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Case Study: Magnolia Fresh Chicken

SWOT Analysis
Internal Factor Analysis Summary (IFAS)
Internal stratigic forces

Weight

Rating

Weighted
Score

S1- convenient

10%

0.3

S2- processing operations

15%

0.6

S3-Image and Brand name

20%

0.8

10%

0.3

Comments

Strengths

S4- beginnings in 1953

S1- cook-easy chicken products that provide


the warmth of home-cooked meals at an
affordable cost
S2- automated feeding and drinking systems.
The marination process utilizes refrigerated
tumbling machines to achieve better marinade
pick-up and uniformity.
S3-"Trusted Brands" awards, giving these
awards a high degree of credibility that
actually translates into consumers' purchasing
decisions. For Monterey Meats, now on its
fourth year as a Platinum awardee, and
Magnolia Chicken, now a Platinum awardee
after three years as Gold, the Trusted Brand
recognition is a testament to our strong
connection with consumers.
S4-Being one of the oldest poultry industry in
the country, make them stonger and ear more
customers and more knolegable.

S5-Distribution

8%

0.24

S5-They are number one distributor in the


country, and they go exporting alreary and had
a god brand name standing outside the country.

S6-marketing strategy

12%

0.6

They give promo like buy one take one, to


atract more consumer to buy there product.
And one way to intruduce there new product.

W1-Customer looses due to


fieres competition

W2- Too many products


W3-lower customer follower

8%

0.24

13%

0.39

4%

0.16

Magnolia had to compete with many strong


brand name in chicken industry such as bounty
fresh. This fieres competition makes magnolia
loose a large number of customers who prefer
favor of other brands
W2- By constantly adding products,
some products have lost value, and they are risky
endeavors.

W3-the number of follower, start to decrease


each week.

External Factors Evaluation (EFE) Matrix for Magnolia Chicken


Key External Factors
OPPORTUNITIES
1
Philippine population is growing steadilyby 1.89% yearly
2
Fast expansion of fast food chains nationwide
3
Increase number of department stores/ groceries nationwide
4
Chicken meat importation is increasing
5
Opening of chicken meat export market
6
Increase consumer purchasing power
7
Stop operations of backyard broiler farm across the country
8
Bird Flu free status of the Philippines
9
Chicken meat is cheaper than other meat
THREATS
10
Possible entry of Bird Flu disease in the country
11
Competition for local market versus smuggled chciken
12
High cost of feed and feed ingredients (input cost)
13
Threat of foreign competition as ASEAN market will be
opened
14
Typhoons and other natural calamities in the country
15
Increased incidence of chicken diseases
TOTAL

Weight

Rating

Weighted
Score

0.06
0.10
0.10
0.07
0.07
0.07
0.04
0.05
0.05

3
4
4
3
3
3
2
3
2

0.18
0.40
0.40
0.21
0.21
0.21
0.08
0.15
0.10

0.06
0.06
0.10
0.07

3
3
4
3

0.18
0.18
0.40
0.21

0.05
0.05
1.00

2
2

0.10
0.10
3.11

ECONOMIC FACTORS
PHIL. BUREAU OF AGRICULTURE STATISTICS
THE DEMAND FOR CHICKEN MEAT IS FORECAST TO RISE AS A RESULT OF
PROJECTED IMPROVEMENTS IN THE PHIL. ECONOMY AND A GROWING
POPULATION.

HIGH COST OF RAW MATERIALS

POLITICAL,GOVERNMENTAL,LEGAL FACTORS

ASEAN REGION
THE ELIMINATION OF TARIFFS ON MOST FARM GOODS
DEPT. OF TRADE AND INDUSTRY
PROCESSING PLANTS ARE CERTIFIED ISO 9001:2008 AND 22000-2005V
NATIONAL MEAT SERVICE INSPECTION SERVICE
POULTRY PLANT ARE CERTIFIED TO HACCP/SSOP
HALAL- CERTIFIED

Strategies:
1.FRANCHISING BUSINESS
- MAGNOLIA CHICKEN STATION AND HUNGRY JUAN RETAIL OUTLETS

2.OUTSOURCING
-THIRD-PARTY OWNED AND OPERATED FACILITIES
3.ACQUISITION AND MERGER
-PUREFOODS SUPERMANOK AND MOTEREY MEATSHOP

