Mang Inasal, one of the fastest growing restaurant chains in the Philippines, is proposing to expand its business to Thailand. It established nearly 500 branches nationwide in the Philippines since 2003. The document discusses Thailand's geography, economy, politics and labor laws to provide context and justification for expanding Mang Inasal's business there. Key reasons include Thailand's population and GDP, status as a food-loving country, similar currency to Philippines, and abundant sea and land resources for sourcing supplies at affordable prices. The proposed business plans to provide excellent Filipino cuisine at value prices with a fun atmosphere to cater to Thailand's changing eating lifestyle and lack of home cooking appliances in many residences.
3. Executive Summary
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Mang Inasal is one of the fastest growing restaurant chain in
the Philippines. In fact, Mang Inasal have already established
nearly 500 branches nationwide in various malls and
establishments, since the first restaurant was established in
the car park of a shopping mall in Iloilo in 2003 by a 26 years
old Ilonggo entrepreneur, Mr. Edgar “Injap” Sia. And in 2016,
it was acquired by Jollibee Foods Corporation.
4. While Filipinos are admittedly natural food enthusiasts, there has got to
be an ultimate X-factor that keeps the people coming. Is it the tasty
food? The cheap prices? Or perhaps all of the above? We are,
therefore, motivated and encouraged to introduce Filipino Cuisine
outside our homeland.
Objectives to expand business to Thailand:
1. To promote Philippine products, i.e. Filipino Cuisine in Thailand;
2. To boost Philippine – Thailand trade and industry, through
store’s ambiance.
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5. Thailand – Geographical
Capital Bangkok
Location Located in both the eastern and northern hemispheres and
positioned in Southeast Asia
Land Area 510,890 square kilometers
Water Area 2,230 square kilometers of water
Thailand Borders Burma, Cambodia, Malaysia, Lao People's Democratic Republic.
Citizen Thai or Thais, also know as Siamese
Populations 69,306,724 (as of July 3, 2019)
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Thailand – Geographical
Population Statistics • 0.9% of the total world population
• ranks number 20 in the list of countries by population
• population density in Thailand is 136 per Km2 (351 people
per mi2).
Climate Tropical monsoon climate
• Rainy or southwest monsoon (mid-May to mid-October)
• Winter or northeast monsoon (mid-October to mid-
February)
• Summer or pre-monsoon (mid-February to mid-May)
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Thailand – Geographical
Education May through to March (12 years free basic education)
• 6 years of “Prathom” (primary education, P1 to P6)
• 6 years of “Mattayom” (secondary education, M1 to M6).
Language Thai or Siamese language
Religion Buddhist (approximately 95% of the population)
8. Thailand – Economic Aspect
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Agricultural Sector
• Rice is the most important crop in the country.
• Thailand is the world's third-largest seafood exporter
• It is a major exporter of shrimp. Other crops include coconuts, corn, rubber,
soybeans, sugarcane and tapioca.
Industrial Sector
• Manufacturing and industry have played a significant role in Thailand’s
economic growth such as Electrical Appliances, Electronics, Automobile,
Motorcycles, Pulp, Paper and Print Media, Pulp, Paper and Print Media,
Pharmaceuticals and more.
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Thailand –Economic Aspect
Service Sector
The National Economic and Social Development Board of Thailand defines the service sector as
all economic activities except for those in the agriculture, manufacturing, and mining and
quarrying sectors
Tourism
• Tourism in Thailand contributes a larger share of GDP than any other country in Asia.
• Bangkok is named by influential US travel magazine Travel + Leisure as the world's
best city.
Banking and finance
• In 2007 there were three state-owned commercial banks, five state-owned specialized
banks, fifteen Thai commercial banks, and seventeen foreign banks in Thailand.
