a. Company Background Ang Lechon Manok ni Sr. Pedro is owned by Peter Unabia, the founder of Anakciano Inc. he sits as a provincial board member in the 2nd district of Misamis Oriental. Peter organized a foundation called the Anak Tering Foundation, in honor of his mother Tering who was very religious. They used this foundation to share the blessings to their countrymen, farmers in Misamis Oriental. The foundation aims to provide livelihood opportunity for the small farmers by contracting them as suppliers of chicken broilers.
The foundation gives them series of free trainings on how to breed broilers, they also provide chicks, feeds, and even medicines and vaccines. These chicken will be distributed to all the branches of the Ang Lechon Manok ni Sr. Pedro. In 2008 Ang Lechon Manok ni Sr. Pedro has 250 outlets scattered around Metro Manila and other key cities nationwide, and it has taken a giant stride to culinary fame and fortune. “I grew up knowing how difficult life is for a small farmer. We were poor and we were not given any opportunity to rise up from our miserable situation…we didn’t give up despite the many challenges.
It helps to know that if you succeed, many others will benefit, like my family, and yes, my kin, the farmers. ” Says Peter. For him hard work and enough will can bring success. He also want to help the farmers, by giving them the opportunity to prosper, to free them from the bondage of credit and to develop in them the sense of ownership and trust, not dole out. “Instead of giving the farmers fish, we teach them how to fish. This is our thrust in the foundation. It should not be dole out, otherwise, the farmers will not prosper,” says Peter.
In 2008 the foundation is dealing with 1,624 farmers from Balingasag, Talisayan and other remote towns in the province. This gives him difficulties in managing the project. “Some of our beneficiaries had problems taking care the chicken. Some sold them to earn quick cash, some ate the chicken for lack of anything else to eat. ” But Peter says, they were persevering. Instead of dealing with a few large commercial growers to distribute income, the have chosen to deal with more than a thousand of farmers to distribute income. The 200 chicks that the foundation provides the farmers are translated to P11,200-investment per farmer.
Peter reiterates, “The framework should be toward quality and not quantity. The program should be sustainable and not just dole out. ” (Rodriguez, 2008) Ang Lechon Manok ni Sr. Pedro offers a sweet, mouth-watering smell and cooked to tenderness lechon manok or roasted chicken that captured the Pinoy palate by storm. It also caters Manok Pinoy and Fido Prito Fried Chicken, which have found good market in Cebu and Manila. (Pinoyentre, 2010) b. Paper Design and Methodology This paper was prepared mainly to propose and recommend general strategies for Ang Lechon Manok ni Sr. Pedro to help compete in highly competitive food (roasted) industry.
The researchers utilized the source of information for documentary and analysis. The researchers also evaluate the strategies that the Ang Lechon Manok ni Sr. Pedro had and compare to their competitors, Andok’s Litson Corporation and Baliwag Lechon Manok, Inc. other documents and materials related to the subject matter were also examined before it can be used to support the study. For external analysis, source of information For external analysis, source of information c. Scope and Delimitation The information included in this paper focuses only in the food (Lechon manok) industry and the strategies that the Ang Lechon Manok ni Sr.
Pedro (branch to be more specific??? ) uses. It covers only from year input year here for the financial statements. The major competitors that were used in this paper are Andok’s Litson Corporation and Baliwag Lechon Manok, Inc. only. CHAPTER II External Analysis a. Economic Forces b. Political Forces c. Socio-Cultural d. Technological e. Environmental f. Competitive Forces CHAPTER III Industry Analysis a. Industry Analysis b. Marketing Mix 1. Products and Market Share 2. Price 3. Promotion 4. Distribution Channels 5. Customer 6. Target Market 7. Competition 7. a Rivalry among Competitors 7.
b Potential Entry Among Partners 7. c Potential Development of Substitute Products 7. d Bargaining Power of Supplier 7. e Bargaining power of Consumer c. Operation 1. Process 2. Capacity 3. Quality d. Industry Analysis Ratio 1. Growth Ratio 2. Total Asset 3. Net Sales 4. Net Income 5. Earnings per Share e. Industry Trends f. Problems CHAPTER IV Company Analysis (Internal Analysis) a. History Peter Unabia, the man behind the success of Sr. Pedro, has climbed up to the ladder and became one of the most wealth persons in Mindanao. Unabia grew up from a big and poor family in Malaybalay City.
