A strategic management paper on Ichi-Bun Food Products

• Main Author: Ng, Aubrey Rose
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Bakers and bakeries > Philippines > Management; Business forecasting; Strategic planning; Ichi-Bun Food Products
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3662
• Institution: De La Salle University

Ichi-Bun Food Products belongs to the bakery industry. The family business began in Binondo, Manila in 1995 distributing its bread products to neighbors and households. The company started in manufacture of breads like tasty loaves, hamburger buns and hotdog buns. From then on, the company also produced and added other baked products such as pandesal, buttered toast and pan de coco, and also started distributing in some areas in Quezon City and San Juan. Upon analysis of the potential changes in the macro-environment using the five forces model, the following opportunities were identified: a.) Growing population b.) food continues to be one of the major consumer expenditures c.) development of physical infrastructure and communications technology d.) technology development. On the other hand, there were also threats that were recognized, a.) Higher forecasted inflation rate and price increase of raw materials b.) lower projected GDP growth c.) consumers leaning towards cheaper products d.) consumers look for healthier products. After analyzing the value chain and the financial statements, the following strengths were identified, a.) Inventory system of raw materials b.) fresh and good quality products c.) Quality control for the products d.) good customer service e.) fast delivery service f.) employee productivity . The weaknesses include a.) lack of incentive programs and reward system b.) lack of brand equity development c.) no alternate sources of suppliers d.) inadequate knowledge and experience in research and development of products. e.) complacency of management The vision of Ichi-Bun Food Products is to become the leading and preferred bread producer in Metro Manila. Ichi-Bun Food Products aims to increase gross sales by 20% annually within the next five years and increase net profit by 300% within the next five years. To achieve its objectives, Ichi-Bun Food Products will a.) increase width of product variants, add new product lines of other baked products and address the consumers growing need for healthier products and convenience (Specialization) b.) widen geographical distribution of its products in Metro Manila (Geographical scope) c.) and strengthen brand among the consumers through use of minimal marketing activities. (brand identification).