MONDE NISSIN CORPORATION

LOCATED AT
BRGY. BALIBAGO, STA. ROSA, LAGUNA, PHILIPPINES

A Strategic Plan
Presented to the Faculty of
College Business and Accountancy
University of Batangas
Batangas City

In Partial Fulfillment
of the Requirements for the subject
MGT9- Strategic Management

by:
Culla, Kristal Mei S.
de Castro, Jan Rose A.
Garcia, Krischelle M.
Mendoza, Clouie May M.
Raras, Sharmaine E.

May 2021
 MODULE ONE

Introduction

Monde Nissin Corporation (“Monde Nissin”) was one of the largest food

manufacturers and is a global food and beverages company located in Santa

Rosa, Laguna, Philippines. It was founded by Hidajat Darmono in 1979. For about

42 years, it has established market leading brands including Lucky Me!,

SkyFlakes, Fita, M.Y. San Grahams, Quorn and Nissin. Today, this company has

grown into a multinational company committed to its mission of “Bringing good

food to tables around the world”. Initially, the company was incorporated as

Monde Denmark Nissin Biscuit Corporation with only two products launched to

enter the market. Its pioneering products were Nissin butter coconut biscuits and

Nissin wafers which are still available in the present. Now, the company was being

managed by Betty Ang, the President and Director of Monde Nissin, and one of

the Philippines' richest persons for 11 consecutive years.

Monde Nissin has steadily and aggressively risen to become the

Philippines' leading food manufacturer, and it is now establishing itself as one of

the most competitive players in the global industry. In fact, Asia-Pacific Branded

Food and Beverage (“APAC BFB”) Business and Meat Alternative Business

comprise the company’s portfolio. The APAC BFB business consists of three

product groups including instant noodles, biscuits and other products. On the other

hand, meat alternative products were also being offered as part of the company’s

venture for higher-value products. These are considered as vegetarian-friendly

products that also provide consumers with better and healthier options.
 Now, a small manufacturing firm in Tondo has grown from its first biscuit to

become a leading food company. It is known that in 1979, Monde ventured into

the instant noodles segment. Then, in 1991 it introduced Lucky Me! brand, the first

dry stir-fry pouched noodles in the Philippine market, which eventually became

the iconic noodle brand in the Philippines. While in 2001, the company acquired

M.Y. San Biscuit, Inc., manufacturer of SkyFlakes, Fita, and M.Y. San Grahams.

As a result, it changed its name to Monde M.Y. San Corporation. Truly, Monde

Nissin products strive to be market leaders in their respective categories on a

continuous basis.

Apart from developing its own brands, Monde Nissin has led acquisitions

and formed business partnerships, resulting in the diversification of its product

lines and increased international market reach. Monde Nissin acquired Quorn for

£550 million in 2015, a brand dedicated to help consumers create tasty meals and

sustainable nutrition. The acquisition was the third largest overseas purchase by

a firm in the Southeast nation at the time of the transaction. The progress and

continuous development of the chain did not stop there because in 2019, Monde

Nissin also invested in NAMZ Pte. Ltd., a food science company in Singapore that

redesigns food, beverage and personal care products.

Recently, Monde Nissin Corporation filed a registration application with the

Philippine Securities and Exchange Commission on March 4, 2021, in anticipation

of an initial public offering of its common shares. It plans to raise 63 billion pesos

($1.3 billion) through the sale of 3.6 billion common shares at a maximum price of

17.50 pesos per share, in what will be the country's largest-ever IPO. The offer
includes a total allotment option of up to 540 million shares. In response to rising

demand from health-conscious consumers, the proceeds from its IPO will be used

to increase its production capacity, particularly in meat substitutes (Burgos, 2021).

It is no longer surprising that the company has consistently been ranked

among the top 50 corporations in the Philippines in terms of gross revenue for

more than two decades. Because aside from its proactive strategy, what brings

success to the company is its passion to produce “good food” that has a significant

impact on the health of the customers. Furthermore, the success was attributed to

the company’s continuous product innovations and operations that aims to add

societal value and contribute to sustainable development of the planet. Indeed,

Monde Nissin is a market leader that has established a great value all over the

world by bringing more delicious, nutritious, and better products not only for us but

also for the future generation.

 MODULE TWO

1. Definition of the Industry

The food manufacturing industry consists of a complex and highly

diversified global network of businesses that transform livestock and agricultural

products into goods that are mainly intended for immediate or final consumption.

Specifically, the industry is distinguished by the raw materials (i.e., animal or plant

origin) processed into food products, encompassing a series of industrial activities

such as conversion, preservation, distribution, packaging, and certification. These

food products are typically manufactured and sold to wholesalers or retailers for

distribution to consumers. Today, this industry ranges from labor-intensive, small-

scale, traditional, and family-run businesses to capital-intensive, large-scale, and

highly mechanized enterprises. But this sector is actually less-capital intensive

and more labor/resource intensive compared to the other subsectors in the

manufacturing industry. That said, the food manufacturing industry is classified

under the ‘low-technology’ subsector.

The manufacturing of food products can be characterized into several

different methods such as: 1) one-off production; 2) batch production; 3) mass

production; and 4) just-in-time (JIT) production.

● One-off production: used for customized products, (e.g. wedding cake).

This can take days depending on the intricacy of the specifications.

● Batch production: used when the size of the market for a product is not

clear, and where there is a range within a product line.

● Mass production: used when there is a mass market for a large number of

identical products, (e.g. chocolate bars), ready meals and canned food. The

product passes from one stage of production to another along a production line.

● Just-in-time (JIT) (production): all components of the product are available

in-house and the customer chooses what they want in the product.

In a nutshell, this whole industry includes: 1) agriculture: raising crops,

livestock, and seafood; 2) food processing: preparation of fresh products for

market, and manufacture of prepared food products; 3) marketing: promotion of

generic products (e.g., milk board), new products, advertising, marketing

campaigns, packaging, public relations, etc.; 4) wholesale and food distribution:

logistics, transportation, warehousing; 5) foodservice (which includes catering); 6)

grocery, farmers' markets, public markets and other retailing; 7) regulation: local,

regional, national, and international rules and regulations for food production and

sale, including food quality, food security, food safety, marketing/advertising, and

industry lobbying activities; and 8) research and development: food technology.

Food consumption, in itself, generally drives demand, and this is also directly

proportional to population growth. Given that the worldwide population continues

to increase as years pass by, the demand for food increases as well. In fact, an

industry research reported that the market size of manufactured foods in 2019

reached up to $5.9 trillion worldwide, which is estimated to grow up to $7.7 trillion

by 2026. This exemplifies that the global industry revenue is seen to be steadily
rising, however, due to economic recessions in key emerging markets, this

industry has experienced a curbed growth in the recent years.

As stated in the discussion paper written by del Prado & Rosellon (2017),

about 39% or 9,891 out of 25,064 total establishments in the Philippine

manufacturing sector is reported to be part of the food manufacturing industry,

making it the largest sub sector in 2012. PSA data shows that the large Filipino

players in this industry comprise of San Miguel Corporation and Universal Robina

Corporation, and Monde Nissin Corporation. However, the Philippine

manufacturing sector confronts a strong competition from lower-cost products

from the other countries albeit having less entry barriers, less skill requirements

for workers, and generates huge employment opportunities. Given that food

products are commodities subject to price competition, Philippine manufacturing

companies should continuously strive for an efficient operation to be deemed

competitive on a cost and logistical basis. Aside from this, the industry is highly

saturated, with 50 largest food manufacturing companies accounting for about

51% of the industry revenue. This shows that companies should always compete

for consumers.

2. Michael Porter’s Five Forces of Competitive Framework

2.1 . Competitive Rivalry

Monde Nissin needs to concentrate on differentiating its goods so that

the activities of rivals have less of an impact on its consumers who are looking

for something different. Since the market is expanding, Monde Nissin will
 concentrate on attracting new consumers rather than competing with

established businesses.

Rivalry among existing firms are as follows;

● Monde Nissin's competitors are few and far between in the industry

in which it operates. The majority of these are also quite large. This means that

companies in the industry will not make moves that go unnoticed. As a result,

rivalry among existing firms becomes a weaker force in the industry.

● Only a few competitors have a fairly large market share. This means

that they will engage in competitive actions in order to gain market leadership. As

a result, rivalry among existing firms becomes a more powerful force in the

industry.

● Monde Nissin's industry is growing year after year and is expected to

do so for the foreseeable future. Positive industry growth means that

competitors are less likely to engage in competitive actions because they are not

competing for market share. As a result, rivalry among existing firms becomes a

weaker force in the industry. ● The fixed costs in the industry in which

Monde Nissin operates are high. As a result, the companies in the industry

are forced to operate at full capacity. This also means that when demand falls,

these businesses will have to lower their prices. Therefore, the rivalry among

existing firms becomes a more powerful force in the industry.

● Monde Nissin's products are highly differentiated within the industry

in which it operates. As a result, competing firms find it difficult to win each

other's customers because each of their products is unique. Therefore, rivalry

among existing firms becomes a weaker force in the industry.

● The production of products within the industry necessitates a

significant increase in capacity. As a result, the industry is vulnerable to

disruptions in the supply-demand balance, which frequently leads to

overproduction. Overproduction necessitates price reductions by businesses in

order to ensure that their products sell. As a result, rivalry among existing firms

becomes a more powerful force in the industry.

● The industry's exit barriers are particularly high due to the significant

investment required in capital and assets to operate. Because of government

regulations and restrictions, the exit barriers are also high. As a result, firms within

the industry are hesitant to leave, and they continue to produce even at low profits.

Therefore, rivalry among existing firms becomes a more powerful force within the

industry.

● The firms in the industry have diverse strategies, which means they

are distinct from one another in terms of strategy. As a result, they run into

each other in terms of strategy. Therefore, competition among existing firms is a

powerful force in the industry.

