STRAMA The Final Showdown!!

Executive Summary
Julie’s Bakeshop or Julie’s Franchise Corporation has grown to become the

largest bakery chain in the Philippines. By 1999, Julie’s counted 210 branches
nationwide. Julie’s Bakeshop has served customers all over the nation its distinctive
brand of high quality, freshly baked breads. With more than 500 branches and outlets
nationwide, Julie’s is a shining example of success through hard work and commitment.
Its main office in Manila is situated in Lot 1 Block 1 Amang Rodriguez Avenue,
corner JRA Subdivision, Rosario, Pasig City and the office in Cebu is situated in C.
Padilla Street, Duljo Fatima, Cebu City.
After a thorough research primed, the external analysis of Julie’s Bakeshop
shows a figure of 3.15,which confirms that the firm’s strategies effectively take
advantage of existing opportunities and minimize the potential adverse effects of
external threats. The internal analysis on the other hand, shows a figure of
3.3, which shows that Julie’s Bakeshop has been busy striving to be the best as it
service not only to its customers, franchisees, and to retailers but also to its internal
system that made them recognize as one of the outstanding franchising company in the
Philippines.
With the competitive advantage and market sustainability that the researchers
found, the researcher strongly recommends after comprehensive consideration with the
Grand Strategy Matrix (GSM) to pursue among three strategies: Market Development,
Market Penetration and Product Development as these strategies would lay of a claim
to a solid foundation and dynamic synergy upon which to build even more vigorous
growth in the future.
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Julie’s Franchise Corporation Page 1
I. Company Profile
The Rising of a Breadwinner
Since 1981, Julie’s Bakeshop has served customers all over the nation its
distinctive brand of high quality, freshly baked breads. With more than 500 branches
and outlets nationwide, Julie’s is a shining example of success through hard work and
commitment.
Julie’s success is attributed to the culture set down by its founder and namesake,
the original Tita Julie, Mrs. Julia Gandionco. A canteen concessionaire since 1970,
Mrs. Gandionco, or Ma’am Julie as she prefers to be called, started the first Julie’s
Bakeshop in Wireless, Mandaue on January 6, 1981. The bakeshop was intended to
answer Ma’am Julie’s canteen needs of bread products.
Running a bakery has been a very challenging endeavor for Ma’am Julie. Not
having any experience in the bakery business nor even knowing how to bake, she
ventured into this business with pure guts and faith in God.
With the support of her husband, Mr. Deigs Gandionco, Ma’am Julie put up her
first bakeshop and named it after herself at the insistence of Bobby Gandionco, her
eldest son. While seeming“baduy” at first, Bobby Gandionco’s suggestion that using his
mother’s name would give personality to the bakeshop was sheer serendipity.
Within six months, a second Julie’s opened in Urgello, Cebu City. Three years
later, Julie’s had ten branches all over the city of Cebu. The increasing number of
branches led to the formation of RJ and Sons Commodities, led by Bobby Gandionco,
to supply the various Julie’s branches with its baking ingredients and supplies.
It was in 1988 when the first Julie’s outside Cebu opened in Iloilo. This opened
the door that ultimately led to the secret to Julie’s rapid growth: Franchising. The first
Julie’s franchise started in 1998 in Mambajao, Camiguin. On July 2, 1998, Julie’s
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Franchise Corporation was registered in the Securities and Exchange Commission. The
path to nationwide success was open and clear.
Since then, Julie’s Bakeshop has grown to become the largest bakery chain in
the Philippines. By 1999, Julie’s counted 210 branches nationwide. So, it was no
surprise that on June 1999 Julie’s was dubbed as the “Success Story of the Year” and
On October 1999 as “Outstanding Country – Side Investor” by the Philippine Chamber
of Commerce and Industry Inc. These awards were followed on June 2000 with the
Outstanding Small and Medium Scale Entrepreneur Award and the Certificate of
Recognition as Outstanding Small and Medium Scale Entrepreneur Award by the
Federation of Filipino – Chinese Chamber of Commerce and Industry Inc., and the
Philippine Chamber of Commerce.
The year 2000 saw the third Julie’s company formed with the spinning off of
Julie’s Franchise Corporation’s maintenance department to form Julie’s Manufacturing
Corporation. This is the youngest of all three Julie’s companies.
Over the years 2001 and 2002, Julie’s made inroads in the Luzon and Mindanao areas
with the first RJ and Sons Commodities in Manila opening on June 22, 2001 and in
Davao on October 4, 2002.
September 28, 2002 saw Julie’s garner the “Who’s Who in the Philippines: The Best
Bakeshop of the Year” by the National Consumers Excellence Award. With its over 300
branches and outlets across the country, Julie’s was a success phenomenon on its
own.
The three Julie’s companies, RJ and Sons Enterprises, Julie’s Franchise Corporation
and Julie’s Manufacturing Corporation merged in July 1, 2003 to become Julie’s
Franchise Corporation with three divisions: the Franchise Division, the Supply and
Logistics Division and the Corporate Shared Services Division.
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From then on, Julie’s continuously garnered valuable recognitions from esteemed
institutions like the Philippine Franchise Association and Philippine Marketing
Association.
2004 CEO Roberto R. Gandionco was awarded as the Agora - Outstanding

Achievement Award for Entrepreneurship (Large Scale) by the Philippine
Marketing Association.
2005 Julie’s Franchise Corporation was awarded with the Franchise Excellence
Award for consistently exhibiting high standards of growth and development in
all aspects of franchise operations. The award was given by the Philippine
Franchise Associations, Department of Trade and Industry, Philippine Chamber
of Commerce and Industry, and the Philippine Retailers Association.
Franchise Marketing Campaign of the Year Award (Food Category – Medium

Scale)
Franchisee of the Year Award – Ms. Ritchie Hawak
2006 CEO Roberto R. Gandionco was one of the finalists of Ernst & Young
Entrepreneur of the Year.
- Hall of Fame/ Outstanding Filipino Franchise of the Year
Julie’s Bakeshop (Medium Scale Category/ Specialty Bakeshop)
- Franchisee of the Year - Carolyn Francisco
- Garbo sa Sugbu Award
Recognition from the Office of Governor Gwen Garcia for the success and fame
Julie’s has given to the Province of Cebu - Julie’s Bakeshop’s birthplace.
2007 Most Socially Responsible Entrepreneur Award
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Cebu Chamber of Commerce and Industry
Franchise Marketing Campaign of the Year
Franchisee of the Year Award – Dr. Ed Escalona
At Present…
Julie’s Franchise Corporation is manned by professionals who assist each franchisee

every step of the way from Franchise Application, Expansion, Operation, Training,
Marketing, Construction, Accounting, and Human Resources Development. It has a fully
operational laboratory under a Research and Development Department that
continuously improves and innovates on over 300 varieties of bread and bakery
products to respond to the need of the regional markets.
Julie’s today is a household name anchoring its success on superior taste and
freshness of its products as well as its clean and convenient outlets. With more than
500 branches and outlets, 99% of which are franchised, Julie’s continues to strengthen
its market reach from North Luzon to Mindanao.
With over 180 franchisees and still growing, pursuing Julie’s principles of Service
Excellence and Total Customer Satisfaction, Julie’s Franchise Corporation aims to have
Julie’s Bakeshop present in every town in the country. Julie’s franchisees are all
independent entrepreneurs committed to practicing the Julie’s Franchise Corporation’s
business in all aspects of its operations, thus maintaining Julie’s Bakeshop’s position of
market leadership in the industry.
On Standards…
All Julie’s Bakeshop franchisees and bakery staff are equipped with the knowledge
about the company’s strict quality standards through intensive and thorough training,
seminar-workshops and hands-on product handling. The Julie’s baking technology
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program highlights the Julie’s way of achieving product quality, service excellence and
customer satisfaction.
Julie’s Franchise Corporation has established a reward system for bakery team
performance, a motivational tool to drive all JBS teams nationwide to excel both in sales
and in operational efficiency.
Julie’s Franchise Corporation recognizes franchisees whose bakeries adhere to the

