Puregold Price

Club, Inc.
A Strategic Management Paper
INTRODUCTION
Mission and Vision

Mission Vision
▪ Our Mission is to provide ▪ To be the most costumer-
products, services and oriented hypermarket offering
business opportunities to every a one-stop shopping
Filipino Family. convenience and best value to
▪ We establish lasting our customers.
relationship with our suppliers ▪ Sa Puregold, always Panalo!
and business partners.
▪ We strive to promote the
personal and professional
development of our
employees.
▪ Sa bawat araw, Puregold
2
kasama mo!
INTRODUCTION
Key Issues

1. Difficulties in implementing growth strategy, legal or regulatory

restrictions in expanding in Visayas and Mindanao.
2. Continuous past trends of not being able to maintain the company’s
individual store sales.
3. Potential risks of inefficiency in the company’s operations as a whole
due to greater burden of new stores in Puregold’s existing resources.
4. Increased competition from other hypermarket or supermarket
companies in the Philippines.
5. The company’s dependability on the ever changing customer
preference. 3
6. The dependability of the company on its ability to maintain good
ENVIRONMENTAL SCANNING
PESTLE Analysis/ Porter’s Five Forces Model

PESTLE ANALYSIS
Political Legal Environmental
• Trabaho Bill (House Bill • Local ordinance in • Plastic ban
8083) Visayas and Mindanao
Economic • TRAIN Law or RA. 10963
• Inflation
• Rapid expansion of
direct and indirect Level
competitors Factors Moderat
Social Low High
• Retail buying behavior e
Threat of Potential
Porter’s
of Filipinos
Entrants  Fiver
• Increase in population
Bargaining Power of Forces
Technological Supplier  Model
• Increase in online Bargaining Power of
shopping Buyer  
• Rapid increase in the 4
Threat to Substitute
usage of electronic
Product 
payment system
Rivalry among Existing
ENVIRONMENTAL SCANNING
External Factor Evaluation (EFE) Matrix

Key External Opportunities and Weigh Weighted

Score
Threats Factors t Score
Increase in the number of sari-sari store 0.05 3 0.15
Continuous Expansion in new Territories 0.09 4 0.36
Increasing Customers Income 0.13 2 0.26
Growing Population 0.12 3 0.36
Potential increase in the number of S&R
0.13 4 0.52
Members
Offering of New Products and Services 0.13 3 0.39
Online Grocery Retailing 0.08 1 0.08
High Inflation Rate 0.12 1 0.24
High Competition 0.15 3 0.45
TOTAL 1.00 2.82

5
ANALYSIS
SWOT Matrix

WEAKNESSE OPPORTUNITIE
STRENGTHS S S THREATS

1.Strong Relationship with

1. Unable maintain 1. Increase number of
suppliers, and other 1. High
their Store sales sari-sari store
stakeholders. inflation Rate
2.Good Store Location 2. Low Tindahan ni 2. Continuous
Aling Puring Expansion in new 2. High
3.Good Online Presence
Members Territories competition
4.Excellent Brand Reputation
5.Good Distribution system and 3. Difficulting in 3. Increasing
supply chain expanding to Customers’ Income
6.New Information System used Visayas and
4. Growing Population
in Operation Mindanao
Increasing number of
7.Second Largest Market Share
S&R Members
8.Numerous Number of Stores
Especially in Luzon 5. Offering of New
9.Effective Marketing Strategy Products and 6
Services
10.Perks for Customers
11.Low Pricing Strategy 6. Online Grocery
ANALYSIS
Internal Factor Evaluation (IFE) Matrix
Weighted
Key Internal Factors Weight Rating
Score
STRENGTHS
1. Strong Suppliers’ Relationship .08 4 .32
2. Good Store Location .09 4 .36
3. Good Online Presence .04 3 .12
4. Excellent Brand Reputation .05 3 .15
5. Good Distribution System and Supply Chain .07 4 .28
6. New Information Technology used in Operation .06 3 .18
7. Second Largest Market Share .08 4 .32
8. Numerous Number of Stores Especially in
.08 4 .32
Luzon
9. Effective Marketing Strategy .07 4 .28
10. Perks for Customer .05 3 .15
11. Low Pricing Strategy .10 4 .40
Total .76 2.85 7
ANALYSIS
IFE Matrix/ Financial Analysis
IFE Matrix (continuation)
WEAKNESSES Net Sales (in Million)
Unable to maintain stores’ 150000 140,918
.09 2 .18 112,589
124,491
Sales.
100000
Low Tindahan ni Aling Puring
.07 1 .07
Members 50000
Difficulties in Expanding in
.08 2 .16 0
Visayas and Mindanao 2016 2017 2018
TOTAL 1.00 3.26 Net Sales (In Milions)

Financial Analysis
2018 2017 2016 Net Income (In Millions)
Current 7000
2.07:1 1.62:1 1.73:1 6520
Ratio 6500
Asset to 6000 5840
5526
Equity 1.43:1 1.49:1 1.51:1 5500
Ratio 5000
2016 2017 2018
Debt to
Net Income (In Millions)
Equity .43:1 0.49:1 0.51:1
RECOMMENDATION
Strategic Objectives

1. Improve and renovate the company’s existing stores to address

the inevitable changing needs of customers.
2. Continuous technological advancements like potential market
penetration through E- commerce (online stores).
3. Strategizing the store locations and focus on specific target
market in establishing new stores.
4. Improve the Tindahan ni Aling Puring Program (TNAP Program)
by providing more offers, packages, and incentive rewards.
5. Reformation of growth strategy to expand the number of stores
in Visayas and Mindanao.

9
 MONITORING: STRATEGY MAP
AND TABLES
Existing Market
TO COMPARE DATAReputation
Increase customer
profitability New Market
CUSTOMER Increase satisfaction in Increase market share
Environmental effort
Lower Price
shopping experience
Increase in loyalty
Revenue Growth
Increase number of Cost Reduction
Asset Utilization
stores Reduce operating
FINANCIAL Attract new customers expense
Improve utilization of
resources
Increase product Reduce service cost
differentiation
Enhance Supplier
Relationship
Enhance Customer Operations
Maintain long term
INTERNAL Relationship Increase process
relationship with
Increase service efficiency
PROCESS suppliers
efficiency and quality Decrease process cost
Improve quality and
and time
supply of consigned
goods
Enhance Employee
Enhance Employee Enhance Employee
LEARNING AND Capabilities
Motivation Alignment
Improve quality training
GROWTH Attract and retain quality
Maintain high level of Alignment of 1
motivation Employees 0
employees
 PUREGOLD: STRATEGIC
MANAGEMENT PAPER
Members:
o Dorado, Miko O.
o Gabiola, Marry Rose
o Grimaldo, Rea
o Perlas, Bryan Justine R.
o Remulla, Kenneth

MNGT 28
Business Policy and Strategy
BSACC 5-1