Mang Inasal :

a success
--------------------------------------------

A Case Study
Presented to Jupiter Q. Whiteside ( Instructor, ACLC College Taguig ) by Frias, Mark Ryan Carl V. Audal, Mirasol G.

Acknowledgement
This Case Study would not have been possible without the guidance and the help of several individuals who in one way or another contributed and extended their valuable assistance in the completion of this study. First and foremost, our deepest gratitude to our Almighty God for the blessings, wisdom and knowledge that he showered upon us. We also wanted to thank our family for the love, concern and moral support. To our friends and special someone who inspired, encouraged and fully supported us for every challenges that comes our way. And also to Ms. Rosalinda Pano, and Anthony Marcos who devoted their time in helping us for the accomplishment and completion of this presentation.

To our professor, Mr. Jupiter Whiteside and to our respective consultant Mr. Jun Cerada for some advises, assistance and untiring effort in encouraging us to pursue this study.
We would like also to extend our thanks to Ms. Amelita Baronia who inspired us.

Learning Objectives:
To understand and know the rationale behind the story of success of Mang Inasal

Why Edgar Sia II InJap sells Mang Inasal to Jollibee Food Corp. (JFC)

The man behind the success of is no other than

Background of the Study

Fast food industry has been in existence for the past years. The growing popularity of the industry gave way for many businessmen to put up many branches or chains in different parts of the country. This leads to the birth of fast food chains, by which Jollibee, McDonalds, KFC, Mang Inasal, Chowking, WOK Express and Greenwich are few examples. People prefer to go into fast food chains not just because of their food preference but because they serve their customer in a quick manner. Fast Food Industry is now evolving in the food service industry. Malls have been the place for these because consumers are more of hanging out while eating than buying and going around the mall. It has been fast growing in the industry because of low budget of capital and easy to manage due to franchise offers from different sectors.

Company Overview
Mang Inasal Philippines, Inc. operates quick service restaurants. It specializes in chicken inasal and various pinoy products. The companys menu include pinoy palamigs, pinoy and keso burgers, beef sinigangs, and bangus sinigangs. The company was founded in 2003 and is based in Iloilo City, the Philippines. It has additional offices in Luzon, Visayas, and Mindanao. As of November 22, 2010, Mang Inasal Philippines, Inc. operates as a subsidiary of Jollibee Foods Corp.

Company Profile
Mang Inasal (Ilonggo term for Mr. Barbecue), the Philippines fastest growing barbeque fast food chain, serving chicken inasal, pork barbeque and other Filipino favorites, was first established on December 12, 2003 in Iloilo City by businessman Edgar Sia II . Apart from the usual food presentations of multinational food company copycats, Mang Inasal endeavors to adhere to elements that bear a distinctively Pinoy stamp-grilling with charcoal, rice wrapped in banana leaves, a marinade concocted out of local spices and herbs, bamboo sticks for skewers, and the ambience that encourages kinamot (Ilonggo term in eating with the hands) whenever chicken inasal is served.

Cont.

Company Profile
Currently, there are 422 branches nationwide and with over 16,000 employees system wide. MANG INASAL is doing its share in alleviating the unemployment burden of the country. The presence of every MANG INASAL in a certain area provides not only employment but also opportunities to community members including suppliers of kalamansi, charcoal, banana leaves, vegetables, bamboo sticks, and other ingredients. It also indirectly gives income-generating activities to many. Mang Inasal is operating at the following areas: Bacolod, Iloilo, Roxas, Laguna, Bicutan, Metro Manila, Davao, Cagayan De Oro, Koronadal, Cavite, Cebu, Boracay, Baguio, Pangasinan, Tuguegarao, La Union, Pampanga, Bulacan, Mindoro, Agusan, Zamboanga, Ozamiz, Iligan, Surigao, General Santos, Pagadian, Batangas, Lucena, Naga City, Davao del Norte, Davao del Sur, Tagaytay, Palawan, Tacloban, Ilocos Sur and Tarlac. Mang Inasal is targeting to open 500 stores before 2012.

Cont.

Company Profile
Mang Inasal Iloilo Corporate Office is located at FourSeason Hotel, Delgado St., Iloilo City. The office fax numbers are (033) 508-7111 and (033) 508-5111. Manila Corporate Office located at 2316 Aurora Boulevard, Tramo St., Pasay City with fax number (02) 854-5692. You can also visit its website at www.manginasal.com or you can email at info@manginasal.com In Mang Inasal, Pinagsikapan naming laging mabilis, laging masarap, at laging abotkaya so that the Pinoy can truly say, Kumbinsing!

The man behind

Edgar "Injap" Sia II is the man behind Mang Inasal, one of the fastest growing food companies in the Philippines, which has become a modern icon of the Ilonggo culinary culture.

His parents gave him the nickname INJAP because Sia is originally from China while Jaruda, his mother's name, is originally from Japan. INJAP stands for Intsik-Japan. His parents are businesspersons and it was expected that he take up some business-related course in college.