Julie’s Bakeshop system, upholding the HIGHEST STANDARDS OF QUALITY,
CUSTOMER SERVICE, CLEANLINESS, SANITATION, MAINTENANCE and
RELIABLE MANAGEMENT.
Every Julie’s Bakeshop is assured of continuous marketing campaign support from

bakery opening onwards to building superior brand image.
A Value Driven Business…
Julie’s Bakeshop’s success is not only measured in the fulfillment of its endeavors as a
value driven franchise business, but also in establishing harmonious relationships with
the Filipino community. The company continues to initiate and support cause-oriented
programs in partnership with the community and the local government through its
Corporate Social Responsibility (CSR) Programs.
Julie’s Bakeshop’s achievement in its business and good relationship with the Filipino
people is a measure of true growth.
Julie’s Bakeshop does not only bring its bread closer to the Filipino people but it also
enhances the capability of the franchisees towards growth, making them proud Julie’s
Breadwinners.
II. Research Design and Methodology
The researcher was able to acquire data from the following sources:
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Primary Data
The Primary Internal Data was gathered through Julie’s Company’s website it
includes the company background and product and services information.
Primary external data was congregated from the website of the Securities and
Exchange Commission. This information includes external factors that affect the
industry, market size, market growth ranking positions of all baking companies in the
Philippine market.
Secondary Data
Secondary external and internal data was gathered through the readings from
the internet. The information includes economic trends in baking business and its
major competitor’s information; it also includes the latest technologies in baking industry
in the Philippines.
The data requirement of this paper includes recent surveys, projections and
operationa l highlights. It also requires information regarding recent trends
regarding the industry under study. For comparative purposes, background of some
major competitors in the industry is also needed, especially in the financial and
operations aspect.
Limitations
The Strategic Management Paper is only limited to study and analysis of Julie’s
Bakeshop, among the different sectors in the industry this study focuses on baking
institutions in the Philippines. The focus of this paper is on the company’s performance
and position in the market.
The annual report of the most recent year (2010) was not yet available during the
study. It assumed therefore that the financial statements for the year 2009 were the
same as of the year 2010, which is the most recently available financial statement.
III. Environmental Analysis
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i.Economic
Specific Factor Relevance to Enterprise
Exchange rate
The Philippine Peso will likely continue to A strong currency may make exporting more
appreciate against the US dollar to Ps difficult because it may raise the price in terms of
43.89: U$1 (source: BSP, Dec. 30, 2010). foreign currency. Julie’s Bakeshop may have a
Such appreciation to persist due to hard time importing baking ingredients from other
continuing rise in OFW remittances, rising countries.
foreign investments, weak US economy &
currency.
Interest Rate Since the interest rare in the country is very low
there is a higher tendency for Julie’s Franchising
The Philippine central bank held its policy Corporation to have foreign partners or investors,
rate at a record low of 4% because it cost less to borrow.
Labor cost
Non-Agricultural –php 404.00 Since the labor cost in the Philippines is lesser
than the other countries, they can produce more
Agriculture baking products with a lower labor cost.
Plantation- php 367.00
Non-Plantation php367.00
ii.Political / Legal
SPECIFIC FACTOR RELEVANCE TO ENTERPRISE
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Taxation Policy
The tax rate for Domestic The policy will give awareness to the enterprise on
Corporations is 30% on whatever changes has been made regarding taxes, so as
to avoid evasion or other related matters.it is beneficial
worldwide income. both on the company and for the Government. In terms of
Foreign Branch Offices have a financial matters.
tax rate of 30% on Philippines
based income.
Business Regulation
Some laws regarding business will guide the franchisee of

Julies Bakeshop to a better business operation.
Philippines’ Local Governments
Improving Business Regulation
and Empowering
Entrepreneurs, Finds World
iii.Technological
SPECIFIC FACTOR RELEVANCE TO ENTERPRISE
Website Since almost everyone has the easy access on the

internet it is very helpful for Julie’s Bakeshop to
Improve the website to advertise their products and how to franchise online.
communicate with the customers It will help boost their sales.
easily and conveniently.
New Baking Technologies
What are the latest trends in There are a lot of baking technologies now a days, it
production of baking products. will be very helpful for the production of Julie’s
Bakeshop, it may double or triple their production
daily.
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Social Networks Facebook, tweeter etc. there are a lot of potential
buyers on those social networking sites, Julies
Social networking sites are a big Bakeshop should have their pages on these
help in promoting and to identify networking site and post what’s new on their
the brand. products or franchise programs.
iv.Socio/ Cultural
Specific Factors Relevance to Enterprise
Filipinos Taste Buds Filipino culture indeed loves to eat and in every
family table there is always a place for breads , it’s a
Filipino haw a unique sense of big factor to consider that Filipinos loves eating
taste. bread especially in occasions or during free time.
Filipino Hospitality
Trademark of being a Filipino is Being Filipino we are very accommodating to guest,

being Hospitable on their guest. and commonly Filipino serves bread or any other
pastry products to their guest, Filipinos calls it as a
merienda.
Change in Lifestyle
Through times Filipino always Many Filipinos now are very health conscious and
want to be on trend, everyone one thong that Julies Bakeshop should concentrate
now today are really health in is to develop new kind of bread which is sugar
conscious. free or have more nutritional benefits.
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v.Environment / Climate
Specific Factors Relevance to Enterprise

Climate change has had an impact on International
farmers, ranchers, rural land owners, and foresters,
Climate Change in the and will continue to do so, through its influence on
Philippines production, distribution, and yields. Continuous
climate change in the Philippines may affect the
CO2 emission Baking Industry especially the Flour Industry and soon
will affect the prices of the products that uses Flour,
75,299.2 sugar etc.
Climate in the Philippines As to baking industry it is an ideal climate for

agriculture with ample rainfall all year long. Julie’s
The Philippines is a tropic Franchising Corporation has the advantage of buying
nation with a hot and humid less expensive agricultural products, instead of
climate. importing into other countries.raw materials such as
eggs,milks,oil and other baking ingredients.
Pollution in the Philippines In Philippines pure water is very difficult to obtain.
This is due to excretion of biological and other waste
(Air and Water) into the water of rivers, lakes, and ponds. As a baking
corporation water is very important to production, the
corporation may have the tendency of consuming too
much water. It may affect the products prices because
water is one of the main ingredients of bread and
other pastries.
IV.Industry and Competitor Analysis
i.)Porter’s 5 Forces
1.)Rivalry of competition
Conclusion Basis for conclusion
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Medium Increasing number of competitors – because, French Baker,
Goldilocks, Red ribbon and Pan de Manila, this bakeshops really
marked their name in industry and Julies Bakeshop really having
the hard time competing with this company. The said competitors
already built such public image regards to baking and other pastry
products.
Consumers can switch brands easily- because of a lot of baking