4.CONSUMER CONVENIECE
-FROM WET HABIT TO SUPERMARKET ENVIRONMENT

5.PRODUCT INNOVATION
-COOK-EASY PRODUCT LINE

Our Core Purpose

Nourishing and Nurturing Families World Wide

It is our fundamental belief that everything is loaned to us by our Creator, to grow


and multiply them for the good of everyone. As such, we value and take care of what has been
entrusted to us - malasakit. It is the core value that permeates all other values that we espouse:
Customer focus, Social Responsibility, Passion for Success, Integrity, Respect for our People,
Innovation, and Teamwork.
It is in this spirit that we will look after the welfare and interest of our stakeholders.
We will delight our Customers with products and services of uncompromising quality, great taste
and value, and are easily within their reach.
We will create value and provide fair returns on our Shareholders investments.
We will work hand-in-hand with our Suppliers and other Business Partners, helping them grow
with us and assuring them of reasonable returns.
We will develop and motivate our Employees to become best-in-class through cognitive and
affective programs, competitive compensation and benefits, and diverse career growth
opportunities. We will help improve the quality of life in Communities where we operate.
Collectively, we will give and do what is right and become proponents of good stewardship.

Our Envisioned Future

BHAG
By 2020, San Miguel Purefoods Company, Inc. will be a P520 billion company with an income of P42
billion

Vivid Description
We will intimately understand our consumers, winning ther hearts by providing-tasting and innovative
products and services that anticipate and respond to their needs.
We will ensure that our products are of uncompromising quality and easily within reach.
We will be the leading provider of good nutrition for families, offering a wide spectrum of products.
And, to complete our portfolio, we will engage in nutraceuticals and organic food segments.
We will revolutionize the foodservice and retail industries.
We will aggressively bring our products and services worldwide, spanning the Asia-Pacific, Middle East,
South Africa, and Europe.
We will develop a regional network of manufacturing capabilities that will provide us with least cost
advantage in raw material sourcing, production, and logistics costs.
We will develop a regional network of manufacturing capabilites that will provide us with least cost
advantage in raw material sourcing, production, and logistics costs.
We will become the benchmark of innovation, systems and technology, and people development in the
industry.
We will play an active role in improving the lives of the communities where we operate.
We will be the Filipino company that nurtures families worldwide.

BOARD OF DIRECTORS
Eduardo M. Cojuangco, Jr.
Chairman of the Board
Chairman, Executive Committee

Ramon S. Ang
Vice Chairman of the Board
Member, Executive Committee
Member, Executive Compensation Committee
Francisco S. Alejo III
President
Member, Executive Committee
Member, Nomination and Hearing Committee
Menardo R. Jimenez
Chairman, Executive Compensation Committee
Member, Audit Committee
Member, Nomination and Hearing Committee
Mario C. Garcia
Director
Carmelo L. Santiago
Independent Director
Chairman, Audit Committee
Chairman, Nomination and Hearing Committee
Member, Executive Compensation Committee
Angelina S. Gutierrez
Independent Director
Member, Executive Committee
Member, Audit Committee
Silvestre H. Bello III
Independent Director
Edgardo P. Cruz
Independent Director
Member, Audit Committee

KEY EXECUTIVES
Eduardo M. Cojuangco, Jr.
Chairman
Ramon S. Ang

Vice Chairman
Francisco S. Alejo III
President
Zenaida M. Postrado
Chief Finance Officer & Treasurer
Ma. Soledad E. Olives
Compliance Officer
Alexandra B. Trillana
Corporate Secretary & General Counsel

SAN MIGUEL FOODS, INC.


Rita Imelda B. Palabyab
President

SAN MIGUEL MILLS, INC.


Florentino C. Policarpio
President

THE PUREFOODS-HORMEL COMPANY, INC.


MAGNOLIA, INC.
SAN MIGUEL SUPER COFFEEMIX CO., INC.
Raul B. Nazareno
President

P.T. SAN MIGUEL PURE FOODS INDONESIA


SAN MIGUEL-HORMEL (VN) CO., LTD.
Oscar R. Saez
Vice President, International Operations & Exports

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