company analysis

Saint Louis College San Fernando City, 2500 La Union College of Commerce, Secretarial and Accountancy Company Analysis (Universal Roina Corporation! ("olliee Food Corporation! (San #iguel Corporation!

$n %artial Fulfilment of t&e Re'uirements in Financial #anagement 

Submitted to:

 #rs) Feli*a +illanueva

Submitted by:

Camille -en .aldo "oy Rimando  /ia Liao Lucs #ae #adayag C&armaine "ane Ra1a "enny Rose Cariaga  #aria Cecilia Arran* "enimie Reyes

(Time Schedule: 3:00-4:00 MWF) August 17, 101

TA!"# $F %$&T#&TS '

%$MA&* + +$F'"#

A Whe d ho. the com/y .s estblished d .ho .ee es/osible o settig it u/ ! #2olutio o the com/y % iectos d Mges '' ''

&# &#+S +STA TA& &'& '&5 5 T6# T6# %"T %"T+ +# #

A Mgemet /ici/les, styles d /ctices ! Stdig o the im elti2e to:  'dusty b !d me cce/tce c oductio cilities d thei loctios d Metig d distibutio outlets e icig % oduct i2esiictio  '2estmet i2esiictio ''' A&A"*S'S '8

+#F#+#&%#S

TA!"# $F %$&T#&TS '

%$MA&* + +$F'"#

A Whe d ho. the com/y .s estblished d .ho .ee es/osible o settig it u/ ! #2olutio o the com/y % iectos d Mges '' ''

&# &#+S +STA TA& &'& '&5 5 T6# T6# %"T %"T+ +# #

A Mgemet /ici/les, styles d /ctices ! Stdig o the im elti2e to:  'dusty b !d me cce/tce c oductio cilities d thei loctios d Metig d distibutio outlets e icig % oduct i2esiictio  '2estmet i2esiictio ''' A&A"*S'S '8

+#F#+#&%#S

U/$+3RSAL R.$/A C.R%.RA6$./ $) C.#%A/ %R.F$L3  A) 4&en and &o- t&e company -as estalis&ed and -&o -ere responsile for setting it up) i2esl +obi %o/otio (+%) is oe o the lgest bded cosume ood d be2ege /oduct com/ies i the hili//ies d hs  sigiict d go.ig /esece i the AS#A& mets +% is mog the hili//ies9 /ioees i the idusty 't hs bee i o/etios o o2e 0 yes sice oh 5oog.ei,  estblished i2esl %o oducts, 'c,  costch muctuig /lt i sig, i 1;4

 +% is egged i  .ide ge o ood-elted busiesses, icludig the muctue d distibutio o bded cosume oods d is lso i commodities mely sug millio bd eiig d lou millig d i Ago idustil busiesses o ms mily hogs d iml eed millig d elted /oducts +% is the ledig bded sc oods d be2ege com/y i the hili//ies 't is the ist <hili//ie  AS#A& Multitiol< d hs /o2e itsel to be  tilbl=e i muctuig .ith  stog d loyl cosume bse The com/y hs us.e2igly sho.csed its io2tio d e>cellece though its goudbeig /oducts, .ide distibutio et.o, d

eecti2e metig This is lso e2idet i +%9s omidble met ledeshi/ i sc oods d be2eges oh 5oog.ei  estblished  2isio o +% to become oe o the ledig / Asi /lyes i sc oods d be2eges This 2isio is gdully beig eli=ed s +% hs mged to tsom itsel om  hili//ie o/etio to  ecogi=ed Asi multitiol .ith ull scle o/etios i eight couties outside the hili//ies, d soo i emegig mets lie Mym, "os d %mbodi

' dditio, +%9s /oducts e ledy beig e>/oted to mistem mets i the S, #uo/e, /, ?oe the Middle #st d otie mets i West Aic, lie 5h d &igei +% hs built thee stog egiol bds o2e the yes@ <c 9 ill< o sc oods, <%< o edy to di te, d <5et Tste< o coee, .ith these bds becomig /o/ul coss the AS#A& egio +%9s ey to success is to build 2ey stog bdig though  obust /oduct io2tio /i/elie, cosumecetic metig d .old-clss muctuig d su//ly chi mgemet +% .ill cotiue to tsom itsel i lie .ith the chgig e>tel dymics i lie .ith icesig o//otuities i Asi d beyod

a) Company 7istory i2esl +obi %o/otio (+%) tces its begiigs ll the .y bc to 1;4 oh 5oog.ei .s doig 2ey .ell the s  tdeBim/ote 6e hd leed the tde .he his the died beoe the ., d hd .oed hd though the . d /ost-. yes to /os/e 6o.e2e, .hile he thi2ed, he too  log hd loo t his com/y, d coectly /edicted tht tdig .ould emi  lo.-mgi busiess $ the othe hd,  successul muctue cotollig its o. /oductio d distibutio .ould commd moe /oitble mgis M oh decided to costuct  co millig /lt to /oduce glucose d costch, i2esl %o oducts (%), the ist lich/i o the com/y tht .ould become the +% .e o. tody

Fo  time, busiess .s good 6o.e2e, M oh .s still looig hed, .oig .ith  eye to.ds the utue While the busiess .s doig 2ey .ell, it .s /oducig essetilly  commodity, .hich  custome could esily ccess else.hee To sty hed i the gme, M oh hd to di2esiy by /oducig d metig his o. bded cosume oods, simil to the multitiol com/ies i the couty lie &estle d octe C

5mble '  sese, he .ted to /ut u/ the ist 9locl9 M&%, boe out o thei best /ctices

Thus, i 1;D1, %osolidted Food %o/otio .s bo Thei ist 9home u9 /oduct .s !led 4, the ist locllymuctued coee bled, dubbed s the <ioy coee< This becme the lgest-sellig coee bd i the met, e2e betig met ledes %eE uo d &esce

Ate coee cme chocoltes &i/s,  /ed chocolte .ee  st/le o Fili/io childhood

' 1;D3, +obi Fms stted o/etios, begiig .ith /oulty /oducts This .s lso the begiig o the 2eticl itegtio o the 5oog.ei busiesses, s the ms .ould be ble to /uchse eeds om % i the utue "te tht decde, +obichem "botoies .ould be /ut u/, to cte to the 2eteiy eeds o the ms busiesses +obi Fms e>/ded s it eteed the hogs busiess i the ltte /t o the 70s

1;DD s. the estblishmet o i2esl +obi %o/otio, .hich /ioeeed the slty scs idusty though %hi= %uls, %hi//y, d otto %hi/s, ude the <c 9 ill< bd $the sc /oducts .ould ollo. o2e the yes, s the com/y successully itoduced met ledes lie et=els, ittos, d M>>

The comig decdes s. moe cuisitios d e>/sio ' the ely 1;70s, the mily eteed the commodities busiess though the omtio o %otietl Millig %o/otio, o lou millig d /oductio The lte 1;G0s bought the cuisitio o thee sug mills d eieies, ude +% Sug These t.o busiesses /o2ided stble csh lo.s, d llo.ed o uthe 2eticl itegtio i the su//ly chi, to hel/ +% .ethe y 2oltility i the cyclicl commodities mets ' lie .ith this sttegy, the lte 1;;0s s. the ety o +% ito the /lstics busiess, though +% cgig

While the busiesses becme moe di2esiied, the com/ies .ee slo.ly itegted i ode to stemlie d miimi=e costs ' 00, the /eset stuctue o the gou/ .s com/leted All the dieet com/ies e o. ogi=ed ude the i2esl +obi %o/otio umbell, di2ided ito 3 ocused gou/s:

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the !ded %osume Food 5ou/, com/ised o !%F5 omestic (icludig /cgig) d 'tetiol

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the Ago-'dustil gou/, com/ised o i2esl %o oducts, +obi Fms, d +obichem

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d the %ommodities gou/, .ith the Sug d Flou di2isios

 ) usiness .perations i2esl +obi %o/otio (+%), the <ist hili//ie multitiol<, is oe o the lgest bded oods com/ies i the hili//ies, d hs mged to e>/d to othe Asi mets Most ecetly, +% hs e>/ded its ech to &e. Held d Austli though the cuisitio o 5ii9s Foods,  ledig scs /lye i &e. Held

+% is egged i  .ide ge o ood-elted busiesses, icludig the muctue d distibutio o bded cosume oods, lou millig d /st muctuig, sug millig d eiig, ee.ble eegy 2i the bio-ethol d biomss cogeetio busiesses (ude Sug 5ou/), hog mig, muctue o iml eeds, glucose, soy /oducts d 2eteiy com/ouds

c) #ission, +ision and Core +alues  #ission i2esl +obi %o/otio (+%) is oe o the lgest bded ood /oduct com/ies i the hili//ies d hs  go.ig /esece i othe AS#A& mets

 +ision +%9s 2isio is to be the best hili//ie ood d be2ege com/y, .ith  /o.eul /esece thoughout the AS#A& egio, cyig  .ide /otolio o delightul bds o e>ce/tiol ulity d 2lue, eui//ed .ith eiciet systems d moti2ted /eo/le We e committed i mig li2es  tuly u e>/eiece

 +alues %assion to 4in8 We build ogi=tiol c/bility by beig ete/eeuil d /octi2e, di2e by  sese o ugecy d /u/ose We cotiuously chllege ousel2es to deli2e .old-clss bds d cosistetly lly ou /eo/le to sti2e o e>cellece

9ynamism8 We culti2te  cultue o io2tio d /oducti2e .oig eltioshi/s We cotiuously id .ys to im/o2e ogi=tiol d /eo/le c/bilities to meet costtly chllegig cosume eeds

$ntegrity8 We e guided by ts/ecy, ethics, d iess We build the busiess .ith hoou d e committed to good go2ece $u /ocesses d /oducts

meet the highest stdds We e cedible i ou deligs .ith both itel d e>tel steholdes

Courage8 We sei=e o//otuities i buildig log-tem, sustible busiesses We me tough /eo/le d busiess decisios to esue com/etiti2e d2tge

) 3volution of t&e company "ooig hed to I .old .ithout bodes,J +%, cuetly the hili//ie ood d !e2ege %om/y .ith the .idest geog/hicl oot/it, hs e>/ded stedily outside the couty At /eset, +% mitis muctuig cilities i 8ietm, Thild, 'doesi, Mlysi d %hi d sles oices i Sig/oe d 6og ?og Some o the ll-time Fili/io 2ouite Ic K illJ /oducts such s ittos, +olle %oste, %loud ;, d %em-$, d % %ool d %le 5ee Te, s .ell s othe e. d e>citig bds, c be oud o su/emet shel2es d i eighbouhood stoes thoughout the egio +% 'tetiol ge. temedously i the /st yes d hs become  mLo /lye i the Southest Asi egio Fuelled by its ledeshi/ i Thild d 8ietm, d the stedy go.th o its /esece i Mlysi, Sig/oe, 'doesi, 6og ?og d %hi, +% cotiues to im/t Loy i the egio usig the sme .iig omul tht hs delighted Fili/ios though the yes

