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STRATEGIC MANAGEMENT

I. Situation Analysis

A. Company Profile

1. Company Profile

Business Name: Gifts and Ideas

Business type: Boutique

Owner of business: Ms. Christine Grace G. Chua

Contact number: ________

Location: Sinsuat Avenue, Cotabato City

Business Started: April 17, 2017

2. Company History

The Staywhite Laundry Mat is a service-oriented business, operated by Mr.

Kelvin Kesid and Mrs. Fatima Odin Amba that offers the use of automated machines for

washing and drying clothes. The idea for the business came to Mr. Fale Faleataua,

husband of Mrs.Fatima, while working abroad in the U.S. The large popularity of laundry

shops there inspired him to try and bring the said business here in Cotabato City. Their

first branch opened in May this year. After a month, they opened their second branch.

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B. Company Environment

Internal Environment Assessment

Marketing

a. Service

The Staywhite Laundry Mat offers laundry services to its valued

customers. They offer self-service laundry facility. The service is only limited to

washing and drying fabrics. The customers could either bring their own laundry

supplies or buy inside the shop.

b. Place

The business is located at AC building, Notre Dame Avenue Cotabato

City, in front of ND Press. Also, the business is surrounded by boarding houses

where there is a good opportunity to get customers.

c. Price

Staywhite price starts at 120.00 per load/eight kilos of laundry (wash and

dry). Unlike other shops, its price is consistent regardless of type of clothes as

long as it weighs eight kilogram. A comforter is considered one load, and so

having a price of 120.00.With regards to their laundry supplies such as

detergents and fabric softeners and conditioners to be used, the customers can

either bring or buy from them. Below is the pricing summary:

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PRODUCT PRICE PRODUCT TOTAL
USED PRICE

Load Wash 60 60x

Load Dry 60 60x

Sachet Liquid 10 10x


Detergent

Sachet Fabric 10 10x


Softener

Bounce Sheet 5 5x
Anti-Wrinkle

Downy Sheet 10 10x


Anti-Wrinkle

Bleach (White) 20 20x

Bleach (Color) 20 20x

Drop-Off Load 30 30x

TOTAL PRICE:

d. Promotion

Staywhite Laundry Mat doesnt have promotion strategies like local radio

advertisements or local TV advertisements. They only have a Facebook page as a

way of introducing and advertising their business.

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Finance

The initial capital of Staywhite Laundry Mat in putting up their business came

from the investment given by Mr. Faleataua, husband of the owner, a Hawaiian resident

currently working abroad.

Approximately, according to the manager, their revenue ranges from 3,000 to

4,000 a day, 31,500 a week or 126,000 a month. Nevertheless, on the business point

of view, for as long as theyve reached their target sales, they see their business as

profitable.

Human Resource

a. Hiring Policy

In terms of hiring policy, the business does not look into the educational

attainment of the applicants since the job doesnt focus on critical thinking. Skills

matter most in this kind of industry. Thus, whats important is their willingness to

learn, skills especially in laundry and building good relationship with their

customers.

b. Employer Employee Relationship

The management doesnt treat their employees as mere employees but

as business partners. In that way, employees are motivated and as well as boost

their confidence and morale.

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Production/ Operation

Staywhite Laundry Mat normally operates seven days a week, twelve hours on

weekdays and fifteen hours on weekends. The operation starts with customer wanting to

avail the service, then the laundry is measured using a weighing scale to know its weight

and how much will be its equivalent price. Each load costs 120.00 which is equivalent

to eight (8) kilos of laundry. Afterwards, the clothes will be washed using their high

quality washing machines and dryers.

External Environment Assessment

Task Environment

a. Customers

Every person has their own laundry. Since the business is a laundry

service provider, everyone is a target market of Staywhite Laundry Mat.

b. Suppliers

Staywhite Laundry Mat acquired their machines outside the country,

which is from U.S. With regards to their laundry supplies such as detergents

and fabric softeners and conditioners, the shop does not have a direct supplier.

