Shakey’s SM Sta.

Rosa Branch
CABALLERO, GENESIS FAYE
FEROLINO, REDHEL
CATINDIG, CLAMILLE
ZALDIVAR, ANGELICA MAY
INDUSTRY ANALYSIS GUIDE
QUESTIONS FOR THE INTERVIEW
PART I: Strategy Formulation
Requirements in Strategy Formulation
 What is the company’s Mission and Vision?
There is no Mission because Mission is just for the meantime; what we offer is for
a lifetime. We change our mission to purpose, and that is to provide great
times and great memories. Our purpose is continuous; we do it every day and
it happens every day. Our vision is to be the leading and preferred family
casual dining restaurant serving pizza as its core product. It means that we aim
to be the leading pizza provider, as pizza is our trademark product.
 What are the company’s strengths, weaknesses, opportunities, and threats? (SWOT
Analysis)
S: Customer (guest, for our aim and purpose is for them.),. solid supplier-customer
relationship
W: High cost of product,
O: More expansion and franchise, people development for employees,
T: Imitation of product by the competitors
 What are the company’s objectives (Long and short-term objectives)?
Long term: THINK GUEST Being customer oriented restaurant, our long term objective is to
provide our guest the best service that a fine dining restaurant could offer. Thinking like
the guest helps us predict the customers’ behavior and expectations, as well as their
needs that must be satisfied by us.
Short Term: We don’t have short term objectives in the company, we only have it for
every store/branch. As for our store (at SM Sta. Rosa), our short term objectives focuses
on sales. For example, we have daily and monthly sales quota. For daily sales, we have
at least 150,000 to 200,000 pesos target sales. For monthly sales, our target sales reaches
up to 3M-4M pesos. So far, we never fail to reach those target sales since our location is
very strategic and profitable; SM Sta Rosa never had a single day without a person
visiting it.
 What are some of the company’s strategies/ approaches to achieve the
objectives?
In the company, we have the so-called QSCH (Quality, Service, Cleanliness,
and Hospitality) which is the core strategies of our company.
Quality: We have two types of quality rating: Mystery Guest Rating (Someone
from the Quality Control will secretly visit our store with a spy camera to see the
functions and ways of things that was going on inside the store. The store will
be rated base on the rubrics of the spy and the behavior he/she had observed
inside the store.
QSCH Rating evolves in the four core segments of the store (Quality, Service,
Cleanliness and Hospitality).
In Quality, it tackles the quality of the food and service.
Service: Talks about the staff service, the amenities service like the comfort
rooms. If the CR is clean, then the service is good.
Cleanliness: Talks about the whole store; the chair, tables, kitchen utensils,
waste disposal, staff hygiene. The store should be on the quality standard.
Under tables shouldn’t have gums pasted in it, chairs should not be wobbling,
lights should not be busted, kitchen utensils and equipment should always be
calibrated and checked.
Hospitality: We follow a standard procedure when dealing with customers. For
instance, when serving food, we have the so-called no cross-serving wherein
we ought to use our left hand in serving food. We also call it payakap system.
Its purpose is to avoid bumping our guests’ heads and other parts of their body
as they tend to be on our right side when we serve them.

