POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN MARKETING MANAGEMENT

HUMAN RESOURCE MANAGEMENT

HRMA 20013

Cruz, Guillen G.
Dela Cruz, Yda Mariel R.
Del Valle, Ian Gabriel

Dr. Marilou Mondana

Summer Term
A.Y. 2018 - 2019
 DIVERSITY
Diversity is a set of conscious practices that involves understanding and
appreciating interdependence of humanity, cultures, and the natural environment.
Practicing mutual respect for qualities and experiences that are different from our own. It
means understanding that each individual is unique, and recognizing our individual
differences. These can be along with the dimensions of race, ethnicity, gender, sexual
orientation, socio-economic status, age, physical abilities, religious beliefs, political
beliefs, or other ideologies. Moreover, diversity can provide an organization with a
competitive advantage because it hires and promotes the most talented people available
regardless of gender, race or any other characteristics.

DIMENSIONS OF DIVERSITY
Different types of people come together in today’s business world and many
companies are proud to have a diverse workforce. A diverse workforce is made up of
individuals with a wide range of characteristics and experiences. In addition, workforce
diversity is a valuable asset in any businesses/companies that seek to gain a competitive
advantage in the global economy. According to an article entitled “Diversity in
Organization: Where are we now and where are we going?” by Dean, Ehrhart, et. al.
(2009), there are six dimensions of diversity: race and ethnicity, gender, age, disability,
religious, and sexual orientation.

1. Race and Ethnicity Diversity

Diversity in the workplace based on race and ethnicity are important factors to
consider, especially with the controversies and complications of racial discrimination
in other parts of the world. Race is tied to a person’s biological heritage, which includes
physical characteristics like skin color, hair type and other associated elements.
Meanwhile, ethnicity, while related to race, is more on about a person’s culture.
Someone’s ethnicity can encompass multiple racial or ethnic categories.
People who came from diverse racial and ethnic backgrounds bring unique and
varying perspectives to the workplace. According to a recent study done by McKinsey,
it showed that organization with a high degree of racial and ethnic diversity are 35
percent more likely to have stronger financial returns.

2. Gender Diversity
Commonly, in order to be fair and equitable in the workplace, there is a need to
have an equal representation of men and women. However, gender diversity deals
with equal representation of men and women in the workplace.

3. Age Diversity
This is the ability to accept all different types of ages within a business
environment. At any given time, there may be three or four generations at work. That
is, people whose ages could make them grandparents, parents and children if they
were related, all bring different experiences, worldviews and strengths to the modern
workplace. Also, many people delay retirement and stay in the workforce longer.

4. Disability Diversity
In the U.S., their government encourages the hiring of people with physical, mental
or emotional disabilities through federal laws and by making funding available to
companies to employ these workers. Even so-called invisible disabilities, such as
depression, dyslexia and fibromyalgia, require workplaces to provide reasonable
accommodations. These accommodations help workers adequately perform their
duties without lowering performance expectations or standards.

5. Religious Diversity
People of all faiths and of no organized religious faith at all -- clock in workday
mornings. Religious diversity in the workplace can have a particular set of challenges.
This may especially be so for faith-based companies of a certain ideology or workers
who wish to live consistently with their beliefs in organizations that are expressly non-
religious. For example, someone may want to not participate in a mandatory company
event that has religious overtones. In another case, a worker who has exhausted all
 personal days may want to take a day off for a holiday that is central to his religion but
not recognized by the company.

6. Sexual Orientation Diversity

This refers to all the diversities of sex characteristics, sexual orientations and
gender identities, without the need to specify each of the identities, behaviors, or
characteristics that form this plurality.

DIVERSIFICATION
Diversification is a kind of corporate strategy. It is used to expand firms' operations
by adding markets, products, services, or stages of production to the existing business.
The purpose of diversification is to allow the company to enter lines of business that are
different from current operations. Expanding a business can be quite hard so business
owners and their teams tend to use a diversification strategy to be able to increase their
sales and be successful in their expansion.
The business diversification strategy is what companies do to increase the sales
volume and in order to increase their profits. The increase in the volume of sales can be
done by developing new products and targeting new market. The diversification strategy
can be used at the unit level of a business as well as in their corporate level. In a company
expansion in unit level of a business, the strategy can be a new segment idea that is
related exactly to the existing business. For the corporate level, the new business can be
without relation to the existing business.

