STRATEGIC
PLAN
Company History
In 1979, Amalia Hizon Mercado, husband Renato Mercado together with their five children, Consuelo Tiutan, Teresita
Moran, Renato Mercado, Ricky Mercado and Romy Mercado established Red Ribbon as a small cake shop along Timog
Avenue in Quezon City. The cakes developed by daughter Teresita Moran are what gave Red Ribbon its prominence in the
dessert market of the Philippines. In 1984, it opened its first overseas outlet in West Covina, California. The company
began franchising in 1999. Today, there are more than 200 branches all over the Philippines; 32 stores all over California;
five in Las Vegas; two in New Jersey (Jersey City and Bergenfield); one in Metropolitan Phoenix; two in New York City;
one in Virginia Beach, Virginia; one in Metropolitan Detroit, and one in Houston, Texas. Other expansion plans continue to
be worked out.
In 2005, Red Ribbon was acquired by Jollibee Foods Corporation. Red Ribbon Bakeshop, Inc. is managed through JFC's
holding company, RRB Holdings.
Nature of Business Operations
Red Ribbon Bakeshop, Inc was founded in 1979 and since then it has become one of the largest bakeshops in the
Philippines that produces and distributes cakes, pastries and other perishable bakery products. It already started its
franchise operations by the year 1999. October 2005, Red Ribbon was acquired by Jollibee Foods Corporation which
resulted in a faster phase of success for the bakeshop.
Commitment
We are committed to serving quality, great-tasting food that offers value for money, friendly and efficient service, and a
clean in-store environment.
Company Values
● Customer Focus - We put our customers at the ● Humility to Listen and Learn - We solicit and
core, ensuring we consistently deliver on our value feedback, acknowledge our mistakes, act
promises of taste, value, and experience. We seek to quickly to rectify them, and take necessary steps to
understand, anticipate, and cater to every customer’s develop our areas for improvement.
needs while recognizing our responsibility to be
actively involved in the betterment of our community ● Integrity - We choose to do what is right all the
and environment. time, deliver commitments, take accountability for
results, and speak our minds with objectivity, courage,
● Spirit of Family and Fun - We contribute to a and concern.
work environment that’s warm, caring, and accepting,
and employ a happy and positive attitude towards ● Speed with Excellence - We set challenging
ourselves, people, and situations. We like to have objectives and execute with urgency and quality. We
wholesome fun and enjoy the company of our consistently seek to improve the way we do things
teammates. and quickly adapt to change.
S.W.O.T. ANALYSIS
SWOT analysis is a technique used to determine and define your Strengths,
Weaknesses, Opportunities, and Threats – SWOT. SWOT analysis can be
applied to an entire company or organization, or individual projects within a
single department. Most commonly, SWOT analysis is used at the
organizational level to determine how closely a business is aligned with its
growth trajectories and success benchmarks.
STRENGTHS
• Complete amenities for • Constant advertisements
manufacturing • Promoted own webpage
• Vast promotional offerings • Investment in brand-building
• Easy distribution of products • Production capacity
• Strategically placed branch improvement
locations • Wide array of product
• Expanded target customer offerings
base.
WEAKNESSES
• Unfamiliarity of other food • Delayed branch expansion
selections • Lack of product information
• Low customer relationship • costs>value
management • Lack of coordination
• Cake advertisement only • Weak branding
• Incompetent customer service
• Limited employee benefits
OPPORTUNITIES
• Unfamiliar/new market • New technologies for
• New customer behavior marketing operations
• Trends and preferences • Online-based orders and
• Attentive and devoted payments
employees • Reasonable prices
• Insurance and rewards of • Branch expansion in fast
employees growing regions
• High level of investment
opportunities
THREATS
• Famous competitors • New trends of cakes
• Customer’s change of brand • High cake pricing
• Customer’s change of taste • Economic recession
preferences • Volatile costs
• Lack of discounts during • Online presence of
special holidays competitors
• New businesses that have the
same products
T.O.W.S. MATCHING
TOWS (threats, opportunities, weaknesses, strengths) matrix is a two-cell
by two-cell matrix that assists companies in determining strategic
alternatives by examining external opportunities and threats and how
they compare to company’s existing strengths and weaknesses. All the
threats, opportunities, weaknesses and strengths are listed on the outside of
the matrix and compared within each cell.
