A strategic management plan for Greenwich Pizza Corp.

• Main Author: Magat, Anna Liza L.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2186
• Institution: De La Salle University

The First Greenwich Pizza store was opened by Mrs. Cresida Tueres in 1971 at the Greenhills Commercial Center. Originally a modest over-the counter affair, Greenwich grew to a total of 50 outlets before it was acquired by Jollibee Foods Corporation in May 1994 as part of its diversification into other segments of the fastfood industry. The new reorganized Greenwich Pizza Corporation was incorporated on July 14, 1994. Targetting the Filipino youth and the class CD markets, Greenwich has a network of 102 outlets nationwide as of September 1997. It occupies the third spot in the pizza segment of the fastfood or quick service restaurant (QSR) industry, behind Shakeys and Pizza Hut. With the support of Jollibee, it has achieved an average sales growth of 149% for the past three years. For 1998, Greenwich aims to gain the top position in the pizza segment. For this year, it plans to surpass Shakeys 108 branches. The increase in personal disposable incomes, population growth and changing consumption patterns of Filipinos have made the QSR industry as flourishing business. The strong economic growth in 1996 is expected to continue in the coming years although some adverse effects will be felt due to the currency crisis. Economic analysts see bright things ahead for the fastfood industry. Market saturation will be unlikely more and more people will be able to afford fastfood products. Classified according to major products, QSR players are divided into five major sectors: hamburger, pizza, doughnut, chicken and noodles. Hamburger chains dominate the industry, followed by the pizza restaurants. A structural analysis of the pizza sector indicates the serious threat posed by substitute products, particularly the hamburger segment. Intense competition through aggressive and advertising is evident among the top three pizza chains. The strong bargaining power of buyers pressures the restaurants to continuously improve their products and services to meet increasing customer demands. On the other hand, there are substantial entry barriers due to high capital requirements and product differentiation. A single purchasing division handles requirements of Jollibee and its subsidiaries, including Greenwich. Close coordination with accredited suppliers to upgrade quality standards of raw materials and other inputs minimizes susceptibility to powerful suppliers.