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Cultura Documentos
PROFIT Maximizing return to shareowners while being mindful of our overall responsibilities.
PEOPLE Being a great place to work where people are inspired to be the best they can be
Bringing to the world a portfolio of beverage brands that anticipate and satisfy people's
PORTFOLIO
desires and needs
Nurturing a winning network of partners while capitalizing on technologies to build
PARTNERS
capabilities for the future and maintain leadership in all beverage categories
We aspire to be the most respected, preferred, and trusted global company by:
Technology Philosophy
PROFIT Maximizing return to shareowners while being mindful of our overall responsibilities.
PEOPLE Being a great place to work where people are inspired to be the best they can be
Bringing to the world a portfolio of beverage brands that anticipate and satisfy people's
PORTFOLIO
desires and needs
Nurturing a winning network of partners while capitalizing on technologies to build
PARTNERS
capabilities for the future and maintain leadership in all beverage categories
Concern For Employees Concern for Nation Building Concern for Public Image
PROFIT Maximizing return to shareowners while being mindful of our overall responsibilities.
PEOPLE Being a great place to work where people are inspired to be the best they can be
Bringing to the world a portfolio of beverage brands that anticipate and satisfy people's
PORTFOLIO
desires and needs
Nurturing a winning network of partners while capitalizing on technologies to build
PARTNERS
capabilities for the future and maintain leadership in all beverage categories
4.30%
High Nutrition
Kraft
Philbev
Lightly Flavored Strong Fruit
Substitute Products
High
Packaging & dry ingredients are Highly competitive industry Easy to switch brands
common In industry with many players
Easy entry
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
COMPETITOR PROFILE MATRIX (CPM)
Note: rating values are as follows: 1=major weakness, 2=minor weakness, 3=minor strength, 4=major strength.
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05 3 0.15
6-E Stabilizing currency
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs
0.10 2 0.20
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional beverages with
value-added propositions
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate
17%is expected
Not tryingtotocontinue to increase
50% lose 0.05 3 0.15
weight
5-T New 5%
Technology allows greater efficiency for package material suppliers that
Very
translates to lower cost
0.05 3 0.15
overweight
6-E Stabilizing
13% currency
Somewhat
0.05 4 0.20
overweight Wide positively acceptance as
EXTERNAL THREATS 83% Trying to lose Nutritious Refreshment for the family:
1-C weight
Decreasing sales growth of refill packs
A little
Vitamins are well 0.10 2 with 0.20
associated
32%
overweight
2-SC Decreasing trend of in-home consumption fruits and fruit juices
0.05 3
Vitamin and mineral content is
0.15
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
standard 0.05 2 0.10
Vitamin C is the most immediate
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
of associations 0.05 3 0.15
Source: ACNielsen Regional
Consumer Confidence Survey- First Most products contain multiple
5-E Decreasing
Semester 2004CPI for food, share of wallet is shifting to telecommunicationas
0.05 perception
vitamins and minerals: 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitabilityof
of completeness
industry or robustness
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05 3 0.15
BEVERAGE PhP/ 200mL
6-E Stabilizing currency
Pwd Juice 2.00
0.05 4 0.20
EXTERNAL THREATS
Juice DOY 6.00
1-C Juiceof
Decreasing sales growth Bottle
refill packs 10.00
0.10 2 0.20
CSD 6.00
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05 3 0.15
6-E Stabilizing currency
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs
0.10 2 0.20
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions 2006 Growth in PCS
TOTAL 0.05 2
2006 TOTAL 0.10
Sales EOC Tang POWDERED POWDERED JUICE
JUICE UCS Offtake
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko Total Brand/ Cat +9% +1% +5% 0.05 3-1% 0.15
Litro Packs +19% +6% +12% +12%
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
Refills -12% -18% -16%
0.05 3-16% 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
Projected
translates to lower cost
100,000,000 0.05 3 10 0.15
76.5 Million in 90,000,000 9
6-E Stabilizing currency
May 2000 to 0.05 4 0.20
80,000,000 8
141.7 Million in
EXTERNAL2040
THREATS 70,000,000 7
1-C Decreasing sales growth of refill packs
60,000,000 0.10 2 6 0.20
2-SC Decreasing trend ofmeans 50,000,000
in-home consumption 5
Which 0.05 3 0.15
that 65 Million 40,000,000 4
3-C Consumption shift of powdered juice users to competitive functional beverages
people will be
