V.

COMPANY ANALYSIS

A. HUMAN RESOURCES AREA

As of December 31, 2022, the number of permanent full employees engaged

in the Company’s respective businesses is 13,510 and are deployed as
follows:

BUSINESS COMPANY OR DIVISION NUMBER

BCF, Packaging Division,

CCPI, URCI, 9, 812
Branded consumer foods
URCCCI, NURC, HURC,
CURC and
DURBI

Agro-industrial and
commodity foods
Drugs and Disinfectants 599
Sugar 1, 171
Floor 409
Distillery and Cogeneration 661
Corporate 858
TOTAL 13, 510

For most of the companies and operating divisions, collective

bargaining agreements between the relevant representatives of the
employees’ union and the subsidiary or divisions are in effect. The collective
bargaining agreements generally cover a five-year term with a right to
renegotiate the economic provisions of the agreement after three years, and
contain provisions for annual salary increases, health and insurance benefits,
and closed-shop arrangements. The collective bargaining agreements are
with 26 different unions. For the year 2022, three (3) collective bargaining
agreements were signed and concluded with the labor unions which are as
follows: URC SURE - CARSUMCO Rank &File Union (Philippine Agricultural
Commercial and Industrial Workers’ Union – Trade Union Congress of the
Philippines), URC SURE - CARSUMCO Supervisory Union (National
Congress of Unions in the Sugar Industry of the Philippines – Trade Union
Congress of the Philippines, and URC BCFG Rank & File Union Chapter
(Consolidated Workers Union). The Company believes that good labor
relations generally exist throughout the Company’s subsidiaries and operating
divisions.
 The Company has a funded, noncontributory defined benefit retirement
plan covering all of the regular employees of URC. The plan provides
retirement, separation, disability and death benefits to its members. The

Company, however, reserves the right to change the rate and amounts of its
contribution at any time on account of business necessity or adverse
economic conditions. The funds of the plan are administered and managed by
the trustees. Retirement cost charged to operations, including net interest
cost, amounted to P267 million, P350 million, and P263 million in 2022, 2021,
and 2020, respectively.

B. MARKETING AREA

B1. Marketing, Sales, and Distribution

The Company has developed an effective nationwide distribution chain and

sales network that it believes provide its competitive advantage. The
Company sells its branded food products primarily to supermarkets, as well as
directly to top wholesalers, large convenience stores, large scale trading
companies and regional distributors, which in turn sell its products to other
small retailers and down line markets. The URC branded consumer food
products are distributed directly to over 300,000 outlets in the Philippines and
sold through various retailers and regional distributors.

The branded consumer food products are generally sold by the Company
from salesmen to wholesalers or supermarkets, and regional distributors to
small retail outlets. 15 to 30-day credit terms are extended to wholesalers,
supermarkets and regional distributors. The Company believes that its
emphasis on marketing, product innovation and quality, and strong brand
equity has played a key role in its success in achieving leading market shares
in the different categories where it competes. In particular, the Company
launched “Jack ‘n Jill” as a master umbrella brand for all its snack food
products in order to enhance customer recognition. the Company allots a
substantial amount of its expenditures to support advertising and branding to
differentiate its products and further expand market share both in the
Philippines and in its overseas markets. Expenses include funding for
advertising campaigns such as television and radio commercials, print and
digital advertisements, as well as trade and consumer promotions.

B2. Customers

None of the Company’s businesses is dependent upon a single customer or a

few customers that a loss of anyone of them would have a material adverse
effect on the Company. The Company has no single customer that, based
upon existing orders, will account for 10.0% or more of the Company’s total
sale of goods and services.
C. PRODUCTION AND OPERATIONS AREA

The Company’s production operations depend upon obtaining adequate

supplies of raw materials on a timely basis. In addition, its profitability
depends in part on the prices of raw materials since a portion of the
Company’s raw material requirements is imported, including packaging
materials. To mitigate these risks, alternative sources of raw materials are
used in the Company’s operations and pricing initiative are taken.