+% hs bee  /t o the Fili/io cosumes li2es o decdes 6o.e2e, the %om/y lso tes much /ide i its successul e>/sio beyod hili//ie shoes $2e the /st e. yes, it hs stedily built  /esece i Southest Asi d %hi .ith +% 8ietm t the oeot +% 8ietm oly stted o/etios i 004 but hs te git ste/s sice the 't is cuetly the lgest (i tems o e2eues) mog the dieet couty o/etios, secod oly to the hili//ies ' $ctobe 013, % becme the N1 +edy-to-di Te /oduct i the .hole o 8ietmO, bestig e2e the stogest locl d oeig com/etitos At /eset, +% 8ietm cotiues to e>/d its io2ti2e /otolio o sc oods d be2eges 't lso cotiues to stegthe its o/etios .ith /ls to build  e. ctoy i Pug &gi (i cetl 8ietm) to com/lemet the e>istig 6o %hi Mih d 6oi cilities 't is /eh/s hd to belie2e tht  Fili/io com/y c chie2e so much success i  couty tht is moe th ;00 miles .y, s/es  etiely dieet lguge, d hs 2ey uiue ilueces d tstes !ut +% hs  cou/le o thigs goig o it: the bility to Klocli=e, d  ui2esl 2isio d coe 2lues K"ocli=tio c me my thigs but o +%, it mes the bility to d/t the /oducts d the busiess o/etios to  etiely dieet couty o situtio but still oeig somethig disticti2e $e e>m/le i 8ietm is tht the %om/y

hs successully Klocli=ed both the /oduct d the metig o % 8ietm hs  dee/-ooted te cultue d becuse o this, the %om/y decided to oe d /ush % moe th y othe /oduct %, beig eshly be.ed om gee te le2es, ctes 2ey .ell to this tditiol te-diig cultue d yet oes somethig e. .ith its eeshig uity l2ous #2e the .y % is meted s/es o this immesio ito the 8ietm cultue +% 8ietm hs bee uig thei I$ly $e "o2e, $ly %J bd messge coss its d2etisig d /omotiol eots d it hs ceted  stog iity .ith the locl cosume This d/ttio lso cies o2e to the .y the %om/y us its o/etios Q om /uchsig (eg usig loclly go. gee te le2es) ll the .y to distibutio

C) 9irectors and #anagers .AR9 The !od hs do/ted the +e2ised %o/ote 5o2ece Mul i 010 o the %om/y The Mul elbotes o the go2ece oles d es/osibilities o the !od d its iectos The !od esues tht ll mteil iomtio bout the %om/y is disclosed to the /ublic o  timely me The !od lie.ise is stogly committed to es/ect d /omote the ights o stocholdes i ccodce .ith the +e2ised %o/ote 5o2ece Mul, the %om/ys Aticles o 'co/otio, d !y-".s

Composition R The !od is com/osed o ie diectos (ou e>ecuti2e diectos, thee o-e>ecuti2e diectos, d t.o ide/edet diectos) .ith di2ese bcgouds d .o e>/eiece R &oe o the ide/edet diectos o. moe th  o the %om/ys c/itl stoc R ieet /esos ssume the ole o %him o the !od d %#$

 Attendance of 9irectors uy 1 to ecembe 013 te o #lectio: A/il 1G, 013 &umbe o meetigs duig the ye: ;

Role A iectos $ice is oe o tust d coidece A iecto should ct i the best iteest o the %om/y i  me chctei=ed by ts/ecy, ccoutbility, d iess 6e should lso e>ecise ledeshi/, /udece, d itegity i diectig the %om/y to.ds sustied /ogess

.AR9 .F 9$R3C6.RS

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 A) #anagement principles, styles and practices $nsider 6rading %olicy The %om/y obse2es stict com/lice .ith the #>chge9s Tdig +ules d +estictios, em/hsi=ig the eed o ts/ecy d iess i its tsctios i ode to ully //ise its i2estos o its cuet cti2ities The %om/y is guided by, obse2es d com/lies .ith /o2isios o the Secuities +egultio %ode (+A Act &o G7;;) .ith egd to the ohibitio o Fud, Mi/ultio d 'side Tdig The %om/y com/lies .ith the /o2isios o l. set oth i the Secuities +egultios %ode d shll im/lemet /olicies d /ocedues to /e2et the uuthoi=ed disclosue o misuse o mteil, o-/ublic iomtio i secuities tdig to /ese2e the e/uttio d itegity o the %om/y

Conflict of $nterest %olicy The %om/y9s %ode o !usiess %oduct d %olicts o 'teest olicy euie em/loyees to me  coscious eot to 2oid colict o iteest situtios@ tht his Ludgmet d discetio is ot ilueced by cosidetios o /esol gi o beeit A colict o iteest my lso occu becuse o the ctios, em/loymet, o i2estmets o  immedite mily membe o  em/loyee

Related %arty 6ransaction escibe the com/y9s /olicies d /ocedues o the e2ie., //o2l o tiictio, moitoig d ecodig o elted /ty tsctios bet.ee d mog the com/y d its /et, Loit 2etues, subsidiies, ssocites, ilites, substtil stocholdes, oices d diectos, icludig thei s/ouses, childe d de/edet sibligs d /ets d o itelocig diecto eltioshi/s o membes o the bod

Stae&olders 7ealt&, Safety and 4elfare Stae&olders The %om/y is committed to udete ll esoble ste/s to esue the helth, sety d .ele o the best iteest o ou steholdes d the commuities .hee .e li2e d .o by com/lyig .ith the /o2isios o l., idusty ules d egultios, stdds o ide/edet ccedittio bodies .hee the %om/y obtied ccedittio, d cotctul obligtios This /olicy ims to:

1 o2ide  guidig /ici/le to esue helth, sety d .ele o the %om/y9s steholde

 'detiy es/osibility d ccoutbility o e2ey /esoel d de/tmet i the ogi=tio to esue the helth, sety d .ele o steholdes

3 'tegte helth d sety /ctices i ll cti2ities to esue eiciecy d ulity o /oducts d se2ices

This /olicy shll deie the guidig /ici/les d es/osibilities o mgig helth, sety d .ele o the steholdes o 5 Summit 6oldigs, 'c (5S6'), its subsidiies d ilites

3mployees The %om/y bides by sety, helth, d .ele stdds d /olicies set by the e/tmet o "bo d #m/loymet "ie.ise, the %om/y hs Secuity d Sety Muls tht e im/lemeted d egully e2ie.ed to esue the secuity, sety, helth, d .ele o the em/loyees i the .o /lce

To esue tht the em/loyees o the %om/y miti  helthy blce bet.ee .o d lie, helth d .elless /ogms e ogi=ed o these em/loyees oessiols e i2ited to coduct clsses o Humb, Ti %hi, d othe cti2ities i ou .o site The %om/y hs lso /teed .ith itess gyms to oe s/ecil membeshi/ tes to em/loyees This

is i dditio to the ee use o gym cilities i the dieet istlltios

*e o ye, the %om/y hs cilitted 2ccitios such s gist lu d ce2icl cce tht e oeed ot oly to em/loyees but to thei de/edets s .ell The %om/y hs .oed .ith helthce /o2ides i idetiyig to/ diseses bsed o utili=tio e/ot d hs i2ited esouce s/ees to tl bout /e2eti2e mesues

To esue the sety o the %om/y9s em/loyees,  %o/ote #megecy +es/ose Tem (%#+T) hs bee ceted tht .ill be cti2ted d .ill become the
Company 6rainings and 9evelopment %rograms for 3mployees The %om/y cotiuously /o2ides leig d de2elo/met o//otuities o its em/loyees though the oh 5oog.ei 'stitute o "edeshi/ d #te/ise e2elo/met o .ht is commoly o. s 5-'"#

5-'"# is the ledeshi/ /ltom o systemtic d sustied de2elo/met /ogms coss the coglomete 'ts missio is to eble  high /eomig ogi=tio tht .ill cilitte the leig /ocess d de2elo/ the itellectul d /esol go.th o ll em/loyees though tgeted d customi=ed tiigs d de2elo/met /ogms

5-'"# cuiculum com/ises o the ollo.ig:

%oe ogm - /ogms desiged to esue em/loyees h2e the oudtio eeded to /eom Lob eecti2ely 't lso co2es ey /eo/le sills tiig tht .ill hel/ su/e2isos d mges i ledig thei tems to /eom to the o/timum le2el

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!sic Mgemet ogm (!M)

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%ochig o #ecti2eess (%F#)

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oblem Sol2ig d ecisio Mig (SM)

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#m/loyee isci/lie ogm (#)

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Achie2ig %ustome Se2ice #>cellece (A%#)

Mgemet e2elo/met ogm  /ogms tht ims to ehce the ledeshi/ c/bility d busiess cume o ll ledes

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Fice o Seio #>ecuti2es

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Sttegic %ommuictio ogm

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#>ecuti2e %ochig ogm

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Ad2ced &egotitio Sills

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"edig d Mgig %hge

Resources 9evelopment 7uman %rogram   - couses desiged to esue em/loyees h2e  commo udestdig o the 6+ /ocesses d systems by .hich the %om/y o/etes

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ob #2lutio

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%om/etecy-!sed System

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$gi=tio esig d M/o.e lig

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"bo +eltios Mgemet

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eomce Mgemet System

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Tgeted Selectio-%om/etecy !sed 'te2ie.ig

Creditors The %om/y u/holds ceditos9 ight by hooig cotcted obligtios d /o2idig iomtio euied ude the +e2ised isclosue +ules d the Secuities +egultio %ode, i //licble, udited icil sttemets /e/ed com/lit .ith //licble icil e/otig stdds, d othe /eiodic e/ots com/lit .ith the /o2isios o l., lo co2ets d othe egultoy euiemets

This /olicy ims to:

1 o2ide the guidig /ici/les to esue /otectio o ceditos9 ights

 To idetiy the duties o es/osible de/tmets i /otectig the ights o ceditos

This /olicy shll co2e the documettio, e/otig d disclosue euiemets to /omote ts/ecy o the /otectio o the ights o ceditos o 5 Summit 6oldigs, 'c (5S6'), its subsidiies d ilites

) Standing of t&e firm relative to8 a! $ndustry i2esl +obi %o/otio hs get e/uttio i the idusty o beig oe o the lgest bded cosume ood d be2ege /oduct com/ies i the hili//ies d hs  sigiict d go.ig /esece i the AS#A& mets +% is mog the hili//ies9 /ioees i the idusty 't hs bee i o/etios o o2e 0 yes sice oh 5oog.ei,  estblished i2esl