2.2. Supplier Power

The fewer supplier choices you have, and the more you need suppliers'

help, the more powerful your suppliers are. A firm must have many suppliers for

alternatives; if the supplier ran out of stock, the firm could have the option to avail
from the other supplier. The raw materials used to produce Monde Nissin's

different products are outsourced from different countries like the United States of

America and Australia. It means an additional cost to the company and will also

cause the prices of the products to rise. Ingredients in making the products are

within reach of the manufacturers, either import or buy locally. And because

manufacturers buy in volume, their bargaining power increases as their order, too,

increases, getting a much lower price. Therefore, supplier power is low because

there is a high availability of supplies in the country or outside the country. At this

time, Monde Nissin Corporation, together with its distributors, suppliers, and

partners, are working to make Lucky Me! widely available during this time of crisis.

2.3. Buyer Power

Monde Nissin Corporation has substantial and competitive market share

positions in the food and beverage segments in the Philippines. In fact, the

company had dominated the Philippine instant noodles segment, garnering a

market share of 68% in terms of retail sales value, while the company ranked first

overall in the biscuits segment where the company has seven brands as of 2020-

year end, acquiring a market share of 30.5% in the same category. Virtually, all of

the company’s consumer business is branded, which comprises well-recognized

and diversified household brands. For over 40 years, the company has created

and managed a market-leading portfolio of seven flagship brands as of December

31, 2020 including Lucky Me!,

SkyFlakes, Fita, M.Y. San Grahams, Nissin, Mama Sita’s and Dutch Mill.

Moreover, Lucky Me!, for the fifth consecutive year, topped the instant noodle
segment, turning it into an iconic brand consumed by 98% of Filipino households

in 2020. The foregoing data shows that the company has strong brand awareness

and equity across its

portfolio.

The table below exhibits the company’s key brands under its product groups,

associated types of products offered in the Philippine market, and Philippine

market share information in retail sales value for 2020:

 In this regard, the company clearly has the upper hand in terms of price

dictation at a retail level. Through the years, their products have been subjected

to price increases yet the above mentioned data shows that many consumers are

still willing to spend more for their products both in the food and beverage

segments. More than this, the company’s channels of distribution (i.e., direct sale,

sale through wholesaler, and sale through retailer) provide their end customers no

other means to bargain given that these products are already tagged with fixed

prices. Thus, the buyer power at a retail level is seen to be low.

Conversely, there is no assurance that supermarkets, e-commerce

platforms or other larger customers will not attempt to haggle the wholesale prices

of the company’s products, which could negatively affect their sales and

profitability. As of the year end, the company’s top three wholesale customers

include Puregold, Suy Sing, and Robinson’s, and sales to them represented 9.9%,

4.0% and 3.5% of the company’s total sales in the Philippines, respectively. With

these customers becoming more substantial, loss of any of these could be

equated to a significant downfall in terms of financial conditions and results of

operations. In this regard, there is a risk that the company may concentrate on

fewer and larger customers, which could increase the bargaining power

associated with these customers. In this regard, the company endeavors to

strengthen their existing relationship with these customers and also establish

relationships with new customers. This allowed them to maintain healthy margins

with strong scale leverage and operational excellence as shown in their financial

metrics. Thus, at a wholesale basis, the buyer power is at a moderate level.

2.4. Threats of New Substitution

A lot of illnesses are affecting the human generation today, hence, people

choose to consume nutritious foods in order to avoid being ill. In regard to

substitutes, options such as chips, chocolates, fruits, and noodles are available

on the market. Due to this fact, intense competition in the food manufacturing

industry is one factor that has a significant impact on the company's market share.

In addition, the possibility of the rise of the new entrants in the market may

also produce competition. Consumers are increasingly health conscious, they

demand fresher and higher nutritional food. As such, there is an increasing

consumer preference for fruits, vegetables, poultry and low fat, low sugar and zero

to low preservatives content products. So, no matter how much hard work Monde

Nissin has contributed to the improvement of biscuits quality, the dry bakery

products are not considered as a real meal to the consumers.

Furthermore, undesirable reactions to innovation will take place where

some of their consumers will find other substitute products that suit their taste. In

the noodle industry, the possible threat substitute is when people can easily cook

Carbonara, Pancit, Spaghetti, Sotanghon or a soup with macaroni pasta instead

of noodles. Also, among other brands like Payless and Quick Chow has a lower

price for its product. Monde Nissin also provides different promotional techniques

in order to attract more customers and remind the existing customers that their

product is still available.

 In a summary, there is a high threat of substitutes because of high

competition between the minor and major industry players.

2.5. Threats of New Entry

Because the industry is profitable, many new entrants will attempt to enter

the market. The new entrants, on the other hand, will eventually cause a decrease

in overall industry profits. Unless the entry of new firms can be blocked by Monde

Nissin, the profit rate will fall towards a competitive level.

However, since dry bakery products, particularly biscuits, cookies, pretzels,

and crackers, require low-cost and by-volume-sold ingredients such as flours,

shortening, baking powder, sugar, milk, cheese, and other dairy products, and are

baked in large quantities, entry into the industry is easy. On the other hand, there

is an increasing number of manufacturers for instant noodles which are

considered as new entrants. One of the leading entries for pancit canton is the

“Extra Big Pancit Canton'' by Payless. This particularly new product yielded a very

high demand recently in the market. Many customers like the taste and flavors of

Payless’ extra big pancit canton. Aside from that, the price was cheaper than

Lucky Me! and in terms of size Monde Nissin’s canton was smaller. Consumers

preferred bigger pancit canton these days.

The following factors characterize the level of threat to new entrants: 1)

barriers to entry that includes copyrights and patents; 2) high capital requirement;

3) government restricted policies; 4) switching cost; 5) access to suppliers and

distributions; and 6) customer loyalty to established brands. As a result, it is

necessary to obstruct new entrants into the industry.

 In summary, Monde Nissin’s industry is profitable, high demand, and

requires lower cost of bulk production, therefore a high potential for new entrants

was given. As a result, it is necessary for Monde Nissin to formulate strategies to

obstruct new entrants into the industry.

3. Macro Environment Analysis (PESTEL Framework)

3.1. Political

A business' day-to-day operations can pose an ongoing threat to the

natural environment. To reduce the likelihood of damage to the environment,

federal and state regulations require companies to consider certain natural

environmental factors in their overall operations plans.

Due to the rising cost of raw materials such as flour and sugar, packaging

materials, fuel, and electricity costs, MNC finds it challenging to reach its targets

since Monde biscuits highly depend on volume to generate good profit. And there

is no current legislation that helps bring down the prices of these essential

commodities.

3.2. Economical

The economic environment has an impact on both the organization’s

production and the consumer’s decision making process. Strong manufacturing

means more of the country’s agricultural; minerals and other products are being

processed, employing the latest technology, production techniques and skilled

manpower.

Monde Nissin Corporation is one of the country’s largest and leading food

& beverages product manufacturers, having all the research and development
facilities, strong advertising campaign and wide market reach. The industry's

product manufacturing needs a major increase in production. Consequently, the

industry is susceptible to supply-demand disequilibrium, which often results in

overproduction. To ensure that their products sell, companies must reduce their

prices due to overproduction.

In conclusion, the price of the goods affects the number of consumption of

the product that falls under the economics. Economic analysis has reference to

the broad characteristics of the economic system in which the business firm

operates. The existing economic environment of business is highly complex and

it is not easy to comprehend it.

3.3. Social

The culture and way of doing things in society have an impact on the culture

of an organization in an environment. The population's shared beliefs and

attitudes play a significant role in how marketers at Monde Nissin Corporation

understand the customers of a given market and design marketing messages for

consumers. The social factors that Monde Nissin's leadership should consider for

PESTEL analysis are as follows. 1) Change in population growth rate and age

factors, and its impacts on organization 2) Effect on organization due to Change

in attitudes and generational shifts 3) Standards of health, education and social

mobility levels. Its changes and effects on company 4) Employment patterns, job

market trend and attitude towards work according to different age groups 5) Social

attitudes, and, social trends, change in socio culture and its effects 6) Religious
believers and lifestyles and its effects on organization and 7) Other socio culture

factors and its impacts.

Every product and service's production and performance must take into account

society. To demonstrate that the organization is taking social responsibility, any

elements of the production process or products/services that are harmful to society

should be eliminated.

In addition, Monde Nissin promotes “Kainang Pamilya Mahalaga,” which

promotes frequent family meals together as a simple yet effective way to raise

happy, healthy, and successful children. With these taglines, consumers'

perceptions may change, and the company may be able to persuade each

individual to buy the product.

There are also Filipino characteristics that influence the purchasing system

in a market. Local consumers, for example, are fond of purchasing flavors that are

distinct not only in their local taste, but also in flavors that have distinct

international taste, which alters the buyer's perception.

Therefore, Monde Nissin can influence the ability of the firm to obtain

resources, make its goods and function within the society through providing tag

lines and taking in consideration the Filipino Traits.

3.4. Technological

Due to the increase of competitors, technological change was seen through

the cutting edge research and development departments created by these

companies to create innovative products to serve the Filipino consumers better.

More variations are now present to distinctly stand out from competition.

The Monde Nissin Corporation made an investment on the development

and implementation of the first high-speed airflow technology in one of its Lucky

Me! product lines to reduce the palm oil content. Also, Quorn Foods uses an

innovative air lift fermentation technology that is designed to produce a

continuous-flow culture, using a process that ensures a consistent output and

yields a productivity approximately five-fold greater than what could be achieved

by a series of separate batch fermentations.

On the other side, Monde Nissin Food Co., Ltd. has always been extremely

competent with sufficient financial capacities that should allow it to withstand

fluctuations in consumer demand throughout the years. Its manufacturing plants

and equipment remain modern and environmentally safe, complemented by

subsidiaries that have safety research in food technology.

In addition, the Group believes that its Meat Alternative Business

represents a breakthrough innovation with the mycoprotein technology serving as

a sustainable source of protein. Nissin's technological expertise, directorial

competence and workforce commitment remain at the highest levels. MNC uses

advanced-technology such as robots and automated machines in order to make

the production faster and ensure accurate transactions that are going in and out

the company. This is probably the reason why Lucky Me! is the only instant noodle

that has No Artificial Preservatives Added (NAPA). This is a fact that everyone
should be informed and changed the perspective that this instant noodle was not

fried but is done through blow drying.

