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    SUCCESS OF MANG INASAL: EXPLORATORY CASE

    A ThesisPresented to the Faculty of Graduate School

    DELA SALLE ARANETA UNIVERSITYVictoneta Avenue, Malabon City

    In Partial Fulfillmentof the Requirements for the DegreeMaster in Business Administration

    By

    Ming Yang

    October 2014

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    CHAPTER 1THE PROBLEM AND REVIEW OF RELATED LITERATURE

    Success in the fast food industry requiresmastery of different parameters in order toinvite customers continuously. Customerswho go to a fast food business are lookingfor speed, convenience and predictability

    rather than a memorable diningexperience.

    Furthermore, the level of service, productquality, pricing scheme, business location,and promotion are some marketing

    strategies that would help the restaurant

    grow.

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    History of Mang Inasal

    Mang Inasal barbecue fastfood chain in thePhilippines was established on December 12,

    2003 in Ilo-Ilo City by no less than its founder,

    Edgar Injap Sia II. From a Hiligaynon word forMr. Barbecue, Mang Inasal was established as a

    unique entry to the saturated grill restaurant

    industry. Its Chicken Inasal as the flagship

    product is a distinctively Pinoy chicken inasal

    stamp-grilling with charcoal.

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    For a start-up franchise fee of aboutP800,000, you can have your own Mang

    Inasal franchise. (Total investment isabout P3 million to P4 million). After hisfirst franchise offer in 2005, there are nowover 300 branches/franchisees.

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    Jollibee Foods Corp. (JFC), the countryslargest fast food chain, has taken over

    control of Mang Inasal, a highly successfulVisayas-based restaurant chain specializingin grilled chicken, in a deal worth P3 billion.

    In its disclosure to the Philippine StockExchange on Oct. 18, JFC said it hassubmitted an unsolicited offer to acquire 70percent of Mang Inasal Philippines Inc.

    (MIPI), which was unconditionally andirrevocably accepted by its parentcompany, Injap Investments Inc.

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    Human resources are the most important

    resources in an organization, at the same

    time one of the factors in the success of the

    company from which depends its success

    or failure.

    Photo Source: www.sleekthecity.com

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    To work with people effectively,

    it needs to understand human

    behavior, and manage about

    the various systems and

    practices available to help

    build a skilled and motivated

    workforce.

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    STATEMENT OF THE PROBLEM

    This study aims to determine to explore the success of Mang Inasalcompany.Specifically, this study seeks to answer the following questions:1. What is the profile of the company2. How does the company perform the following functions towards

    business success?

    2.1 Human Resource2.2 Marketing2.3 Operation

    3. How does the company achieve its success with regard to thefollowing strategies?

    Corporate Capabilities

    Core Competencies Creating Customer Value Opportunity-Driven Business Continuous Innovation

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    STRATEGIES

    1. CorporateCapabilities

    2. Core Competences

    3. Creating CustomerValue

    4. Opportunity-driven

    Business

    5. ContinuousInnovation

    SUCCESS

    OF

    MANG INASAL

    FEEDBACK

    HR

    OPERATIONS

    MARKETING

    BUSINESS FLOW OF MANG INASAL

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    Marketing

    Marketing studies consumer trends by surveying

    and researching consumer demands,

    purchasing methods, product sales, and the

    existence and development of technology

    across the relevant market.

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    SIGNIFICANCE OF THE STUDY

    The significance of the results of the study aims to

    evaluate the effectiveness of policies and practices

    of human resources department of Mang Inasal

    company as how it links its programs to

    organizational needs and the ways it contributes in

    development of employees career.

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    ManagementThis study will be useful to top management

    and HRM managers and practitioners to designtheir HRM practices within a strategic condition

    at the organizational level in order to improve

    firm performance that they may able to knowthe feedbacks and

    suggestions from the

    respondents on the study

    and able to review andimprove methods and

    process of evaluating the

    current effectiveness of

    HR policies and practices.

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    Employees

    To help identify the importance of their

    roles in an organization and to promote

    communications between employees

    and management through proper

    communications of the expectations of

    the policies, programs, procedures and

    practices to the company.

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    Researcher

    To examine the effectiveness of thepolicies and practices of humanresource department of Mang Inasal

    company and the result of the studywould further help in strengthening theeffectiveness of its HR managementdepartment in achieving its vision andmission

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    SCOPE AND DELIMITATION

    OF THE STUDY

    The main thrust of this research will cover

    the implementation of the policies and

    practices in the strengthening of human

    resources department of Mang Inasal

    Company in National Capital Region.