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is

the

ledig bded sc oods d !e2ege %om/y i the hili//ies +% is the ist <hili//ie  AS#A& Multitiol< d hs mged to e>/d to othe Asi mets +% lso hs  go.ig egiol /esece i the bded cosume oods segmet d hs estblished o/etios 6og

i

?og,

Thild,

Sig/oe

Mlysi,

d 8ietm

'doesi, +%

%hi,

cotiues

to

luch /oducts i ech o its itetiol mets, both om its e>istig /otolio o /oducts d bds d e. /oducts s/eciiclly omulted d bded o

the

locl

mets

'

its

most

estblished

itetiol o/etios i Thild, +% hs ttied

ledig

met

she

/ositios

i

se2el

/oduct

ctegoies   +% hs e>/ded its ech to &e. Held d Austli though the cuisitio o 5ii9s Foods,  ledig scs /lye i &e. Held ' &o2embe 014, the %om/y cuied 100 shes o &H Sc Foods 6oldigs "imited, the holdig com/y o 5ii9s Food "imited,  sc ood com/y i &e. Held, om ciic #uity tes +% lso eteed ito Loit 2etues .ith %lbee, 'c to om %lbee-+%, 'c

 ! rand name acceptance +%

hs

/o2e

tht

they

e

tilbl=e

i

muctuig .ith  stog d loyl cosume bse +% is the customes ist choice i u sc +% is the ledig bded sc ood d be2ege com/y i the hili//ies, .hich eLoys  loyl d cosistet ollo.ig om its my delighted customes $2e 40 yes o o/etio +% hs built thee stog egiol bds o2e the yes@ <c 9 ill< o sc oods, <%< o edy to di te, d <5et Tste< o

coee, .ith these bds becomig /o/ul coss the AS#A& egio +%9s ey to success is to build 2ey stog bdig /i/elie,

though



cosume-cetic

obust /oduct io2tio metig

d

.old-clss

muctuig d su//ly chi mgemet +%

.ill

cotiue to tsom itsel i lie .ith the chgig e>tel dymics i lie .ith icesig o//otuities i Asi d beyod

c! %roduction facilities and t&eir location The loctio d /oductio cilities o +% e the ollo.ig:

• •

• • • •

• • • • •

sig %ity Q oductio o lou %lb=o Q %osume 5oods, cgig d cotie, Food /oductio %etl 8isys Q %osume 5oods %etl "u=o Q Food d be2eges %ebu d Mil Q Millig /oductio &o2liches, +i=l, !ulc d !tgs Q 6og /oductio Tooto, %d Q hmceuticl !llt, Austi Q Food /oductio &oid, 'di Q Food d !e2eges !go, Thild Q %osume goods, Food /oductio t, 'doesi Q %osume goods

+% uses the mode d lge cilities com/e to othe com/y

d! #areting and distriution outlets +% hs cosistetly go. due io2tios, eecti2e eots

stog

metig

cused

+%

distibutio cm/igs

to

h2e

to

its

costt

c/bilities,

The

met

com/y9s ledeshi/

d

costt i

slty

scs, cdies, chocoltes, ced bes, d edy-todi te .hile mitiig stog /ositios i coee, biscuits d oodles Megbd c 9 ill oe oe o the most di2ese /otolios o sc ood /oducts i the hili//ies su//ot /oducts

+%

de2otes

d2etisig d

d

uthe

sigiict bdig

e>/d

to

met

e>/editues dieetite

she

both

i

to its the

hili//ies d i its o2eses mets, icludig udig o d2etisig cm/igs such s tele2isio commecils d dio d /it d2etisemets, s .ell s /omotios o e. /oduct luches by s/edig o 2ege Go its bded cosume ood di2isios et sles /e ye

The

%om/ys

bded

cosume

ood

distibuted

to

//o>imtely

114,000

hili//ies

d

sold

its

though

/oducts

outlets

diect

sles

i

e the

oce,

egiol distibutos d ide/edet busiess mges +% iteds to elge its distibutio et.o co2ege i the hili//ies by icesig the umbe o etil outlets tht its egiol sles oce d distibutos diectly se2ice

!y

de/loyig

lge

d

icilly

stoge

egiol

distibutos o2e the e>t t.o yes, +% /ls to icese the

umbe

o

outlets

se2iced

diectly

om

114,000

ccouts beig se2iced s o iscl ye 00D to 10,000 ccouts +% lso /ls to icese the /oduct ocus o its distibutio et.o by esuig tht ele2t /oducts e tgeted to.ds //o/ite etil outlets %om/y hs de2elo/ed  eecti2e tio.ide distibutio chi d sles

et.o

d2tge /imily

tht

The to

it

%om/y

belie2es sells

su/emets,

/o2ide

its

s

its

bded

.ell

s

com/etiti2e

ood

diectly

/oducts to

to/

.holesles, lge co2eiece stoes d t.o ty/es o subdistibutos, lge scle tdig com/ies d ide/edet busiess mges .hich i tu sell its /oducts to othe smll etiles d do. lie mets though the %om/ys 5d slm ogm,  io2ti2e distibutio scheme o do.scle

ccouts,

.hich

ebled

+%

hili//ies

to

solidiy its /esece i si-si stoes d goceies, eecti2ely locig out com/etitos i the cosume oods segmet

i

the

hili//ies

The

bded

cosume

ood

/oducts e geelly sold by the %om/y eithe diects om deli2ey 2s to smll etil outlets o by t2ellig slesm

to

.holesles

o

su/emets,

d

egiol

distibutos .ith deli2ey subseuetly beig udete by

thid

/ty

od

cies

iect

deli2ey

sles

e

omlly mde o csh bsis, .hile 1- to 30- dy cedit tems e e>teded to .holesles, su/emets d egiol distibutos

The

%om/y

belie2es

tht

its

em/hsis

o

metig, /oduct io2tio d ulity, d stog bd euity hs /lyed  ey ole i its success i chie2ig ledig met shes i the dieet ctegoies .hee it com/etes

e %ricing

+% is com/etiti2e eough i tems o /icig They me sue tht the /ices o thei /oducts e odble +% lso gi the loylty o the cosume by se2ig the idusty o2e 0 yes

C) %roduct 9iversification i2esl +obi %o/otio (+%) tces its oot to

1;4

.he

oude

oh

5oog.ei

di2esiied

his

tdig

com/y ito co stch /oductio (ited %o oducts) d couts

its

/oductio

o

!led

4,

the

ist

domesticlly

muctued istt coee, s its ist successul 2etue +% hs sice the e>/ded e>/oetilly d is cuetly i2ol2ed i



/letho

muctue

o

ood

elted

busiesses,

icludig

the

o bded cosume oods, hog d dy-old chic

/oductio, muctue o iml d ish eeds, glucose d 2eteiy

com/ouds,

lou

millig,

d

sug

millig

d

eiig +% hs se2el bches tht /o2ide  2iety o /oducts The !ded Food 5ou/ (!%F) is es/osible o the distibutio

o

biscuits,

bed

/oducts

The

mig,

the



di2ese

goods,

mi>

o

scs,

be2eges,

oodles

Ago-'dustil muctue

d

5ou/

chocolte,

hdles

distibutio

cdy,

d

tomto-bsed

hog

d

o

iml

/oulty eeds,

glucose d soy /oducts, d the /oductio o iml helth /oduct The %ommodities 5ou/ me.hile o/etes +%s sug d lou di2isios +% is /t o the 5 Summit (5S) coglomete .hich icludes

i

ts/ot,

hotels,

big,

telecommuictios,

/etochemicls, el estte d /o/ety de2elo/met, d ood muctuig busiesses

9) $nvestment 9iversification •

The 5oog.ei gou/ hs stuc  del to buy the emiig 71 /ecet ste i Mil #lectic %o/ held by the S

•

Miguel gou/ i2esl +obi %o/, the muctuig uit o ti/ oh 5oog.eis 5 Summit 6oldigs, is seeig sheholdes //o2l to di2esiy ito the /o.e geetio busiess

The com/y is /uttig u/  40-meg.tt biomss /lt t oe o its sug mills site This is see to com/lemet +%s sug millig busiess s it .ill be usig molsses .hich e by/oducts o its sug millig o/etios !iomss /lts geete /o.e usig /lt o iml mtte s uel ' the cse o sug mills, these /oduce lge mouts o bgsse s .ste .hich c still be used to uel the biomss /lt +% is i2estig bout U7 millio o the costuctio o  ethol /lt i Mhhuyod, &egos $ccidetl s /t o

•

the ims sug mill +% i2estig i  stte-o-the-t cogeetio

cility

i

S$&#%$

biomss-ied %ostig

/o.e

oud

SD

millio, the /o.e /lt is e>/ected to /oduce 4D meg.tts o electicity om bgsse

$$$) Analysis i2esl +obi %o/otio (+%) is oe o the lgest bded ood /oduct com/ies i the hili//ies d hs  go.ig /esece i othe AS#A& mets Ad it is listed i the hili//ie Stoc #>chge #2eyoe c i2est thei moey o the +% but they must ist study i its .oth i2estig

+% .s estblished d cotiuously se2ig cosumes sice 1;4 !sed o its e>istece o  log /eiod o time, .e c sy tht +% is /oitble (becuse o its .ide ge o

cosumes, d its dieet /oducts beig /oduce), d stble (o it hs bee estblished log time go d still go.ig to the /eset) +% is egged i  .ide ge o ood-elted busiesses, icludig the muctue d distibutio o bded cosume oods d is lso i commodities mely sug millio bd eiig d lou millig d i Ago idustil busiesses o ms mily hogs d iml eed millig d elted /oducts +% is the ledig bded sc oods d be2ege com/y i the hili//ies 't is the ist <hili//ie  AS#A& Multitiol< d hs /o2e itsel to be  tilbl=e i muctuig .ith  stog d loyl cosume bse So .e c o. omulte ides little by little egdig o the gi2e iomtio9s bo2e 't hs  get stdig i the idusty sice it hs bee i o/etios o o2e 0 yes Ad +% gi /eo/les loylty becuse o thei .ide ge o /oducts, d thei .ide d e>cellet sttegy o distibutio d metig

!ut these e oly the ist ste/ i ly=ig com/ies 't is oly the ulitti2e side d .e cot coclude yet i it is  good i2estmet o ot We c oly decide  little o .e e oly guided by some o the iomtio9s gi2e Ad bo2e ll this, .e c sy tht it is good i i2estig t +% (bsed o the iomtio9s gtheed)

$+) R3F3R3/C3S htt/:BB...uccom/hB htt/:BBboosgooglecoL/ htt/:BBLoulsu/dedu/h htt/:BBbusiessiuieet htt/:BBchi2esustcom/h htt/:BB/hilstcom

