Professional Documents
Culture Documents
Strategic Plan Outline
Strategic Plan Outline
Strategic Plan Outline
MODULE THREE
Monde Nissin Corporation is a forerunner in the Philippine food manufacturing industry, with a collection of iconic and well-known brands. The Asia-
Pacific Branded Food and Beverages (APAC BFB Business) and the close alternative business (Meat Alternative Business), which includes the
production, marketing, and distribution of the Quorn and Cauldron meat alternatives products, are the Group's two main businesses.
Monde Nissin Corporation has been giving Filipino consumers quality products and excellent service since 1979. Our company has consistently been
among the top corporations in the Philippines and is considered as one of the industry leaders in both noodles and biscuit product categories. Our brand
names include Nissin, Monde, Sky Flakes, Fita amongst others for the biscuits category, and Lucky Me Instant Noodles, Lucky Me! Supreme Bowls
In addition, the APAC BFB Business is divided into three categories: instant noodles, biscuits, and other items such as drinks, baked goods, and
culinary aids. According to Nielsen (2020), the APAC BFB Business ranked first in retail market volume in the Philippines in instant noodles and biscuits,
as well as oyster sauce and yogurt drinks, subcategories of the Others product segment. The Group's instant noodles, biscuits, yogurt drinks, and oyster
sauce accounted for 68.0 %, 30.5 %, 73.2 %, and 56.0 % of retail revenue market share in the Philippines in 2020, respectively (2020, Nielsen).
Significantly, Lucky Me for instant noodles, SkyFlakes, Fita, Nissin, and M.Y. San Grahams for biscuits, Mama Sita's for cooking aids, and Dutch Mill for
yogurt drinks are examples of flagship brands that contribute to the APAC BFB Business' market-leading position. On the other hand, according to the
OC&C survey, Quorn Foods is the market leader in the meat alternatives market in the United Kingdom, with Quorn and Cauldron being the No. 1 and
No. 3 brands with 28 % and % supermarket retail market share by volume in 2020.
Monde Nissin aspires to boost people's and the planet's well-being, as well as to establish long-term strategies for food sustainability. These
fundamental principles are reflected in their product advancements and operations in order to provide societal value and contribute to long-term growth.
For instance, in an unprecedented attempt to encourage well-being, the company introduced Lucky Me! Wet pouch and cups, which have no artificial
preservatives. To minimize palm oil content, it also invested in the innovation and introduction of the first high-speed airflow technology in one of its
Lucky Me! product lines. MNC purchased Quorn Foods in 2015, which manages the Meat Alternative Business with sustainability at its core. In 2019,
MNC also invested in NAMZ Pte. Ltd., a Singapore-based food science company dedicated to developing a healthier world and people. The group has
also initiated policies to better utilize resources, drive toward zero-waste-to-nature activities, and shift to a low-carbon economy. What's more, the
company considered its Meat Alternative Business to be a game-changing advancement, with the mycoprotein technology acting as a sustainable
source of protein. According to a Carbon Trust (2018) report, the carbon, ground, and water footprints of mycoprotein-based Quorn Mince are just 7%,
11%, and 8% of those of beef, collectively. Similarly, the carbon, soil, and water footprints of mycoprotein-based Quorn Pieces are just 29%, 36%, and
The APAC BFB Business is managed by MNC, its entirely or majority-owned subsidiaries, joint ventures, and formed alliances with other renowned
FMCG players. The group operates its Meat Alternative Business through Quorn Foods under Quorn and Cauldron brands. The APAC BFB Business
produced P52,911 million in net sales for the financial year ended December 31, 2020, relative to the Group's total net sales. Net sales in the APAC
BFB Business were primarily generated by MNC operations in the Philippines, which accounted for 94.9 %, 95% and 94.1% of total net sales in the
APAC BFB Business for the financial years ended December 31, 2018, 2019, and 2020. On the other side, for the years ended December 31, 2018,
2019, and 2020, the Meat Alternative Business produced net sales mostly from the United Kingdom and Europe, accounting for 73.9 %, 75.0 %, and
76.2 percent of total net sales, while net sales from Europe contributed for 14.4 %, 15.7 %, and 11.9 % of total net sales for each of the same years.
