed in a post-covid world.

Utilizing digital tools and systems that not only enable them to stay ahead of the curve in the

post-covid economy but also are future proof for the new world of work becomes essential as

organizations recalibrate work, the workforce, and the workplace. Investment in its most

valuable resource, its people, has always been a top priority for a forward-thinking business like

Shakey's.
IV. Research and Development
In the Philippines, Shakey's has contributed to more than 40 years of fun moments and

wonderful memories. Shakey's opened its first location in Metro Manila back in 1975, and it now

has 307 outlets, including 171 franchise locations, spread over the country. 136 franchised

outlets and company-owned locations.

Shakey’s Pizza Asia Ventures, Inc. partnered with local pioneer brand “unMeat” once again

— this time to launch the latest addition to its plant.

One of the biggest branded food producers in the Philippines, Century Pacific Food, Inc.,

has a subsidiary firm called "unMeat," which sells 100% plant-based cuisine. Compared to the

procedure used to produce meat, the creation of unMeat uses fewer natural resources, including

less water, energy, and land. It also produces less emission of greenhouse gases.

Shakey's noticed that people become careless and unable to control on what they buy and

eat. People's needs are the top priority. They've been looking for things that are healthier, better

for you, and better for the environment, so Shakey came up with a menu called "the good

nuggets". these products resemble chicken nuggets in appearance, flavor, and texture, but they

are totally meat-free. These baked, as compared to fried, which includes developing healthier

menu options and utilizing resources efficiently.

In addition to expanding its existing store network, Shakey's strategic approach includes

an ongoing effort to enhance the growth of sales at its current stores. The primary objective of

Shakey's mission is to enhance the overall guest experience in order to cultivate a loyal customer
base and encourage repeat transactions. To achieve this, Shakey's will persist in allocating

resources to bolster its brand through advertising and marketing campaigns, thereby increasing

customer awareness. Furthermore, Shakey's will remain dedicated to nurturing its Supercard

loyalty program.

V. Management Information System

Shakey’s previously depended on a range of distinct customer systems to manage

inventory, restaurant operations, delivery services, and point-of-sale functions. In an effort to

streamline its operations, Shakey’s embarked on a quest for an all-inclusive retail solution that

could consolidate all these functions into a single, comprehensive system.

Shakey’s utilizes Microsoft Dynamics AX in which Shakey’s gains a powerfully

functional, cloud ERP system that will support the company’s technology strategy. According to

Microsoft Philippines Communications Team, Shakey’s utilizes Microsoft Dynamics AX and

operating on the Microsoft Azure cloud infrastructure, which resulted to significant portion of

operational enhancements have been achieved, spanning across accounting, procurement,

inventory management, and store operations.

Point of Sale (POS) System and Inventory Management

Shakey's nationwide store system offers a user-friendly and streamlined approach to

managing its operations. This sophisticated system seamlessly combines the point-of-sale and

inventory management, marking a significant departure from Shakey's previous reliance on a

multitude of separate systems for customer management, inventory control, restaurant

operations, delivery services, and point-of-sale administration.

This integration brings together all these crucial facets of the business under one cohesive

umbrella. Now, Shakey's can efficiently oversee its inventory, customer interactions, restaurant

procedures, delivery services, and point-of-sale functions with ease, ensuring smoother and more

effective operations across its nationwide network of stores. This technological advancement not

only simplifies the overall management but also enhances customer experiences by providing a

more unified and efficient service.

Employee Management
 Shakey's Philippines has made a dedicated commitment to sustainability, embedding it as

a core element of its mission. The company's People initiatives are geared towards nurturing its

human capital, and it intends to extend its inclusive employment programs to make a more

significant impact in the communities where its stores are situated. Shakey's Philippines provides

an array of employee training and development opportunities, including fundamental onboarding

for new staff, workshops to align values, and programs to conduct root cause analysis.

To enhance its human resources management "from hire to retire," Shakey's Philippines

has harnessed the power of an HR platform. The company also places great importance on

creating a safe workplace environment, recognizing that this plays a pivotal role in fostering a

positive corporate culture. Furthermore, it emphasizes compliance with health and safety

regulations, understanding that these standards are not only crucial for the well-being of its

employees but are also essential for the overall welfare of the organization itself.

Customer Relationship Management (CRM)

Shakey’s is dedicated to ensuring that each guest interaction holds significance. To

accomplish this, Shakey's Philippines has established a Guest Engagement department, which

actively connects and interacts with its guests via a comprehensive feedback management

system. The company utilizes a cloud-based customer relationship management system, which

facilitates smooth access to centralized data.

Shakey's Philippines firmly believes that guest feedback plays a pivotal role in shaping its

business, and it acknowledges that the company's success hinges on how effectively it responds

to matters that hold genuine importance to the community. To facilitate this engagement, guests

have the flexibility to provide their feedback through various channels, including our store staff,
the WeCare email service, Electronic Guest Comment Card, Shakey’s delivery hotline, Shakey’s

website, Shakey’s mobile application, as well as through social media platforms like Facebook,

Twitter, and Instagram.

