INDIVIDUAL FINAL PROJECT

Presented to the

Department of Agribusiness

Management and Entrepreneurship

University of the Philippines, Los Baños

In partial fulfillment

Of the course requirements

In MGT 111

Piamonte, Rommeleen Khryss E.

May 21, 2019

The Business and its Nature

Shakey’s Pizza Asia Ventures, Inc. owns and operates a chain of fast food restaurants nationwide.

The company focuses on casual family dining and offers menu consisting of pizza, chicken, pastas, etc.

Starting with a single store that was established in Metro Manila in 1975, the company now have a total

of 189 stores (Company owned stores and Franchise stores) nationwide and as well as restaurants abroad.

In 2015, Shakey’s was named as the market leader in chained pizza full-service restaurant with

65% and the competitor at 29% and chained full-service restaurant with 26% followed by the competitor

at 16% by Euromonitor, a leading provider of global business intelligence and market analysis.

In 2017, Shakey’s introduced the concept of WOW, which is guest centered. This concept

emphasizes on their want for their guests to come back to their store. It focuses on customer service

quality. The WOW culture starts as early as the selection and hiring period. Employees are introduced to

the basics of guest service this includes knowing how to respond to customers’ inquiries and delivering to

their need and wants. To know whether the concept is effective the Book of Wowing is given to every

branches. This book will reflect on the effectiveness of the concept. Guests are to provide comments,

suggestions and recommendation regarding the service provided by the employees.

About the President of the Corporation

The current president of Shakey’s Pizza Asia Ventures, Inc. is Mr. Vicente L. Gregorio, who has

been the Chief Executive Officer and President of the said corporation since March 2013. Mr. Gregorio is

well knowledgeable with the food business from his thirty (30) years’ experience in the food industry. He

was a former Operations Director in various food service company before assuming the positions in

Shakey’s Pizza Asia Ventures, Inc.

 He became the Executive Vice President and Chief Operations Officer of Shakey’s Pizza Asia

Ventures, Inc. from February 2003 to March 2013. He also serves as a member of the Board of the

Philippine Franchise Association, Cavallino, Inc., Don Bosco Technical College, Bosconian International

Chamber of Commerce, and Plan Master Insurance and Financial Services, Inc.

Board of Directors and Chairman of the Board

There is a total of seven board members or directors namely Christopher T. Po, Ricardo Po Jr.,

Teodoro Po, Leonardo Po, Paulo Campos III, Fernan Lukban, Lisa Cheng, Enrique Gomez Jr., and Vicente

Gregorio.

Christopher T. Po is acting as the Chairman of the board, he was the former President and Chief

Executive Officer of Century Pacific Food, Inc. while his two older brothers Mr. Ricardo Po Jr., and Mr.

Teodoro Po are the Vice Chairmen of Shakey’s Pizza Asia Ventures, Inc. Paulo Campos III, aside from being

a part of the board of directors, serves as an Audit committee member, the corporate governance

committee chairperson and Related party transactions committee chairperson. Fernan Lukban serves as

the Audit committee chairperson, Board Risk Oversight Committee Member, Corporate Governance

Committee Member and Related Party Transactions Committee Member. Lisa Cheng takes on the role of

Board Risk Oversight Committee Chairperson and Corporate Governance Committee Member.

Century Pacific Group, Inc. holds the largest share in the company, a total of fifty-three (53%) of

the shares. The said corporation is operated by the Po Brothers, who also has the higher positions in the

Board of Directors which is presented in the former paragraph. An annual stockholder’s meeting is to be

held every June 30 and this schedule will start in the year 2019. In year 2017, the annual stockholder’s

meeting was held on July 20.

Par Value

Shakey’s Pizza Asia Ventures, Inc. is an example of a stock corporation. Capital stock are divided

inti shares and dividends are distributed to the shareholders depending on the shares they hold.

As the year 2017 comes to an end, the company’s authorized capital was of 2 billion pesos that id

composed of 2 billion common shares with a 1-peso par value. During this time, there were 1,531,321,053

listed, issued and outstanding shares. The company ended 2017 with a market capitalization of Php

20,611,581,373.38 based on the Php 13.46 closing price. There aren’t any treasury shares reflected on the

annual report of Shakey’s Pizza Asia Ventures, Inc.

Retained Earnings

The total retained earnings of Shakey’s Pizza Asia Ventures, Inc. in 2017 is 1,095,525,015.

Appropriations of the retained earnings are not specified in the report. Only the values of the total

retained earnings are reflected on the 2017 annual report.

Dividend

The stock for the Shakey’s Pizza Asia Ventures, Inc. has a minimum board of 100 shares. Stock

prices had a 17% increase from Php 11.50 to Php 13.46 in 2017. Shakey’s Pizza Asia Ventures, Inc. declared

regular cash dividend in May 08, 2017. The dividend rate of the corporation is ten centavos per share. The

payout represented 23% of the previous year’s net income.

Net Income in 2017

2017 was a great year for Shakey’s Pizza Asia Ventures, Inc. There are increase in most of the

aspects within the company and more stores were put up during the said year, a total of twenty-four (24)

stores nationwide. The first international store was established during the year 2017 as well. The

corporation had a fourteen percent (14%) increase in net income. In 2016, the business had a 669 million-

peso net income while in 2017, the business had a 762 million-peso net income.

The company also recorded the total assets of 9, 109M, total liabilities of 5, 123 M, and total

equity of 3, 974M. There is also a system-wide increase regarding the sales. The sales spike up from Php

7.3 Billion in 2016 to Php 8.3 Billion in 2017. Revenues also had a 16% increase in 2017 with 7 Billion and

6 Billion in the previous year.

Social responsibility

It is stated in the financial statement that pensions are given to the employees however that is

the only corporate social responsibility that is disclosed in the annual report of 2017.

Conclusion

The food industry is one or probably the most profitably business to enter to. Filipinos are great

eaters and poultry and rice are the two kinds of food that people usually look for in a restaurant. Since

the Philippines have numerous fast food chains, chicken really appeals to the public.

The change in concept of Shakey’s in the year 2017 boosted up their income, since the concept

targeted the main priority of a business – its customers and providing good customer service. As the
customer service improves, more customers are bond to come back and experience the same warmth

and hospitality. Having well connected stockholders also contributed to the success of the company as

well as the very experienced CEO. Distribution of roles is one of the key factors that influence the success

and was reflected in figures. The Board of Directors were well versed and are given different departments

and expertise to focus on.

Money-wise, I believe a corporation as large as this and handles billions of pesos should have

great contract and partitions. All expenses and sales must be reflected on the accounts especially that a

corporation is being handles by multiple individuals.