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Thailand Gross Domestic Product (GDP) and Gross National Product (GNP) Report
The GDP in Thailand was worth 504.99 billion US dollars in 2018. The GDP value of Thailand
represents 0.81 percent of the world economy. GDP in Thailand averaged 129.23 USD Billion from
1960 until 2018, reaching an all time high of 504.99 USD Billion in 2018 and a record low of 2.76
USD Billion in 1960.
The GNP in Thailand increased to 2862899 THB Billion in the first quarter of 2019 from 2758637 THB
Billion in the fourth quarter of 2018. GNP in Thailand averaged 1791927.67 THB Billion from 1993 until
2019, reaching an all time high of 2862899 THB Billion in the first quarter of 2019 and a record low of
1042725 THB Billion in the second quarter of 1993.
11. Thailand – Political Aspect
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Government
Government Thailand Philippines
Government type Constitutional Monarchy Republic
Chief of state
(Executive branch)
King President and Vice President
Head of government
(Executive branch)
Prime Minister and Deputy Prime Minister President
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Government
Government Thailand Philippines
Judicial branch Constitutional Court, Supreme Court of
Justice, and Supreme Administrative Court;
all judges are appointed by the king;
the king's appointments to the Constitutional
Court are made upon the advice of the
Senate;
the nine Constitutional Court judges are drawn
from the Supreme Court of Justice and
Supreme Administrative Court as well as from
among substantive experts in law and social
sciences outside the judiciary
Supreme Court (15 justices
are appointed by the
president on the
recommendation of the
Judicial and Bar Council and
serve until 70 years of age);
Court of Appeals; Sandigan-
bayan (special court for
hearing corruption cases of
government officials)
Political parties and
leaders
Yes Yes
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Government
Government Thailand Philippines
Legislative branch bicameral National Assembly
or Rathasapha consisted of
the Senate or Wuthisapha
Bicameral Congress or Kongreso consists of the Senate or
Senado (24 seats - one-half elected every three years;
members elected at large by popular vote to serve six-year
terms) and the House of Representatives;
the House has 287 seats including 230 members in one
tier representing districts and 57 sectoral party-list
members in a second tier representing special minorities
elected on the basis of one seat for every 2% of the total
vote but with each party limited to three seats;
a party represented in one tier may not hold seats in the
other tier; all House members are elected by popular vote
to serve three-year terms
Suffrage 18 years of age; universal 18 years of age; universal and compulsory
14. Thailand – Political Aspect
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Labor Law
Thailand’s codified employment laws, administered by the Department of Labor, Protection and
Welfare, stipulate working conditions such as maximum work hours, holidays, sick leave,
minimum wage and severance pay.
Various sources of employment laws in Thailand:
1. the Civil Commercial Code;
2. the Labour Relations Act 1975;
3. the Act on Establishment of the Labour Court Labour
4. the Social Security Act 1990;
5. the Workmen Compensation Act 1994;
6. the Labour Protection Act 1998;
7. Dispute Procedure 1979;
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Thailand – Political Aspect
Working
Hours
• shall not exceed 8 hours per day and no more than 48 hours per week
• 42 hours per week exceptions for certain occupations like for work deemed by law
to be hazardous.
Minimum Pay • minimum rate is between THB 308-330 per day based on the location of work)
OverTime
Pay
• For each hour of work over the maximum working day = minimum rate of one and
a half times the hourly wage of a normal working day
• minimum of two times the hourly wage if the employee works during holidays
Leave • minimum of one day off per week
• At 1st year of employment, minimum of six paid personal leave days and carry for
the next 2 years if not used.
• 30 days of sick leave per year
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Thailand – Political Aspect
Holidays • Weekly holiday. At least 1 day / week by the same distance not exceeding 6 days.
• Traditional holiday. Not less than 13 days per year overall national Labor Day.
Based on annual holidays.
• Annual holiday. At least 6 working days per year for employees who work
consecutive 1-year anniversary may be agreed in advance and move accumulated
annual vacation.
