Republic of the Philippines

EULOGIO “AMANG” RODRIGUEZ

INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration

STRATEGIC PAPER

ENTREPRENEURSHIP II-C

AÑONUEVO, PATRICIA MARIE G.

AÑASCO, ELAINE KATE P.

ALVAREZ, SUZZIE ROSE P.

CADETE, ARRIANITA JESSICA

CANCINO, PAMELA V.

DACIMOS, MARIFE T.

July 2022
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 2

TABLE OF CONTENTS
Executive Summary............................................. 4
CHAPTER I Introduction........................................ 5
Background.......................................... 5
History of the Firm................................. 6
Vision and Mission.................................. 7
Core Values......................................... 8
Organizational structure............................ 9
Company Policies................................... 10
Current Corporate Strategy.............................. 12
Marketing Strategy................................. 12
Human Resources Strategy........................... 14
Production Strategy................................ 16
Financial Strategy................................. 18

CHAPTER II Industry and Firms Environment.................... 21

External Environment.................................... 21
Economic........................................... 21
Political and Legal................................ 21
Technological...................................... 22
Socio-Cultural..................................... 23
Task environment................................... 26
Competitors........................................ 27
Internal Environment.................................... 29
Human Resources.................................... 29
Production and Operations.......................... 32
Marketing Mix...................................... 41
Financial Statements .............................. 46
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 3

CHAPTER III Situational Analysis............................. 51

SWOT Analysis.......................................... 51
TOWS Matrix Table.................................. 52

CHAPTER IV Alternative Courses of Action..................... 53

Alternative Course of Action #1.................... 53

Alternative Course of Action #2.................... 53

Alternative Course of Action #3.................... 54

CHAPTER V Recommendations.................................... 55

CHAPTER VI Plan of Action.................................... 68

Plan of Action (CANVA Poster)...................... 70

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 4

EXECUTIVE SUMMARY

Puregold is the second leading hypermarket in the

Philippines. The company is in a very competitive position. This

paper reflects that the company’s portfolio is above average and

near to outstanding. The top competitors of the company are also

studied in this paper to further envision the strategies and

objectives to be drafted for the constant growth of the company.

The company’s vision and mission is very commendable and a

proposal for change is herein established to hopefully help in

developing the company

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 5

CHAPTER I Introduction
Background and History

Puregold Price Club, Inc. (“Puregold” or “the Company”) was

incorporated on September 8, 1998 and opened its first Puregold

hypermarket store in Mandaluyong City in December of the same

year. In 2001, it began its expansion by building 2 additional

hypermarket stores in Manila and Paranaque. It also launched its

loyalty program, which was eventually renamed as “Tindahan ni

Aling Puring” in 2004. Between 2002 to 2006, Puregold continued

its expansion at an average of 3 new stores every year and

established operations in North and South Luzon. In 2008, Puregold

was recognized by Reader’s Digest Asia’s as the Most Trusted Brand

in supermarket category.

To expedite market coverage, a new format called “Puregold Jr.

Supermarket” was introduced in the 4th quarter of 2008. By mid-

2009, the Company gained market leadership being the second

largest hypermarket and supermarket retailer in the Philippines

in terms of net sales. By 2010, it was already operating 62

stores, and launched another format called, “Puregold Extra”. In

the same year and henceforth, Puregold was recognized by Retail

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 6

Asia Pacific as one of the top 500 retailers among the 14

economies of the region. 2011 saw the highest number of store

openings in Puregold history with the launch of 38 new stores

making its number of stores to a total of 100. In the succeeding

year, Puregold acquired a related retail company, Kareila

Management Corporation, with 6 S&R Membership Shopping Warehouses

(patterned after the Costco and Sam’s Club in the USA), opened

31 new 4 Puregold organic stores and acquired Gant Group of

Companies known as “Parco supermarkets” with 19 stores. In 2013,

Puregold acquired another supermarket chain, Company E

Corporation, with 15 stores and opened 40 new stores. S&R opened

2 warehouses located in Davao Province and Mandaluyong City.

Company E and Gant Group of Companies later merged with Puregold.

In 2014, Puregold opened 28 stores, 1 S&R store and 4 S&R New

York Style Pizza/quick service restaurants (QSR). It also

partnered with Lawson, Inc. and Lawson Asia Pacific Pte Ltd. under

a joint venture company called PG Lawson, Inc. PG Lawson plans

to build and operate a chain of Lawson convenient stores all over

the Philippines targeting a total of 500 stores by 2020. The

parties’ investment share is 70% Puregold and 30% Lawson. In 2015,

Puregold opened 15 hypermarkets, 11 supermarkets, 1 S&R Warehouse

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 7

and 10 QSRs. In 2016, Puregold opened another 15 hypermarkets, 8

supermarkets, 2 extras, 1 minimart, 2 S&R Warehouse and 7 QSRs.

By the end of 2016, Puregold was operating a total of 147

hypermarkets, 100 supermarkets, 29 extra, 1 minimart, 12 S&R

warehouse clubs, 23 S&R-QSRs, 9 stores under NE Bodega and 8

Budget lane stores, for a total of 329 stores.

Vision and Mission

Mission

Our Mission is to Provide Products, Services and

Business Opportunities to Every Filipino Family. We Establish

Lasting Relationship with Our Suppliers and Business Partners. We

Strive to Promote the Personal and Professional Development of our

Employees. We Commit Profitable Results to the Stockholders.

Sa bawat araw, PUREGOLD, kasama mo!

