revamping makro
DESCRIPTION
Revamping Makro. Evangelista, Marianne Lim, Eric Ong , Valerie Rocafor , Shirley Teh, Germaine. “You have been appointed Vice President for Corporate Planning by Makro ”. Problem Trigger. KIND Template. KIND Template. Is a. has. Makro. Warehouse type Wholesale Store. - PowerPoint PPT PresentationTRANSCRIPT
Revamping MakroEvangelista, Marianne
Lim, EricOng, Valerie
Rocafor, ShirleyTeh, Germaine
Problem Trigger
“You have been appointed Vice President for Corporate Planning
by Makro”.
K I N DYou maybe Hans Sy appointed you Who appointed you? Why "you"? Is "you"
a leader?
maybe you were appointed by Makro Board of Directors
Why "you"? Are you a new or pirated employee? How long have you been in the corporation? Who was your previous employer? Were you promoted?
Have been maybe the appointment was made last year
When was the appointment done? Internet research on possible changes in Makro Structure
maybe the appointment was made in the middle of acquisition
For what reason was "you" appointed? Internet research on possible changes in Makro Structure
Maybe Makro was acquired by a corporation
When was the acquisition and by whom? Why was Makro acquired?
Research through internet news articles and interviews
Appointed maybe you were appointed by SM Management
Why were you appointed? And by whom?
Internet research
Maybe you were appointed by Makro management
Why were you appointed? And by whom?
Newspaper articles/archives
Vice President maybe as VP, you have certain duties and responsibilities to both Makro and SM
To whom does the VP report to? What are the duties or responsibilities of VP CP?
Internet research on identity of VP CP
maybe as VP, you are now under SM To whom does the VP report to? Internet research on the ownership of Makro
Corporate Planning maybe you're appointed to do long term Strategic plans
What are the future plans of Makro? Research through internet news articles and interview
maybe to plan and direct business and organizational operations
What does the department contribute to Makro? What happened to Makro?
Research on Corporate Planning job description; research on internet articles
maybe the Corporate Planner sets goals and realize goals
What is corporate planning? What does a corporate planner do?
Research on Corporate Planning job description; research on internet articles
Maybe the Corporate Planner sets the growth plans of the company
What is corporate planning? What does a corporate planner do?
Research on Corporate Planning job description; research on internet articles
KIND Template
Vice President
maybe as VP, you have certain duties and responsibilities to both Makro and SM
To whom does the VP report to? What are the duties or responsibilities of VP CP?
Internet research on identity of VP CP
maybe as VP, you are now under SM To whom does the VP report to? Internet research on the ownership
of Makro
Corporate Planning
maybe you're appointed to do long term Strategic plans
What are the future plans of Makro?
Research through internet news articles and interview
maybe to plan and direct business and organizational operations
What does the department contribute to Makro? What happened to Makro?
Research on Corporate Planning job description; research on internet articles
K I N DMakro maybe Makro is losing money What is the financial standing of Makro?
Are they profitting or losing?Makro financial statements
maybe Makro is like S&R but cheaper What exactly is Makro? Internet research on company profile from website
maybe Makro is membership grocery shopping type of company
What is Makro specifically? What does it offer to its customers?
Internet research on annual report and internet research on company profile from website
maybe Makro has been existing in the Philippines for more than 10 years
How long has Makro been in existing? Internet research on company profile from website
maybe it is into retail and wholesale What industry does Makro belong to? Who are the main competitors of Makro?
Research on it articles of incorporation, research on the internet and Makro's website, and interviews
maybe it is a local company Is Makro a local, international, multinational company? What size is Makro?
Newspaper articles/archives
maybe it is a private corporation What is the vision/mission/goals of Makro? Where is its principal place of business?
Articles of incorporation and By-laws
maybe it has been acquired by SM What is Makro Planning to do? What are their future plans? Did SM acquire Makro? Why?
