An Analysis of the Sourcing Strategies of Selected Buko Pie Enterprises in Los Baños, Laguna Amidst the Covid-19 Pandemic

Date

1-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jeanette Angeline B. Madamba

Committee Member

Jewel Joanna S. Cabardo, Rei Chino C. Pua, Normito R. Zapata, Jr., Mar B. Cruz

Abstract

The buko pie, a trademark of the town of Los Baños, Laguna, is part of the tourism industry in the town. Just like any other business, this was affected by the COVID-19 pandemic. In this study, the general objective was to analyze the sourcing strategies of selected buko pie enterprises in Los Baños, Laguna amidst the COVID-19 pandemic. The specific objectives of this study were (1) to describe the profile of the buko pie enterprises and entrepreneurs in Los Baños, LAguna; (2) to discuss the buko pie supply chain and their sourcing strategies before the pandemic; (3) to explain their supply chain and sourcing strategies during the start of the pandemic up to the current time period; (4) to identify and evaluate the effect of supply chain disruptions to the buko pie enterprises with respect to their sourcing strategies during the COVID-19 pandemic; (5) to assess the strengths, weaknesses, opportunities, and threats faced by the buko pie enterprises; and (6) provide recommendations which could improve the supply chain management and sourcing strategies of buko pie enterprises.

Five buko pie stores namely (1) VM Delight Friendly Buko Pie Store, (2) Shiela's Buko Pie Store, (3) Mitz' Bakeshop, (4) Angelica's Original Buko Apple Pie Bakeshop and Pasalubong Center, and (5) Orient: The Original Buko Pie Bakeshop were the respondents of the study. VM Delight has been in the industry for 9 years, Shiela's for 42 years, Mitz' for 40 years, Angelica's for 2 years, and Orient for 57 years. All stores have only one branch in the town, with the exception of Mitz' that has two branches. VM Delight is located in Brgy. Anos, Shiela's in Brgy. Maahas, and Mitz', Angelica's and Orient in Brgy. Malinta. All are located along the National Highway of Los Baños.

For the personal entrepreneurial competencies of the owners of the selected buko pie stores, the top three competencies are the goal setting competency, the information seeking competency, and the systematic planning and monitoring competency. On the other hand, the lowest three competencies displayed str risk-taking competency, the persistence competency, and the opportunity seeking competency.

As for their supply chains, each buko pie store has their own unique supply chain. Generally, their supply chain consists of raw materials suppliers, the produced and retailer, and the final customer. Their raw materials suppliers were not disclosed in this study as the businesses keep such information confidential. The raw materials suppliers were not disclosed in this study as the businesses keep such information confidential. The raw materials are delivered to the production area and then the finished products are transferred to their main store. Most of the buko pie stores only have one branch and only make use of this distribution channel. Mitz' Bakeshop is the only buko pie store with two branches in the town.

With respect to their sourcing strategies, the businesses claim that their sourcing strategies are the same before and during the pandemic. Hence, they only answered the KSFs in the strategic sourcing once which is for both before and during the pandemic. Based on the results, the top three KSFs in terms of importance and implementation are leadership in strategic sourcing planning, linking sourcing strategy to corporate strategy, and sourcing strategy. Meanwhile, the bottom three KSFs in terms of importance are competitive analysis, supplier collaboration, and supplier development.

For the SWOT analysis, the general strengths of the buko pie stores include quality of the buko pie made, being family-owned and run by the family, have trained employee and employee benefits, ensured smooth communication, and provided delivery. The weaknesses are lack of distribution channels. Opportunities include expansion, mechanization, and use of technology such as social media. Threats include inflation, other buko pie players, consumer preference, and ambulant vendors.

It is recommended for the buko pie stores to use different sourcing practices instead of just one and to establish a sourcing strategy using the five phases in strategic sourcing by Frederico, Kumar, & Garza-Reyes (2021). Included in these phases are a contract between supplier and the buko pie stores to ensure continuous supply from the supplier. Other sourcing practices must be done as well to ensure multiple sources of supplies. Another recommendation is for the businesses to adapt to the changing environment by utilizing technologies such as mechanization of the production of buko pie and creating an online presence through social media or food delivery apps.

Language

English

LC Subject

Pies, Pastry industry, COVID-19 Pandemic, 2020-2023

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 G35

Notes

RESTRICTED: Not available to general public, for consultation with author/SP Adviser and to those bound by confidentiality agreement.

Document Type

Thesis

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