Thesis (Master in Management) -- University of the Philippines Mindanao 2023

RJ Bakers Enterprises Inc. (RBEI) is a family-owned corporation engaging in the wholesale distribution of bakery goods such as flour, margarine, and sugar, among others. They supply the bakeries, restaurants, traders, and general merchandise stores across Mindanao. RBEI is also an exclusive distributor of Universal Robina Corporation (URC) flour products, one of the largest flour millers in the country. The company aims to be the leading wholesaler and most trusted supplier of flour and other baking supplies across Mindanao. This papers presents a strategic planning framework that combines Fred David’s (2016) comprehensive strategic planning model with Haines’ (2000) ABCDE model, which incorporates the concept of complex adaptive systems into the framework. Strategic management tools such as Internal Factor Evaluation (IFE) matrix, External Factor Evaluation (EFE) matrix, SWOT analysis, and Internal-External analysis are utilized to generate strategic for the company. The quantitative strategic planning matrix is used to evaluate and choose strategies based on their attractiveness. Finally, the Balanced Scorecard is used as a feedback mechanism in evaluating firm performance. Results of the external environment scan show that local consumption of bread and other wheat-based products is steadily increasing in the past years. The Filipino diet is slowly shifting towards meat and wheat products. In addition, the influx of foreign nationals residing in the country further diversified the local flour market. While the COVID-19 pandemic devastated the Philippine economy, it also highlighted the entrepreneurial spirit of the Filipino as evidenced by the emergence of homebased food business online. Since the Philippines imports its wheat requirements, the war between Russia and Ukraine has a huge impact on the prices of flour and other baking inputs. This is further aggravated by the threat of dumped Turkish flour in the country as the anti-dumping duties on Turkish flour as set to expire on October 2023. The internal environment scan revealed that the company incurred major losses in 2020 due to the economic effects of the COVID-19 pandemic, however, it was able to bounce back significantly in the following year. A job satisfaction survey was conducted among employees of RBEI. The results show that there is a high employee retention rate in the company which suggests high employee satisfaction levels. Similarly, a customer satisfaction survey was also conducted. the study revealed that customers are highly satisfied with the company’s services. In particular, the respondents expressed high satisfaction levels towards salesperson attitude and price. The scores of the IFE and EFE matrix revealed that the company has a strong internal position and performs above average in terms of exploring opportunities and mitigating threats. The main strategy employed in this paper is a conservative market penetration strategy which primarily focuses on capturing underserved niche markets. By capitalizing on the increasing demand for baked goods and wheat-based products in Mindanao, this strategy aims to increase the company’s market share while mitigating impacts of the rising prices in baking ingredients. In addition, activities regarding digital transformation and customer service enhancement are also incorporated into the main strategy to enhance marketing activities.