A strategic management paper on Albergus Catering

• Main Author: Topacio, Michele C.
• Format: text
• Language: English
• Published: Animo Repository 2003
• Subjects: Food service > Philippines; Albergus Catering
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3913
• Institution: De La Salle University

Filipinos in general love to eat and enjoy get-togethers given their hospitality and gregarious nature. Traditions have it that feasts and celebrations are always an integral part of the Filipino social life. Recognizing this unique passion of FIlipinos for food, the owners of Albergus Catering have ventured in food service industry and have slowly established its credibility for over 25 years. Although the company has been quite conservative in its way of expansion, the owners are now ready to face the intensifying competitive landscape of the food business, backed by its accumulated capital and stability gained over time. The aim is consistent growth and profitability over the long haul, and definitely not just short-term stardom. In the midst of turbulent macroeconomic environment and globalization challenges, food-related industries are seen to hold up with Filipinos still spending about half of their budget on household items. The peculiarities of food consumption are primarily determined by nation's economic health and population profile. The interplay of these two factors gives rise to other elements, which greatly influence food consumption. Apparently, the increasing economic pressures are forcing housewives to seek employment outside the home in order to augment the family income. The increasing labor force participation of women has stimulated the need for and interest in food expenditures outside the home. Growing demand for out-home food consumption propels the demand for food service. With the growth of regional centers and improving mass transportation system, today's increasingly mobile society tends to eat meals away from home in a hurry. Eating out is a way of life as encouraged by the malling habit of families particularly on weekends. Rising fast-food patronage has taken the place of out-of-town travel or vacation for the ABC classes in Metro Manila. Hence, the food service industry shows high potential growth from the increasing incidence of eating out. Giving the said changes in the macro environment, it is highly imperative for Albergus Catering to capitalize on opportunities and combat elements that threaten its survival in the marketplace. A proposed corporate strategy for the company would be to form strategic alliance with prominent events planner in order to overcome its present limited marketing activities, as well as address the external threat of increasing competition. With the expected increase in brand mileage and market awareness of the internal strengths of Albergus relative to the new players in the industry, the company seeks to attract new clients and increase its revenue generated from catering functions. Another proposed corporate strategy for Albergus Catering is the diversification into production of Gournet-to-Go or convenience food items. This strategy seeks to address the increasing threat of substitutes from the proliferation of supermarkets and convenience stores that are providing take-out or fast-food services at their premises. Furthermore, this strategy seeks to exploit the opportunity from the rising demand for out-home food consumption in view of the increasing participation of women in the work force, and the rising disposable income as a result of dual-income families. As a result, Albergus can increase its sales and optimize the current excess production capacity of its commissary at the same labor cost, which is not maximized due to catering's seasonal demand. To successfully implement the above-mentioned strategies, corresponding changes need to be implemented in the company's current structure systems, staff, style, skills and shared values. Ultimately, all these lead to increased sales, profitability and return consistent with the vision of Albergus in being the country's premiere foodservice group.