with value-added propositions 30,000,000
0.05 2 3
0.10
added to the
4-C Stiffer competition with entry of new players both local such as Magnolia powders
countrys
and imported such as Zuko
20,000,000
0.05 3 2
0.15
population 10,000,000 1
5-E Decreasing CPI year
for food, share of wallet is shifting to telecommunicationas
every from 0 0.05 3 0 0.15
year 2000 toP=Political, T=Technological,
E=Economic, SC=Socio-cultural, 1995C=Competitive
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
2040 Source: Results from 2000 Population Census - NSO
0.05 3 0.15
TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers
that translates to lower cost
0.05 3 0.15
6-E Stabilizing currency
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs New filler lines and case packing was
introduced last year that allowed plants to
0.10 2 0.20
2-SC Decreasing trend of in-home consumptionincrease their output 0.05 3 0.15
Improvement in alternative pouch
3-C Consumption shift of powdered juice users to competitive functional beverages
material allowed for cost-savings 0.05 2 0.10
with value-added propositions
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05 3 0.15
6-E Stabilizing currency
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs
0.10 2 0.20
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors % FOOD EXPENDITUREWeight Rating
Score
TO TOTAL FAMILY EXPENDITURE
EXTERNAL OPPORTUNITIES
1- SC
60
Increasing trend in health and wellness with purposeful nutrition
50 3.8 0.20 2 0.40
2-SC
4.2
Absolute affordability still the main concern of40majority of households4.7
today 5
0.20
5.3 3 0.60
3-C Increase consumption of Tipid Litro Packs 30
0.10 3 0.30
20 44.7 43.5 39.5 38.7 37.3
4-SC Philippine population growth rate is expected to continue to increase
10 0.05 3 0.15
5-T 0
New Technology allows greater efficiency for package material suppliers that
0.05 3 0.15
translates to lower cost 1991 1994 1997 2000 2003
6-E Stabilizing currency Consumed At Home Consumed Out Of Home
0.05 4 0.20
Source: Family Income and Expenditure Survey, NSO
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs
0.10 2 0.20
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
PPT CHG
% Beverage Units Consumed by Powdered Juice Users vs YA
2 2 Fresh Juice(Fruit/Veg)
1- SC Increasing trend in health and wellness34 with purposeful nutrition 5
4
0.20
RTD Tea
2 -0.4
0.40
4.9 +1
6.0
2-SC Absolute affordability still the main concern of majority of households today
0.20
RTD Juice 3 - 0.60
22 15
3-C Increase consumption of Tipid Litro Packs 3-in-1 Coffee
0.10 3 +2
0.30
Milk Powder
+0.2
4-SC Philippine population growth rate is expected to continue to increase
23
21
0.05
Choco (Powdered) 3
+1
0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05
Powder Juice
3 -7 0.15
27 Carbonated Softdrinks
23 -2
6-E Stabilizing currency
0.05 4
Instant Powder Coffee
+4
0.20
EXTERNAL THREATS 2005 2006
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05 3 0.15
6-E Stabilizing currency
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs
0.10 2 0.20
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia
powders and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
Miscellaneous 0.20 2 0.40
2-SC 14% today
Absolute affordability still the main concern of majority of households
Transport & 0.20 3 0.60
Communications
3-C Increase consumption of Tipid Litro Packs
6% 0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
Household 0.05 3 0.15
Food and
5-T 13% material suppliers that
New Technology allows greater efficiency for package
translates to lower cost
0.05
Beverages3 0.15
Fuel, Light,
Water
54%
6-E Stabilizing currency
5% 0.05 4 0.20
Clothing &
EXTERNAL THREATS Footwear
Tobacco
1-C Decreasing sales growth of refill packs 4% Beverage
0.10 2 0.20
2% 2%
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
Source : National Statistics Office (NSO), 2000
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
0.05 2 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate
is In
expected
earlyto2004,
continueExecutive
to increase
0.05was 3
Order No. 295 0.15
5-T New Technology allows greaterpassed which
efficiency for raises
package materialthe tariffthat
suppliers rate on pre-mixed
0.05 3 0.15
translates to lower cost sugar, which is used mainly for powdered juices,
6-E Stabilizing currency from zero to 65%, 0.05 4 0.20
EXTERNAL THREATS Pending bill in Congress which seeks to
Decreasing sales growth of refillprohibit the use of aspartame, a sweetener
1-C packs
0.10 used2 0.20
in powdered juices. If approved, players say such
2-SC Decreasing trend of in-home consumption
a scenario may lead cost to increase by 0.05
30% to 3 0.15
3-C Consumption shift of powdered40% as they
juice users will have
to competitive to shift
functional to refined
beverages sugar 2
with value-added propositions which costs more than the artificial sweetener.