Online Ordering and Delivery Systems

Shakey's Philippines has made substantial investments in the realm of digital

transformation, particularly in enhancing its retail systems. This encompasses the development

and implementation of various technological solutions, including a delivery system, an

interactive website, and a user-friendly mobile application. A standout feature of Shakey's digital

transformation efforts is the introduction of its Super App, which allows customers to

conveniently place and monitor their orders.

In line with its commitment to exceptional customer service, Shakey's Philippines has

also rolled out a rapid and reliable delivery service. This service is underpinned by a compelling

promise: to deliver orders within an impressively short timeframe of 31 minutes or less. If this

ambitious delivery time frame is not met, Shakey's offers the order for free. This commitment to

quick and punctual deliveries not only underscores the company's dedication to customer

satisfaction but also sets it apart in the competitive landscape of food delivery services.

David’s Functional Audit

Management

1. Does the firm use strategic-management concepts? YES

2. Are company objectives and goals measurable and well communicated? YES

3. Do managers at all hierarchical levels plan effectively? YES

4. Do managers delegate authority well? YES

5. Is the organization’s structure appropriate? YES

6. Are job descriptions and job specifications clear? YES

7. Is employee morale high? YES

8. Are employee turnover and absenteeism low? YES

9. Are organizational reward and control mechanisms effective? YES

Marketing
1. Are markets segmented effectively? YES
2, Is the organization positioned well among competitors? YES
3. Has the firm’s market share been increasing? YES
4. Are present channels of distribution reliable and cost effective? YES
5. Does the firm have an effective sales organization? YES
6. Does the firm conduct market research? YES
7. Are product quality and customer service good? YES
8. Are the firm’s product and services priced appropriately? YES
9. Does the firm have an effective promotion, advertising, and publicity YES
strategy?

10. Are marketing, planning, and budgeting effective? YES

11. Do the firm’s marketing managers have adequate experience and training? YES
12. Is the firm’s Internet presence excellent as compared to rivals? YES

Finance and Accounting

1. Where is the firm financially strong and weak as indicated by financial ratio
analysis?
2. Can the firm raise needed long-term capital through debt and/or equity? YES

3. Does the firm have sufficient working capital? YES

4. Are capital budgeting procedures effective? YES

5. Are dividend payout policies reasonable? YES

6. Does the firm have good relations with its investors and stockholders? YES

7. Are the firm’s financial managers experienced and well trained? YES

8. Is the firm’s debt situation excellent? YES

Production and Operations

1. Are supplies of raw materials, parts, and subassemblies reliable and YES
reasonable?
2. Are facilities, equipment, machinery, and offices in good condition? YES

3. Are inventory-control policies and procedures effective? YES

4. Are quality-control policies and procedures effective? YES

5. Are facilities, resources, and markets strategically located? YES

6. Does the firm have technological competence? YES

Research and Development

1. Does the firm have R&D facilities? Are they adequate? YES

2. If outside R&D firms are used, are they cost-effective? YES

3. Are the organization’s R&D personnel well qualified? YES

4. Are R&D resources allocated effectively? YES

 5. Are management information and computer systems adequate? YES

6. Are present products technologically competitive? YES

Management Information System

1. Do all managers in the firm use the information system to make decisions? YES
2. Is there a chief information officer or director of information system position YES
in the firm?

3. Are data in the information system updated regularly? YES

4. Do managers from all functional areas of the firm contribute input to the YES
information system?

5. Are there effective passwords for entry into the firm’s information system YES
6. Are strategist of the firm familiar with the information systems of rival YES
firms?

7. Is the information system user-friendly? YES

8. Do all users of the information system understand the competitive YES
advantages that information can provide the firms?

9. Are computer training workshops provided for users of the information YES
system?

10. Is the firm’s information system continually being improved in content and YES
user-friendliness?

Internal Factor Evaluation Matrix (IFE)

Strengths Weight Ratin Weighted
g Score
1. Market Share of 67.1% and 28.9% 0.09 4 0.28
2. Significant Brand Awareness 0.08 3 0.24
3. Appropriate Store Ambiance 0.07 3 0.27
4. Store remodel programs 0.05 3 0.15
5. Bundle Menu Offering “Family, Party, Blowout Deals 0.06 4 0.24
and etc.”
6. Multiple Distribution Channel 0.05 4 0.20
7. Strong store count of 307 stores, comprising of 171 0.04 4 0.16
company-owned stores and 136 franchised stores
8. Serves its guests with differentiated menu offerings 0.08 4 0.32
and high-quality products
9. Provide a welcoming environment to families and 0.03 3 0.09
social groups
10. The company aims to identify, measure, analyze, 0.04 3 0.12
monitor, and control all forms of risks that would affect
the company.
Weakness

1. Interior Design and Ambiance

2. No Mini Stalls Available for Certain Events or
Canteens
3. Menu Localization
4. Lack of Individual Meals
5. Price Sensitivity
6. Food Quality Inconsistency
7. Long waiting time for orders within the store
8. Inconsistent Service of Employees
9. Online Presence and Engagement
10. Lack of Advertisement
Total IFE Score