Personal Interview with Makro employees and research on the internet
maybe it is in liquidation Why did it liquidate? Did they encounter any problems?
Research through internet news articles
maybe it has been in a process of selling-out
Why is it selling-out? Did they encoutner any problems?
Research through internet news articles
Makro is an international Dutch chain of stores
Who owns Makro? Research through internet news articles and websites
maybe majority shares were sold to SM
Who are the stockholders of Makro? Research through internet news articles
KIND Template
Makro maybe Makro is losing money
What is the financial standing of Makro? Are they profitting or losing? Makro financial statements
maybe Makro is like S&R but cheaper What exactly is Makro? Internet research on company
profile from website
maybe Makro is membership grocery shopping type of company
What is Makro specifically? What does it offer to its customers?
Internet research on annual report and internet research on company profile from website
Concept Map
12 Outlets
Class A, B, & C Growth in
Outputs
Continuous Increase in
Market share
VP- Corporate
Planner
Continuous
Increase in Market profits
whose market is
wh
ose
gen
eral
tas
k is
to
mai
nta
in
MakroWarehouse type Wholesale Store
Major customers are
hotels, restaurants, caterers and
sari-sari stores
fully by SM group of
Companies
Is a has
appointed a
acquired
and its
by
through andof
Background on MakroSelf-service wholesale
that sells to intermediaries and large commercial users on a membership basis.
Food and non-food products
Background on the Problem
Then •Previously owned by SHV Holdings N.V.,at 60 percent, SM Prime Investments of the Sy Group at 20 percent, and Ayala Corporation at 20 percent.
2004 •Ayala decided to go another direction as they sold their existing shares to the joint venture
2006 •Makro plans to add smaller branches all over the Philippines•Makro planned on a reformatting of their existing stores that would give consumers a quick and easier time in shopping while having special packs and promos to increase sales.
2007 •In October 2007 (SM 2008 Annual Report, 2009), SM increased its ownership to 60 percent and consolidated with Makro.
Now •The SM group now holds 100 percent of Makro, having already converted 3 Makro outlets to SM Hypermarkets.
Main Customers of Makro
•Hotels•Restaurants•Catering Businesses
Food Products and Supplementary goods
•Traders Small retail outlets, neighborhood stores, kiosks, private entrepreneurs (resale of goods)
•Other Business Users
offices, service companies, government agencies, other organizations (professional use of office equipment, detergents, etc)
Revamping Makro:Strategic Management Process
Vision and Mission
Vision
• To be the leading cash and carry distributor of Food and Non-Food products
Mission
• The distribution of products with excellence in price, quality, and variety to professional customers, offering them advantages and opportunities to growth.
• The employment of good and knowledgeable staff who will be trained to realize the full potential of the Makro concept.
Objectives and Task of the Corporate Planner
Competitors
SNR
MakroCash and Carry
SM Hypermarkets
Strategic Map/Group
Strategic Objectives from SWOT Analysis
SOTo overcome
economic downturn and the limited
market by using core-business model of low
cost, low margin, adjusting structure for
innovation for local Philippine market.
WOAdjust
amenities and services fitting
for the local Philippine
market
STTo overcome
competitors, and similarly structured
companies with better adaptation towards the local Philippine market
WTAvoid attack by competitors and
similarly structured organizations with differentiation and
deeper understanding of the
local Philippine market.
General/Main StrategiesStrategy Formulation
1Research into the market and the channels it services and create a Makro Tracking Program
2Redefine focus of target segment
3Update the Corporate Identity
Corporate Level Strategies
Stability Strategy• Pause and Then Proceed
strategy may also be used considering that Makro did go through a turbulent experience with SM acquiring it.
• Makro may take the time to pause, do in depth market research first.
Growth Strategy• Horizontal Growth - “expanding the
company’s existing products into other locations and/or market segments.”
• introduce the selling of both bulk and non-bulk goods
• New Target Segment: sari-sari store market and the direct customers or the end-product users.