Maternity
Leave
• 90 days of maternity leave including any holidays in that period
• Full pay for 45 days from the employer and 45 days from the Social Welfare Fund
Paternity
leave
• currently no rights for working fathers in caring for newborns in the private sector,
whereas the public sector allows fathers 15 days to care for their newborn babies.
• The Labour Protection Act B.E. 2541 does not recognise parental leave and
custody rights.
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Thailand – Political Aspect
Absences/ No
pay Leave
• Employee may be entitled to leave for necessary personal business with or without
pay, depending on the applicable work rules of the employer
• The National Legislative Assembly of Thailand passed an amendment to the LPA in
December 2018, allowing employees to take a minimum of three paid personal
business leave days per annum.
Probationary • The probation period as 119 days or less because the probationary employee’s
employment can be terminated within the probation period of 119 days without any
severance pay under Thai law.
Termination
of
Employment
• Under the Labor Protection Act, fixed term employment agreements will
automatically terminate at the end of the fixed period, without the need to give prior
notice.
• Instant Dismissal - An employer may instantly terminate an employee, without
notice or severance pay.
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Proposed Business – MANG INASAL
Mang Inasal targets Thailand to launch its first international ventures. Since,
Thais love to eat in groups, Thai eating lifestyle is changing rapidly towards
Western foods and there are no kitchen appliances such as stoves and ovens in
the majority of apartments and condominiums in Thailand.
Moreover, we chose Thailand because it is food-loving country; besides being
our neighbor country, our currency rate does not differ much; and supplies
from sea and land resources are bountiful. Easier sourcing of supplies will
provide us the benefit to make our food price more affordable to all class
inhabitants of Thailand. Mang Inasal will provide a combination of excellent food
at value pricing, with fun packaging and atmosphere.
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LOCATION
Mang Inasal is one of the fastest and growing restaurant chain and locally owned fast
food restaurant in the Philippines that will be soon, positioned as an international
franchise through our creative approach to the company's image and detail
presentation. We aim to provide varieties of notable and affordable Filipino authentic
cuisine that will cater to all ages. Thus, location along Sukhumvit Road in Bangkok
would be best, because there are many restaurants, alongside and is few blocks away
from malls, hotels and market place.
Sukhumvit is an exclusive district in Bangkok that can be accessed through BTS train.
It is home to fancy apartments, villas, bars and clubs. Popular among foreign
visitors and expats, it becomes more and more a Thai residential neighborhood as
you follow the road southeast.
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MANG INASAL – Proposed Business
Operation
Store opening will be from 10:00 AM – 1:00 PM and 5:00 PM to 11:00 PM
from Monday to Sunday. Extension or earlier closing time may be called for
in exceptional/special cases. One shifting of service work force.
Store Size
The Mang Inasal store have at least 100 sqm floor area, practically for lower
lease cost and 20 sqm area would be the kitchen area.
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MANG INASAL – Proposed Business
Approximately, the proposed business we will be needing a total of 11 staff that
will work in the kitchen, front line and in the dining area. We prefer local staff and
few Filipino to initially fill the positions. Since all of the food to be offered are
original Filipino dishes, there will be a Filipino Head Cook to assure the
authenticity of the Filipino taste dishes.
Work Force (Personnel/Staff)
Position No. of Staff Nationality
Managers 1 Filipino
Cook 4 1 Filipino HC, 3 Thai Cook
Service Crew 5 All Locals (Thai)
Security Guard 1 Local (Thai)
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MANG INASAL – Products and Services
We offer wider range of food in our menu. Listed below are the
authentic Inasal cuisine that we will introduced to Thailand market
at an affordable price. Please be noted that the price are
converted with the current exchange rate of 1 PHP is to 0.6052
THB and is subject to change.
MENU
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COMPETITIVE ADVANTAGE
Unique Homey Dining Experience
Mang Inasal is the right place to an extraordinary homey dining experience. It serves
Filipino gastronomic delights and delicious Filipino offerings made with the warmth and
care of a family—something that will definitely make you crave for your favorite dishes
even more.
