Stratma Feb 02.2 - STRAMA SPAVI PDF

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Holy Angel University Sto. Rosario St., Angeles City School of Business and Accountancy

Shakey's Pizza Asia Ventures, Inc. Strategic Management Paper In partial fulfillment for the requirements in YSTRATMA- Strategic Management

Bondoc, Jeramee Capua, Rebecca Salunga, Kathleen Vidar, Joie Ann

F-437 Ms. Ma. Ferna Bel L. Punsalan

Executive Summary

The purpose of this strategic management paper is to provide a productive and practical way to improve the management handling of Shakey’s Pizza Asia Ventures Inc in order to achieve the goal of being number one in Casual Dining Restaurant business. Shakey’s has been creating over 40 years of great times and great memories in the Philippines. Having started its first store in Metro Manila way back in 1975, Shakey’s now operates nationwide with a strong store count of 189 stores, comprising of 114 Company-owned stores and 75 franchised stores. Shakey’s is one of the leading operators of Fast Casual Restaurants in the Philippines, focused on family casual dining. In 2015, Euro monitor released a report stating that Shakey’s is the market leader in both chained pizza full-service restaurant and chained full-service restaurant, with market shares of 26.7% and 57.7%, way ahead of other competition in the industry. This paper provides a discussion/evaluation of the overall performance of Shakey’s Pizza Asia Ventures Inc. in terms of its strategies used to maintain its market leadership in both the chained pizza full-service and chained full-service restaurant categories in the Philippines. It shows the assessment of the external and internal factors, including its competitors, which affect the company using External Factor Evaluation Matrix, Internal Factor Evaluation Matrix and Competitive Profile Matrix. This paper used the financial ratio analysis to evaluate the company’s operating and financial performance. It also used different tools to analyze the organization’s strategic factors like Strategic Position and Action Evaluation Matrix, Grand Strategy Matrix, Quantitative strategic Planning Matrix and more. This study concluded that the success factors that leads Shakey’s Pizza Asia Ventures Inc on their current stand is their strong management team, operational proficiency, their continuous expansion on different area around the world, innovating

their products, retaining their outstanding restaurant ambience, food presentation and its reasonable price. Based on the study, the major weakness of Shakey’s Pizza Asia Ventures Inc is the way of providing service of their staffs to their customers. Management should conduct seminars regarding personality development and proper handling of customers. In this way, these factors will contribute on the continuous growth of the company.

I.

Company Profile Shakey’s has been creating over 40 years of great times and great memories in

the Philippines. Having started its first store in Metro Manila way back in 1975, Shakey’s now operates nationwide with a strong store count of 189 stores, comprising of 114 Company-owned stores and 75 franchised stores. Shakey’s is one of the leading operators of Fast Casual Restaurants in the Philippines, focused on family casual dining. In 2015, Euro monitor released a report stating that Shakey’s is the market leader in both chained pizza full-service restaurant and chained full-service restaurant, with market shares of 26.7% and 57.7%, way ahead of other competition in the industry. Shakey’s target market consists of the A, B, and upper C income class segments that prefer full-dining restaurants over fast-food establishments. Shakey’s attracts families and groups through its meal bundle offerings and party-size portions that are ideal for sharing. Shakey’s believes its superior value arises from its ability to serves its guests with differentiated menu offerings and high-quality products. Our iconic chicken n’ mojos and world famous original thin crust pizza appeal to customers across all ages, demographics and various income levels. From time to time, Shakey’s introduces menu items that have a limited time offer. These innovative menu items make for a renewed and exciting dining experience for every Shakey’s customer. Shakey’s also offer its products in bundled “Family Deals” that are ideal for sharing. It has since become a

popular menu offering in Shakey’s stores. Shakey’s ability to provide a welcoming environment to families and social groups through its bundled menu offering, coupled with the appropriate store ambience and location, has become a great value-addition to the Shakey’s brand identity.

II.