Competitive (Business Level) Strategies
Cost leadership
Differentiation• Using the Makro
Website as a new channel for buying products online
Tactics• Encirclement
• Greater product variety by offering non-bulk items
• Guerrilla Warfare• Aggressive
marketing/promotions
Functional Strategies
Marketingspearheading
the market research
Value-chain analysis
FinanceMinimize costs
and risks, feasibility and profitability of new programs
OperationsSupport by delivery,
packaging (products into
bulk), customer services
Human Resources
Training staff (delivery, online-
buying manager, customer service) to
handle any new technologies and overall
improvement
MISClose monitoring and management
is essential for the corporate
planner in order to keep tabs on the execution of
the strategic plan;
Development of Online-Buying
Function
Detailed Action Plan
Stability: Pause-Then-
ProceedTime
Frame1 to 2 months during Stabilization period
1 month
2 months
Measure
2 dealers from each category
Evaluation from all department
heads2 dealers from each category
ResponsibilityMarketing (Mr. Lim) and
Operations/Productions (Ms. Ong)
Marketing (Mr. Lim) and
Operations/ Productions (Ms.
Ong)
Maketing (Mr. Lim) and MIS (Ms.
Evangelista)
Action ItemAssess the
buying behavior of current hotel, restaurant and
caterers
Identify areas of improvement and
sucess for each part of the value chain
Assess the interface of Makro (products and services) with
its customers
Step No.
1
2
3
Detailed Action Plan
Growth Strategy: Horizontal
GrowthTime
Frame1 to 2 months
during Stabilization
period3 months3 months3 months
Measure
200 Sari-sari stores and 200 end-
product customersProgram pilot
testingProgram pilot testing10 Makro stores
ResponsibilityMarketing (Mr.
Lim)
MIS (Ms. Evangelista),
Marketing (Mr. Lim) and
Operations/ Productions (Ms.
Ong)
Operations/ Productions (Ms. Ong) and Human Resources (Ms.
Rocafor)
Operations/ Productions (Ms.
Ong) and Markeitng (Mr.
Lim)
Action ItemDo Market research
on buying behavior of new target
segment: sari-sari stores and end-
product consumers
Develop online-buying/ordering
function for existing market in the Makro
Website
Training and support of
Operations/ Productions staff
Introduce non-bulk products in the market to cater to new
target segment
Step No.
1
234
Detailed Action Plan
Competitive (Business Level)
Strategy and Tactics
Time Frame1 to 2 months
2 months
3 months
Measure
20 dealers
1000 site visits
10 Makro stores
ResponsibilityFinance (Ms. Teh)
and Marketing (Mr. Lim)
Marketing (Mr. Lim)Marketing (Mr. Lim) and Operations/ Production (Ms.
Ong)
Action Item
Assess the feasibility and incorporate into promotions
Promote of the new online-buying/ordering function in the Makro Website
Diversification into non-bulk product offering to cater to different markets - promotion
Step No.
1
2
3
Tactics
Strategy 1: Market Expansion by Abolishing Membership Requirement
• Makro stores are not open to the general public. They are currently marketing to traders, caterers, and complementary business users.
• The main competitors of Makro: SNR/Pricesmart, Cash and Carry, and SM Hypermarkets all have one thing common that Makro is that although all three are basically of the same product range, these companies do not require membership cards for customers to be able to shop.
Strategy 2: Increase Promotions: Sales Promotion and more Publicity/Public Relations
• Makro may be offering low prices just as much as Cash and Carry and SM Hypermarkets. However, it is not at all doing enough promotions targeted to the general public. Their existing marketing strategies, are of course, dependent on the media habits and lifestyle of their current market.
• SM Hypermarkets are more aggressive in their PR efforts such as events. Seen in their websites under the "Featured Events" side bar are only some of the events that enable SM Hypermarkets to gain more publicity from the market.
Evaluation and Control
End of PresentationThank you very much!