A paper presented to

College of Business Administration and Accountancy

Accountancy Department

In fulfillment of the requirements in

Submitted by:

Date Submitted:
 Alaska Milk Corporation (AMC) is one of the leading milk companies in the Philippines. It
has consistently maintained its leadership in the canned liquid milk category (evaporated and
sweetened condensed), thus, paving the way into growing Alaska into a mega-brand by
competing in the powdered, ready-to-drink, and creams market, among others.
In 1972, Holland Milk Products, Inc. (HOMPI) was established. It was a joint venture
between AMCs former parent company, General Milling Corporation (GMC), and Holland Canned
Milk International B.V. (now FrieslandCampina). HOMPI initially manufactured canned liquid milk
(evaporated milk and condensed milk). It eventually expanded to manufacture powdered milk
and UHT milk.
In 1994, HOMPI was spun off from GMC and incorporated as Alaska Milk Corporation (AMC)
under the control Wilfred Uytengsu, Sr. Shortly after its incorporation, AMC was listed in the
Philippine Stock Exchange (PSE) in 1995.
Wilfred Steven Uytengsu, Jr., eldest son of Wilfred Sr., assumed the position of President
and CEO in 2007. The elder Uytengsu died in April 2010 at the age of 82.
In 2007, AMC further expanded its liquid milk portfolio by licensing Carnation and Milkmaid
from Nestle and acquiring Alpine, Liberty and Krem-Top. This development led to AMCs move to
a dominant position in the category.
Apart from growing its core businesses, AMC endeavors to diversify and explore
opportunities in related consumer product categories. In March 2012, Alaska Milk Corporation
partnered with Royal Friesland Campina, the fifth largest dairy company in the world.
AMC continues to further its mission of nourishing Filipino dreams, bringing in affordable
nutrition across different life stages to every Filipino home for over 40 years. It is committed in
providing nutrition to Filipino households, ensuring high quality standards in its products,
developing innovative marketing plans and programs, and promoting outdoor sports as part of a
healthy lifestyle.
AMC looks beyond selling milk it sells nutrition and by doing so, the Company and brand
Alaska is doing its part in nation building. Through youth sports development programs, Alaska
Milk is able to help nourish children for them to develop into champions in the field of interest and,
in general, in life. Alaska guarantees its customers that all products are made with the best
ingredients and delivered to the market in top quality. Alaska has a new seal of quality signifying
a renewed vigor in providing its customers with the best and freshest products.
 Ultimately, the consumer whom the AMC serve and the level of their satisfaction with the
products they produce become the final judge and jury. They are committed to deliver high quality
milk and other consumer food products from production to consumption. They also respond to
the call to deliver higher quality nutrition to every Filipino home. The following are the products of
the company

The Alaska Milk Corporation belongs to industry that produces dairy products. AMC
engages in the manufacture, distribution, and sale of liquid, powdered, and ultra-heat treated milk
products in the Philippines.
 Alaska Milk Corporation get products from suppliers. Upon receipt of raw materials, the
receiving clerk will bring it to the weighing and staging area. Here, they will weigh the raw materials
and identify the volume that they received from suppliers. This stage is done to know if the raw
materials that they receive are sufficient to their daily processing. Since there are varieties of
products that they are producing, they must combine the raw materials that are needed to
produce each product. After that, they will store the products in the stockroom for cooling. The
temperature in the storeroom must be at 4 oC to preserve the raw materials. After that, they will
undergo the standardization process. This process is done to make sure that the product is of
established standard size, weight, and quality. After standardization, they will filter the milk then
sterilize it. During this stage, the temperature must be at 144oC per 4 seconds. If the product is not
sterilized well, it will be drained. If the sterilization is achieved the product will now move on to the
next process which is homogenization. In this process, they are converting two immiscible liquids
into an emulsion, which is a substance microscopically dispersed throughout another substance.
Next, the product will now go to the filling process wherein the milk products will be filled in tetra
papers, which must be sterilized at 70-75OC. After filling, they must assess whether the packaging
is done properly or not. If the packaging is not done properly, they will assess whether the product
can be reworked or not. If it can be reworked, the product will go back to the filtration process. If
not, they will be downgraded.

