I.

Introduction

The review oI the literature Ior this study Iocuses on the detailed concepts and procedures
needed to be understood beIore undergoing the research methodology. The concepts and
processes that are discussed are necessary in order to better comprehend the Iactors that need to
be identiIied in order that a thorough analysis will be executed. The chapter begins with a
deIinition oI strategy, determining and setting strategic goals, and the strategic management
process. It is Iollowed by an explanation oI competitive advantage, value creation and product
development. The current system oI the company being understudy, Mang Inasal Inc., is also
discussed to know the diIIerent Iunctions oI the company and how it is operated. Furthermore,
the Iast Iood/restaurant industry in the Philippines is also discussed to support the research study
along with a review oI success indicators oI restaurants and a Iorecast oI the industry Ior the
upcoming years.

II. Strategic Management

A. Definition of Strategy

With all the similar products and services, produced by diIIerent Iirms, that are available
in the market, it is expected Irom Iirms belonging in the same industry to compete with each
other in order to gain their customers` business and a competitive advantage. However, not all
Iirms will necessarily compete in the same manner. Strategies Iormulated by each Iirm vary and
are aimed to deal with its competitive rivals, to satisIy its customers and to catch up depending
upon changes that aIIect the way it operates. Strategy, as deIined by Lei and Pitts (2000), reIers
to the ideas, plans, and support that Iirms employ to compete successIully against their rivals.
Strategy is designed to help Iirms achieve competitive advantage. It is what enables a Iirm to
establish its niche and the reason why its better compare to its rivals.

B. Determining and Setting Strategic Goals

The vision oI a Iirm is important when determining and setting strategic goals. A vision is
described as the Iirm`s aspirations oI what it really wants to be. It is an important aspect oI a Iirm
because it serves as a guide towards being united as one in a Iirm in order to achieve a common
goal or purpose Ior the beneIit oI everyone. As Ior Mang Inasal Inc. (2011), its company`s vision
is 'To be the preIerred quick service restaurant oI every Pinoy everywhere. A company`s
mission on the other hand answers the question oI what type oI business it is in, the customer it
serves and the necessary abilities that the people in the Iirm should obtain in order to IulIill its
vision. Compare to visions, missions are more speciIic and concrete. Missions serve as a guide
on how a company`s vision will be translated into reality over a certain time period. Mang
Inasal`s mission is 'To consistently provide our customers a great Pinoy dining experience.
Finally, goals and objectives are identiIied beIore proceeding in determining and setting
strategies. Although mission statements help out in translating a company`s vision into reality,
goals and objectives are necessary to achieve a Iirm`s broader purpose by providing a series oI
direct, measurable tasks that will complement the company`s mission. However, unlike the
mission statement, goals and objectives must be achieved within a given time period. Examples
oI goals and objectives include the Iollowing: to reduce the turnover rate to 10 in 2 years, to
increase annual sales by 30, or to develop a new and innovative product at the end oI the
current year. Lei et al. (2000).

. The Strategic Management Process

A strategic management process, as described by Lei et al. (2000), is a management
process intended to carry out a Iirm`s vision and missions. The process involves Iour major
steps: analysis, Iormulation, implementation, and adjustment/evaluation.

During the analysis phase, a Iirm`s internal strengths and weaknesses and external
opportunities and threats are careIully examined. It is also reIerred to as SWOT Analysis. The
SWOT Analysis is a tool proven to be eIIective in analyzing and evaluating the diIIerent aspects
aIorementioned to help with the strategy Iormulation. Through the SWOT Analysis, the
company`s position in the market, its customers and its rivals can be identiIied. Certainly, the
SWOT Analysis helps in evaluating the overall situation oI the company as well as the diIIerent
Iunctional areas within it.

