A Case Study of Villadiego's Bakery and Pasalubong

Date

2017

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nanette A. Aquino

Abstract

The manufacturing of bread, cakes, pastries, pies, and similar “perishable” bakery products ranked first with the most number of establishments in 2013, accounting for 26.3% of all the establishments in the country. With the rising number of bakeshops, there is a need for the subject bakery enterprise of this study to find out what strategies it can employ to be more competitive.

This case study on Villadiego’s Bakery and pasalubong was conducted in order to present and discuss a noteworthy business issue which has organization-wide implications. The owner has two other businesses which is a piggery and a feed mill business. Rejects in the bakery were sent into their piggery business. Since the rejects were not enough to feed swine, the owner put up a feed mill for own use.

The owner of the business, Mr. Isidro Villadiego, served as the primary source of information needed in conducting the study. Aside from Mr. Villadiego, his workers were also interviewed by the researcher in order to get the two sides (owner-employees) of the business. The other information were based on the observations of the researcher. Also, the owners of the two major competitors mentioned by Mr. Villadiego were also interviewed for competitor analysis.

The study made use of both primary and secondary data in analyzing and describing the present condition of Villadiego’s Bakery and Pasalubong in Sariaya, Quezon. An analysis of both the internal and external aspects of the business was conducted to allow a more effective evaluation of the practices, trends and status of the business. Secondary data was obtained from different government websites such as Philippines Statistics Authority (PSA), Food and Nutrition Research Institute (FNRI), and Department of Trade and Industry (DTI). Also, information on the share of bakeshops was accessed through websites such as Euromonitor Philippines and Canadean.

The bakery and cereals market in the Philippines has a strong growth both in value and volume from 2009-2014. The volume consumption of bakery and cereals was forecasted to grow from 349.2 kg million in 2014 to 429.6 kg million in 2019 (Consumer and Market Insights: Bakery and Cereals Market in Philippines, 2015).

The identified major competitors of the enterprise are La Prima Bakery and Cadiz Mazapan Bakery. Both bakeries have the same number of products offered. Further, the prices of the products of the subject enterprise are almost the same with that of the other two bakeries. Moreover, the location of the store of Cadiz Mazapan Bakery is also beside a branch of Villadiego’s Bakery and Pasalubong in the town of Sariaya. On the other hand, the store of La prima Bakery is located in Candelaria, Quezon.

The customers of Villadiego’s Bakery and Pasalubong are residents of the area, sari-sari stores, and people who buy in bulk to resell the products. Seventy percent of the products are sold to wholesalers, and 30% goes to retailers. The bakery offers 17 bread products and their bestselling product is pinagong. As of the time of the study, the business had two stores, one in Lutucan, and the other is in the town of Sariaya.

The business operates 24 hours a day with two shifts. The basic raw materials are sourced mostly from Lutucan, Sariaya. Equipment such as pugon, spiral mixer, and egg beater are used in the bakery. Their most recent purchase was a rack oven.

Mr. Villadiego has 34 workers. For each production of a baked product such as malambot or matigas, he assigns a supervisor who will oversee the things done inside the production area. Salaries to employees were based on the number of sacks of finished products, except for those assigned in the store, packaging and sanitation.

The business does not have any major problem in its external environment, and so the researcher has identified several issues in its internal environment. The issues identified in the business were personnel and production problems, which might affect the productivity and quality of the product. With the other competing bakeshops in the area, it will be difficult for Mr. Villadiego to maintain its customers, since the two competitors offer almost the same products. With that, there will be only a little differentiation for the other products.

Problem tree analysis was made in order to connect causes and effects to the main problem in the business which is problems with people in the production. Causes that were identified were inappropriate compensation, not having an over-all supervisor, lack of training and development for workers, and absence of worker handbook. The possible effects of the human resource problems are decrease in productivity which affect the volume of production.

In order to come up with the possible alternatives to the issues identified, Internal Factor Evaluation (IFE), and External Factor Evaluation (EFE) Matrices were derived. Results showed that the business performed strong internally. However, the business was found not very effectively taking advantage of existing opportunities and minimizing the potential adverse effects of external threats. SWOT Analysis was performed to identify different strategies that the business can implement, which were included in the strategic plan.

A strategic plan was prepared in order to present the vision, mission, and objectives and to identify different actions that could be implemented in the four business functions, especially human resource. Worker handbook should be provided; an over-all supervisor position should be created then a capable person should be hired; and training and development with workers should be implemented. Proper compensation was discussed in the finance section.

Language

English

LC Subject

Baked products

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 P86

Notes

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Document Type

Thesis

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