Vision

To be the Most “C u s t om e r - O r i e nt e d ” Hyper m a rt

o f f e r i n g a O n e - S t o p S h o p p in g convenience and Best Value to

our Customers. Sa PUREGOLD, Always Panalo

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 8

Our Values

Sense of Belonging

- Feeling that one has an essential role to play as part of the

PUREGOLD family

Customer Service

- Providing products and services that meet the demands and

expectations of customers

Dynamism

- Open, adaptive and responsive to the changing environment

Commitment

- Dedicated and conscientious focus on work

Integrity and Loyalty

– Honor, credibility, honesty, dignity, "palabra de honor",

"walking the talk"

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 9

Organizational Structure
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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 10

Company Policies

Global Human & Workplace Rights

WHISTLE-BLOWING POLICY

Puregold Price Club, Inc. encourages and expects all its

employees to report any deviation or non- compliance with the

Company’s Code of Ethics, Revised Manual on Corporate Governance

and the Company’s rules and regulations. Reports may be submitted

to the Office of the Human Resource Department and/or Compliance

Officer with mailing address at No 900 Romualdez St., Paco, Manila

1007. Reports will be entertained with due diligence and fairness

in proper investigation. Those found guilty will be dealt with

in accordance with law and rules of the Company.

INSIDER TRADING POLICY

Puregold Price Club, Inc. strictly observes and enforces the

rule against insider trading as defined by the Securities and

Regulation Code (SRC). It encourages everyone who has knowledge

of any person who violates the rule to report to the Office of

the Compliance Officer with mailing address, No. 900 Romualdez

St., Paco, Manila, 1007. Those found guilty after investigation

shall be prosecuted pursuant to law.

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 11

CONFLICT OF INTEREST POLICY

Directors, Officers and Employees of Puregold Price Club, Inc.

are expected to act and perform their duties in promotion of the

interest of the Company. They should not receive personal gain,

benefit, grant, gift or any advantage by virtue of their position

in the Company. They must immediately disclose to the Board or

to their immediate superior any possible occurrence of conflict

of interest or any offer of cash, gift or any benefit from

customer, supplier or third party contractor of the Company.

Violation shall be dealt with serious disciplinary action and/or

dismissal from work. Etc.

• Related Party Transaction Policy

• Policy and Data Relating to Health, Safety and Welfare of

Employees including company sponsored trainings

• Company Social Responsibility Initiatives

• Company Policies (for Safety and Welfare of Employees)

• Company Sponsored Trainings

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 12

Current Corporate Strategy

Marketing Strategy

PUREGOLD PRICE CLUB, INC. also known as PUREGOLD, its opened

first as a convenience store in the Philippines in 2001. During

that time, the store sold a wide array of goods like groceries,

apparel, household accessories, and furniture at very affordable

prices. The one-stop shopping philosophy was a novel idea to

consumers. With the excellent service and quality products

Puregold provided, it did not take long for the company to rise

up in the industry. Puregold expanded its retail network

organically and through strategic acquisitions. To grow its

market coverage in the country, the company introduced the

following:

- Puregold Jr. Supermarket (2008) – a smaller store (in terms of

size) compared to the usual Puregold Supermarkets.

- Puregold Extra (2010) – a smaller store than the Puregold Jr.

These two new types of supermarkets were placed outside malls in

stand-alone outlets or as anchor tenants of commercial centers.

The company continued to expand its branches nationwide and

welcomed more business opportunities to sustain its robust

growth.
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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 13

- The Puregold Loyalty Program Launched in 2001, customers can

maximize their shopping experience using the Puregold Perks Card

as a member of the program. The program rewards its shoppers with

points every time they shop at any Puregold store in the country.

Shoppers can earn 1 point for every PHP 200 minimum purchase of

any HOME, FRESH, or FASHION items. With the accumulated points,

customers can enjoy the following:

- Shop for items at a discounted price

- A chance to accumulate as many points as possible with every

purchase following the minimum qualified amount to spend

- Avail of promos exclusive to Puregold Perks Card holders.

Through TNAP (Tindahan ni Aling Puring), Puregold also helped a

lot of small businesses and sari-sari stores to grow and earn

more. TNAP is a customized, holistic membership program which

allows sari-sari store owners and other small business owners to

increase their potential net earnings by:

- Accumulating points from purchasing products (the points earned

can be used to purchase more)

- Offering them lower prices and exclusive promos on home,

fashion, fresh, and other grocery products

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 14

- Getting all the products they purchased delivered to them for

FREE -Giving them their own “Prepaid Loading Business” through

Puregold’s Super Suki Sim powered by Globe Telecom for additional

income

- Providing financial assistance or capital through Puregold’s

My Puhunan Plus Program

- Securing their business’ continuity through Puregold’s Pioneer

Insurance program Puregold provides products and services that

meet the demands and expectations of its customers. Not only that,

they do their best to give back and help. Today, the company’s

Puregold Perks membership program continues to grow. TNAP also

continues to provide opportunities and big savings to sari-sari

store owners and other small business owners. Through these

marketing strategies, the company has continuously generated

sales growth through the years.

Human Resources Strategy

Family has always been at the center of Puregold. Lucio and

Susan Co founded the company in 1998. As they built the company

together and infused a sense of community into the workplace,

they welcomed their pioneer employees and treated them like

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 15

members of their own family. Puregold personnel are always on the

front lines, listening to their consumers, and figuring out the

best ways to offer the things they need, when they need it, in

order to be in step with the always changing retail market. The

team is actively involved in every stage of the procedure, given

the right equipment and training, and given the freedom to think

of creative methods to work together and come up with answers.

This high level of confidence in each person's ability encourages

each employee's involvement, loyalty, and sense of ownership.

The business is adamant that investing in its workers is a wise

move that supports the long-term expansion of the Puregold family.

New hires are provided the training necessary to swiftly grasp

the fundamentals of retail during the onboarding phase, during

which they are presented their various career routes. The

corporation runs a number of employee relations initiatives,

including annual teambuilding exercises, service awards, regular

employee interactions, and pep talks, to keep its staff motivated.

According to the company, these events increase employee voice

within the organization, foster camaraderie and teamwork, and

demonstrate the company's appreciation for the effort its team

members have put into Puregold. In a service-oriented business

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 16

that is open twenty-four hours a day, seven days a week, employees

may find it difficult to achieve work-life balance. With its

widespread presence, the company sees a chance to entice staff

members to return to the communities where Puregold is active.

