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I. INTRODUCTION

The hamburger has become popular all over the world and has been offered as part of the

main course in many fast foods and restaurants. A hamburger or burger is a patty of ground

meat or a ground-beef sandwich (Encarta Dictionary 2009). The term burger can also be

associated with different classes of sandwiches similar to a hamburger. There are two types of

hamburgers: one is the hamburger served in fast foods and the other is the more customized

burger made in homes and restaurants.

The hamburger evolved from minced beef in the 15th

century-Europe. The hashed beef

was then made into sausages. In the 17th century, the steak tartare of Russia was brought to

Germany where it gained its popularity among sailors that travel the ports of Hamburg, Germany

and New York. These sailors coined the term Hamburg steak and brought this food to New

York where it gained widespread approval and developed to the hamburger we know at the

present.

From America, hamburger has earned its popularity in the Philippines. Through years

different versions and varieties of the hamburger is developed. In Iloilo city the major

competitors for the market include McDonalds, Jollibee, Robertos, Perri Todds and Crave.

The competing companies strategies identify the companys position in the market. For

instance, McDonalds and Jollibee had retained their customers through massive advertising and

standardization of products and services. Robertos on the other hand capitalize on cheaper

prices and strategic location, while Peri Todds and Crave invest on quality taste.

Because of the big market, burger fast food and restaurants must seek to increase their

products value in order to retain and regain customers. To broaden or at least maintain market


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share the companies must continually scan the environment and review existing strategies for

improvements.

II. OBJECTIVES OF THE STUDY

This study aims to generate a strategic plan that will promote wellness within the

organization for it to achieve a competitive advantage and to obtain a greater market share

compared to its competitors.

Specifically, this study will:

y Map the companys current position in the markety Identify the different internal and external factors contributing to its competitive

advantage

y Recommend areas for improvement.

III. SIGNIFICANCE, SCOPE AND LIMITATIONS OF THE STUDY

A. SignificanceThe constant growth of the food industry in Iloilo City brought the mushrooming of

different food establishments within and outside the city. Competition with regards to creating a

large niche in the market and leading the production of a certain product especially food has been

increasing and fast phased. Different business styles and concepts have been developed to sustain

and improve the current position of the company in the market.

This study will be beneficial to the company especially to its management because it will

assist the managers and the owner to obtain a sustainable strategic plan. The plan will be more

focused on how the company will achieve a competitive advantage against its competitors


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considering its employees and staff while upholding its corporate social responsibility. The study

will identify the critical factors affecting such preferences e.g. consumer budget, value for

money, accessibility, taste and variety products and services. The general public will also benefit

from this study through better services that the food establishments may provide.

B. SCOPE AND LIMITATIONSThis study focuses on the review of Crave Burgers management style and functions, on

how it manages its employees and resources, and on how the company maximizes its strengths

and overcomes weaknesses to capitalize its opportunities and avoid threats in the industry.

The facts presented were taken from the interview and internet search conducted. The

study focuses on the branches of Crave Burger located in Iloilo City specifically the Corner

General Luna and Iznart Street branch. Although, the information acquired through the interview

may apply to the organization as a whole.

Some relevant information was not disclosed due to confidentiality issues of the

corporation. This information includes the written financial statements and written policies. The

books of the company were not prepared as of the date of the study and therefore limits the

financial information the researchers could obtain. During the interview however, the researchers

were able to acquire financial averages and ratios that are helpful in the conduct of this study.

Policies and organizational structure were also discussed in the interview.

Comment [J1]: Specify what branches we arestudying.


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IV. STUDY METHOD

A. Study Methods1. Locale of the Study

The project would cover one of the 15 branches of Crave Burger located at Corner

General Luna and Iznart Street, Iloilo City. Most of the data were gathered from this

branch.

B. Research MethodThe proponents of this study conducted an interview regarding the companys history,

organizational structure and design, focusing more on its company policies, marketing

strategies, operations and processes. An internet search was also conducted to supply

other information related to the corporations history and business undertakings.

V. DEFINITION OF TERMS

yHamburger (or burger)

Primary product of Crave Burger; is a sandwich consisting of a cooked patty of ground

meat (usually beef, but occasionally pork, turkey, or a combination of meats) usually

placed inside a sliced bread roll. Hamburgers are often served with lettuce, bacon,

tomato, onion, pickles, cheese and condiments such as mustard, mayonnaise, ketchup and

relish;

y RestaurantEating place: a place where meals and drinks are sold and served to customers


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y Strategic PlanningDetermines where an organization is going over the next year or more and how it's going

to get there. Typically, the process is organization-wide, or focused on a major function

such as a division, department or other major function.

y Competitive AdvantageAnything that a firm does especially well compared to rival firms.

VI. COMPANY PROFILE

A. Brief History and BackgroundIn the early 2007, an Ilonggo entrepreneur named Senin Javellana established Crave in

an idle 25-square meter space of Iloilo Business Hotel in Smallville, Iloilo City. Crave was

known originally for serving premium Manila-based ice cream product to the Ilonggo

Community. With an original business model of an ice cream parlor, Mr. Javellana has been

occasionally approached by enthusiastic customers requesting a product that would best

compliment ice cream in a Yin and Yang manner to fully satisfy their cravings. With the passion

for food and cravings, he then came up with the idea of A Burger with a Personality! and

conceptualized a perfectly seasoned and healthy stand-alone burger inspired by a famous burger

joint in U.S. He got thrilled with the whole idea and realized that it was a good opportunity to

reinvent and introduce a burger that would describe his audacious personality with a little Pinoy

twist to a completely Americanized concept.


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As time passed, the young entrepreneur noticed that burger sales had suddenly sky-

rocketed with customers frequently acknowledging the burgers wonderful blend of 100% prime

choice imported beef and savory spices to create the perfect LasangPinoy burger.

By late-2007, Mr. Javellana finally decided to alter what used to be Crave by adding

another word making it as Crave Burger. These events gave way to the present Crave Burger.

B. Description of Business UndertakingAccording to its history, Crave Burger was originally established to offer premium ice

cream from Manila as its main product but through the course of events. It started serving

burgers with a distinct taste to compliment the ice cream. The owner then noticed the unusual

increase in sales of the burgers. He then changed their product line from serving ice cream to

burgers. Nowadays, they are serving the burgers as their main product with ice cream as the

compliment or side dish, which was in contrast to the original idea.

C. Products and ServicesProducts

Crave Burger is a restaurant that specializes in tasty burger dishes and other

delightful snacks. The main product of this popular joint in Iloilo is its 100% beef burgers. While

some burgers may brag about special sauces and add on's, Crave Burger invests on the hand-

formed, pan-filled, super thick, juicy and fresh beef patties that are rich in taste and flavor in

every bite. Customers can indulge in sumptuous combo meals comprised of special Crave

Burger, French Fries, and drinks. There are also other special food offerings available like

enticing deserts and appetizers. In addition to the food, Crave Burger also serves refreshing

beverages. These beverages include a wide array of soft drinks, iced teas, fruit juices and

milkshakes.


