"KILLER" MOVES

 

Dude 1: He’s a “lady-killer.”

Dude 2: He looks no stud to me.

Dude 1: Chicks were bored to death waiting for his move.

That’s a college dark humor in the boys’ dorm I dug into the past to catch your eye. Joking aside, let’s get down to business.

JOLLIBEE VS. MCDONALD’S

“Jollibee vs. McDonald’s: The Battle for the Philippines Favorite!”

The Youtube title above caught my eye while putting together this article. Refreshing my memory, I worked on a case study problem in one of my finals during my academic years long ago. Opened up as a small ice cream parlor in a neighborhood, Jollibee had just started selling burgers when McDonald’s, the global fast-food behemoth, was coming to make inroads on the Philippine market. As expected in a case study method, the problem was bursting with comparative data between the two fast-food competitors from sales growth to market shares.

I solved the problem in a qualitative way and put forward that Jollibee would beat McDonald’s in the long haul in the Philippine market built on one overriding factor: taste. My rationale: while McDonald’s stuck to its original iconic American “bland” taste for which they had become globally famous, on the other hand, Jollibee has attuned itself to the local taste buds – like crispier and spicier crackling chicken in every bite matched with sweeter than usual spaghetti. The rest is history. Btw, I got an average grade only in that exam. No doubt, my prof was a McDo fan.

ENTER MANG INASAL

There’s the rub. Soon afterward, Jollibee acquired Mang Inasal in a multi-billion peso deal. Why? Mang Inasal emerged then as the fast-food new-kid-in-the-block rising star as its marketing stripes were unveiled below:

“It all started with a Vision. Edgar “Injap” Sia… learned the importance of following your instincts, taking risks, strategizing, negotiating, and motivating yourself and your people. He also knew that the Filipino barbeque quick-service restaurant category still had growth potential… Famous for its native-style and “nuot-sarap” Chicken Inasal with its pioneering “unlimited rice,” Mang Inasal quickly won the hearts of its customers with its distinctively Pinoy stamp-grilling and special marinade made out of local secret spices…To date, Mang Inasal has over 450 stores nationwide and counting.”

It appeared to be a win-win deal. Was it? For sure, for Jollibee, it was, but not exactly for the consumers. A recent study by authors Colleen Cunningham (London Business School), Florian Ederer (Yale School of Management), and Song Ma (Yale School of Management) seemed to have deemed Jollibee’s buyout as a “killer acquisition.” Ederer explained:

“KILLER ACQUISITION”

“[Our] paper is the first to study the phenomenon of 'killer acquisitions.' These are acquisitions in which an incumbent acquires an innovative target firm solely to discontinue the target’s innovation projects and thereby preempt future competition. Without a 'killer acquisition,' these future or nascent competitors would reduce the future profitability of the incumbent acquirer because they would deliver lower prices, more variety, and potentially higher quality to consumers.”

In the same manner, without such a “killer acquisition,” Mang Inasal could have delivered much better services to consumers than it does now: lower prices, more variety, and higher quality. Subsequently, to face up to the challenge, Jollibee, would have to beef up its market leadership by taking its customer satisfaction value to the next level. The bottom line: consumers always win in a level playing field competition.

 Without such “killer acquisition,” your experience with Jollibee and Mang Inasal could have been superior and have a higher quality than they do now in satisfying their customers. Mang Inasal today reminds me of the movie (title only) “Girl, Interrupted,” or the old U.S. TV sitcom (title only), “Arrested Development.”

COA, CALIDA, ATBP.

The sting of “killer acquisitions” could weigh heavily on our political system.

“Calida Doubles His Wealth in Office as Highest-Paid Solicitor General” (Rappler headline)

“Calida has a declared net worth of P73.4 million,” the report revealed. ”While in office, he was able to acquire a condo in Davao City, more jewelry, and more guns… Calida is the highest-paid solicitor general, landing him on the Top 2 of the list of highest-paid government officials -- a spot which no solicitor general has claimed before. Calida’s government earnings were propelled by his millions in allowances, a long-running dispute between the Office of the Solicitor General and the Commission on Audit (COA). COA had been insisting that Office of the Solicitor General (OSG) lawyers should not get an allowance that is more than half their annual salary. But Calida can get an allowance even quadruple his basic salary.”

I just shook my head after coming across this news item. Two weeks later, I read another headline that seemed to make COA a laughing stock.

“Jose Calida is Marcos’ COA chair” (Rappler headline)

Like Mang Inasal and Edgar “Injap” Sia, the Commission on Audit (COA) and its people have their Vision and Mission:

“A trustworthy, respected, and independent audit institution that is an enabling partner of government in ensuring a better life for every Filipino. To ensure accountability for public resources, promote transparency, and help improve government operations, in partnership with stakeholders, for the benefit of the Filipino people.”

I hope PBBM’s choice of Calida as COA chair will not be tantamount to a “killer acquisition” move for COA people – killing their motivation in achieving their vision and mission. Such foreboding is discomforting knowing how vital COA is in the light of this recent headline:

“COA Flags Unimplemented Davao City Infrastructure Works Worth Almost Half A Billion Pesos”

CNN Philippines reported that “state auditors have questioned Davao City officials led by then-Mayor Sara Duterte for failing to carry out 65 infrastructure projects worth over P469 million due to various issues that could have been resolved during the planning phase.”

Place such headline side by side with PRRD’s statement three years ago which sparked public outrage:

“Ah p***** i** ‘yang COA na ‘yan, I****. Kasi yang COA, every time, may mali talaga. Ano ba itong COA na ito? So, mag-kidnap tayo ng taga-COA ilagay natin, i-torture natin dito. T*** I**.”

Nowadays, with eyes like a hawk, not only should COA be on its toes for “killer” moves descending upon it, but also it should be on the lookout while it elbows its way on its tough job -- what one movie title put on a show – “The Killing Field.”

An old CNN article, “When Your Enemy Becomes Your Boss” has recommended ways to handle tough situations:

1. Examine your attitude and feelings toward your new boss

2. Be a bigger person

3. Dot your i’s and cross your t’s

4. Be open and honest

5. If nothing else works, look to other options

COA dudes, keep it real. All the best.

Head still photo courtesy of Antonio Feligno at pexelsdotcom