".LL$33 F..9 C.R%.RA6$./ $) C.#%A/ %R.F$L3 A) 4&en and &o- t&e company -as estalis&ed and -&o -ere  responsile for setting it up) ollibee is ouded by Fili/io-%hiese Toy T %tiog d his mily beg s  t.o-bch ice cem /lo i 1;7 t %ubo oeig hot mels d sd.iches The oigil com/y me .s olibe the M "umb e>t eomed the me olibe to olly !ee d mde the t.o .ods om  sigle me ollibee Thei success is /heomeo Fst ood /o/ulity begis 1;D0sd the /ioees o this e +y ?oc Q Mcolds d %oloel Sdes Q ?etucy Fied %hice They h2e the coce/t o Se2e time costied customes, good ulity ood, cle diig e2iomet, h2ig  lo. /ice d gi2e co2eiece to the custome Almost 1 yes .he ollibee eteed the idusty but they /idly becme successul to othe st ood tht cme ist 't .s ico/oted  100 Fili/io com/y 1;7G .ith se2e outlets to e>/loe the /ossibilities o  hmbuge coce/t 1;7; is the itoductio o S/ghetti S/ecil 1;G0, Fist T8 commecil .s luched by ollibee, %hice Loy d Fech Fies e luched d it is the

itoductio o ollibee mscot debuts The ollibee lbo Fiests itoductio .s 1;G

' 1;G4, ollibee hit the 00 millio les m, ldig i the To/ 00 hili//ie %o/otios Thei ist itetiol 2etue .s t Sig/oe by 1;G d they ledy h2e 31 stoes by 1;GD ' 1;G7, bely 10 yes i the busiess, ollibee lded ito the coutys To/ 100 %o/otios 't becme the ist hili//ie st ood chi to be the 1 billio sles m i 1;G; ' 1;;3, ollibee becme the ist ood se2ice com/y to be listed i the hili//ie Stoc #>chge d the e. Mi $ice site hs bee mo2ed to ollibee %ete !uildig i $tigs %ete, sig !y 1;;4 he got 5ee.ich o ollibee e>/sio ito the /i==-/st segmet d by the ed o the ye thee hs bee ledy 14G ollibee stoes tio.ide !y 1;; ollibee cuies chise o elice d ollibee success ully o/es stoes bod: 5um, ubi, ited Ab #mites, ?u.it, d eddh, d ?igdom o Sudi Abi !y 1;;D !y the F #ste #coomic +e2ie. ollibee hs bee cited gi s oe o the ledig com/ies i Asi h2ig cited it lst 1;;4 d o the sme ye Mys %hice .s bo lst uly 10 't is  semi-sel se2ice estut d othe ollibee subsidiy it is

lso i the sme ye o luchig o ollibees Am=ig Aloh, o/eig o ist ollibee i 6ogog d the luchig o the /oLect Mgg so s ollibee d %hiitig tol: t 6ome Aoito These /oLects mi obLecti2e .s to /otect d cotibute to the de2elo/met o the Fili/io childe !y 1;;; ollibee o/eed 0 stoes tio.ide .hich mes  totl o 30 stoes d %hee=y !co Mushoom !uge hs bee itoduced to its lie o s/ecilty buges !y 000,31 moe ollibee stoes o/eed, bigig the totl to 3G1 stoes d ollibee obtis %ho.ig Foods %o/otio, Asi !usiess Mg=ie s ollibee s the Most Admied %om/y i the hili//ies d the 3d o2e-ll i Asi, su/ssed oly by globl gits 5eel #lectic d Micosot d echig  system .ide sles o 0 billio ollibee lso cuied +ed +ibbo !esho/ o00, othe /o/ul st-ood estut i the hili//ies '00D, they cuied the Vlice .hich uthe e>/ded its /eettio i the ood se2ice idusty /ticully i the Fech cV-bey,  go.ig segmet o the hili//ie ood met

Ad util o. ollibee %o/otio is cotiuously e>/dig d they ledy cuied Mg'sl lst $ct 1;, 010 't .s thei com/etito i thei chice /oduct, but

o. it is oe o thei siste com/y 't is o. /t o ollibee Food %o/otio Amog ll the st ood chis hee i the hili//ies, the ollibee Food %o/otio is cosideed to be the most /o/ul choice mog ll the Fili/ios The ollibee Food %o/otio hs bee se2ig us .ith thei delectble collectio o st ood se2ice d cleliess oeed by ollibee is  d2tge +estuts e ot s uic s  ollibee PS+ .hich is  d2tge o ollibee h2ig  su/eio se2ice, d illy, ollibee /ices e esobly /iced tht is hs bee  /ioy 2oite

All Fili/io .ill lo2e ollibee, i  e. ollibee bch .ill be build Fili/io .it util it .ill o/e d /toi=e it The thet o substitute /oducts is cosideble "ocl steet ood d high-ed estuts om t.o eds o  ge o substitutes otetil etts ce ety bies tht .ill hide them om eteig the idusty These e the ibility to gi ccess to techology d s/ecili=ed o.-ho., bd /eeece d custome loylty, c/itl euiemets, ecoomies o scle, d sttegiclly situted distibutio chels !ut ollibee c o2ecome .ith this Ae. substitute o

ollibee /oduct .ill be hd to ete to the idusty d com/ete .ith ollibee

) 3volution of t&e company From $ce Cream %arlor to Fast Food 3mpire8 6ony 6an Cationg
 

acground  IFom modest begiigs to the to/ o the .oldJ e the .ods tht succictly sum u/ Toy T %tiogs stoy, tody /esidet d %#$ o ollibee Foods %o/otio, the biggest st ood estut chi i the hili//ies !o i  /oo mily .ho migted om south-este %hi to the hili//ies i sech o  bette lie, he becme i2ol2ed i the estut busiess om  ely ge .he his the o/eed  estut The estut becme /oitble .ith the hel/ o ll mily membes d this success ebled M %tiog to /usue  degee i chemicl egieeig i Mil

At the ge o , is/ied by  2isit to  ice cem /lt, he set out to gi his o. oothold i the estut

busiess: elyig o mily s2igs, he sei=ed  chisig chisig o//otuity  o//otuity .ith Mgoli iy 'ce %em d o/eed t.o ice cem /los ' es/ose to custome euests, he dded hot mels d sd.iches to the meu, .hich soo /o2ed  lot moe /o/ul th ice cem Thee yes lte, i 1;7G, he decided to c/itli=e o this de2elo/met, discotiued the Mgoli chise d co2eted his /los ito st ood outlets

6rademars and randing

Toy T %tiog, oude, /esidet d %#$ o ollibee Foods %o/otio (hoto: W'$BAou-8igod)

+eli=ig tht he eeded  bd me d logo o his e. busiess, M %tiog d his mily decided o usig  smilig ed bee They chose  bee becuse o its ssocitio .ith hd .o, d becuse hoey e/esets the s.eet thigs i lie The ILollyJ /ei> .s iteded to coote h//iess d eLoymet ollibee i2ested millios o /esos to egiste the IbeeJ tdem i the hili//ies d othe ey couties

6el/ed by smt metig d d2etisig sttegies, the m stuc  chod .ith the /ublic: IFom  the

cude, stge-looig bee tht o b ded to touch bc i 1;7G, ollibee d his cheey smile tody h2e become syoymous .ith  tuly Fili/io success stoy tht is o.  souce o /tiotic /ide 't is estimted tht the ollibee bd is o. .oth se2el billio /esosJ, M %tiog /oits out

ITdems icesed  lot o 2lue to ou busiessJ, he e>/lis ITo the cosume, they e/eset eithe tust i the com/y o tust i the bdXthey .ill emembe tht the bd cootes 2ey tsty ood d lso the e>/eiece, the mbice, the se2ice, d they e lso /oud to be  /t o tht bdJ

Tody, ollibee Foods %o/otio uses G /o/iety bds (icludig IollibeeJ o thei coe st ood busiess, I5ee.ichJ o thei /i== d /st chi, d I%ho.igJ o thei oietl ood outlets), o.s my tdems (icludig I!ee 6//yJ, I*umbugeJ, I%hiceLoyJ d IAm=ig AlohJ) d hs egisteed ll o its logos, some o them i se2el couties

$% $nfringements and 3nforcement

The stog ollibee bd me d its /ositi2e coottios h2e mde it  tget o ee-ides d couteeites: IWe h2e some cses .hee /eo/le .ill do othe thigs lie gmets o shoes d they cll it IollibeeJ $2eses, they .ill o/e  estut o  st ood lso clled ollibee, e2e .ith the sme d.igJ, M %tiog e/ots

%oscious o the im/otce o /otectig thei bd, ollibee Foods %o/otio ects to tdem iigemets: IWe h2e to eoce You tdemsZ /o/ely ' you do ot eoce it /o/ely, you bd imge .ill get diluted o2e timeJ, he cotiues

M %tiog is lso .e o the log-tem coseueces o couteeitig o the ecoomy d society s  .hole: I%outeeitig .ill destoy society i the log uXthis .ill hut e2eybody becuse couteeit does ot h2e the ight ulity: customes get coused by this d they e ot h//yXthe they lose coidece i the el bd d e2eythig .ill be destoyed Theeoe, o2ell the .hole society .ill lso be hutJ, he cocludes

Franc&ising

Thee e ely ,000 estuts .old.ide e/esetig the ollibee Foods %o/otio (hoto: W'$BAou-8igod) ollibee Foods %o/otio elies o  chisig model o the e>/loittio o bout hl o its outlets i the hili//ies ' ode to /otect the com/ys high ulity d se2ice stdds, /otetil chisees h2e to coom to  s/eciic /oile (sel-di2e ete/eeus .ith good mgemet sills, good commuity stdig d e>cellet ite/esol sills)

Successul chisig //licts udego  3-moth ull time $/etios Tiig ogm (!$T) t  desigted tiig estut, su//lemeted .ith othe /ogms tht .ill eich the chisee9s mgemet d lyticl sills eeded i the o/etio o the estut

6o.e2e, su//ot o chisees does ot ed thee: ollibee /o2ides d2ice o d ssistce .ith estut lyout d desig, eui/met s/eciictios, uitue d i>tues, d costuctio mgemet Field /esoel edes cosultig se2ices oce the outlets e o/etiol %eti2e d2etisig d metig /ogms,

/oduct de2elo/met, muctuig d logistics cilities /o2ide uthe su//ot to chisee estuts

usiness Results ollibee is the most /o/ul st ood estut i the hili//ies ) Sice its estblishmet t the ed o the 1;70s, ollibee Foods %o/otio hs go. s/ectcully: tody, ollibee is the ledig st ood chi i the hili//ies .ith o2e 0 met she d hudeds o estuts ll o2e the couty The com/ys /ublic listig t the hili//ie Stoc #>chge i 1;;3 bodeed its c/itl d llo.ed o the cuisitio o the I5ee.ichJ /i== d /st chi i 1;;4 $the mLo cuisitios iclude the %hiese st ood chi *oghe.g (i 004) d the %ho.ig oietl ood outlets (i 000) The com/y is lso /eset i !uei usslm, %hi, 6og ?og (SA+ o %hi), 'doesi, Sudi Abi, the ited Ab #mites, the ited Sttes d 8iet &m !y 00, the gou/ /ls to oughly double the umbe o estuts to 4,000 outlets .old.ide ollibees busiess success elies o its smt bdig sttegy, com/lemeted by stog custome oiettio, su/eio meu lie-u/,

io2ti2e e. /oducts, ceti2e metig /ogms d eiciet muctuig d logistics cilities

'  ecet su2ey, the ollibee gou/ .s the oly hili//ie com/y tht mde it to the to/ 0 o Asis best em/loyes list, ig 1D th ollibee Foods %o/otio ed thid mog Asis most dmied com/ies i 000 d .s cited s umbe oe i o2ell ledeshi/ mog the to/ te hili//ie com/ies ' 004, M %tiog ecei2ed the #st C *oug Wold #te/eeu A.d Though the ollibee Foudtio, the com/y hs estblished  istitutioli=ed mechism o gi2ig bc to the commuity though /oLects i the es o eductio, ledeshi/ de2elo/met, li2elihood, e2iomet, d housig d disste elie