company in the market today there are high tendency for the
consumers in switching brand easily.
Industry demand declining – the purchase power is depreciating

and the people decided to search for new alternatives
Barriers to leaving the market/industry are high - a firm may be

forced to continue competing in a market, as the costs of leaving
may be higher than those incurred if they continue competing in
the market and obstacles in the path of a firm which wants to
leave a given market or industrial sector. These obstacles often
cost the firm financially to leave the market and may prohibit it
doing so.
Products are perishable- Julie’s bakeshop offers a wide variety of

pastry products and it is a big factor for the company to keep their
good fresh and, it’s competitors are using ingredients or adding
some preservatives to keep the bread and other pastry products
fresh.
2.)Potential for New Entrants
Conclusion Basis for Conclusion
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Medium There are a lot of Baking companies in the Philippines, Julie’s
bakeshop’s key competitors are the pioneering baking companies on
the Philippines, it may be too tough for them to gain loyal customers.
Strong customer loyalty- The product is loved by the customers

because it is affordable and has a good taste.
Strong brand preferences – for example if they don't find the ideal
taste that they're looking for, they'll look for other bake shops that will
satisfy what their taste buds.
Lack of access to raw materials- the basic ingredients of bread are

sugar, milk, flour and egg, and the prices of those ingredients rapidly
had hit the global high and will continue to high in the next few weeks
or months. It may be a big factor for Julie’s bakeshop to get cheaper
suppliers of those ingredients, and it would be a reason for them to
double their products’ prices.
Current competitors have strong marketing resources – because of

having a strong customer loyalty the competitors of Julie’s Bakeshop
has the advantage of having strong marketing resources. And the
competitors are already in the industry quite some time compare to
Julie’s Bakeshop.
3.)Bargaining Power of Suppliers
weak Considering if the brand of the supplier is strong and the role of quality and
service of baking products.
There are a lot of baking suppliers in the market, and it may be a very hard
one for Julie’s Bakeshop to find suppliers that offers cheap cost and gives a
good deal. Plus the industry is not the key customers to the suppliers.
Because of the high price in sugar and flour the baking industry is trying to
buy in large volume to lessen the cost.
There is a high tendency that Julie’s Bakeshop will charge or pass the cost to
the consumer resulting into having a costly pastry product, if the company
can’t find a supplier which offers a good deal and price.
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4.) Bargaining power of Buyers
Conclusion Basis for Conclusion

Medium
Julie’s Bakeshop has a large volume of competitors in the

market, there are many sellers and at the same time there
are dominant buyers.
Filipinos love to eat bread everyday and some of the

customers buy in volume.
The products are undifferentiated compare to the prices of

its key competitors like goldilocks, red ribbon, pan de
manila.
The quality of breads and services of Julie’s bakeshop is

just the same to its competitors, it’s just that Goldilocks
and Red Ribbon are larger companies compared to Julie’s
Bakeshop.
5.) Potential for Substitutes
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Medium
In light of today’s economic status, people are searching for

less expensive products. Julie’s Bakeshop offers cheap
breads and other pastry product with a high quality same to
their competitors.
There are a lot of baking companies in the market and for

Julie’s Bakeshop to keep its customers they must increase
their market shares and keep the aggressiveness in the
market.
Julie’s Bakeshop has served customers all over the nation its
distinctive brand of high quality, freshly baked breads. With
more than 500 branches and outlets nationwide.
Summary of Porter’s Five Forces of Competition

The researcher performed the industry analysis using Porter’s five forces model.
The researcher specifically analyzed the rivalry among competing firms, potential
development of substitute products, and potential entry of new firm, bargaining power of
suppliers and bargaining power of consumers. Based on the analysis above the
researcher concludes
- The researcher concludes that the intensity of rivalry is MEDIUM
- The researcher concludes that the threat of substitutes is MEDIUM
- The researcher concludes that the threat of new entrants is MEDIUM
- The researcher concludes that the bargaining power of consumer is MEDIUM
- The researcher concludes that the bargaining power of suppliers is WEAK
ii.Competitor Analysis
#1 Competitor Goldilocks
Goldilocks traces its roots to the collaboration and complementary talents of the women,
whose collective love for good food fueled what has been transformed into the global
enterprise today. In 1966, two sisters Milagros and Clarita, and their sister-in-law, Doris,
decided to open a small bakeshop along to the Pasong Tamo Street, Makati. The
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sisters have already been dabbling in the business for some time ---Milagros, by
supplying chiffon slices to a number of Manila’s canteens, and Clarita, by baking and
decorating cakes during special occasions in Bicol --- when they decided to take their
hobby one step further. A third sister, Maria Flor, suggested that they name the
enterprise “Goldilocks“, after the character in a fairy tale, aiming to make it easier for
children and their mothers to remember its name; and because it suggested luck and
prosperity.
Over the years, Goldilocks did prosper, but not due to mere luck. The sisters’
dedication, hard work and business sensibilities led to a second branch just two years
after the pioneering outlet began operating.
From ten employees and two display stands, Goldilocks has become a global brand,
expanding to over a total of 250 stores in the Philippines and overseas; and hiring
thousands of local employees. The opening day total sales of P574 back in 1966 has
multiplied thousand of times over, reaching a system-wide sales of P5.9 billion by the
end of 2007.
THE MARKET
For the most Filipinos, the Goldilocks fairytale has two versions: a golden-haired lass
who encounters the three bears, and the bakeshop that has become an integral part of
the Filipino way of life.
Now on its 42nd year, Goldilocks remains that company and more. At the forefront of its
industry, the company enjoys a substantial lead over competitors in all aspects of
performance. National consumer surveys have consistently identified Goldilocks as the
landslide winner in customer satisfaction indices such as Awareness Conversion (the
ability to translate brand awareness to actual trial) and Share of Heart (the emotional
approach to measuring preference).
Indeed according to a 2005 study by AC Nielsen, the world’s leading market research
and information firm, Goldilocks enjoys a total product awareness of 100 percent, with
seven out of 10 respondents mentioning it first. More impressively, Goldilocks has
managed a full conversion of awareness-to-trial, and has done exceedingly well in
retaining trial to regular purchase. It enjoys a committed customer base, and continues
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to attract even more.
#2Competitor Red Ribbon