He is the ninth of the eleven siblings. He became orphan at a young age, got married to Ging-Ging with whom he has three children. After finishing his Agronomy course, he volunteered for the Mangayans in Mindoro for a few months and returned to Cagayan de Oro to work at Unibet. But he resigned to put up his own business. He started as a peddler of different basic commodities such as eggs, chorizo, dressed chicken and sugar. But his door when his brother Antoneto gave him the secret recipe for his roasted chicken. With a capital of Php 5,000 he opened Sr. Pedro’s first branch in Hayes St. in 1994.
He said that the name Sr. Pedro came from the famous drama aired over the radio in the 1990s which starred Esteban Escudero entitled “Ang Manok ni Senior Pedro” in the purpose of remembering the name easily, he said. Not long after, Sr. Pedro became an instant hit in Cagayan de Oro. Two years after, he opened his second branch near the Dynasty Court Hotel, and the rest is history. At present unabia owns a vast poultry, an ice plant, dressing plant and feeds mill in which 3. 75 percent of his earnings goes directly to the Anak Tering Foundation. Anak Tering Foundation benefits 2,411 local growers of
chicken who grow maximum of 1,000 chicks and earn Php 15,000 in every harvest. As a devoted Christian, Unabia has done a lot of good deeds to his society, despite the glorious success he enjoys which he believed came from God, Unabia remains to be humble by heart and hopes to serve more people who need livelihood. (Managbanag, 2010) In 1994 when Peter’s busus business instinct took full hold of him. With the help of his brothers, particularly Nieto Unabia, who was a talented cook, he put up a small roadside roasted chicken outlet in which he named Ang Lechon ni Sr.
Pedro. Ang Lechon ni Sr. Pedro now operates under Anakciano, Inc. , of which Peter is the president. It has commercial farms as well as contract farms to provide birds needed to supply its business. Currently, the company has a total of 16 million birds, of which about 2 million are raised in the company-owned commercial farms. 60 commercial farmers with an average capacity of 40,000 birds and another 4,000 backyard farmers with an average capacity of 500 birds grow the others. Most of these farms are located in the provinces of Bukidnon and Misamis Oriental.
To ensure the contract growers, commercial and backyard farmers meet the standards, Anakciano, Inc. provides them the DOCs, feeds, medicines and vaccinations and technical support. According to Peter, it is important for the company to make profit to sustain the program, and so that the business can keep growing and they can continue with what they are doing with them. The operations have been running smoothly. The harvest recovery is pegged at 95. 8 percent, with a target of 96 percent. Systemwide Full Cost Recovery is at 1. 7 which is even better than the target of 1. 8, while the average live weight hits the target of 1. 4 kg.
Peter is planning to put up a dressing plant in the municipality of his district that can be used to teach the residents there on how to do marketing plan and how to run and manage on their own. “The ultimate goal of this is to empower the community / association so that they will become self-sufficient, to the point that they can and will continue growing their business even without Anakciano. ” Says Peter. (Balikbayanmag, 2014) b. Management c. Culture d. Organizational Structure e. Human Resources f. Mission Statement 1. Analysis of Mission Statement g. Strategies h. Marketing Mix 1. Product 2. Price 3. Place 4. Promotion 5.
Customer 6. Competition i. Operations 1. Process 2. Capacity 3. Quality 4. Technology 5. Research j. Financial Analysis k. Trends l. Problems CHAPTER V Strategy Formulation a. Input Tools 1. EFE Matrix The EFE matrix is the strategic tool used to evaluate firm existing strategies, external environment or macro environment of the firm include Economic, Social, Technological, Government, Political, Legal and competitive information. External audit reveals key opportunities and threats confronting an organization so that managers can formulate strategies to take advantage of the opportunities and avoid or reduce the impact threats.