If they assessed that the packaging is done properly, the products will move on to the next
process which is the Casing/Palletizing/Sealing stage where the products are being sealed. After
that, the products must be quarantined up to 8 days before they assessing whether the products
must be released or not. If they decided not to release the product, they will again assess if the
product can be reworked or not. If the product can be reworked, it will again move to the process
of filtration. If not, it will be downgraded. However, if they approve the release of the product, it
will now be moved to the Distribution Center ready to be distributed to the retailers to make it
available to the final consumers.
 Alaska Milk Corporation offers Ready-to-Drink products that come in both plain and
flavored milk. These products use Ultra Heat Temperature (UHT) process combined with aseptic
packaging; to ensure the products quality, hygiene, and longer shelf life. The following are the
cost elements of Alaska Fresh Milk, one of the products which are processed using UHT.

Direct Materials (Variable)

- Raw materials
o Skim milk powder
o Butter milk powder
o Whey powder
o Corn syrup solids
o Vegetable fat
o Palm oil
o Palm olein
o Coconut oil
o Soya oil
o Corn oil
o Refined sugar

- Packaging materials
o Tin plates
o Tetra packs
o Cardboard boxes

- Spare parts, supplies and others

Direct Labor (Variable)

- Machine operator wage

Fixed Factory Overhead (Fixed)

- Depreciation of Plant and Machinery
- Plant and Machine maintenance cost

Variable Factory Overhead (Variable)

- Utilities
- Personnel costs
- Scraps
- Damaged Products
 Due to confidentiality, Alaska Milk Corporation is prohibited to disclose important matters
regarding their processes that would be relevant for us to fully understand the company. Since it
is a manufacturing company that produces a large volume of homogenous products, it is safe to
assume that the company is using process costing.
Based on the data that we have gathered, Alaska Milk Corporation records a provision for
excess of cost over the net realizable value of materials and supplies whenever the value of
materials and supplies becomes lower than cost due to damage, physical deterioration,
obsolescence, changes in price levels or other causes. The lower of cost or net realizable value of
inventories is reviewed monthly to reflect the accurate valuation in the financial records. Materials
and supplies identified to be obsolete and unusable are written off and charged as expense for the
year.

Alaska Milk Corporation is using just-in-time as an inventory strategy to increase their

efficiency and decrease their waste by receiving daily the raw materials that are needed only in
their daily production. Furthermore, with the use of JIT inventory management system, the
company reduces their carrying cost. Looking at the companys financial statements, the
inventory consists only of finished goods, goods in transit, and minimal raw and packaging
materials.
Since their products are easily perishable, the company avoids stocking their products
thats why they are reducing their inventory by daily distribution of their products to retailers to be
made available to end consumers. In addition, the company have a good relationship with their
suppliers to maintain their inventory.
 Efficient way

Support sales

Quality products

Measuring
performances
Planning Consolidate
experience
Strengths and
Weaknesses
Benchmark
Organizing
Monitoring Controlling
performance
Management Re-organization

Functions
Upgrade Position Dynamics

Employees union
and demand Evaluate
Directing Staffing Analyze
Rewards and
incentives
Look

Council
Promotions and
recognitions

Motivate

The operational framework generally describes the corporate organization or

management structure. This includes how leaders will govern the company and the hierarchy of
its divisions or management teams. The figure below shows the operational framework of the
Alaska Milk Corporation.
OPERATION

Safety QA QC Maintenance

CMP CP MPP UHT

DISTRIBUTION CENTER
 Alaska Milk Corporation has been trying their very best to serve and provide high quality of
milk products in the market. In achieving this, the company formulated a quality control team
which examines the product at every stage of its development. The quality control team
guarantees that all raw materials, packaging materials, intermediate product, and finished
products meets safety, quality, and regulatory requirements. Any process or material irregularity
and product complaints are studied and resolved by the team to its very roots. The company also
employed laboratory analysts and assistants to do the sampling and the different tests so the
product would be in conformity with the Quality Plan made by the company. They also have a
hygiene auditor which conducts hygiene audits on the different facilities of the company.
Alaska Milk Corporation develops, practices and constantly monitors their program of
Good Manufacturing Practice (GMP) and Hazard Analysis and Critical Control points (HACCP)
which are required for the food industry by the Food and Drug Administration (FDA) and other food
safety regulatory agencies to assure that the products are of high quality and it does not pose any
risk to the consumer or public.

