Assumption College San Lorenzo, Makati City

Strategic Management Paper for

Submitted to Prof. Ricardo Cruz Jr.

Submitted by Ravago, Desiree A.

April 30, 2013

Introduction Andoks Litson is a major brand of specially roasted chicken in Philippines. The major products they sell are the Litson Manok which is a roasted variety of chicken and also the Dokito Frito which is a fried variety of chicken. The chicken is prepared adding a lot of other ingredients which are not the typical ones used in the common preparation. Some of the ingredients that are used include sugar, spice, rice, various beverages etc. They also sell a variety of pork dishes like the litson liempo, lechon kawali, pork sisig, pork barbeque etc. Beef dishes like beef steak rice and corned beef egg rice, fish dishes like bangus and bangus rice, exclusive egg dishes and desserts are also available at the Andoks Litson outlet. The targets of the company in years to come itself are appreciable. Their prior aim is to be known as the best native food company that gets an international recognition at the same time. They want to be innovative with the way they go about cooking and also wants to provide the best customer care. They also want to make the world aware of the delicious cooking style of Filipinos that can even attract the tourists.

Historical Background Mr. Sandy Javier, owner of Andok's and now Mayor of Javier, Leyte, his dream began more than 25 years ago when he set up a small stall along West Avenue in Quezon City. Wanting to cash in on Litson Manok craze, he asked his mother's friend who owned poultry store to "outsource" 12 whole chickens which he then roasted with hopes that it will catch on with passersby. At the end of the day he only sold two. Instead of being discouraged, Sandy decided to innovate. He experimented with his ingredients and cooking methods until he found what he felt was the right formula that would capture his buyers tastes. In 1895 Sandy's efforts were rewarded when the hungry masses began trouping to the first Andok's Litson Manok-Liempo store at the corner of Baler Street and West Avenue Quezon City. Andok's soon became synonymous with litson manok and its stalls were soon became sight in Metro Manila. In 2002 Andok's branched out to the Visayas starting with 2 stores in Cebu followed by 9 more stores in two years. Two years later Sandy decided to put up his first dine-in store at D'Mall, Boracay. Budget conscious tourist and Locals enjoyed Andok's affordable menu so much that 6 outlets were operating on the island in less than a year's time. Andok's has even evolved to include selling daily necessities such as rice, sugar, beverages and grocery products. At a seminar for business students at the Colegio San juan De Letran,

Sandy shared the lessons he learned from running Andok's. "Even if you don't have much money you can use diligence, common sense, and hard work as your capital, If you are enjoying what you do, you are not working at all. You are just enjoying". He also emphasized the Pinoy trait of being thrifty by always spending less than what they are earning. From a corner stall with 12 roasted chickens, Sandy Javier now owns 300 outlets nationwide and counting, including his outlets here in Capiz that is located in Roxas Avenue, Roxas City and managed by Mr. Jener Delos Reyes.Andok's is one of the affordable fast food here in Capiz. Andok's earning the tag, "Pambansang Litson Manok". Andok's was the nickname of the late father of Mr. Sandy Javier.They serve 24hours everyday with the Delicious dishes and best Costumer care. The prior aim of Andoks is to be known as the best native Filipino Food Company and want to make the word aware of the delicious Cooking style of Filipinos.

Vision Statement To be acknowledged as a Homegrown Legend in the Filipino food tradition. To be globally recognized as the Supreme Leader in the Roasted Chicken industry. To be the most loved and popular Filipino food brand in the Philippines and abroad through aggressive expansion and continuous innovation in terms of product development and service excellence. To be the leading quick service restaurant by continuously providing our customers the best quality food, value for their money and excellent customer service. To be the best provider for every Filipino of the home and joy of family ties by giving them convenience in the availability of all-time favorite Filipino dishes.

Mission Statement To provide high quality products at affordable prices.

Components of a Mission Statement Components Customers Products or Services Markets Technology Concern for Survival, Growth, and Profitability Philosophy Self-concept Concern for Public Image Concern for Employees Yes No

External Assessment: Opportunities Online Market that offers Andoks the ability to greatly expand their business. Andoks can

market to a much wider audience for relatively little expense. Brand loyalty of the products may increase the companys price competitiveness.