From its store in Timog, Quezon City what started out as hobby-induced business in
1979, turned out to be a proudly Filipino-owned and professionally-run business
network. Red Ribbon has grown to over 200 outlets all over the
country and over 38 stores in the US with locations in California,Las Vegas, Arizona,
New Jersey and New York.
With its acquisition in October 2005 by Jollibee Foods Corporation, Red Ribbon entered
a new phase in its company history. The company will soon become the biggest and
fastest-growing bakeshop in the Philippines. Its mission is to bring the joy of eating to
everyone through its great-tasting food and superior quality.
Red Ribbon uses premium ingredients, such as real butter, high quality cake flour, and
its unique Red Ribbon cream. Red Ribbon cakes have become a tradition, an integral
part of every celebration - birthdays, christenings, anniversaries, and weddings.
Owing to its heritage of bringing families and friends together through its delicious,
elegantly-designed cakes and other specially prepared products, Red Ribbon captures
this core benefit in a campaign that best summarizes what the company has stood for
over the years, "Whatever the celebration, it's more beautiful with a Red Ribbon."
#3Competitor Gal’s Bakery
In the 1960's, an enterprising man of modest means, Mr. Galileo Ancajas, dreamt of
owning his business. While working for a paper product company, he bought and sold
bread to his co-workers to augment his income. Gifted with a keen business instinct, he
saw the opportunity to set up his own bakery. With almost no technical know-how in
running the business, he slowly learned the ropes, with a few hits and misses through
hard work, determination and the support of his better half, Remedios. Thus, in 1965,
the first GAL's BAKERY was established in Tipolo, Mandaue City, Cebu.
Starting on a 30 sq.m. space with a handful of employees, the home spun venture soon
became a flourishing business with the opening of more bakery outlets to cater to a
wider, diverse market. With more stores to handle, family members soon gave their
share in helping the business thrive. A son-in law, Bill Gayatin, undertook the research
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and development by coming up with tasty and reasonably priced baked products on a
regular basis, further beefing up the product line-up of GAL'S BAKERY to as much as
108 baked products. The family would have been just content in keeping the GAL'S
BAKERY network in Cebu and selected cities in Visayas and Mindanao. However,
events would soon unfold GAL'S was meant for more growth.
A long-time friend of the family introduced GAL'S BAKERY to Lorna Tolentino and her
friends, who at that time, were looking for a new business venture to set up in Manila.
The group went to Cebu to meet "Tito Gal", as Mr. Ancajas is fondly called, and
immediately hit it off. It was then agreed that Ms. Tolentino and her friends would
incorporate and the entity would become the Master Franchise Holder of GAL'S
BAKERY in the Luzon area. The group was formalized as Baley Ventures
Corporation and actively composed of:
1) Bill & Arcy Gayatin 6) Miriam Pantig

2) Boogey Ancajas 7) Alex Cruz
3) Lorna Tolentino 8) Teresa Leung
4) Elena Orosa 9) Kristine Tiu
5) Lenore Yap 10) Chelo Rivera
A hands-on training was then completed by the group under Bill Gayatin's tutelage and
with his help, they were able to set-up the first Metro Manila branch of GAL'S BAKERY
in Santa Monica, Novaliches, Quezon City.
The rest is as they say is history. From that first branch, which opened in November 15,
2001, it has grown to 32 Luzon branches at the end of the 2004, bringing the network of
GAL'S BAKERY to 80 branches nationwide.
With the tremendous growth of GAL'S BAKERY in Luzon, it did not escape the watchful
eyes of entrepreneurs who wish to venture into the bakery business. Though the group
received a good number of franchise inquiries starting on the first quarter of 2002, it was
not until the later part of that year that the group decided to expand and grow via
franchising. Today GAL'S BAKERY is open to franchising and targets 10 - 20 franchise
stores opening per year.
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KEY COMPETITORS
COMPETITOR REASONS FOR CHOOSING AS A BENCHMARK
Competitor#1 Goldilocks is one of the most Filipino owned bakeshop
in the Philippines. They established already established
Goldilocks a good image in the Philippine Baking Industry.
Goldilocks is the best performing bakeshop in the
Market Share(Number of Filipino hearts and mind. With 100% total brand
Branches) awareness and top-of-mind score of 71% per 2005 UAI
study.
37%
Competitor #2
Red Ribbon Red Ribbon is one of the successful Baking Company

in the Philippines. Red Ribbon have the financial
Market Share(Number of capability of competing in the Baking Industry. For Red
Branches) Ribbon Bakeshop, the ingredients to success are no
secret. Quality. Service. Value. Customer. Red Ribbon
30% has even taken itself to a higher level of customer
service. Improvements are geared towards a more
delightful dine-in experience with strict FSC (Food,
Service, Cleanliness & Condition) compliance, better
take-out experience to ensure faster servicing time, and
enhanced delivery service with a broader coverage.
Your favorite cakes are just a phone call away with our
easy-to-recall Metro Manila Cakes by Delivery hotline
number -
8-77-77.
Competitor #3
Gal’s Bakeshop Because of its surviving skills in the Baking Industry

Gal’s Bakeshop is still competing with its key
Market Share(Number of competitor. With the tremendous growth of GAL'S
Branches) BAKERY in Luzon, it did not escape the watchful eyes
of entrepreneurs who wish to venture into the bakery
6% business.
iii.CRITICAL SUCCESS FACTORS
CSF Importance weight (%) Reasons for choosing

CSF and the
importance of weight
#1 Financial Position 0.40 Because of having
around 250 stores inside
What is the current financial capability of the and outside the country
company. Goldilocks made its way
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on top of the market in
the Baking and fastfood
industry. the company
enjoys a substantial lead
over competitors in all
aspects of performance.
National consumer
surveys have
consistently identified
Goldilocks as the
landslide winner in
customer satisfaction
indices such as
Awareness Conversion
(the ability to translate
brand awareness to
actual trial) and Share of
Heart (the emotional
approach to measuring
preference).
#2 Technology 0.30 Using the latest
technology in baking,
What are the latest on technology and how goldilocks created a
it affects the company’s sales and good products and
production. services. They also have
a very accessible internet
and phone services.
Their loyal customers
can access it fast and
very reliable.
#3 Customer Service 0.40 Goldilocks as one of the
pioneering baking
How the company serve their company in the country
customers and how they build loyalty. already established a
good relationship in
every Filipino, they
always adopts the
Filipino hospitality on
their services. Most
Filipinos consider
Goldilocks not only a
brand, but also a Filipino
Institution. In fact its
popular tagline, “How
thoughtful, how
Goldilocks” has evolved
over the years into “How
thoughtful, how Pinoy
(colloquial for ‘Filipino’)”,
and later to “Ang sarap
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magmahal ng Pinoy!”,
embracing a culture and
tradition that goes
beyond the name.
Innovation 0.30 As a fast growing Baking

Company Innovation is a
New and improve product services and big factor in maintaining
features market penetration. New
product features may
increase the number of
customers.
iv.)Your Firm’s rating per CSF (Julie’s Bakeshop)
CSF FIRM RATING (1- REASONS FOR RATING

4)
#1 Financial Position 3 Since then, Julie’s Bakeshop has grown to become the
largest bakery chain in the Philippines. By 1999, Julie’s
What is the current counted 210 branches nationwide. Julie’s today is a
financial capability of the household name anchoring its success on superior taste
company. and freshness of its products as well as its clean and
convenient outlets. With more than 500 branches and
outlets, 99% of which are franchised, Julie’s continues to
strengthen its market reach from North Luzon to
Mindanao.
#2 Technology 3 The Julie’s baking technology program highlights the

Julie’s way of achieving product quality, service
What are the latest on excellence and customer satisfaction.
technology and how it
affects the company’s
sales and production.
#3 Customer Service 4 Since 1981, Julie’s Bakeshop has served customers all
over the nation its distinctive brand of high quality, freshly
How the company baked breads.
serve their customers
and how they build
loyalty.
Bolivar,Castillo
#4 Innovation 3 Innovation is one of the key factors that Juiles
Bakeshop should concentrate into. There are a lot
New and improve of potential entrants and they should know how to
product services and innovate their products and services to keep their
features loyal customers.
v.)CPM
Key Competitor #1
(Goldilocks)
CSF FIRM RATING (1-4) REASONS FOR RATING
#1 Financial 4 Because of having around 250 stores inside and

