Professional Documents
Culture Documents
Universal Robina Corporation Strategic Plan
Universal Robina Corporation Strategic Plan
Universal Robina Corporation Strategic Plan
Antalan, Allia
Delos Santos, Ma. Lhorena
Macaspac, Iris Cadet
Morales, Chrizel
Palisoc, Anna May
December 2020
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TABLE OF CONTENTS
Title Page. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Acknowledgment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
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Goals
Specification
Tasks
Responsibility
B. STAGE 2: Planning and Organizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Schedule
Budget
Resources
Risk
Staffing
C. STAGE 3: Implementing or Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Status Report
Changes
Quality
Forecast
D. STAGE 4: Closing (Evaluation and Control) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Delivery of Project Report and Output
Redeployment of Resources
Post Project Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Summary of Objectives
Time
Costs
ACKNOWLEDGMENT
The researchers would like to show their great appreciation to all the people who
extended help and gave support in fulfilling this study.
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Firstly, to the Almighty God, for giving the researchers the knowledge and wisdom.
He bestowed upon them the strength, patience, and perseverance they need upon
completing this paper.
To the researchers' friends who gave them a tap on the back whenever they are
close to falling apart and block mates who also motivated them to finish this paper.
Finally, to the researchers’ families, for showing their endless love, care, support,
and encouragement that helped them finish this study. Also, for being the researchers'
inspiration to accomplish the requirement.
LIST OF TABLES
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Table 3: TOWS Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Table 4: Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Table 5: Breakdown of Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
LIST OF FIGURES
Figure 3: How we provide the value and How we communicate the value . . . . . . . . . . . .
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CURRENT STATUS OF
THE COMPANY
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Company Historical Background
The Universal Robina Corporation was founded by Mr. John Gokongwei, Jr. in 1954.
Before it was known as the URC that we all know today, Mr. Gokongwei Jr. started first with
a milling plant for glucose and cornstarch under the name of Universal Corn Products
(UCP). The business was good for a period of time. However, when other similar
multinational companies were established in the country, it became a difficulty for them.
That is when Mr. Gokongwei Jr. diversified into producing and marketing his own branded
consumer foods in order to achieve success.
With that, Blend 45 was the first locally created coffee blend and their first product
under the Consolidated Food Corporation in 1961. In 1963, the company also started with
poultry products and this is also the time when the Gokongwei business adopts vertical
integration. Later, Robichem Laboratories were built in order to provide veterinary
assistance to farm business. Furthermore, the Robina Farms also entered hog business in
the late 70’s.
In 1966, this is when the Universal Robina Corporation (URC) was established. They
created snack products under the brand – Jack ‘n Jill such as Chippy, Chiz Curls and Potato
Chips. They also successfully produced other snack products which are known as market
leaders like Maxx, Pretzels, and Piattos. After years, the company had acquired and
developed more. Aside from commodities business, through URC Packaging, the company
also entered plastic business during the late ‘90s.
As time goes by, the Universal Robina Corporation became more diversified and all
the different companies are now organized under the URC umbrella which is divided into
three focused groups. These are the Branded Consumer Food Group that includes BCFG
Domestic and International; the Agro-Industrial Group that includes Universal Corn
Products, Robina Farms, and Robichem; and the Commodities Group, for sugar and flour
divisions.
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Current Organization’s Vision and Mission
VISION
The vision of Universal Robina Corporation is to be the best Philippine food and
beverage company, with a powerful presence throughout the ASEAN region, carrying a wide
portfolio of delightful brands of exceptional quality and value, equipped with efficient systems
and motivated people. The URC is committed in making lives a truly fun experience.
MISSION
Universal Robina Corporation (URC) is one of the largest branded food product
companies in the Philippines and has a growing presence in other ASEAN markets.
The Universal Robina Corporation has different target markets in every focused
groups that they have. In Branded Consumer Food Group (BCFG), their target market are
young and millennial consumers since they offer on-the-go and on-trend snacks foods and
beverages that can be consumed by these potential clients. In Agro-Industrial Group (AIG),
the company’s target markets are families, hotels, and restaurants because what they offer
are farm products. In Commodity Foods Group, the company’s target market are families
since some of the products that they offer are flour and pasta.