They only buy at a retail store.

c. Intermediaries

Intermediaries are firms that help company to promote, sell, and

distribute its goods to final buyers. Although Staywhite Laundry Mat has two

branches, it doesnt have any intermediaries since it is not yet a big business.

In future time, they are envisioning in associating with other guaranteed

producers and organizations.

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d. Competitors

There are very few businesses with the same type of service, which is

laundry services, within the city. The identified competitors are the Lavadora

Laundry Care and BDL Laundry Station.

e. Public

Public, as defined, is any group that has an actual or potential interest

in or impact on an organizations ability to achieve its objectives. The

following public sectors helped the business achieved its purpose:

1. Financial Public

Staywhite established its laundry station with their personal

investment. Staywhite started its business with 5 washers and 5 dryers.

This helped them start their operations until they were able to purchase

more washers and dryers and opened another branch with 5 washers

and 5 dryers.

2. General Public

A business needs to be concerned about the general public towards

its services because the publics perception of the business affects its

buying. Since they use word of mouth and Facebook advertising,

general public plays a big role for the business.

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3. Government Public

Governing rules are essential for the business to operate legally.

Failure to comply necessary government permits may consider your

business illegal. Staywhite Laundry Mat has the necessary public

documents when they established the business. Hence, government

public has also an impact for the business.

Societal Environment

a. Demographic Environment

The number of residents of Cotabato City reached approximately 299,438 as

per Philippine Statistics Authority census for 2015, the laundry shop assures

that their business welcomes anyone for as long as they need laundry services.

In addition, the enterprise doesnt have restrictions in terms of gender,

occupation, economic status and the likes.

b. Socio / Cultural Environment

Cotabato City has a diverse society. There are Christians, Muslims and

Lumads who live throughout the city. With that, there is no restriction as to

cultural affiliation or religion for the services offered by the business. The

shop caters Christians, Muslims and Lumads. Moreover, services offered by

Staywhite Laundry Mat do not affect the customers culture.

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c. Political Environment

Staywhite Laundry Mat is a legal business secured with Certificate of

Registration from Bureau of Internal Revenue and approved by the city hall

and Department of Trade and Industry. The business filed and completed

necessary requirements such as business, building, DTI, fire and sanitary

permit.

d. Natural Environment

Changes in the weather brought a little bit of difference in terms of the

operation of the entity. Gross receipts during rainy season slightly increased

compare to dry season, considering that Staywhite Laundry Mat has drying

machines.

e. Technological Environment

Technology is one of the important things that businesses should consider

nowadays. Staywhite Laundry Mat selling point is their high quality washing

machines and dryers directly purchased from United States which made them

unique with their competitors. They also have high end CCTV security

cameras for safety measures, Wifi accessibility and cabled Television for

entertainment purpose. The shop invested enough capital for this because high

quality machines mean high quality of services.

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f. Economic Environment

As the economy of Cotabato City grows which is evident by many

establishments building throughout the city, Staywhite Laundry Mat sees this

phenomenon as an opportunity for the business to gain market share. More

investments mean more employment. Employment requires time and less time

means less work at home. Therefore with limited time, they will have no

choice but to take their laundry to laundry shops. This economic growth rate

of Cotabato City has a huge impact in the business.

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II. Strategy Formulation

A. Internal Factors Evaluation

IF
INTERNAL FACTORS DESCRIPTION REFERENCE
#

1 Affordability of products Strength Operations

Human
2 Advertising strategies Strength Resource/Operat
ions

3 Refreshing and forward market prints Strength Marketing

4 Location Strength Marketing

5 Variety of products Strength Operations

6 No security guard Weakness Management

7 New market player Weakness Marketing

8 Not much advertising coverage Weakness Marketing

9 Small boutique brand Weakness Marketing

10 Operating hours Weakness Operation

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B. External Factors Evaluation