Position outside the country Goldilocks made its way on top
of the market in the Baking and fastfood industry. the
What is the current company enjoys a substantial lead over competitors
financial capability of in all aspects of performance. National consumer
the company. surveys have consistently identified Goldilocks as the
landslide winner in customer satisfaction indices
such as Awareness Conversion (the ability to
translate brand awareness to actual trial) and Share
of Heart (the emotional approach to measuring
preference).
#2 Technology 3 Using the latest technology in baking, goldilocks
created a good products and services. They also
What are the latest on have a very accessible internet and phone services.
technology and how it Their loyal customers can access it fast and very
affects the company’s reliable.
sales and production.
#3 Customer 4 Goldilocks as one of the pioneering baking company
Service in the country already established a good
relationship in every Filipino, they always adopts the
How the company Filipino hospitality on their services. Most Filipinos
serve their consider Goldilocks not only a brand, but also a
customers and how Filipino Institution. In fact its popular tagline, “How
they build loyalty. thoughtful, how Goldilocks” has evolved over the
years into “How thoughtful, how Pinoy (colloquial for
‘Filipino’)”, and later to “Ang sarap magmahal ng
Pinoy!”, embracing a culture and tradition that goes
Bolivar,Castillo
beyond the name.
#4 Innovation 4 One of the first 100 companies in the country to get

GMP and SSOP (Good Manufacturing Practices and
New and improve Standard Sanitation Operating Procedures)
product services and certifications.
features
They innovate their products by acquiring the latest
in baking industry, it resulted into a good sales over
the years.
Key Competitor #2
(Red Ribbon)
CSF FIRM RATING (1- REASONS FOR RATING

4)
#1 Financial 4 With its acquisition in October 2005 by
Position Jollibee Foods Corporation, Red Ribbon
entered a new phase in its company history.
What is the current The company will soon become the biggest
financial capability and fastest-growing bakeshop in the
of the company. Philippines. Its mission is to bring the joy of
eating to everyone through its great-tasting
food and superior quality.
#2 Technology 3 Red Ribbon uses premium ingredients, such
as real butter, high quality cake flour, and its
What are the latest unique Red Ribbon cream
on technology and
how it affects the
company’s sales
and production.
#3 Customer 4 For Red Ribbon Bakeshop, the ingredients to
Service success are no secret. Quality. Service.
Value. Customer. Red Ribbon has even taken
How the company itself to a higher level of customer service.
serve their Improvements are geared towards a more
customers and delightful dine-in experience with strict FSC
how they build (Food, Service, Cleanliness & Condition)
loyalty. compliance, better take-out experience to
ensure faster servicing time, and enhanced
delivery service with a broader coverage.
Bolivar,Castillo
#4 Innovation 4 Red Ribbon dominates the baking industry
through wide variety of choices in cakes and
New and improve other pastry products, through innovating their
product services products they created a good results in fair
and features competition with its key competitors.
Key Competitor #3
(Gal’s Bakeshop)
CSF FIRM RATING (1-4) REASONS FOR RATING
#1 Financial Position 2 Because of having only 32

outlets in Luzon Gal’s
What is the current financial capability of bakeshop is having a tough
the company. time competing on its key
competitors.
#2 Technology 2 Because of its financial
capability Gal’s Bakeshop is
What are the latest on technology and how having a hard time on getting
it affects the company’s sales and the latest technologies on
production. baking compare to it’s
competitors.
#3 Customer Service 3 Because of its long stay in the
baking industry, it’s loyal
How the company serve their customers already built trust
customers and how they build loyalty. on their product and services.
Gal’s bakeshop continues to
reach out on every Filipino
home.
#4 Innovation 3 Through the years Gal’s
bakeshop exerted too much
New and improve product services and efforts in innovating their
features pastry products. Resulting into
good sales every year.
Conclusion
Based on CSF and CPM ratings Goldilokcs has a strong andvantage compared to Julie’s
Bakeshop. Goldilock’s Competitive advantage had allow him to be the number one baking
company in the Philippines.
Julie’s Bakeshop’s current competitive position is middle ground, there are a lot of
baking companies in the industry and one of its key competitors have a very strong financial
position, Julie’s bakeshop will have a tough one on sustaining its market stability. The Company
needs strategies to address the stiff competition in the industry.
Bolivar,Castillo
vi.) EFE Matrix
The researcher performed the industry analysis using the external factor evaluation
matrix. The external factor evaluation matrix summarizes and evaluates the economic,
social, cultural, demographic, environmental, technological and competitive information.
The external factor evaluation matrix for the Julie’s Frachising Corp. is given below:
Opportunities Weight Rating Weighted Score

1.)Acquiring latest 0.10 3 0.3
technology in baking
2.)Increasing number of 0.15 3 0.45

potential customers
3.)Advertising and Social 0.10 2 0.2
Networking
4.)Market Penetration 0.15 3 0.45
Threats
1.)Brand Recognition 0.10 4 0.4
2.)Increasing Number of 0.10 3 0.3

Baking Company
3.)Strong Competitors in the 0.15 3 0.45

Industry
4.)High cost of baking 0.15 4 0.6

ingredients(sugar,egg,flour)
Total: 1.00 3.15
As the results shows that Julie’s Bakeshop is responding above average (3.15)
to the environment for exploiting opportunities and to overcome threats.
There a lot of strong competitors in the Baking industry and there a lot of increasing
number of baking company, Julie’s Bakeshop should deal on how to prevent loss of
customer loyalty and should improve their brand awareness among the Filipino market.
Bolivar,Castillo
V.Company Analysis
i. Vision/Mission Statements
Old Mission Vision of Julie's Franchise Corpration
Philosophy
Each individual in our organization is committed to the pursuit of Service Excellence and
the highest level of Customer Satisfaction to any one that we do business with in the
service of our God and our Country.
Our Vision A Julies Bakeshop in every town.
We will be the most sought – after food freanchising company maintaining leadership in
the neighborhood bakeshop market.
Our Mission
Julie's Bakeshop is a major brand established as a family – oriented business and
making its presence felt all over.We maintain very high quality standards at each Julie's
Bakeshop offereng freshly baked products using only the finest ingredients and
produced in a clean environment in full view of our customers.
Criteria
Customers No N/A
Product or Services Yes We maintain very high quality
standards at each Julie's
Bakeshop Offering freshly
baked products using only the
finest ingredients and
produced clean environment
in fyull view of our customers.
Markets Yes We will be the most sought –
after food freanchising
company maintaining
leadership in the
neighborhood bakeshop
market.
Bolivar,Castillo
Concern fir SGP No N/A
Technology No N/A
Philosophy Yes Each individual in our
organization is committed to
the pursuit of Service
Excellence and the highest
level of Customer Satisfaction
to any one that we do
business with in the service of
our God and our Country.
Self - Concept Yes Julie's Bakeshop is a major
brand established as a family
– oriented business and
making its presence felt all
over.
Public Image No N/A
Employees No N/A
ii.Revised Vision- Mission of Julie's Franchising Corporation