It is also a chance for people who may have started families and

made the decision to move to a location where they can do so. The

COVID-19 epidemic and the year 2020 presented the entire globe

with formidable challenges that put morality and leadership to

the test. Employees of Puregold nevertheless put themselves in

danger to report for work each day despite the challenging times.

This is more of an overwhelming sense of responsibility and

service to the nation than merely a selfish hunger for money.

Production Strategy

The Company located in the Philippines, Puregold Price Club,

Inc. trades commodities on a wholesale and retail basis, including

consumer goods including canned foods, home goods, toiletries,

dry goods, and food items. The company is active in the retailing

industry. The Company runs its business through a hypermarket

called Puregold Price Club, which serves both retail customers

and resellers and provides a variety of food and non-food

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 17

products. The Company has a network of supermarkets called

Puregold Junior, which is run by Puregold Junior Supermarket,

Inc., its subsidiary. Its Puregold Extra is the small store

format, which offers a range of goods, comprising the Company's

stock keeping units (SKUs) ranging from 3,000 to 5,000. It

operates through stores in various locations. Its store provides

products that range from groceries, apparel, household

accessories and furniture. It has approximately 280 operating

stores and over 20 food service stalls. Puregold is the second

leading hypermarket in the Philippines. The company is in a very

competitive position. The company’s portfolio is above average

and near to outstanding. Over the years Puregold has continued

its expansion at an average of 3 new stores every year and

established operations throughout the country and recognized by

Reader’s Digest Asia’s as the Most Trusted Brand in supermarket

category. With the information presented, therefore Puregold

Management will be focused on doing intensive marketing by

focusing on differentiating the store through product selection

and customer service. Limiting product selection per category to

brands and sizes that contribute to store profitability based on

margin and cost incurred in selling the item. Substantially

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 18

bringing down cost of operations by adopting some large format

practices. Selective price reduction. Planning for a more

exciting promotion. Form alliances with other small and medium

players to be able to generate volume leverage and Streamline

operating cost.

Financial Strategy

Management is responsible for the design of PureGold’s internal

controls over financial reporting ("ICFR") as required by

National Instrument 52-109–Certification of Disclosure in

Issuers’ Annual and Interim Filings ("NI 52-109"). ICFR is

intended to provide reasonable assurance regarding the

preparation and presentation of material financial information

for external purposes in accordance with applicable generally

accepted accounting principles. Internal control systems, no

matter how well designed, have inherent limitations. PureGold’s

officers certify the design of PureGold’s ICFR using the Internal

Control – Integrated Framework (2013) issued by The Committee for

Sponsoring Organizations of the Treadway Commission. Based on a

review of its internal control procedures at the end of the period

covered by this MD&A, management has determined that the Company’s

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 19

internal controls over financial reporting have been effective

to provide reasonable assurance regarding the reliability of

financial reporting and the preparation of financial statements

for external purposes in accordance with IFRS. There were no

changes to the internal controls over financial reporting that

occurred during the three months ended March 31, 2022, that have

materially affected, or are reasonably likely to materially

affect, our internal control over financial reporting. However,

even those systems determined to be effective can provide only

reasonable assurance with respect to financial statement

preparation and presentation. Also, projections of any evaluation

of effectiveness in future periods are subject to the risk that

controls may become inadequate because of changes in conditions,

or that the degree of compliance with the policies or procedures

may deteriorate. In January 2022, the Company announced that

proactive measures had been taken in response to a small but

increasing number of positive Covid-19 cases at the Company’s

PureGold Mine. The Company has followed stringent screening,

hygiene, testing, and contact tracing protocols since the outset

of the pandemic and has an exemplary record to date. For a

temporary period, administrative staff were working remotely

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 20

where possible and other on-site staff had been reduced to

essential workers only. The temporary restrictions of working

remotely have subsequently been lifted. The Company continues to

operate its business and proceed with operations of the PureGold

Mine with carefully managed COVID-19 based restrictions designed

to protect communities and employees, including quarantining,

testing, ensuring physical distancing and providing additional

protective equipment. While there have been minimal impacts to

date, should the Company’s personnel be directly impacted by

COVID-19, it may result in delays to reaching cash flow

projections, depending upon the extent of infection to mine staff.

There are numerous examples of mines being shut down for extended

periods because of COVID-19. If this were to occur, the Company

has minimal cash resources to outlast an extended shutdown and

the Company would need to take actions to immediately reduce cash

outflows, including temporary layoffs which would directly affect

production of gold. In addition, the actual and threatened spread

of COVID-19 globally could continue to negatively impact stock

markets, including the trading price of the Company’s Common

Shares, and could adversely impact the Company’s ability to raise

additional capital, if needed. Any of these developments, and

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 21

others, could have a material adverse effect on the Company’s

business and results of operations.

CHAPTER II Industry and Firms Environment

External Environment

ECONOMIC

• Economic factors have a important impact on how a company does

business. Recession or growth can affect the business.

Puregold is under significant pressure from economic changes.

Any changes directly leads in the company’s revenues. Based

on the PESTEL analysis model, the following are the economic

external factors in Puregold macro environment: Strong GDP

growth, continued growth of developing countries, high

productivity, competitive market, economic structure,

population growth rates, global competitiveness.

Political and Legal

Political

• Puregold usually considers policies specially government

policies concerning in retail market. In the PESTEL analysis

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 22

model, politically active groups are also important. The

following are the political external factors in Puregold

macro-environment: High stability of politics, Political

support for globalization, political pressure for higher

wages. The macro-environmental factors show that Puregold must

give attention to the threat of higher wages.

Legal

• The Legal condition factors that includes any law which may

influence the operations of the company. Legal policies could

affect minimum wages. This would mean that it will cost more

for the business. The following are the legal external factors

in the Puregold macro environment: following government

regulations and business regulations, increasing in

development costs.