#aring t&eir 6erritory in t&e %&ilippines and aroad  otectig thei bds though tiol d itetiol tdem egisttio hs bee istumetl i ollibees emble success Q .ithout  esily ecogi=ble bd ssocited .ith highest ulity d custome se2ice stdds, it .ould h2e bee diicult to /e2il i the e>temely com/etiti2e st ood met I'tellectul /o/ety is becomig 2ey im/ott becuse

you eed to distiguish yousel om the othes Q its  2ey com/etiti2e .old Yi .hichZ you eed to cete somethig uiueJ, cocludes M %tiog

C) 9irectors and #anagers uig the Aul Stocholdes9 Meetig o the ollibee Foods %o/otio, the stocholdes elected the ollo.ig s the com/y9s iectos o the ye 01:

1 Toy T %tiog

 #esto Tmtiog

3 Willim T tiog

4 Ag %ho Sit

 Atoio %hu oe #g

D +et %hie ustice Atemiogib

7 Feli/e ! Aloso ('de/edet iecto)

G Moico cob ('de/edet iecto)

; %e=  %osig ('de/edet iecto)

At the ogi=tiol meetig tht immeditely ollo.ed the stocholdes meetig, the ollo.ig e elected s oices o the %om/y:

Toy T %tiog - s esidet d %hie #>ecuti2e $ice (%#$) #esto Tmtiog - s Tesue d %hie $/etig $ice Willim T tiog - %o/ote Secety The ollo.ig .ee lso //oited s membes o the !od %ommittees:

3=ecutive Committee Toy T %tiog #esto Tmtiog Willim T tiog Feli/e ! Aloso +et %hie ustice Atemiogib

 /omination Committee +et %hie ustice Atemiogib - 6ed #esto Tmtiog - Membe

Ag %ho Sit - Membe

Compensation Committee Feli/e ! Aloso - 6ed +et %hie ustice Atemiogib - Membe #esto Tmtiog - Membe

 Audit Committee Moico cob - 6ed Feli/e ! Aloso - Membe Atoio %hu oe #g - Membe Willim T tiogQ Membe

Finance Committee %i=  %osig - 6ed Moico cob - Membe Willim T tiog - Membe

U/93RS6A/9$/ 673 CUL6UR3  A) #anagement %rinciple, Style and %ractices

ollibee Foods %o/otio (F%) es/ouses the /ici/le o shed 2lue i its co/ote socil es/osibility (%S+) cti2ities

As  com/y i the ood idusty, F% though

its %S+ m, the ollibee Foudtio, im/lemets /ogms tht ddess ccess to eductio, li2elihood de2elo/met, ledeshi/ de2elo/met d disste es/ose, issues tht e lso o ele2ce to the com/ys coe busiess

ollibee Foudtios !usog, "usog, Tlio (!"T) bigs togethe locl eductio steholdes d F% em/loyee 2olutees to mitigte huge d udeouishmet, .idely ttibuted cuses o school ttedce declie d do/-out mog lo.e gde /u/ils ily luch is /o2ided to belo. oml .eight-o-ge 5des 1 C  /u/ils .ith ood /e/ed by /et gou/s ollo.ig meus de2elo/ed by ollibee Foudtio The /ets lso tted semis o ood sety, cooig, helth d utitio Fo S* 00G-00;, !"T is beig im/lemeted i 4 /ublic elemety schools beeitig 1,G /u/il beeiciies u/ils9 e>hibit med im/o2emets i .eight d ttedce .hile thei /ets sho. im/o2ed budgetig d meu /e/tio sills s .ell s o.ledge o utitio

Aside om eductio, ollibee Foudtio lso hs iititi2es i li2elihood, ledeshi/ de2elo/met d /o2ides ssistce i times o clmities

ollibee Foods %o/otios (IF%J o the I%om/yJ) coe busiess is the de2elo/met, o/etio d chisig o its uic-se2ice estut bds 't oes  .ide 2iety o odble d delicious dishes d get tstig ood /e/ed to stisy customes o ll ges d om ll .ls o lie

Food ulity, se2ice, /ice-2lue eltioshi/, stoe loctio d mbiece, d eiciet o/etios cotiue to be citicl elemets o the %om/ys success i the uicse2ice estut idusty

S ollibee, bid g syJ (At ollibee, We omote 6//iess)This is the /o/ul slog o the udis/uted to/ st ood chi i the hili//ies, .hich is the lgshi/ mog the othe

ollibee Food %o/otio  subsidiies (the

est beig %ho.ig, 5ee.ich i==, Mg'sl d +ed +ibbo)

The ty/icl Fili/io childhood .ould ot be com/lete .ithout e>/eiecig ollibee d its l2os While Ag Mulch hd /o/uli=ed the I%hice oyJ to -.hole-othe

le2el (it .s ledy /etty good beoe he cm/iged o it), the ollibee meu is lso illed .ith iteestig /icigs The S/ghetti is  uiue Fili/io cococtio Q .e /ee ou S/ghetti s.eet, o some eso Ad ollibee comes .ith hotdog bites, too[

Ad the desset sectio is home to some elly good /ies Thei ech-Mgo combo is esily the most /o/ul

Fmily y is lso usully  ollibee dy My Fili/io milies, es/ecilly those .ho belog i the middle clss, too/ to the eest ollibee bch te ttedig the 6oly Mss o Sudys,  /ctice tht hs bee /ssed o to e. geetios

'deed, this ioy ood tit hs goe  log .y sice it ist stted its Louey ollibees sigle getest ccom/lishmet is tht it hs thooughly domited the com/etitio mog multitiol st-ood chis lie Mcolds, Wedys d !uge ?ig (i the hili//ies)

The ist ollibee estut .s locted beside the Pue=o !idge, e Pui/o Met 't .s i  tiy 30 sue-mete s/ce, .hich hd bee /e2iously bdoed, d .s theeoe lo.-cost The sigbod .s mde out o

/ly.ood, humbly /ited d hd oe /u/ose Q to sy tht this .s ollibee

Alog the side.l otig the estut .s  be, .ho eticed /sses-by to ty thei hmbuges o meely 7 esos ( locl com/etito, To/icl 6ut, sold hmbuges o 40 esos)

The ollo.ig yes, ollibee bched out i  gdul me !ut i 1;7G, Mcolds o/eed t the coe o %M +ecto d Moyt i Mils i2esity !elt ' 1;7;, ollibee o/eed its ist chised estut t +ouillo, Pui/o, Mil, .hich .s  lmost e>ct e/lic o the Mcolds estut

' the comig yes, the t.o ought tit o tt i o/eig moe chises, .ith ollibee .iig out e2etully, mybe, becuse o lo.e chise ee, d h2e o oylties to be /id to  mothe com/y

' 1;G4, ollibee eteed the to/ 00 hili//ie %o/otios, d to//ed the locl ood idusty 't o/eed its ist o2eses stoe i Ti. i 1;GD ' 1;;, its sles eched 34 billio esos, d it e>/ded o2eses ggessi2ely

' 00, its e2eues eed 7 billio eso m This ye, its oude, Toy T %tiog .s med IMgemet M o the *eJ o the hili//ies, .ith stoes ledy umbeig bout ;00 Mg'sls 70 euity .s bought by ollibee %o/otio i 010 o 3 billio esos

To stegthe its hold i the st-ood ield i the hili//ies, it gobbled d bought di2esiied com/etitos, Q %ho.ig .ith 377 chises, 5ee.ich i== .ith 3D, +ed +ibbo !esho/ .ith 1;4, elices G bches, Moge/es 4 d Mg'sls 00

&o., it hs moe th ,000 stoes, d still e>/dig t  bis /hse !ut still, its the !ee tht emis the ce o this Fili/io Food #m/ie

) S6A/9$/ .F 673 F$R# R3LA6$+3 6.8 a)$ndustry Sice its ice/tio s  co/otio i the lte 70s, ollibee hs see stog icil go.th As see i the icil dt /o2ided, ollibees sles d e2eue hs bee o the ise i the ecet yes As sho. i thei e2eues,  mout o U1; billio /esos i 1;;G .s gdully icesed to UD billio /esos i 004, d idictig stog go.th d bility to com/ete i the

ledy dese st ood met loclly d itetiolly The ogi=tio goig /ublic o the hili//ie Stoc #>chge i 1;;3 cts s  oudtio o the /id e>/sio o its stoes loclly d itetiolly

.rgani*ational 9esign The decetli=tio o its o/etios i 000 ebles the ogi=tio to mge thei busiess o  mgeble scle Fou utoomous egiol busiess uits delig .ith hum esouces, dmiisttio, ice d et.o de2elo/met ebled the com/y to ocus thei o/etios o  co/ote le2el d llo.ig the +!s to chie2e gete eiciecy

%&ysical As o ue 00, ollibee hs  totl o 100 stoes loclly d itetiolly A di2esiictio o ood /oducts ebled the ogi=tio to ech out to  2iety o customes d mig them s  met lede i the hili//ies ue to the geog/hicl stuctue o the couty, they e the oly st ood chi tht o/eted tio.ide, d i some loctios ce o othe com/etitios

Ris #anagement The cuisitio o se2el e. bds such s 5ee.ich, %ho.ig d elice llo. the di2esiictio o its /oducts ito dieet met iches 't /o2ed to be  hedge gist do.tus d com/etitio d s see i the cse study, most o the cuisitios e the lede i thei es/ecti2e met segmet

%roduct 9evelopment The mi d. o customes ito ollibees estuts is the //el o locl styled ood cteed to Fili/ios /eeeces This is e2idet s they e costtly ddig its /oduct ge o to/ o thei ledy /o/ul 2ouites meu, i ode to llo. its locl customes to e>/eiece the tditiol Fili/io .y o h2ig locl l2oued tste i  comotble settig

 #areting ollibee /oLects itsel s beig close to Fili/io milies s com/ed to its com/etitos Thee is ledy .ides/ed .eess loclly tht ollibee is  locl Fili/io estblishmet, .hich i tu //eled to the mss /o/ultio .hom elt moe comotble i  mili settig