B. Issues in Strategy Formulation

 On what way are you going to enter a new market, by expansion or by
diversification, franchise?
 Our store is either company owned or franchised. So when we enter a new
market, it is either by expansion (if company owned) or franchising (if not
company owned). Our franchising cost is at least 40 million pesos. Most of
the Shakey’s in Visayas and Mindanao area were franchised because it is
so far from the main office of the company (Taguig City).
 How do you allocate the company’s resources?
Resource Allocation is not being disclosed to public, as it was one confidential
information. But the resources were allocated depending on the need for it; for
instance, a huge percentage (at least 60%) of the resources were allocated
for the back of the house (kitchen) supplies and production, as the company is
generating its income through its product.
 Does the company experience merging with the other company or joining
a venture? If yes, to what company? What are the implications of that
merge or venture to the company?
The company (Golden Pizza Incorporated) has been in merged with the San
Miguel Incorporation, as the Shakey’s in the US was known serving pizza with
beer, and the Shakey’s Philippines came from the US. Aside from that, there is
no merging happened in the company; only partnership as supplier-client like
Coca-Cola Company for the drinks. The implication of the merge in the
company was that the Shakey’s was able to establish its brand identity in the
market during its launch since the San Miguel Inc. was already known in the
Philippines during that time. But today, the San Miguel Inc is not a merged with
the Shakey’s anymore due to some confidential matter and is only now a
supplier of Shakey’s.
PART II: Strategy Implementation
Requirements for Strategy Implementation
 What are the guiding policies, rules, and regulations for the store?
 When it comes to guiding policy, we strictly follow our core strategy which is
the QSCH. In sales, we have the upselling and suggestive selling policy
wherein we motivate our staffs to increase sales through that. In upselling,
the aim is to increase the transaction (sales) of a guests by suggestive
selling or offering product which is not purchased by the client upon
ordering. In suggestive selling, the aim is to just suggest a product or promo
that might result to increase of transaction (upselling).
In production, we follow a certain protocol of checking products’
expiration, the equipment’s’ condition, and the supplies’ inventory and
availability before starting the day.
 How do you motivate employees in order for them to work hard?
Through awards and recognition, like employee of the month, best back of the
house staff, best station. When you are awarded, certain freebies like
certificates and free products were given. That makes employees motivated
to work. Also, we have this ladderized employee development in the company
wherein we disregard credentials (Educational Attainment, etc) when
promoting our employees. As long as we or the other supervisors saw the
passion and dedication to work in an employee, that employee has a chance
to be promoted.
 How do you reward employees for their achievements and good
performance?
Through promotion. When we observed that a certain employee is very
promising or very dedicated to work, always on time always present, always
achieving what must be achieve, we promote that employee to higher level.
B. Issues in Strategy Implementations
 What kind of culture (Internal Environment) does your company have?
Core Values:
Guest Focus Passion for Excellence
Unquestion Integrity Critical Thinking
Internal: Sales-driven
Customer-driven (guest service and guest satisfaction)
Employee development-oriented
Quality-oriented
External: Competition-driven
Aiming for excellence
What is the Company’s Organizational Structure?
 How do you evaluate employee performance?
There are certain criteria or qualification that must be followed in evaluating
employee performance. We have this so-called People Audit wherein we
evaluate our employee based on certain criteria like punctuality,
performance, attendance. From that criteria, we are going to rate the
employee.
 What are the employee benefits if the set goals were attained?
Promotion. As we always value employee performance as much as we value
our guest, we reward our people with recognition and promotion if they
showed excellence in work and achieved the goals continuously. Sales and
People Development; there will be no sales development if we disregard our
people as they are the one who push the goals to reality. So as much as
possible, we recognized their efforts through that way.
PART III: Strategy Evaluation
Fundamental Strategy Evaluation Activities
 What are the external and internal factors that are the bases for current
business strategies you are taking? How do those factors affect the
company?
Internal: Guest Service and Guest Satisfaction with People Development. Those
are the factors that serves as the framework of our core strategies (QSCH). As
the company won’t have lasted without its guest and employees, we focus
our strategies and development to them.
External: Increasing competition is one factor. As Shakey’s is the premiere in
terms of casual dining pizza restaurant, its competitors were driven to match us
or to compete with what we have, and we cannot afford to be outnumbered.
Therefore, we do our very best in dealing with them. Our marketing strategies
were influenced by that threat and makes us strive more in order for us to
maintain our current market share.
 In taking corrective action: How do you take corrective actions for mistakes
committed?
In taking corrective action, we have this so-called KISS-KICK-KISS approach. In
KISS, we commend or compliment the action. We look first at the positive side
of the mistake, may it be simple or small. KICK: is the part where we are going
to tell what is wrong in the action. Then the last KISS will pertain to the
motivation; we are going to motivate the employee to learn from his/her
mistake and take the criticism constructively.
When it comes to punishment for the mistake, we have the last touch policy
wherein the one who served the wrong order or the one who touch the wrong
order lastly will be the one to be investigated first or will face the
consequence. It is due to the fact that you did not check the order before
serving it. Not checking is an action of negligence. Of course, it is a case to
case basis, as there are some mistakes that is ought to be under investigation.
There is a minimal mistake happening inside the store, as the supervisors were
so much committed in checking every employees’ performance and actions.
The mistake was being corrected as soon as it was committed because it was
being spotted by the supervisors as soon as possible.
 How effective do you think are the business strategies of the company?
(Rate 1 lowest to 5 highest). Give sample of its effectiveness.
Rating the effectiveness of our strategies, I am going to rate it 5. Why? It is
because I believe that if our business strategies are not effective, then our
guest will eventually leave us and choose our competitors. But they didn’t;
they are still with us. That only proves that they are satisfied to our quality
product and service, a solid proof of our strategies’ effectiveness. Also, another
proof of our strategies’ effectiveness is our continuous establishment of more
stores nationwide.
PART IV: Porter’s Five Forces Analysis
A. The Bargaining Power of the Supplier
 Who are your suppliers? (At least 3)
Coca-Cola Company (for Drinks)
San Miguel Incorporated (Beer)
Bake Master Incorporated (Frozen meats, the dough and raw materials)
 Is there enough supply needed for the company operation?
Not really. There are times that we are having shortages when it comes to
supplies but it only happens because the inventory were not checked. But with
the inventory being regularly checked, the company will not encounter any
supply shortages.
 Do you have many suppliers or few to choose from?
Yes. Because the raw materials that we needed have so many potential
suppliers and providers. But the company chose to have a fixed supplier when
it comes to raw materials because our core product is food; we avoid the
taste of our raw materials to change because of different suppliers of its raw
materials.
 Is the volume important to your suppliers (Do you have to purchase
minimum quantity/ bulk orders, etc.)
Since our suppliers are our long time partners, volume of orders is not an issue,
though our order is by schedule. We order our raw materials from our supplier
weekly, regardless of its volume, as we can’t have precise projection of what
will be the needed supplies or raw materials in the future because the volume
of customers or people who will consume our product will never be predicted.
Also, we hold the deal, not them. The supplier agrees to our terms and respects
our order decisions as much as we respect their service.
 If given a chance, will you substitute the materials supplied to you for best
quality or price? Why or why not?
No, because our suppliers are our long-term partners. The quality of the raw
materials they supply to us is one factor that makes our product one of a kind.
We value our partnership and no amount of price or quality will make us switch
suppliers. Besides, they are among the best suppliers that the industry have.
 Are the switching costs for supplier high or low?
Yes, because the suppliers are our long-term partners. Therefore, the changes
that may occur if the suppliers were to switch will greatly affect the company
and will cost too much.
 Are supply costs contained or volatile? On what way?
Depending on the cost of the suppliers’ suppliers. When the suppliers’ suppliers
price were to change, of course the price will change.
 If your supplier able to demand from you, or are you the one controlling the
transaction?
Relationships are always two-way. As the respect is mutual, of course the terms
must meet both the needs of the parties. They were able to demand from us
like price increase if needed, and at the same time we were able to demand
from them also, like the volume of our orders.
 Are you supplier-dependent?
Not really, despite being in a long term relationship. We can really change
suppliers when needed and upon approval of the top management, but we
avoid that kind of scenario since we value our relationship.

