CASE 1.

THE ORIGINAL BUKO PIE

I. Point of View

This group takes the point of view of the owner of the Orient Bakeshop.

II. Case Context

This case is about buko pie business which originally came from Laguna. Buko pie
is considered as Filipino Dessert and is made from young coconut meat with
sweetened condensed milk and custard filling. Orient (Original Enterpise)
Bakeshop is the pioneer of buko pie in the Philippines which was established in
1965 and its first store was located at Anos, Laguna. Orient Bakeshop became
famous through of the quality of its buko pie which is made from a 40-day-old
coconuts harvested in Laguna and Batangas. Orient Bakeshop face a long queue
of customers everyday just to grab its products. As the owner of the business, it’s
an advantage, however, some customers find it very inconvenient especially to
the customers from different cities. Upon considering the opinion of some
customers, Orient decided to open its second branch in 2013 which is located in
Sta. Rosa-Tagaytay Road.

Tagaytay branch also did its own baking in-house to lessen its
transportation cost and also to give its customer the same quality as its first branch
offers. The average daily sales of the main branch ranging from 500 to 1000 buko
pies, 500 for non-peak season and 1000 for peak season, while the Tagaytay
branch sells about 500 boxes for peak and 300 boxes for non-peak season.
However, queues also happen in Tagaytay branch, but its sales only reach the 70%
sales of the main branch.

Regardless of being the pioneer of buko pie in the Philippines, Orient also
has big competitors. The (1) Collete’s Buko Pie with 40 branches across Laguna,
Tagaytay, Batangas and Cebu; (2) Lety’s Buko Pie with 4 branches in Laguna and
produces frozen buko pies which could be exported around the world and El Mare
Buko pie with just 1 branch in Laguna. Since Orient’s competitors offer a different
strategy when it comes to their products, they are wondering for effective growth
options that they can use to have competitive advantage over its competitors.

III. Statement of the Problem

Through the years, Orient Bakeshop has been so undecided about the
growth of its business. Its main branch being the pioneer became the source of
strength for the business. Between the sales of its main branch and the Tagaytay
branch, still, the main branch has a lot more of sales than the Tagaytay branch. So
 the thought of maintaining the Tagaytay branch was a big question to the
business. Also, Orient is still wondering about venturing its business to frozen pies
that could be exported around the world and would result to high sales.

IV. Framework of Analysis

Five P’s of Strategy

Plan
To settle with just one branch and retain being a family owned business

Pattern
Since then Orient Bakeshop make its buko pies with natural ingredients, hand-made, no
preservatives and standard quality of young coconuts. This serves as an effective strategy all
through the years.

Position
Orient offers quality products with natural ingredients, no preservatives, hand-made and
standard quality of young coconut.

Perspective
Competitors use a blast freezing technologies in making frozen pies which is available for
exportation, through that strategy it is believed that exportation can increase its sales. However,
in the point of view of Orient, having a fresh and quality product is the effective strategy not the
exportation.

Ploy
Having limited branch serves as a ploy over competitors because long queues always
happen in its branch and it can be very attractive to the potential customers.

Mintzberg’s Implemented Strategy

Intended Strategy
Orient Bakeshop wanted to be the choice of the customers not just an option. Its plan is
to have a one branch and serve all the customers with quality products made with natural
ingredients, hand-made, no preservatives and standard quality of young coconut.

Deliberate Strategy
From being a plan of serving quality products made with natural ingredients, hand-made,
no preservatives and standard quality of young coconut to customers, it became a fruition.

Unrealized Strategy
 Through the opinions and suggestions of customer, Orient push through its second branch
and put it in Sta.Rosa, Tagaytay. So its intended plan to have one branch became the unrealized
strategy of Orient Bakeshop.

Emergent Strategy
Orient’s second branch is the result of opinions and suggestions of the customers, and
the owner realized that having a second branch would eventually result to more sales.

Realized Strategy
The combination of having a second branch and serving quality products to customers
became the effective strategy of Orient, even though it’s not what the business intended to do,
yet, it works.

SWOT

Strengths

-Pioneer
-Natural ingredients with no preservatives
-Freshly baked
-Standard quality of young coconuts
-Along the side of national highway

Opportunities

-More branches
-Delivery around its vicinity
-Tagaytay branch expansion

Weakness

-Rapidly spoiled products

-Long queues
-Limited branches
-Limited supply of coconut

Threats

-Branches of its competitors

-Exportation strategy of competitors
-Shortage of supplies
 V. Situational Analysis

Strength
Orient Bakeshop is well known as the pioneer of buko pie in the Philippines. In fact, the
business faces a long queue of customers everyday. Orient is also known for having a quality buko
pies which is made with natural ingredients, hand-made, no preservatives and standard quality
of young coconut. Also, being located along the side of national highway, it could easily attract
customers especially the tourist.

Weaknesses
Orient Bakeshop’s main weakness is due to limited branches which is located in Laguna
and Tagaytay. Due to the limited branches, customers from different provinces experience
inconveniency on how to get a box of buko pie. Also, Orient requires about 4 to 5 fresh coconuts
worth of coconut meat for each box of buko pie and the coconuts are coming from Batangas and
Laguna. If ever the quality of coconut doesn’t meet the standard, the vendor gets it back–if that’s
the case, its supply is limited and could result to shortage. Lastly, its product is rapidly spoiled
since it is made with fresh coconuts.

Opportunities
Having a lot of branches means having a large target market that could result to high
sales. This opportunity may serve as an effective strategy in achieving its financial goals.

Threats
Since Orient Bakeshop has a lot of competitors who have wide distribution of network, it
seems to be a threat for the business. Collete’s and Lety’s Buko Pies have been aggressive in
terms of pursuing its market mainly by opening branches nationwide. The threat from the
competitors is relevant to Orient Bakeshop considering the behavior of customers in terms of
immediate convenience as the competitors have various network. Coconut is the main ingredient
in making a buko pie, and lately, the demand for coconuts have been increasing, however, the
supply is not enough for the demand so eventually it would result to shortage.

VI. Alternative Courses of Action

Since Orient Bakeshop offers quality buko pies made natural ingredients, hand-
made, no preservatives and standard quality of young coconut, venturing to frozen
pies may be contradicting to the business as for its product is served freshly bake di
ko na alam I expound pota. Orient Bakeshop could offer a different variety of products
like coconut juice and coffee which could be a good combination with buko pie.

VII. Recommendation
Orient Bakeshop must focus on formulating strategies in a way that could defeat its
competitors. Since Orient Bakeshop is known for being the pioneer and serving quality
buko pies, growth is one way of achieving its financial goals.