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The following table shows the food and beverages offerings of the restaurant with

their descriptions and price:

BURGER Price

CLASSIC BURGER

1/3 pound pure beef patty served on a freshly baked bun.

P 75

CRAVE BURGER

1/3 pound pure beef patty, hand-leafed lettuce, tomato, and white onion

served on a freshly baked bun.

125

CRAVE CHEESE BURGER


and one slice of American cheese served on a freshly baked bun.

140

CRAVE ULTIMATE BURGER

1/3 pound pure beef patty, hand-leafed lettuce, tomato, caramelized

onions, maple bacon and one slice American cheese served on a freshly

baked bun.

175

CRAVE DOUBLE BURGER

Two 1/3 pound pure beef patty, hand-leafed lettuce, tomato, and white

onion stacked high on a freshly baked bun.

175

CRAVE DOUBLE DOUBLE BURGER


and two slices of American cheese stacked high on a freshly baked bun.

210

TOPPINGS

CARAMELIZED ONIONS 20


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FRIED EGG 20

MAPLE BACON 30

SHITAKE MUSHROOMS 25

CHEESE

AMERICAN CHEESE 25

BLEU CHEESE 35

CRAVE EXTRAS

ONION RINGS 90

CHICKEN WINGS

5-pieces boneless chicken wings

10-pieces boneless chicken wings

225

375

CRAVE FRIES

SKINNY FRIES 75

TWISTER FRIES 85

WEDGE FRIES 85

CRAVE COMBOS

CRAVE COMBO NO. 1

Crave Burger complimented with skinny fries and drinks.

175

CRAVE COMBO NO. 2

Crave Double Burger with skinny fries and drinks.

210

MILK SHAKES

CHOCOLATE MILKSHAKE 90

STRAWBERRY MILKSHAKE 90


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VANILLA MILKSHAKE 85

BEVERAGES

BLUE LEMONADE 16 oz 45

RED ICED TEA 16 oz 45

SPECIALS

MINI BURGERS

Three miniature-sized Crave burgers in one sitting.

135

Crave Burger food offerings differ from one branch to another. In other branches, Fruits

in Ice Cream products are also available. These FIC Ice Creams are Philippine-made and

produced Sorbetes. This emphasizes more the support of Crave Burger for Filipino products.

Also, in some branches, seafood is served. This includes Clam Chowder Soup at P115, Battered

Fish Fillet Burger at P135 and Fish and Fries at P210. Its also good to note that the reason that

the skinny fries are named skinny is that there is still skin on the fries.

Services

Crave Burger offers franchising. The company backs every franchise with proven and

tested business model and at the same time inculcating the brand with the right formula for

success. They also support the franchisee by offering support on development services. This

includes training, operations and marketing.


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D. Capturing the Country through the StomachFrom its humble beginnings of providing a comfortable ambiance, where family, friends,

colleagues and clients can relax while enjoying the taste of the perfect LasangPinoy burger that

Crave is known.

By mid-2009, Crave Burger has opened its doors to franchising and has led the way into

capturing the rest of the country through the stomach by opening two (2) more branches in Iloilo

City in addition to its Smallville Branch, a cookout trailer in Bacolod City and six (6) more

branches in Metro Manila as of December 2010 and three (3) more are currently being

constructed.

E. Moving On ForwardThe company envisions itself to be the countrys first and number one freshly cooked pan-

fried gourmet burger place in the Philippine Market by strictly committing itself to high

standards as symbolized by F.S.C.:

yFood (F) served to the public must meet the companys excellence standards or it will not

be served at all;

y Service (S) must be fast and courteous; andy Cleanliness (C), from kitchen to utensils in order to preserve the atmosphere of

enthusiasm for serving customers the freshest quality products that can be seen all the

way from the many store locations to the office associates.


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F. The Philosophy, Promise and ProcedureSince the beginning, the companys business philosophy is to simply provide customers

with the freshest, first class, and highest quality products (ice cream, burgers, fries, and

milkshakes) available in the market and to provide them with friendly service in a sparkling

clean environment. These principles have worked so well over the years that they are still the

companys fundamental philosophy.

Crave Burgers commitment to quality starts with the burger patties. Every burger patty is

made from fresh 100% pure beef free from additives, fillers and preservation of any kind. The

company pays premium to purchase fresh and high quality beef chunks and goes through a

rigorous quality assurance procedures in order to completely control the patty-making process

and be absolutely certain of the quality and freshness of every output. Since the company only

serves burgers, fries, and drinks, making high quality burger patties is the topmost priority.

The companys commitment to quality doesnt stop there because every lettuce is hand-

leafed. The American cheese is the real thing and the company only uses the plumpest and

juiciest tomatoes and red onions available in the market. Everyday, all ingredients are delivered

fresh to the stores and it makes every burger one at a time, cooked fresh to order.

G. The Craving for a Better PlaceCrave Burger vision towards corporate responsibility isnt about the final destination, its

about the journey and how it goes to get there. The companys policies and procedures will

evolve and change as the landscape in which it does business also evolves and changes. The


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company aims to invest in people and help them succeed in ways the company knows upholding

corporate responsibility.

The better job the company and its employees do at being responsible today, the better

the business will be in the future. The company believes that from a pure business sense, it can

help manage risk, enhance employee morale and retention, strengthen brand loyalty, build

goodwill in the communities in which we operate and can directly affect the bottom line such as

with energy savings and waste reduction. Also, it must be a way of thinking before it becomes a

way of acting and the only way to accomplish that is to embed it fully into our brand. In other

words, this meant taking the values, the system, the tools, and the years of experience that has

made Crave Burger what is today and sharing it with the people they most ascribe their successes

to: the Filipino people.

H. Organizational Structure And DesignCrave Burger employs a simple and informal organizational structure wherein the owner

acts as the General Manager for all the branches owned (excludes the franchises). Only three

branches are owned by the owner, Mr. Senin Javellana. He personally looks over the business

processes in the company.


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General Manager

The General Manager is responsible for the overall management of the entire business.

He is the one that hires and approves newly hired employees and is also the one that has the

power to fire employees.

Accountant

The Accountant provides overall control of receipts, and payments; maintains audit and

reports all data pertaining to the financial aspect of the business enterprise.

Secretary

The Secretary keeps all memos and mail from internal and external sources. He/She

keeps daily time record and make attendance payroll summary of personnel. The Secretary is

General Manager

Secretary Officer in Charge

Cashier

ServiceCrew

SecurityGuard

DeliveryMen

KitchenStaff

Accountant


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also responsible for the receipt of goods and checks if these are supported with proper

documentation. He/She performs all other duties and tasks assigned by the immediate supervisor

(General Manager) from time to time.

Officer in charge

The OIC acts in behalf of the General Manager when the GM is not available. He/she

performs all functions that the GM normally does in that particular branch employed in the

absence of the General Manager. The OIC function is to facilitate the day to day business

activities of the restaurants. Therefore, the OIC may sometimes act as the Branch Manager.

He/she answers directly to the General Manager.

Other functions in the organization includes: Cashier, Service Crew, Security Guards,

Delivery Men and Kitchen Staff/Chefs.