The External Factor Evaluation (EFE) of Ang Lechon Manok ni Sr. Pedro 2. SPACE Matrix 3. CPM Matrix b. Matching Tools 1. SWOT Matrix A SWOT analysis can be used to measure an organization’s competencies and identify opportunities to taken by business management in the future. Organizations conduct a SWOT Analysis in order to identify various factors that can impact performance. In other words, WOT is used to improve the current situation. Internal aspects are scrutinized by looking at the Strengths and Weaknesses of the business such as employee skills and products.
Opportunities and threats are examined to reveal external factors facing the business, such as competitors or the economic situation. STRENGTHS WEAKNESSES 1 Commitment to customer’s needs and expectations 1 Contract farmers sell the chickens for easy money (Suppliers) 2 Accessibility of products around Metro Manila and key cities nationwide 2 No mission and vision statement 3 Biosecurity measures for the birds 3 Uniformity of their birds 4 Consistency of their products 4 Oversupply of their oversized birds OPPORTUNITIES SO STRATEGIES WO STRATEGIES 1 Increasing demand for cooked food
Meet to serve the increasing customers with the high quality products. (S1, O1) Secure the supply to meet the demand. (W1, O1) 2 Expansion of branches in different areas Branch out more outlets in populated areas like malls. (S2, O2) Formulate a vision and mission statement that can be used as a basis of decision-making. (W2, S1, S2, S3) 3 High technology for preserving and roasting of chickens Use equipment that can help in preserving the consistent savoring taste of the chicken. (S4, O3) Using of technology to ensure the safety and health of the birds that will be roasted. (S3, O3)
Use technology to maintain the required size of the birds for conformity and uniformity of products. (W3, O3) 4 Commodity food and Beverage Price Index is continuously increasing Formulating the Price of the product that the customers are willing and able to give in exchange of the product and at the same time the sellers’ willingness in selling the product for the stability of the business. (S1, S2, O4) Parts instead of a whole chicken can use oversupply of oversized chickens to offer another product, or sell a marinated chicken that the customers may preserve for about a week, or even sell it.
(W4, O1, O2, O3) THREATS ST STRATEGIES WT STRATEGIES 1 High threat of substitute commodity Produce consistent products that can gain and delight loyal customers. (S1, S4, T1) Used the oversized chicken to produce another product that is more affordable for the consumers. (W4, T1) 2 Increasing number of competitors Formulate a strategic plan that can be used against the competitors like where to put the business. (S2, T2) Produce uniform products and innovate to have a competitive advantage. (W3, W4, T2) 3 Legislation about food (roasted) industry
Keep posted on government rules and regulations to ensure compliance. (S1, S2, S3, S4, T3) Laws can be used to take advantage of the contract farmers so that the security of the products will be high. (W1, T3) 4 Major disease outbreaks (bird flu) Always provide allowance for the biosecurity measures to ensure the safety, health and security of the birds. (S3, T4) Contract farmers (suppliers) should monitor their birds everyday to ensure that it does not carry any flu that is harmful for the customers. (W1, W3, T4) 2. IFE Matrix
Internal Factor Evaluation (IFE) matrix is a strategic tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basis for identifying and evaluating relationships among these areas. The Internal Factors Evaluation matrix of short IFE matrix is used in strategy formulation. The IFE matrix together with the EFE matrix is a strategy-formulation tool that can be utilized to evaluate how a company is performing in regards to identified internal strengths and weaknesses of a company. The IFE matrix method conceptually relates to the Balanced Scorecard method in some aspects.
The Internal Factor Evaluation (IFE) of Ang Lechon ni Sr. Pedro 3. Internal and External Matrix 4. BCG 5. Grand Strategy c. Design Stage CHAPTER VI Strategy Implementation a. Recommended Vision b. Recommended Mission c. Recommended Revised Objectives 1. Strategic Objectives d. Recommended Strategies 1. 2. 3. e. Recommended Department Plans 1. Marketing Department 2. Admin Department 3. Operation 4. Finance 5. Research Method 6. Financial Position – Projected FS CHAPTER VII Balance Score Card CHAPTER VIII Conclusion a. Concluding remarks b. Bibliography c. Resumes