VMG Analysis

A. Vision Criteria

Yes/No

Evaluation To be the leading and preferred Family Casual

Focused Concept

Yes

Dining Restaurant, serving pizza as its core product. We set high standards of

Plausible chance of

Yes

success

performance by doing things better than others and better than expected. All of our actions are centered towards

Notable purpose

Yes

enhancing the Shakey's experience and value for all our guest.

B. Mission Criteria

Yes/No

Customers

Evaluation We genuinely care for our Yes

guest. We seek to know their needs and wants so we can provide them

Product/Services

Yes

high quality food products and services at

Markets

No

Technology

No We grow the business by

Concert for survival,

Yes

increasing the size and

growth, and profitability

value of the company and by achieving industry leading returns on investment. All of our actions are centered towards

Philosophy

Yes

enhancing the Shakey's experience and value for all our guest. We set high standards of performance by doing

Self-Concept

Yes

things better than others and better than expected. We recognize our responsibility to contribute to nation building through

Concern for public image

Yes

job creation and by having a positive impact in our communities. We nurture an environment where people are respected and empowered to be their

Concern for employees

Yes

best. We create opportunities for personal and career growth so they may succeed and gain a sense of achievement and pride.

C. Goals and Objectives Shakey’s would like to ride on this forecasted growth by expanding its store footprint within the Philippines, specifically focusing on its large format stores in the

greater Manila and in provincial areas. It plans to open a total of 17 new stores in 2016 and another 20 new stores in 2017. Shakey’s would also like to tap the Visayas and Mindanao regions with the help of its franchise holders. Shakey’s believes that with its attractive store economics and simplicity of store operations, it is able to attract new aspiring franchise owners and existing franchise owners to widen its store count. Since Shakey’s holds the rights to use the Shakey’s trademarks in the global regions, namely across Asia regions (excluding Japan and Malaysia, but including China), the Middle East, Australia and Oceania, international expansion represents a long-term growth opportunity.

Aside from widening its current store footprint, part of Shakey’s strategy is to continually increase same store sales growth. Shakey’s mission is to improve overall guest experience to attract loyal customers and repeat transactions. Shakey’s will also continue to invest in its brand through advertising and marketing initiatives to further grow customer awareness. Shakey’s will continue to build its Supercard loyalty program.

Shakey’s Goals and Objectives is clearly similar to its Mission and Vision statement. Because both statements consist of planning what they want to be and what they are. The two statements expresses their customer care, quality of their products, improving their management and operations, expanding their company, values and philosophies, and being socially responsible.

III. Strategic Managers

A. Board of Directors

Christopher T. Po was elected as the Company’s Chairman on October 5, 2016 and has been its Chairman since March 31, 2016. He is also the Chairman, President, and Chief Executive Officer of Century Pacific Food, Inc. (CNPF), a company listed on

the PSE and concurrently serves as Chief Executive Officer of Century Pacific Group, Inc. (CPGI). Ricardo Gabriel T. Po was elected as the Company’s Vice Chairman on October 5, 2016 and has been its Vice-Chairman since March 31, 2016. He is also Vice Chairman of CNPF. He graduated magna cum laude from Boston University with a Bachelor of Science degree in Business Management in 1990. He also took the Executive Program (Owner-President Management Program) at Harvard Business School in 2000. He is also a Vice Chairman of the board of directors and serves on the executive committee of ALCO. Teodoro Alexander T. Po was elected as the Company’s Vice Chairman on October 5, 2016 and has been its Vice Chairman since March 31, 2016. He is also the Vice Chairman, Executive Vice President, and Chief Operating Officer of CNPF. He is also a Member of the board of directors of CPGI. Since 1990, Mr. Teodoro Po has held various positions in CPGI. He graduated summa cum laude from Boston University with a Bachelor of Science degree in Manufacturing Engineering in 1990. He also completed the Executive Education Program (Owner/ President Management Program) at Harvard Business School. Leonardo Arthur T. Po was elected as the Company’s director and Treasurer on October 5, 2016 and has been its director since March 31, 2016. He has been the Treasurer of CNPF since June 30, 2015. He is concurrently Executive Vice President and Treasurer of ALCO, serves as Executive Director of CPGI and the General Manager for its Emerging Business Units. Mr. Leonardo Po graduated magna cum laude from Boston University with a degree in Business Administration and has extensive and solid business development experience in the consumer marketing, finance and operations of fast moving consumer goods, food service, quick-serve restaurants and real estate development. Paulo L. Campos III was first elected an Independent Director of the Company on October 14, 2016. Mr. Campos is the co-founder and Chief Executive Officer of ZALORA Philippines, having founded the company in the late 2011. Prior to ZALORA,