C1. Raw Materials

A wide variety of raw materials are required in the manufacture of the

Company’s food products, including corn, wheat, flour, sugar, robusta coffee
beans, palm oil and cocoa powder. Some of these materials arepurchased
domestically while some are imported. The Company also obtains a major
portion of its raw materials from its commodity food products segments, such
as flour and sugar, and flexible packaging materials from its packaging
segment.

For its Animal Nutrition and Health segment, the Company requires a
variety of raw materials, including corn grains, soya beans and meals, feed-
wheat grains, wheat bran, wheat pollard, soya seeds, rice bran, copra meal
and fish meal. The Company purchases corn locally from corn traders and
imports feed wheat from suppliers in North America, Australia, Europe and
China. Likewise, soya seeds are imported by the Company from the USA.

For its Drugs and Disinfectants segment, the Company sources its
major raw materials locally. The key ingredient in alcohol is rectified spirit,
which is sourced internally from its distillery plants across the country. For its
animal health products, the Company requires a variety of antibiotics and
vitamins, which it acquires from suppliers in Europe and Asia. The Company
maintains approximately two months physical inventory and one month in-
transit inventory for its imported raw materials.

For its Farms segment, the Company requires a variety of raw

materials, primarily close-herd breeding stocks. For its poultry business, the
Company purchases the parent stock for its layer chicks from Dekalb from
Europe and Hy-line from the USA. Robina Farms obtains all of the feeds it
requires from its Animal Nutrition and Health segment and substantially all of
the minerals and antibiotics from its Drugs and Disinfectants segment as part
of its vertical integration. The Company purchases vaccines, medications and
nutritional products from a variety of suppliers based on the values of their
products.

The Company obtains sugar cane from local farmers. Competition for
sugar cane supply is very intense and is a critical success factor for its sugar
business. Additional material requirements for the sugar cane milling process
are either purchased locally or imported
 The Company generally purchases wheat, the principal raw material for
its flour milling and pasta business, from suppliers in the United States,
Canada and Australia.

The Company’s policy is to maintain a number of suppliers for its raw

and packaging materials to ensure a steady supply of quality materials at
competitive prices. However, the prices paid for raw materials generally reflect
external factors such as weather conditions, commodity market fluctuations,
currency fluctuations and the effects of government agricultural programs.
The Company believes that alternative sources of supply of the raw materials
that it uses are readily available. The Company’s policy is to maintain
approximately 30 to 110 days of inventory.

C2. Results of Operations and Financial Performance

Calendar Year 2022 Compared to Calendar Year 2021

URC generated a consolidated sale of goods and services of P149.904

billion for the year ended December 31, 2022, ahead by 28.2% against last
year. Sale of goods and services performance by business segment follows:

• Sale of goods and services in URC’s BCFG segment, excluding packaging

division, increased by P24.032 billion or 29.3% to P105.936 billion in 2022
from P81.904 billion registered in 2021.

BCF domestic operations posted an increase in net sales from P59.734

billion in 2021 to P73.639 billion in 2022 coming from strong volume and
programmed price increases. BCF international operations reported a 45.7%
increase in net sales from P22.170 billion in 2021 to P32.297 billion in 2022
with strong topline across key markets coupled with uplift from Munchy’s
acquisition. In constant US dollar (US$) terms, sales increased by 38.3%
(11.1% ex-Munchy’s) with Indochina leading the expansion across the region,
while Munchy’s continues to deliver synergies. Vietnam sales grew by 21.7%
driven by the solid performance of the beverage category with strong growth
and market share of C2 and recovery of Rong Do. Thailand improved with
8.3% sales growth coming from all categories particularly Candies, Snacks,
and Bakery.

Sale of goods and services of BCFG, excluding packaging division,

accounted for 70.7% of total URC consolidated sale of goods and services for
2022. Sale of goods and services in URC’s packaging division increased by
13.1% to P1.832 billion in 2022 from P1.619 billion recorded in 2021 due to
better volume.

