Thesis (Master in Management) -- University of the Philippines Mindanao, July 2020

The COVID-19 outbreak had detrimental effects on every aspect of human life, communities, business and organizations globally. The outbreak which started in Wuhan, China on December 2019 was declared as a pandemic on March 11, 2020, by the World Health Organization (WHO) citing the 118,000 cases of the coronavirus illness in over 110 countries around the world the world and the sustained risk of further global spread (Duchane, 2020). Through the Bayanihan to Heal as One Act (RA11469), President Rodrigo Duterte was granted emergency powers to address the impacts of COVID-19 in the Philippines. The enhanced community quarantine (ECQ) was imposed nationwide on March 16, 2020, which caused a total lockdown, restricting the movement of the population except for the necessity, work and health circumstances to mitigate the spread of the virus in the country. The government also mandated the temporary closure of non-essential shops and businesses. The importance of bread as the next staple food after rice was emphasized during the pandemic. Production of bread continued despite the reduction of the capacity to 70% due to mobility restrictions, employee accessibility issues and imposed curfews. Although allowed to operate during the lockdown, the baking industry experienced several problems that hindered the capability to attain optimum production and maximum profits. GL Bakeshop, a chain of stores in Davao Region, was not exempted from the problems encountered during the COVID-19 pandemic, such as manpower shortage and supply chain disruption, which resulted in a substantial reduction in sales of 30% in April 2020 and 22% in May 2020. Known for its Intellectual Property Rights (IPR) registered tag-line ?G-Licious?, GL Bakeshop is a family-owned corporation that is committed to providing quality bread and pastry product at an affordable price. For over a decade, GL Bakeshop has established a name for itself as a bakeshop, which at par with other well-known brands. Today, the company has a total of 13 store outlets and one commissary with a total of 74 employees. However, with this growth are many challenges that beset the company, such as low profitability, low productivity, pilferage an wastage, absence of financial management system and poor organizational structure. However, the most notable challenge is the cutthroat competition among existing competitors, whether small, medium or big companies that result in a price war. The Strategic Plan for GL Bakeshop that is aimed to improve productivity and competitiveness through value chain development is based in the strategic management framework of Fred David (2011). Both primary and secondary data were used in the analysis. Strategic management tools like strengths, weaknesses, opportunities and threats (SWOT) matrix. Internal and External(I-E) matrix and quantitative strategic planning matrix (QSPM) served as guide in choosing the recommend strategy for the company. As per results, market penetration emerged as the appropriate strategy for GL Bakeshop to undertake. It focuses on selling more of its current products in its existing market to increase market share. It requires a thorough promotional campaign for products to fill what the market needs, and improving existing products to invigorate the market. Making slight adjustments with the products and their packaging can attract more customers and non-users. These are ways to enhance customer satisfaction and retention in order to increase market share. The company's commitment to quality and food safety is a competitive advantage that will strengthen market penetration. Given a strong internal position of the company and its ability to respond and manage disruptive challenges during the COVID-19 pandemic, market penetrations the recommend strategy to increase productivity and competitiveness in a highly competitive industry. The company is confident that the projected increase in sales of 5% in 2021, 10% in 2022 and 15% in 2023 is attainable based on the premise that bakeries survive and thrive during the worst time in our history. The proposed activities to be undertaken geared towards the attainment of the financial objectives, are the use of online marketing such as Facebook with at least 500 followers, home delivery services with two riders, and 26 new stores to be opened within Davao Region in the next three years, with a total budget allocation of P/34,385,000.00.