B.

Marketing:

The Figaro Coffee Company is a chain of coffee shops that

serve a world of excellent brewed specialty coffee, and everything

that goes perfectly well with it. Exuding old-world European charm,

every Figaro coffee shop offers quality coffee in a variety of beans,

blends, roasts, brews, flavours, and concoctions. To liven up the

fare, we also offer a wide selection of teas and pastries and the

larger coffee shops serve pizzas, pastas, sandwiches, and a

delectable breakfast menu of pancakes, waffles and omelets. Of

course, to create the perfect ambience for the coffee connoisseur,

our shelves are lined with a variety of beans and mugs, and other

things that are part and parcel of the coffee line.

The outlet is paying increasing attention to the food served.

With a number of office towers in the immediate vicinity, it clearly

makes sense to cater to the business people looking for something

decent to eat. The menu offers gourmet sandwiches, such as the

grilled rosemary chicken on focaccia for 37 yuan (US$4.70). The

rosemary-infused meat was a pleasure to eat, although a little bit

more cheese would be a welcome addition. Other tasty sandwich

offerings include the pepperoni and cheese ciabatta (35 yuan), and
the croque monsieur ham and cheese grilled sandwich for 29 yuan,

among others. These sandwiches alone are better than a number of

places, but the store does not stop there. It also serves a few pasta

dishes that are not the typical bolognese sauce found almost

everywhere else. Instead, the signature pasta is the Pasta ala Carlo

(39 yuan). A spicy tuna and olive oil based sauce makes this dish,

named after one of the chain's directors and store designers, an

unusual yet welcome bite for a quick meal. Figaro Coffee Company

also offers set menus for lunch and dinner, and are priced between

50 yuan and 90 yuan - much cheaper than the surrounding

Xintiandi establishments. In anticipation for the cooler season, the

store has introduced operate their very own roasting facility to

control the excellent flavours of their coffees. They also have their

own facilities to train all store crew members in the fine art of

customer service and the European style of serving coffee.

C. Finance/Accounting:

It started with P1 million and that gave the store, the

inventory, the security deposit, and the rent. Its first store was 35

square meters. No kitchen.

D. Production/Operation:

Figaro, which stands toe-to-toe with international coffee

giants Starbucks and Seattle’s Best, has its local sales growing at

the rate of 15 percent to 20 percent per year. Its market share is

approximately 30 percent. Domestic coffee consumption is

increasing at 3- percent annually, which assures steady demand for

the product. Figaro, a 100-percent Filipino-owned company, started

operations in 1993. Its product lines include specialty roasted local

coffee varieties and various coffee-related paraphernalia. Figaro’s

franchising system is certified ISO 9001:2000 for its quality

management and practices, administrative and in-store procedures

perfected by time as well as experience. The system is oriented to

provide total support which ensures success and profitability for all

Figaro franchisees.

Figaro assure the consistently high quality of their coffees by

establishing close relationships with their coffee growers and

maintaining strict selection standards for their coffee beans. Figaro

operate their very own roasting facility to control the excellent

flavours of their coffees. They also have their own facilities to train
all store crew members in the fine art of customer service and the

European style of serving coffee.

E. Research and Development:

Figaro is a model on what corporate-academe partnership can

achieve. To keep the academe motivated, Figaro buys their

products. “There’s a sure market there, where the schools could

have a viable source of income,” said Dr. Alejandro Mojica, Figaro

consultant for coffee research.

F. Management Info. System:

Opened in 1993, Figaro Coffee Company (FCC) started seeing

franchising as another way of growing in 1996. But FCC didn’t just

give out franchises for the sake of growing. “Don’t offer franchises

just because you think people are in love with your brand,” says

Pacita U. Juan, FCC president, in SME Community Philippines. “You

have to support your brand and maintain its values.”

G. Summary and Conclusion:

The Figaro Coffee Company was established in 1993 by a

group of seven friends, whose zeal for coffee was acquired from

their travels all over the world. This passion began as a hobby of

brewing, tasting and experimenting with many varieties of coffee

from around the globe. It soon grew into a business, with the

purpose of sharing the fine art of European coffee culture with as

many people as possible. Beginning with one small kiosk in one of

the prominent malls in Makati, Figaro have grown to over 50 Coffee

Stores, spreading the love and fervor for coffee throughout the

Philippines, China and the Middle East in just over 13 years.

V. STRATEGY FORMULATION:

A. The TOWS Matrix:

Threats ST Strategies WT Strategies

1.unpredictable -Introducing present products. -Improving and
production cost. developing new
-Continuously improve products that will
2. longer employee-employer increase market
operating hours. relationship to provide share.
favorable working
environment for the company.

B. The SPACE Matrix:

Variables ratings

Financial Strengths

- cash flow 4

- liquidity 4

- financial leverage 4

Average 4

Competitive Advantage

- open door policy and above industry salary

packages that gives favorable working environment

for the employees and prevents employee union. -1

- strong research and development that continuously

introducing new products and responding to the

changing preferences of the customers. -2

Average -1.10
VI. STRATEGIC OBJECTIVES AND THE RECOMMENDATION

STRATEGIES:

1. introducing new products to new segments or geographic

scope.

2. seeing increase sale in present markets by improving

present products or developing new one.

3. increase profits and sales by 20%.

4. maintain financial stability by paying debts and

profitability.

5. Maximize controllable expenses and production cost.