Overall, the Group intends to further accelerate category growth through

new product developments, additional flavor offerings resulting from improved

flexibility in flavor changes incidental to the high-speed airflow technology,

increased promotion and wider distribution.

3.5. Legal

Multinational companies with massive international and local market

presence like Monde Nissin Corporation should never neglect the legal framework

and institutions of each country they operate on. The company needs to know this

to successfully and legally carry out its business operations. More importantly, this

gets tricky because every country has its own set of laws; hence, the company

has to take note of the variances of such regulatory structures. Further, the

company has to be at par with any potential legislative amendments that may

impact the business in the future, thus, the company should have a reliable legal

team who would oversee these.

In the Philippines, where one of the company’s principal places of business

is established, Monde Nissin Corporation is subjected to various regulatory

matters given their massive impact in the country. Specifically, here are some of

the laws that the company complies with:

● Republic Act No. 10611 or the Food Safety Act of 2013. To protect consumer

interest, this act seeks to prevent misbranding, adulteration, fraudulent practices that

might mislead consumers in terms of labeling, and advertising. In line with this, the DA

and DOH are mandated to set food safety standards that the food manufacturing

industry must comply with to safeguard human health. Likewise, the law mandates the

use of science-based risk analysis in food safety regulation and prescribes the

adoption of precautionary measures when the available relevant information for use

in risk assessment is insufficient to show a certain type of food or food product does

not pose a risk to consumer health.

● Republic Act No. 8976 or the Philippine Food Fortification Act of 2000.

This act provides for the mandatory fortification of wheat flour, cooking oil and

other staple foods and the voluntary fortification of processed food products.

Manufacturers, imports and processors of food products are subjected to this law.

The regulatory agency involved in the implementation of this is the FDA along with

the assistance of the different local government units. Specifically, they are

mandated to monitor foods in public markets, retail stores and foodservice

establishments, and to check if the labels of such fortified products contain

nutritional facts stating the nutrient added and its quantity. Any person in violation

of the PFF Act shall be subject to administrative penalties. Furthermore, the FDA

may refuse or cancel the registration or order the recall of food products in

violation of said law.

● Republic Act No. 3720 or the Foods, Drugs and Devices, and

Cosmetics Act, as amended by Republic Act No. 9711 or the FDA Act of 2009
(the FDDC Act). This act establishes standards and quality measures in relation

to the manufacturing and branding of food products to ensure the safe supply

thereof to and within the Philippines. Specifically, the FDDC Act prohibits, among

others, (i) the manufacture, importation, exportation, sale, offering for sale,

distribution or transfer, non-consumer use, promotion, advertisement or

sponsorship of food products which are adulterated or misbranded or which,

although requiring registration pursuant to the FDDC Act, are not registered 266

with the FDA; and (ii) the manufacture, importation, exportation, transfer or

distribution of any food product by any person or entity without a license to operate

from the FDA. Any person found in violation of any of the provisions of the FDDC

Act shall be subject to administrative penalties or imprisonment or both.

Furthermore, the FDA has the authority to seize such food products found in

violation of the FDDC Act as well as ban, recall and withdraw any food product

found to be grossly deceptive, unsafe, or injurious to the consuming public.

● FDA Rules and Regulations. Consistent with the mandate to adopt and

establish mechanisms and initiatives that are aimed at protecting and promoting

the right to health of every Filipino, the FDA issued the Rules and Regulations on

the Licensing of Food Establishments and Registration of Processed Food, which

require all food establishments to obtain a License to Operate (LTO) from the

FDA. An LTO and other requirements specified in the Food Safety Act and its

implementing rules and regulations are necessary for establishments engaged in

the manufacturing, importation, exportation, sale, offer for sale, distribution,

transfer, use, testing, promotion, advertisement, and/or sponsorship of alcoholic

beverages. An initial LTO is valid for a period of two years, while a renewed license

is valid for five years.

● Republic Act No. 7581 or the Price Act, as amended by Republic Act

No. 10623. This act provides for price controls for basic necessities and prime

commodities in certain situations, pursuant to the policy of the government to

ensure the availability of basic necessities and prime commodities at reasonable

prices at all times, without denying legitimate business a fair return on investment.

Basic necessities include rice, corn, root crops, bread; fresh, dried or canned fish

and other marine products; fresh pork, beef and poultry meat; fresh eggs; potable

water in bottles and containers; fresh and processed milk; fresh vegetables and

fruits; locally manufactured instant noodles; coffee; sugar; cooking oil; salt;

laundry soap and detergents; firewood; charcoal; household liquefied petroleum

gas (LPG) and kerosene; candles; and drugs classified as essential by the DOH.

Prime commodities include flour; dried, processed or canned pork, beef and

poultry meat; dairy products not falling under basic necessities; onions, garlic,

vinegar, patis, soy sauce; toilet soap; fertilizer, pesticides and herbicides; poultry,

livestock and fishery feeds and veterinary products; paper; school supplies; nipa

shingles; sawali; cement; clinker; GI sheets; hollow blocks; plywood; plyboard;

construction nails; batteries; electrical supplies; light bulbs; steel wire; and all

drugs not classified as essential drugs by the

DOH.

● Republic Act No. 7394 or the Consumer Act of the Philippines. The

Consumer Act establishes quality and safety standards with respect to the
composition, contents, packaging, labeling and advertising of food products and

prohibits the manufacture for sale, offer for sale, distribution, or importation of food

products which are not in conformity with applicable consumer product quality or

safety standards. Like the FDDC Act, the Consumer Act also prohibits the

manufacture, importation, exportation, sale, offering for sale, distribution or

transfer of food products which are adulterated or mislabeled. In connection

therewith, the Consumer Act provides for minimum labeling and packaging

requirements for food products to enable consumers to obtain accurate

information as to the nature, quality, and quantity of the contents of food products

available to the general public. The Consumer Act likewise prohibits false,

deceptive, or misleading advertisements and sales promotions and deceptive

sales and acts and practices in connection with food products. Any person who

violates the provisions of the Consumer Act shall be subject to administrative fines

or imprisonment or both at the discretion of the court. Should the offense be

committed by a juridical person, the chairman of the board of directors, the

president, general manager, or the partners and/or the persons directly

responsible therefore shall be penalized. Under the Consumer Act, the DOH also

has the authority to order the recall, ban, or seizure from public sale or distribution

of food products found to be injurious, unsafe or dangerous to the general public.

● The Labor Code of the Philippines (Labor Code). This seeks to protect

labor, promote full employment, ensure equal opportunities regardless of sex,

race or creed and regulate the relations between workers and employers. The

Labor Code prescribes the rules for hiring and termination of private employees,
the conditions of working including maximum work hours and overtime, employee

benefits such as holiday pay, thirteenth month and retirement pay and the

guidelines in the organization and membership of labor unions. The Department

of Labor and Employment (DOLE) is the Government agency mandated to

formulate policies and implement programs and services, and serves as the

policy-coordinating arm of the executive branch in the field of labor and

employment. The DOLE has exclusive authority in the administration and

enforcement of labor and employment laws such as the Labor Code and the

Occupational Safety and Health Standards, as amended, and such other laws as

specifically assigned to it or to the Secretary of the DOLE.

● Republic Act No. 11058 or the Occupational Safety and Health

Standards Law. Under this law, every employer, contractor, subcontractor and

any person who manages, controls, or supervises the work being undertaken is

required, among others, to furnish the workers a place of employment free from

hazardous conditions that are causing or are likely to cause death, illness or

physical harm to the workers. The law also requires them to give complete job

safety instructions or orientation and to inform the workers of all hazards

associated with their work, health risks involved or to which they are exposed,

preventive measures to eliminate or minimize the risks and steps to be taken in

cases of emergency. Department Order No. 198, series of 2018 (D.O. 198) was

promulgated by the Department of Labor and Employment to implement the

provisions of the Occupational Safety and Health Standards Law. D.O. 198

classifies establishments as low, medium or high risk, and depending on the

number of employees per establishment, provides for the corresponding

requirements and provisions required of each employer, such as number of safety

officers, occupational health officers and provision for health equipment and

facilities.

3.6. Environmental

Monde Nissin are concerned about the implications of manufacturing

activities on the environment. Firms should answer the demands for corporate

social responsibility in this aspect. For example, pollution and waste management

are particularly important considerations. Since the government has already put in

place policies that address environmental concerns, environmental reporting is

now the focus of governmental efforts.

As a matter of fact, there are complaints, most of the time, about the said

instant noodle. It was all about the packaging, or the product itself. There are

issues about the packaging which is not environmentally friendly. But the good

thing is that the Monde Nissin Company is always taking the responsibility,

socially, for the customers’ satisfaction and safety. On the other hand, to address

one of the primary environmental concerns associated with the food

manufacturing sector which is solid waste management, the Group aims to (i)

incorporate waste-to-value policies, (ii) control post-consumer waste footprint, and

(iii) implement other measures such as yield loss reduction and materials

efficiency.
 In addition to that, the company considers the government policies that

address environmental concerns such as Philippine Environmental Impact

Statement System,

The Clean Water Act, The Clean Air Act, Republic Act No. 6969 or the Toxic

Substances and Hazardous and Nuclear Wastes Control Act of 1990, and more.

4. Opportunities and Threats

A multinational company (MNC) like Monde Nissin, aside from its

management, should also monitor its external environment. That said, the

company should also understand the opportunities and threats present in the

industry and substantially capitalize and leverage on them. This will significantly

increase their business viability; thus allowing them to continue their operations in

the foreseeable future.

Opportunities

● Partnership with Dexion Southeast Asia for the construction of seismic

proof warehouses. Monde Nissin has a fully automated production system,

allowing them to attain an annual growth of 10 – 15%, which equates to 15,000 –

20,000 cartons a day. This much of production volume would require huge

inventorial facilities that would not only contain all finished products but would also

accomplish the throughput needed. However, given that the said company is

headquartered in the Philippines, the company had to prepare for worst-case

scenarios brought upon by its topography. That said, the company would also

need to create an inventorial facility that is strong enough to withstand seismic

waves. In this regard, the company has partnered with Dexion Southeast Asia to

make this plan into life. If capitalized and maintained properly, this state-of-the-art

facility would significantly increase the company’s cost-efficiency.