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    Founding Philosophy

    To provide efficient services to customers, Mang Inasal in Bacolod hassuper friendly, accommodating and hardworking staff who will attend totheir needs.

    In addition, the ambience in this Bacolod restaurant is very refreshing,rejuvenating, and cozy. This dining place also features a clean and wellventilated dining area for the comfort and convenience of everyone.

    Moreover, tourists in the city will not have problems situating therestaurant because it is located in one of the most popular areas inBacolod.

    Slogan

    Mang Inasal is a truly Filipino-style fast food chain. Our concept,

    ambiance and even the way our food is served on banana leaves is

    authentically Filipino.

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    Respondents of the Study

    The study was conducted to explore the

    success of Mang Inasal business whose

    information will be taken from selected

    personnel who served in the company formore than three years. To get the data, the

    information will be taken from the 12 personnel

    who hold important functions in the three

    major departments namely; human resource,marketing and operation.

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    Research Design

    The study employs the qualitative research

    strategy for data gathering using the

    descriptive method of investigation through

    in-depth interviews and structured

    questionnaires.

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    Research Questions

    The questionnaires were prepared by the researcher toguide during the interviews so that the relevant information would

    be gathered to explore the success of Mang Inasal.The questionnaires were distributed to the respondents whoseresponse would be taken as the primary data of the study.

    Strategies Employed to Ensure Quality Data

    According to Henning (2005) argue with regard to validity inqualitative research that the concord of methodology andmethods will assist in creating coherence, but with that alsocomes a cohesive theoretical structure and substantialtheoretical knowledge.

    Lewis and Ritchie (2003) will be applied, to wit; the interviewerwill be facilitated by an interview as the instrument, capturing ofphenomena, identification or labeling and the interpretationand the display of the findings.

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    Triangulation

    Creswell (2003) - The concept of triangulation was

    based on the assumption that any bias inherent inparticular data sources, investigator, and methodwould be naturalized when used in conjunction withthe other data sources, investigators, and methods

    Bogdan & Biklen (2007) In depth interviewing,member-check or focus group discussion, anddocuments validation are the most frequently usedresearch strategies in qualitative research.

    Kothari(2008) stated that bias might occur in the

    research design or at data collection; analysis andinterpretation and therefore, researcher must carryout consistent set of actions to put down thebiasness.

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    Interviewing

    Gall, Gall & Borg (2010)

    According to them the collection of datathrough direct interaction between theresearcher and the individuals being

    studied

    Bogdan & Biklen (2007)The interviewer collects descriptive data inthe participants own words which provides

    a rich context for the problem being

    studied.

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    Member-check / Participant-check

    The member check has been heralded as animportant component of validation in qualitative research.

    Traditionally, the member check has been used inorder to assess the accuracy with which a researcher hasrepresented a participantssubjectivity.

    Gall (2009)- The member check process ensures that the

    data collected accurately describes the participantsviews, behaviors, and experiences This strategy forassessing the validity of the data involves ensuring thatthe participantsexperiences are correctly conveyed.

    DePoy & Gitlin (1998) - The researcher provides the

    participant with a transcript of the interview allows forthe participant to review and confirm the information isaccurate. The member-check process ensures that theresearcher has correctly captured the data and anyfactual errors can be amended.

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    Document Analysis

    Corbin & Strauss, 2008 - Like other

    analytical methods in qualitativeresearch, document analysis requiresthat data be examined and

    interpreted in order to elicit meaning,gain understanding, and developempirical knowledge.

    Research Method

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    Research Method

    Research methods can be defined as the tools, instruments, techniques,procedures or approaches adopted by the researcher to collect data forinterpretation, explanation and prediction.

    Semi-Structured InterviewThe interview is probably the most widely employed method in qualitativeresearch. It has different forms, including a focus group interview, astructured and semi-structured interview, and an unstructured interview.

    Semi-Structured Interview Analysis

    The interview data that were gathered from the employees of Mang Inasalwas transcribed before being identified and transformed into categories.

    Data Collection

    The study would aim to assess and identify the factors that determines the

    success of Mang Inasal, the researcher would need to have a selectednumber of personnel to be included in the study. However, interview is therelevant method but it might turn time consuming for the researcher if thesample size is large.