Philosophy
Our Vision
the neighborhood bakeshop market. Every Julie's bakeshop is assured of continous
Bolivar,Castillo
marketing campaign support from the bakery opening onwards to building superior
brand image.
Our Mission
making its presence felt all over.
We maintain very high quality standards at each Julie's Bakeshop offereng freshly
baked products using only the finest ingredients and produced in a clean environment in
full view of our customers. All Julie's Bakeshop Franchisees and bakery staff should be
equip with the knowledge about company's strict quality standards through intensive
and thorough traning, seminar – workshops and hand – on product handling. The Julie's
Baking technology program highlights the Julie's way of achieving product quality,
service excellence and customer satisfaction. Julie's Bakeshop's succes is not only
measured in the fulfillment of its endeavors as a value driven franchise business, but
also in establishing harmonious relationships with the Filipino community. Julies
bakeshop's achievement in its business and relationship with the Filipino people will be
the measure of true growth.
Julie's Bakeshop will not only bring its bread closer to the Filipino people but it will also
enhance the capability of the franchisees towards growth, making them proud Julie's
Breadwinners.
Criteria
Customers Yes The Julie's Baking technology
program highlights the Julie's
way of achieving product
quality, service excellence
and customer satisfaction.
Product or Services Yes We maintain very high quality
standards at each Julie's
Bakeshop offereng freshly
baked products using only the
Bolivar,Castillo
finest ingredients and
produced in a clean
environment in full view of our
customers.
Markets Yes We will be the most sought –
after food freanchising
company maintaining
leadership in the
neighborhood bakeshop
market
Concerns for SGP Yes Every Julie's bakeshop is
assured of continous
marketing campaign support
form the bakery opening
onwards to building superior
brand image. Julie's
Bakeshop will not only brigns
its bread closer to the Filipino
people but it will also enhance
the capability of the
franchisees towards growth,
making them proud Julie's
Breadwinners.
Technology Yes The Julie's Baking technology
program highlights the Julie's
way of achieving product
quality, service excellence
and customer satisfaction
Philosophy Yes Each individual in our
organization is committed to
the pursuit of Service
Bolivar,Castillo
Excellence and the highest
level of Customer Satisfaction
to any one that we do
business with in the service of
our God and our Country.
Self - Concept Yes Julie's Bakeshop is a major
brand established as a family
– oriented business and
making its presence felt all
over.
Public Image Yes Julie's Bakeshop's succes is
not only measured in the
fulfillment of its endeavors as
a value driven franchise
business, but also in
establishing harmonious
relationships with the Filipino
community.
Employees Yes All Julie's Bakeshop
Franchisees and bakery staff
should be equip with the
knowledge about company's
strict quality standards
through intensive and
thorough traning, seminar –
workshops and hand – on
product handling.
Bolivar,Castillo
Recommendation on how will communicate the vision-mission to employees and other
stakehoklders:
The additional proposed mission statements above clearly states the majority on
how to improve their product line, services and values to the customers, practicing good
citizenship and the need for competent employees in order to achieve quality service for
insuring public. The researcher decided to include respond to social sentiment because
it will help to build company’s public image as being socially responsible through
responsible management. The core values will be the guiding principle for the
employees support the organization.
iii.IFE MATRIX
Strengths
Key Internal Factors Weight Rating Wtd Score

1.)Strong Management 0.05 3 0.15
team
2.)Good franchising 0.10 4 0.4
assistance
3.)Good relationship with 0.05 3 0.15
the Franchisee
4.)Good Relationship with 0.10 3 0.3
the suppliers
5.)Corporate Culture 0.10 3 0.3
Weaknesses
Key Internal factors Weight Rating Wtd Score

1.)No overseas market 0.20 4 0.8
2.)Limited access to 0.15 4 0.6
international market
3.)Operating Losses 0.05 2 0.1
4.)Small number of 0.10 2 0.2
management team
5.)Small number of 0.10 3 0.3
suppliers
Total: 1 3.3
VI. Strategy Formulation
Bolivar,Castillo
The information gathered through the CPM, EFE and IFE matrices will be
used to develop strategies for Julie’s Bakeshop. SWOT Matrix, SPACE, Internal-
External (IE) matrix, Grand Strategy, Summary of
Strategies and Quantitative Strategic Planning Matrix (QSPM) will be

utilized in strategy formulation.
1.)SWOT MATRIX
Strengths-S Weaknesses-W
Advertising Employee Training
Job Specialization Production Speed
Pricing Limited Branches in
Brand Name Operation
Store Size
Opportunities-O SO Strategies WO Strategies

Advertising -Being specific and having a -Making the store look more
Health Consciousness concentration with what the customer friendly to attract
“Rice Subsidy” products they wanted to more customers, and giving
offer to the public to satisfy enough benefits to the
their long for a good and employees to satisfy their
healthy sandwich as a needs for a better
substitute for rice. production in providing
quality and healthy products
Threats-T ST Strategies WT Strategies
Newbie in the Market - Empowering the Brand -Attract more investors to
Small Market Share name through massive invest to the company to
Limited Branches in advertisements in making a make the financial power
Operation good and health conscious more stable and to be able
Competition products in just a cheap to expand the business and
Food Preferences (Trend) price, affordable by the be able to offer much more
Bolivar,Castillo
mass of the products available for
sale.
Competition
Food Preferences (Trend)
Key Internal Factor Key External Factor Resultant Strategy

Unique Product Offering Government proposal for Acquire Customer Loyalty and
(Strengths) a food potential customers
subsidy(Opportunity)
Store Popularity Entry of other companies Massive production of product
(Weaknesses) (Opportunity) to top them all, and take the
lead
Strong R&D Acquiring more customer Offering of more products for
(Opportunities) friendly products and sale to customers and
having better producing it with cheaper cost
supplies(Threat)
Low Employee Employee Develop a new employee work-

Involvement Aggressiveness for life package for their benefit
(Weaknesses) secured work(Threat)
- In order for the business to succeed more, the company should be able to know
exactly the strengths of the business and know the opportunities available for
them, and by the time they are to execute everything for the good of the
Bolivar,Castillo
business, the weaknesses and the threats visible for the business should be
avoided.
2.) Space Matrix
Internal Strategic Position External Strategic Position
Financial Strength (FS) Environmental Stability (ES)
Return on investment=3 Technological changes=-3
Leverage=2 Rate of inflation=-4
Liquidity=3 Demand variability=-3
Working capital=4 Price range of competing products=-4
Cash flow=3 Competitive pressure=-4
Price elasticity of demand=-3
Ease of exit from market =-4
Risk involved in business=-2
Barriers to entry=-3
Internal Strategic Position External Strategic Position
Competitive Advantage (CA) Industry Strength (IS)