• Sale of goods and services in URC’s Agro-Industrial and Commodities (AIC)

group amounted to P42.136 billion in 2022, an increase of 26.0% from
P33.432 billion recorded last year.
• Sale of goods and services in URC’s AIG segment amounted to P14.431
billion in 2022, a growth of 25.7% from P11.483 billion recorded in 2021.
Feeds business increased by 31.0% due to pricing and double-digit volume
growth in pet food and hog feeds. Farms business declined by 4.6% due to
lower volume.

• Sale of goods and services in Flour business amounted P5.711 billion in

2022, a growth of 14.0%, increase from P5.009 billion recorded in 2021 due to
improved prices amidst a surge in wheat prices.

• Sales of goods and services in Sugar business amounted to P16.014 billion

grew by 34.9% from P11.868 billion in 2021 driven by higher market prices
across all categories while the Renewables business grew by 17.9% to
P5.980 billion in 2022.

URC’s cost of sales consists primarily of raw and packaging materials costs,
manufacturing costs and direct labor costs. Cost of sales increased by
P27.197 billion or 32.6% to P110.686 billion in 2022 from P83.490 billion
recorded in 2021 due to higher volume and elevated input costs.

URC’s gross profit for 2022 amounted to P39.217 billion, higher by P5.752
billion or 17.2% from P33.465 billion reported in 2021. Gross profit margin
decreased by 245 basis points from 28.61% in 2021 to 26.16% in 2022 due to
high material costs.

URC’s selling and distribution costs and general and administrative expenses
consist primarily of compensation benefits, advertising and promotion costs,
freight and other selling expenses, depreciation, repairs and maintenance
expenses, and other administrative expenses. Selling and distribution costs,
and general and administrative expenses increased by P3.245 billion or
15.6% to P23.994 billion in 2022 from P20.749 billion registered in 2021.

Operating income in URC’s BCFG segment, excluding packaging

division, increased by P1.730 billion or 18.6% to P11.029 billion in 2022 from
P9.299 billion in 2021. BCFG’s domestic operations grew by 10.8% to P8.427
billion in 2022 from P7.603 billion in 2021 driven by strong volume coupled
with aggressive pricing moves and a cost-savings program. International
operations posted a P2.603 billion operating income, a 53.5% growth from
P1.696 billion in 2021, on the back of Munchy's acquisition and quarter-on-
quarter margin expansion. Aggressive direct and indirect pricing moves for
core SKUs and geographies coupled with structural improvements in some
smaller markets have helped support absolute growth. In constant US dollar
terms, international operations posted an operating income of US$48 million,
a 44.7% increase from last year.

URC’s packaging division reported an operating income of P85 million

in 2022 from an operating income of P99 million reported in 2021 due to
higher input cost.
 Calendar Year 2021 Compared to Calendar Year 2020

URC generated a consolidated sale of goods and services of P116.955

billion for the year ended December 31, 2021, ahead by 3.4% against last
year. Sale of goods and services performance by business segment follows:

P566 million or 0.7% to P81.904 billion in 2021 from P82.470 billion

registered in 2020. BCF domestic operations posted a decrease in net sales
from P61.240 billion in 2020 to P59.734 billion in 2021 coming from high base
in 2020 due to pantry-loading in the first half of the year driven by Taal
eruption and the start of pandemic shifting household spending to pantry
essentials. Economic environment also affected consumer behavior as seen
in the category declines.

BCF international operations reported a 4.4% increase in net sales

from P21.230 billion in 2020 to P22.170 billion in 2021 coming from strong
growth momentum in the first half of the year, partially tapered by COVID-19
resurgence in the region. In constant US dollar (US$) terms, sales increased
by 5.3% driven by Indochina and Indonesia despite COVID challenges.
Vietnam significantly grew by 12.0% driven by recovery in beverage sales
particularly C2 while Thailand improved with 5.2% sales growth coming from
strong domestic performance.

Sale of goods and services of BCFG, excluding packaging division,

accounted for 70.0% of total URC consolidated sale of goods and services for
2021.