EF
EXTERNAL FACTORS DESCRIPTION REFERENCE
#

Demographic
1 Expansion Opportunity
Environment

2 Increase product range Opportunity Marketing

Demographic
3 Opening of stand-alone store Opportunity
Environment

4 Raise brand profiles Opportunity Marketing

5 Fashion trend Opportunity Marketing

Economic
6 Suppliers Threat
Condition

7 Competitors Threat Competition

Economic
8 Distribution and Customer purchasing Threat
Condition

Economic
9 Economic condition in Cotabato City Threat
Condition

INTERPRETATION:

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C. Critical Internal Factor Evaluation Matrix

IF WEIGHTED
CRITICAL INTERNAL FACTORS WEIGHT RATE
# SCORE

1 Affordability of products 0.10 4 0.40

2 Advertising strategies 0.08 4 0.32

3 Refreshing and forward market prints 0.11 4 0.44

4 Location 0.09 3 0.27

5 Variety of products 0.12 3 0.36

6 No security guard 0.05 2 0.10

7 New market player 0.20 3 0.60

8 Not much advertising coverage 0.06 2 0.12

9 Small boutique brand 0.09 2 0.18

10 Operating hours 0.10 3 0.30

TWAS 1.00 1.00 3.09

INTERPRETATION:

The critical internal factors obtained a weighted average score of 2.35 which means it is above

average. This indicates that the companys strategies are neither effective nor ineffective in

exploiting strength or reducing against weaknesses. The company should improve its strategy

and focus more on how to take advantage of the strength and overcome weaknesses. The major

contributor for the total weighted average score are the businesses High quality machines which

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is the strength which obtained a weighted score of .48 which is the selling point or the edge of

the business. The lowest contributor is the weakness which is No advertisements having .07

weighted score.

D. Critical External Factor Evaluation Matrix

EF WEIGHTED
CRITICAL EXTERNAL FACTORS WEIGHT RATE
# SCORE

1 Expansion 0.20 2 0.40

2 Increase product range 0.10 4 0.40

3 Opening of stand-alone store 0.12 2 0.24

4 Raise brand profiles 0.12 4 0.48

5 Fashion trend 0.06 3 0.18

6 Suppliers 0.10 3 0.30

7 Competitors 0.12 4 0.48

8 Distribution and Customer purchasing 0.10 3 0.30

9 Economic condition in Cotabato City 0.08 1 0.08

TWAS 1.00 2.86

INTERPRETATION:

With the total score of 2.94, the critical external factor evaluation resulted to a positive

assessment which also means it is above average. The major contributor for the total weighted

average score is Few competitors which is the major opportunity of the business and obtained

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a weighted score of .54. The lowest contributor is the threat which is Competitors offer other

services like folding, ironing, etc. having .15 weighted score.

E. Competitive Profile Evaluation Matrix

Gifts and Ideas BDL Laundry Station Lavadora Laundry Care


Competitive
Weight
Factors Weighted Weighted Weighted
Rate Rate Rate
Score Score Score
Quality of Service 0.21 3 0.63 4 0.84 3 .63

Price 0.21 3 0.63 3 0.63 2 .42


High Technological
0.21 4 0.84 4 0.84 3 .63
Equipment
Location 0.19 4 0.76 3 0.57 3 .57
Variety of Services
0.18 1 0.18 4 0.72 4 .72
Offered
TOTAL 1.00 3.04 3.60 2.97

INTERPRETATION:

It is evident in the matrix that there is a stiff competition between the laundry shops. Since

Staywhite Laundry Mat is new to this industry and employs self-service method, it still lacks on

offering services other than laundry unlike its competitors. However, Staywhite edge is their

high technological equipment and its location which have a great impact on their revenue while

BDL Laundry Station and Lavadora Laundry Care edges is their years in the industry having a

better service offerings and tested quality of service.