he was a management consultant with The Boston Consulting Group in Singapore where he worked with companies across the region on issues related to business development, organizational development, investor communications and strategy. Mr. Campos holds a Master in Business Administration from Harvard Business School and graduated magna cum laude from Princeton University with a degree from its Woodrow Wilson School of Public and International Affairs. After university, he was employed with Ayala Land, Inc. as Special Assistant to the President until 2008. Fernan Victor P. Lukban was first elected an Independent Director of the Company on October 14, 2016. He is a well recognized consultant in family business, strategy, entrepreneurship and governance. Mr. Lukban holds undergraduate degrees in Mechanical and Industrial Engineering from De La Salle University, an MSc in Industrial Economics from the Center for Research & Communication, now University of Asia & the Pacific, and an MBA from IESE, Barcelona, Spain. He spent much of his early professional years in academia, helping establish the University of Asia & the Pacific where he currently participates as a consultant, mentor, and guest lecturer. He is a founding fellow of the Institute of Corporate Directors and International Fellow of the Australian Institute of Company Directors. He served as an Independent Director of ALCO from 2011 to 2016 and is currently serving as an Independent Director of CNPF and a Director of Central Azucarera de Tarlac, Inc. (a company listed on the PSE). Vicente L. Gregorio was elected as the Company’s director on October 5, 2016 and has been a director since March 31,2016. Mr. Vicente Gregorio has also been the Company’s President and Chief Executive Officer since March 2013. He has more than 30 of experience in the food business, previously serving as Operations Director in various food service companies prior to assuming the position of Executive Vice President and Chief Operations Officer of the Company in February 2003. He also currently serves as a member of the board of the Philippine Franchise Association, Cavallino, Inc., Don Bosco Technical College, Bosconian International Chamber of Commerce, and Plan Master Insurance and Financial Services, Inc. Mr. Vicente Gregorio graduated from Central Colleges of the Philippines with a degree in Bachelor

of Science in Electrical Engineering and has earned units in the Business Administration Master’s program of the Graduate School of Business at Ateneo de Manila University. MS. LISA GOKONGWEI-CHENG, 48, was elected an Independent Director of the Company on July 20, 2017. She is the founder and currently the President of Summit Media since 1996. Summit Media is the leading magazine publisher in the country. It is also among the largest digital media companies and outside-of-home companies in the Philippines. She is also the current Group General Manager of Jobstreet Philippines since 1999. JobstreetPhlippines is the leading online jobs marketplace in the country. Prior to Summit Media and Jobstreet, she was the Vice President in charge of Editorial Affairs of Manila Times from 1993 to 1997. Ms. Cheng took up further studies in Newsroom Management from Poynter Institute. She also holds a Master in Journalism from Columbia University and a Bachelor in Communication Arts from Ateneo de Manila University. Enrique A. Gomez, Jr. was elected as the Company's director on July 20, 2017. He is also a Director of CNPF and has been a Senior Adviser and Consultant of Century Pacific Group of companies since January 2007. He is currently Chairman of IdeaForma Asia Pacific Group, Inc. a management consultancy company. He was President of San Miguel Food and Beverage International, Inc. from 2004 to 2005. From 2001 to 2004, he was President of San Miguel Purefoods Company and Chairman and/or Director of food group subsidiaries. He also served as President of La Tondena Distillers, Inc. (now Ginebra San Miguel Inc.) and DestileriaBago, Inc. from March 2000 to April 2001

B. Top Management

Manuel T. Del Barrio was first elected Vice-President and Chief Financial Officer on March 31, 2016. He was previouslythe Assistant Vice-President for Finance of CNPF and The Pacific Meat Company, Inc. He previously worked as an Industrial Accounting Manager in TEMIC Telefunken Semiconductors, Inc. and held accounting positions in Hooven Philippines and Sanara, Inc. He has a degree in Bachelor of Science in Business Administration from the University of the East, and holds a Master in Business Administration (Regis Program) from the School of Business of the Ateneo de Manila University. He is a Certified Public Accountant and a Certified Management Accountant.