Competitors
With regard to their competitors, the URC competitors are those companies that
offer similar products or alternatives to the market. According to an article by Owler, the
primary competitors of URC are San Miguel PureFoods, Dole Food Company, Inc., and Fresh
Del Monte. Other top competitors of Universal Robina Corporation industry are: Monde
Nissin, Hero Group, Juhayna, Almarai, Food Empire Holdings, Sun-Rype Products, and
Garuda Food.
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SWOT Analysis
SWOT Analysis
Internal Environment
Strengths Weaknesses
Good Governance: The corporation is Operational Performance: When it comes
headed by good management and the to foreign segment, the company has a
leaders also set a good tone in building a weak operational performance.
winning culture.
Debt Ratio: Majority of the Company’s debt
Employees: The employees of the company obligations are denominated in foreign
are well-trained to do their tasks. The currencies.
personnel can perform their job on time to
meet their target production. Outdated Technology: The company lacks
proprietary technology and patents, which
Products: The company has wide variety of can be a barrier to compete against rivals.
products that they offer to the public. They
also have snack foods such as that are
leading the market Maxx, Pretzels, and
Piattos.
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well-respected and profitable company in
the Philippines.
Table 1: SWOT Analysis: Internal Environment
SWOT Analysis
External Environment
Opportunities Threats
Economic Growth: The food industry is Technological Advancement: Technology
one of the fastest-growing sectors globally, has evolved and becomes part of the
helpful in attaining economic growth and production process. It is one of the most
development. significant drivers of future growth and the
company's efficiency.
Growth rates and Profitability: There is
an expected annual growth rate of 6.5% by Consumers’ Purchasing Power: There is
the year 2020-2025 in the Food and Income inequality all over the places. This
Beverages segment. situation significantly affects the
purchasing power and consumption of
Global Markets: There is a high demand consumers.
for food products in all countries.
TOWS Matrix
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TOWS Matrix
Strengths Weaknesses
S7 and O3
Since the company has
already established a strong
market position in the food
industry, it may use this as a
great strategy and
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opportunity to have an
expansion in different
countries to take advantage
in introducing their offered
products to new geographic
areas. This action may be a
good strategy to attain
market development.
Threats ST Strategy WT Strategy
S3, S4, and T2 W1 and T2
T1: Technological The company must not be The company must diverse
Advancement complacent for having loyal unrelated products that
customers. To have a better would not conform with
T2: Consumers’ Purchasing market penetration, the customers’ preferences.
Power entity must continuously
improve their products and
consider offering cheaper
prices of their products
compare to its competitors
to keep their customers’
loyalty and address the
issue in terms of
consumers’ purchasing
power differences. In
addition, it must
continuously invest on its
employees and increase
more employees if possible,
to gain tax exemptions from
the government.
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S7 and T1
The company must also
invest on technological
breakthroughs to further
improve and increase their
market advantage.
Table 3: TOWS Matrix
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PLAN YOUR STRATEGY
GOALS
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To become the top corporation in the industry of snack foods that provides a wide
variety of products that are loved by people of different ages in order to be known not just
in ASEAN region but worldwide as well. To also use its influence through different
programs that will help consumers as part of doing its responsibility to humanity.
OBJECTIVES
Strategies Formulation
MARKET PENETRATION
This strategy entails the improvement of marketing and sales promotion in order to
acquire a bigger share in the market. Through market penetration, engagement to the
market using existing products will be enhanced. This strategy can help the company
increase its market share and gain a competitive advantage over other companies.
PRODUCT DEVELOPMENT
Through product development, the company will be able to persuade the market to
consume and purchase their products which will increase the sales of the company. This
strategy can also help in innovating new products that can help prevent substitute
products to enter the market. This strategy also entails diversification and offering new set
of products that will be beneficial to the company.