B. The Bargaining Powers of the Buyers

 Do you have many buyers or few? What percentage is your share in the
market? (Assumption)
Yes we have. As the premiere pizza provider, we have many buyers. In terms of
market share, I can say that we have at least more than fifty percent (50%) of
the market share.
 Do your buyers have influence in the market or even in the company? On
what way?
Yes, they influence us in a way that we tailor our strategic development to suit
their needs. As we are very much customer oriented, we value them and hear
their thoughts. In the company, we have this online we care wherein our guest
may send their comments and suggestions to us so that we will be able to hear
and heed their thoughts.
 Are you dependent on your buyers? On what way?
Yes, we are dependent on our buyers as we will never be on top without them.
They are the one who buys the product that we sell, our development heavily
relies on them. Without our buyers, we are nothing.
 Are your buyers price sensitive? On what way?
Not really. Because there is a minimal difference between the price of our
product and the price of our competitors’ products. Besides, being a casual
fine dining restaurant, our buyers already knows that our product is costly but
with quality.
 What kind of pricing strategy does the company using?
Fixed pricing. We don’t have service charge though we have delivery charges
on order delivery.
 Is there a threat that your buyers might begin to compete against you?
(backward integration) How did you say so?
We don’t see our buyers as threat when they decided to franchise our
company because for us, it’s an opportunity for growth. It’s an opportunity for
our company to be known more by the other people from other places, and
besides, in our franchising, the company still have a say to the franchised store.
 Are there any substitutes available for your buyers? What are those?
Of course, because we have competitors. If they won’t buy to us, then they will
buy to our competitors.
 Are there any incentives for your buyers (e.g. discounts, promos, etc.) What
are those?
Yes. We have this SUPERCARD that offers benefits for our guests. These are : 10%
discount in dine-in and take out, buy one free one pizza in delivery, buy one
take one (limited choices) for large sizes of pizza, free pizza for birthday, free
1.5 coke, etc. This card serves as our reward for our loyal customers. We also
have freebies (free bags, pizzas, etc) for every special occasion. Points earned
in the card may be used to purchase in any Shakey’s store nationwide.