Sale of goods and services in URC’s packaging division increased by

44.8% to P1.619 billion in 2021 from P1.118 billion recorded in 2020 due to
better price and volume.

Sale of goods and services in URC’s AIC group amounted to P33.432

billion in 2021, an increase of 13.0% from P29.574 billion recorded last year.

Sale of goods and services in URC’s AIG segment amounted to P11.483

billion in 2021, a decline of 3.2% from P11.858 billion recorded in 2020. Feeds
business increased by 5.6% due to double digit growth in pet food, offsetting
the decline in animal feeds. Farms business also decreased by 40.3% due to
lower volumes as a result of downsized operations

• Sale of goods and services in Flour business amounted P5.009 billion in

2021, a growth of 4.5%, increase from P4.794 billion recorded in 2020 due to
better selling price despite low volume growth.

• Sales of goods and services in Sugar business amounted to P11.868 billion

in 2021 grew by 20.7% from P9.836 billion in 2020 while Renewables
business grew by 64.4% to - 18 - P5.073 billion in 2021 driven by the
acquisition of La Carlota mill and Roxol distillery in 4th quarter of 2020.
 Cost of sales increased by P4.916 billion or 6.3% to P83.490 billion in
2021 from P78.573 billion recorded in 2020 due to higher sales and
increasing input costs.

URC’s gross profit for 2021 amounted to P33.465 billion, lower by P1.123
billion or 3.2% from P34.588 billion reported in 2020. Gross profit margin
decreased by 195 basis points from 30.57% in 2020 to 28.61% in 2021.

URC’s selling and distribution costs and general and administrative

expenses consist primarily of compensation benefits, advertising and
promotion costs, freight and other selling expenses, depreciation, repairs and
maintenance expenses and other administrative expenses. Selling and
distribution costs, and general and administrative expenses increased by P57
million or 0.3% to P20.749 billion in 2021 from P20.692 billion registered in
2020. The increase primarily resulted from increases in repairs and
maintenance, professional and legal fees and other administrative expenses,
partially offset by decreases in advertising and promotion costs; and taxes,
licenses and fees.

As a result of the above factors, operating income decreased by

P1.180 billion or 8.5% to P12.716 billion in 2021 from P13.896 billion reported
in 2020.

• Operating income in URC’s BCFG segment, excluding packaging

division, decreased by P909 million or 8.9% to P9.299 billion in 2021 from
P10.208 billion in 2020. BCFG’s domestic operations decline by 8.0% to
P7.603 billion in 2021 from P8.262 billion in 2020 driven by cost headwinds
from commodity prices, partially offset by pricing actions, mix improvements
and cost savings initiatives. International operations posted a P1.696 billion
operating income, 12.9% lower than the P1.947 billion posted in 2020 driven
by increasing input prices and freight costs, and plant shutdowns due to Delta
COVID variant surge in 3rd quarter of 2021. In constant US dollar terms,
international operations posted an operating income of US$ 34 million, a
12.3% decrease from last year.

Calendar Year 2020 Compared to Calendar Year 2019

URC generated a consolidated sale of goods and services of P113.162

billion for the year ended December 31, 2020, a slight decline of 1.1% against
2019. Sale of goods and services performance by business segment follows:

• Sale of goods and services in URC’s BCFG segment, excluding

packaging division, decreased by P2.848 billion or 3.3% to P82.470 billion in
2020 from P85.318 billion registered in 2019. BCFG domestic operations
posted a slight decrease in net sales from P61.535 billion in 2019 to P61.240
billion in 2020 due to decline in dependent out-of-home consumption
categories such as RTD beverages and candies, partially offset by growth in
snacks, noodles and other filler type categories.

BCF international operations reported a 10.7% decrease in net sales

from P23.783 billion in 2019 to P21.230 billion in 2020. In constant US dollar
(US$) terms, sales decreased by 6.3% mainly driven by challenged sales of
Vietnam and Thailand. Vietnam sales declined by 13.4% mainly driven by
slowdown in beverages as C2 sales was unable to fully pull through despite
recovery in the 2 nd half of the year and Rong Do remained challenged due to
school closures. Thailand sales decreased by 3.2% due to soft domestic
consumption.