The group decided not to drop any of the product segment but instead, improve the
marketing of the product. Alaska Yoghurt, Alaska Nutribuild 345, Liberty Condensada, and Cow
Bell Condensada are some of the less well-known products of the company.
The target market for Alaska yoghurt are mostly children with its branding as ready-to-
drink milk with fruity flavor that helps in improving the digestive system. The company can
enhance their marketing strategy with the focus of attracting youths that the yoghurt drink is
delicious and healthy. Since the target consumers spends most time in the internet, like social
media, the company should advertise the product in the internet.
Alaska Nutribuild 345 is made with the vitamins and nutrients children ages 3, 4, and 5 need
in mind. It is scientifically formulated as a supplementary food. Even though the market of this
product is for the children, the parents would still decide if they trust Alaska to provide the
nutritional requirement of their children. With this reason, the company should make
advertisements that would persuade mothers that the product can help their children develop
and provide the needs of their children. The internet would also make a great medium for
marketing since the parents with children in these age range are those included in the category of
millennials and a substantive amount of their time is spent on the internet.
Liberty and Cow Bell Condensada are milk products that are more popular in the southern
part of the Philippines. There is already existing market for these products so we focused on
attracting new customer to try and patronize the brand.
These products, aside from being less popular, also are less profitable for the company.
But the group believes on the potential of these products and its qualitative contributions for the
company.
Based on the Ansoffs Matrix, AMC should launch market penetration strategies for the
following products since these are existing products offered to existing market. The group came
up with the following valuation based on certain assumptions for the intensive marketing of their
less known products:

Estimated Pricing for Advertisement

Television Php 300,000 average per showing (rates depend on the

time of the day and length of each ad)
Billboards Php 200,000 per month
Radio Php 20,600 manila base rate (depends on the number of
spots per day and number of days)
Newspaper Php 1,800 base rate (it needs to be multiplied depending
on the size and day of the newspaper)
Advertising Cost Alaska Alaska Liberty Cowbell
Yoghurt Drink Nutribuild Condensada Condensada
Television
300,000 300,000 300,000 300,000
Number of viewing per day
10 10 8 8
Number of days
10 10 10 10
Total
30,000,000 30,000,000 24,000,000 24,000,000

Radio

Average rate
20,600 20,600 6,700 6,700
Number of streaming per day
15 15 10 10
Number of days
20 20 20 20
Total
6,180,000 6,180,000 1,340,000 1,340,000

Newspaper

Average rate
1,800 1,800 1,800 1,800
Columns
6 6 6 6
Modules
7 7 7 7
Total
75,600 75,600 75,600 75,600

Billboards

Average rate
200,000 200,000 200,000 200,000
Number of billboards
4 3 1 1
Total
800,000 600,000 200,000 200,000

TOTAL
37,055,600 36,855,600 25,615,600 25,615,600
 Based on our study for the Alaska Milk Corporations work environment and business
operations, we have observed some improvements to make in order to increase their market share
in the milk and dairy industry. One part of the plan aside from intensive marketing is to add a new
product line for the company. As the Alaska belongs to the industry of dairy products, we suggest
to include ALASKA Ice cream as part of their product line. The following images are some of the
proposed ALASKA Ice cream.