C. The Entry Barriers

 How much does it usually cost for the company to enter the market?
(Estimations)
Almost 40 million for franchising.
 What are the government restrictions and policies that the company faced
upon entering the market?
The permits like Sanitary Permit, Business Permit, Operation Permits, etc.
 Is the industry dominated by one or two large companies?
Yes, like Yellow Cab, Pizza hut and Greenwich.
 Is it difficult and/or challenging to attack or weaken existing companies?
Why did you say so?
Not really, since we are the leading company in the industry. It just hard to
compete for product variation since customers have variety needs and
cravings for foods.
 Will customers have to incur high costs to switch from their present suppliers
to you? Why is that?
Not really, since the alternative suppliers for customers have almost the same
pricing scheme as ours.
D. The Threat of Substitutes
 Is there any existing offering that might substitute yours? What are those?
Yes, like Greenwich, Pizza Hut, Yellow Cab and other casual fine dining
restaurants that offers the same offering as ours.
 How easily can your offering be replaced by another?
Being replaced by our competitor is very minimal since I can say that our
clients were loyal to us. Besides, we have marketing strategies and offerings like
our new product Pizza Scallop that makes our guests chose us instead our
competitor.
 What edge that your offering has compare to its substitute?
Quality product and service that is our edge. We make sure that our guests will
be fully satisfied and will have a reason to come back to our store. Besides, our
product itself is our edge.
 Are switching costs high or low?
No, since the available substitutes offers products which prices are not so
different from ours. You will only incur high switching cost if the substitute is not
in league with casual fine dining restaurants like Don Rogelio’s etc.
 Is brand identity a factor in determining product substitution? Why?
Yes, since Shakey’s is a known brand nationwide. But for price-conscious
buyers, brand does not matter at all.
 Are price and quality a factor, too? Why?
Shakey’s are known for its justifiable price due to its quality. When it comes to
its substitutes, price and quality is a factor too because they are going to find a
product that has a quality of the Shakey’s. But, again, for price-conscious
individuals, quality will not be given much importance as the price does.

E. Degree of Competition or Rivalry

 Are there existing high exit barriers (e.g government penalties) in the
industry?
Not really, since the economic environment of the Philippines does not impose
strict rules when it comes to exiting the industry.
 Where is the company in its life cycle (Introductory, growth, maturity, and
declining phase)?
Growth. Because there are still so much room for development and
improvement to be done for the company.
 Where is the company product in its life cycle (Introductory, growth,
maturity, and declining phase)?
Growth also. Because there are still more chances for product development
since variation and innovation of food products can be boundless.
 Are your rivals similar or diverse from you? On what way?
Similar, since we all offer the same core product; PIZZA. Also, we are in the
same league, being a casual fine dining restaurant.
 Do competitors have good, high value brand identity? Or they considered
commodity suppliers? Why?
Competitors were also known brand like the Greenwich, Yellow Cab and Pizza
Hut.
 Have you been able to match to your competitor? On what way?
We are on the top, and so far, they weren’t able to match us.
 How intense is the rivalry between the company and its competitors?
The competition is intense, since they all aim to replace us on top. The pressure
is on us and therefore we must do our best not to be overtaken by our
competitors.