Thesis, Graduate(Master in Management)--University of the Philippine Mindanao,December 2008.

Kanegie Foods is a Davao-based small-scale food processing company that produces and sells food ingredients, native delicacies, and dry food mixes, with a product distribution network covering Southern, Central and Northern Mindanao, and Luzon. The company also has exclusive distributorship agreement with the SM Chain of supermarkets in the Manila and Luzon areas. The over-all financial performance of Karnegie Foods in 2005-2007 was notably good as indicated by its financial ratios, driven by better-than-average operating efficiency and marketing excellence. Kanegie Foods has gained significant inroads in quality and productivity improvement as evidenced by the various awards and merits it obtained in the past several years including its highest recognition, the Seal of Product Quality as Best Sweet Native Delicacies, in the National Product Quality Excellence Awards for 2005. The objective of this paper is to develop a strategic plan for Kanegie Foods in the coming five years i.e. 2009-2013. The framework for the strategic plan uses SWOT Analysis to determine strategic options for the company in the context of the global processed food industry. The analysis of internal and external factors showed that the company is not responding well to opportunities and challenges as of the present. The company might have the plans and strategies are not being translated into action. The total weighted score for internal factors also indicate that the company is internally strong by harnessing its strengths to counter the weaknesses. Low weighted scores are obtained for factors that have an impact on future expansion plans i.e. financial capability. This can be an indication that the company, although it intends to increase production and expand its market, has not put in place the groundwork needed for expansion. The strategic plan involves the implementation of two major strategies which represents the two phases proposed for the development of Kanegie Foods in the period 2009-2013. These strategies are : 1) enhancement of productivity and competitiveness of the company through upgrading of facilities and technical capability to cater to both local and export markets; and 2) market penetration. These two development phases shall be pursued one after the other within the five-year period with the former serving as the platform for the second phase of development of the company. The first strategy addresses the need to upgrade production and technical capability of the company to comply with market and regulatory requirements both here and abroad, particularly the United States market. The objective of the second strategy is to market a novel ethnic food product, microwaveable bibingka (rice cake), in Filipino communities in the United States. The plans covers a period of three years (2011-2013) at the end of which, the product is expected to have gained a strong market base in major cities in the United States. The strategic plan also describes a system that will look at how the company employed the two major strategies and implemented the two corresponding development phases during the five-year implementation period. The company will be rated in terms of its performance in employing strategies that address economic, social and environmental concerns of society, the key results areas (KRAs) to be monitored and evaluated, and are the very same parameters that define sustainable development. For each KRA, the performance indicators are identified to serve as criteria for evaluation. The system also describes the information system to be used in communicating the activities involved in and the results of the monitoring and evaluation process.