As described in this section, we have chosen Alaska Milk Ice Cream as our proposed
product. Alaska Milk Corporation (AMC) typically sees new product development as the first stage
in generating and commercializing new product within the overall strategic process of product life
cycle management used to maintain or grow their market share. Alaska Milk Corporation belongs
to Milk and Dairy Business Industry, which is usually related with the Ice Cream Industry. The group
came up with this idea when they conducted an interview with Mr. Kim Francia, an analyst in Ultra
High Temperature Quality Assurance; he suggested that the best product to implement is Ice
Cream, theres a huge percentage that AMC will endorse this product in the near future. One of
the factors to consider is the AMC Competitors, which is Nestl, Nestl has been selling Ice Cream
for a long time now and it is time for Alaska to implement it too. The other factor is that investing
in machine is not a big deal in AMC because they might be using the same machine their using for
UHT Tetra Pak Products.
As the group is proposing to add a new product for the company, the ALASKA Ice cream in
specific, it aimed to receive a positive impact of this. Adding new product can attract the
customers and will make them buy it because this is new to them. This operational plan will make
the company more competitive in the market and help them regain leadership as they were once
the leading milk and dairy company in the Philippines. Also, this product development will
strengthen their operational efficiency. In addition to this, marketing strategy shall be formulated
in order to build a strong profile of the new product in the market.
The group is proposing to add only one variant of ice cream for the mean time to test
market acceptance of this product. This comes in a 1.5-liter pack in various flavors that the
consumers will surely enjoy.
The group made an analysis based on the proposed business case and came up with a
decision based on the following assumptions:

Category Details Cost for 1 year (in PHP)

Construction downtime Approximately for two weeks 20,512,500

Leasehold improvements Reconfigure work space and 7,615,000

capacity (750 square meters of
idle workspace is still
available)

New system Technology and Software 12,420,000

Acquisition of New Machines Machines and Equipment for 80,000,000

full process of Ice Cream

Marketing costs Promotion and 36,130,000

Advertisements

It is further assumed that the following production schedule is to be implemented and the
normal capacity of ice cream manufacturing facility is maximized:

Production Schedule
1.5 L Alaska Ice Cream

Production per hour (gallons) 360.00 gallons

Normal manufacturing hours (excluding maintenance hours) 23.00 hours
Normal working days 360.00 days
Annual Production 2,980,800.00 gallons
Gallons to liters 11,283,550.13 liters
Annual production in units 7,522,366.75 units of 1.5 liters
 The group came up with the following figures for the costing of the product:

ALASKA MILK CORPORATION

PRODUCT COSTING - PROCESS COSTING
1.5 Liter Ice Cream
VARIABLE COSTS
Direct Materials:
Water 5,869,600.00
Flavoring 30,271,900.00
Bulking Agents 4,692,800.00

Milk (skimmed, buttermilk, whole milk) 76,305,000.00

Inulin 46,957,400.00
Stabilizers 26,413,500.00
Emulsifiers 25,084,000.00 215,594,200.00
Labor cost 15,390,000.00
Utilities/Maintenance 10,000,000.00
Total Variable Costs 240,984,200.00 240,984,200.00

Maintenance Cost 12,450,500.00

Depreciation (Leasehold improvements, new system, new machine) 5,001,750.00
Marketing Costs 36,130,000.00
Total Fixed Costs 53,582,250.00 53,582,250.00
Total Product Cost 294,566,450.00

PRICING BASED ON COST

Total Product Cost 294,566,450.00

Divide: Number of units to be produced (1.5L unit) 7,522,366.75
Cost per Unit 39.16
Mark -up Pecentage 2.50
Selling Price 97.90

*All figures are based on best estimates available from the Bloomberg Financial Laboratory and its
industry competitor, Nestle Philippines, Inc.
*Figures are based on the production of its budgeted production in units.
 BREAKEVEN ANALYSIS

Total Fixed Cost for Period 1 53,582,250.00

Selling Price per Unit 97.90
Variable Cost per Unit 32.04

Total Variable Cost 240,984,200.00

Number of Units 7,522,366.75
Total Variable Cost per Unit 32.04

Computation: 52,582,250 / (97.90 - 32.04 )

Break-even Sales in units 813,563.51 units of 1.5L
Ice Cream

FLEXIBLE BUDGET
(in thousands of Philippine Pesos)