Sale of goods and services of BCFG, excluding packaging division,

accounted for 70.5% of total URC consolidated sale of goods and services for
2020.

Sale of goods and services in URC’s packaging division decreased by

15.5% to P1.118 billion in 2020 from P1.324 billion recorded in 2019 due to
lower selling price and volume.

• Sale of goods and services in URC’s AIC group amounted to P29.574

billion in 2020, an increase of 6.5% from P27.761 billion recorded last year.

• Sale of goods and services in URC’s AIG segment amounted to

P11.858 billion in 2020, a decline of 9.7% from P13.138 billion recorded in
2019. Feeds business decreased by 3.5% due to lower volumes while Farms
business decreased by 24.2% due to lower volumes as a result of downsized
operations.

• Sale of goods and services in Flour business amounted P4.794 billion

in 2020, a decline of 1.8% from P4.881 billion recorded in 2019 due to lower
volumes, partially offset by better average selling price.

• Sales of goods and services in Sugar business amounted to P9.836

billion in 2020 grew by 33.5% from P7.366 billion in 2019 due to higher
volumes and Renewables business grew by 29.8% to P3.085 billion in 2021
driven by higher average selling price. The acquisition of Central Azucarera
de La Carlota and Roxol Bioenergy Corporation contributed to the growth of
Sugar and Renewables businesses.

URC’s cost of sales consists primarily of raw and packaging materials

costs, manufacturing costs and direct labor costs. Cost of sales decreased by
P2.066 billion or 2.6% to P78.573 billion in 2020 from P80.639 billion recorded
in 2019 due to lower input costs and packaging materials, and forex impact.

URC’s gross profit for 2020 amounted to P34.588 billion, higher by

P824 million or 2.4% from P33.764 billion reported in 2019. Gross profit
margin increased by 105 basis points from 29.51% in 2019 to 30.57% in
2020.
 URC’s selling and distribution costs and general and administrative
expenses consist primarily of compensation benefits, advertising and
promotion costs, freight and other selling expenses, depreciation, repairs and
maintenance expenses and other administrative expenses. Selling and
distribution costs, and general and administrative expenses decreased by
P329 million or 1.6% to P20.692 billion in 2020 from P 21.021 billion
registered in 2019.

Operating income in URC’s BCFG segment, excluding packaging

division, increased by P363 million or 3.7% to P10.208 billion in 2020 from
P9.846 billion in 2019. BCFG’s domestic operations went up by 6.3% to
P8.262 billion in 2020 from P7.775 billion in 2019 driven by better price and
cost mix, and tempered input costs. International operations posted a P1.947
billion operating income in 2020, 6.0% lower than the P2.070 billion posted in
2019 driven by forex devaluations. In constant US dollar terms, international
operations posted an operating income of US$39 million, a 1.4% decrease
from previous year. URC’s packaging division reported an operating income
of P522 thousand in 2020 from an operating loss of P42 million reported in
2019 due to better margins.

D. FINANCIAL PERFORMANCE

The Company’s key performance indicators are employed across all

businesses. Comparisons are then made against internal target and previous
period’s performance. The Company and its significant subsidiaries’ top five
(5) key performance indicators are as follows (in million PhP)
 MATERIAL CHANGES IN THE 2022 FINANCIAL STATEMENTS
(INCREASE/DECREASE OF 5% OR MORE VERSUS 2021)

INCOME STATEMENTS – YEAR ENDED DECEMBER 31, 2022 VERSUS

YEAR ENDED DECEMBER 31, 2021

28.2% increase in sales

Due to strong volume and higher selling prices coupled with Munchy’s
contribution

32.6% increase in cost of sales

Due to higher sales and increasing material and fuel costs

15.7% increase in selling and distribution cost

Due to higher freight and handling costs aligned with higher sales volume and
fuel cost