0.05 0.10
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko
0.05 3 0.15
5-E Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, aspartame use threaten industry profitability
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Weighted
Key External Factors Weight Rating
Score
EXTERNAL OPPORTUNITIES
1- SC Increasing trend in health and wellness with purposeful nutrition
0.20 2 0.40
2-SC Absolute affordability still the main concern of majority of households today
0.20 3 0.60
3-C Increase consumption of Tipid Litro Packs
0.10 3 0.30
4-SC Philippine population growth rate is expected to continue to increase
0.05 3 0.15
5-T New Technology allows greater efficiency for package material suppliers that
translates to lower cost
0.05 3 0.15
6-E Stabilizing currency
0.05 4 0.20
EXTERNAL THREATS
1-C Decreasing sales growth of refill packs
0.10 2 0.20
2-SC Decreasing trend of in-home consumption
0.05 3 0.15
Philbevs slightly better than average score in the
3-C Consumption shift of powdered juice users to competitive functional beverages
with value-added propositions
EFE shows that the company is still slow 0.05 2
in reacting 0.10
or capitalizing to external opportunities and threats
4-C Stiffer competition with entry of new players both local such as Magnolia powders
and imported such as Zuko which is a significant contributor to its decreasing
0.05 3 0.15
5-E
market share
Decreasing CPI for food, share of wallet is shifting to telecommunicationas
0.05 3 0.15
6-P Legislations on tariff rates, use of aspartame threaten profitability of industry
0.05 3 0.15
E=Economic, SC=Socio-cultural, P=Political, T=Technological, C=Competitive TOTAL 2.70
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional product
development
0.05 3 0.15
5- M Revitalized consumer hotline number with increased capability and total
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Philippines
Strong R&D resource asfrom
with strong support development center
Asia group in regional for APAC
product
0.05 3 0.15
development India and Brazil as sources of good market
5- M practices
Revitalized consumer for powder
hotline number market
with increased capability and total
0.05 3 0.15
service mindset Marketing Exchange and Global Teams in Brand
Teams and Commercial Execution
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-
out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional product
development
0.05 3 0.15
5- M Organizational
Revitalized consumer alignment
hotline number with increased up and
capability to top
management
total
0.05 3 0.15
service mindset
Joint Plan presented and approved by Coca-Cola
INTERNAL WEAKNESS Atlanta Corporate Head Office
1-F Low profit margins Approved
and 3-year plan by both parties agreed and
cash realization
approved up to Corporate 0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong expertise
in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global
Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional product
development
0.05 3 0.15
5- M Revitalized consumer hotline number with increased capability and total service
mindset
0.05 3 0.15
Global sourcing and pricing for strategic materials
INTERNAL WEAKNESS
such as sugar, CO2, frozen juice and packaging
1-F Low profit margins and cash realization
Bulk requirements (aggregated) for region 0.20 2 0.40
2-F CP
High Inventory coupled with system regionalized
low turnover forhas
and slow collection operating
weakened effectiveness
0.10 1 0.10
companys asset quality
Negotiations done by CEPG through SRM
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc. 0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional
product development
0.05 3 0.15
5- M Revitalized consumer hotline number with increased capability and total
service mindset
0.05 3 0.15
Regional R&D Centers available in Shanghai, Tokyo,
INTERNAL WEAKNESS
India, Brussels and Atlanta
1-F Low profit margins
andGlobal
cash realization of formulations and new 0.20
product 2
databases 0.40
2-F launches
High Inventory coupled with low available
turnover and slow collection has weakened
Common Innovation Framework operationalized
companys asset quality
0.10 1 0.10
3-M through
Distribution capability Stage
hampered due to Gate Process
the separation andKey
with SMC Innova
Accounts
0.05 1 0.05
Group
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional product
development
0.05 3 0.15
5- M Revitalized consumer hotline number with increased capability and total
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F
Newly created Coke service arm has opened its
High Inventory coupled with low turnover and slow collection has weakened
own call center to service complaints, promotions,
companys asset quality
0.10 1 0.10
3-M and
Distribution capability requests
hampered from
due to consumers
the separation with SMC Key Accounts
Group Boasts of 40 strong service agent, 24-hr
0.05
service, a
1 0.05
4-HR/C toll-free
High turnover of talent number
lost to other and high
multinationals tech
like J&J, telecom
P&G, etc. facilities