● 2021 largest SEC-approved IPO in the Philippines. Monde Nissin Corporation

attained SEC approval for a ₱63B-worth of IPO (Initial Public Offering), recorded

to be the largest IPO for 2021, which even went higher than all the IPOs in 2020

combined. Some skeptics found it ridiculous to go for this much IPO amid the

pandemic, but BSP Governor Benjamin Diokno countered that banks and other

financial institutions do not face trouble getting investments, albeit the economic

repercussions of the pandemic. The said company is set to start its offer period

on May 24-25, 2021, and the shares will be available for trade starting on June

07, 2021. With its maximum price, still subject to changes, established at ₱17.50,

many Filipino traders will be allowed to buy stocks at a financially experienced

company with excellent exposure to an international market. Aside from this, the

cited company shows no indication for bankruptcy for the next 5-10 years, thereby

making this investment option an ideal one for Filipinos, especially that 98% of

Filipino households purchase Monde Nissin products.

● Meat alternative market gaining popularity. Many consumers have

already been trying to shift into a meatless diet due to health and other personal

reasons. Well, this is an excellent piece of news for Monde Nissin, given that its

core business is mainly divided into two: the 1) Asia-Pacific Food and Beverage

business; and 2) Meat Alternatives business. With the significant and promising

growth opportunities from Quorn, a Monde Nissin-owned meat substitute product

brand, its management will capitalize a portion of the proceeds from the above-

mentioned IPO for the latter. Based primarily in the UK, Quorn has gained

popularity given its exciting and unique innovations for alternative meat products.

That said, the cited company is set “to build on its loyal customers and expand its

reach and product offerings to compete and win in the rapidly growing global meat

alternatives market,” Monde Nissin said in a statement.

● Public dependence for ready-to-eat food products with long store life.

Although there is a sector-wide decline in market growth due to the pandemic, the

food manufacturing industry remained resilient. To lessen the hassles of outside

travels, the public became highly dependent on ready-to-eat food products with long

storage life. Consequently, these products have turned into one of the few industries

that witnessed a surge in immense demand during the coronavirus pandemic. With

countries on lockdown and most people working from home, ready-to-cook food

products were flying off the shelves over the last few months. In fact, it is speculated

that this change in consumer behavior is likely to uplift the market significantly in

2021, when compared with 2019.

Threats

● Jack n’ Jill Philippines having a significant and growing presence in the

ASEAN market. Jack n’ Jill Philippines, under Universal Robina Corporation (URC),

is one of the leading competitors of Monde Nissin Corporation. Although Monde

Nissin has a significant international presence, URC has unquestionably proven

itself to be a trailblazer in the manufacturing industry, having a solid and loyal

consumer base. Aside from this, the company has also unswervingly showcased its

innovation and excellence through its groundbreaking products, wide distribution

network, and effective marketing. This is also evident in URC's formidable market

leadership in snack foods and beverages in the Philippines and ASEAN markets.

That said, Monde Nissin should not just focus on strengthening their western

presence but should also be cautious with their local market performance.

● Negative public sentiments regarding the health impact of “instant”

foods. The advent of technological improvements also comes with easy access

to information. This creates a wiser and smarter group of consumers initiating

public and media scrutiny over the health impact of instant foods. Instant noodles

are said to be high in sodium, fat and cholesterol, low in fiber, protein and vitamins

and contain monosodium glutamate and other harmful additives. Frequent

consumption of instant noodles has been reportedly associated with diseases

such as obesity, heart diseases and diabetes. Other products of the APAC BFB

Business such as biscuits, baked goods, yogurt drinks and culinary aids may also

be perceived as ultra-processed and unhealthy. These health concerns have

caused consumers to be aloof with the ready to-cook segment in the supermarket.

Moreover, the initiatives taken by various regulatory authorities, like ongoing

promotional efforts undertaken by the government to create awareness regarding

frozen foods and fish products, and other ready to cook foods, are driving the

market growth. This will also cause a lot of pressure on the company to prohibit

risks associated with the consumers' health concerns. If handled poorly, this would

injure their brand reputation.

● COVID-19 pandemic. The World Health Organization declared COVID-19

pandemic in March 2020, and as a response to this, all countries severely affected

by it have imposed stringent protocols, which have adversely taken a toll to the

worldwide economy. These restrictions are not expected to be taken down until

midyear 2021 and thus, many livelihoods were compromised. That said, consumers’

purchasing power has significantly declined as well and these do not remain isolated

to the Philippines and U.K., the company’s principal places of business, but also to

the other countries where the company conducts its business, such as Thailand, the

EU, and the United States. In addition, the pandemic has caused disruptions in

supply chains and routes to market and those of the company’s suppliers and/or

distributors, which may have resulted in an increase in their production and

distribution costs. Moreover, the company had to postpone and cancel specific

operating and development plans that were set out to be implemented for the

subsequent periods due to various restrictions caused by the pandemic. In turn, the

financial condition and results of operations of the company have been and may

continue to be substantially impacted by the COVID-19 pandemic.

● Intense and increasing competition in the ready to cook segment. A

supermarket tour will show consumers that there is a wide variety of choices when

it comes to the ready to cook segment to meet the increasing demands of the fast

paced lifestyle of this generation. But more than this, the pandemic has brought a

high influx of demand to these products. However, the massive demand for these

kinds of products also creates an intense and increasing competition within the

market, to which Monde Nissin should never fail to consider.

5. Strategic Group Mapping

Figure 1: A Perceptual Map for the Food Manufacturing Industry

Strategic group mapping is a method for showing the various strategic roles

that competing companies have in the market (QS Study, 2021). It is a significant

field in which businesses can clearly evaluate where they essentially require

improvements and, as a result, firms can perform well and win well. Shown above

is A Perceptual of Map Food Manufacturing Industry in which Monde Nissin

Corporation belongs to Quadrant having the criteria of Affordable and Nutritious.

6. Competitive Profile Matrix

Table 1: Competitive Profile Matrix of Monde Nissin Corporation

The CPM analysis reveals that Monde Nissin is second to the strongest

player in the industry with relative strengths in Marketing & Advertising, Brand

Reputation, Product Quality, Customer Loyalty, Price Competitiveness, Product

Variety, Location, and Facility. On the other hand, Rebisco Company prevails in

Customer Service and Strong Online Presence making it the top strongest player

in the industry. Universal Robina, on the flip side, is the weakest of them all, but

still manages to have relative strengths against its rivals. With that, the companies

should create their strategies according to their strengths and weaknesses and

improve their ratings in the most significant industry’s areas.

 MODULE THREE

1. Overview of the Company

Monde Nissin Corporation is a forerunner in the Philippine food

manufacturing industry, with a collection of iconic and well-known brands. The

Asia-Pacific Branded Food and Beverages (APAC BFB Business) and the close

alternative business (Meat Alternative Business), which includes the production,

marketing, and distribution of the Quorn and Cauldron meat alternatives products,

are the Group's two main businesses.

Monde Nissin Corporation has been giving Filipino consumers quality

products and excellent service since 1979. Our company has consistently been

among the top corporations in the Philippines and is considered as one of the

industry leaders in both noodles and biscuit product categories. Our brand names

include Nissin, Monde, Sky Flakes, Fita amongst others for the biscuits category,

and Lucky Me Instant Noodles, Lucky Me! Supreme Bowls and Lucky Me!

Specials for the noodles category.

In addition, the APAC BFB Business is divided into three categories: instant

noodles, biscuits, and other items such as drinks, baked goods, and culinary aids.

According to Nielsen (2020), the APAC BFB Business ranked first in retail market

volume in the Philippines in instant noodles and biscuits, as well as oyster sauce

and yogurt drinks, subcategories of the Others product segment. The Group's

instant noodles, biscuits, yogurt drinks, and oyster sauce accounted for 68.0 %,
30.5 %, 73.2 %, and 56.0 % of retail revenue market share in the Philippines in

2020, respectively (2020, Nielsen).

Significantly, Lucky Me for instant noodles, SkyFlakes, Fita, Nissin, and

M.Y. San Grahams for biscuits, Mama Sita's for cooking aids, and Dutch Mill for

yogurt drinks are examples of flagship brands that contribute to the APAC BFB

Business' market-leading position. On the other hand, according to the OC&C

survey, Quorn Foods is the market leader in the meat alternatives market in the

United Kingdom, with Quorn and Cauldron being the No. 1 and No. 3 brands with

28 % and % supermarket retail market share by volume in 2020.

Monde Nissin aspires to boost people's and the planet's well-being, as well

as to establish long-term strategies for food sustainability. These fundamental

principles are reflected in their product advancements and operations in order to

provide societal value and contribute to long-term growth. For instance, in an

unprecedented attempt to encourage well-being, the company introduced Lucky

Me! Wet pouch and cups, which have no artificial preservatives. To minimize palm

oil content, it also invested in the innovation and introduction of the first high-speed

airflow technology in one of its Lucky Me! product lines. MNC purchased Quorn

Foods in 2015, which manages the Meat Alternative Business with sustainability

at its core. In 2019, MNC also invested in NAMZ Pte. Ltd., a Singapore-based

food science company dedicated to developing a healthier world and people. The

group has also initiated policies to better utilize resources, drive toward zero-

waste-to-nature activities, and shift to a low-carbon economy. What's more, the

company considered its Meat Alternative Business to be a game-changing

advancement, with the mycoprotein technology acting as a sustainable source of

protein. According to a Carbon Trust (2018) report, the carbon, ground, and water

footprints of mycoprotein-based Quorn Mince are just 7%, 11%, and 8% of those

of beef, collectively. Similarly, the carbon, soil, and water footprints of

mycoprotein-based Quorn Pieces are just 29%, 36%, and 34% of those of

chicken, respectively.