DIVERSIFICATION IN THE CONTEXT OF GROWTH STRATEGIES

Diversification is a form of growth strategy. Growth strategies involve a significant
increase in performance objectives (usually sales or market share) beyond past levels of
performance. Many organizations pursue one or more types of growth strategies. One of
the primary reasons is the view held by many investors and executives that “bigger is
better.” Growth in sales is often used as a measure of performance. Even if profits remain
stable or decline, an increase in sales satisfies many people. The assumption is often
made that if sales increase, profits will eventually follow.
 Rewards for managers are usually greater when a firm is pursuing a growth
strategy. Managers are often paid a commission based on sales. The higher the sales
level, the larger the compensation received. Recognition and power also accrue to
managers of growing companies. They are more frequently invited to speak to
professional groups and are more often interviewed and written about by the press than
are managers of companies with greater rates of return but slower rates of growth. Thus,
growth companies also become better known and may be better able, to attract quality
managers.
Growth may also improve the effectiveness of the organization. Larger companies
have a number of advantages over smaller firms operating in more limited markets.

THREE TYPES OF DIVERSIFICATION

1. Concentric Diversification
This concerns a growth strategy where any new or acquired products are closely
related to existing products or to the company’s core competencies. This approach
allows the company to employ resources and take advantage of existing
competencies in introducing the new product. The new products will generally relate
closely to existing products or product lines with the purpose of leveraging brand
awareness and customer loyalty. It generally involves targeting previously identified
market segments that have not been fully addressed.
Concentric diversification involves adding similar products or services to the
existing business. For example, when a computer company that primarily produces
computers starts manufacturing laptops, it is pursuing a concentric diversification
strategy.
2. Conglomerate/Lateral Diversification
This involves launching a new product or product lines that are unrelated to
existing products, resources, or core competencies. The company will generally
attempt to leverage any brand recognition or customer loyalty in the new market. For
example, Company XYZ which sells electronics, venture into selling clothing apparel.
Conglomerate diversification involves adding new products or services that are
significantly unrelated and with no technological or commercial similarities. For
example, if a computer company decides to produce notebooks, the company is
pursuing a conglomerate diversification strategy.

3. Horizontal Diversification
This concerns the introduction of new products to a new market segment
(generally forming a new business in the process). The new products and business,
however, are designed to appeal to an existing customer base. Moreover, this strategy
depends heavily upon customer loyalty for existing products to transfer over to the
new products and business. For example, Company A, which makes laundry
detergent, seeks to enter the market for selling washing machines. Furthermore, bran
recognition and customer loyalty for the detergent may carry over to the business of
selling washing machines.
Horizontal diversification involves providing new and unrelated products or
services to existing consumers. For example, a notebook manufacturer that enters the
pen market is pursuing a horizontal diversification strategy.

Of the three types of diversification techniques, conglomerate diversification is

the riskiest strategy. Conglomerate diversification requires the company to enter a
new market and sell products or services to a new consumer base. A company incurs
higher research and development costs and advertising costs. Additionally, the
probability of failure is much greater in a conglomerate diversification strategy.
FRUITAS HOLDINGS, INC.