STRENGTHS WEAKNESSES
SO WO
S1, O3 - Development of new products that can be W1, O1 - Entering a new market will give way for a chance
offered to the public. to explore unfamiliar food selections.
S2, O2 - Company’s avenue to try different W2, O2 - Emerging new customer behavior can aid in
promotional approaches that would entice innovating ways to improve customer relationships.
consumers. W3, O3 - Featuring trends and customer's preferences will be
S9, O1 - Offering different selections based on the a better addition to cake advertisements.
market’s wants and needs. W4, O4 - Training attentive and devoted employees will help
OPPORTUNITIES
S5, O7 - Expanding delivery capabilities to hard to improve incompetent customer service.
reach areas through online ordering system. W5, O5 - Giving adequate insurance and suited rewards will
S6, O4 - Strengthen the skills of devoted increase employees benefits.
employees by involving them in the advertisement W7, O6 - Utilizing new technologies for market operations
side of the company. can easily supply a lack of information about products.
S8, O6 - Development of new marketing strategies
that would further strengthen the brand name.
S4, O5 - Increased sales by empowerment of
employees through incentives and bonuses.
S5, O8 - Tapping low income class by having
reasonable prices.
STRENGTHS WEAKNESSES
ST WT
S1, S3, S9, T7- Quick inventory restock implies fast T1, T2, W8 - Generate strategies here that minimize
sales. Add purchase of inventory to lessen profit weaknesses and avoid threats. Overcome Weaknesses by
decrease. making their strengths move toward OS strategy.
S2, S6, S7, T4, T6- Despite competitors' marketing, W8, T6 - Reduce the threat of competition by making new
the public's familiarity with the business will retain investments Joint venture with Asian firm. Possible options
Red Ribbon's operating in the industry.
not exercised by red ribbon.
S5, T3- Continuous listening to the target market’s
concerns and/or feedback is beneficial for further
W2, W8, T4 - Opening R&D departments in EU
improvement of products. W5, T5 - Using better IT technology among firms
W1, T2 - Sell some of the facilities and units not profitable
THREATS
S9, S10, T1, T2, T5- Taking advantage of having a
wide range of products in order to stay up with the T1, T2, W1, W4 - Offering discount and customers oriented
growing number of bakeries. products.
S1, S3, S8, T2, T5, T6, T7- Maintain selling T3, W1, W4 - Offering fuel-efficient products
affordable, but with high quality, products to level the T4, T5, W3, W5 - Increase domestic facilities and recover
competition with competitors with more product from crises by making short- term goals
offering. W1, T1 - Benchmark with strong competitors
S4, S5, T1, T5- Red Ribbon's name will remain on par T1, T2, W1 - Produce the threat of competition by making
with larger competitors due to its geographic new investments.
advantage and expanded target customer base.
S8, S9, T2, T3, T6- Use management skills to plan for
increase in product offerings or introduce a new
service
COMPETITIVE PROFILE MATRIX
A Competitive Profile Matrix (CPM) is an analytical tool that provides
necessary information of competitive advantage based on critical success
factors and serves as the basis for an organization's strategy. This paper
provides for understanding the basic concepts of CPM and its usability in
strategy formulation.
JULIE’S
RED RIBBON GOLDILOCKS BAKESHOP
WEIG RATI WEIGHTED RATI WEIGHTED RATIN WEIGHTE
CSF HT NG SCORE NG SCORE G D SCORE
A. Product Quality .15 4 .60 3 .45 2 .30
B. Customer Service .12 3 .36 2 .24 3 .36
C. Brand equity and reputation .10 3 .30 3 .30 3 .30
D. Marketing and innovation .08 2 .16 2 .16 1 .08
E. Management and HR .12 2 .24 3 .36 3 .36
competency
F. Strategic positioning of .08 3 .24 4 .32 3 .24
branches
G. Technological .15 2 .30 2 .30 1 .15
advantage
H. Production capacity .13 4 .52 3 .39 4 .52
I. Customer loyalty .07 4 .28 3 .21 3 .21
TOTAL 1.00 3.00 2.73 2.52
SPACE MATRIX
The Strategic Position and Action Evaluation (SPACE) Matrix is one of the
strategic management tool for analyzing the company and its environment
to formulating the strategies. It is four-quadrant structure which specify
whether aggressive, defensive, competitive or conservative strategies are
most suitable for a given organization, company or business.
INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC POSITION
Financial Strength (FS) Environmental Stability (ES)
Return on investment= 3 Technological changes= -3 Rate of inflation= -4
Leverage= 2 Demand variability= 3 Barriers to entry= -3
Liquidity= 3 Price range of competing products= -4
Working Capital= 4 Competitive pressure= 4
Cash Flow= 3 Price elasticity of demand= -3
Ease of exit from market= 4
Risk involved in business= -2
Total: 3.33 Total: -3.00
TOTAL Y AXIS SCORE: .33
INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC POSITION
Competitive Advantage (CA) Industry Strength (IS)
Market share= -4 Product quality= -3 Growth potential= 2 Profit Potential= 2
Product life cycle= -4 Customer loyalty= -4 Financial Stability= 1 Technological know-how= 3
Competition’s capacity utilization= -5 Resource utilization= 2
Technological know-how= -4 Ease of entry into market=2
Control over suppliers|& distributors= -5 Productivity, capacity utilization= 3
Total: -2.86 Total: 4.14
TOTAL X AXIS SCORE: 1.28
Strategic Position and Action Matrix
1
CONSERVATIVE AGRESSIVE
0.8
0.6
0.4
0.2
(1.28, .33)
0
-2 -1 0 1 2
-0.2
-0.4
-0.6
-0.8
DEFENSIVE COMPETITIVE
-1
FORMULATION (SPACE MATRIX EVALUATION)
Competitive Advantage + Industrial Strengths
Y= FS-ES
Y= 3.33 +(-3.00)
Y= 0.33
Financial Strengths + Environmental Strengths
X= IS-CA
X= 4.14+(-2.86)
X= 1.28
BOSTON CONSULTING GROUP
The Boston Consulting Group (BCG) growth-share matrix is a planning
tool that uses graphical representations of a company’s products and
services in an effort to help the company decide what it should keep, sell, or
invest more in.
The matrix plots a company’s offerings in a four-square matrix, with the y-
axis representing the rate of market growth and the x-axis representing
market share. It was introduced by the Boston Consulting Group in 1970.
STAR QUESTION MARK
Chocolate Dedication Cake Banoffee pie cakes
Palabok
CASH COWS 🐄🐄 DOGS 🐶🐶
Cheesy Ensaimada Arabica Coffee
Chicken Empanada Rice meals
Butter Mamon Halo-halo
Arroz caldo
EXTERNAL FACTOR EVALUATION MATRIX
An External Factor Evaluation (EFE) Matrix allows strategists to
summarize and evaluate economic, social, cultural, demographic,
environmental, political, governmental, legal, technological, and
competitive information.
Weight Rate Total Weight
(.01-1) (1-4) (Weight x Rate)
OPPORTUNITIES
1. Unfamiliar/new market 0.04 4 0.20
2. New customer behavior 0.04 3 0.15
3. Trends and preferences 0.08 4 0.32
4. Attentive and devoted employees 0.06 4 0.24
5. Insurance and rewards of employees 0.04 3 0.12
6. New technologies for marketing operations 0.06 4 0.24
7. Online-based orders and payments 0.07 3 0.21
8. Reasonable prices 0.05 4 0.20
9. Branch expansion in fast growing regions 0.05 3 0.15
10. High level of investment opportunities 0.04 4 0.16
Weight Rate Total Weight
(.01-1) (1-4) (Weight x Rate)
THREATS
1. Famous competitors 0.07 3 0.21
2. Customer’s change of brand 0.05 1 0.05
3. Customer’s change of taste preferences 0.06 1 0.06
4. Lack of discounts during special holidays 0.03 2 0.06
5. New businesses that has the same products 0.06 2 0.12
6. New trends of cakes 0.04 2 0.08
7. High cake pricing 0.05 2 0.10
8. Economic recession 0.04 1 0.04
9. Volatile costs 0.04 2 0.08
10. Online presence of competitors 0.03 1 0.03
TOTAL 1.00 2.82
INTERNAL FACTOR EVALUATION MATRIX
Internal Factor Evaluation (IFE) is a strategy formulation tool which is used
to examine the strengths and weaknesses in the functional area of a
business. Internal analysis is an attempt to determine the organizational
capability in operations and achieve performance.