The APAC BFB Business is managed by MNC, its entirely or majority-

owned subsidiaries, joint ventures, and formed alliances with other renowned

FMCG players. The group operates its Meat Alternative Business through Quorn

Foods under Quorn and Cauldron brands. The APAC BFB Business produced

P52,911 million in net sales for the financial year ended December 31, 2020,

relative to the Group's total net sales. Net sales in the APAC BFB Business were

primarily generated by MNC operations in the Philippines, which accounted for

94.9 %, 95% and 94.1% of total net sales in the APAC BFB Business for the

financial years ended December 31, 2018, 2019, and 2020. On the other side, for

the years ended December 31, 2018, 2019, and 2020, the Meat Alternative

Business produced net sales mostly from the United Kingdom and Europe,

accounting for 73.9 %, 75.0 %, and 76.2 percent of total net sales, while net sales

from Europe contributed for 14.4 %, 15.7 %, and 11.9 % of total net sales for each

of the same years.

For each of the years ended December 31, 2018, 2019, and 2020, the

Group’s net sales equaled to P63.4 billion, P65.5 billion and P67.9 billion, total

comprehensive income amounted to P2.4 billion, P5.9 billion and P6.7 billion and
consolidated EBITDA amounted to P11.4 billion, P14.2 billion and P15.6 billion.

For the same periods, the APAC BFB Business contributed 76.4%, 76.8% and

77.9% respectively, to the Group’s net sales while the Meat Alternative Business

contributed 23.6%, 23.2% AND 22.1% in each of the same years. For the years

ended December 31, 2018, 2019, and 2020, the APAC BFB Business contributed

78.7%, 86.7%, and 95.0%, to the group’s net income before income tax while the

Meat Alternative Business contributed 21.3%, 13.3% and 5.0% in each of the

same years. For the years ended December 31, 2018, 2019, 2020, the APAC BFB

Business contributed 83.4%, 85.7%, 85.3%, to the Group’s EBITDA while the

Meat Alternative Business contributed 16.6%, 14.3% and 14.7% in each of the

same years.

For more than 3 decades now, Monde Nissin has steadily and aggressively

risen to be the Philippines' leading food manufacturer and is currently carving its

niche as one of the most competitive players in the global industry. From its first

biscuit, Monde Nissin Corporation has evolved into a premier food company which

has been among the Philippines' top 100 companies since 2000. Monde Nissin

products are continuously striving to become the market leaders in their respective

categories.
 2.Organizational Chart

Figure 2: Organizational Chart of Monde Nissin Corporation

 The diagram above shows the internal structure of the Monde Nissin

Philippines or the relationship hierarchy in the organization. To help in protecting the

shareholders’ interests and in mediating conflicts between investors and management

the following serves as the authority in the organization: Mr. Hartono Kweefanus

(Chairman of the Board of directors), Mr. Hoediono Kweefanus (Vice Chairman of the

Board), Betty T. Ang (Director and President), Henry Soesanto (Director, Executive

Vice-President and CEO), Monica Darmono (Director and Treasurer), Delfin L.

Lazaro, Elaine Teo & Nina D. Aguas (Independent Director), and Kataline Darmono

(Director). Moreover, the following officers also serves a crucial role in the Monde

Nissin Corporation: David Nicol as the Chief Strategy Officer of the Company,

Tomasito D. Tiu as the Vice-President for Manufacturing of the Company, Samuel C.

Sih as National Sales Director of the Company, Marivic N. Cajucom-Uy as Chief

Sustainability Officer of the Company, Helen G. Tiu as the Company’s Chief Legal

Officer, Corporate Secretary, and Data Protection Officer, Jesse C. Teo as Chief

Finance Officer of the Company, Michael Stanley D. Tan as Supply Chain Director,

Michael J. Paska as Corporate Business Development and Investor Relations

Director, Melissa Chua Pabustan as Marketing Director, Daniel Teichert as Chief Risk

Officer, Jon Edmarc R. Castillo as the Chief Compliance Officer, Shiela Alarcio as the

Company’s Chief Internal Audit Executive, and Katherine C. Lee-Bacus as Assistant

Corporate Secretary.

3. Financial Analysis (Financial Ratios)

To analyze the fundamental aspects, and understand the financial

performance of the Monde Nissin Corporation derived from its financial

statements, we can consider financial analysis as one of the best ways to

consider. Also, it is an important metric to analyze the company’s operating

profitability, liquidity, leverage, etc.

Table 2: Financial Ratios of Monde Nissin Corporation

The manners by which the ratios are calculated are as follows:

Current Ratio= Current Assets/Current Liabilities

Quick Ratio= (Current receivables + cash and cash equivalents) / Current

Liabilities

Cash Ratio= Cash and cash equivalents / Current Liabilities

Operating cash flow ratio= Operating cash flow / current liabilities

Net Sales Growth= Current period net sales- prior period net sales / prior

period net sales

 Gross Profit Ratio= Gross Profit/ Net Sales

Return on Equity= Net Profit/ Shareholders’ Equity

Return on Assets Ratio= Net Income/ Total Assets

Asset turnover ratio = Net sales / Average total assets

Inventory turnover ratio = Cost of goods sold / Average inventory

Receivables turnover ratio = Net credit sales / Average accounts receivable

Asset to equity ratio =Total assets / Shareholder’s equity

Debt to equity ratio = Total liabilities / Shareholder’s equity

Interest coverage ratio = Operating income / Interest expenses

To measure the ability of a company to pay off its current obligations we

have to compute for the liquidity ratios: current ratio, quick ratio, cash ratio, and

operating cash flow ratio. Current ratio measures the extent of the number of

current assets to current liabilities. Generally, the ratio of 1 is considered to be

ideal for depicting that the company has sufficient current assets in order to repay

its current liabilities. The current ratio of Monde Nissin Corporation in the year

2019 is 1.02 while in the year 2020 it is 0.98. On the other hand, a quick ratio helps

in analyzing the company’s instant paying ability of its current obligations. The

results show that the quick ratio is 0.65 in the year 2020. Next, the cash ratio of

the company is 0.34 which illustrates the company’s ability to pay off short-term

liabilities with cash and cash equivalents. Moreover, the Operating cash flow ratio

is a measure of the number of times a company can pay off current liabilities with

the cash generated in a given period and the company’s operating cash flow ratio

is 0.54.
 To analyze the earning ability of the company it is necessary to solve for

the profitability ratios. First, net sales growth, it measures the percent growth in

the net sales of a business from one fiscal period to another. The table above

shows that the net sales increased to 11.9% in the year 2020. To compare the

gross profit of a company to its net sales to show how much profit a company

makes after paying its cost of goods sold, we will compute for the gross profit

margin (39%). Third, measures the return realized from shareholders’ equity of

the company. Lastly, to measure how efficiently a company is using its assets to

generate profit we solved for the return on assets which shows that there is an

increase in ratio from 6.8% in the year 2019 to 8.6% in the year 2020.

To analyze how efficiently the company has utilized its assets we computed

the turnover ratios specifically, the asset turnover ratio that measures a company’s

ability to generate sales from assets. Secondly, we will compute the assets

turnover ratio which measures how many times a company’s inventory is sold and

replaced over a given period. Lastly, the accounts receivable turnover ratio that

measures how many times a company can turn receivables into cash over a given

period.

To measure the amount of capital that comes from debt we have to solve

for the leverage ratios: the asset to equity ratio which shows the ratio between the

total assets of the company to the amount on which equity holders have a claim.

A ratio above 2 means that the company funds more assets by issuing debt than

by equity, which could be a riskier investment, debt to equity ratio calculates the
weight of total debt and financial liabilities against shareholders’ equity, and

interest coverage ratio shows how easily a company can pay its interest expenses.

4. Value Chain Analysis

Figure 3: Value Chain Analysis of Monde Nissin Corporation

4.1 Monde Nissin Primary Activities

a. Inbound Logistics. Monde Nissin’s inbound logistics processes include the

movement of raw materials, finished goods, and supplies from the company’s

manufacturing area or other distribution channel to a fulfillment center,

warehouse, or retail store depending on the business model. In this process,

materials management, sourcing, and warehouse receiving creates value.

b. Operations

i. Production planning. MNC operation managers determine how goods will

be produced, where production will take place, and how manufacturing

 facilities will be laid out during production planning. Once the production

process is underway, managers must continually schedule and monitor the

activities that make up that process. They must solicit and respond to

feedback and make adjustments where needed. At this stage, they also

oversee the purchasing of raw materials and the handling of inventories.

ii. Production control. Once the production process is underway, MNC

managers continually schedule and monitor the activities that make up that

process. They solicit and respond to feedback and make adjustments

where needed. At this stage, they also oversee the purchasing of raw

materials and the handling of inventories.

iii. Quality control. Finally, the Monde Nissin’s operations manager ensures

that goods are manufactured in accordance with specifications and that

quality standards are met. They apply “Good Manufacturing Practices”

(GMP) using high-tech machines to transform the raw materials into

finished products. Its manufacturing processes require a very intensive

care and monitoring using a computer aided machine that automatically

controls the machines and that there are only a few people present in most

of the production processes. The operations manager also ensures that

there are enough stocks to sustain the demand of products particularly the

noodle products.