I. Company PoliciesA. HIRING POLICIES

Crave Burger classifies employees into categories. Compensation and benefits accorded

to the employee may vary per category. The employee definitions are as follows:

y FULL TIME: Employees is scheduled to work an average of 48 hours per weekon the consistent basis inclusive of one (1) hour break time per day for lunch and

snacks. Break times may sometimes be shortened or adjusted depending on the

volume of customers. This rarely happens however because there are often just

enough service crew for the customer capacity of the restaurant. All full time

employees are expected to complete their respective shifts.


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y TRAINEES: Employees are first hired as a trainee and is trained for six (6)months before he/she can be a regular full time employee. It is the discretion of

the employee to continue as a regular employee after the 6-month probationary

period.

B. HIRING GUIDELINESWhen a particular position is vacant, or when the consequences present a need to hire

additional workforce, the establishment hires/recruits new people into the business. The Hiring

Policies of the restaurant is based on the nature of work and ability to accomplish such work of

the applicant. The hiring process is simple and almost common.

For hiring of accountant, the applicant must be of legal age and a graduate of any four (4)

year accounting course. For service crew members, the applicant must be of legal age and have

pleasing personality. Overall, all applicants must be customer friendly and can work under

pressure due to the nature of the business as a very customer preference dependent organization.

C. COMPENSATION1. BASIC SALARY

The basic salary is the primary compensation for the employees. This salary is

distributed every 15th

and 30th

of the month.

2. BENEFITSOnly the basic benefits are given to the employees. No bonuses are distributed.

y PHILHEALTHy SSS


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y GSIS

D. WORK SCHEDULESThere are two shifts for all the employees. First shift starts from 9:00 AM to 3:00 PM.

Next shift is from 3:01 PM to 10:00 PM. Store hours are from 10:00 AM to 9:00 PM. The 1 hour

allowance time before and after the store hours is to enable the cleaning up procedures and

preparation for the opening. It is the responsibility of the employee to check the schedule of their

working hours. Tardiness or absences resulting from lack of knowledge of work schedules are

not tolerated and is subject to disciplinary actions.

VII. INTERNAL ASSESSMENTA. The Purpose of an Internal Audit

The main purpose of an internal audit is to identify the companys strengths and

weaknesses. Once identified, the management can utilize their key strength in formulating

strategies to take advantage of opportunities or to minimize the adverse effects of threats. The

weaknesses must also be identified in order to find ways to reduce it to avoid external threats or

utilize it to take advantage of external opportunities. The proponents identified the key internal

factors in order to formulate applicable strategies for the company.

B. Crave Burgers Existing StrategiesAccording to the manager, the company has several strategies that are currently being

implemented. One of these is the distribution of flyers and another is putting up tarpaulins to

advertise their product offerings. Another strategy that the manager disclosed is the discount

cards that can be availed by any customer; however these discount cards which are valid for one


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C. Internal Factors Evaluation MatrixKey Internal Factors Weight Rating Weighted

Score

Strengths

1. The firms Liquidity ratio is 1.92 0.05 3 0.15

2. Employee morale is high 0.05 3 0.15

3. The firm has a Web site 0.03 3 0.09

4. On-time delivery of products from the commissary 0.07 4 0.28

5. Food quality distinctive taste and freshness 0.12 4 0.48

6. Store ambiance 0.07 4 0.28

7. Additional services (WIFI connection; Television) 0.05 3 0.15

8. Availability of complementary goods 0.06 3 0.18

9. Food presentation 0.02 3 0.06

10. Presentation of menu

Weakness

0.02 3 0.06

1. Average daily profit dropped from P25,000-P27,000 to an

average of P10,000 per day

0.08

1 0.08

2. Monthly expenses increased from 15% to 20% 0.06 1 0.06

3. Lack of parking area 0.04 2 0.08

4. Pricing 0.9 1 0.09

5. Internal control problems 0.07 1 0.07


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6. High storage/ Carrying costs 0.04 2 0.08

7. Career development programs of employees 0.02 2 0.04

8. Research and Development 0.04 2 0.08

9. Inconsistency of promos 0.02 2 0.04

TOTAL 1.00 2.50

Where:

1- major weakness2- minor weakness3- minor strength4- major strength


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D. Explanation of the Key Factors Included in the IFE MatrixSTRENGTHS

1. The firms Liquidity ratio is 1.92The liquidity ratio of Crave Burger indicates that it has the ability to satisfy its

short-term obligations as they come due. This is an advantage for the firm since more

creditors will be willing to lend them money. The proponents gave it a weight above

average because this is an important factor that should be considered by the firm.

2. Employee morale is highThis factor pertains to the authority and the degree of freedom given to employees

in decision making regarding day-to-day operations in the absence of the officer-in-

charge. The employees are also allowed to participate in planning and formulation of

strategies. The proponents gave it a weight above average because this is an important

factor which tells if the employees are responsible and self-reliant.

3. The firm has a websiteThis factor pertains to the availability of website that helps promote the

companys products and services. This site also facilitates communication with the

companys customers and serves as a medium for customer feedbacks. The proponents

gave it the lower weight since it affects the companys advertising campaigns but does

not contribute significantly to the increase in the number of customers.

4. On-time delivery of products from the commissary


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This is an important factor which is also an advantage for Crave Burger. Because

deliveries are on-time, products requested by customers are readily available. This factor

was given a below average weight because it is not the main concern of Crave Burger and

its customers.

5. Food Quality- distinctive taste and freshnessThis factor pertains to the unique flavour of Crave Burgers products which is

attributable to the original recipe of the owner, in case of their burger, and the exclusivity

of their ice cream products since the company is the exclusive distributor of Fruits in Ice

Cream. It also pertains to the freshness of the ingredients used to attain high food quality.

The proponents gave it a high weight because in the food industry, the quality of the

products is the main determinant of competitive advantage.

6. Store ambianceThis factor pertains to the overall mood of the store which includes, but is not

limited to lighting, music/sound, aesthetics, cleanliness and lay-out of store. The

proponents gave it an above average rating because it affects the mood of the customers

and it determines the probability that the customer will visit the store again.

7. Additional Services (WIFI and television)This factor pertains to the other benefits that customers may avail of and which

add value to the services offered. These are free internet access, reading of magazines and

television viewing. The proponents gave it an average weight because they are

complementary services that might help attract and retain customers.

Comment [HG2]: ? please clarify. Concern syng customers since it(the product) is what they

came for


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8. Availability of complementary goodsThis factor pertain to Crave Burgers other products that compliment the taste of their

main product. The proponents gave it an above average rating because it provides the

customers a wide food offering and can improve the customers experience.

9. Food PresentationThis factor pertains to the overall appearance of the food served. The proponents

gave it a lowest rating because food presentation affects the customers perception of the

products offered but may not significantly affect their satisfaction since the taste is still

the main determinant of customer satisfaction.

10.Presentation of menuThis factor pertains to how the service crew entertains the customer/s by describing

the menu upon ordering. The group gave it the lowest weight since this factor may not

significantly affect the customers perception of the services provided but nevertheless it

may affect the customer which may sometimes lead to customer retention.

