Planning: La Favorita Corporation 1  

 

Adrián Silva, Esteban Acosta & Santiago Mancheno
Principles of Management
15/11/2014
Planning: La Favorita Corporation
La Favorita Corporation is one of the most successful companies not just in Ecuador
but also in South America. The primary objective of this corporation is the organization and
management of groceries shops and supermarkets where the costumer can find almost
every national or international good (Monteverde, García & Chiriboga, 2008). In 1934, this
corporation was born in Quito and the following years it experienced a constant growth
because of two main operational changes: Centralization of storehouses where goods are
delivered to each supermarket and the creation of their own brand products in 2002
(Monteverde et all., 2008). Nowadays, this corporation is one of the biggest companies in
the country.
As we mentioned before, La Favorita works within the supermarket industry
offering the costumers all kinds of products. To accomplish this goal, the corporations has
different auto service lines for different costumers segments. Supermaxi offers more than
16 000 items to satisfy daily needs, Megamaxi is the first hypermarket in the country
offering all kind of products for home, AKI supermarket satisfying needs for a low-income
segment, SUKASA and Todohogar for home appliances, Bebemundo offering clothes and
items just for newborns, Mr. Books as a complete library, TVentas as the first company to
sell products in a TV program, Jugueton as the biggest toy industry in South America and

establishing the strategy required in order to achieve these objectives. the industry of supermarkets is divided in two mayor groups: Supermaxi (La Favorita Corporation) and Mi Comisariato (El Rosado Corporation). in the coastal cities like Guayaquil. On the other hand. For example with corporation La Favorita one of the problems detected was that in areas considered less urbanized people usually tend to choose for cheapest prices . the new growth of mini markets and hypermarkets targeting low income customers and marginal sectors constantly expand the competitors area for La Favorita corporation. 2009).  Planning: La Favorita Corporation 2     Kywi as the biggest home and construction company in the country (Corporación Favorita. Big corporations such as La Favorita usually follow the following pattern for developing and implementing plans or projects. First they start with the identification of the problem. statistics and data that could help to identify a solution faster. La Favorita has the customer preference however. It implies defining the objectives of the proposed project. El Rosado has the customer preference. Depending on the gravity of the problem it might require a deep study that may include surveys to everyone involved. 2014). In Ecuador. For the main north-central cities of the country. they evaluate the main causes and break them into small parts to analyze them profoundly. Planning is a key element of executing an idea or project. and developing plans for the activities of the organizational work. This element is very important considering that it gives the idea a direction making the people involved to stay focused and avoid distractions in order to maximize time and minimize wastes of resources (Robbins & Coulter.

the cost required and the expected profit. La Favorita corporation is always looking to be the best as mentioned in their Vision “Being the more efficient and profitable commercial chain in America.A.  Planning: La Favorita Corporation 3     provided by chains such as Santa Maria markets rather than buying at Supermaxi or Megamaxi. This company manages the hydroelectric plant “Calope” which is currently providing La Favorita and all their subsidiaries with renewable and efficient energy (Ecuador Ecológico). For example a project implemented by La Favorita was the creation of ENERMAX S.A. On the other side. They first defined their . when ideas surge from innovation instead as solutions to problems. project show some important aspects of planning. This problem was detected because the stores installed in these areas were not growing as the plan expected so the corporation proceeded with surveys to costumers that pointed out to this issue. 2012). The mentioned project is a great investment and has brought to the corporation savings since they generate all the energy they use also it considerably improved their reputation with the customers since they become a great example of a clean energy corporation obtaining the Renewable energy certificate in 2013 (Corporación Favorita. The example of the survey made by La Favorita and the ENERMAX S. This project can be classified as a strategic plan of development considering it was a long-term project that helped La Favorita achieved its first place in the corporation rankings. Once the information from these studies is obtained the cost and profit are compared to see if the project is going to be a viable option and then they proceed to the implementation. 2012). the procedure requires some studies from the market where it is going to be implemented. offering the best customer service” (Ekos.

 Planning: La Favorita Corporation 4     objective which was implementing a renewable source of energy that can supply enough power for the operations performed by the corporation and their subsidiaries. and then they executed the plan that eventually granted them the Renewable Energy Certificate in 2013. performing studies and feasibility studies for the proposed Hydroelectric plant. . then establishing the strategy.

(10ma Ed. Recovered from: http://www.).). Reconocimiento a la excelencia empresarial.youtube.jsessionid=0960037CDA15F7A272DECB7EACB41104 Ecuador Ecológico. . Revista Ekos Negocios. (2014.  Planning: La Favorita Corporation 5     References Corporación Favorita. (2012).F: Editorial Prentice Hall. García.com/watch?v=Uship8x7eIY Corporación Favorita. Recovered from: http://www. (2009). (2012). Ecuador.com/directorio_empresas_ambientales_ecuador/enermax-sa/ Ekos Negocios. S. J. (s. La Corporación Favorita [Video File]. Robbins. January 1). pp.A (Undergraduate Thesis). Enermax S. Administración. (2008). M. Corporación Favorita: Reconocimientos Exclusivos. & Chiriboga. Determinación de la Estructura de Financiamiento Optima para Empresas Ecuatorianas: Caso Corporación Favorita C.f. Una década de excelencia empresarial. Recovered from: http://ecuadorecologico.com/portal/es/web/favorita/reconocimientosexclusivos. Monteverde. 124 – 125. México D. J. Ecuador Ecológico.A.corporacionfavorita. E.. Escuela Superior Politécnica del Litoral. & Coulter.

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