Technological

• Puregold needs to look for technological trends. New

technological trends can increase market size. Data has opened

up a need for information processing. In the context of the

PESTEL analysis model, technologies affect the retail

industry’s competitive landscape. The following are the

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 23

technological external factors in Puregold macro environment:

Increasing business automation, business analytics or big

data, increasing mobile device usage among consumers, credit

card trends, and credit card frauds and scams.

Socio- Cultural

• The sociocultural factors in the business environment of

Puregold influence consumer perception and preferences.

Social factors will have an impact on your business. The

structure of families could change and this will influence

the way in which you sell your products. In the PESTEL analysis

model, the following are the social or sociocultural external

factors in Puregold macro environment: Healthy lifestyle

trend, cultural diversity trend, stability of social

structures, online marketing and online shopping. Both of

these social/sociocultural factors present opportunities for

Puregold. The company can increase its parcel of healthful

products. Puregold can also increase the variety of its

products to satisfy cultural preferences. Online marketing is

helpful nowadays. Filipino are using internet in average of

4-8 hours a day.

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 24

1. Modern Retailing

By the time technology was introduced to business, there had

been dramatic changes in the way each industry operates. The

retail industry, in particular, has adopted a lot of innovations

when it comes to the products and services they are offering to

the public. In fact Rustan’s Supermarket, the most prestigious

retailer in the Philippines, has defined the very concept of

modern food retailing – from introducing groundbreaking

promotions, such as the buy-1-take-1 offer; to sourcing quality

products from all over the world; to Grocering, the first ever

grocery delivery in the country. Not only was technology used in

food retailing but also when it comes to the marketing strategies

and promotions done by the retailers to entice customers to

patronize their grocery shopping malls.

2. Better Customer Experience

The world of retail has changed a lot in the last decade or so.

While there are, of course, still the basic tenants of retail

that business must follow such as customer service, pricing

management, and order efficiency, there way retail works from a

technical level is anything but the same. As a matter of fact,

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 25

retail has benefited greatly from the technology that exists in

all areas of the company. While Puregold is interested in keeping

its status quo in some areas, it is also aware that it must adapt

to changes within the industry that promote a more efficient

business model. Since the use of Internet has been widely adopted

by various companies in their operations and advertising,

Puregold could grab the opportunity of linking with a networking

company which could make it easier for the company to deliver

controlled guest access to enhance the shopping experience and

proactively engage with customers, and respond to shoppers

communicating through public social media networks like Twitter,

Facebook, or other public forums or blogging sites. Moreover,

Puregold could also offer loyalty cards as they do not only reward

shoppers with discounts and money off advantages but they also

track spending habits and buying trends of their customers. This

means they know who, what, when and how people are buying certain

products and they can tailor their promotional campaigns,

staffing and stock levels accordingly.

3. Security through Technology Developments

Technology also paved way for a safety measure inside and

outside the store premises. Stores and shopping centers are now
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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 26

able to track everything that is going on in the store premises

with the use of surveillance cameras through different areas in

the store. Everything that occurs in the store that is negative

results in a potential or actual loss of business. That is why

technology has not just made video surveillance equipment better,

but it’s making it more cost effective for the store. With

continuous loops and the cheapened price of film and memory, a

lot more footage can be kept so there is little worry of a person

filing charges later on and the company having no proof to dispute

the claim.

Task Environment

Changes affect the business environment. Businesses frequently

looking at how green they are. In the PESTEL analysis model,

environment affects the company and how they response on the total

ban of plastics. The following are the environmental external

factors in Puregold macro environment: Green products and

services, business sustainability, and infrastructures. Puregold

continues to commit itself not only to improving the community

in inspiring its entrepreneurial spirit and ensuring best value

for all its customers but also to be a responsible organization

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INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 27

committed to advocating the proper care and preservation of the

environment.

Competitors

The rivalry among the competitors in this field of business is

very high. Competitors like SM, Metro Retails Stores Group Inc.

and Robinson’s Retail Group are funded by large conglomerates

which are positioned for aggressive expansion. The modern

penetration of retail chain is far from any saturation point at

22% which decreases the impact of competition. Though Puregold

is branded as one of the leading hypermarkets in the Philippines,

it cannot ignore the fact that SM is still the leading hypermarket

in the country and both companies are doing very well in their

fields. They are both competitive and upgrading.

• SM Markets- In a food retail, SM Markets, comprised of SM

Supermarket, Sm Hypermarket and Savemore including Waltermart

Supermarket and Alfamart. SM Markets remains among the top

food retailers with its continues expansion, innovation and

up-to-date assortment.

• •METRO Retail Stores Group Inc (MRSGI)-, a subsidiary of

Vicsal Development Corp, is a retailer of food and non-food

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INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 28

products. The company operates department stores,

supermarkets and hypermarkets under Metro Department Stores,

Metro Supermarkets, Metro Fresh N Easy, and Super Metro

Hypermarkets banners. It offers a wide range of food, grocery,

apparels, cosmetics, accessories, pharmaceutical products,

toys, household goods and home appliances. MRSGI also provides

products such as freshly baked breads, cakes and pastries,

fruits and vegetables, beverages, gourmet dishes, bags, meat,

sea foods, shoes and home improvement products. It operates

stores in Luzon and Visayas in the Philippines. MRSGI is

headquartered in Mandaue City, Cebu, Philippines.

• Robinsons Supermarket - the supermarket of choice for fresh

and healthy food, is a subsidiary of Robinsons Retail Holdings

Inc., the second largest multi-channel retailer in the

Philippines—operating 6 business segments, 28 retail brands

and more than 1,200 stores as of March 2016. Established in

1985, Robinsons Supermarket is the 2nd largest supermarket

chain in the country with 140 stores by end of 2016. The

first major retailer to promote health and wellness, Robinsons

Supermarket commits to bring together healthy selections and

affordable prices in a refreshingly clean and organized

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 29

shopping destination, a bold lifelong commitment to educate

and empower its customers to make healthy choices.