WEAKNESSES:

1. Average daily profit dropped from P25,000-P27,000 to an average of P10,000 perday

This is an important factor because a decrease in profit is an indication that the

firms strategy is not effective and there maybe problems within the firm. The group gave

this factor a high weight since this is an important basis of performance by the firm.


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2. Monthly expenses increased from 15% to 20%The group gave this factor an above average weight since a large part of their

expenses are from overhead costs which could be minimized if desired. The company

incurs unnecessary costs which could have been allocated to other projects.

3. Lack of parking areaThe proponents give this factor a lower weight because this is not the main

concern of Crave Burgers customers.

4. PricingThe proponents gave this factor a high weight since Ilonggo consumers are price

sensitive. The companys higher prices in comparison with other fastfood chains selling

similar products may discourage customers from patronizing their products.

5. Internal control problemsThe proponents give this factor a higher weight because this is a very important

factor to be considered by the management. Likewise this is also a present problem of

Crave Burger.

6. High Storage/Carrying CostsThis factor pertains to the costs for storage of FIC ice creams which are delivered

once a month to the branch. The proponents gave it a slightly below average weight since

the company incurs costs for the storage of these products which are not very profitable.


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7. Career Development Programs of EmployeesThis factor pertains to training programs, seminars and activities that contribute to

the enhancement of the employees knowledge and skills. The group gave it below

average weight since there is little growth in their line of work.

8. Research and DevelopmentThis factor pertains to the limited product diversification due to inefficient

research and development. The group gave it below average weight since serving new

products is only one of the many factors that attract customers.

9. Inconsistency of PromosThis factor pertains to discount card that the company offer to their patrons. Since

the discount card is applicable only to a specific branch it leads to confusion on the part

of the customers. The group gave it the lowest weight since only few customers avail the

discount cards.

E. Discussion of the Results of the IFE MatrixOverall, the company has a total weighted score of 2.50, which on a scale of 1 to 4 is an

average. This means that although the company has an average internal position, serious

improvements are still needed in terms of store operations, strategies, procedures and

management. The key internal factors were limited to the companys management and marketing

aspect because the manager was not allowed to disclose any part of their financial statements.


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VIII. EXTERNAL ASSESSMENTA. The Purpose of an External Audit

The purpose of an external audit is to develop a finite list of opportunities that could

benefit a firm and threats that should be avoided. The external audit aims to identify key

variables that the management may act on. Firms should be able to respond either offensively or

defensively by formulating strategies that take advantage of external opportunities or minimize

the impact of potential threats, or both. The researchers, thus, resolved to conduct an external

audit to identify the key external factors that affects the environment of Crave Burger. and

determine the existing strategies that Crave Burger employ to respond to the advantages that the

external opportunities present and to avoid or minimize the effect of the threats in their

environment.

The EFE shows that Crave Burgers responses to its external factors affecting its growth

and success is below average level. This means that the firm is not as responsive, as it should be,

to the changes in its external environment. The company has low capacity in taking advantage of

opportunities in the market and minimizing the potential adverse effects of external threats.


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B. EXTERNAL FACTOR EVALUATION (EFE) MATRIXKey External Factors Weight Rating Weighted

Score

Opportunities

1. Preference of customers to quality of service provided 0.10 3 0.30

2. Positive outlook of consumers regarding corporate social

responsibility of firms

0.10 2 0.20

3. Reliance of consumers on technological advancements 0.04 3 0.12

4. Government regulations support for small scale investors 0.04 2 0.08

5. Emerging market for burger aficionados 0.04 3 0.12

6. Consumer preference towards products with unique taste and

presentation

0.08 3 0.24

7. Consumer preference towards pleasant store ambiance 0.08 4 0.32

8. Increase in average annual family income by 17.03% as

compared to an increase in average expenditure by 18.31%

0.06 2 0.12

Threats

1. Ilonggos are prudent when it comes to spending 0.10 2 0.20

2. Current Inflation trends (As of January 2011, inflation rate is

3.5%)

0.10 2 0.20

3. Demand for chicken inasal/barbeque rises 0.06 2 0.12

4. Close substitutes are more preferred by the consumers 0.06 1 0.06


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5. Existence of low-cost fast food chains in Iloilo 0.06 1 0.06

6. Traffic congestion 0.04 2 0.08

7. Construction of Plazuela 0.04 1 0.04

Total 1.0 2.26

Where:

1- poor response 2- average response 3- above average response 4- superior response

C. Explanation of the Key Factors Included in the EFE Matrix


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OPPORTUNITIES

1. Preference of customers to quality of service provided

This factor relates to the positive reactions of the consumers regarding the respectable

attitude and pleasant treatment of the service crew to their customers. Crave Burger is

determined to provide a service that must be fast and courteous so as to promote their firm as

a customer service oriented one. The proponents gave this factor the highest weight

because many customers are attracted to firms with excellent customer service. This factor is

extremely influential to the decisions of the consumers.

2. Positive outlook of consumers regarding corporate social responsibility of firms

This is an important external factor that affects almost all but different types of

companies. Consumers nowadays are becoming more interested on the activities of firms

concerning charity works and environmental activities. Crave Burger has its own charity

works which is a series of feeding programs for poor children. The proponents gave this factor

the highest weight since corporate social responsibility creates a positive image for a firm that

will probably result to increase in sales/profit.

3. Reliance of consumers on technological advancements

This factor pertains to the reliance of the increasing number of consumers to blogs and

websites which talks about food. Because of this, some are persuaded by these blogs and

website to try a new menu or to try even a new restaurant. Crave Burger has its own website

which promotes its products and we have also spotted some food bloggers who have their


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positive testimonies for the restaurant. The proponents gave a below average weight for this

factor because not all consumers are technologically updated and do rely on internet.

4. Government regulations support for small scale investors

This factor pertains to the willingness of the Local Government of Iloilo to support

small scale investors and new entrants in Iloilo market. Some of these regulations have helped

Crave Burger grow since it started in early 2007. The proponents gave a below average

weight for this factor since it is only a minor factor for the success of Crave Burger.

5. Emerging market for burger aficionados

This factor pertains to the increasing number of burger enthusiasts in Iloilo city. This

is a direct opportunity for Crave Burgers to grow and expand their present market share. The

proponents gave a below average weight for this factor since this is only a trivial reason for

increased sales of Crave Burger.

6. Consumer preference towards products with unique taste and presentation

This factor pertains to the consumers choice of food which has a distinctive and

distinguished taste as well as an attractive appearance/presentation. Since Crave Burger is not

a fast-food chain but a restaurant, they have the opportunity to reinvent or introduce new

products related to burger. The proponents gave an above average weight for this factor

because consumer preference is an essential element in their decision-making process.

7. Consumer preference towards pleasant store ambiance


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This is a very important factor that relates to the decision of the customers to choose

restaurants which have a cozy, pleasant and relaxing ambiance over others who do not have a

good setting/atmosphere. The proponents gave a high weight for this factor because a pleasant

ambiance is necessary to attract and satisfy customers in order for them to visit again.