Offers Authentic Filipino Delights
Mang Inasal serves delicious dishes, but still keeping the local cuisines’ luscious taste.
Mang Inasal offers various kinds of BBQ Filipino Cuisines like chicken and pork barbeque,
as their main product, as well as other Filipino favorites serve in banana leaves with
unlimited rice offer for “Kanin Lovers” and soup.
Another thing is that, the availability of condiments
on each table: soy sauce, chicken oil and vinegar.
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COMPETITIVE ADVANTAGE
Offers Affordable Filipino Cuisine
Mang Inasal offers affordable foods for everyone, especially for group and family
gatherings as it promotes bonding and love for food. For a limited budget, you’ll
be surprised at how much you can eat. Everyone can experience this unique
homey dining place that offers gastronomic delights with a nice atmosphere for
its low costly and friendly price. Because of its tasty cuisine, your money spent
will be satisfactorily guaranteed.
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Opportunities for International Trade (SWOT)
1. Thailand has a lot of tourists
2. TV Food Channels
3. Food similarities
4. Easy access of food supplies
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Potential Threats
Difference in culture
Thailand has quite a mix of cultures which has led to a complex way of thinking. It is a
collectivist society which means the needs of the group are placed over those of the
individual, and subtle and indirect communications are valued during negotiations.
Different consumer preferences and tastes
As we know, not all consumers have the same taste and preferences. Given the fact
that the taste of our food might be new to them, they may or may not like it. We should
also consider that some Thai foods are better than ours.
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Potential Threats
Difference in language communication
Language barriers can be a major disadvantage for us since Thai people has its own
various languages. Venturing business into their country, we should be required to get
familiar with their mother language in order to understand each other and avoid
misunderstanding.
Eating lifestyle changes rapidly
Change is inevitable and everyone wants to be “in” with current trend. Nowadays,
healthy lifestyle is slowly gaining awareness. For this reason, food trends tends to be
going in accordance with proper food diet.
This might complicate our cravings for
unlimited rice and sweet desserts.
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STRATEGIC ADJUSTMENT/IMPROVEMENT
1. Promote Filipino cuisines and to be tried and tested by Thai people and its
tourists by offering unlimited soup together with the best seller chicken and port
BBQ, Sisig and many more.
2. Thai people love spicy foods, and we have that in our menu.
3. Mang Inasal will be using “Dahon Ng Saging” as plates so that it will be more
comfortable to Thai consumers and it is also an eco-friendly environment
campaign.
4. We also plan to make the “Unlimited Rice” a trend and continue offering the unli
rice since country is also called the “rice bowl of Asia”, as Thailand is the
second main exporter of rice in the world and 49% of the labour market are
present in the agricultural industry.
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STRATEGIC ADJUSTMENT/IMPROVEMENT
5. Due to the climate of Thailand which is the same as the Philippines, the best
selling cold desert “Halo-Halo” and Crema de Leche of Mang Inasal will be best
to lessen up the heat of the hot weather. Thai people love spicy foods, and we
have that in our menu.
6. We plan to establish it in Sukhmunvit Road, Bangkok, Thailand because of
because of its strategic location.
7. The menu of Mang Inasal will have Tagalog, English and Siamese Thai language
so that locals and other tourist people can understand of the food that is offered
in our menu.Mang Inasal offers an affordable price that is pocket-friendly.
8. A warm and friendlyinterior design and facilities would help people feel more
comfortable that they might stay longer and order for more food.
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CONCLUSION
The Mang Inasal restaurant has the all the credentials to expand and
operate in foreign land like Thailand. Based on the studies and
researches we have collected, the culture, the social, climate, food
and environment of the country shows comparable similarities with the
Philippines. Food lovers like local Thais and expatriates would surely
patronize the authentic Filipino cuisine offered at an affordable prize
that will cater to all social class. We have a great opportunity to
promote Mangi inasal restaurant with our unique food and way of
serving Filipino cuisine.