Number of Units 0 500 813.6 1500 2000

Sales price per Unit 97.90 97.90 97.90 97.90 97.90

Sales - 48,948.43 79,648.89 146,845.30 195,793.73
Cost of Sales
Variable Cost - 16,020.00 26,067.74 48,060.00 64,080.00
Fixed Cost 53,582.25 53,582.25 53,582.25 53,582.25 53,582.25
Gross Profit (53,582.25) (20,653.82) (1.10) 45,203.05 78,131.48

Alaska Ice Cream Demand (based on 2014 Euromonitor Report)

Total Demand for Ice Cream in the Philippines 64,000,000.00 liters

Market Share on Ice Cream (assumption) 0.10
Demand for Alaska Ice Cream 6,400,000.00 liters
Divide: 1.50 liters
Demand for Alaska Ice Cream, in units 4,266,666.67 units of 1.5L Ice Cream
 CAPITAL BUDGETING

Initial Costs
Construction downtime 20,512,500.00
Leasehold improvements 7,615,000.00
New system 12,420,000.00
New Machines 80,000,000.00
Marketing Costs 36,130,000.00
Total 156,677,500.00

Annual Cashflows
Incremental Revenue 97.90 x 4266666.67 417,693,292.14
Incremental Cost
Product Cost 32.04 x 4266666.67 (136,685,605.37)
Maintenance Cost (12,450,500.00)
Depreciation (Leasehold improvements, new system, new machine) (5,001,750.00)
Marketing Costs (36,130,000.00)
Total Incremental Income 227,425,436.77
Less: Tax Expense (68,227,631.03)
After-Tax Income 159,197,805.74
Add: Depreciation 5,001,750.00
Annual Cash Flow from Alaska Ice Cream 164,199,555.74

*All figures are based on previous estimates and assumptions. The group does not warrant absolute
accuracy of the figures. These figures are based on the best estimates provided by the groups
research.
 Present Value of
Period Cashflow Discount Factor
Cash Flow
0 (156,677,500.00) 1.00 (156,677,500.00)
1 164,199,555.74 0.95 155,256,766.02
2 164,199,555.74 0.89 146,801,026.87
3 164,199,555.74 0.85 138,805,812.09
4 164,199,555.74 0.80 131,246,040.18
5 164,199,555.74 0.76 124,097,995.63
6 164,199,555.74 0.71 117,339,254.57
7 164,199,555.74 0.68 110,948,614.38
8 164,199,555.74 0.64 104,906,027.21
9 164,199,555.74 0.60 99,192,537.07
10 164,199,555.74 0.57 93,790,220.38
11 164,199,555.74 0.54 88,682,129.71
12 164,199,555.74 0.51 83,852,240.65
13 164,199,555.74 0.48 79,285,401.52
14 164,199,555.74 0.46 74,967,285.86
15 164,199,555.74 0.43 70,884,347.44
16 164,199,555.74 0.41 67,023,777.84
17 164,199,555.74 0.39 63,373,466.19
18 164,199,555.74 0.36 59,921,961.22
19 164,199,555.74 0.35 56,658,435.34
20 164,199,555.74 0.33 53,572,650.67
Net Present Value 1,763,928,490.82

Cost of Capital Dairy and Milk Sector - 5.76%

Based from the net present value analysis, Alaska Milk Corporation should accept the
proposed project since it has a positive net present value of P1,763,925,490.82. It simply shows
that the project is financially viable since the project is expected to add higher value to the firm
rather than investing the amount in financial institutions, In addition to that, the project will
generate a higher rate of return. The goal of the management is to increase shareholders wealth
and increase company earnings, thus, a positive net present value is a good measure of how well
the project would perform to meet its goal. Net present value method takes into consideration the
time value of money and risk adjustment. Accordingly, investing in a project that has a net present
value greater than zero should rationally increase the companys earnings or the shareholders
wealth.
Alaska Gives Back
While unceasingly leading the milky way, Alaska remains committed in its share in
nation-building.