8. Increase in average annual family income by 17.03% as compared to an increase in

average expenditure by 18.31%.

This is an advantage for Crave Burger because as the income of people increases,

more consumers can afford to buy their products. Since the increase in average annual family

income is accompanied by an increase in their average expenditure, this means that they are

also spending the additional income that they are receiving which is a good opportunity for

Crave Burger to increase their sales. The proponents gave an above average weight for this

factor because this may also lead to increased sales if Crave Burger makes use of this

opportunity.

THREATS

1. Ilonggos are prudent when it comes to spending

This is a disadvantage for Crave Burger since their prices are a bit too high and not

practical for the prudent Ilonggos to accept. The proponents gave the highest weight for this

factor because this attitude of the Ilonggos limits their consumption. And so, this is a

disadvantage for Crave Burger.

2. Current Inflation trends (As of January 2011, inflation rate is 3.5%)


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This is a very important factor that relates to the increase in the price of commodities

here in Iloilo. When prices of raw materials increase, Crave Burger will also have to increase

their prices for burgers, which will become too high for their consumers to afford. The

proponents gave the highest weight for this factor since an increase in the inflation rate would

reduce the consumers purchasing power and therefore, they will not be able to buy high-

priced commodities.

3. Demand for chicken inasal/barbeque rises

This economic situation will have a negative effect on the market of Crave Burger.

More consumers prefer buying chicken inasal/barbeque than buying burgers since this product

is very popular here in Iloilo. The proponents gave an above average weight for this factor

because it has an indirect effect on sales of Crave Burger.

4. Close substitutes are more preferred by the consumers

When close substitutes are available and offered in lower prices consumers will

become more practical in spending and would rather buy the cheaper one. Unfortunately, a lot

of close substitutes for burger are offered here in Iloilo which poses a threat to Crave Burger

which offers burger in a bit higher prices. The proponents gave an above average weight for

this factor because close substitutes have minimal effect on the market of Burger.

5. Existence of low-cost fast food chains in Iloilo

The existence of low-cost fast food chains here in Iloilo is a significant threat to the

firm. Ilonggos want to spend their money wisely and practically hence; fast food chains are

preferred by many for their affordable and delectable products. The proponents gave an above


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average weight for this factor since the presence of low-cost fastfood chains in Iloilo is really

a threat to Crave Burger.

6. Traffic congestion

This is a very important factor that relates to the decision of the customers to choose

restaurants that have pleasant and relaxing surrounding. The more traffic congested the place

is, the less customers would want to visit the place. The proponents gave a below average

weight for this factor because it is not a major problem for Crave Burger.

7. Construction of Plazuela

The construction of Plazuela is viewed as threat for Crave Burger. Numerous

restaurants will put up a branch there which will also attract various customers since the place

will offer a lot of choices for an eating place. Customers will prefer restaurants at the premise

of Plazuela and they will hesitate to travel/go to other distant restaurants like the Crave

Burger. The proponents gave a below average weight for this factor since the construction of

Plazuela has an indirect impact on the sales of Crave Burger.


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A SWOT Matrix for Crave Burger Strengths Weaknesses

1. The firms Liquidity ratio is

1.92

2. Employee morale is high

3. The firm has a Web site

4. On-time delivery of

products from the commissary

5. Food quality distinctive

taste and freshness

6. Store ambiance

7. Additional services (WIFI

connection; Television)

8. Availability of

complementary goods

9. Food presentation

10. Presentation of menu

1. Average daily profit

dropped from P25,000-

P27,000 to P10,000 per day

2. Monthly expenses increased

from 15% to 20%

3. Lack of parking area

4. Pricing

5. Internal control problems

6. Inefficient internal

management

7. High storage/ Carrying costs

8. Career development

programs of employees

9. Research and Development

10. Inconsistency of promos

Opportunities SO Strategies WO Strategies

1. Preference of customers to quality of

service provided

2. Positive outlook of consumers regarding

corporate social responsibility of firms

1. Provide a table service set

up to customers (S6,O1,O7)

and Prepare table menu

(S10,O1)

1. Put up kiosks in malls and

universities (W3,O5,O8)

2. Install/play music instead of


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3. Reliance of consumers on technological

advancements

4.Government regulations support for small

scale investors

5. Emerging market for burger aficionados

6. Consumer preference towards products

with unique taste and presentation

7. Consumer preference towards pleasant

store ambiance

8. Increase in average annual family

income by 17.03% as compared to an

increase in average expenditure

by 18.31%.

2. Offer a make your own

burger scheme to customers

(S5,06)

television (W2,O7)

3. Hire a supervisor

(W5,W6,O1)

Threats ST Strategies WT Strategies

1. Ilonggos are prudent when it comes to

spending

2.Current Inflation trends

(As of January 2011,inflation rate is 3.5)

3. Demand for chicken inasal/barbeque

rises

4. Close substitutes are more preferred by

the consumers

5. Existence of low-cost fastfood chains in

1. Diversify existing or offer

new products(S5,S9,T3,T4,T5)

1.Create/expand combo meals

(W1,W4,T1,T2,T6)

2. Issue promo stubs and

improve privilege cards by

making them available in all

branches (W4,W10,T1,T2,T6)

3. Put up a branch in Plazuela


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Iloilo

6. Traffic congestion

7. Construction of Plazuela

(W3,T8)

4. Lay-off employees and

reduce overhead costs

(W2,W7,T2)


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The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix

SO Strategies

1. Provide a table service set up to customers (S6,O1,O7) and Prepare table menu (S10,O1)

It is the objective of the restaurant to provide an ambiance of class and comfort. The

researchers have observed that Crave Burgers ambiance is sophisticated but customers have to

line up in the counter to have their orders. Service will be more of quality if Crave Burger offer

table service set up to customers. The service crew will also be able to promote the menu and

introduce the stores specialty to the customers while presenting the menu. The customers will

feel more welcomed and pampered and therefore the ambiance that Crave Burger envisions will

be realized.

Hence, it will be a given step to provide each table with a menu where the customers can

choose and see all the food and beverages offerings of the restaurant. In this way, customers can

see what is available in the comfort of their seats and can freely ask questions about the menu to

the service crew in charge of their orders.

2. Offer a make your own burger scheme to customers (S5,06).

This special promotion strategy will let the customers choose the fixings they want to

have in their burgers. This may require the company to have a set of various toppings like

pickles, cheese, creams, spices and others. Customer satisfaction will improve when burgers are

customized according to the customers taste and this may also present a way to stand out among

competitors.

WO Strategies


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ST Strategies

1. Diversify existing or offer new products (S5,S9,T4,T5,T6).

The restaurant belongs to an industry that is rapidly growing and therefore the restaurant

needs to diversify their existing products to be distinct among its competitors. It will also be

good if the restaurant can provide products that are in demand and is preferred generally by the

public. Not only will this be profitable but it can develop customer loyalty.