INTERNAL ENVIRONMENT

Human Resources

To be in tune within a constantly shifting retail landscape,

Puregold employees are always on the frontlines, listening to its

customers and finding the best ways to deliver the products they

need, when they need it. The team is deeply involved in each step

of the process, provided the proper tools and training, empowering

employees to come up with innovative ways to collaborate and find

solutions together. It is this high level of trust in the

capabilities of each individual that fosters engagement, loyalty

and ownership in each employee. The company firmly believes that

investing in its employees is a sound strategy that fuels the

long-term growth of the Puregold family. From its onboarding

process, new recruits are shown their potential career paths and

given the training needed to quickly learn the basics of retail.

To keep its employees engaged, the company hosts several employee

relations programs, such as annual teambuilding activities,

service awards, monthly employee interactions, and pep talks. The

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 30

firm believes that these activities give employees a bigger voice

in the organization, strengthens camaraderie and teamwork, and

shows the firm’s appreciation for the hard work that its team

members have poured into Puregold. Achieving work life harmony

can be a challenge to employees in a service-oriented

establishment operating twelve hours a day, seven days a week.

The company sees an opportunity with its national presence to

encourage employees to go back to their hometowns where Puregold

is operating. It is also an opportunity to those who may have

started a family and chose to relocate to a place where can they

start and raise their own families. Year 2020 posed a big

challenge to the world, and the COVID-19 pandemic, a colossal

test of leadership and values. Despite these difficult times,

Puregold employees risk much to still come to work every day.

This is not just a selfish need for income, but more an overriding

sense of duty and service to the country.

Recruitment and Promotion Policy

The Company’s recruitment policy objective is to obtain the

most qualified and the most competent personnel to fill vacant

positions in the organization by attracting a qualified pool of

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 31

applicants and evaluating their aptitude, personality, skills,

and competencies. This policy was instituted in January 2010.

Rank and file employees are hired initially on a six months

probationary period and following successful completion of the

probationary period, they are hired as full-time employees. The

Company’s promotion policy governs the procedure of screening and

promoting employees in the Company. The objectives of the policy

are to maintain employee loyalty to the organization, to keep

good and competent employees, to reward proven ability, skills,

and integrity, to boost employee morale, to encourage employees

to render the best service they are capable of, to increase the

overall efficiency of the organization and to aid in the personal

development interests of the employees, and to reduce labor

turnover.

Personnel Training

The Company instituted the Puregold Academe in 2007 and it is

composed of two programs: the Training Course for Management

Trainees (‘‘TCMT’’) and the Leadership Skills Program 1

(‘‘LSP1’’). TCMT is a training course for newly hired management

trainees to train them to manage a Puregold store and to educate

them on the basics of Puregold store operations. The Company

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 32

initiated refresher TCMT courses from February 23, 2011 to June

14, 2011 to all existing Puregold store officers. LSP1 consists

of eleven training modules with the intent of improving employee

work performance. Each module is designed to improve an employees’

leadership and management skills and is developed by the

employee’s supervisor and tailored to the needs of the employee.

Sub-Contractors

The Company subcontracts the following services: cash register

operations, bagger and janitorial services, security services,

various construction and engineering services. The subcontractors

are Active Cooperation for Economic Sustenance and People Serve

Multipurpose Cooperative. As of August 26, 2011, the Company had

3,748 sub-contracted personnel.

Production and Operations

Process

The Company conducts its operations through the following three

retail formats and store brands, each of which is strategically

located to target distinct price points and demographics: Hype

rmarkets. The Company conducts its operations primarily through

a hypermarket format known as ‘‘Puregold Price Club’’. These

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 33

hypermarkets are mostly located in major commercial centers and

near transportation hubs. Puregold Price Club offers a broad

variety of food and non- food products, and generally caters to

both retail customers and resellers such as members of the

Company’s pioneering TNAP loyalty/marketing program. The net

selling space of the Company’s 61 hypermarket stores ranges from

1,500 sqm to 7,800 sqm, with an average net selling space of

3,368 sqm as of August 26, 2011. Each hypermarket offers 30,000

to 50,000 SKUs. Supermarkets. The Company has a supermarket chain

known as ‘‘Puregold Junior’’, operated by its wholly-owned

subsidiary, Puregold Junior Supermarket, Inc. The Company has an

advanced management information technology system that allows

real-time monitoring of critical business information from

merchandising, inventory and point-of-sale (‘‘POS’’) data to

customers, to financial management systems and business

intelligence. This system allows the Company to improve its

operational efficiency and adjust product offerings in line with

market demand based on the sales data accumulated by its

information systems. The system also enables automated order 12

replenishment and ensures just- in-time delivery of products from

suppliers. In addition, the Company believes that its effective

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 34

inventory and operational management has allowed it to keep a

tight control over stock levels, operating expenses and minimize

losses resulting from inventory write-down’s. As a result, the

Company’s management information system is a key contributor to

the Company’s growth, providing an in-depth understanding of

local demographics and ability to respond quickly to changing

consumer preferences.

Capacity

Puregold has strategically- located stores tailored to maximize

coverage and penetration of its targeted market segments. The

company offers distinct store formats that are suitable for

different localities such as in commercial areas or residential

areas. In terms of location, the company assesses through informal

market research whether a proposed store will be within the

catchment area of, and easily accessible by, its target customers.

Puregold believes that its careful selection of store locations

and focus on specific markets has enabled it to build brand

strength and loyalty across its targeted customer base. Puregold

currently has three retail formats: hypermarket (Puregold Price

Club), which caters to resellers and retail customers;

supermarkets (Puregold Junior) and discount stores (Puregold

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 35

Extra). The bulk of the business comes from hypermarket with an

86.7 percent share of total revenues. As of end-September,

Puregold had 48 hypermarkets, 20 supermarkets and nine discounter

stores. In 2011 alone, a total of 15 stores were opened while 12

stores were opened in the last quarter of 2010. These new stores

accounted for nearly a quarter of total net sales for the nine-

month period in 2011. S&R, meanwhile, operates six membership

stores serving the AB market, located at Fort Bonifacio, Alabang,

Diosdado Macapagal Highway, Quezon City, San Fernando (Pampanga)

and Cebu. In terms of geographic base, the potential merger will

give Puregold a foothold outside Luzon, given S&R’s branch in

Cebu. Puregold itself, however, has plans to put up stores in the

Visayas and Mindanao within the next two to three years.

