Strategic management paper of Fiesta Brands, Inc.

• Main Author: Gomez, Luisito Montes
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Food industry and trade; Strategic planning; Fiesta Brands; Inc.
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3660
• Institution: De La Salle University

This strategic management paper features the food processing industry providing an outlook on the future of the food products in the world export market. The first part will showcase the present task environment: the major players, the customers, suppliers and substitutes. Using the five forces of Porter to analyze the food processing industry, the threat of new entrants is low because of economies of scale and high capital requirements. However, the rivalry among competitors and threat of new substitutes are high while bargaining supplier is low due to the requirement of customers of faster delivery and the new social trends. unities of the industry that are caused by the changes in the macro environment. Some of the future threats to the industry are the high substitutes, increasing number of players, and terrorist attack in oil countries while some of the opportunities are higher exports in Asia and Australia, increasing exports of agriculture in the Philippines and the increasing output of coconuts in Philippines. Also, part of the industry analysis of the food processing using strategic dimension framework. This will feature the different strategic groups in the food processing industry using the dimension of technological leadership and specialization. The third part of this paper is the analysis of internal environment the strengths and weaknesses of Fiesta Brands Incorporated, a manufacturer and exporter of coconut based products that are derived using Porters new value chain. This will identify the activities that the company performing that has value to the customers. This paper will also discuss the roles of personal values of key implementers and broader societal expectations, which are also part of the basis of competitive strategy. The paper will also show the competitive advantage of Fiesta using Wharton Model. This framework will elaborate more on how Fiestas competitive advantage of supplying premium quality desiccated coconut eroded. This chapter will discuss why Fiesta should renew its investment in machines, reduction programs, and new people and use these to develop new competitive advantage/s over its competitors. This paper will provide two suggested strategies that the company can pursue to remain competitive in the food processing industry. Each strategy will have its 7S framework, which will provide the company directions on the changes that will be brought about by the new strategies. The use of 8-sit framework, as vital part of implementation, will also be discussed in this paper. This highlights the assigning of accountability to key personnel, who will shape the outcome of plans, leading to good strategy execution and operating excellence. The last part will show how viable the business will be in the next three years, as it implements the proposed corporate and functional strategies to meet its corporate objectives.