Weight Rate Total Weight
(.01-1) (1-4) (Weight x Rate)
STRENGTHS
Complete amenities for manufacturing 0.05 4 0.20
Vast promotional offerings 0.06 3 0.18
Easy distribution of products 0.08 4 0.32
Strategically placed branch locations 0.06 4 0.24
Expanded target customer base 0.06 4 0.24
Constant advertisements 0.05 4 0.20
Promoted own webpage 0.05 3 0.15
Investment in brand-building 0.07 4 0.28
Production capacity improvement 0.07 4 0.28
Wide array of product offerings 0.05 3 0.15
Weight Rate Total Weight
(.01-1) (1-4) (Weight x Rate)
WEAKNESSES
Unfamiliarity of other food selections 0.05 1 0.05
Low customer relationship management 0.05 2 0.10
Cake advertisement only 0.03 1 0.03
Incompetent customer service 0.04 2 0.08
Limited employee benefits 0.04 1 0.04
Delayed branch expansion 0.03 1 0.03
Lack of product information 0.04 1 0.04
costs>value 0.05 2 0.10
Lack of coordination 0.04 1 0.04
Weak branding 0.03 1 0.03
TOTAL 1.00 2.78
INTERNAL-EXTERNAL MATRIX
The Internal-External (IE) matrix is another strategic management tool
used to analyze working conditions and strategic position of a business. It is
based on an analysis of internal and external business factors which are
combined into one suggestive model.
TOTAL IFE SCORE
I II III
1.00 - 1.99
IV V VI
TOTAL
2.00 - 2.99
EFE
RED RIBBON
SCORE
(2.78 - 2.82)
VII VIII IX
3.00 - 4.00
1.00 - 1.99 2.00 - 2.99 3.00 - 4.00
Description:
I, II. IV - Grow and Build
III, V, VII - Hold and Maintain
VI, VIII, IX - Harvest and Divest
GRAND STRATEGY MATRIX
A grand strategy matrix is a tool used by businesses to devise alternative
strategies. The matrix is primarily based on four essential elements: rapid
market growth, slow market growth, strong competitive position and weak
competitive position.
Rapid Market Growth
1
0.8
Weak Competitive Position Strong Competitive Position
0.6
0.4
0.2 (1.28, .33)
0
-2 -1 0 1 2
-0.2
-0.4
-0.6
-0.8
-1
Slow Market Growth
QUANTITATIVE STRATEGIC PLANNING MATRIX
The Quantitative Strategic Planning Matrix is a strategic tool which is used
to evaluate alternative set of strategies. The QSPM incorporate earlier stage
details in an organize way to calculate the score of multiple strategies in
order to find the best match strategy for the organization.
Market Penetration Product Development
KEY FACTORS W A.S T.A.S. W A.S. T.A.S.
STRENGTHS
1. Complete amenities for manufacturing 0.05 2 0.1 0.05 3 0.15
2. Vast promotional offerings 0.06 4 0.24 0.06 3 0.18
3. Easy distribution of products 0.08 3 0.24 0.08 3 0.24
4. Strategically placed branch locations 0.06 3 0.18 0.06 3 0.18
5. Expanded target customer base 0.06 3 0.18 0.06 3 0.18
6. Constant advertisements 0.05 3 0.15 0.05 3 0.15
7. Promoted own webpage 0.05 3 0.15 0.05 4 0.2
8. Investment in brand-building 0.07 4 0.28 0.07 3 0.21
9. Production capacity improvement 0.07 2 0.14 0.07 4 0.28
10. Wide array of product offerings 0.05 4 0.2 0.05 3 0.15
Market Penetration Product Development
KEY FACTORS W A.S T.A.S. W A.S. T.A.S.