For each of the years ended December 31, 2018, 2019, and 2020, the Group’s net sales equaled to P63.4 billion, P65.5 billion and P67.9 billion, total
comprehensive income amounted to P2.4 billion, P5.9 billion and P6.7 billion and consolidated EBITDA amounted to P11.4 billion, P14.2 billion and
P15.6 billion. For the same periods, the APAC BFB Business contributed 76.4%, 76.8% and 77.9% respectively, to the Group’s net sales while the Meat
Alternative Business contributed 23.6%, 23.2% AND 22.1% in each of the same years. For the years ended December 31, 2018, 2019, and 2020, the
APAC BFB Business contributed 78.7%, 86.7%, and 95.0%, to the group’s net income before income tax while the Meat Alternative Business
contributed 21.3%, 13.3% and 5.0% in each of the same years. For the years ended December 31, 2018, 2019, 2020, the APAC BFB Business
contributed 83.4%, 85.7%, 85.3%, to the Group’s EBITDA while the Meat Alternative Business contributed 16.6%, 14.3% and 14.7% in each of the
same years.
For more than 3 decades now, Monde Nissin has steadily and aggressively risen to be the Philippines' leading food manufacturer and is currently
carving its niche as one of the most competitive players in the global industry. From its first biscuit, Monde Nissin Corporation has evolved into a premier
food company which has been among the Philippines' top 100 companies since 2000. Monde Nissin products are continuously striving to become the
Organizational Chart
The diagram above shows the internal structure of the Monde Nissin Philippines or the relationship hierarchy in the organization. To help in protecting
the shareholders’ interests and in mediating conflicts between investors and management the following serves as the authority in the organization: Mr.
Hartono Kweefanus (Chairman of the Board of directors), Mr. Hoediono Kweefanus (Vice Chairman of the Board), Betty T. Ang (Director and President),
Henry Soesanto (Director, Executive Vice-President and CEO), Monica Darmono (Director and Treasurer), Delfin L. Lazaro, Elaine Teo & Nina D.
Aguas (Independent Director), and Kataline Darmono (Director). Moreover, the following officers also serves a crucial role in the Monde Nissin
Corporation: David Nicol as the Chief Strategy Officer of the Company, Tomasito D. Tiu as the Vice-President for Manufacturing of the Company,
Samuel C. Sih as National Sales Director of the Company, Marivic N. Cajucom-Uy as Chief Sustainability Officer of the Company, Helen G. Tiu as the
Company’s Chief Legal Officer, Corporate Secretary, and Data Protection Officer, Jesse C. Teo as Chief Finance Officer of the Company, Michael
Stanley D. Tan as Supply Chain Director, Michael J. Paska as Corporate Business Development and Investor Relations Director, Melissa Chua
Pabustan as Marketing Director, Daniel Teichert as Chief Risk Officer, Jon Edmarc R. Castillo as the Chief Compliance Officer, Shiela Alarcio as the
Company’s Chief Internal Audit Executive, and Katherine C. Lee-Bacus as Assistant Corporate Secretary.
statements,we can consider financial analysis as one of the best ways to consider. Also, it is an important metric to analyze the company’s operating
calculated are as
follows:
Quick Ratio= (Current receivables + cash and cash equivalents) / Current Liabilities
Net Sales Growth= Current period net sales- prior period net sales / prior period net sales
● The products offered are inexpensive and convenient. It gives people a chance to experience the Monde Nissin products. Some people
want to test out the firm before deciding whether to buy one of the firm's higher-priced products. Offering low-cost products is a way to showcase what
the company does, to tempt more people to browse and to ultimately buy. It can also get the name and brand out to more people – being visible to lots
of ideal clients is one of the keys to business success. It’s also easier for people to refer people to the company's products. People like to help their
friends and family out, and offering low-cost products there is demand for, makes it easier for contacts to refer business to the firm.