Quality

The Company’s success depends in part on its ability to source

and sell products that both meet its standards for quality and

appeal to customers’ preferences. A small number of the Company’s

employees are primarily responsible for both sourcing products

that meet the Company’s specifications and identifying and

responding to changing customer preferences. Failure to source

and market such products, or to accurately forecast changing

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 36

customer preferences, could lead to a decrease in the number of

customer transactions at the Company’s stores and a decrease in

the amount customers spend when they visit these stores. The

Company has established strict quality control procedures at all

of its hypermarkets, supermarkets and discounters and regularly

monitors the quality of merchandise. Quality control is enforced

at a per store level. On receipt of goods, all boxes are checked

for irregularities, with some boxes subject to random physical

inspection on arrival at the stores. If any item is found to be

irregular or defective, the whole box is returned to the supplier.

The Company tracks expiration dates for all goods, and products

must have a minimum shelf life to be displayed in the Company’s

stores, such as a minimum of two years prior to the expiration

date for canned goods and eight months for UHT milk. Expiring or

expired products are returned to their respective suppliers. Meat

products must be certified by the National Meat Inspection

Service, and must follow cold chain management standards set by

the Company and its suppliers. Since suppliers bear the liability

of defective products, any customer complaints are referred to

the customer care departments of the respective suppliers. The

Company has a team of merchandisers who conduct periodic

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 37

inspections of Company products across its stores. The Company

is also subject to unannounced inspections by local and national

government regulators to ensure compliance with applicable

regulations.

Technology

Puregold has an advanced management information technology

system that allows real-time monitoring of critical business

information from merchandising, inventory and point of-sale

(‘‘POS’’) data to customers, to financial management systems and

business intelligence. This system allows the Company to improve

its operational efficiency and adjust product offerings in line

with market demand based on the sales data accumulated by its

information systems. The system also enables automated order

replenishment and ensures just- in-time delivery of products from

suppliers. As a result, its management information system is a

key contributor to the company’s growth, providing an in-depth

understanding of local demographics and ability to respond

quickly to changing consumer preferences. In addition, the

company believes that its effective inventory and operational

management has allowed it to keep a tight control over stock

levels, operating expenses and minimize losses resulting from

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 38

inventory write-downs. Its inventory control system has resulted

in a shrinkage rate, calculated as the loss of goods as a

percentage of sales, of less than 1.0% from 2008 to June 30,

2011. The company plans to continually monitor store sales through

the use of advanced information technology systems for inventory

management and control, which provide real-time feedback of

customer preferences and purchasing trends. This is expected to

continue to enable the company to respond quickly to significant

changes in the market and efficiently respond with automated order

replenishment and just- in-time delivery of products that are in

demand. In addition, the company plans to continue using its

information systems technology to implement the following product

strategies:

• Customize product selection to regional tastes and

preferences;

• Improve assortment of, and proportion of sales from,

imported non-food products, especially clothing, footwear,

electronics and home appliances. These higher margin goods

are expected to increase overall profitability and allow for

more competitive pricing across other product categories;

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 39

• Increase net sales from private label products. Private

label products carry low marketing costs, attract high

margins, improve the Company’s brand visibility and offer

attractive sales growth potential; and

• Continue to offer a wide selection of high quality fresh

foods, including baked goods and freshly-prepared products,

which are highly popular among customers. Puregold believes

that, by continuing to improve its product offerings

according to the real time information it receives from its

information management systems, it will attract more

customers away from its competitors, improve average

transaction size and encourage more frequent visits by its

customers.

Research

The company believes that its ability to achieve a strong track

record of growth has largely been due to a business model that

emphasizes the following: (1) a multi- format offering of

hypermarket, supermarket and discounter stores; (2) strategic

store locations, and (3) efficient and scalable operations. The

company believes that this business model differentiates it from

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 40

its competitors and places it in a position to achieve further

expansion. Puregold has strategically- located stores tailored

to maximize coverage and penetration of its targeted market

segments. The company offers distinct store formats that are

suitable for different localities such as in commercial areas or

residential areas. In terms of location, the Company assesses

through informal market research whether a proposed store will

be within the catchment area of, and easily accessible by, its

target customers. The company believes that its careful selection

of store locations and focus on specific markets has enabled it

to build brand strength and loyalty across its targeted customer

base. In addition, the company’s efficient and scalable

operations are enhanced by outsourcing various logistics and

distribution functions to third party cross-docking providers

such as Supply Chain Solutions Management, Inc. (‘‘SCSM, Inc.’’)

and AONE, Inc., which the Company believes allows it to expand

its store network rapidly while lowering its operating costs. All

restocking of the Company’s inventory is provided through direct

store deliveries using the distribution networks of the Company’s

suppliers or by cross-docking, which is the moving of cargo from

one transport vehicle directly into another with minimal or no

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 41

warehousing, enabling the company to dispense with maintaining a

costly distribution network for deliveries. The company also

works with independent contractors and subcontractors to manage

the demand for manpower in connection with its store expansions.

These outsourcing arrangements result in a platform that allows

the company to benefit from a relatively quick turnaround period

from selection of a site to store opening and limit its investment

requirements for these new stores. Furthermore, it increasingly

benefits from economies of scale, including in purchasing,

merchandising, advertising and promotions and personnel costs.

As the company expands, its broad network of operations enables

it to attract highly regarded concessionaires, negotiate

favorable contract terms and establish close relationships with

concessionaires and suppliers.

