Revamping MakroEvangelista, Marianne

Lim, EricOng, Valerie

Rocafor, ShirleyThe, Germaine

Problem Trigger

“You have been appointed Vice President for Corporate Planning

by Makro”.

KIND Template

Insert KIND Template HERE

KIND TemplateInsert Portion of Kind Template we are emphasizing on Here (like what we did in the previous paper)

Concept Map

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

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Detailed Action Plan

Detailed Action Plan

Evaluation and Control

End of PresentationThank you very much!