More Than a Roof

Located in Bayan-Bayanan, San Pedro, Laguna, the Alaska Gawad Kalinga Village shelters
more than 120 families. In addition, AMC also paved way for livelihood opportunities. Programs
such as furniture and bag-making and Alaska-enriched yema, polvoron, and pastillas products
were introduced to the community. Now, Alaska provides trainings, supplies raw materials, and
assists in the marketing and sales of the communitys finished products.
 Alaska believes that providing decent homes and livelihood programs marks the beginning
of the transformation of a person, a family, and a community towards progress and development.
Long after the last brick has been laid, Alaska Milk will continue to support its adopted community
assuring them not only of a roofed community but also a brighter future.

Alaska and Childrens Hour

Alaska Milk Corporation and Childrens Hour have enjoyed a shared mission and a long
collaboration in creating a brighter future for Filipino children. Childrens Hour is a non-profit
organization that raises funds through the power of one hour. These funds are then deployed to
carefully selected projects that help children in the areas of education, nutrition, shelter,
protection, and total development in the form of grants.
Since 1999, AMC have participated in the Childrens Hour fund raising campaign, which
taps individuals to donate one hour worth of their salary once a year to programs committed to
the welfare and development of Filipino children. AMC is one of the first companies to join
Childrens Hour campaign and has been recognized as one of the Top 20 contributors.
Alaska Milk looks forward to a continuing partnership with Childrens Hour in making the
world a better place, one hour at a time.
COMMITMENT TO SPORTS
Alaska Milk Corporation believes that sports play an
important role in instilling the values of determination, discipline,
hard work and team work among the youth. These fundamental
values develop character and are necessary attributes for success as
much as good health and proper nutrition especially through milk.
Alaskas Sports Development Program is a holistic approach to Sports Marketing that
adheres to mothers natural instinct of wanting only the best for her children by promoting proper
nutrition, an active lifestyle, and the importance of character-building in the country. This is what
Alaska Milk Corporation believes and encourages. NUTRITION.ACTION.CHAMPION.
For the Company, the sports development program through Alaska Power Camp, serve as
a vehicle for the youth to develop their skills in basketball and football, develop a healthy and
active life-style and become champions in whatever they do be it in sports or in life.
The number of participants wanting to join the Alaska Power Camps is a quantifiable
measure of the programs success. What is
more fulfilling is when you see so many
smiling and laughing children enjoying the
training and the competition. Alaska Milk
Corporation is proud of the fact that the
program has been cited by the Philippine
Sportswriters Association for its
outstanding contribution to youth and
sports development in the country,
particularly on the grassroots level.
 In the absence of guaranteed public or private demand for milk products, milk producers
in the Philippines have no guaranteed market. As such, the burden of managing the product mix
is on the management at all levels, from farm to retail outlets. In this context, Alaska needs to work
on its marketing. Since they are relying heavily on their old products, they ought using market
penetration strategies by advertising and selling more products to existing markets. AMC can craft
good marketing ideas like the soy milk brand Vitamilk, for instance, has been successful in
attempts to encourage adults to consume soy milk by positioning it as a healthy energy drink. The
promotions of Vitamilk uses the hashtag #pagudtom, which is a portmanteau of the Filipino words
pagod (tiredness) and gutom (hunger). It highlights how Vitamilk can perk up tired office workers
or boost ones energy prior to a sports game. This approach has been seen to bring benefits not
only to sales of soy milk but also to other drinking milk products categories. This as well is a good
marketing strategy to new markets.
Another challenge for AMC is the industrys competitive landscape. Though Alaska Milk
Corporation is leading the canned liquid milk category (evaporated and sweetened condensed),
there are still a lot of opportunities for the said corporation. This year, Nestl Philippines Inc.
dominated drinking milk products in 2016 with a value share of almost fifty percent (50%). This
strong position is partially due to the companys presence in several drinking milk products
categories including dairy only flavored milk drinks, powder milk and shelf stable milk. Its leading
brand remains Bear Brand, which ranked first in both powder milk and shelf stable milk in 2016.
With this information at hand, Alaska Milk Corporation can create new ideas to slowly reach its
position as the leading drinking milk company in the Philippines.