In addition, MNC has a Power, Control and Information System Lead

Process Control Engineers that design, monitor the quality, safety, and efficiency

of control systems in manufacturing plants. The PCIS Lead also drives continuous
improvement in the electrical and control system aspect to improve processes and

cut costs. All of these operating activities create value to the firm and both internal

and external stakeholders.

c. Outbound Logistics. On the other hand, Monde Nissin’s outbound logistics

processes that adds value includes the warehousing of finished products

wherein the company uses a Dexion 808, a custom-built automated

earthquake-proof racking system by blocks. The racking system was 30

meters high and designed to maximize the warehouse space. It is built via

high-level and complex engineering of Dexion Company. Furthermore, the

delivery of end products often originating from its distribution or fulfillment

center in Santa Rosa, Laguna to its final destination such as grocery stores,

retail stores and end users also comprise the Monde Nissin’s value chain. In

addition, MNC prides itself with an efficient sales force that ensures

nationwide distribution. The outlets being served are as follows: wholesale,

distributors, sub-distributors, supermarkets, convenience stores, and

groceries. The distributors handle the orders of smaller retailers and sari-sari

stores.

d. Marketing & Sales. MNC’s marketing and sales efforts are identifiable for its

design, quality and innovation. Cookies and Biscuits are being advertised on

television and radio. Although prints and billboards are rarely used by MNCs

to communicate their products to consumers, the company maximises

television advertisements through commercials that include 30-second spots

for SkyFlakes, Fita, Bingo Peanut Butter, and Bingo Choco Mint. For the iconic
 noodle brand- Lucky Me! Pancit Canton, wellknown celebrities such as Luis

Manzano, Edu Manzano and Sharon Cuneta promote the brand also via TV

advertisements. The company delivers the best and ads possible to capture

and engage with the most relevant influencers. The company’s marketing

activities are an added value to the firm that effectively boost sales.

e. Services. Monde Nissin welcomes every opportunity to hear feedback to

ensure that only the best quality products and services are delivered. Truly,

businesses need mechanisms to respond to inquiries or requests for help from

existing and potential customers. Accordingly, Monde Nissin provides a

customer inquiry form that is available on its website. These customer

helplines are essential for delivering support, service, advice, and

information—and they add value to a business.

4.2 Monde Nissin Supporting Activities

a. Firm Infrastructure. MNC’s manufacturing processes requires a very

intensive care and monitoring using a computer aided machine that

automatically controls the machines and that there are only a few people

present in most of the production processes. For the safety of its employees,

they guaranteed that the production facilities they are working in were created

according to standards. The company also has an accounting management to

account for all the transactions and creation of financial statements of the

company. Lastly, to ensure quality, its plants have adapted a management

 system in line with ISO 22000:2005 that conforms to the international

standards for Food Safety Management Systems.

b. Human Resource Management. The company has 604 employees and is

known for recruiting top candidates with talents to get the best people working

for them. Aside from having the best workforce, Monde Nissin recognizes the

significance of building human resources in paving the way for growth and

development of the nation. In 2015, one hundred academically exceptional

students in the elementary and high school levels were granted financial aid.

For almost ten years, Monde Nissin has been extending support for its

employees’ children through scholarship grants. It is just one way for the

company to recognize importance for human resource development, by giving

value to its employees and their families.

c. Technology Development. The type of machines they use for the various

types of processes innovates the operation. The Monde Nissin partnered with

Dexion for a secure, 30m-high storage solution that met the requirements of a

seismic zone 4affected region. To withstand Seismic Zone 4 in the Philippines,

the Dexion 808 scales up to 30 meters high and was designed using complex

structural engineering. As per manufacturing operations, ingredients for the

noodles are being mixed together in a big mixing machine during the mixing

process. They use robots with sensors in their packaging section to include

condiments in the noodle pouches, and these, in turn, were able to produce

250 machine pouches per minute. By using high-technology machines that can
 operate quickly and efficiently, the company can produce bulks of finished

products that can sustain the unlimited demand of consumers.

d. Procurement. The company creates value by operating procurement process

including:1) Sourcing and contracting of direct materials 2) Dealing and

coordinating with suppliers 3) Provides and analyzes data and reports of

procurement progress to heads and internal customers 4) Creation of

purchase orders and organizing billing documents for audit 5)Procurement of

the right needs of the internal customer 6) Speed of service and compliance to

lead-time of sourcing of materials 7) Purchase order creation with complete

set of documents required

5. Strengths and Weaknesses

SWOT analysis of Monde Nissin analyses the company with its strengths,

weaknesses, opportunities & threats. In Monde Nissin SWOT Analysis, the

strengths and weaknesses are the internal factors whereas opportunities and

threats are the external factors.

SWOT Analysis is a proven management framework which enables a

company like Monde Nissin to benchmark its business & performance as

compared to the competitors and industry. Monde Nissin is one of the leading

companies in the food & beverages sector.

Strengths

Strengths are characteristics of the business or project that give it an

advantage over others. Monde Nissin has the following existing strengths in the

business:

● Monde Nissin is aligned with their goal and strategies that leads them

to sustaining the growth of their company. Monde Nissin has a certain and

long term goal for their company. Monde Nissin Corporation has been giving the

Filipino

Consumers high quality product and excellence for 29 years now. Since then,

Monde Nissin Corporation has been a consistent top player in the market. They

prioritize the good things, they always think positive, teamwork, and keep pushing

to be number one in the market, and with that, employees are challenged to learn

more. To make a technique in life, to enrich the knowledge and skills that they

have. To examine not just them but also the system around them, that’s why the

company stays ahead. They also value caring service where working with each

other is primary in their minds.

● The products offered are inexpensive and convenient. It gives people

a chance to experience the Monde Nissin products. Some people want to test out

the firm before deciding whether to buy one of the firm's higher-priced products.

Offering low-cost products is a way to showcase what the company does, to tempt

more people to browse and to ultimately buy. It can also get the name and brand

out to more people

– being visible to lots of ideal clients is one of the keys to business success. It’s

also easier for people to refer people to the company's products. People like to

help their friends and family out, and offering low-cost products there is demand

for, makes it easier for contacts to refer business to the firm.

● Lower distribution costs and exclusive sale contracts with retailers. The

company strives to be number one and stays ahead here in our country.

Therefore, their company is fulfilled and successful, they always prioritize the

needs of an individual that will provide the satisfaction of the consumers. This

implies that the company takes care of the corporate culture, attracts and attains

their great talents as the key to their success. Monde Nissin Corporation achieves

and customizes strategies to drive earnings and profit growth by providing lower

distribution costs and exclusive sale contracts with retailers.

● Continuously proposing new products based on technical

breakthroughs. Nissin Monde has a wide variety of product brands which are

best known for its quality taste and price that has grown into a household brand

enjoyed by almost every Filipino family. Consequently, Monde Nissin unceasingly

proposes new goods based on technical innovations to continue to provide

consumers a variety of innovative products.

● Worldwide presence of product through 29 plants in 11 countries. Monde

Nissin's subsidiaries include Monde M.Y. San, manufacturer of iconic biscuit

brands SkyFlakes and Fita; Monde Nissin Thailand; and Monde Nissin Australia,

comprising the businesses Black Swan, Nudie, and Menora Foods. The company

also distributes Kellogg's, Mama Sita's, and Dutch Mill in the Philippines. This
helps the company expand their business Worldwide. The Monde Nissin main

plant also has adapted a management system in line with ISO 22000:2005 to

conform to the international standards for Food Safety Management Systems. And

since 2000, Monde Nissin has been consistently included in the top 50

corporations in the Philippines based on gross revenues.

Monde Nissin is one of the leading companies with the highest market

share with a trusted image that has been deeply-rooted all over the world because

of its quality products. Thus, there are a number of loyal customers for Monde

Nissin. Most of the products manufactured by Monde Nissin are necessary for

daily living. So, it is a guarantee for the sales volume of Monde Nissin because of

its trusted image and excellent product.

In conclusion, Monde Nissin has a greater number of existing strengths and

advantages. Through identifying the strengths, one company can sustain it and

make it as their opportunity.

Weaknesses

Weaknesses are the counterpart of strengths and are characteristics of the

business that place the business or project at a disadvantage relative to others.

The present weaknesses of Monde Nissin Corp. are the following:

● Marketing in other countries is not as efficient. Powerful marketing is

what holds a company at the fore. Business organizations run strong and

impactful campaigns that blow a new fate into a company's wealth by letting them

collect the gratitude in highly moderate markets. Yet planning a marketing

campaign is something not done in a dinner table. Monde Nissin's inefficient

marketing in other countries weakens the firm as its performance is not as efficient

as the performance of Monde Nissin in the Philippines.

● Unhealthy Nissin products. Most people usually don’t read the nutrition

facts of the instant noodles. Some consumers just pick whatever instant noodles

they want and do not even mind how many fats, calories, proteins and

carbohydrates their body will take. For them, it won’t matter if it will cause them

illness or diseases. Usually, consumers are just looking at the price or the

expiration date of the food then just buy it. Hence, there are still a few people who

read the nutrition facts; those who are reducing weight or on a diet. People who

look first at the nutrition facts and see if it is high in fats, calories, carbohydrates

and protein, are those who are commonly known to be health conscious.

Therefore, certain products' unhealthy impression won't help the Monde Nissin

products be patronized.

Weak strategic planning would be the weakness of Monde Nissin.

Nowadays, more people are becoming healthier conscious. When they choose

food to eat, they would like to take health into consideration. So, they may have a

negative attitude towards the instant products produced by Monde Nissin.

Rebisco, as one of the major competitors of Monde Nissin, does not provide

products with unhealthy issues. So, there are some customers that Monde Nissin

did not target, and those are the health conscious ones. Therefore, as a successful

entrepreneur with these weaknesses, they must eliminate the following and

convert them into strengths.

 MODULE FOUR

1. Vision/Mission

A vision and mission statement are essential for an organization's strategic

strategy. It assists the employee in understanding the organization's mission and

the fundamental principles by which it is regulated. It is an essential component of

a company's planning because it serves to set targets, assign money, and ensure

that everyone is collaborating for shared goals and strategies, while creating a

road map for the future.

A mission statement is a concise explanation of the organization’s reason

for existence and expresses the organization's goal and general purpose (Open

Growth Content Team, 2020). The mission statement complements the vision by

communicating meaning and guidance to staff, clients, suppliers, and other

stakeholders. It also provides detailed information about what the organization

does, how it does, and who it does it for. Unlike the vision statement, it is short-

term in nature.

On the other side, a vision statement looks ahead and creates a mental

picture of the future situation that the organization hopes to achieve (SHRM,

2021). It is motivating and aspirational, and it should challenge the employees.

They are also timeless; even though the company's strategy changes, the vision

will always remain the same. A realistic, credible, and attractive vision statement

attracts commitment and energizes its people.

 The vision and mission statements serve as a focal point for bringing others

on board with the organization and ensuring that everyone is striving toward the

same goal. This aids in improving the organization's effectiveness and

competitiveness. Therefore, the recommended vision and mission were as

follows;

Vision

“We are a food company most admired for its agility and innovation.”