Strengths are those company attributes which are considered to be the best or better than
most, at the least, within the competitive environment. Functional areas such as Supply Chain,
Marketing, Operations, Finance, Human Resource, etc. can qualiIy as SWOT candidates.
Weaknesses, on the other hand, are company attributes that iI improved, can give more
proIitability to the company. In evaluating the weaknesses oI a company, multiple sides Irom the
key Iunctional managers in the company must be acquired in order to assure that all key
weaknesses are surIaced. The customers and suppliers` perceptions must also be acquired in
order to have an accurate assessment oI the company`s weaknesses. The next aspect to be
assessed is the external opportunities. These opportunities are the result oI trends or conditions
developing outside the company. Example oI these changes include diversiIication, technology,
liIestyles and specialization. The other external aspect which needs to be analyzed are the threats.
These threats are what hinder the company Irom IulIilling its Mission, Vision and Goals. Threats
may come Irom changes in government regulation or lender covenants. (Dix & Matthews, 2002)

The next step oI the Strategic Management Process is strategy Iormulation. In strategy
Iormulation, inIormation collected Irom the SWOT analysis is used in order to design a strategy
suitable Ior the company`s needs. The strategies Iormulated indicate how the company wants to
achieve a competitive advantage. Managers Iormulate strategies that Iocus on core competencies,
develop synergy and create value. (DaIt & Marcic, 2011)

AIter strategies have been Iormulated, the company must take steps to implement and
develop these in order to stay align and committed with the Vision, Mission and Goals oI the
company. Tasks needed to be perIormed during implementation include organizing activities,
hiring individuals or assigning employees that would execute those activities, training and most
importantly, rewarding them reasonably in order that they would be motivated to carry out their
responsibilities eIIectively.

Adjustment/Evaluation is the last phase in the strategic management process. AIter the
company has implemented strategies, the company must reexamine the current situation oI the
areas that were aIIected by the strategy implementation. This is necessary in order to keep up
with any changes and to regain high perIormance.

III. ompetitive Advantage

A. Definition

A competitive advantage as deIined by Dess, Lumpkin and Taylor (2005), exists when a
Iirm has a product or service that is perceived by its target market customers as better than that oI
its competitors. However, according to Volpe, (2008) 'Competitive advantage means staying
attuned not just to customer desires, but also to the competitive landscape, emerging
technologies, government regulations and the like. He emphasizes that though there is a saying
that 'the customer`s always right, the company shouldn`t get blindsided by the customer`s
Ieedback but rather, look at the whole picture altogether.

Porter (1998) identiIied two basic types oI competitive advantage: cost advantage and
product advantage. He explains that a cost advantage is when a Iirm is able to oIIer the same
beneIits as the competitors but at a lower cost while a diIIerentiation advantage is achieved when
beneIits gained exceed those oI the competitors. The aIorementioned types are also reIerred to as
positional advantage since they determine the Iirm`s position in the industry as a leader in cost or
diIIerentiation.

Building competitive advantage begins with intelligent marketing and a good start in
building this advantage is by examining the current positions and activities oI other companies
within the competitive environment. This advantage could be achieved by scoping the
competition Iirst, whereby competitors are identiIied. AIter rivals have been identiIied, their
current share in the market must be analyzed. Uncovering competitor advertising expenditures
and strategies can also be key to understanding the shape oI markets and developing plans.
(Quantum2, 2011) Furthermore, components such as standing out, being able to overtake your
competitor and Iinally getting past ahead oI them are important marketing Iactors towards
becoming successIul. (Lautenslager, 2007)

B. Value reation

As liIted Irom The Systems Thinker journal, 'The most successIul organizations
understand that the purpose oI any business is to create value Ior customers, employees, and
investors, and that the interests oI these three groups are inextricably linked. II one is talking
about long-term viability, one must recognize that value creation is key. This implies that
customers must consistently Iind a product to be worthwhile. Employees must also be part oI the
value creation process. As internal customers, they must be motivated and presented with
opportunities Ior Iurther growth. Moreover, Ior investors to be able to create value, they must
establish an assurance oI high return on investment. In that way, the overall process translates
into a value chain, which, later on shall be passed to the consumer. All in all, this cycle oI value
creation reinIorces the Iact that success is linked with sustainability, which can only be derived
Irom value creation. The key strategy is to Ioster a sense oI collective responsibility so that
associates can picture themselves as part oI the organization as whole who plays a role in
generating customer satisIaction consistently and continually. (Cassell, 1996)