    Since the study is based on longitudinal time frame, it rules out theobservation and scheduling technique that aim to assess the changes in theresearch variables. Thus, questionnaire as it is feasible with gathering the

    large amount of response from the participants, is chosen for the study.

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    Data Analysis

    Qualitative studies often use an analytic frameworka network of linked concepts and classificationstounderstand an underlying process; that is, a sequenceof events or constructs and how they relate.

    In qualitative researchers develop concepts, insights,and understanding from the patterns in the datarather than collecting data to assess a preconceivedmodel, hypotheses, or theories

    The most common sources of qualitative data includeinterviews, observations, and documents.

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    Validity of Results

    The validity is one of the critical factors in the overall

    research process in order to have access to the validdata and information.

    The present study is based on the exploration of

    the success of Mang Inasal. It aims to gather the datafrom the real environment.

    This study ensured that all interviews were

    transcribed in order to provide participants withopportunity to check for accuracy, and theirfeedback was requested so that the degree ofconsistency was maintained.

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    Recording of Data

    Henning (2005) The interviews were transcribed in verbatim afterpermission was obtained from the participants. Then, the researcher

    analyzed the resulting text. He also took notes during the interviews andreflected on them during the data processing. and data analysis phases.

    Researcher Biases

    Qualitative research is a type of scientific investigation that aims to

    provide answers to a question without bias. It uses predeterminedprocedures such as interviewing participants to collect information andproduce findings. Biases occur naturally in the design of your research,but you can minimize their impact by recognizing and dealing with them.

    Researcher Credibility

    Qualitative research in business, management, marketing, health,education and the social sciences explores organizations, issues andphenomena by collecting and analyzing extensive unstructuredinformation gathered through interviews, participant observation,document analysis and other methods.

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    ETHICAL CONSIDERATIONSEthical considerations are critical aspects of all research.

    Procedures

    The study is intended to explore the success of MangInasal Company. To achieve the good research, theresearcher used the 12 personnel who have exactknowledge when the company started up to its success.

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    Company Profile : Mang Inasal Mr. Edgar Sia II who was just 26 years old, opened "Mang Inasal " in

    2003 at the Fuentes Street, Iloilo City.

    Company Growth

    For Mang Inasal's phenomenal growthabout 100 new stores a year.Since 2003, our company grew daily. In 2008, we discovered that thecustomers accepted our products. In 2010, Mang Inasal registered 2.6billion pesos revenue.

    Revenue

    That Jollibee will be payingP 3 billion in Mang Inasal has made Siaavery successful businessman. The buying price of Jollibee, whichcourted Sia for the transaction, values the entire Mang Inasalbusiness at P4.3 billion. Not a bad deal for a business that has an

    estimated annual total revenues of P2.6 billion and system widesales of P3.8 billion.

    Since Sias holding company, Injap Investments, will continue tohold on to 30% of Mang Inasal, the Jollibee deal actually valuedSias remaining stake at a staggering P1.3 billion. By the way, Sia

    already received a P200 million down payment.

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    Marketing Strategies Used

    1) Operating on the principle of division of labor, to wit;corporate headquarters, unified management, unifiedpurchase, unified accounting and firm, unifiedinventory, uniform pricing, uniform service standards.

    2) 3S principle of management, namely; Specialization,Standardization, Simplification.

    3) Focus on the distribution logistics like the Commoditydistribution center by the transit center (TC) system,Commodity Development Center (DC) systems, andprocessing and distribution (PC) system structure.

    4) There is observance of information on the network.Chain system can save a lot of advertising costs anddistribution costs, and create economies of scale solarge-scale and rapid development.

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    HR Department

    The head office department engaged in

    recruitment, and deployment of personnel to theirrespective areas especially managerial positions.

    In each store, we will arrange technical staff who

    will take care of the training of the personnel andoccasionally the Supervising Commissioner will comefor evaluating the personnel capability.

    hi i f id if i h h i

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    This is one way of identifying the company that isdifferent to the others. There are responsibilities that thetraining office will do for the personnel are as follows:

    1. The company's development strategy closelydevelops the training programs for the currentyear;

    2. Responsible for the company to carry out thevarious training and management of internalaffairs. The company will complete the trainingtasks assigned;

    3. Responsible for organizing the work of the entiretraining, education and communication betweenthe school and ensure the successful completion ofthe training;

    4. The establishment and improvement of trainingsystems and systems company, set up trainingdatabase;

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    5. The internal team responsible lecturer (regionalManager, etc.) of the building, training,evaluation;

    6. Management training team, monitoring the progress ofthe implementation of the training, the timelyprocessing of related issues;

    7. Student organizations to collect views and promoteimproved training and adjustment work;

    8. Training and curriculum development and preparation

    of teaching materials;9. The training will be based on the actual needs of the

    design and implementation of other training courses forthe customers.