Tiloig its meu to.ds the Fili/io tste, it /ositioed itsel s the 2ouite destitio o mily outigs s com/ed to its simil com/etitos

.utound Logistics 'di2idul +!s e ble to chie2e gete eiciecy i the deli2ey o /oducts d se2ices, uice cooditio, d moe timely decisio mig due to this decetli=ig

 #areting and Sales otyig itsel s  st-ood outlet o high-ulity t  odble /ice s/eciiclly tiloed o the Fili/ios, the chi hs //eled to /tiotic locls With its itoductio o i-stoe /ly cti2ities o childe d  cst o bd mscots, it eches d //els to the childe d is e2idetly moe /o/ul th its eest com/etitos +ecogi=ig tht  oml Fili/io milys .eeeds e omlly ese2ed o childe, the /e2iously metioed cti2ities dd 2lue to ollibee9s /ositio s the /ime destitios o mily outigs

Service The Fili/io s/eig ce. //els to the locls moe th its com/etitos .hee thei ce. s/oe i #glish 't is lso i ollibees commitmet tht this se2ice com/oet o thei busiess to thei customes must be st d t the sme time beig couteous

%rocurement !eig  mLo /lye i the Fst-ood idusty i hili//ies, they costtly eLoyed ecoomies o scle i tems o etil site selectio, /ocuemet, muctuig, distibutio, d metig le2els u2ilble to most idusty /lyes

7uman Resource #anagement To ttct the ight tlet d etiig o 2luble sts, the com/estio d beeits /cge t ollibee is the highest i the hili//ie st-ood idusty #m/loyees e to udego com/ehesi2e tiig /ogms bsed o udelyig stdds Mges lso ecei2ed ogoig tiig i the ltest o/etios systems d /eo/lemgemet sills $//otuities e 2ilble o ce. membes to d2ce ito  mgemet ole i the ogi=tio

Firm $nfrastructure ecetli=ig its ogi=tio ito 4 utoomous busiess uits, .hich coes/oded to the couty9s mLo geog/hicl mets This ebles the 6ed $ice to ocus its o/etios o the ey metig, ice, estut systems d egieeig uctios d ct s  su//ot d d2ice to the +!s

usiness Fundamentals Analysis

3conomics The ucetities o com/etitio om oeig /lyes s .ell s do.tus i s/eciic met iches e omi/eset i ou cuet ecoomic tue $the ucetities lso come i the om o icil cisis i the egio s .ell s i the couty it is o/etig i

Stae&olders Thee gou/s o steholdes o ollibee e idetiied .ho e ected by the sttegic outcomes d discussed belo.

Capital #aret Stae&olders ollibees c/itl met steholdes iclude its sheholdes .hom h2e  diect iteest i the com/y Sice goig /ublic o the hili//ie Stoc #>chge,

ollibee hd bee ble to t/ o this ey esouce to e>/d its hoi=o .ithi d beyod the locl hili//ies met The im/otce o the c/itl met steholdes is lso e2idet i the go.ig o/etios o ollibee o2e the yes

%roduct #aret Stae&olders ollibees /oduct met steholdes iclude its customes loclly d globlly, s .ell s su//lies o its ood souces ollibee hs bee ble to c/tue the met she o the st ood goig customes due to its udestdig o locls /eeeces d it ulity d com/etiti2e /icig o its ood A //o>imte 1 millio customes te t ollibees stoes dily, mig them  im/ott steholde i this ctegoy The lge dily euiemet o ood esouces hd ebled ollibee to eLoy bette /ices though ecoomies o scle om its su//lies

.rgani*ational Stae&olders ollibees ogi=tiol steholdes iclude its lge umbe o em/loyees ude its co/otio (D,00 em/loyees s o 004), its mges d its chisees ' mitiig its high stdds, ollibees com/estio,

beeits d com/ehesi2e tiig /ogms esue they h2e the best em/loyees tht e 2ilble

) rand /ame Acceptance The umbe oe st ood chi i the hili//ies is ot  globl git 'ts ollibee, the coutys 2ey o. home-go. st-ood bd tht ist o/eed its doos i 1;7G With G47 stoes i the hili//ies tody d 111 outlets bod (30 i the ited Sttes, 0 i 8ietm, 1 i !uei, 10 i Sudi Abi, thee ech i Pt d ?u.it, t.o i Sig/oe d oe i 6og ?og), ollibee hs stedily ise to become  multitiol itsel The Lolly git bee .eig his oge cot .ith  blc bo. tie d ches ht is oe o the most eduig icos o ioys memoies o childhood 't hs lmost become  ite o /ssge to chse te the ollibee mscot o h2e some /ictues te .ith ollibee t oe /oit i ou li2es $eig  cultul bled o Weste d Fili/io comot ood i  co2eiet st ood settig, the ollo.ig ollibee hs gied o2e the yes ose om the bds udestdig o Fili/ios d the locl /lte ' ollibees olly S/ghetti .ee oe dy decled the tiol s/ghetti o the hili//ies, thee .ould liely be

.e o//ositio olly S/ghettis ull-bodied suce c/tues the s.eetess Fili/ios lie i thei s/ghetti suce 't is this s.eet tste tht distiguishes the Fili/io style s/ghetti om ll othes oud the .old !ut .ht hs elly estblished ollibee s  household me is its %hiceLoy, the I langhapsarapJ ied chice o .hich ollibees slog seems to be mde, becuse thee is o othe .y to descibe it %hiceLoy is ollibees timeless clssic 't is  guteed 2ouite tht //els coss hili//ie demog/hics\icludig /egt .ome, iteestigly\d its bsece om the meu hs bee o. to icite mio iots With the olly 6otdog, lbo Fiest, *umbuge d othe bestselles, ollibee bested its lge coute/ts i the hili//ies om the 2ey begiig The st-ood chis success is t oe hd geeted by its langhapsarap meu, but its styig /o.e i the idusty d i the hets o Fili/ios is  electio o the com/y behid ollibee Though the yes, ollibee hs /omoted  milyoieted //och i the .o e2iomet d i its bd 2lues The oigil ollibee estut .s ouded by ete/eeu Toy T, .ho estblished d  the busiess

.ith his mily Wht the ge. ito the ollibee Foods %o/otio (F%) is tody the /et com/y tht lso cosists o othe st ood bds %ho.ig, 5ee.ich, +ed +ibbo, Mg'sl, !uge ?ig d ood busiess /teshi/s .ith estuts i %hi ollibee, the bd d the co/otio, is o.  globl ete/ise tht bets .ith  locl het While the meu emis uthetic to the .y Fili/ios lie thei ied chice, s/ghetti, ies o buge, it is lso the Fili/io coe 2lues .hich mo2e ollibee tht esues its loge2ity d ledeshi/ i the st ood idusty The 2lue o mily, ist d oemost, becuse mily tes ce o ech othe, su//ots oe othe ' lie s i busiess, /eo/le .ho tet ech othe lie mily e>ecise es/ect, she tust d 2lue tem.o +ecetly, ollibee cti2ted  systems u/gde tht su//osedly cost the co/otio 00 millio i odes to im/o2e the st ood chis busiess /ocesses The ioy .s tht the iitil migtio to the e. system disu/ted the su//ly chi, d the u2ilbility o 2ouite bestselles led to  u/o i Meto Mil es/ite the iss, these e 2etues  isig globl bd eeds to udete to me it outside o its home couty

ollibee hs log sice estoed its oml o/etios %ombied .ith ll the bds ude F%, ollibee is the lgest d umbe oe st ood chi i the hili//ies 't is the idusty lede becuse it stys tue to its oots, d to its ioy mily

c) %roduction facilities and t&eir Location ollibee Foods %o/otio (F%) .s ico/oted o uy G, 1;7G F%9s /ici/l busiess is the de2elo/met, o/etio, d chisig o uic-se2ice estut ude the tde me <ollibee< ' the hili//ies, F% lso hs s subsidiies, Fesh C Fmous Foods, 'c, .hich de2elo/s d o/etes, d chises uic-se2ice estuts ude the tde mes <%ho.ig<, <5ee.ich<, <elice<,
the su2i2ig etity The mege llo.ed F% to be moe eiciet i soucig, ecei2ig, muctuig, .ehousig, d distibutig . mteils i its stoes The commissies h2e  collecti2e c/city to se2ice G00 stoes tio.ide !y the ed o 00;, F% hd  totl o DGD stoes tio.ide, o .hich 3 e chised d 331 e com/yo.ed Thee .ee lso 7 ollibee stoes o2eses, icludig the ited Sttes, 8ietm, 6og ?og, !uei, ubi, 5um, Si/, d eddh

d) #areting and 9istriution ollibee Foods %o/otio, the hili//ies lgest st ood chi, .ted to itegte the distibutio systems o ou o its bds ude oe oo They o/eed thei e. distibutio cete i ]ue %ity i My 01 d commissioed SS' S%6A#F#+ hili//ies to desig  /icig d sotig system o its dy .ehouse

The istlltio icludes  thee-tie /icig to.e eui//ed .ith /llet d cto li2e stoge , .hee o/eishble su//lies, such s utesils d codimets, e stoed o dis/tch These items e tgged .ith b codes d ts/oted o  co2eyo system, .hee it is sced

d soted by stoe, beoe beig deli2eed to F%s my stoes coss the couty

With the e. system eblig ste /icig d de/loymet o the com/y, it hs become moe es/osi2e to the eeds o its stoes The system lso ided F%s /ls to cosolidte multi/le su//ly chis ito oe cility i  cost-eecti2e .y, lyig the goud.o o the com/ys e>/sio /ls

Fo moe /oLect iomtio, /oLect s/eciictios d moe /oLect /ictues, /lese do.lod %se Study i F o the ight hd side The %se Study is i F omt d eeds Adobe +ede to 2ie.

e) %ricing Sice, ollibee Foods %o/otio is oe o the highly ecogi=ed st ood chis ollibee sets its /ice t  cce/tble /ice tht  buye is .illig to buy d is 2ey com/etiti2e com/ed .ith othe st ood chis

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The combo mels o ollibee e che/e by 10 com/ed

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to Mcolds As o the %hice, though the /ice o ollibee is che/e the Mco but thei %hice si=e is bigge

C) %roduct 9iversification "olliee %&ilippines is oe o the most /o/ul hili//ie chises ) $igilly o/eed s  Mgoli 'ce %em /lo t %ubo i 1;7, the me .s oigilly clled ollibee ' 1;7G, the busiess ocus shited om ice cem to hmbuges ollibee studies sho.ed  much lge met .s .itig to get t//ed "umb becme Toy Ts ist busiess d mgemet meto Ate chgig the me to ollibee, the ollibee mscot .s is/ied by locl d oeig childes boos e2elo/ed by  mgemet cosultt med, Muel % "umb .oig o Toy T %tiog e>t ceted the /oduct mes I*umbugeJ s .ell s the me I%hiceLoyJ "te Toy Toy mde My "umb i chge o de2elo/ig the chise The stoes .ee e-desiged, the se2ice tsomed ito  ull selse2ice, st ood o/etio .ith di2e thus The ist hedutes .s locted o Mi St i %ubo, Pue=o %ity "umb de2elo/ed  log-tem metig sttegy, listig u/  umbe o cosume /omotios d tic buildig schemes .hile mitiig itel stegths euied by Toy T We .ot be goig i detil o ho. ollibee hili//ies e>ctly .o We e hee to ly=e the eso d /ici/le o ollibee hili//ies success