. Product Development

In some instances, Filipinos have hard time on deciding where to eat. They might
consider the price, location, and the Iood that the restaurant oIIered beIore dining on it. But then,
having so many choices with regards to the variety oI the meals and services oIIered by the
restaurants are making it more conIusing. Until then, the diners would just decide on where to eat
based on the appearance oI the restaurant. The topic oI curbside appeal or keeping the restaurant
looking attractive and welcoming keeps this discussion in check. (Walker, 2006) An aspect oI a
restaurant with a good curbside appeal is the one with an accommodating host/hostess that would
make sure that all the diners are well accounted Ior. The host/hostess does not only help make
the guests welcome, they also are the one responsible Ior organizing the guests. Having a hostess
does in Iact hit two birds with one stone.

Another restaurant management technique that is discussed in the book is suggestive

selling or the act oI the people taking orders to suggest meals that might be the one the diner is
looking Ior. (Walker, 2006) This technique actually boosts sales and is proven to be liked by
most diners as it makes them Ieel special and cared Ior.

Owing to the Iact that consumer tastes diIIer Irom time to time, companies must be able
to analyze the market and anticipate the needs and demands oI customers. However, as Steve
Jobs Iamously says, ' The market does not know what they want, you have to show them what
they want. Products must drive users to want a product and not the other way around. There
goes a saying that 'Developing a product is like shooting ducks; you got to shoot not where it is
but where it`s going to be.

In relation to the restaurant industry, restaurants and Iast Iood chains must be able to Iind
a niche in the market. Be it a Ioreign Iast Iood chain or a themed quaint little bistro, it must be
unique and must capture the interest oI the local palette.

IV. urrent Operations of Mang Inasal

The operator oI Mang Inasal intends to bring the country`s Iastest growing Iast-Iood
brand overseas next year. (Montealegre, 2011) It is planning to expand the business to the United
States by the third quarter oI next year as a part oI its mission oI serving all the Filipinos and its
plan to expand operations.

Mang Inasal also plans to improve its services and products through presenting new
things under their brand these coming months. As expressed by the Vice Chairman oI Mang
Inasal, Edgar Sia, through inShare, in the next Iew months, you will see a parade oI much
welcome additions and innovations in all Mang Inasal stores nationwide. (Montealegre, 2011).

Mang Inasal maintains its competitiveness through making its restaurants greatly
scattered around the country by making its Iranchise Iee as low as 1.1 million pesos (Mang
Inasal, 2011) compared to other leading Iast Iood brands like McDonald`s and Jollibee with
more than 30 million pesos Ior Iranchise.

V. Success and failure indicators in the restaurant industry

A. Keys to Success in Restaurants

A growing number oI organizations today are getting the approval oI children with
regards to their product Ior one reason; greater proIit ahead. One reason given why you should
market your products to children is that, you should start establishing relationships with your
customers early Ior loyalty. II you would start making your products approvable to children, their
loyalty to your product would improve as they grow and have their own children who would also
pass their tradition oI loyalty to your product. Another reason is that, kids have a lot oI money to
spend and have a lot oI inIluence with regards to the things that their parents are going to buy
making them a reasonable target market Ior proIit-hungry business organizations. (Schlosser,
2006) Two people became very big because oI this idea oI marketing products to children
namely, Ray Kroc and Walt Disney. The two are very successIul businessmen thanks to the
children. They made their products and Iacilities likeable to children. McDonald`s and Disney
Studio became successIul by having able to Iind out what the children wanted. In lieu to this,
they created special worlds that would cater to the imaginative minds oI the children and sales
Ior their products. (Schlosser, 2006)

