Puregold Price Club, Inc.: Corporate strategy plan

Date of Publication

2001

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

This plan was designed to enable Puregold Price Club, Inc. (PPCI) to achieve an ROI averaging at least 75% within a period of five years. To realize this, PPCI's net sales should average at least PhP4 billion within a period of five years while steadily reducing the operating costs. To achieve these, an increase in the market base and marked efficiency should ne noted.

Along this perspective, PPCI will be positioned as a chain supermarket with nationwide scope and be known for its unique services. Individual consumers are one of the company's target markets. A following of individual consumers who opt for convenience shopping is a necessary plus in achieving this target. On the other hand, there is another group of buyers who can contribute much to this target: the local retailers or the owners of mini-marts, grocery stores and sari-sari stores who would like to think of themselves as PPCI's business associates. They would like to identify themselves with someone who made it big!

The personal values of the decision-maker are also given a big consideration in achieving corporate objectives in this paper. Issues surrounding a family corporation are also addressed.

External factors affecting the development of the whole retail industry are subjected to scrutiny. Among the are (1) the entry of foreign competitors after the passage of the Retail Trade Liberalization Law, (2) an industry shakeout due to intense rivalry among local competition, (3) the growing concern of the food services sector brought about by the change in the lifestyle of urban dwellers and (4) the inevitable rise in prices which may affect the customers purchasing capacity.

However, despite these concerns, the industry is not on a standstill. Opportunities await the industry players to lay stress on. To enumerate a few: the possibility of increase economies of scale through the emergence of new technologies that will cut operating expenses, to introduce methods in offering new products and services like the e-commerce and the e-business technology and the expected increase in demand for better services brought about by the improvement in lifestyle of buyers.

The company's strengths and weaknesses are also identified. The plus factors are its support of an affiliate property development and management company that will assist PPCI in expanding its number of store, and the presence of IT personnel capable of developing a practical and expedient management information system for differentiation strategy. The minuses are: its financial incapability to expand to expand operation the limited number of stores imperative to increase sales and create economies of scale, the loose management structure that humpers the reliable flow of communication among functional activities, the absence of an integrated information system that will lead to better management decisions and day-to-day operation and the lack of customer feedback mechanism that will serve as the basis in improving the company's services.

Preferred strategies were enumerated according to the identified situations. The presence of PCCI owners' other companies will be taken into full advantage as support to services with only a minor assignment of laying down proper policies and procedures. Infuse additional capital through AGRC, a publicly listed company, in order to finance PPCI's extension program. After which will be the plan to increase the number of stores to be able to increase sales, meet targets and capture a large market. Improving the information system within the company to ensure fast and reliable basis for decision-making can do this. Adding services provided to buyers, putting more emphasis on higher production and efficiency as compared to rivals. Likewise, the rise in the use of the internet will be taken into consideration. The e-commerce now supported by law will be used in full swing. Aside from this, a variety of value added services will be devised to warrant the satisfaction of end users and other clients being served.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE1057

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

107 leaves ; ill. ; 28 cm.

Keywords

Supermarkets--Philippines; Puregold Price Club; Inc.

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