Market share=-4 Growth potential=2
Product quality=-3 Profit potential=-2
Product life cycle=-4 Financial stability=1
Customer loyalty=-4 Technological know-how=3
Competition’s capacity utilization=-5 Resource utilization=2
Technological know-how=-4 Ease of entry into market=2
Control over suppliers & distributors=-5 Productivity, capacity utilization=3
Bolivar,Castillo
Julies bakeshop is a financially strong firm that has achieved major competitive
advantages in growing and stable industry.
3.) IE Matrix
Bolivar,Castillo
Based on the on the IE Matrix Julie’s Bakeshop falls on cell 1 grow and build which
means that the following strategies are recommended:
Market Penetration
Market Development
Product Development
Backward Integration
Forward Integration
Horizontal Integration
Bolivar,Castillo
4.) Grand Strategy Matrix
Another alternative tool in formulating strategies is the GSM. It has

a l s o f o u r quadrants just like the SPACE Matrix but GSM is base of two
evaluative dimensions: competitive position and market growth.Using the grand
strategy matrix, firms are grouped into four quadrants depending on the firms
competitive position and the industry’s growth.
Looking at the GSM, Julies Bakeshop is located in the quadrant I. They are in an
excellent
strategicp o s i t i o n . T h e p e r f e c t s t r a t e g i e s a r e m a r k e t p e n e t r a t i o n , m a r k e
t development, andproduct development. Being in the quadrant I,
they can afford to take advantage of external
Bolivar,Castillo
opportunities in several areas. They can take risks aggressively
w h e n necessary.
5.) BCG MATRIX
Having an Industry Growth Rate of 8.5% and a Market Share of 27%, Julies
Bakeshop falls on Question Marks, which means
Low relative market share – compete in high-growth industry
 Cash needs are high
 Case generation is low
 Decision to strengthen (intensive strategies) or divest
6.) QSPM
Bolivar,Castillo
Strategic Alternatives
1.)Improve 2.)Build more

Franchising stores in
Program Visayas and
Mindanao
Key Factors Weight AS TAS AS TAS
Opportunities
1.)Acquiring latest technology in 0.10 4 0.4 4 .4
baking
2.)Increasing number of potential 0.15 3 0.45 3 0.45
customers
3.)Advertising and Social Networking 0.10 3 .3 4 .4
4.)Market Penetration 0.15 3 .45 3 .45
Threats
1.)Brand Recognition 0.10 1 0.1 4 .4
2.)Increasing Number of Baking 0.10
Company
3.)Strong Competitors in the Industry 0.15 3 .45 3 .45
4.)High cost of baking 0.15 4 0.6
ingredients(sugar,egg,flour)
Total: 1.00
Strengths
1.)Strong Management team 0.05 4 0.2 2 0.10
2.)Good franchising assistance 0.10 4 .4
3.)Good relationship with the 0.05 4 0.2
Franchisee
4.)Good Relationship with the 0.10
suppliers
5.)Corporate Culture 0.10 3 .3
Weaknesses
1.)No overseas market 0.20
2.)Limited access to international 0.15
market
3.)Operating Losses 0.05 4 0.2 4 0.2
4.)Small number of management team 0.10 4
5.)Small number of suppliers 0.10 3 0.3 3 0.3
Total: 1.00 3.65 3.85
VII. Strategy Implementation
Bolivar,Castillo
i.Recommended revised Mission and Vision Statements
Philosophy
Our Vision
the neighborhood bakeshop market. Every Julie's bakeshop is assured of continous
marketing campaign support from the bakery opening onwards to building superior
brand image.
Our Mission
making its presence felt all over.
We maintain very high quality standards at each Julie's Bakeshop offereng freshly
baked products using only the finest ingredients and produced in a clean environment in
full view of our customers. All Julie's Bakeshop Franchisees and bakery staff should be
equip with the knowledge about company's strict quality standards through intensive
and thorough traning, seminar – workshops and hand – on product handling. The Julie's
Baking technology program highlights the Julie's way of achieving product quality,
service excellence and customer satisfaction. Julie's Bakeshop's succes is not only
measured in the fulfillment of its endeavors as a value driven franchise business, but
also in establishing harmonious relationships with the Filipino community. Julies
bakeshop's achievement in its business and relationship with the Filipino people will be
the measure of true growth.
Julie's Bakeshop will not only bring its bread closer to the Filipino people but it will also
enhance the capability of the franchisees towards growth, making them proud Julie's
Breadwinners.
ii.Recommended Revised Strategic and Financial Objectives

Bolivar,Castillo
From the Market analysis Goldilocks and Red Ribbon are ahead of Julie’s
Bakeshop while Gal’s Bakery is in the lower rate. Goldilokcs and Red Ribbon are very
dominant in the baking industry. However, given that the market followers have equal
position Julie’s bakeshop can best succeed if it can become the strong number 2 in
position next to Goldilocks in the next 3-5 years.
The researcher established specific business strategy for Julie’s franchising
Corp. The following strategies are both strategic and financial in nature:
1.)Increase Brand Awareness
2.)Improve Franchising Assistance
3.)Expand Stores and build stores inside malls
4.)Build more stores in Visayas and Mindanao
5.) Increase its distribution and promotion of products and services
iii. Recommended Strategies

In this section, the researcher established specific business strategies for each
business objective based on the results of the strategy formulation in the previous
chapter. In summary, the recommended business strategies from the strategy
formulation chapter are market penetration, product development and market
development. The strategic objectives along with the corresponding business strategies
are given as follows:
1.)Market Development
Julie’s Bakeshop as a baking company should expand its business; its key
competitors are located almost everywhere except in the rural parts of the country.
Julie’s Bakeshop should also build stores inside the mall to gain its competitive
advantage among its competitors like Red Ribbon and goldilocks.
Managers take actions like targeting promotions, opening sales offices and
creating alliances to operationalize a market development strategy. They should also
need to improve its franchising programs and assistance so they can expand stores in
Visayas and Mindanao.
2.)Product Development
Bolivar,Castillo
Julie’s Bakeshop as one of the oldest in Philippine Baking market should
innovate its pastry products to cope up with the consumer rapid change on taste and to
the competition among its key competitors, through new-product development m the
company sown research -and-development department By new products we mean
original products product improvements product modifications and new brands that the
firm develops through its own research-and-development efforts.
3.)Market Penetration
In light of Julie’s Bakeshop’s market position it should increase its market share
through Increasing its distribution and promotion of products and services, more
expenditure in marketing and advertising activities. This strategy adopted by the firms to
raise their sales revenue without making changes in the products or services. The other
dimension of market penetration is the existing market which means firm already
offering products or services to the customer but can forecast that the existing sales
figures can be improved by working on marketing penetration strategy.
iv. Recommended organizational Strategies

After analyzing the key internal factors of Julie’s Bakeshop the following
strategies are highly recommended:
1.)Should build strong management team.
A key element to entrepreneurial success is choosing the right people to
be part of your management team.
2.) Should have Good Franchising Assistance
Franchisors provide financing assistance either directly or indirectly.
3.)Build Good relationship with the Franchisee
On – going support from the franchisor and fellow franchisees. Julie’s
Franchising program should keep its continuous support to its franchisee.
v.Financial Projections and Overall Evaluation of the strategies
Bolivar,Castillo
The researcher established a forecast of the Net Income of Julie’s Bakeshop .
The period covered is 2008-2012. The financial projections below was based on the
strategic objectives and proposed strategies on the different aspects of the business in
the previous chapters.
Year 2008(actual) 2009(actual) 2010 2011 2012