Born into a family of Chinese-Filipino entrepreneurs, he was exposed to business from a very young age. He worked on their family own grocery store as cashier, stacking merchandise, taking inventories or manning the counter after school. at age of 10. The family store became the training ground that cultivated Mr. Sias drive for success. He studied architecture in University of St. Augustine Iloilo but dropped out a year short before graduating.

Sia's first taste of running a business was when he was 20 years old.
His early business ventures are express photo shop, Laundromat and small budget hotel. All these are based in ILOILO.

Cont.

Then, he cooked up the idea of operating Mang Inasal, the specialty of which, is grilled chicken. It opened on December 12, 2003. In 2003, Sia opened the first Mang Inasal on a mall parking lot. With P2.4 million of borrowed money, he started the MANG INASAL venture. By 2009, Mang Inasal has 100 stores. Today, Mang Inasal has 422 outlets nationwide and has even overtaken McDonald. Each store employs an average of 40 people, thus generating jobs in the communities where they operate. This has become a market for local products needed by the store.

Sia considers sheer hard work and innovation as the primary reasons of Mang Inasals success.
He also cites the UNIQUENESS that allowed him to beat the odds as a new player in the fast food industry. While he listens to his instinct, Sia is very calculated and strategic in his approach to business. He firmly believes in hard work and perseverance, and

encourages aspiring entrepreneurs to do the same.

The phenomenal growth is due to a totality of factors including:

good business concept marketing strategy quality of food affordable pricing and effective expansion

But the X FACTOR which has made all these happen is the blessing from God, Sia says

He also urges them to believe in their capacity to make their dreams come true, saying Nothing is impossible with the right attitude. Do not

be intimidated by problems. Instead, look at them as opportunities for growth. I was lucky to acquire the right entrepreneurial attitude as a young boy. You could say I developed the right asal (behavior) for inasal, he quips.

MANILA, Philippines The owner of Mang Inasal Philippines Inc., which was recently sold to giant JOLIBEE FOOD CORP., said letting go of his chicken-based business was painful. In a letter to his Mang Inasal Family, Edgar Injap Sia II expressed deep sadness like a father parting with his child as he hands over the care of the restaurant to the giant conglomerate. That Jollibee will be paying P3 Billion for a 70% stake in Mang Inasal has made Sia a very successful businessman, according to bloggers and online commentators. The buying price of Jollibee, which courted Sia for the transaction, values the entire Mang Inasal business at P4.3 billion. Not a bad deal for a business that has an estimated annual total revenues of P2.6 billion and system wide sales of P3.8 billion.

from Entrepreneur.com.ph Mang Inasal and Jollibee The biggest news among entrepreneurs this week is the decision of Edgar Injap Sia II to sell majority stake of his baby, Mang Inasal, to Tony Tan Caktiongs Jollibee Foods Corp. for P3 billion. From this story, entrepreneurs can learn two lessons. First is the discernment and the courage a successful entrepreneur like Tan Caktiong has in giving an unsolicited offer to acquire Mang Inasal. In JFCs disclosure to the Philippine Stock Exchange, the company said the offer to acquire Mang Inasal, seen by many as the next Jollibee, was unsolicited.

It takes guts and courage to approach a competition with an offer like that.
Second: Sias courage and discernment that Mang Inasal may be better off under JFCs care. In his letter to the Mang Inasal Family, Sia said the sale will pave the way for a better Mang Inasal and for the brand to go global. Although he said he was deeply saddened by the decision, Sia said it was also something that gave him joy, knowing that Mang Inasal will be under the care of the countrys largest quick service restaurant conglomerate. Whether you agree or not with JFC and Sias deal, entrepreneurs should note that successful businessmen are courageous and are willing to make tough decisions and take bold moves for their ventures. They never back down in the face of risk, they are unafraid to take chances. So what is that one chance that you are still hesitant to take?

Importance of the Study

Since Mang Inasal is all about Food and Beverage, a product that categorizes as one of the most highly in demand in food, it is important to make a study to be able to know how it is being served, know its mission and vision for the benefits of the patronizes and since Mang Inasal is the fastest growing quick serve restaurant (QSR) in the country today, it is important to know some facts for the upcoming restaurant aspiring entrepreneurs in Fast Food industry.

Research and Design Methodology

This study is entirely based on the availability of primary data we gathered from interview, company profile and in the internet. This data are presented to determine the strengths, weakness, opportunities and threats of the business. SWOT analysis helps to distinguish between where your business is today, and where it could be in the future. The PEST model is also used in this study. The PEST Analysis or model is another tool, quite similar to the SWOT model, but it is more specialized and focused on the external environment and important factors "out there" that can affect present and future business. The PEST acronym stands for Political, Economic, Social and Technological. Of course, once political, economic, social and technological factors are identified which is the first step. The next step is to create a business strategy or strategies that will take advantage of these trends and changes, while minimizing risk to the company from those trends and changes

External Assessment (negative and positive assessment) PEST

(-) Purchasing power of the Filipinos weak because of the unstableness of the administration. This definitely affects the market profitability of business. (+) Rapid increase of population and will increase their market share. (+) Present but not very significant government regulation.