Jorge Maria Q. Concepcion has been the Company’s General Manager since 2014. He previously held the position asGeneral Manager in Gallo Giro, a Mexican restaurant chain in California, Red Ribbon Bakeshop, Inc., and HuntsUniversal Robina Corporation (Dairy Product Division and Food Service Division). He also held various positions in California Manufacturing Company (a company under Unilever) and was a Brand Manager of the Foods Division, Philippine Refining Company of Unilever Philippines. He has a degree in Bachelor of Arts in Mathematics from De La Salle University and has a Master of Science in Engineering and Operations Research from the University of the Philippines. Genevieve U. Yu was elected as the Company’s Corporate Secretary March 31, 2016. She is also currently theCompliance Officer of CNPF. Atty. Yu graduated with a Bachelor of Arts degree in Political Science from the Ateneo de Manila University and obtained her J.D. from the Ateneo de Manila School of Law. She has been involved in the practice of corporate and intellectual property laws. Jennifer V. Lapa has been the Company’s Chief Human Resource Officer since August 2013. She graduated with aBachelor of Arts degree in Foreign Service from St. Theresa’s College, Quezon City in 1974. She obtained her Cognate in Organization Development, major in Enterprise Leadership and her PhD in Organization Development from the National University of Singapore. Prior to joining the Company, Ms. Lapa worked as Vice President for Human Resources for The Expressions Company and was President of Enthos, Inc. from 2002-2008. Alois Brielbeck has been the General Manager of the Company’s in-house commissary since October 2005. He moved tothe Philippines in February 2000 as the Chief Operating Officer for Culinary Systems Specialists Inc., a company involved in the production of bakery products to both local and export markets. He has held key positions in pastry kitchens in Hong Kong and Tokyo, Japan before moving to the Philippines. Mr. Alois Brielbeck is a fully-qualified Baker with a Baker Master Diploma from the Master School of Lochham in Munich, Germany

Carlo L. Fajardo Jr. recently joined the Company as Vice President for International Business. Prior to this, he was Directorfor the Asia Pacific Region of Krispy Kreme Doughnut Company for eight years, Marketing Head of Max’s Group of Companies for six years, and Brand Manager of Pizza Hut for four years. He holds a Bachelor’s Degree in Economics from the Polytechnic University of the Philippines.

IV. External Assessment A. STEEP Analysis Factors

Socio-Cultural

Explanation

Impact

Social and cultural environment has

Religion and custom has a huge

a profound effect on the policies and

impact, because Shakey’s has to

strategies of Shakey’s Pizza Asia

adapt itself to the traditions and

Ventures, Inc.which consists of

customs in a particular region.

religion and values,changes in

Consumers and the public in general

preferences, changes in

expect more from the products and

demographics andmarketing. If

services they buy, if Shakey’s fails to

Shakey’s fails to recognize these

recognize and adapt to the changing

factors the company may fail or

preferences of the customers, it will

cannot achieve its organizational

probably fail. Demographics is

goal.

another socio-cultural factor that has an impact to the fortune of the company. An understanding of the demographics of a customer can help the organization for its continuous growth.The whole idea of marketing is to connect with the existing customer and reached out to potential customer,hence Shakey’s must do its very best to

achieve these marketing objectives, if not Shakey’s may not achieve its Technological

As the technology is advancing with

goal. Shakey’s is using big data software

passing time, Shakey’s feels the

and data mining to improve the

pressure to completely integrate

customer experience and their

itself with the recent changes. Social

bottom line. Shakey’s already

Media is a very recent yet viral trend

incorporate a lot of technology to

that every business is turning

record and analyze their data from

toward. So, Shakey’s Pizza...