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Hidalgo Restaurant, Inc.
Succeeding as an Entrepreneur
A Written Analysis of the Case
Presented to the Faculty College of Business Administration
Holy Cross of Davao College
Sta. Ana Avenue, Davao City
In Partial Fulfillment of the Requirements for the Subject
MM 8: Strategic Marketing Management
January 2011
I. Executive Summary
Hidalgo is one of the most successful restaurants in Glorietta 4. Hidalgo
was conceived in 2000 and established in 2002 when the Ayala Glorietta multi-
mall complex expanded. Named after Felix Resurreccion Hidalgo, the
nineteenth-century Filipino painter. The restaurant is similar to the European
inspired Filipino adapted no borders cuisine of Corsica (The first cuisine
incorporating European influence restaurant) but with its own unique menu.
Tinong did not want Hidalgo to siphon customers away from Corsica, so he made
sure that the Makati restaurant had its own style and approach. Hidalgo
restaurant owned by Faustino “Tinong” Alfon. Tinong is a optimistic, tenacious try
and try again entrepreneur. Born to a well-to- family with modest property
holdings. Encouraged by the modest income, he graduated to selling high-end
condo units while he completed a bachelors degree in economics at the Ateneo.
He quitted his job to manage the family property rental business, and set time for
his entrepreneurial venture. For Tinong, entrepreneurs are both visionaries and
artisans. Hidalgo restaurant serves “fusion” food to well-heeled Filipinos and
expatriates. It was an even bigger success than his first business venture, and
the entire investment was covered in less than twelve months.
II. Statement of the Problem
General:
How will Tinong be able to stay in trend and rise for excellence in food
business industry?
Specific:
What traits and personality should he possess to face those challenges
along his way?
What are the success factors in Hidalgo ventures?
What will he do in running his restaurants constant turnover of kitchen
personnel?
What strategies should he develop?
III. Objectives of the Study
A. Statement of Objectives
General:
To be able to recognize in the business of building relationships and
partnership among customers as their best, most reliable, and most
economical quality foods.
Specific:
To remain and improve their employees to discover themselves their
talent and their potentials and in building relationships among each
other;
To be the preferred restaurant of Filipinos and expatriates, providing
total customer satisfaction through quality, service, cleanliness, and
value.
To provide total customer satisfaction and exceed customer’s
expectations through setting the trend in raising the bar, to be the
change agents contributing directly to the country’s development,
creating standards of excellence which every Filipino may aspire,
To be in the business of building relationships and partnerships,
among which one partner is the customer, in order to maximize
earnings that will benefit the supplier, employees, and investors.
B. Matrix of Objectives
Objectives 1 2 3 4 5
1. Provide total customer satisfaction
exceed customer’s expectations through
quality, service, cleanliness, and value
ال ال √ √
2. Improve and increase employees
salary and benefits
ال √ ال √
3. Building relationships and partnerships ال √ √ √
4. Creating good and quality standards √ ال √ √
5. Customizing food product and service
design
√ √ √ √
C. Criteria of Objectives
Objective Weights Reason for the Weight Given
1 50% This must be focus and enhance to
remain the customer and be
competitive enough through the
competitors
2 40% The salary and benefits of the
employee must be prioritize to gain
trust and loyalty among employees
3 7% To be able to build relationship among
partners is important also in business
4 3% Good and quality standards is also
important in a success of a business
TOTAL 100%
IV. Situational Analysis
A. Internal Factor Analysis Summary (IFAS)
Internal Factors Weight Rating Weighte
d Score
Comments
Strengths
S1: One of the most
successful restaurants in
Glorietta
Because of the
owners attitude
towards the
business
S2: Gross over two
million monthly and
netted enough profit
The business is
successful and
profitable
S3: Tinong (owner) is an
optimistic entrepreneur
completed a bachelors
degree in Economics at
the Ateneo
A very good
trait and
characteristic
of an
entrepreneur
S4: The good ambiance,
size and consistency of
the restaurant
Very important
factors
contributing to
the success of
the business
S5: Tinong’s keen desire
to compete in Makati and
Competitive
and possess a
his motivation strong
determination
in life
Weaknesses
W1: Constant turnover of
kitchen personnel
Employees are
one of the most
important
assets in a
company
W2: Competitors Competitive
W3: Target market You must know
your target
market.