A Iew homegrown restaurants have withstood the test oI time and still remains to Ilourish
in the industry. Generation aIter generation, these restaurants have earned loyal Filipino
Iollowing which is the reason behind their sustained patronage over the years. What makes the
customer come back every time? Is it the satiating Ilavor oI the dishes? The experience oI
relishing every single bite at the comIort oI a Iancy ambience, or is it the indulgent Ieeling oI
savoring meals which you know won`t burn your pockets? There are 3 key Iactors to a successIul
Iood business. This includes the concept, the location and the service. The concept oI a business
can be relative to the identity oI the business as a whole. This separates a Iast Iood chain to a
restaurant. With a particular concept, a restaurant or a Iast Iood chain creates a competitive
advantage over the other. The menu is also involved with the overall concept oI the business. It
determines the complexity and intricacy oI the restaurant`s operations. It is, thereIore very
obvious that shorter and simpler Iood oIIerings require less service and limited skills. Most Iast
Iood operations show a higher percentage oI proIit than high-end restaurants. With minimum
service and specialty items, the prices can be inexpensive because the increase in sales volume
will make up Ior it. (Anton & Gonzalez, 2010) The service oI the restaurant or the Iast Iood
chain also has an eIIect on the success oI the business. Lack oI training and lack oI supervision
are mainly the reasons behind customer dissatisIaction. Living in a technologically advanced
society, word oI mouth or a single blog entry can mortally destroy the brand`s image.

In opening a restaurant, location is the most important thing to take into consideration.
Location does not only include the area but also the embracing ambience oI the restaurant. It is
out oI the question that Filipinos are great Iood lovers. Be it as it may, majority oI people are not
willing to travel Iar Ior the sake oI a grand meal. Convenience is still a huge Iactor. However, iI
done right, there are some exceptions to the said rule. For instance, Antonio`s in Tagaytay oIIers
the ambience, cuisine, service that will surely make the trip worth it. Tonyboy Escalante, the
owner, went with his passion despite the huge risk oI opening a restaurant in an out-oI-the-way
location. He does not stop at researching his target market. He anticipates the needs oI his
customer by constantly improving the menu, service as well as the design oI his restaurant. All oI
these plus a panoramic view surely sums up to a very unique experience that only Antonio`s can
oIIer.

According to Implications, a newsletter by InIormeDesign, there is a rising consciousness
Ior the need Ior an eIIective restaurant design. 'Boiled down to its very essence, the business oI
restaurants is the oIIering oI an experience with the goal oI generating a proIit. The experience is
both Iabricated and delivered in the same place; the environment is part oI the product as well as
part oI the delivery system. So it comes as no surprise that the design oI a restaurant directly
aIIects the guest`s experience as well as the restaurant`s ability to oIIer service. Recent studies
reveal that the design oI the restaurant can have a positive inIluence on making happier guests,
generating a higher spending and Iaster table turns. Other elements such as the arrangement oI
seats, music, lighting all contribute to the desired ambience oI the restaurant. Also, according to
the book Trading Up. The New American Luxury, Silverstein and Fiske (2003), psychological
needs behind consumer behavior translate to the need Ior selI-reward, the need Ior social
connection, the need Ior intellectual stimulation, and the need Ior selI-expression. Restaurant
guests are not always driven by the motivation oI hunger. Motivation reIers to the actions that
result in some behavior, and it occurs when the body or the mind recognizes that there is a need
which could be satisIied. (McCabe, 2009) They have the option oI cooking at home or order in
Iood. What they desire is to relax, to experiment and to socialize. As aIorementioned, the interior
design oI a restaurant matters a lot to customers. Furthermore, according to Gorodesky and
Madigan (2011), the vital elements necessary towards a successIul restaurant design include:
knowing your market, knowing your trend, an experienced restaurant designer and the allotment
oI budget. With all the elements applied, an appealing interior design can be created, thus,
potential customers are encouraged to dine in and adds to the proIitability oI the company.