WT Strategies

1. Create or expand existing combo meals (W1,W4,T1,T2,T6).

The restaurant is currently experiencing a drop in profits possibly because of pricing

policies that are too high for the Iloilo consumers to afford. Iloilo has numerous restaurants that

offer low-cost products that are favored and preferred by most customers. If the restaurant can

create more combo meals or improve their existing combo meals, customers can enjoy variety of

products at affordable prices.

2. Issue promo stubs and improve privilege cards by making them available in all branches

(W4,W10,T1,T2,T6).

To maintain the current prices on the food products and encourage customer loyalty, the

company may issue promo stubs and privilege cards that will be availablein all of their branches.

3. Put up a branch in Plazuela (W3,T8).


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Plazuela offers a site where people can easily access restaurants. In addition to this, there

is a parking area available for the customers of Crave Burger if Crave will put up or transfer a

branch on Plazuela.

4. Lay-off employees and reduce overhead costs (W2,W7,T2).

Due to increasing monthly costs and current inflation rates, the restaurant may lay off

employees and reduce their overhead costs. Cost cutting is strongly recommended.


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The SPACE Matrix

Internal Strategic Position External Strategic Position

Financial Strength Environmental Stability

Working Capital 4

Liquidity - 4

Cash Flow -1

Leverage-3

Average 3

Technological changes- -1

Rate of inflation - -3

Demand Variability - -2

Competitive pressure - -1

Price elasticity of Demand - -3

Average - -2

Competitive Advantage Industry Strength

Market share - -5

Product Quality - -2

Customer loyalty - -3

Control over suppliers - -2

Technological know-how - -1

Average - -2.6

Growth potential 4

Profit potential - 3

Financial Stability - 5

Resource utilization - 3

Technological know-how - 6

Average 4.2

FS

Conservative Aggressive


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As shown on the Strategic Position and Action Evaluation (SPACE) Matrix, Crave

Burger is in an excellent position to use its internal strengths to take advantage of external

opportunities, overcome its internal weaknesses, and avoid external threats. The SPACE matrix

suggests that the company should pursue an aggressive strategy. Two of the aggressive strategies

that the proponents formulated are the diversification of related products and product

development.

ES

CA IS(1.6, 1)

CompetitiveDefensive


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The Grand Strategy Matrix

Crave Burger is in the Quadrant II of the Grand Strategy Matrix because it has a weak

competitive position in an industry where there is a rapid market growth. Companies belonging

to an industry with rapid-market growth may choose from intensive strategies, horizontal

integration and, as final alternative, divestiture and liquidation. Since Crave Burger currently has

RAPID MARKET GROWTH

WEAK

COMPETITIVE

POSITION

STRONG

COMPETITIVE

POSITION

SLOW MARKET GROWTH


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enough working capital, the company can develop intensive strategies, specifically product

development and market penetration, to improve their existing competitive advantage.


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The Quantitative Strategic Planning Matrix (QSPM)

Strategic Alternatives

Product Diversification and

Development

Kiosks in Malls and

Universities

Pu

Key Factors Weight AS TAS AS TAS A

Opportunities

1. Preference of customers to quality of

service provided

0.10 4 0.40 2 0.20 3

2. Positive outlook of consumers

regarding corporate social responsibility

of firms

0.10 - - - - -

3. Reliance of consumers on

technological advancements

0.04 - - - - -

4. Government regulations support for

small scale investors

0.04 - - - - -

5. Emerging market for burger 0.04 2 0.08 4 0.16 3


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aficionados

6. Consumer preference towards

products with unique taste and

presentation

0.08 4 0.32 1 0.08 2

7. Consumer preference towards

pleasant store ambiance

0.08 3 0.24 1 0.08 4

8. Increase in average annual family

income by 17.03% as compared to an

increase in average expenditure by

18.31%

0.06 3 0.18 2 0.12 4

Threats

1. Ilonggos are prudent when it comes

to spending

0.10 3 0.30 2 0.20 1

2. Current Inflation trends (As of

January 2011,inflation rate is 3.5%)

0.10 3 0.30 2 0.20 1

3. Demand for chicken inasal/barbeque 0.06 - - - - -


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rises

4. Close substitutes are more preferred

by the consumers

0.06 4 0.24 2 0.12 3

5. Existence of low-cost fast food chains

in Iloilo

0.06 3 0.18 4 0.24 1

6. Traffic congestion 0.04 - - - - -

7. Construction of Plazuela 0.04 1 0.04 2 0.08 4

Total 1.00

Strategic Alternatives

Product Diversification and

Development

Kiosks in Malls and

Universities

Put up

P

Key Factors Weight AS TAS AS TAS AS

Strengths

1. The firms Liquidity ratio is 1.92 0.05 2 0.10 3 0.15 4

2. Employee morale is high 0.05 - - - - -


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3. The firm has a Web site 0.03 - - - - -

4. On-time delivery of products from the

commissary

0.07 4 0.28 2 0.14 3

5. Food quality distinctive taste and

freshness

0.12 4 0.48 2 0.24 3

6. Store ambiance 0.07 4 0.28 2 0.14 3

7. Additional services (WIFI connection;

Television)

0.05 - - - - -

8. Availability of complementary goods 0.06 - - - - -

9. Food presentation 0.02 4 0.08 2 0.04 3

10. Presentation of menu 0.02 4 0.08 1 0.02 3

Weaknesses

1. Average daily profit dropped from

P25,000-P27,000 to P10,000 per day

0.08 4 0.32 3 0.24 2

2. Monthly expenses increased from

15% to 20%

0.06 - - - - -


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3. Lack of parking area 0.04 1 0.04 3 0.12 4

4. Pricing 0.09 4 0.36 3 0.27 1

5. Internal control problems 0.07 - - - - -

6. High storage/ Carrying costs 0.04 - - - - -

7. Career development programs of

employees

0.02 - - - - -

8. Research and Development 0.04 4 0.16 2 0.08 3

9. Inconsistency of promos 0.02 4 0.08 3 0.06 1

Total 1.00 4.54 2.98


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In the table above, three alternative strategies - (1) Product Diversification and

Development, (2) Kiosk in Malls and Universities and (3)Put up a branch in Plazuela- are being

considered by the proponents for the company. The other strategies that the proponents

recommend can be combined with any of these without incurring a large expense.

The first alternative product diversification and development which involves introduction

of a new product or products that can be complimentary to the existing products or improvement

in the current products. It also involves the widening of food offerings to capture a larger market

share. In the case of Crave Burger, the company can introduce burger steak with mash

potato/rice, fruit juices, fruit shakes and tea. Since rice is a staple food in the Philippines, the

company may opt to introduce rice meals with burgers. The proponents also suggested that the

company launch a new promotion named make-your-own-burger to attract potential

customers. In line with this, the company may shift from the waiting line set-up for taking orders

to table service set-up. The company might also want to play music instead of the television to

lessen their operating cost.

The second alternative involves setting up new branches in the form of kiosks in malls or

universities. This strategy will involve marketing directly to customers which will lead to

recognition and establishment of the brand. One of the concern of customers of the company was

that the store lacks ample parking space, if the company set-up a kiosk in malls, they would not

have to incur additional costs to expand their parking lot. The company may also provide promo

stubs and improve their privilege cards by making them available in all branches, including the

kiosk.