MARKET DEVELOPMENT
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The company has to expand and offer products that are new and innovative in order
for people to consume and purchase their products. Strategies are needed to be developed
to prevent getting affected by existing hindrances in the market. This could be an
advantage especially if the company wants to become leading in the snack food industry.
1. Competitive Rivalry
Universal Robina Corporation’s competitive rivalry status is indicated as
strong. The Philippines is dominating when it comes to food manufacturing with
over the top twenty (20) top players. Each of them is contributing to the total 40.1
percent total output in manufacturing. Competition in the food and beverage
industry remains intense. The most concerning factors on the food industry’s
competition are product quality, brand recognition, brand loyalty, service,
marketing, advertising, price, availability of products and the ability to get its
product widely distributed. Since there are numerous key players in the food
industry, the target market is one of the most crucial factors to consider when
evaluating the significant fluctuation that includes their movements, preferences,
and ad developments, such as the current trends from time to time. With the rival
firms’ brand positioning, they must develop and introduce brands from time to time.
However, this would also depend on the marketing and advertising of these firms.
Most firms spend on marketing strategies by widening their distribution channels,
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such as retailers and wholesalers. Nowadays, there is a growing development
among these distribution channels. Hence, the firms are also watchful of their
competitive distribution channels as there is an adverse effect on both ends.
To overcome this concerning issue and sustain the Universal Robina
Corporation's competitive advantage, the company should produce better quality
products. Also, it should invest in product branding to easily be recognized by many.
It must also continuously improve its service, marketing, advertising, price, product
availability, and distribution.
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much easier process. This action increases producers' options in acquiring raw
material, thereby reducing the bargaining power of suppliers.
The company must consider having the right and fixed suppliers to maintain
the same quality products and reduce costs on availing their needed supplies.
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dominating the consumers' buying decisions. Most manufacturers make their
products and even the substitute ones available among the distribution channels.
Producers diversify their distribution channels to make their products readily
available to the consumers. They widen their networks and grab the latest
technological breakthroughs in order to make products readily available.
It must be noted that although there are substitutes for most of the products
offered by food companies, some consumers also search for good quality products
and their benefits. Therefore, food companies should consider both the quality of
the products they offer and assure that they are worth the price.
OPERATIONS
1. Cost reduction
The production should be as efficient as possible without making the quality
of the products sacrifice. The companies should ensure that the resources and
materials being used are maximized and minimal amounts or none should be
wasted. This is to ensure that the companies’ costs are utilized properly. In addition,
unwanted and unnecessary costs will be prevented.
2. Improvement of Operations
The products being offered should be produced using the most beneficial
way. The company must know what production techniques or strategies should be
applied in order to maximize the full potential of production. This may include mass
production in a short span of time which may result to higher efficiency and
effectiveness. This strategy also entails the improvement of machines in which the
company may consider repairing or purchasing a new one.
FINANCE OR ACCOUNTING
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Accounting and Finance Department
1. Cost-benefit approach
The company should always keep in mind that the benefits that they will get
in a certain expenditure should be greater than the cost that they incurred. Through
this, they will be able to get the most out of their expenses. The company should also
make sure that the expenses are effectively and efficiently managed.
MARKETING
Marketing Department
2. Product labelling
The labels of the products offered by the company can affect the perception
of the consumers. As a response, the company should develop labels that can
differentiate and will give them a competitive advantage.
HUMAN RESOURCES
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2. Stability of tenure
The skilled and well-trained staff and employees should be maintained by the
company because newly hired individuals require trainings that the old staff and
employees have been through. This is also a response to the security of the currents
staff and employees’ tenure. They will be motivated to do their jobs knowing that
they are secured and will not lose their jobs easily.
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THE COMPANY’S ACTION PLAN
Implementation of Strategies
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Figure 1: Universal Robina Corporation’s Implementation of Strategies
PROJECT SELECTION
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Stage 1: Defining
Strategy
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Figure 3: How we provide the value and How we communicate the value
Goals
Universal Robina has marked a strong topline and profit growth for the past years of
operation. URC continues to uphold its vision to make the company a leading food &
beverage sustainable enterprise from the Philippines. With the growing population of
health-conscious Filipinos, the goal of the company is to provide a healthier option in terms
of poultry products. URC’s Agro-Industry (AIG) group is among the biggest and most
profitable agro-industrial food businesses in the country today with its own Research and
Development arm, exploring advancements in animal feeds, breeding, and farming
technology.