WEAKNESSES
1. Unfamiliarity of other food selections 0.05 1 0.05 0.05 1 0.05
2. Low customer relationship management 0.05 2 0.1 0.05 2 0.1
3. Cake advertisement only 0.03 2 0.06 0.03 2 0.06
4. Incompetent customer service 0.04 1 0.04 0.04 1 0.04
5. Limited employee benefits 0.04 2 0.08 0.04 1 0.04
6. Delayed branch expansion 0.03 1 0.03 0.03 1 0.03
7. Lack of product information 0.04 1 0.04 0.04 1 0.04
8. costs>value 0.05 1 0.05 0.05 2 0.1
9. Lack of coordination 0.04 2 0.08 0.04 1 0.04
10. Weak branding 0.03 1 0.03 0.03 1 0.03
Sum Weights 100% 100%
Market Penetration Product Development
KEY FACTORS W A.S T.A.S. W A.S. T.A.S.
OPPORTUNITIES
1. Unfamiliar/new market 0.04 2 0.08 0.04 2 0.08
2. New customer behavior 0.04 2 0.08 0.04 3 0.12
3. Trends and preferences 0.08 3 0.24 0.08 4 0.32
4. Attentive and devoted employees 0.06 3 0.18 0.06 3 0.18
5. Insurance and rewards of employees 0.04 3 0.12 0.04 3 0.12
6. New technologies for marketing operations 0.06 2 0.12 0.06 4 0.24
7. Online-based orders and payments 0.07 3 0.21 0.07 3 0.21
8. Reasonable prices 0.05 2 0.1 0.05 3 0.15
9. Branch expansion in fast growing regions 0.05 3 0.15 0.05 3 0.15
10. High level of investment opportunities 0.04 3 0.12 0.04 4 0.16
Market Penetration Product Development
KEY FACTORS W A.S T.A.S. W A.S. T.A.S.
THREATS
1. Famous competitors 0.07 2 0.14 0.07 2 0.14
2. Customer’s change of brand 0.05 1 0.05 0.05 1 0.05
3. Customer’s change of taste preferences 0.06 1 0.06 0.06 1 0.06
4. Lack of discounts during special holidays 0.03 1 0.03 0.03 2 0.06
5. New businesses that has the same products 0.06 1 0.06 0.06 1 0.06
6. New trends of cakes 0.04 2 0.08 0.04 2 0.08
7. High cake pricing 0.05 1 0.05 0.05 2 0.1
8. Economic recession 0.04 1 0.04 0.04 1 0.04
9. Volatile costs 0.04 1 0.04 0.04 1 0.04
10. Online presence of competitors 0.03 2 0.06 0.03 2 0.06
Sum Total Attractiveness Score 4.23 4.84
Market Penetration
The percentage of customers that utilize a product or service compared to the
overall market for that product or service is known as market penetration. The
term "market penetration" can also be used to describe techniques for
increasing a product's or service's market share.
Product Development
Product development strategy enables product organizations to create a stream
of innovative offerings that disrupt the competition and delight customers.
Product development strategy is a subset of corporate strategy. It sets the
direction for new products by establishing goals and through funding decisions.
Operational Plan
Red Ribbon concentrates on supplying items pertaining to the pastry market.
The objective of the company is to deliver fresh made products suited for any
events. It is recognized for their classic cakes, pastries, and sweet confections.
Key Areas in Objectives Department Involved Budget Duration
Operations
Online Market To increase sales and Marketing Department 150,000 Monthly
profitability of the
Product promotions business by reaching
through various online maximum customers at
platforms. the right moment
Operation To improve its Research & Development 100,000 Annually
employment and
Expansion in developing production.
economies
COMPUTATION OF
BUDGET
ADVERTISING Per Year
Type of Advertisement Quantity Price Total Amount
Facebook Ad 36 times a year 120 4,320
Pamphlet 75 pieces 20 1,500
TOTAL 5,800