W4: Location
W5: Management always
keeps an excess number
of employees on the
payroll in case a crew of
employees is suddenly
pirated by a competitor
A. External Factor Analysis Summary (EFAS)
External Factors Weight Rating Weighte Comments
d Score
Opportunities
O1: The target market
who are the Makati
professional and
residents
Big time
customers
O2: Publish books on his
customers
Good idea to
remain their
customers
O3: The market
segments combined by
key descriptors of taste
and lifestyles
Good
O4: Dined and travel at
all upscale restaurants
around the world
International
restaurant
O5: International cuisine
restaurant
World Class
Threats
T1: Competitors in
Makati, the premier
commercial location in
Metro Manila
Must be paid
attention
T2: Moving on another
location
Moving on
another
location means
losing the
business
Total 1.0
C. Strategic Factor Analysis (SFAS)
Strategic Factors
Weight Rating Weighted Score
Duration CommentsSHORT
INTERMEDIATE
LONG
S1: One of the
most successful
restaurants in
Glorietta
Because of
the owners
attitude
towards the
business
S2: Gross over
two million
monthly and
The business
is successful
and profitable
netted enough
profit
W3: Constant
turnover of
kitchen personnel
Employees
are one of
the most
important
assets in a
company
W4: Management
always keeps an
excess number of
employees on the
payroll in case a
crew of
employees is
suddenly pirated
by a competitor
O5: The target
market who are
the Makati
professional and
residents
Big time
customers
O6: Publish
books on his
Good idea to
remain their
customers customers
T7: Competitors
in Makati, the
premier
commercial
location in Metro
Manila
Must be paid
attention
T8: Moving on
another location
Moving on
another
location
means losing
the business
Total Score 1.0
D. The SWOT Matrix
Strengths-Opportunities Strategic Options
(Offensive and Proactive Actions)
Weaknesses-Opportunities Strategic Options
(Defensive and Proactive Actions)
Hidalgo Restaurant is known as
the best European cuisine in
Makati and was patronized by
many foreigners it could be a
world class restaurant in the
future
The constant turnover of kitchen
personnel because of his
employees were in demand in
the hotel and restaurant industry
somehow help them to do by
their own, having the ability to
They have the good ambiance
and delicious foods that could
attract more tourists
The business is the change
agents contributing directly to
the country’s development which
create standards of excellence
to every Filipino
do the work by themselves
benefited them also because of
its necessity to succeed in the
specialty restaurant business.
Strengths-Threats Strategic Options (Offensive and Reactive Actions)
Weaknesses-Threats Strategic Options
(Defensive and Reactive Actions)
The success of the restaurants
can be pirated by the
competitors
The constant turnover of kitchen
personnel because they
employed international
standards at his restaurants and
his training programs were so
rigorous, his employees were so
in demand in hotel and
restaurant industry. The
competitors can use it against
them.
V. Strategic Alternatives
A. Management Action Matrix
Objective Management Action 1
Management Action 2
Management Action 3
1 Provide customer
satisfaction on
customer’s
expectations through
quality service,
cleanliness, and
value
Think innovative
ways on how to
provide customers
expectations on
quality service,
cleanliness and
value
Continue to find and
develop ways and
ideas on customers
satisfaction
2 Increase employees
salary and benefits
Improve the
employees
compensation and
benefits to avoid
resigning of
employees
Think of more ways
to compensate
employees
3 Building relationships
and partnerships
Develop more
strategies on
building
relationships and
partnerships
Think more ways and
use more strategies
on building
relationships and
partnerships among
customers
4 Offer good and
quality standards
Creating more good
and quality foods to
the customers
Continue improving
and finding ways to
innovate the food and
quality standards of
the business
Alternative Course of Action 1:
Provide customer satisfaction on customer’s expectations through quality
service, cleanliness, and value to continue the good relationships and
partnerships among customers.
Alternative Course of Action 2:
Think innovative ways on how to provide customers expectations on
quality service, cleanliness and value. It must be done to satisfy the customers
and strengthen the relationships among each other.
Alternative Course of Action 3:
Continue to find and develop ways and ideas to satisfy the customers.
B. Scoring of Alternative Courses of Action
Objective ACA 1 ACA 2 ACA 3
1 4 4 3
2 3 4 3
3 4 3 3
4 3 4 4
VI. Analysis and Conclusion
A. Alternative Courses of Action Matrix
Objective Weights ACA 1 ACA 2 ACA 3
1 50% 4*0.50=2.00 4*0.50=2.00 3*0.50=1.50
2 40% 3*0.40=1.20 4*0.40=1.60 3*0.40=1.20
3 7% 4*0.07=0.28 3*0.07=0.21 3*0.07=0.21
4 3% 3*0.03=0.09 4*0.03=0.12 4*0.03=0.12
TOTAL 100% 3.57 3.93 3.03
B. Conclusion
The table above shows that the percentage weights used by the company
measures the effectiveness of the solutions given. Quality has always meant
ensuring that customers receive food products that are the result of the best
ingredients, strict standards, and proven preparation procedures to guarantee a
safe, great tasting food. Quality Management which instills the culture of quality
through such principles as being customer driven, managing with facts, valuing
people, and continually improving every aspect of the business.
VII. Recommendation to Management
The company should develop this strategy to improve and think of
innovative ways on how to satisfy customers’ expectations regarding quality
service, cleanliness and value. And also to strengthen the relationship among
each other. Service that’s fast and friendly has always been the foundation for
the success of the business by using service enhancement techniques they will
be able to provide service that exceeds the customers’ expectations. This
process empowers restaurant teams to deliver customer satisfaction by training
crew members to think like customers and providing them with the tools and
authority to deliver exceptional customer experiences. Cleanliness should be the
principle when they first opened the doors of the restaurant. This means having
the cleanest and freshest facilities from the kitchen and dining room to the rest
rooms and parking lots. Value means low prices and much more. Today, value is
defined as the total experience you receive for what you pay and the total
experience includes great food, friendly folks, a clean environment, as well as
quick and accurate service.