It is important Ior every business to market their products in every medium possible.
Each medium is inIorming diIIerent market than the other mediums and iI one oI the goals oI the
organization is to be the number one choice oI everybody, it is important to make their product
known to just about everybody. In this scenario, the marketers oI an organization must be an
expert in using the multi-channel approach in marketing as it do the Iollowing: compound
synergies, increase reach, increase Irequency, best medium is used Ior each stage in marketing
cycle, success properly evaluated and measured. (Arikan, 2008) It compounds synergies as the
repeated communication in diIIerent medium pressures the customers to act or buy your product
and the message you are trying to get cross seem more believable because it is constantly heard
anywhere. Reach is increased, obviously, because communications are delivered to all prospects
in the target market. Frequency is increased because iI only one type oI medium is used, the
communication tends to have a limit unlike having many media in use wherein the inIormation
being promulgated tends to go simultaneously with one another or one goes aIter the other
making consistent inIormation dissemination. Best medium is used Ior each stage in marketing
cycle is observed, as said a while ago, diIIerent medium reach diIIerent people. Lastly, success is
evaluated and measured as it emphasizes marketing accountability and continuous optimization
Ior arriving at more and more eIIective communications.

They say perseverance is key to any success. Passion must be the ubiquitous element oI
your company. Success entails an achieved purpose oIten driven by the human soul on Iire. For a
restaurant to be a paragon, one concept to take into heart is the idea oI customers being the
restaurant`s 'owner. The goal oI the company must consistently satisIy its customers.
However, just like the concept oI value creation, in order Ior the whole business to provide
excellent services, the employees must Iirst be satisIied as the internal customers oI the
company. Sincerity towards the employees will reIlect how they treat the restaurant`s clients.
Simple gestures and words such as 'Thank You can strike a diIIerence to your customer base
and employees. One must Iocus his energy on retaining good employees, which possess long
term potential. These types oI employees will be an aid to bring success to the company and will
eventually develop into very good employees. When an economic slump hits a restaurant,
trimming down the cost should not be the only thing to be considered. In line with this, the
company should spend more time on training the staII to sell more and serve better. ProIitability
is paramount but it must not sacriIice the quality and service oI the restaurant. In addition, a
restaurant must never stop training its employees; it is crucial to constantly improve the services
oI the business.

Contrary to popular belieI, there`s a big diIIerence between running a restaurant and
managing one. Numbers will only get you as Iar; proIit and losses do not determine the success
oI the restaurant. Customers are more willing to shell out cash Ior the entire dining experience.
Besides, competitors should not be treated as a threat; rather, they must be treated as
opportunities. One`s nothing can be another one`s something. DiIIerent is not always better, but
better is always diIIerent. There is no universal Iormula Ior a restaurant`s success. One thing Ior
sure is that a restaurant will not be able to please everybody. What`s best is to embrace your
original concept and target demographic.


VI. The Restaurant Industry in the Philippines

'Fast Iood generally reIers to the type oI restaurants that sell quick, inexpensive take-out
Iood. (Arboleda, 2010). It is diIIerent Irom other restaurants such that you have to pay beIore
eating your meal and not aIter. The essence oI Iast-Iood is eating the Iood Iast. The whole
experience oI buying Iast Iood has become so habitual, that it is now taken Ior granted, like
brushing your teeth or stopping Ior a red light (Arboleda, 2010). This makes the Iuture oI Iast
Iood industry in the Philippines very promising. Also, Filipinos love to eat and that`s the reason
why you will see a lot oI restaurants and Iast Ioods restaurants scattered in the cities. (Arboleda,
2010).

Attracting a huge crowd to restaurants or Iast Ioods require more than just good Iood.
Though important, good Iood is only a part oI the total dining experience. Equally important is
believed to be the way people Ieel while in the restaurant. This physical and emotional response
is a result oI the atmosphere, the total environment to which customers are exposed. The proper
atmosphere can make the Iood, service and whole dining experience seem better. For that reason
a restaurant or a Iast Iood must take care oI the Iollowing to please its customers. (Arboleda,
2010) This makes running a Iast-Iood restaurant more complex than how it Iirst looks like. To be
able to compete properly in this industry, you must improve all the aspects that the people are
looking Ior in a Iast Iood restaurant.