Specification
The pioneering conglomerate firms, Universal Corn Products, Robina Farms Piggery
Business Unit, Robina Farms Poultry Business Unit, and Robichem Laboratories are now
headquartered in AIG. Under this division, the Robina Farm has been a supplier to large
hotels, groceries, restaurant chains, and kitchens at home for the premium selection of
pork meats and table eggs. From its current rearing practice, the company aims to solidify
more its sustainable ‘’farm to fork’’ practices to ensure better-controlled quality assurance
to its meat and poultry products. Aside from the ‘’no hormone, no antibiotic residue’’ policy
applied to the farm, the need for outside time and comfortable housing shall be employed.
Organic products are labeled whether the farm where the products are grown is adhering
to the protocols for organic standards.
Tasks
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4. Make a budget proposal for the overall funding needed in the improvement project.
5. Acquire the needed materials in re-constructing the farm facilities including the new
equipment, materials, and workers for the project.
6. Employ a monitoring team that would oversee the whole re-construction process.
7. Conduct an evaluation model that could track the implementation and outputs of the
improvement project.
Responsibility
1. Management
2. Production
The accounting and finance committee is the one responsible for the
safekeeping and proper utilization of the budget with adherence to the financial
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plan, all the cash flows during the completion of the project. The committee shall monitor
all the expenses and keeping of documents necessary to prove the financing
activities undertaken that comprise the creation and monitoring of accountability
policies.
4. Human Resource
5. Marketing
Schedule
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DATE SPECIFIC COURSE OF ACTIONS
Month 1 Planning the project.
Designation of working committees
Month 2 Designing the new layout
Submitting budget proposal
Month 3 Acquisition of the needed materials
and equipment
Hiring of working personnel for the
reconstruction
Month 4 Working on promotion and
advertisement materials.
Reconstruction Proper
Month 5 Evaluation process
Table 4: Schedule
Budget
The budget comprises all the cost of materials and equipment needed in
reconstructing the farm facilities, paying off the workers, and the advertisement and
promotion costs. The machine and equipment will be handled by the construction company
hired along with the project engineers. The cost is in contract between the managements
and agreed to construct the three chicken poultry houses located in the San Miguel, Bulacan
farm of URC. The other expenses allocation serves as the contingency fund for the other
unspecified expenses.
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Total: P5,000,000
Table 5: Breakdown of Budget
Resources
o The materials and equipment needed to execute the construction will be provided by
the construction company hired through a contract. The construction will be sphere
headed by the project engineers included in the contract.
o The human capital or the manual laborers that will work in the site were all hired by
the human resource committee. They shall be screened thoroughly and must have
passed all the qualifications set by the HR committee.
o The advertisement and promotional materials will be done by the in-house
marketing committee. From the brainstorming and conceptualizing of ideas up to
the final drafting of publicity materials will be done by the marketing committee.
o The budget to be utilized in the project will be coming from the company’s working
capital and developmental fund.
Risk
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The possible risk that the project will encounter is not meeting the deadline. The
construction of the said farm facilities may not be completed on the target date because of
underlying factors such as weather and laborers productivity. Since the construction will
be on the supervision of the contracted company, the production committee shall ensure
that there is efficiency among the construction team. Strict monitoring shall be imposed
each day so to meet the target level of completion on the facilities. The risk of not meeting
the deadline could cause additional expenses and delay the promotion dates. This could
also result to slow productivity and investment return to the company.
Staffing
The selected project of the company shall comprise 150 labor workers for the
construction of farm facilities. There would also be engineers coming from the contracted
company that would sphere head the project. The production team also that manages and
monitors the overall work process. There are also marketing team that would document
the construction for company files and promotional materials. The accounting and finance
committee also that manages the budget for the project.