Marketing Mix (4ps)

Product

The Company conducts its operations through three retail

formats and store brands. Hypermarkets, through “Puregold Price

Club”, offer a wide variety of general merchandise and a full-

service supermarket with wholesale. Supermarkets, through

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 42

“Puregold Junior”, operate as a neighborhood store which offers

targeted consumer items and a limited variety of general

merchandise. Lastly, discounters are operated through “Puregold

Extra”, which offers a limited number of goods, comprising of the

Company’s top-selling stock-keeping units, which are intended to

be sold quickly at prices lower than Puregold Price Club or

Puregold Junior. This design in the Company’s operation is in

order for the Company’s stores to reach its target customers. The

Company also provided suitable car parking facilities to

accommodate customers who travel to stores by car, and also

locates its stores in areas close to main transportation hubs.

The Company also offers delivery services to resellers who are

unable to travel to the Company’s stores. (Philippine Stock

Exchange).

Price

The Company’s pricing model is designed to achieve significant

competitive advantages by setting competitive prices in each

product category. The Company believes that its pricing model

allows it to make higher quality products more affordable for

customers, which it believes encourages customer satisfaction and

‘‘Puregold’’ brand loyalty. The Company’s regular pricing policy

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 43

determines the selling price on the basis of cost plus a pre-

determined profit margin. The Company looks to its competition

to ensure competitive pricing, and for its 1,000 top-selling SKUs,

uses the prices of competitors as a benchmark for pricing, pricing

these products at par or below. For top-selling products, the

Company reviews its pricing on a weekly basis, while for other

products, pricing is reviewed on a bimonthly or as- needed basis.

Place

Puregold continued its strong revenue growth in 2018, driven

by the opening of 30 new stores across the country. The company

currently operates a total of 354 groceries nationwide, with 125

located in Metro Manila, 93 in Northern Luzon, 101 in Southern

Luzon, 25 in Visayas and 10 in Mindanao. The Company believes

that that all the branches were well- positioned to take advantage

of continued growth opportunities in the Philippine retail

market. As for the current branches that were been launched, the

Company placed the branches strategically to the locations where

the risks may be minimized. Like for Marikina, where there is

frequent flooding, the branch was built with proper elevation in

order to prevent the flood to come inside the store. In places

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 44

where the risk of theft is high, like Divisoria, the company set

security cameras in every place to ensure the security.

Promotion

Puregold’s promotion focuses on print ads posted on public

transportations like buses. It also sponsors TV shows such as Eat

Bulaga by giving grocery package to winners of raffle promos of

the show. It has also increased its promotions through launching

of different activities such as Panalong Negosyo Pangarap na

Asenso, Hakot Panalo, Instant Papremyo and Todo-Todong Papremyo

Para Sa'yo 'To Playoff Game. The company’s marketing strategy

aims to increase customer loyalty, attract new customers within

its current markets, promote its private label goods and

facilitate entry into new markets as new hypermarkets,

supermarkets and discounters are established. Puregold provides

catalogues and leaflets to its customers at the entrance of its

stores. These catalogues and leaflets describe the Company’s

product promotions for a given period. The company advertises in

various print and broadcast media across the country, notably

through radio, television and print ads, as well as through mobile

venues such as on public transportation vehicles. It also uses

text messaging on mobile phones through the Globe Telecom network.

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 45

In addition, the company enlists various celebrities and other

public figures in its marketing programs. The company also aims

to continue to develop and improve its brand positioning to

enhance its competitiveness through extensive brand-building

activities such as expanding its television and other media

sponsorships and establishing new marketing and sponsorship

programs to improve brand visibility. In addition, to further

enhance its low price and high value- for- money positioning, as

well as increase the traffic and ticket at its stores, the company

intends to conduct various promotions, including seasonal holiday

promotions, special discounts for certain products and shopping

discount days.
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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 46

Financial Statement
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 47
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 48
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 49

Financial Summary:
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 50
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 51

CHAPTER III Situational Analysis

SWOT Analysis
STRENGTH WEAKNESS
-HIGH SALES GROWTH RATE -LIMITED BRANCHES OUTSIDE
LUZON
-HIGH PROFIT
-TOO MUCH COMPETITION
-DOMESTIC MARKET
-LOW INVESTMENTS IN RESEARCH
-MOBILITY AND DEVELOPMENT

-RETAIL CUSTOMER SERVICES

OPPORTUNITY THREATS
-EXPANDING PRODUCTS -INCREASE IN LABOR COST

-PROFIT INCREASES -EXTERNAL BUSINESS RISK

-NEW ACQUISITION -LIMITED FINANCIAL CAPITAL

-NEW PRODUCT AND SERVICES -TECHNOLOGICAL PROBLEMS

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 52

TOWS Matrix Table

STRENGTHS (S) WEAKNESSES (W)
Internal Factors
(IFAS) 1. Very low price 1. Outdated
2. Numerous Branches technology
3. Branded as one of 2. Intensifying
the leading super competition
market in the among industry
Philippines. players
4. Leading distribution 3. Sensitivity to
channel of goods to rising prices
External sari- sari stores/ of customers.
Factors (EFAS) small business. 4. Low investment
in research and
development.
OPPORTUNITIES (O) S/O STRATEGIES W/O STRATEGIES

1. Online Marketing (S1, O1) The gradual (W2, O2) Puregold

is a big trend in increase of Filipinos can devise a new eco
the Philippines using internet as a bag design to
2. Eco bags are medium for buying such as promote sales.
becoming a trend affordable necessities
3. Puregold and it’s a win- win (W3, O3). Puregold
Membership Card: situation for the company is currently at the
Aling Puring Card and customers. upper hand when it
4. Free check-ups at comes in freebies
selected branches (S3, O3) Using eco bags and promotions
to create more revenue through its
also it is widely used membership cards.
like in malls,
supermarkets, boutiques
and so on.
THREATS (T) S/T STRATEGIES W/T STRATEGIES

1. Credits card (S4 T1) With credit card (W1 T1) It is good
frauds frauds relatively riding, for Puregold to
2. Unemployment the should be more invest in a secure
rates are caution of using credit operational system
relatively rising cards. to protect the
company and its
(S2 T2) The company is customers.
not much concerned about
the effects of (W4 T2) Due to fall
unemployment because they in consumption about
have a good employment increasing saving
system. rate should cause an
unemployment rates.
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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 53

CHAPTER IV Alternative Courses of Action

Problems

1. Failure to meet the needs of customers for “smaller, more

frequent buying” due to the bulk packaging.
2. Weaker market power compared to competitors.
3. Hardships in opening stores in Visayas and Mindanao

Alternative Course of Action #1

➢ Expand in Visayas and Mindanao

Puregold needs to start expanding in Visayas and Mindanao

in order to capture a bigger market share.