External Assessment (negative and positive assessment)

(+) There are people willing to pay for the convenience that Mang Inasal has even if many people are minimizing their expense. (-) 12% value added tax (+) Rising consumer awareness on health and safety concerns (-) Oil Price Hike. The Philippines imports fuel from other countries. It affects the whole operation of the business.

External Assessment (negative and positive assessment)

(+) Filipinos love for food (-) Changing Preference of Customers (+) The power of media to the consumers. Mang Inasal has TV commercials, Magazine and Newspaper Ads and by using well-known personalities for its advertisement.

(+) Working class has no time to cook, find fast foods for convenience.
(-) The rise of other restaurants that offering unlimited rice in the market ex. Tokyo Tokyo and dennis the grill boy are threat it can kill the strategy of Mang Inasal.

External Assessment (negative and positive assessment)

(+) Delivery Service within Metro Manila through text and call. (+) Internet access. Through this you can easily advertise your product and it is an advantage for Mang Inasal because it has a website.

Strengths, Weaknesses, Opportunities, Threats (SWOT Analysis)

Internal Factors: Strengths Weaknesses

1. Endorsements 2. Large Target Market 3. Market leader in Barbeque fast food chain 4. Accessibility 5. Strong Commissary System 6. Unlimited rice promotion

1. Filipino Culture 2. Unhealthy food 3. Brands under the Mang Inasal 4. Lack Research for other countries 5. Cleanliness

Strengths, Weaknesses, Opportunities, Threats (SWOT Analysis)

External Factors: Opportunities Threats

1. Local culture and traditions 2. Cultural Diversity 3. Brand Acquisitions 4. Urban development 5. Philippines being an Agricultural nation.

1. Foreign-owned and local SMEs 2. Global financial crisis 3. Sanitary Standards/Health and Safety issues 4. Oil Prices 5. Political Instability in the country

Course of Action
Mang inasal has relied on their unlimited rice promo to make them one of the biggest fastfood chains in the Philippines; big enough for Jollibee to consider them as threat. However, this promo/strategy has been easily copied by their competitor, specifically Chicboy. Mang Inasal needs to come up with new promos and strategies. A specific strategy that they could do is to capitalize on their image the first fast food chain. By offering Chicken all you can to the consumers, Mang Inasal will further bolster their image as the first barbeque fast food chain in the Philippines. However, this promo wont offer unlimited rice at the same time, the customers must purchase rice per cup.

Course of Action
Another problem of Mang Inasal is that ever since the takeover of Jollibee began, their chicken began to become smaller, compared to its competitors like Chicboy which offers bigger chicken with unlimited rice. JFC company should bring back the quality of chicken that Mang Inasal had before, to maintain the brand loyalty of the consumers.

Course of Action
- Besides of selling the Mang Inasal Philippines to Jollibee Food Corporation

* Better of continuing the business venture with the Mang Inasal family and stay ahead with their competitors.
By not being blinded by the offer of Jollibee Food Corporation, Mang Inasal should continue with the use of Product development strategy. With good research and development, Mang Inasal is capable of continuing to produce products that fit well to the taste of their market. They could also continue innovating their current product line so as to continuously remain ahead of its competitors InJap should continue expanding its network by setting more stores in new strategic areas, either through franchise and company initiated. InJap should also strengthen its advertising promotions so as to continue to reinforce dominance in the industry. They are already on top of the industry here in the Philippines and the only thing they need to do is to stay ahead.

Conclusion and Recommendation

Conclusion and Recommendation

Mang Inasal whos now in JFCs control should stick to its core competencies by making sure that it provides its consumers benefits that no other fast food chain could provide, by making sure that what they have and what they do would not easily copied or imitated by others and that they would leverage on the strengths that the company have so that they could have their added value over competitors. This way, they can apply the conservative strategy throughout their businesses and still be the leading and successful fast food chain in the country. JFC also should focus on particular niche markets which concentrates on a certain group or market which further proves that they indeed uses the conservative strategy in their line of business. They did not waste their time spreading themselves too thin across different kinds of business so that they can concentrate and stand out in that particular niche that they are dominating and serving. Since JFC has several opportunities which they can take advantage of, they were able to pinpoint these opportunities and use them for their benefit. More often than not, Jollibee should only take calculated risks and avoids taking unnecessary risks that could put them in a disadvantageous position. There should always be thorough studies conducted before JFC makes a move or change certain things related to the product and services that they offer.

Bibliography
MANAGEMENT Theory and Practice, Carlos C. Lorenzana, M.A, REX Book Store Entreprenuers.com.ph Scribd/Mang Inasal Case Sulit.com/entreprenuers/forums ctb.ku.edu/en/table-of-contents/assessment/assessing-communityneeds-and-resources/swot-analysis/main Personal Interviews

Slideshare/HRM-Mang-Inasal-SWOT-analysis
Mang Inasal Philippines Inc.