15.4% increase in general and administrative expense

Due to higher personnel-related costs, depreciation and travel, and
transportation

316.1% increase in equity in net losses of joint ventures

Due to equity take-up in net losses of VURCI

42.8% decrease in impairment losses

Due to lower impairment losses of fixed assets and spare parts during the
year

15.5% increase in finance revenue

Due to higher dividend income

26.8% increase in other income - net

Due to recognition of higher gain on sale of fixed assets this year and higher
consultancy fees last year

90.0% increase in provision for income tax

Due to higher taxable income from sale of properties

11.6% increase in net income from continuing operations

Due to higher operating income coupled with gain on sale of properties

100.0% decrease in net income from discontinued operations

Due to recognition of gain on sale of Oceania businesses last year
 FINANCIAL RATIOS

CY 2022 CY 2021
PROFITABILITY
Operating Margin 10.2% 10.9%
Earnings per share P6.39 P10.58
Core Earnings per share P5.44 P5.26
Leverage:
Interest Rate Coverage Ratio 26.68 32.23

URC’s set of financial statements for the latest comparative year: 2021 and
2022 are attached in the Appendices.

STATEMENTS OF FINANCIAL POSITION – DECEMBER 31, 2022 VERSUS

DECEMBER 31, 2021

21.9% decrease in cash and cash equivalents

Due to capital expenditures, dividend payment and purchase of treasury
shares; partly offset by cash from operations and loan availments

62.5% increase in financial instruments at FVPL

Due to additional investments and increases in the market price of equity
securities

30.9% increase in receivables

Due to increases in trade receivable coming from an increase in sales and
nontrade receivable from the sale of property

33.8% increase in inventories

Due to increases in raw materials inventory, finished goods, and work-in-
process on the back of higher input cost and volume

37.8% increase in biological assets

Due to the increase in hogs population coupled with improvement in hog
mortalities

29.3% increase in other current assets

Due to increase in advances to suppliers related to the purchase of
inventories

6.6% increase in property, plant and equipment

Due to capital expenditures partially offset by depreciation during the year

9.6 % decrease in right-of-use assets

Due to depreciation and derecognition during the year
5.1% increase in intangible assets
Due to cumulative translation adjustment during the year

23.3% decrease in other noncurrent assets

Due to decrease in noncurrent receivables related to the 2021 sale of
properties

12.9 % increase in accounts payable and other accrued liabilities

Due to increase in accrued advertising and promotions

50.6% increase in short-term debt

Due to loan availments during the year

41.3% increase in trust receipts payable

Due to the increased utilization of trust receipt facilities during the year

47.6% increase in income tax payable

Due to higher tax provisions during the year, net of payments

8.0% increase in deferred tax liabilities

Mainly due to translation adjustment during the year

8.3% decrease in lease liabilities

Due to rent payments and amortization during the year

9.5% increase in net pension liability

Due to additional retirement expense this year offset by remeasurements in OCI

7.2% increase in retained earnings

Due to net income during the year, partly offset by dividend declaration

63.3% increase in other comprehensive income

Mainly due to increase in cumulative translation adjustments

232.1% increase in treasury shares

Due to reacquisition of issued shares during the year- 27

FINANCIAL RATIOS

CY 2022 CY 2021
LIQUIDITY
Current ratio 1.62:1 1.73:1
SOLVENCY
Gearing ratio 0.20:1 0.14:1
Debt to equity 0.47 0.40
Asset to equity 1.47 1.40
The Group calculates the ratios as follows:

VI. STRATEGY FORMULATION

I. SWOT ANALYSIS

STRENGTHS WEAKNESSES

S1. Domestic market W1. Limited Functional Drinks

S2. High growth rate W2. Lack of Healthy Products
S3. Broad product portfolio W3 Weak Online Presence
S4. Skilled workforce W4. Waste Management
 OPPORTUNITIES THREATS

O1. Growing economy T1. Changing consumers preferences

O2. Global markets T2. Economic slowdown
O3. Growth rates and profitability T3.Food Safety Concerns
O4. Asset leverage T4. Weather and Catastrophe