Given its brand reputation and its supplier relations, the

risks involved in expanding in such areas are lessened; thus,

making it more attractive to company to enter such markets.

Moreover, people in theseareas are less commercialized than the

people in Metro Manila, so the company may be able to easily

capture the interests of the people in such areas. Lastly, there

are less malls and huge-scale groceries in these areas, so

Puregold will face less competition if they expand in such areas.

Alternative Course of Action #2

➢ Diversify through tie-ups with convenience stores

With the rise of the BPO industry in the Philippines, more people

are “on-the-go”. These people do not have the luxury of time to

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EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 54

spend inside the supermarket to buy their groceries for the week;

instead, these people drive the demand for convenience stores

that can provide them with meals and “on-the-go” products which

they can enjoy as they rush to work. These people are also the

ones for “smaller, more frequent buying” than bulk buying.

Puregold should start diversifying by opening up convenience

stores around the country, especially in areas which are BPO hubs.

This way, the company will be able to tap a bigger market.

Alternative Course of Action #3

➢ Additional storage area for the supermarket's products

and goods.

• Advantages

- Inventories will be stocked properly

- Provide products immediately

- Smoother flow of operations

- Save time

• Disadvantages

- Additional manpower

- Difficulty of inventory management

- Incur high costs

- Disagreement of rent terms

 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 55

CHAPTER V Recommendations

The group will use the ACA 1 for it is the best solution. The

group advises Puregold Price Club Inc. to start growing in the

Visayas and Mindanao regions given the company’s existing

position. The group thinks that the dangers that prevent the

company from developing in these sectors are simply common

concerns that organizations face occasionally. Puregold is judged

capable of minimizing such risks more than other merchants can

since not all have the same qualities as Puregold in terms of

brand image and reputation, financial stability, solid supplier

relationships, and low-cost approach. As a result, the group

thinks it’s time for Puregold to grow in the Visayas and Mindanao

regions in order to boost its profitability, get a larger market

share, and benefit from the absence of many rivals there. Because

Puregold is already a well-known brand, the business thinks that

with its assets at its disposal, it will be able to draw in more

clients quickly.
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ68
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 68

CHAPTER VI Plan of Action

Area Activity Objective Department/ Estimated Estimated Success

Concern Person Timeline Budget Indicator
Responsible
Human • The board • Organizational • HR 5 months 2 Million • Consider the
Resourc of coordination Department hired
e directors and • Finance outsourcer's
is meeting. communication. • IT efficiency
• Talking to • To approve the Specialist and
the project. productivity.
• CEO
leaders.
• Board of
• Meeting Directors
with all of
the top
executives.
• Employee • To improve the • HR 5 months 4 - 5 • Less cost.
recruitment manpower and Department Million • The said
, hiring, the quality of participants'
training, the project. active
and firing participation
as well as and
employee communication
benefits .
management.
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• Responsible • To improve the Quarterly 10 • Attendance at

for the employees' • Finance (3 time Million all lectures
seminar and learning and or and workshops
training knowledge. sessions must be 100%.
program. • To have better per year) People from
• Maintain services and the company
employee products. took part in
records. • To get people the activity.
more motivated
to do their
jobs well.
• To let
employees know
what's going
on with the
company.
• Project • To Centralize • HR 1 Year - • HR will now
structure the HR System. Department use a quicker
for • IT process and
software. Specialist methodology.
Run the new • Greater
system so effectiveness
that the at reduced
staff expense.
members get • Employees had
acquainted familiarized
with it. using the new
system.
Finance • Bring in • Meeting the • Finance/ 6 Months 20 • Approved
/ more objectives of Accounting Million Budget.
Account investors various Department • Department
ing (if stakeholders.
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ70
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 70

possible). • CEO received

• Obtain • Board of budget.
consent for Directors
the
projected
budget.
• Financial • The HR system • HR 1 Year 20-30 • HR came up
activities should be Department Million with a faster
include centralized. • IT procedure/
everything Specialist method.
that • Employees
involves learned the
the inflow new system.
and outflow • Uniformity in
of cash. the company's
• Financial policies and
operations procedures
include for its
purchasing personnel.
and
selling,
setting up
accounts,
and
tracking
accounts.
Purchas • Negotiates • To Centralize • Finance/ 6 Months 5 Million • Approved
ing prices and the HR System. Accounting Budget.
Manager contracts • To negotiate Department • Budget had
with and carry out • CEO been
suppliers. all company • Board of forwarded to
• Manages commitments 1 Year 10 the assigned
Directors
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EULOGIO “AMANG” RODRIGUEZ71
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other while paying • HR Million department.

members of fairly modest Department • Developed
the costs for the • Finance purchasing
purchasing best values strategies.
• IT
team. attainable. • Maintain
Specialist
• Maintains • Reducing cost. positive
• Finance
records of relationship
goods • Marketing
with
ordered and Management
supplier.
received. • Impact sales
• Builds and and cost of
maintains the company.
relationshi • Monitored the
ps with purchasing
vendors. team's daily
• Selects operations
prospective and
vendors and coordinating
negotiates supply
contracts. demands with
• Evaluates internal
vendors teams.
based on
quality,
timeliness,
and price.
 Republic of the Philippines
EULOGIO “AMANG” RODRIGUEZ
INSTITUTE OF SCIENCE AND TECHNOLOGY
College of Business and Public Administration 70

Chapter VI Plan of Action (CANVA – Poster)