    10. Since that the stores, we cannot carry out training for

    every employee, then let each chain is assigned twostaff training, after training, by their conduct training forother employees. This point may be that we and othercompanies are not the same.

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    Marketing Department

    This strategy was successful through theteam up of the Marketing department andthe Research & Development Office.

    They engaged on the on-site research

    experimental studies, combined with thelocal situation, to ensure that our stores willhave a good business.

    This marketing development creates agood customer relation and later discoversthe Filipino products that hits the tastes of thecustomers.

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    We recognized cause and effect ofemployees inside Mang Inasal through

    the following topics:

    Corporate Capabilities

    Core Competencies Creating Customer Value

    Opportunity Driven Business

    Continuous Innovation

    SUMMARY CONCLUSIONS AND RECOMMENDATIONS

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    SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

    SUMMARY OF THE FINDINGSMang Inasal started in 2003 selling grilled chicken

    wrapped in banana leaves and rice. The typical Filipino flavor,

    and a plain paper lanterns decorated small restaurants withwooden tables, a hand - made and painted orange, green, andyellow walls that expresses its Philippine tradition. First, operating on the principle of division of labor, to wit;

    corporate headquarters, unified management, unifiedpurchase, unified accounting and firm, unified inventory,

    uniform pricing, uniform service standards. Second,3S principle of management, namely; specialization,

    standardization, simplification. Third, focus on the distribution logistics like the Commodity

    distribution center by the transit center (TC) system,Commodity Development Center (DC) systems, andprocessing and distribution (PC) system structure.

    Fourth, there is observance of information on the network.Chain system can save a lot of advertising costs anddistribution costs, and create economies of scale so large-scale and rapid development. Since we do the food business,our strategy varies on some special changes like on rawmaterials, transportation, processing, and strict specifications

    of the product and its tastes.

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    Strategies employed by the Mang Inasal

    The success of Mang Inasal lies on the competent performance ofthe three departments human resource, marketing, and operation

    as the strategies.

    Mang Inasal performed its operation very well. The strategies were asfollows:

    1. It focused on the qualifications of the personnel who were expert

    on their respective duties hence, they could be effective andefficient to their jobs.2. It listened on the needs of the employer so that they could respond

    effectively and efficiently of the customers needs.3. It responds the customer needs not only satisfaction but delightful

    products and services with Filipino taste and style, freebies,unlimited rice and soup.

    4. It grabbed opportunity at the earliest possible time. Takingadvantages of a situation is the Mang Inasalsanother strategyusing the uniqueness of its gawang pinoy product and service.

    5. It enhanced the product and services through innovations such asattractive promotions, & enticing scheme like unlimited rice andsoup.

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    CONCLUSIONSMang Inasal had introduced the marketing strategy

    on the standardization of the products and services, and

    streamlined the other policies to produce an efficient andeffective output. The collaboration of the two departmentsnamely; the marketing and the research and developmentoffice ensures the stores to have good business operation.This strategy created a good customer relation and invitedcustomers to dine in and experience the Filipino taste of the

    products and style of service. In addition, the Filipinotradition introduced in the restaurants like the provincialambience expresses the Filipino atmosphere.

    This showed how Filipino customers preserved Filipino

    culture in food and service preference that rose revenue toMang Inasal. It further added, the enhancing onpromotional scheme like offering unlimited rice and soupcomplimented the home-liked tradition. This evidenced thatMang Inasal hit the diners desire on food and at the sameexperience the Filipino tradition.

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    RECOMMENDATIONS

    Based on the conclusions given, therecommendations are forwarded:1. The company should build and/or rent

    business place that is spacious to

    accommodate an increasing number ofcustomer.2. Increase the benefit of the personnel that

    would motivate them to work hard for thecompany.

    3. Expands the space for parking in favor of theincreasing number of customers in thelocation outside the malls.

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