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F. SWOT Analysis

SWOT Analysis
STRENGTHS WEAKNESSES
S1.Affordability of products W1.No security guard
S2.Advertising strategies W2.New market player
S3.Refreshing and forward market prints W3.Not much advertising coverage
S4.Location W4.Small boutique brand
S5.Variety of products W5.Operating hours

OPPORTUNITIES SO ACTIVITIES WO ACTIVITIES


O1.Expansion SO1(S1, S3, S5 & O5) WO1 (W5 & O4)
O2.Increase product range As the trend in fashion changes, more products The store should have longer operating hours
O3.Opening of stand-alone store should be available for sale to meet the to attract and cater more
O4.Raise brand profiles demands.(PRODUCT DEVELOPMENT) customers.(MARKET PENETRATION)
O5.Fashion trend
SO2(S2 & 04) WO2 (W2 & O2, O5)
Have an advertisement that would make the They should have - on hand, a variety of
name of the store well-known.(MARKET product that will enable them to compete with
PENETRATION) other older stores.(PRODUCT
DEVELOPMENT)
SO3(S4 & O1, O3)
The store is located where there are no nearby WO3 (W1, W5 & O4)
competitors. They should make or at least a Hire a security guard to secure the safety for
stand-alone store to cope with the longer operating hours. The safety of the
competition.(MARKET DEVELOPMENT) establishment will attract more
customers.(MARKET PENETRATION)

THREATS ST ACTIVITIES WT ACTIVITIES


T1.Suppliers ST1 (S3, S5 & T1) WT1 (W2 & T2)
T2.Competitors Find alternative suppliers in case there will be Be able to have products that will compete the
T3.Distribution and Customer shortage of supplies from primary products of the competitors.(MARKET
purchasing supplier.(BACKWARD INTERGRATION) PENETRATION)
T4.Economic condition in Cotabato
City ST2(S1 & T3, T4) WT2(W3 & T3)
Have products with more affordable price to be Have a social media page as a means of
able to attract local customers who patronize advertising since social media is widespread
affordable but quality in Cotabato City.(MARKET
products.(RETRENCHMENT) PENETRATION)

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G. Groupings of Strategies

Strategy SN Activity Description

PRODUCT SO1 As the trend in fashion changes, more products should be


DEVELOPMENT available for sale to meet the demands.
WO2 They should have on hand a variety of product that will
enable them to compete with other older stores.

MARKET SO2 Have an advertisement that would make the name of the
PENETRATION store well-known.
WO1 The store should have longer operating hours to attract and
cater more customers.
WO3 Hire a security guard to secure the safety for longer
operating hours. The safety of the establishment will attract
more customers.

WT1 Be able to have products that will compete the products of


the competitors.
WT2 Have a social media page as a means of advertising since
social media is widespread in Cotabato City.

MARKET SO3 The store is located where there are no nearby competitors.
DEVELOPMENT They should make or at least a stand-alone store to cope
with the competition

BACKWARD ST1 Find alternative suppliers in case there will be shortage of


INTEGRATION supplies from primary supplier.

RETRENCHMENT ST2 Have products with more affordable price to be able to


attract local customers who patronize affordable but quality
products.

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H. Qualitative Schedule of Strategies

STRATEGY 1

PRODUCT DEVELOPMENT ADVANTAGE DISADVANTAGE

S1, S3, S5 & O5 It will require much It happens too quick,


effort and cost maximum trends is 3-4
As the trend in fashion changes, more products months
should be available for sale to meet the
demands.

(W2 & O2, O5) Having the same or There might be too
higher level of quality much idle products.
They should have - on hand, a variety of
shall enable them to be
product that will enable them to compete with the choice of the people
other older stores.

STRATEGY 2

MARKET PENETRATION ADVANTAGE DISADVANTAGE

S2 & 04 Will invite more Costly and may not be


customers even on-line. successful in doing so.
Have an advertisement that would make the
name of the store well-known.
W5 & O4 To attract and cater Additional operating
more customers. expense.
The store should have longer operating hours.