OTHER 20 BRANDS
 COMPANY BACKGROUND
MISSION AND VISION
We will be as Big as the Creator would allow us to be.
Our journey to Bigness shall be anchored on the path of
Integrity, Hardwork, Passion, Compassion, and Education.
COMPANY HISTORY
Going with the trend of healthy living in the Philippines, Fruitas Holdings, Inc. (FHI),
which is founded by Lester Yu, opened its first “Fruitas” Fresh from Babot’s Farm on
February 1, 2002 at SM Manila. Fast forward to present times, FHI now has more than
800 profitable stores across the country which are located in prime commercial
establishments and institutions. Moreover, it has expanded its brand portfolio which
includes Buko Loco, De Original Jamaican Pattie Shop and Juice Bar, Juice Avenue,
Johnn Lemon, Black Pearl, Buko Ni Fruitas, and Fruitas Ice Candy. The company
continues to make a name in the industry with its growth in number of outlets, expansions
through acquisitions, and development of new business concepts and formats such as
food parks (like Uno Cinquenta located along Maginhawa Street) and wine cellars (like
Cellar 150 located inside 150 Maginhawa Food Park).
ABOUT THE FOUNDER AND CEO OF FRUITAS
HOLDINGS, INC.
Lester Yu is the founder of the Fruitas Holdings,
Inc. He graduated with a Bachelors’ degree and
Master’s degree from De La Salle University and
University of the Philippines. Before he started FHI, he
had a career first in the world of banking. After this, he
tried venturing into businesses like kitchenware, toys,
gold trading, jewelry, and cellphone load cards. But
after numerous tries and failures, he eventually shifted into the food and beverages
business.
Observing a gap on affordable fresh fruit products, Yu introduced a fruit shake that
caters to customers who want to drink fresh fruit juice at a cheaper price.
 Moreover, in 2002, he observed that there was a growing trend in fitness and
healthy living. This trend allowed him to determine whether or not his business was a
feasible one.
FRESH AND AFFORDABLE PRODUCTS
Fruitas Holdings, Inc. (FHI) found its niche in the market by providing fresh and
affordable products to the middle class. Most of its products are freshly prepared at the
stores and its commissary ensures that products are delivered to the stores are of the
freshest quality. These are made possible on its strong internal research and
development, marketing team, and supply chain.
CORPORATE SOCIAL RESPONSBILITY OF FRUITAS HOLDINGS, INC.
One of the main focus of FHI in expanding came from the desire to help fellow
Filipinos. So, Lester Yu sponsored scholarships and feeding program in order to help the
Filipino community, especially those who are in need. In addition, he also makes it a must
not to discriminate physically disabled citizens in the company’s hiring process. The
company also hires hearing-impaired persons and even senior citizens. Lastly, the
company makes sure to aid local farmers by getting ingredients and products from them.
HOW FRUITAS HOLDINGS, INC. MANAGE DIVERSITY
Being one of the leading groups in the food cart industry, Fruitas Holdings, Inc. strives
to have an efficient and effective workforce. In order to achieve this, FHI continuously
develops its core organizational structure in improving employee skills by giving trainings
to develops its employees. Moreover, FHI hires from different age groups, educational
attainment and even those with disabilities as front-liners.
 DIVERSIFICATION STRATEGY
Companies adapt different strategies in their pursuit of achieving and maintaining
competitive advantage. One of the key growth strategies that companies are using is
diversification strategy. As for Fruitas Holdings, Inc., they use the concentric
diversification strategy in adding similar products or services to their existing business.
They have included Buko Loco, De Original Jamaican Pattie Shop and Juice Bar, Juice
Avenue, Johnn Lemon, Black Pearl, Buko Ni Fruitas and Fruitas Ice Candy under their
company. Moreover, the brands mentioned also sell beverages and refreshments and
are in the form of food carts where FHI was known for.

REACTION
This company started small like every other company did. Fruitas Holdings, Inc.
would not be able to grow if it did not incorporate different growth strategies. Their growth
strategy focuses mainly on diversity. They took the risk and started different businesses
that are also aligned with their original brand “Fruitas.” Their products are loved by the
masses because they offer fresh and high-quality products for a low price. Their main
selling point is that we, Filipinos, really love to eat food and thirst quenchers are not an
exception to that.

Knowing this fact, Fruitas Holding, Inc. used concentric diversification which
perfectly fits their business. Offering different kinds of foods and beverages really helped
them in reaching out to different types of customers. Not to mention that it is very hot in
the Philippines and most of their products are perfect to beat the heat. Their diversification
did not stop there. They also tried to diversify their employees which also showed a
positive effect. They started hiring deaf people which caught the attention of many people
and was able to convert more potential customers.

Having diverse products and diverse employees is not easy. Fruitas Holdings, Inc.
provided their employees with different trainings to develop their skills and to manage
diversity as well. Like what Lester Yu said “I have two words to impart to entrepreneurs:
focus and sacrifice.” Doing this, he was able to make his own company a success.
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Home. (n.d.). Retrieved from http://fruitasholdings.com/

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diversification/

Queensborough Community College. (n.d.). Retrieved from

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