Recommendation:

Monde Nissin's vision is to be the most well-known and respected brand for

its versatility and innovation, using our industry expertise, consumer insights, and

innovative technology to create a future of food that is tastier, more nutritious, and

better for the environment.

Mission

“We are an organization of happy and creative people striving for excellence and

committed to uplift the lives of all whom we serve.”

Recommendation:

We are an organization committed to provide individuals with tasty and

high-quality products at affordable prices at any retail store around the world. We

are able to profitably grow with our latest technology where we aspire to improve
the wellbeing of people and the planet, and create sustainable solutions for food

security. We acknowledge that our employees are among the company’s greatest

resources, and are thus fully committed to uplifting the lives of each by promoting

development and welfare.

2. Annual Objectives

Objectives define strategies or implementation steps to attain the identified

goals. Unlike goals, objectives are specific, measurable, and have a defined

completion date and they are more specific and outline the “who, what, when,

where, and how” of reaching the goals (MichiganGov, 2021). Further, there are

two objectives mentioned in this strategic plan, strategic objectives and financial

objectives. Strategic objectives are the big-picture goals for the company and they

describe what the company will do to try to fulfill its mission while financial

objectives a financial objective is a specific goal or target of relating to the financial

performance, resources and structure of a business.

2.1 Strategic Objectives

● To improve the well-being of people and the planet, and create sustainable

solutions for food security.

Monde Nissin Corporation should constantly reinvent and invest in order to

stay ahead of evolving customer preferences. Over time, the Group has

progressed from a focus on taste alone, to focusing on a combination of taste and

individual and planetary health. Meanwhile, the Group should continue to seek
investments in brands, processes and emerging technologies that are compatible

with this objective.

● To make transition to a low-carbon value chain so that we can achieve net

zero emissions across its whole supply chain by 2050.

The Group should continue to find solutions to reduce its carbon footprint

in its operations and shifting more towards renewable energy. They should always

monitor their facilities' greenhouse gas emissions closely and should aim to

reduce greenhouse gas intensity across its value chain. This group also believes

that this will inspire other food brands in its sector to establish a sustainable and

thriving food system.

2.2 Financial Objectives

● To raise as much as ₱63 billion (approx. US$1.3 billion) through an Initial

Public Offering, in what could be largest ever first-time share sales in the

Philippine Stock Market.

The Monde Nissin Corporation plans to sell 3.6 billion shares at as much as

17.5 pesos each, according to a filing with the Philippine Securities and Exchange

Commission. It intends to use the funds to boost capacity in its Asia-Pacific sector,

which exports goods to over 50 countries, as well as to raise efficiency in its meat

alternative business as demand for alternatives rises due to health and

environmental concerns.
● To further leverage its existing footprint and drive cross-category growth,

structured revenue growth management will be done with reducing costs.

As the Group's product offering and footprint have grown over time,

numerous targeted initiatives such as flagship stores in new and general trade

have aided in the continued development of the Group's core segments and, in

some cases, gained market shares. This objective will be completed through clear

channel segmentation, reconsideration of price and pack balancing, channel pack

differentiation, trade terms optimization and return on.

 INTERNAL FACTOR EVALUATION (IFE) Matrix

INTERNAL STRENGTHS WEIGHT RATING WEIGHTED

SCORE

Goal Oriented 0.18 4 .72

Inexpensive Products 0.17 3 .51

Lower Distribution Cost 0.15 3 .45

Unceasingly Proposing New 0.15 4 .60

Products

Subsidiary Spread Worldwide 0.13 3 .39

INTERNAL WEAKNESSES

Inefficient Marketing in other 0.10 2 .20

Countries

Unhealthy Impression 0.12 2 .24

TOTAL WEIGHTED SCORE 1.00 3.11

 EXTERNAL FACTOR EVALUATION (EFE) MATRIX

THREATS
WEIGHTED
WEIGHT RATING
SCORE

Jack n’ Jill Philippines having a

significant and growing presence in 0.11 2 0.22

the ASEAN market.

Negative public sentiments

regarding the health impact of 0.16 1 0.16

“instant” foods.

COVID-19 pandemic.
0.09 1 0.09

Intense and increasing competition

in the ready to cook segment
0.15 2 0.30

OPPORTUNITIES

Partnership with Dexion Southeast

Asia for the construction of seismic- 0.07 4 0.28

proof warehouses.
2021 largest SEC-approved IPO in

the Philippines. 0.08 4 0.32

Meat alternative market gaining

popularity. 0.16 0.48

3

Public dependence for ready-to-eat

food products with long store life.

0.18 3 0.54

TOTAL WEIGHTED SCORE

1.00 2.39

INTERNAL-EXTERNAL (IE) MATRIX

3. Proposed Corporate Strategies

STRATEGY 1: Innovate, and Make Products Healthier.

BASIS: Monde Nissin has announced that it plans to use proceeds from its IPO

to fund innovation and boost its production capacity particularly in meat substitutes

amid growing demand for the product from health-conscious consumers. But

innovation isn't just about launching exciting new products or one-hit wonders.

True innovation is long-term innovation. Innovation in every aspect of your

business, from processes to employee training, to products and marketing.

Furthermore, MNC needs to create and nurture a culture that supports ongoing

innovation. And if the said company fails to innovate, the risk and opportunity will

be taken from other companies who are willing to take action.

Food and beverages company which is in the same category as MNC is a great

example of an industry sector doing just that. Nowadays, consumers are

demanding for healthier product options. In fact, a food and beverage survey

conducted by L.E.K. Consulting in 2018 found out that 93% of consumers want to

eat healthy at least some of the time, with 63% attempting to eat healthy most or

all of the time These findings are based on nearly 1,600 consumer responses. The

survey inquired about people's attitudes and preferences toward healthy,

environmentally friendly foods and beverages. L.E.K.'s report reached three major

conclusions: 1) Consumers search for nuanced claims that talk specific attributes

associated with fitness and wellness, ethics, and the environment 2) Consumers

want a broader range of benefits from their food 3) Consumers are willing to pay
more for food that provides the benefits that it claims to deliver. The survey also

revealed that the types of expected characteristics have shifted. Previously,

consumers were more likely to look for “less of...” — claims often associated with

weight management, such as sugar free, fat free, low salt, low carb, or low calorie.

Now, consumer expectations shifted toward attributes related to health and

wellness. The latest results show that most consumers want all-natural and

organic foods at least some of the time. However, the most in-demand foods are

those without artificial ingredients and preservatives. (Wiley,2019)

Healthy eating has come a long way. Now, it is high time for Monde Nissin

to grab the opportunity and address the needs of consumers for healthier and

sustainable yet delicious food options that enhance the well-being of consumers.

STRATEGY 2: Create effective digital marketing strategies and utilize the

opportunities it gives.

Basis: Among the company’s weaknesses was the inefficiency of its branches

from other countries in terms of marketing strategies. MNC’s marketing techniques

from other parts of the world cannot capture the wide market and one important

factor for it is how the team executes its marketing plans. According to Bishop

(2020), a marketing plan raises customer awareness and offers additional

knowledge about the company's goods or services. In addition, successful

marketing technique is perfectly aligned with the company's future marketing

strategies and objectives. Therefore,

Monde Nissin should formulate new marketing techniques to promote its products.

In line with this, it is a must that MNC utilize the trend of digital marketing. Most

people spend their time today on social media platforms where digital marketing

exists. Aside from the fact that it is cost-effective, it also allows the company to

target ideal customers (Storm,2020). Customers will always appreciate knowing

more about a particular product and what interests them. To become successful

in marketing, Monde Nissin has to be careful, sensitive, and helpful to consumers.

STRATEGY 3: Build Customer Loyalty with Clear Road Maps to Win the Initial

Public Offering

Going public is one the biggest decisions that Monde Nissin has ever made.

It is a tremendous moment for the company, with far-reaching implications for

everything from its organization to its day-to-day operations, which necessitates a

massive transformation effort and thorough planning and preparation. In fact, the

planned P

72.5 Billion initial public offering was already approved by Securities and

Exchange Commission (SEC) and was being foreseen to be the largest initial

public offering (IPO) in Philippine stock market history. Although it was still subject

to further approval from the Philippine Stock Exchange (PSE), Monde Nissin aims

to run the public offering from May 17 to 21, and list on the PSE on May 31

(Dumlao-Abadilla, 2021).

Accordingly, a huge preparation is needed by Monde Nissin to make sure

that the target amount of 63 billion pesos ($1.3 billion) through the sale of 3.6
billion common shares at a maximum price of 17.50 pesos a piece will be hit. That

is possible to implement strategies to win the initial IPO particularly building

customer loyalty with clear roadmaps.

The value included in IPO prices includes the establishment of long-term

relationships through professional services, support, and ongoing road map

updates. Therefore, Monde Nissin should provide audiences with concepts that

are both intellectually challenging and easily digestible. These investors must be

kept informed with simple messages delivered in easily digestible formats. To

foster long-term relationships, include information about all expansions, future

plans and long-term company goals for the next 10 years. This strategy will

capture the trust of possible investors, will provide assurance and will guide them

all throughout their investment journey in MNC.

 MODULE FIVE

1. Functional Strategy

Each functional area in the value chain, such as marketing, operations, finance,

and human resources adopts a strategy or operational plan to execute the overall

strategic or corporate strategy/vision in order to meet organizational goals. According

to businessjargons.com (2021), it contributes to the overall corporate plan by

presenting insights on business activity management and describes how functional

administrators can act in order to produce better outcomes. The Monde Nissin

Corporation can apply the suggested functional strategies;

1.1 Finance

One of the financial strategies of the Monde Nissin Corporation is to raise funds

needed to expand globally. Thus, in order to achieve this the Board shall consider the

funding option of issuing new shares to increase the number of common stocks being

traded in the public market. Through the issuance of new equity or equity-linked

securities MNC will be able to accumulate additional funds needed to expand their

business and operations. Monde Nissin plans to issue about 3.6 billion primary shares

and up to 540 million over-allotment option shares at a price of up to P17.50 per share

which a portion of the proceeds will be used to fund capital expenditures, redeem the

Arran convertible note, and repay commercial bank loans.