Stage 3: Implementing/Executing
Status Report
A status report should be the responsibility of the management, which was updated
from time to time to monitor the progress and changes made, if any, on the course of action.
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Month 3 Acquisition of the needed COMPLETED
materials and equipment
The highlighted section in the status report represents the activity that was added to
the planned schedule as deemed necessary by the company.
Changes
During the implementation of the project, the project manager decided conduct the
quality and safety control, prolonging the reconstruction proper a month longer due to the
defects detected and repairs needed. The quality control ensures the conformance to the
original design, as the existing design aims to achieve the best output of the project. While
safety control ensures the safeness of the facility. Defects in the facility can result in a very
large cost if not corrected during the construction.
Quality
In the execution of the project, the Management plays an important role in the
assessment and implementation, making sure that everything is correctly done and aligned
with the plan and the timeline set to achieve the goal and objectives made.
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The changes made ensures the quality of the output. Although a planned schedule
was made, errors along the execution of a project are unavoidable and may arise
unexpectedly. The assurance of the quality of the project may add cost to the
implementation as minor defects may require a reconstruction or repairs but it will lessen
the costs to be incurred due to faulty equipment and facility in the future. The quality and
safety assurance are obtained from the inspectors and quality personnel purposely hired
for the service.
Forecast
The success of the project will be determined by the future sales turnover. The
company have benefitted from the project once they were able to reach a wider target
market. The determinant of the project’s success will only be the revenue from the sales of
the company to evaluate the effectiveness of the strategy employed. An increase in sales
resulting to higher revenues and eventually the return of investment is expected by the
company.
The evaluation is the process which will critically examine the strategy and project
implemented and how well it has been progressing.
Designation of working
committees
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Designing the new layout
Submitting budget
proposal
Hiring of working
personnel for the
reconstruction
Working on promotion
and advertisement
materials.
Reconstruction Proper
Evaluation process
Redeployment of Resources
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There are two possible scenarios after the implementation of the project. First, the
project is successful and the second would be if the project is not successful. If the project is
successful, objectives were achieved, and goals were attained. The company would increase
their sales as they were able to reach a wider market. In this scenario, the management
shall use any excess budget in other departments that requires further attention. In the
instance that the project has failed, and objectives and goals were not attained, the
management shall evaluate the project on where it has gone wrong and determine if the
project shall be re-designed or discontinued.
POST-PROJECT REVIEW
Upon achieving the formulated objectives and goals of this project, the company was
able to not only increase its sales and revenue, but also developed a good relationship to its
consumers. The company was able to produce a different and healthier variation of product
resulting to a bigger market. This was done by responding to the trends and consumer’s
needs of a healthier option. The success of this project is measured on how well the
consumers respond on the strategy implemented.
After the effective implementation of the project, the company will figure out how to
maintain the benefits derived from the project. The company shall continue to monitor the
trends and consumer’s demands for continues development of the product and maintain
good consumer relationship.
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6. Employ a monitoring team that would oversee the whole re-construction process.
7. Conduct an evaluation model that could track the implementation and outputs of the
improvement project.
Time
Due to the changes, the addition of conducting a quality and safety control in the
implementation stage of the project made the reconstruction proper extended by one more
month, making the actual timeline inconsistent with the five-month target timeline for the
project that was set by the management.
Costs
The actual costs incurred in implementing the project are shown below:
The costs of implementing the project are still within the price range of the
formulated budget despite the additional expenses incurred. The materials needed for the
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repairs due to the defects detected was already available in excess to the materials bought
for the building of the facility.
REFERENCES
JG SUMMIT TEAM. (2018). From Farm To Fork: How URC-AIG Is Making Its Way Into Every
Filipino Home. Retrieved from Farm To Fork With Robina Agri Partners
(jgsummit.com.ph)
Quality Control and Safety During Construction – Universal Robina Corporation. (n.d.).
Retrieved from Project Management for Construction: Quality Control and Safety
During Construction (cmu.edu)
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Universal Robina Corporation. (n.d.). Retrieved December 08, 2020, from
https://www.jgsummit.com.ph/business-units/universal-robina-corporation
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