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The third alternative involves setting up a branch in Plazuela, since it offers a site where

people can easily access restaurants. In addition to this, there is a parking area available for the

customers of Crave Burger. It is also a place where people often visit; this will also give way to

the recognition and establishment of the brand name. The company may also apply the strategy

to shift from the waiting line set-up for taking orders to table service set-up.

The sum total attractiveness scores of 4.54, 2.98, and 3.39 respectively indicates that the

company should diversify and offer new products. In the long run, the proponents suggest that

the company establish a branch in Plazuela since it is a relatively attractive investment.

STRATEGY IMPLEMENTATION

After making the decision on what strategy to pursue is the conversion of the chosen

strategies into action. For successful implementation the top management should initiate

determined and timely actions to establish the strategy within the company. The subordinates of

the company must see the relevance of the strategy for the success of the company and must see

the management exert serious effort in implementing it so as to motivate them to participate in

the implementation process.

Formulation and Publication of Policies

Devising and publishing policies promotes easier facilitation and implementation of the

strategies. Having a set of guidelines, rules, procedures and administrative practices will make

Craves operations more organized. The policy would inform the employees of their specific

roles and responsibilities thus causing them to be more productive. These policies are also very


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important in addressing recurring problems that employees face during the implementation stage

especially when Craves owner is not always available for consultation regarding decisions to be

made. Publishing on the other hand will ensure that employees are aware that such policies exist

and that they would consult the policies accordingly to resolve issues and doubts about the steps

being employed during the implementation stage. Also, policies will give the employees a degree

of freedom of what may be done to support existing strategies and its implementation, and help

them avoid actions that is not aligned with company objectives. The proposed policy will cover

issues on the following area:

y Hiring Policyy Recruitment guidelinesy Pre-employment Requirementsy To have extensive or limited, and formal or informal training of employeesy Compensation and other benefitsy Performance Evaluationy Attendance of employees (absenteeism; tardiness)y Code of Disciplinesy To buy, lease or rent store premisesy Store Policyy Advertising

Communication of Strategic Plan

To gain support and obedience from the members of the company the management

should also seek input from them and clearly communicate the chosen strategic plan. The


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management should discuss the details of the plan to the employees and make the subordinates

see the value and importance of the strategies to the company. This would require the

management to identify steps on how to disclose the plan to the employees in a way that would

not cause too much resistance on their part. Asking for inputs from the employees in making

strategy-implementation decisions makes them feel more involved and participative in the

strategy implementation process. These would include disclosure of the changes to be made in

the company and the actions needed to bring these changes like training and orientation of

employees.

Regular Meetings

The employee should also be aware of their performance compared with their

competitors performance. An exchange of observations of issues that may affect the company

and its strategies should be done between the management and the subordinates. To facilitate

communication and address the issues or any problem that may arise in Crave, regular meetings

of employees should be done at least once a month. These would serve as a way for the

employees to discuss their concerns about the change, their observations about the responses of

customers and the problems in operations that the manager may not see. Also, regular meeting

will be used in formulating short-term and long-term strategies and in evaluating performance.

Employee Orientation and Training

Before implementation starts management should be able to prepare the employees for

the changes through orientation and trainings. This will not only ease the fears of the employees

but will also make them more competent for the task at hand. Training and seminars will also

correct some unwanted behaviours of employees through proper education of employees. These


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efforts will not only improve the service of employees but will also serve as a career

development and boost their confidence thereby creating a positive outlook that would motivate

them to work.

Reorganization and Restructuring

Since the company had just recently lay off of employees the company should reorganize

and prepare new organizational charts in order to clarify the flow of authority and to inform

employees of their certain accountabilities. The management should make sure that the hired

supervisor is competent to lead the service crews and other employees and responsible enough to

oversee the operations and make the necessary reports to the owner and in a timely basis. The

hired accountant should also make utmost efforts to account transactions and prepare financial

statements so that the management would have a basis for decisions.

Setting Objectives

Setting both short-term and long-term objectives will motivate the employees and the

management to work together towards a common goal. These objectives will give the company

direction to what it plans to be and will serve as the bases in evaluating performance. These may

include establishing target sales and target number of menus or burger fixings to be introduced

monthly, quarterly or yearly as a support mechanics for product differentiation strategies. Crave

should take the opportunity to initiate global changes in policies, practices, or procedures in

response to identified needs in order to stay competitive in the market.

Establishing Timetables


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Implementation projects rely on project schedules to keep them on track. Having

timetables provides as a visual tool for the management to evaluate how far along they are from

the targets and how much time they have to improve existing strategies before the deadline.

Crave may use Gantt charts to plot the activities and the duration of these activities. This will

help monitor the progress of company in strategy implementation and help ensure timely

employment of the said strategies. Timetables can be posted on bulletin boards, written on

whiteboards or printed in papers and placed in an area where it is accessible to employees.

Reports and Projected Financial Statements/Budgets

The financial and managerial reports help the manager and the owner evaluate, through

comparison of budgeted and actual and computing for variances, how efficient and effective the

whole company is in its operations. Financial statements would also serve as a vehicle for

making new decisions and setting up new activities. Auditing would also be easier when

organized financial statements and managerial reports are available. The owner will be able to

see if assets are safe-guarded and utilized well and would also reflect the performance of the

employees. This may also serve as basis for giving rewards to the employees for a job that is

well done.

Surprise Visits and Audit of Owner

Surprise visits of the owner will serve as control for the organization. Evaluation

and audit should be done by owners at least quarterly to make sure that reports submitted to them

are not fabricated and that employees act accordingly to their line of duties. This would also

discourage connivance of employees against the management or the owner and will further


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safeguard the companys assets. Performing company visits would also make the management

see the restaurant at operations and duly make observations to improve services and operations.

The management may also involve the customers in the audit process through feedback forms

and drop boxes for customer mails and complaints. It may also be important to incorporate

customer response into employee evaluations to enable supervisors to provide positive feedback

and encouragement for the continued commitment of personnel to effective customer response.

Review and Revision of Objectives

The review and appropriate revision of objectives helps re-examine the baseline of the

strategies. Through constant data gathering and analysis management would be able to correct

faulty steps in the implementation process and make adjustments for changes in the environment.

The management may get the required data from the reports of employees and feedback of

customers. The company should be flexible enough and take steps to modify approaches

accordingly. This would also entail to support approaches that are agreeable or compatible with

enhanced response of customers.

Employee Rewards

To make employees feel appreciated and to honor their contributions to the successful

implementation of strategies, the management should inform employees and celebrate ongoing

accomplishments in the company when specific objectives are met like reaching or exceeding

target sales and reaching quota. This would encourage participation of employees in

management efforts. The company may reward the employees through get-together celebrations


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or through additional incentives which improve the team-building of the company. To make the

stakeholders aware of the achievements of the organization the management may also publicize

these improvements in the company internally to the staff and externally to the customers. This

would promote the company image and may increase prospective customers.