Today`s Iast paced world drives each and everyone at the edge oI their seats. In this 21
st

century realm, people are constantly pushing themselves to Iurther achieve greater heights. Man
has managed to bridge certain gaps in his liIestyle, to create Iluidity in his actions. This can be
best expressed by looking at the convenient choices oIIered in the market. Since people are
always on the go, some have grasped this opportunity to their entrepreneurial advantage. Just
take a look at the hotel and restaurant industry. What was once a Iield clad with Iew competitors
has emerged to be one oI the most substantially Ilourishing industry in the country.

According to a study, In-depth Study on the Hotel and Restaurant Industry In the
Philippines, conducted by Dr. Divina Edralin, the domestic restaurant industry comprises oI 45,
220 restaurants, 80 oI the said Iigure is consisted oI Iast Iood chains, which remains to be
popular in the country. The study was conducted last 2001 and chances are, these Iigures have
ballooned as oI late.
Due to the increasing demand oI the consumers, competition in the restaurant industry
has grown Iiercer than ever. Since market shares depend largely on pricing strategies, major
players in the industry have developed their own marketing mix strategies in order to reach a
wider consumer demographic. A popular option Ior Iast Iood restaurants is to constantly oIIer
new products, which still Iall under the 'value meal range.

Over the years, Filipinos have adopted diIIerent preIerences when it comes to Iood and
restaurants. The Iollowing shows the sequence oI characteristics that consumers Iind to be the
most signiIicant; 1) Ilavor and taste; 2) value Ior money/nutrient content; 3) presentation and
packaging; 4) variety; 5) systematic ordering and selling; 6) Ieeling oI security in Iood and
environment; 7) prompt delivery and service; 8) consistency oI service; 9) Ieeling oI recognition
and importance; and 10) Ieeling oI security in location and accessibility. (Edralin & Castillo,
2001)

VII. Restaurant Industry Forecast (Local & International)

A. U.S. Restaurant industry

It wasn`t long ago when the United States suIIered Irom a recession. In Iact, due to this
economic downturn, a lot oI companies could not aIIord to continue their operations, causing
them to declare bankruptcy. Along with this unIortunate event, the unemployment rate inIlated
and it wasn`t long until another economic uncertainty burst its bubble.

According to Standard & Poor`s, an investment research Iirm, some restaurants cope with
this plight by catering value-priced menu items to lure more customers, even iI it means hurdling
material price increases. For the sake oI sales, quick service or Iast Iood restaurants promote
dollar menus and Iull-service restaurants settle Ior discounting trends. What`s interesting is that
these two segments have turned themselves into their own competitors. Full service restaurants
have chosen to downsize their menu items, this means oIIering customers with lower-end
noshes. Quick service restaurants, however, target on premium products, mostly Ior the goal oI
gaining more sit-down diners, which aims to blur the lines between a Iast-Iood restaurant to
casual dining.

On a lighter note, the eIIorts oI restaurant owners in making ends meet has signiIicantly
reduced company expenses, enabling them to pad margins. Standard & Poor`s also disclosed that
restaurant owners reIuse to raise prices due to the risk oI losing clients. Industry analysts
anticipate that the restaurant environment comprised oI poor consumer sentiment and limited
spending power will press on through 2011 and beyond.

Considering the Iact that the industry still remains to be quite unconvincing, the NPD
Group Iorecasts that the Ioodservice industry will average less than 1 percent per year until 2019,
which can even be surpassed by the domestic population growth rate in the U.S. To attract more
customers, the Iirm suggests restaurants to promote convenience, value, Iood Ireshness and
service experience, which cannot be emulated by home cooking. Furthermore, they must be able
to view things Irom the customer`s perspective. Like Ior instance, how clients regard
aIIordability and other Iactors that can possibly aIIect the way consumers think and spend.

B. Full Service & Quick Serve restaurants

Restaurants wherein customers order and are served while seated are called Full-Service
restaurants. It occupies 32.2 percent oI all industry sales as mentioned by the NRA. Full-service
restaurants got hit by tons oI bricks during the recession. Currently, while the industry is still in
recovery, Iull-service restaurants are still the ones who suIIer Irom high unemployment,
economic uncertainty and careIul spending by business travelers. The research Iirm states that
Iull-service restaurants cope with competition by cutting menu prices. More and more restaurants
have adapted this trend by advertising 'buy-one-get-one, early bird specials, and extended
happy hours. IBISWorld, a research Iirm, Iorecasts that the Iull-service restaurant will continue
to expand between 2011 up to 2015 averaging an annual rate oI 2.8 percent growth Ior both
single location and chain restaurants. It is presumed that this period will leave room Ior an
increase in household income and consumer spending, resulting to a higher restaurant traIIic and
higher proIitability.