ANALYSIS

A. STRENGTHS

S1. Domestic Market - URC's AIG market is highly diverse, volatile,

cyclical, and mostly domestic. URC is dedicated and wellknown for
its Total Agri-Solution and far management skills

S2. High Growth Rate - URC is one of the Philippines' top food and
beverage companies. Any business needs market size and expansion
because it allows them to make more money. Universal Robina
Corporation has a negligible impact on its market share since it has
already built a reputation in the industry and generates a fair amount of
revenue and profits. Apart from maintaining operations and other
services, the company's main concern now is how they will be able to
expand more in the industry. URC chose to concentrate on inclusive
development, and their strategy for doing so was to be transparent and
accountable to their stakeholders. They will want to develop their risk
control skills and strive to innovate in order to gain new advantages in
a market that is constantly changing and becoming more competitive.
In order to protect their interests, their investors use ESG as a set of
criteria to track investments.

S3. Broad Product Portfolio -URC has a diverse range of brands.

Piattos (potato chips), Nova (corn chips), and Chippy (extruded chips),
which are all sold under the Jack 'n Jill brand, have the highest overall
market share in the salty-snack industry. Furthermore, the company's
two chocolate brands, Cloud 9 and Chooey Choco chocolate, are
dominant in the country, while the company's other brands, such as
Magic Flakes crackers, Cream-O cream-filled chocolate cookies,
and Hello cream wafers, among others, combine for market shares
that make it the third largest player in the biscuit industry. The
firm has a solid market share thanks to these well-known and
wellloved brands, as well as successful marketing strategies.

S4. Skilled Workforce - Employees remain to be a critical part of

every company's success, and keeping them motivated is vital because
they are the ones who keep the business going. Without them, the
company's growth will be affected, emphasizing the importance of
employee health and safety in the workplace. This aligns with URC's policy
of “putting people first will be the key to our purposeful transformation.”
Universal Robina Corporation retains its workers engaged by
 enhancing their stay at work by providing them with a pleasant working
atmosphere. As they aim to improve their commitment to community
development focused on measured social needs, they are also
concerned with their workers' health and livelihood. Strict adherence to
health and safety standards is continually monitored and strengthened
to ensure the safety and well-being of their workers. Each employee
has a distinct set of abilities. They put these skills to use to help the
business succeed, and it is the company's responsibility to have
ongoing challenges and training plans to help their workers develop.
Universal Robina Corporation offers these opportunities for
advancement by having daily performance conversations with workers
to educate and encourage them about their current performance, as
well as conducting career development programs to broaden their
knowledge base not just in the workplace but also in the business
world.

B. WEAKNESSES

W1. Limited Functional Drinks - URC has a limited variety of

functional drinks. This stand to be their weakness for the present
market demands for an array of drinks; may it be energy drinks, juices,
and whatnot.

W2. Lack of Healthy Products - The company offers a variety of

unhealthy products such as salty and sweet chips and crisps that
poses a risk to consumers’ health. Despite of the sustainability
program imposed by URC, the company still lacks focus on producing
healthy products.This may lead for consumers to switch into a much for
healthier substitute.

W3 Weak Online Presence - The company doesn’t focus on

promoting their products in Social Media platforms. The company
started ages ago but there is still a lack of promoting strategies most
likely in the internet. It would likely be a huge step if URC will begin to
focus on using the worldwide web to promote their products.

W4. Waste Management - URC can enhance their packaging by

reducing the volume of environmentally hazardous ingredients used in
its products. Furthermore, scraps and residues should be minimized in
order to meet the company's goal of environmental preservation as part
of its sustainability program

OPPORTUNITIES

O1. Growing economy - The Philippine GDP for the 4th quarter of
2017 had risen to 6.6%, creating a grand total of 6.7% GDP growth for
the entire 2017 year. This is mainly due to a recovered agriculture
sector, high government consumption, and better imports and exports.
 This only shows that the Philippines is showing its competitive growth
in the South-Asian nations.