Net Income 303,566 208,463.8 335,413.0 542,691.8 2,209,947
Increase or -99,103 126,950 207,278.8 1,667,255.2

decrease
%of -145% 62.15% 61% 24%

increase or
decrease
Conclusion:The strategies recommended by the researcher are projected to gradually

enable Julie’s Bakeshop to achieves it strategic objectives of growing the net income to
P2,209,947 exceeding the net income of the previous years.
vi.Departamental Programs
In this section the researcher established different programs and step by step
action that will be undertaken to progress the implementation of the strategic plan. The
action is discussed based on its objective and strategy it supports. The action plan for
Julie’s Bakeshop is given as follows:
1.)Increase Brand Awareness
Strategic Program Expected Output Time Table Persons/unit
Responsible
Use the Internet to Gain popularity Continuous Marketing
develop product Department
popularity
Develop Business It will gain exposure Continuous Marketing
Status with public in local press or Department
relations and press publication. Public Relation
Bolivar,Castillo
relations Officer/s
Rent Billboard along This will associate Continuous Marketing
Highways the brand with a Department
specific product
2.)Improve Franchising Assistance

Responsible
Positive Increase potential Continuous Management/
Reinforcement franchisee Franchising Officers
Monthly Evaluation Will oversee the Monthly for the next Management
of the new growth of the 2 years
Franchise for the business
next 2 years
The role of effective franchisee- Continuous Management
Mentoring support
3.)Expand Stores and Build Stores inside malls

Responsible
Increase the Will assess how Quarterly Management,
Business Capacity much money will be Marketing,
to produce the needed to expand Financing
product or service the business
Assess whether the Will assess how First months of the Management,
current number of employees to strategy Human resource
employees can employ, will lessen implementation
handle the new the cost of the
business load company.
Target other Will serve different Annually Marketing ,

markets. markets Management
Look for larger Will serve larger Annually All department
Bolivar,Castillo
premises if needed. market, and
costumers
4.) Build more stores in Visayas and Mindanao

Responsible
Build Stores in Will serve a larger Quarterly All departments
Visayas and market
Mindanao
5.) Increase its distribution and promotion of products and services

Strategic Program Expected Output Time table Persons/Unit
resposible
Advertise Increase in profit Monthly Marketing
(tv,radio,newspapers,etc) and sales Department
Sales promotion (Could increase in sales Monthly Management,
involve using money off short term Marketing
coupons or special Departmetn
offers.)
Set pricing objectives It will maximize Monthly Accounting
company’s profit Department,
and revenue and Management
will stabilize the
price of the
products
VII. Strategy Evaluation, Monitoring and Control

In this section the researcher prepare a Balance Scorecard as strategy
evaluation tool, It will allow the organization to evaluate from our perspectives: Financial
Performance, Customer Knowledge, Internal Business processes and Learning and
Growth.
Bolivar,Castillo
Proposed Key Result Performance Time Frame Department in
Strategy Areas Indicators Change
Market Target different Establishments 2 to 3 years Marketing,
development market (malls, of the said Finance,
establishments) areas. Production and
Operations
Market Increase the Result of the 2 to 3 yrs Marketing,
Penetration market share in Market share Management,
the Baking Production and
Industry Operations
Product Innovation in Profit and sales 2 t0 3 years Marketing,
development Baking Production and
products and Operation
Baking
Equipments
Balanced Scorecard for Julie’s Bakeshop
Area of Objectives Scorecard Measurement Timetable
Bolivar,Castillo
Financial Improve Productivity Increase by 25 – 30 % 2 to 3 years
Perspective Long Term Share
Holder Value
Return of
Investment
Customers Customers Increase customers 2 to 3 years
satisfaction 20-30 %
Internal Process Development of Increase of sales 30 – 2 to 3 years

(Marketing, new baking 40 %
Management, technologies and
Operations) Pastry Product,
Integrated
Marketing
Communications,
Management
recognition
Learning and Grow Human capital Increase in production 2 to 3 years
Growth Build Organizational and sales 20 30 %
Capital
Reference:
Fred R. David. Strategic Management: Concepts and Cases, 11th Edition.
Fred, David. Strategic Management. 7th edition. 2009.
Kotler, Philip & Keller, Kevin. Marketing Management. 4th Edition.
www.scribd.com
http://www.planware.org/businessstrategies.htm
Bolivar,Castillo
http://www.entrepreneur.com/management/growingyourbusiness/article70660.html
www.juliesbakeshop.com.ph
www.goldilocks.com.ph
www.gal’sbakery.com.ph
www.sec.gov.ph
www.redribbon.com.ph
Bolivar,Castillo

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Executive Summary

Julie’s Bakeshop or Julie’s Franchise Corporation has grown to become the

The Rising of a Breadwinner

2004 CEO Roberto R. Gandionco was awarded as the Agora - Outstanding

Franchise Marketing Campaign of the Year Award (Food Category – Medium

Franchisee of the Year Award – Ms. Ritchie Hawak

- Hall of Fame/ Outstanding Filipino Franchise of the Year

Julie’s Bakeshop (Medium Scale Category/ Specialty Bakeshop)

- Franchisee of the Year - Carolyn Francisco

- Garbo sa Sugbu Award

2007 Most Socially Responsible Entrepreneur Award

Franchise Marketing Campaign of the Year

Franchisee of the Year Award – Dr. Ed Escalona

Julie’s Franchise Corporation is manned by professionals who assist each franchisee

Julie’s Franchise Corporation recognizes franchisees whose bakeries adhere to the

Every Julie’s Bakeshop is assured of continuous marketing campaign support from

A Value Driven Business…

II. Research Design and Methodology

III. Environmental Analysis

Specific Factor Relevance to Enterprise

Plantation- php 367.00

SPECIFIC FACTOR RELEVANCE TO ENTERPRISE

Some laws regarding business will guide the franchisee of

SPECIFIC FACTOR RELEVANCE TO ENTERPRISE

Website Since almost everyone has the easy access on the

Specific Factors Relevance to Enterprise

Trademark of being a Filipino is Being Filipino we are very accommodating to guest,

Specific Factors Relevance to Enterprise

Climate in the Philippines As to baking industry it is an ideal climate for

IV.Industry and Competitor Analysis

Conclusion Basis for conclusion

Consumers can switch brands easily- because of a lot of baking

Industry demand declining – the purchase power is depreciating

Barriers to leaving the market/industry are high - a firm may be

Products are perishable- Julie’s bakeshop offers a wide variety of

2.)Potential for New Entrants

Conclusion Basis for Conclusion

Strong customer loyalty- The product is loved by the customers

Lack of access to raw materials- the basic ingredients of bread are

Current competitors have strong marketing resources – because of

3.)Bargaining Power of Suppliers

Conclusion Basis for conclusion

Conclusion Basis for Conclusion

Julie’s Bakeshop has a large volume of competitors in the

Filipinos love to eat bread everyday and some of the

The products are undifferentiated compare to the prices of

The quality of breads and services of Julie’s bakeshop is

5.) Potential for Substitutes

Conclusion Basis for conclusion

In light of today’s economic status, people are searching for

There are a lot of baking companies in the market and for

Summary of Porter’s Five Forces of Competition

#2Competitor Red Ribbon

1) Bill & Arcy Gayatin 6) Miriam Pantig

Red Ribbon Red Ribbon is one of the successful Baking Company

Gal’s Bakeshop Because of its surviving skills in the Baking Industry

iii.CRITICAL SUCCESS FACTORS

CSF Importance weight (%) Reasons for choosing

Innovation 0.30 As a fast growing Baking