The NRA reports that Quick service restaurants or Iast-Iood restaurants account Ior 28.3
percent oI restaurant industry sales. Despite the pressures oI restrained consumer spending and
price competition, Iast Iood restaurants still remain to experience good results. In light oI the
intensiIied competition and increase in material prices, quick service restaurants are
instantaneous to adapt multi-tiered menus. In line with this, they have also expanded dollar
menus and premium-priced items. According to a study made by the NPD Group, 60 percent oI
quick-service traIIic growth consisted oI breakIast items, which has encouraged restaurants to
build up their sales during oII peak hours. This can be best expressed through the extensive line
oI breakIast items, snacks, specialty beverages, coIIee-based drinks and smoothies. IBISWorld
predicts that Iast Iood chains will add more Iocus on new product introductions to promote
aggressive pricing as well as an array oI healthier menu options Ior its customers.






. Industry Forecast (Local)

The local restaurant industry is largely dependent on the levels oI economic activity and
real income oI local residents and tourists. (Edralin and Castillo, 2001) Changes in the Filipino
liIestyle, population and consumer behavior has driven the brisk development oI the restaurant
industry.

Recent statistics shows that there are currently thirty-two thousand Iast Iood restaurants
in Metro Manila alone. Nevertheless, quick service restaurants in the country are still greatly
aIIected by rising economic prices. Chen, Chen and Liu (2009) concluded that the success oI
Manila`s Iast Iood industry lies in its standard processes, limited menus, enhancement oI values,
speed, swiIt services, and distribution right. Fast Iood industry has successIully changed most
people`s daily habits in many big cities. Nevertheless, Iast Iood Iranchises are reluctant to
develop in suburban areas. Regarding this, there is still plenty oI room Ior Iast Iood industry to
expand in the Philippines.

VIII. onclusion

This review oI related literature revealed the phases that must be taken during the
strategic management process and the things that need to be determined and identiIied Iirst
beIore proceeding to the process. The steps in the strategic management process include: analysis
oI the strengths, weaknesses, opportunities and threats; strategy Iormulation; strategy
implementation and Iinally, adjustment/evaluation. A working deIinition oI competitive
advantage was also given along with the two diIIerent types, cost and diIIerentiation advantage,
and as well as the steps in building a competitive advantage. These types oI advantages could be
used as an example oI what strategies Mang Inasal could improve on. Furthermore, the
importance oI value creation and product development in gaining competitive advantage was
also discussed in this review. This will help better understand and in re-examining the value
creation and the how the products oI Mang Inasal Inc. could be developed. In order to have a
better look oI Mang Inasal`s system, a brieI review oI its current operation was discussed. It was
discussed in the review the innovations Mang Inasal is planning to implement in its branches in
the upcoming months.

It was also revealed in this review oI literature the diIIerent key Iactors that contribute to
a restaurant`s success and the variety oI approaches that diIIerent companies took in the Iast
Iood/restaurant industry in order to gain their competitive advantage. Some oI these Iactors
include the concept, the location and the service. However, no matter how successIul a restaurant
can be in being able to incorporate those Iactors, restaurants can`t still please everybody. Thus,
the best way is to embrace an original concept and target demographic. Regarding the restaurant
industry in the Philippines, 80 oI the industry is comprised oI Iast Iood chains as oI 2001. Due
to the consumers demand and since market shares depend largely on pricing strategies,
marketing mix strategies must be developed in order to reach a wider consumer demographic and
oIIer new products which are at the 'value meal range. Furthermore, a Iorecast on the restaurant
industry, both local and international, was reviewed in order to Iind out signiIicant changes that
may occur in the upcoming years.