O2. Global markets - In the fast-paced nature of industry, it's critical to

innovate and change on a regular basis in order to retain or build
competitive advantages for the company to use in the global market.
URC chose to concentrate on inclusive development, and their strategy
for doing so was to be transparent and accountable to their
stakeholders.

O3. Growth rates and profitability - URC has been the topnotch of
the game in the food industry. The company continues to grow and
continues to deliver high growth rates. URC is bagged to be one of the
Philippines' top food and beverage companies.

O4. Asset leverage - Based on the prior analysis, URC’s leverage

ratio tends to be high, thus, the firm is highly levered, serving a
pathway for more clever tactics and strategic growth.

THREATS

T1. Changing consumers’ preferences - changing consumer

preferences has been a constant threat to companies in today’s time. A
consumer’s preference is directly interrelated to the market demand.
An impressive market demand then offers a high rate of profitability to
each company in the industry.

T2. Economic slowdown - An economic downturn can be a threat to

businesses as it can lead to decreased consumer spending, reduced
profits, and increased competition. I creates uncertainty and risk,
making it difficult for firms to achieve returns on their investments.

T3.Food Safety Concerns - Food borne illnesses are a major threat to

food businesses and affect everyone all over the world as a result of
inadequate food safety. URC prohibited the sale of adulterated food
products and imposed risk minimization to mitigate this threat.

T4. Weather and Catastrophe - Across the country, tornadoes,

storms, floods, and hail have hammered homes and businesses. As one
of the major climate risks to businesses, catastrophic flooding can destroy
physical assets and infrastructure. This may lead to losses and the
worst, bankruptcy.

PORTER'S FIVE FORCES ANALYSIS

The Threat of New Entrants – LOW

Considering that Universal Robina Corporation and its competitors

have already been established in the food and beverage industry, it will be
very difficult for newcomers to enter the industry and compete with these
companies, as the cost of capital would be very high.

Bargaining Power of Buyers – LOW to MODERATE (Consumers) / HIGH

(Retailers)

For consumers, their bargaining power is low to moderate because

they cannot ask for a discount and lower prices as URC products are offered
at their distribution channels at a fixed price. However, due to brand loyalty
and preference, some consumers may still avail their products. In terms of
retailers, they have high bargaining power because they can ask for discounts
by buying bulk.

Bargaining Power of Suppliers – HIGH

In their industry, since they have similar products as their competitors,

the materials they use would also be similar, thus making the bargaining
power of the suppliers high.

The threat of Substitutes – HIGH

Buyers are the main source of the company profits, and if they were
not satisfied with URC's products due to their high price, they would tend to
buy from competitors that offer similar products

Intense Rivalry – HIGH

One of the things to consider knowing the intensity of competitive

rivalry is the number of competitors. Universal Robina Corporation's main
competitors are Oishi and Nissin - Monde, as they produce and sell similar
products. Since these companies sell identical products, the product
differentiation is low, thus making the intensity of competitive rivalry high.

STEEPLE (PESTLE) FRAMEWORK

PESTEL/PEST of Universal Robina Corporation

POLITICAL

- Change in legislation and taxation effects on the company.

- Strong and powerful political person, the point of view on business policies
and their effect on the organization.
- Strength of property rights and law rules as well as changes in political
situations and its effect to the said company.

ECONOMICAL

- Exchange rates fluctuations and its relation with URC.

- Change in level of customer’s disposable income and effect.
- Fluctuation in unemployment rate and its effect on hiring a sets of skilled
employees.
- Effect of globalization on economic environment.

SOCIAL-CULTURAL

- Change in population growth rate and age factors and its impact on the
organization.
- Effect on organization due to the change in attitudes and generational shifts.
- Standards of health, education and social mobility levels.
- Religious believers and life styles and its effects on organization

TECHNOLOGICAL

- Any new technology in the market that could affect the work, organization or
industry.
- Access of competitors to the new technologies and its impact on their
product or better services.
- Existing technology that can facilitate the company on its general
effectiveness and efficiency