On the workers perspective, AMC seems to lack good pay considerations for homegrown
talents, simply put, talent retention is not existing. An insider told the group that the company is
not putting an effort to incentivize their employees.
The company has an efficient and effective production and distribution process. Perhaps
because of the companys long experience in the industry, it has already employed efficient and
effective production processes. But AMC should never settle for what it has in the present. Whats
best for now, might not be the best in the future. Thus, AMC should actively search for new facilities
and machines that will improve the companys production and distribution process.
Overall, AMC has an excellent position when it comes to its processes and in the industry.
But just like how a famous clich goes, You'll never reach perfection because there's always room
for improvement. Yet get along the way to perfection, you'll learn to get better.
 There is no such thing as the pinnacle of being the best company. There would always be
ways in which the company can improve its process, manpower, and environment. Challenges will
also be a constant partner of the business with its changing environment. With these reasons, the
company should search and develop for the most efficient and effective ways to solve their
problems and enhance their overall operation and management.
Based on the Daily Philippine Inquirer, the country imports 98 percent of its milk and other
dairy product requirements. This issue made the Department of Agricultures focus in favoring the
local production of dairy products. Since Alaska Milk Corporation rely heavily on importing dairy
products, this issue can become an opportunity for the company to lessen their input cost by
making the local dairy farmers as their suppliers.
Improvements on how the company sells its products to the market can give the
opportunity to have a wider set of consumers. There are several products the company is offering
in milk and dairy categories. If the company improves the marketing strategies of its different
products, then there is a chance that AMC will not only lead in canned liquid milk category but also
to other milk category. Developing the full marketing potential of the products would also be in
accordance to their mission statement, to build on the strengths and competitive attributes of
ALASKA brand and develop its full marketing potential.
Though improved marketing strategies might be effective, AMC can still venture on new
products and ideas like Alaska Ice Cream to magnify their market share and profits. This new
product can compete with the same products offered by their rivals in the industry. Thus, might
decrease their margin in market share with the top-most player in the industry. The group also
found out that investing in this product can lead to companys increased and improved
shareholders wealth.
Human resource is one of the greatest asset of a company and this is also true with AMC.
Employees help the management to achieve the goals of the company, with this reason, AMC
should improve the considerations given to their employees especially to the homegrown talent
which, according to an insider, results to a non-existing talent retention. There is also a need in
training the Human Resources staff of the company to ensure that the employees working in the
company are competent, effective and have a chance to develop as an individual.
The newest product of the AMC is the Ultra-Heat Temperature products that has the
highest cost of manufacturing. This can be a room for improvement for the company to improve
their operating efficiency and lessen the cost incurred in production. The company may invest in
their Research and Development team for the development of new ways to sterilize the product
that could limit their cost.
The business world is a dynamic one. Companies should know how to keep up with the
changing environment and make opportunities out of it. As a business, AMC should not only be
contented in what the recognition the company is receiving now but to aim higher and achieve to
become the best company in milk and dairy products while continuing to serve their consumers
with the highest quality product they could provide.
 Country Report- Philippines (2016). Drinking Milk Products in the Philippines. Retrieved on
March 28, 2017 from EuroMonitor International: http://www.euromonitor.com/drinking-milk-
products-in-the-philippines/report
About Alaska (2016). Nourishing Filipino Dreams. Retrieved on March 28, 2017 from Alaska
Milk Corporation Website: https://www.alaskamilk.com/v2/
Horngren, C. T. (2015). Cost accounting: a managerial emphasis (15th ed.). Upper Saddle
River, NJ: Pearson/Prentice Hall, Pearson/Prentice Hall
VanDerbeck, Edward J. (2013). Fundamentals of Cost Accounting. Singapore, Singapore:
Cengage Learning Asia
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from Philippine Export Website, Board of Investments page:
http://www.philexport.ph/c/document_library/get_file?uuid=bf79c25b-ea6f-4b3f-a3f1-
332f93eb00ea&groupId=127524