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional product
development Profit Margin for powders is currently at
0.05
2%
3 0.15
5- M Cash
Revitalized consumer realization
hotline number is at a
with increased low 0.83
capability and total
service mindset Revenues declined at -1.00%
0.05 3 0.15
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
Inventories steadily increasing reaching a high of
4- R Strong R&D resource with strong support from Asiafrom
group in regional product
development
P1.2M, a 15% increase LY 0.05 3 0.15
Days inventory increased to 117 days (from a low
5- M Revitalized consumer hotline number with increased capability and total
service mindset
of 46 days in 2002) 0.05 3 0.15
Inventory Turnover is 3.12 (vs 46 in 2002)
INTERNAL WEAKNESS AR Turnover is 1.93 (vs 5.85 in 2002)
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has
weakened companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Coke
Strong R&D resource KAG
with strong group
support stillgroup
from Asia organizing
in regional product
0.05 3 0.15
development Sales force still re-organizing
5- M Rationalizing
Revitalized consumer hotline number withof Distributors
increased andtotal
capability and Wholesalers
0.05 3 0.15
service mindset
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key
Accounts Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Turnover
Strong R&D resource rate from
with strong support of 2.3
Asiaper month
group vsproduct
in regional 1.4 LY
0.05 3 0.15
development Low morale based on Employee Survey
5- M Decline
Revitalized consumer hotline numberin rating
with forcapability
increased Leadershipand totalTrust
0.05 3 0.15
service mindset Decline in rating for Career Development
INTERNAL WEAKNESSDecline in rating for Compensation & Benefits
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
Currently the plant is operating at 96% Capacity 0.10 4 0.40
4- R Projection
Strong R&D resource shows
with strong support plant
from Asia will
group be 180%
in regional overcapacity
product
0.05 3 0.15
development in one year
5- M Revitalized consumer hotline number with increased capability and total
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R No
Strong R&D resource with alternative supplier
strong support from forincarton
Asia group regional product
0.05 3 0.15
development No alternative supplier for pouches
5- M Unique
Revitalized consumer ingredients
hotline number forcapability
with increased all formulations
and total
0.05 3 0.15
service mindset
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
companys asset quality
0.10 1 0.10
3-M Distribution capability hampered due to the separation with SMC Key Accounts
Group
0.05 1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
INTERNAL FACTOR EVALUATION MATRIX (IFE)
Weighted
Key Internal Factors Weight Rating
Score
INTERNAL STRENGTH
1- M Integrated Marketing campaigns across Asia Pacific region with strong
expertise in Brand building
0.20 4 0.80
2- MT Fully aligned systems between Export and Bottler due to the SMC buy-out
0.10 4 0.40
3- O Fully utilized strategic procurement through CEPG and Global Procurement
0.10 4 0.40
4- R Strong R&D resource with strong support from Asia group in regional product
development
0.05 3 0.15
5- M Revitalized consumer hotline number with increased capability and total
service mindset
0.05 3 0.15
INTERNAL WEAKNESS
1-F Low profit margins and cash realization
0.20 2 0.40
2-F High Inventory coupled with low turnover and slow collection has weakened
Philbevs slightly better than average
companys asset quality
0.10
score 1 0.10
3-O
indicates that the Company still has a lot of
Distribution capability hampered due to the separation with SMC Key Accounts
Group weaknesses to address to better support their 0.05plans.1 0.05
4-HR/C High turnover of talent lost to other multinationals like J&J, P&G, etc.
0.05 2 0.10
5-O Lack of capacity in the powdered juice line
0.05 2 0.10
6-O Weak SC due to the lack of supplier base for packaging materials
0.05 2 0.10
C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human TOTAL 2.75
Resources, I= Information Systems R=Research & Development
QSPM
TALLY TABLE
STRATEGY OPTIONS TOWS SPACE BCG GE IEM GSM TOTAL
INTEGRATION STRATEGIES
1 Forward Integration 1 1 2
2 Backward Integration 1 1 2
3 Horizontal Integration 1 1 2
INTENSIVE STRATEGIES
4 Market Penetration 1 1 1 1 1 1 6
5 Market Development 1 1 1 1 1 5
6 Product Development 1 1 1 1 1 1 6
DIVERSIFICATION STRATEGIES
7 Related Diversification 1 1 2
8 Unrelated Diversification 1 Strategic Alternatives 1
QS PM Wt. Market Penetration Market Development Product Development
Critical Success Factors AS TAS AS TAS AS TAS
Sum Total 1 6.15 5.25 4.80
Attractiveness Score
Market Penetration Seeking increased market share for present products in present market through
greater marketing efforts
Market Development Introducing present products or services into new geographic area
Product Development Seeking increased sales by improving products or developing new ones
Key Strategy for Philbev