 Ac'uisitions in t&e %&ilippines The co/otio is ctully o. s "olliee Foods

Corporation $h d i you thought tht "olliee .s the oly st ood chi o/eted by this co/otio, boy e you i o  su/ise To me, it seems lie F% o.s  mLoity ste i ll o the Fili/io st ood iches o you e2e et t %ho. ?ig^ ' o. ' lo2e the hlo-hlo thee, but did you o. tht i the ye 000, F% cuied %ho.ig[ Thts ight@ ll the delicious oietl style st ood om %ho. ?ig is o/eted t  high le2el by the sme co/otio s ollibee $h d thts ot ll Seems lie ollibee Foods %o/otio hs the ide tht di2esiictio is ey to its utue, d ' thi theye o the ight tc F% lso bought out the /o/ul st ood /i== estut o. s 5ee.ich i== Additiolly, i 00, +ed +ibbo !ey becme /t o F% ?ee/ig .ith the big theme, F% cuied the Fech ce d bey o. s eli2ece The di2isio o F% tht hdles busiess iside o the hili//ies is o. s ollibee hili//ies

 Ac'uisitions outside of t&e %&ilippines F% hs holdigs i se2el othe Asi couties icludig %hi d Ti. Thees  %hiese st ood chi med *oghe ?ig i mild %hi (bsed i

Shghi) tht is o.ed d o/eted by F% Aothe %hiese estut chi med 6og=hugyu .s cuied o Se/tembe 1, 007 This chi hs 33 loctios i !eiLig d .s /uchsed o the mout o S U0 millio Wo.[ ' sue .s su/ised .he ' leed bout ll those cuisitios 'ts iteestig to ote tht .he ' .l ito y o the chis bo2e tht theye o.ed d o/eted by the sme co/otio 'm gld tht ollibee hs  get tc ecod .ith the Fili/io commuity d tht i dditio to the m=ig "olliee %&ilippines@ they c oe us  2iety o dieet oods gig om /i==, oietl ood, d coee d bed goods

9) $nvestment 9iversification As  i2esto, you should o. the /itlls o lo2ig .ht you o. too much As much s ' .ould te ollibees %hiceLoy to be my N1 chice-o-ll-time (yes, it bets %oloel Sdes secet eci/e i my /esol tste buds), ollibee Food %o/ (S#: F%) is too ichly 2lued by i2estos d tdes lie i todys met Me o miste tht ' bsolutely lo2e the com/y, its mgemet, d es/ecilly its meu ' ct, ' desy my gdids .ould /obbly be etig the sme chice s ' do o. 6o.e2e, o the sheholde, ollibee might Lust u/set

you /otolio i you bought it lst .ee o e2e tody e2e s it hs goe do. om its -.ee highs 't is tht e>/esi2e

6&e Lesson of +alue As  buye, /ice is .ht you o o2e While tdes .oy bout the /ice, i2estos should .oy bout the 2lue 't is 2lue tht dicttes ho. much you e .illig to o o2e o  she o ollibee Ay se /eso .ould ot e2e o out moe th h/, 000 o hed/hoes d yet ' /oy to/-doll o lgshi/s costig moe th  Mc!oo o 't hs little 2lue o you but it hs cosideble 2lue o me #2e .he it hs sigiictly declied om its .ee high o h/41 /e she, ollibee Foods is still e>/esi2e t its lst tde /ice o h/ 1DG /e she 6o.e2e, you .ill ot o. o tht util you h2e ed this ticle Fudmetlists .ho belie2e tht eig is the N1 eso o she /ice mo2emet o. !ut i you ty to chec you techicl, it .ot get you y.hee

$$$)A/ALS$S ollibee my be the tios 2ouite st ood chi but the humble bee .e2e l.ys o. is moe th meets the eye o

e2ey idi2idul ollibee hs its o. i she o lies su/ises to e2eyoe %ustomes e loyl to ollibee becuse they ceted the most /eo/les choice tste@ they .ee highly ecogi=ed becuse ollibee is oe o the best com/etiti2e com/y .hich the /eo/le .ill /toi=e thei /oducts becuse it sets the /ices t  che/ /ice but c stisy the customes 'sted lso o tgetig e. customes i ode to go. thei busiess, thee is  s/eciic tget met ledy .hich is the ids o the .hole mily i the met idusty F% hs its .ide ge distibutio, d o this suely they gi customes loylty tht tigges the /oitbility o the busiess !ut des/ite o the iomtio9s gi2e, it is ot yet eough to coclude .hethe it is  good i2estmet o ot !sed o its bcgoud it hs  good ecod, thus .e c sy tht it is stble, d /oitble $ the /esos behid its success, .e c sy tht they e e/utble bsed o thei bcgoud F% is  good i2estmet bsed oly to the iomtio9s gtheed, but .e still eed to o. thei Putitti2e lysis to be ccutely cocluded

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iteests i lcoholic d o-lcoholic be2eges, ood d /cgig The be.eies o/eted s the bee di2isio o SM% util 007 #ly success led to the e>/sio o the busiess d the !etto decided to ico/ote his be.ey $ ue D, 1G;3,

the

com/y .s

ico/oted

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c/itl o h/ 1G0,000Those omig the co/otio .ee o edo blo +o>s y %sto, o 5o=lo Tuso y ti]o, o 8icete  Fede= y %sto, o Albio 5oyeeche, !eito

"egd y Tuso, the heis o o Mio !ue2etu y %huid d !etto +o>s .s //oited mge, /lyig  /omiet ole i the de2elo/met o the im 6e .s the cti2e membe o the im util 1G;D S Miguel !e.ey, 'c (SM%) .s ico/oted o uly D,

007

s



subsidiy

o

SM%

d

the

domestic

bee

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o

S

Miguel

!e.ig 'tetiol "td (SM!'") om SM% The cuisitio o SM!'"

ebled

SM!

to chie2e

ull itegtio

o S

Miguels domestic d itetiol bee busiesses SM! becme listed i the hili//ie Stoc #>chge o &o2embe , 1;4G

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

sigle

be.ey

i

the

hili//ies ude " Fbic de %e2e= de S Miguel .s Southest Asis ist be.ey, .hich /oduced d bottled .ht .ould e2etully become oe o the best-sellig bees i the egio d mog the to/ bee bds i the .old S Miguel sice e>/ded to /oduce

 .ide ge o

/o/ul be2ege, ood d /cgig /oducts, .hich h2e Q o o2e  cetuy Q cteed to geetios o cosumes e2e chgig tstes They gi2e e2ey custome d cosume

they touch ccess to the best they c oe Q .hethe i tems o ulity, o odbility o choice SM! ehce the 2lue o thei estblished busiesses by sti2ig to chie2e e2e gete eiciecies d o/etiol e>cellece They lso stegthe thei bds by im/o2ig /oduct 2isibility d tgetig es .hee thee is oom o go.th i met she The com/y see sttegic

cuisitio

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to

the

coutys

de2elo/met !ode distibutio

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o

d

thei

idustil

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to

itegte

' dditio, they e /usuig

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d

distibutio

cilities o it9s both thei estblished d e.ly cuied busiesses

to

geete

dditiol

cost

s2igs

d

eiciecy S /ositio

Miguel i

iteds

the

to

hili//ies

uthe by

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le2egig

thei the

met

com/ys

icil esouces d e>/eiece to llo. it to cotiue to itoduce e. /oducts d se2ices otetil i2estmets to de2elo/

e>istig

busiesses

iclude

buildig

dditiol

se2ice d mico-illig sttios, costuctig e. /o.e /lts,

e>/dig

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/o.e

geetio

/otolio

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ledig

/ositios

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thei

es/ecti2e

mets

d

idusties C) 9irectors and #anagers $nsiders at San #iguel Corporation (S#C!

 /ame

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O%him o S

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Miguel cgig

esidet

S/ecilists ic Oesidet o Mido %ougted Fibebod 'c Oesidet o S Miguel cgig S/ecilists 'c Oesidet o S Miguel *mmu cgig %o/otio %los !eb !Sc,

OMgig iecto

M!A, MSc

o S Miguel

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'tetiol "imited O%him o S Miguel !e.ig 'tetiol "imited Fcisco AleLo '''

Oesidet o S

it

Miguel ue Foods

esidet

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Oiecto

it

Oesidet o S

esidet

Miguel Shi//ig C "ightege %o/otio

.t&er oard #emers on oard   /ame #stelito Medo= AA, ""! (), ""M (62d)

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Mgito Te2es

Membe o the !od o iectos

']igo Hobel

Membe o the !od o iectos

"eo Al2e=

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Wisto 5ci

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Ale>de obldo

Membe o the !od o iectos

oselito %m/os 

Membe o the !od o iectos

+eyto uo M%",

Membe o the !od o iectos

""M, ""! 6ocio +mos

Membe o the !od o iectos

$$) U/93RS6A/9$/ 673 CUL6UR3  A) #anagement principles, styles and practices S Miguel %o/otio i dheece /ici/les d

best /ctices,

the

%him

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mgemet

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!od

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.ith

o

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its

tusted

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The

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its

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cotols

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dissemite

/ctices

timely

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to

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sheholdes timeliess

i

SM% the

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.ith

the

%om/lice

$ice

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SM%

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)Standing of t&e firm relative to8 a) $ndustry S Miguel %o/otio (SM% o

the

et

%om/y),

togethe .ith its subsidiies (collecti2ely eeed to s the SM% 5ou/), is oe o the lgest d most di2esiied coglometes i the hili//ies by met c/itli=tio d

totl ssets, .ith sles ccoutig o //o>imtely D o the hili//ie 5 i 013 $igilly ouded i 1G;0 s  sigle be.ey i the hili//ies, SM% hs tsomed itsel om  met-ledig be2eges, ood d /cgig busiess .ith  globlly ecogi=ed bee bd, ito  di2esiied coglomete .ith met-ledig busiesses d i2estmets i

the

uel

d

oil,

eegy,

istuctue,

telecommuictios, miig, big d ilie idusties SM% o.s  /otolio o com/ies tht is tightly ite.o2e ito the ecoomic bic o its home met, beeitig om d cotibutig to, the de2elo/met d ecoomic /ogess o the hili//ies The commo shes o SM% .ee listed o the hili//ie Stoc #>chge o &o2embe , 1;4G  ) rand name acceptance S Miguel !e.ey 'c (SM!) is the lgest /oduce o bee i the hili//ies, .ith ie out o te bee dies /eeig its bds As the bee busiess ge. t  stedy /ce, it /o2ided the oudtio om .hich SM% e>/ded its iteests om ood, be2ege d /cgig, to /o.e, oil, ilie biggest

d

istuctue

Tody,

di2esiied

SM%

is

the

couty9s

coglomete

Fom  sigle /oduct /oduced i  sigle be.ey i 1G;0, SM! hs de2elo/ed  y o /o/ul bee /oducts

o2e the /st cetuy, cteig to the distict tstes d /eeeces o bee dies coss ll segmets d mets i the hili//ies Tody, it cies  /otolio o te stog d /o/ul bee bds: S Mig "ight, +ed 6ose !ee, %e2e= &eg, 5old #gle !ee, S Miguel Stog 'ce, S Miguel Su/e y, S Miguel emium All-Mlt !ee, S Miguel Fl2oued !ee, S Mig Heo, d its lgshi/ bd, S