External Assessment: Weakness Top competitors in the same area of business. Currency fluctuation risks Competitive pricing More and more people are being health conscious Changes in the atmosphere/environment can lead to increase of risks in diseases/viruses like mad cow, bird flu, etc. External Factor Evaluation Key External Factors Weight Rating Weighted

Score Opportunities Online Market Brand Loyalty

0.11 0.18

2 3

0.22 0.54

Threats Top competitors of the same products and services Currency Fluctuation Risks Competitive Pricing Health Trends Diseases and Viruses (Mad cow, bird flu, etc.) Total

0.13 0.14 0.14 0.18 0.12 1

3 4 4 4 3

0.39 0.56 0.56 0.72 0.36 3.4

Analysis: The overall weighted score of Andoks Litsons External Factor Evaluation (EFE) is 3.4 which indicate that the external functions/roles outside the company are above the average rate thus the company are aware and are capable of handling opportunity and somehow avoid threats.

Competitive Profile Matrix Main competitors of Andoks Litson: o o Baliwag Chooks To Go

Analysis:

Results show that Andoks Litson has a relatively better position in market because of its Sales Contribution, Consumer Loyalty and Production capacity since the company offers a wide variety of food and beverages.

Internal Assessment: Strengths The Company has now grown into more than 300 stores across the country. These stores are strategically located in key municipalities nationwide. The Company has more than 60 dine-in stores nationwide, namely Robinson's Novastop, Olongapo, Tagaytay, SM City Lipa Batangas, Baclaran, Tacloban Palo, Tacloban RTR, Baguio Session Road, Harrison, Dampa Farmers, Stop & Shop, Mactan Cebu, Mandaue Cebu, among others. ANDOK'S saw the great potential of Panay Island, and later on opened two dine-in stores in Iloilo and in Kalibo during the last quarter of 2005. The newly opened stores emerged as among the top ten stores of the Company nationwide as of to date.

24-hours service and delivery of products.

Innovation: o o The concept of specialty grocery store offering a host of products, including beer, an assortment of beverages, rice, sugar, and other grocery products. ANDOK'S also offers wide variety of choices namely litson liempo (roasted pork belly), bangus (milk fish), pork barbeque, porkcharap (fried pork chop), lechon kawali (deep fried pork belly), kawali royale, crispy pata (deep fried pork leg), pork sinigang, beef steak rice, beef rice, chicken leg quarter, pork sisig, chopsuey, all-day breakfast meals such as beef tapa egg rice, bangus fish egg rice, corned beef egg rice, tocino egg rice, and longganisa egg rice and desserts such as banana con yelo, mais con yelo and leche flan. It also offers soft-served ice cream and frozen drinks. o Andoks offers two franchise formats: Take-out and Dine-in. Both offer the same great tasting and affordable food Filipino families have come to love through the years. We will provide you the tools and knowledge to help you build a profitable business for yourself and your community.

Internal Assessment: Weaknesses

Their organizational chart is undefined. Their franchising service is very expensive unlike their other competitor/s Some of the roasted chickens were reported to be raw and not well done. The companys promotion/advertising presence is not quite noticeable.

Internal Factor Evaluation Matrix Key Internal Factors Strengths 300 stores across the country 60 dine-in stores nationwide Offers a wide variety of roasted and fried meats and seafood products Offers all-day breakfast meals 24-hours service and delivery Franchise service Innovation of products and service Weaknesses Undefined organizational chart Franchise is expensive Some branches have raw roasted meats Advertising Presence Weight Rating Weighted Score

0.15 0.10 0.05 0.04 0.08 0.06 0.07

4 3 4 3 2 2 3

0.6 0.3 0.2 0.12 0.16 0.12 0.21

0.15 0.09 0.10 0.11

1 2 1 2

0.15 0.18 0.1 0.22

Total

2.4

Analysis: The overall weighted score of Andoks Litsons Internal Factor Evaluation (IFE) is 2.4 which indicate that the internal functions/roles in the company are below the average rate thus the company has a minor weakness internally.

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