1.2 Marketing

It is virtually irrefutable that Monde Nissin brand names are deemed as staple

food of every Filipino household, especially during the pandemic. This came to life not

just because of their premium quality products but also because of their effective

marketing strategies. In fact, the company truly understands the importance and

effectiveness of marketing activities to its market share expansion and revenue

growth. With this regard, the marketing division of the company should continue to

utilize various channels and customer touch points, such as advertisement on

television, radio programs, social media platforms like YouTube, Facebook,

Instagram, and Twitter, its website, program sponsorships, billboards, and brand

activation road shows, as this strategy clearly aided in their brand awareness. Aside

from this, the said division should also provide customer touch points at the purchase

stage like in-store promotions and loyalty programs to induce more purchases from

their end consumers. However, the Monde Nissin has noticeably little to nothing social

media presence despite their efforts to create one. This is crucial given that most

consumers lurk on social platforms as part of their leisure time activities. That said,

the company should capitalize on this by further strengthening their partnership with

celebrities and other key influencers for media or online collaborations and events.

On the other hand, Monde Nissin Corporation believes that product

differentiation and brand loyalty are by-products of its marketing and image-building

efforts, while consumer brand preferences are the collective outcome of exposure to

their brands over an extended period. Conversely, the company reported that the

result of these marketing efforts might be deferred due to the risks brought by the
media and public scrutiny over the health impacts of continuous consumption of their

products, specifically in their instant noodle brands. That said, the marketing division

of the company should focus on strengthening their branding on other products that

have less health concerns given that their Lucky Me! campaign has already been

successful, as previously discussed in the earlier chapters. This is highly applicable

for their Meat Alternative Business especially now that their brand, Quorn, is

significantly gaining popularity in the western region of the world, specifically in the

U.K. market, due to its innovative stand in their vegan products. Having said this, the

marketing division should emphasize the taste, health benefits, and sustainability of

their products to effectively differentiate them among their related product line.

1.3 Operations

MNC shall expand warehouse facility to accommodate more inventory and

supplies since the demand for almost all their products is continuously increasing

especially today in the time of pandemic. Furthermore, the company should also

follow guiding principles to keep their workers safe while preparing for increased

uncertainty and long lasting changes to the work environment. As the COVID-19

pandemic sweeps across the globe, manufacturing organizations face significant

operational challenges including Monde Nissin Incorporation. Some companies

have temporarily shuttered factories in response to government restrictions or

falling demand, but MNC is facing significant increases in demand for essential

supplies. By expanding the warehouse facility and functionality, it will help the

company manage goods and space more effectively, reduce costs and waste,

and gain control over warehouse operations. With access to real-time, accurate
inventory data, the warehouse professionals can also save time locating items or

performing physical inventories, sales representatives can keep tabs on stock

availability, and buyers can maintain optimum stock levels while minimizing

carrying costs. In addition, every company's top priority should be to keep workers

secure in an environment where outbreaks are a constant danger. MNC may do

this by implementing a thorough set of policies and guidelines, which could include

improved hygiene procedures, the provision of additional personal protective

equipment (PPE) as required, physical distancing, and changes to existing

governance and behaviors. In this way, as operations keep running, the

employees, at the same time will remain safe at work.

1.4 Human Resource

Monde Nissin Corporation strives to make every human resource a sustainable

competitive advantage. They are looking for people who are passionate and

committed to make a difference. Their shared adventure through the company is to

aspire to improve the wellbeing of people and the planet, and create sustainable food

solutions for food security.

Looking ahead to the future, Monde Nissin intends to step up human resource

development measures within the group, including running a selection-based in-house

university program, promoting diversity, and reinforcing overseas trainee systems.

They are also planning to increase management human resources by recruiting from

outside the group, in an effort to accelerate global management.

 MODULE SIX

BALANCED SCORECARD

Area of Objectives Measure or Target Time Primary

Expectation Responsible
Customers

Increase net sales in 4th Quarter of Marco

Re-establish key retail the meat alternative 2021 Bertacca
customer relationship in market by 3.5%
the company’s meat
alternative business

Conduct consumer Drive category growth 2022 Melissa Chua

research to continuously and retail market Pabustan
identify and cater dynamic share in branded
changes to consumer consumer segments
preferences such as instant
noodles, biscuits, and
others, up to 70%,
35%, and 55%,
respectively
Employ discount-incentive Expand national and 1st Quarter of Michael
schemes (e.g. 15-day local distribution 2025 Stanley D.
credit period) to its reseller network by reaching Tan
customers (i.e., up to more than
supermarkets, groceries, 250,000 outlets
and wholesalers) to
initiate them towards
achieving their key role of
increasing numeric
distribution into sari-sari
stores even in
underdeveloped and
unprofitable areas
Managers/Employees

Establish a provident fund Contribute monthly to 1st quarter of Jesse C. Teo

with all employees the fund at 1-20% of 2023
the employee’s basic
salary to match the
employee contribution
up to 3%

Prioritize the health and Establish skeletal 2021 Personnel

welfare of the employees workforce and work and Admin
from home officer
arrangements

Invest to employee 30% of employees 1st quarter of Luchi Vitales

training and development holding managerial 2025
to retain a competent positions must have
workforce doctor’s degree in
business
administration
 MODULE SEVEN

FINANCIAL PROJECTION
MONDE NISSIN CORPORATION
STATEMENT OF FINANCIAL POSITION
MONDE NISSIN CORPORATION
INCOME STATEMENT

The tables above show Monde Nissin Corporation's mid-term financial

projections for the next three years. A financial projection is a forecast of a company's,

organization's, or country's future revenues and expenses. It will typically take into
account both internal information and projections of the development of external

market factors. (Sullivan, nd). The researchers used the three-year weighted moving

average method of forecasting to project figures for the first year (2020) in order to

come up with the most realistic projection possible that could be most useful in making

economic decisions. The financial data was multiplied to the corresponding weights

using this method, with the most recent years receiving the highest weight and the

earliest receiving the lowest. The total was then divided by the total number of weights

to generate a financial projection. The weighted moving average method was used

because it is thought to be the most realistic forecasting method, particularly for mid

to long term forecasting. Afterwards, the researchers projected figures for the next two

years using 8% and 10%, respectively.

 Appendix I

FINANCIAL STATEMENTS
REFERENCES:

ANC 24/7. (2021, March 5). Monde Nissin files for P63-B IPO [Video].
https://www.youtube.com/watch?v=QFXwRe0LVgk

Bishop, S. (2020, September). The Consequences of Poor Marketing.

https://www.milleradagency.com/the-consequences-of-poor-marketing/

Burgos, J. (2021, April 26). Philippines’ Biggest IPO Could Catapult Instant Noodle
Tycoon Into Billionaire Ranks.
https://www.forbes.com/sites/jonathanburgos/2021/04/26/philippines-biggest-
ipocould-catapult-instant-noodle-tycoon-into-billionaire-ranks/?sh=227c859b1a85

Chips and Crips. (n.d.). Universal Robina: Jack ‘n Jill. The wonderful world of chips
and crisps 2020. https://www.chipsandcrisps.com/jack-n-jill.html

Del Prado, F. L. & Rosellon, M. A. (2017). Technology and knowledge transfers in

production networks: Case study on Philippine food manufacturing firms.
Philippine Institute for Development Studies, PIDS Discussion Paper Series, No.
2017-08.
https://www.econstor.eu/bitstream/10419/173585/1/pidsdps1708_rev.pdf

Dexion Group. (2016, June 16). Dexion Case Study: Monde Nissin Corporation,
Philippines - Designed for Seismic Waves [Video].
https://www.youtube.com/watch?v=Ak1KXgzYQXI

Dumlao-Abadilla, D. (2021, April). P72.45-B Monde Nissin IPO gets SEC nod.
https://business.inquirer.net/321453/p72-45-b-monde-nissin-ipo-gets-sec-nod

First Research. (2021, Feb 15). Food Manufacturing Industry Profile.

https://www.firstresearch.com/industryanalysis/First_Research_Industry_Profile_Sa
mple.pdf

Functions and Frameworks. (2011, July 15). Case Analysis: Monde Biscuit - Sales
Promotion Plan http://www.niccotan.com/2011/07/case-analysis-monde-
biscuitsales.html?m=1

Lew, E. (2021, April 26). Why meat-free alternative brand quorn is gaining
popularity. Epicure: Life’s refinements.
https://www.epicureasia.com/dining/16998/why-go-forplant-based-food-2/
Martinez, M. (2014, December). A Case Analysis on Biscuits - Monde Nissin
Corporation.https://marvzmartinez.wordpress.com/2014/12/02/a-case-analysis-
onbiscuits-monde-nissin-corporation/

My Plan. (2021, January 20). Food Manufacturing.

https://www.myplan.com/careers/industries/food-manufacturing/summary-08.07.html

OpenGrowth Content Team. (2020). Mission and Vision- Why is it important?.

https://www.opengrowth.com/article/mission-and-vision-why-is-it-important

Philippine Stock Exchange (2021). Industry Financial Ratios.

https://ph.investing.com/equities/phil-stk-exch-ratios

QS Study. (2021). Strategic group mapping.

https://qsstudy.com/businessstudies/strategic-group-mapping

Society for Human Resource Management. (2021). What is the difference between
mission, vision and values statements?
https://www.shrm.org/resourcesandtools/tools-and-samples/

Sullivan, Megan. Nd. Understanding financial Projections and Forecasting.

https://quickbooks.intuit.com/r/forecasting/understanding-financial-projections-
forecasting/

Storm, M. (2020, April). The Benefits of Digital Marketing: 6 Advantages of Online

Advertising. https://www.webfx.com/blog/marketing/benefits-of-digital-marketing/

Wikipedia. (n.d.). Food Industry. https://en.wikipedia.org/wiki/Food_industry

Wiley C. (2019, March). Consumers Say They Want To Eat

Healthy.https://foodindustryexecutive.com/2019/03/consumers-say-they-want-to-
eathealthy/