Miguel

le

ilse

These

/oducts

cy

distict

ttibutes tht cte to ll segmets o the hili//ie bee met d h2e eed itetiol ecogitio o ulity, .iig

i

the

/estigious

Mode

'tetiol

Selectio

lmost o  ul bsis, mog othe .ds d cittios

c) %roduction Facilities and Locations !e.eies steel,

tody

e

lthough

mde

/edomitly

2essels

decoti2e co//e clddig o



ote

o stiless h2e

ostlgic loo



Stiless

steel hs my 2oble chcteistics tht me it  .ellsuited mteil o be.ig eui/met

S Miguel %o/otio /lts /eom myid lyses o thei

bees

o

ulity

cotol

/u/oses

Shi/mets

o

igediets e ly=ed to coect o 2itios Sm/les e

/ulled t lmost e2ey

ste/ d

tested o

Yo>ygeZ

cotet, u.ted micobil iectios, d othe bee-gig

com/ouds A e/esetti2e sm/le o the iished /oduct ote is stoed o moths o com/iso, .he com/lits e ecei2ed

S Miguel9s muctuig o/etios e>ted beyod its home

met

Thild,

to

6og

Mlysi

d

?og,

%hi,

Austli@

'doesi,

d

its

8ietm,

/oducts

e

e>/oted to D0 mets oud the .old

The %om/y hs si> /oductio cilities sttegiclly locted coss the hili//ies to esue /oduct 2ilbility

d

eshess

The

si>

/oductio

cilities

i

the

hili//ies e locted t m/g, Meto Mil, "gu, &egos $ccidetl, %ebu d 2o

d) #areting and 9istriution .utlets Fom  /otolio /es/ecti2e, S Miguels e. busiess 2etues

icese

the

com/ys

ecuig

e2eue

d

e

com/ys

coe

busiesses,

e>/osue

highly

to

/oitble

syegistic

eLoyig

.ith

the

com/lemetities

i

scle, mets, geog/hy, techology d . mteils At the

co/ote

distibutio

le2el, the et.o

si=e d

o/etios

scle

.ill

o S

/o2ide

Miguels

sigiict

ecoomies o scle d syegies i /oductio, esech d de2elo/met, distibutio, mgemet

d metig

Scle

lso leds to substtil le2ege d bgiig /o.e .ith su//lies

d

etiles,



d2tge

tht

SM%

cuetly

eLoys ' tems o immedite distibutio chels, etos et.o o o2e 1,700 se2ice sttios d co2eiece stoes hs

ledy

bodeed

the

oot/it

o

SM%s

ood

d

be2ege /oducts Ad the combied distibutio et.o .ill lso

be

citicl

i

the

oll-out

o

e.

/oducts

d

se2ices SM%s o.eshi/ o toll ods d egiol i/ots .ould uthe e>/d this et.o, /o2idig 2ious etil d

d2etisig

o/tios

i

ioss

d

est

sto/s

The

istuctue secto .ould lso esult i cilly busiess o//otuities o SM% busiesses s its toll .y /oLects /o2ide the ight o ist eusl to use the ld tht lls .ithi the sco/e o the /oLect Syegies e lso budt o the /o.e busiess d S Miguels thee col mies, .ith the mies /o2idig . mteil i/ut to the /o.e /lts

d

uel

o

the

com/ys

othe

o-col

/o.e

/lts C)%roduct 9iversification Fo the logest time, the S Miguel %o/otio (S Miguel .s the model o the ocused IeltedJ di2esiie i the

hili//ies

To

bode

its

bee

d

sot

di

busiesses, it cuied " Tode istilles (lte emed 5ieb,

the

lgest

sellig

hd

liuo

bd

i

the

hili//ies !eyod the bee d the be2eges busiess, the com/y itegted bc.ds by eteig ito the bottlemig s .ell othe /cgig mteils busiesses The,

it

.et

beyod

its

be2ege

busiesses

by

di2esiyig

uthe i the ood lie, ddig ice cem, mil d diy d /ocessed met /oducts The cuisitio o ueood om Ayl i 001 uthe bodeed its ood lie to iclude lou 'ts lgest d most /ublici=ed sttegic mo2e .s, ho.e2e,

the

cuisitio

i

000

o

&tiol

Foods,

the

lgest diy com/y i Austli The cuisitio though, cosideed  2ey costly oe, .s .ell .ithi its histoicl tust s  di2esiied ood d be2ege com/y Fo its bee busiess, it ggessi2ely

/usued

teitoil di2esiictio i the 1;;0s 't estblished i %hi,

8ietm,

Thild,

d

'doesi

d

e>/ded

its

o/etios i 6og ?og 't lso cuied the Austli bee be.e  !og d So The bee lie .s sid to be S Miguels s/ehed o the ety o its othe ood lies ito oeig mets i the egio til the e. milleium, S Miguel he.ed closely to its decdes ‐old /ostue o di2esiyig .ithi be2ege ields

!egiig i

the ood d

007, ho.e2e, S Miguels

di2esiictio eots too  dieet diectio ' the secod hl o 007, it .s oe o the /ici/l cotedes o the cuisitio o #egy e2elo/met %o/otio (#%), the go2emets lgest geotheml stem /oduce ' dditio, it cuied the cotollig iteest

i

eto %o/otio, the lgest oil eie d distibuto i

 the hili//ies'ts iteest i the /o.e distibutio de egy ield .ssid to di2esiy ito biouel /oductio (eg , ethol) i the utue Sice the e. milleium,

the

S

hs

eteed

outside

its

Miguel

uelted

%o/otio

busiesses



e.

mgemet the

o

ollo.ig

tditiol

ood

d be2ege busiesses: (1) Telecommuictios(eg, "ibety Telecoms)@ () !ig (eg, !

o

%ommece)@

(3) #lecticity geetio d distibutio (eg, SM% 5lobl o.e 6oldigs, S Miguel #egy, Melco)@ (4)$il eiig d distibutio (eg, eto %o/otio)@ ()Miig(eg, gum Ago Miels, !o= #egy +esouce s, Sult#egy)@(D)Ai Ts/ot(eghili//ie Ailies)@ d (7) ublic istuctue costuctio d mgemet (eg, i2esl "+T, TsAie, T"#) $$$) A/ALS$S S Miguel %o/otio .s stted duig the ye 1G;0 by o #iue Mi !etto de *c= y #steb d util o. the com/y e>ist The com/y hs ledy 1 yes i busiess 't is stble eough becuse the com/y .s ledy lst log i the busiess .old d they2e doe my thigs i

the

.old

o



good

busiess

o/etio,

o

the

bettemet o the com/y d thee .ill be the /obbility tht

it

.ill

cotiue

i

the

utue

o

#iue

Mi

!etto de *c= y #steb .s  .ell-o. busiessm i

Mil d is es/osible eough i estblishig S Miguel %o/otio SM% .s listed i the hili//ie Stoc #>chge o &o2embe , 1;4G SM% is  stble busiess, hs  .ell o. oude d es/osible, d .s listed i the S# ttcts its i2esto to i2est i SM% This .ill icese the demd o stocs o SM%, icese i stoc /ice, icese i /oit d .ill lso icese the sles o the com/y !eig listed i the S#

the

com/y

mes

it legl

becuse

they2e

/ss the

ecessy documets eeded o thei good busiess o/etio The com/y e2ol2ed though e>/sio d mig ulity /oducts thoughout the yes #>/sio o busiess ctes moe customes, tht .ill icese thei /oductio, icese lso to thei /oit d it .ill lso led  icese o thei

sles

$e

o

thei

sttegies

is

ehcig

thei

met /ositio i the hili//ies by le2egig com/ys icil esouces d e>/eiece to llo. it to cotiue to e. /oducts d se2ices This sttegy o SM% ttcts moe i2estos d customes to /toi=e thei /oduct The %hie #>ecuti2e $ice o SM% is #dudo %oLugco 

hs

bee

clled

Ioe

o

the

coutys

ledig

busiessmeJ 6e se2es s the %hie #>ecuti2e $ice o SM% sice uly 7, 1;;G 6e studied t S !ed %ollege, e "

Slle i2esity 6e is  es/osible m d cedible i hdlig busiesses The othe bod membes o SM% e lso es/osible eough d cedible i thei /ositios 62ig  cedible, ttct

es/osible moe

d

i2estos

good bod

o diectos o SM%

They

lso

e

eiciet

d

eecti2eess i such  .y i mig  good decisio o the bettemet o the com/y d lso it c be see tht thee e  lot o /ogms d /oLects tht they e mes d thee e  lot o im/o2emets tht they me sice its estblishmet The com/y esues tht ll /ublic iomtio is beig dissemited They lso iomed chges bout the eig esult, bod chges d sheholdigs o diectos .hich is good o the i2estos so tht they .ill be ully iomed bout the com/y d it c lso hel/ them i decidig .hethe to i2est i the com/y o ot SM% oeed thei /oducts tio.ide They h2e lso /oductio

cilities

tio.ide

.hich

is

good

o

the

busiess i ode to /oduce moe /oducts They esue tht thei /oducts d se2ices .ill meet the demd o thei customes This is good o the busiess i ode to stisy moe customes, icese /oductio, icese thei /oit,

icese sles d .ill icese lso the 2lue o the im .hich is good o the i2estos !d me o SM% .s .idely cce/ted by the customes o

highly

ecogi=ed

it

%ustomes

/toi=e

the

SM%

/oducts 62ig  cce/ted bd me o SM% cetes the loylty o thei customes, moe /otetil buyes, icese i

demd

icese

o i

thei

/oit,

/oducts, d

icese

icese

the

i

thei

stbility

sles, o

the

busiess They dot ocus solely i be2eges but lso i ood, /cgig, /o/eties, oil d eiig d metig, /o.e, istuctue

d

othe

busiesses This

is good

o

the

com/y i to become stble d i cse o h2ig  loss i the be2eges idusty thee .ould be othe busiesses tht .ill be giig

$+)

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