● Negative public sentiments regarding the health impact of “instant” foods. The advent of technological improvements also comes with
easy access to information. This creates a wiser and smarter group of consumers initiating public and media scrutiny over the health impact of instant
foods. Instant noodles are said to be high in sodium, fat and cholesterol, low in fiber, protein and vitamins and contain monosodium glutamate and other
harmful additives. Frequent consumption of instant noodles has been reportedly associated with diseases such as obesity, heart diseases and diabetes.
Other products of the APAC BFB Business such as biscuits, baked goods, yogurt drinks and culinary aids may also be perceived as ultra-processed
and unhealthy. These health concerns have caused consumers to be aloof with the ready-to-cook segment in the supermarket. Moreover, the initiatives
taken by various regulatory authorities, like ongoing promotional efforts undertaken by the government to create awareness regarding frozen foods and
fish products., and other ready to cook foods, are driving the market growth. This will also cause a lot of pressure on the company to prohibit risks
associated with the consumers' health concerns. If handled poorly, this would injure their brand reputation.
● COVID-19 pandemic. The World Health Organization declared COVID-19 a pandemic in March 2020, and as a response to this, all
countries severely affected by it have imposed stringent protocols, which have adversely taken a toll to the worldwide economy. These restrictions are
not expected to be taken down until midyear 2021 and thus, many livelihoods were compromised. That said, consumers’ purchasing power has
significantly declined as well and these do not remain isolated to the Philippines and U.K., the company’s principal places of business, but also to the
other countries where the company conducts its business, such as Thailand, the EU, and the United States. In addition, the pandemic has caused
disruptions in supply chains and routes to market and those of the company’s suppliers and/or distributors, which may have resulted in an increase in
their production and distribution costs. Moreover, the company had to postpone and cancel specific operating and development plans that were set out
to be implemented for the subsequent periods due to various restrictions caused by the pandemic. In turn, the financial condition and results of
operations of the company have been and may continue to be substantially impacted by the COVID-19 pandemic.
The vision and mission statements serve as a focal point for bringing others on board with the organization and ensuring that everyone is striving toward
the same goal. This aids in improving the organization's effectiveness and competitiveness.
Vision
“We are a food company most admired for its agility and innovation.”
Recommendation:
Monde Nissin's vision is to be the most well-known and respected brand for its versatility and innovation, using our industry expertise, consumer insights, and
innovative technology to create a future of food that is tastier, more nutritious, and better for the environment.
Mission
● To further leverage its existing footprint and drive cross-category growth, structured revenue growth management will be done with reducing
costs.
As the Group's product offering and footprint have grown over time, numerous targeted initiatives such as flagship stores in new and general trade have
aided in the continued development of the Group's core segments and, in some cases, gained market shares. This objective will be completed through
clear channel segmentation, reconsideration of price and pack balancing, channel pack differentiation, trade terms optimization and return on.
INTERNAL WEAKNESSES
0.16
Negative public sentiments regarding the health impact of 1
“instant” foods. 0.16
0.09 1
COVID-19 pandemic. 0.09
0.30
Intense and increasing competition in the ready to cook 0.15 2
segment
OPPORTUNITIES
0.28
Partnership with Dexion Southeast Asia for the 4
construction of seismic-proof warehouses. 0.07
0.32
2021 largest SEC-approved IPO in the Philippines. 0.08 4
0.16 0.48
Meat alternative market gaining popularity. 3
3 0.54
Public dependence for ready-to-eat food products with 0.18
long store life.
firms. Philippine Institute for Development Studies, PIDS Discussion Paper Series, No. 2017-08.
https://www.econstor.eu/bitstream/10419/173585/1/pidsdps1708_rev.pdf