Issues:

y Management/Employees resistance to changeSince resistance to change can be considered the single supreme threat to successful

strategy implementation, the management of Crave Burger should make sure that the people

within the organization are well-informed about the changes. It is important that employees

should really understand the primary reasons for such changes which are also for their own

welfare in order for them to easily accept and support new strategies formulated by the

management.


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Crave Burger will use a rational or self-interest change strategy approach for

implementing changes which is a struggle to persuade individuals that the change is for their

personal advantage. This can be done by allowing the employees to participate in the

development of strategies. Another way will be through incentives granted to them if ever the

change will be successful. A good communication is also required for a more effective

implementation of change. Employees will become more motivated if the need for change is

justified by the management. Lastly, to check whether the change had been successfully

implemented, employees will communicate their feedbacks to the management.

y Mismanagement reports especially financials, hire competentaccountant/employees

Effective management is one of the critical success factors for a firm to become

profitable. And for Crave Burger, they will have to hire a competent accountant or bookkeeper

because their present bookkeeper is not efficient. Crave Burger has no financial statement for the

past years and the firm is reported to have decreasing revenues. The new accountant or

bookkeeper should prepare financial statements for the company because these documents are

very important in order to examine and assess the performance of Crave for the succeeding

months/years.

Financial statements are also needed in order for the accountant to prepare financial ratios

for Crave. And these financial ratios will be very helpful in assessing the financial position of the

firm and also for the formulation of short-term and long-term strategies by the management.


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y Internal Control ConsiderationsCrave Burger is recently faced with lots of predicaments. These are the excessive

overhead expenses, decreasing revenue, increasing inflation rate and many more. But one factor

is being neglected by the management of Crave and that is the lack of effective internal control

measures within the vicinity of the store. Internal control is a very significant factor that the

management of Crave Burger should consider. And in order to address the internal control flaws

of the firm, the firm should hire an accountant which is to prepare the necessary financial

statements needed by Crave.

Next would for be for the manager to conduct supervision and regular visits in order for

him/her to know what are the concerns and problems within the store, to check if the employees

are performing well and to collect feedbacks from customers regarding their experience.

And lastly, there is a need to review the companys objectives or to check the rigidity of

these objectives to adapt to changes in order for the Crave Burger to efficiently develop and

formulate strategies that would address the concerns of the firm as well as its internal control

problems.

Marketing Issues


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Since countless of marketing variables affect the success or failure of strategy

implementation, some of the marketing decision may require written policies and those

applicable to Crave Burger are enumerated below:

1. To use heavy, light or no TV advertisingThe company is small business as of now and is unable to intensify their

marketing schemes because of limited resources, but in the future the

management may want to employ TV advertising. A written policy must be made

in order to solve conflicts in implementation of marketing strategies.

2. To be a price leader or a price followerThe company is a price leader because of their diversified product offerings and

the willingness of the market to pay for that particular product however, the

company does not yet have a formal policy regarding this. The proponents

suggest that the management should make a written policy to avoid conflicts in

the future regarding pricing.

3. To advertise online or notThe company already has a website but they are currently not advertising on other

pages in the web. The company should also improve their website to attract more

customers. The company should have a formal policy whether to allow

advertising on other web pages to resolve future conflicts like misuse of company

logo or trade name.

Product positioning

PRODUCT POSITIONING MAPS


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I.

The companys product positioning in terms of diversification and price should be in the

1st

quadrant since the company does not have a competitor on the quadrant, it does not squat

between segments and it is not positioned in the middle of the map.

STRATEGY EVALUATION

Timely and effective evaluation of strategies is crucial to the success of the strategies. It

may consist simply on assessing if the strategies are working enough to have a positive and

desired impact on the organization. In appraising the strategy, there are four criteria. Consistency

and Feasibility is mostly based on internal considerations while Consonance and Advantage are

more on the external assessment.

Consistency

Diversified Products

Non-Diversified Products

Low

Price

High

Price

CRAVE

BURGER

McDONALDS

PERRI

TODDS


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Consistency of goals and policies is important in an organization. Managerial

efficiency should be coupled with consistent strategies so that these strategies are

implemented with ease throughout the business. The implementation of the strategy of

product differentiation and improvement of services is consistent with Crave having the

human resources that can be trained and oriented for this strategy. If this pushes through,

then the strategy will be a success.

Consonance

A strategy must be able to respond to the external environment and the critical

changes occurring within it. Businesses with similar food business with Crave Burger

offers products that are generally of lesser selling price thus making them more

affordable to a prudent Iloilo consumer. Crave products however boasts on high quality

ingredients. In addition to high quality products, businesses that deals with Market A to B

should offers quality service to its customers like having table set ups. Therefore, the

strategy that focuses on offering quality products, although with the same current selling

price of Crave, but with additional add-on like a more personalized feel in the services

to the customers will be effective response to the competitive external environment.


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Feasibility

The final broad test of strategy is its feasibility. Strategies should be feasible and

can be attempted within physical, human and financial resources of Crave Burger. In

evaluating the strategy of product differentiation, it is to be noted that Crave has service

crews that can be trained, already has people skills, and the talents that are needed for

them to provide more personalized service to Craves customers. Financially, the firm

will be able to provide for this kind of change since they are liquid enough and that they

still have enough manpower to accommodate this strategy.

Advantage

Competitive advantage results in superiority in one of three areas: resources, skills

or position. In the strategy of product differentiation, position is an advantage. Positional

advantages, such as Crave Burger, being the pioneering burger shop here in Iloilo and has

products that are generally unique and classy, is also a competitive advantage of this

establishment. Thus, having a strategy that enhances this area can be successful and may

also may help in generating positive cash flows to the entity.

CONCLUSION

Crave Burger is a unique and classy food establishment. They boast of products that are of

high quality and a place where customers could be relaxed while they enjoy their food. But due

to some internal problems and also a lot of externalities, Crave Burger has been experiencing

setbacks in their operations. Because of that, the researchers developed a number of strategies to

address these problems.


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In choosing the appropriate strategy however, the company should first develop and identify

their priorities. Priority setting includes determining what problems should be immediately

addressed so as to get a direct result. For example, if the company felt the need to address the

problem in their internal management, they should first implement the strategy of hiring

competent accountants, managers or supervisors. Another example is if they want to increase

customer satisfaction in terms of service thus promoting customer loyalty, they can implement

the strategy of product differentiation through personalization of service by providing table set

ups instead of current self-service. If the company wants to think in the long term, establishment

of branches in malls or places such as Plazuela can be recommended. It is to be noted that all the

strategies suggested by the researchers are feasible and do-able. Only the proper timing of their

implementation is dependent on the company. Therefore, it is on the companys discretion on

what strategy they seem to need urgently should be done.

In formulating strategies, the researchers viewed all aspects of the company. For instance,

strategies should not only focus on one aspect like the marketing but still must also be consistent

with what the financial capacity of the company. Concentrating on what is available saves a lot.

Therefore, the best strategy that the researchers could recommend is product differentiation and

improvement of service. Since product quality is an advantage to the company, and service is an

aspect the company has a space to improve on, this strategy may be the most helpful of all in

getting the present status of the company to a higher level.


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