W1, W5 & O4 The safety of the Additional


establishment will administrative
Hire a security guard to secure the safety for expenses.
longer operating hours. attract more
customers.
W2 & T2 Increase the sales and Might result in idle

Be able to have products that will compete the

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products of the competitors. customers products

W3 & T3 Wider range of It is unpredictable and


customers will result in dangerous- that is if
Have a social media page as a means of
increased number of hacked or penetrated.
advertising since social media is widespread in customers
Cotabato City.

STRATEGY 3

MARKET DEVELOPMENT ADVANTAGE DISADVANTAGE

S4 & O1, O3 The business shall Cant be easily detected


accommodate since its location isnt
The store is located where there are no nearby surrounding neighbours known for this type of
competitors. They should make or at least a as their customers businesses.
stand-alone store to cope with the competition

STRATEGY 3

BACKWARD INTEGRATION ADVANTAGE DISADVANTAGE

S3, S5 & T1 There will be no out of Reliability of the new


stock problems. supplier
Find alternative suppliers in case there will be
shortage of supplies from primary supplier.

STRATEGY 3

RETRENCHMENT ADVANTAGE DISADVANTAGE

S1 & T3, T4 Increase in customers, Might not reach the


thus increasing sales break-even point if not
Have products with more affordable price to be
able to attract local customers who patronize and income balanced well thus
affordable but quality products. resulting to a loss.

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III. RECOMMENDATION

The following are the enumerated activities that are suggested and recommended by the

group to be implemented to the business. These activities are based on the analysis and

observations of the proponents.

Recommendation Matrix

Vision: We, the Staywhite Laundry Mat, aim to be the most preferred laundry services business in Cotabato

City.

Mission: To establish value laden relationship with its clients by providing them with convenient,

professional, eco-friendly, efficient, effective and hygienic oriented dry and laundry management

solutions.

ACTIVITY 1

STRATEGIC DIRECTION: Offer discount or other promos to increase number of customers.

KRA PERFORM PROGRA TIMELINE KEY BUDGET OTHERS


ANCE M/ACTIVI PERSON
INDICATO TY
R

Encourage Increase Offer 2017 Marketing none none


customer to revenue discounts onward manager
keep
availing the
service

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ACTIVITY 2

STRATEGIC DIRECTION: Add more machines for faster transactions

KRA PERFORM PROGRA TIMELINE KEY BUDGET OTHERS


ANCE M/ACTIVI PERSON
INDICATO TY
R

Customers Decrease in Purchase 2017- The owner, 400,000- none


are number of more onwards Mrs. Fatima 500,000
accommodat rejected machine Amba
ed clients

ACTIVITY 3

STRATEGIC DIRECTION: Hire at least 2 employees to improve services to customers.

KRA PERFORM PROGRA TIMELINE KEY BUDGET OTHERS


ANCE M/ACTIVI PERSON
INDICATO TY
R

Able to Increase Hire more 2017 Human 16,000 none


address number of employees onwards Resource
immediately customers as manager
the needs of well as
customers revenue;
Positive
perception
about the
business

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ACTIVITY 4

STRATEGIC DIRECTION: Add security guards in case of fortuitous events.

KRA PERFORM PROGRA TIMELINE KEY BUDGET OTHERS


ANCE M/ACTIVI PERSON
INDICATO TY
R

Encourage Increased Hire security 2017- Manager, 15,000 none


customers to safety guard onwards Mr. Kelvin
stay and precautions Kesid
keep on of the
availing establishmen
their t
services
without
worries
about their
safety

ACTIVITY 5

STRATEGIC DIRECTION: Expand their working space by using the space on front of the place and
offer other services such as folding and ironing.

KRA PERFORM PROGRA TIMELINE KEY BUDGET OTHERS


ANCE M/ACTIVI PERSON
INDICATO TY
R

Encourage Increased Expand and 2017- The owner, 10,000- none


to number of offer other onwards Mrs. Fatima 15,000
patronized customers services Amba
the service
of Staywhite Increased of
Laundry revenue
Mat

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Implementation and Control: The group recommends market penetration to be the alternative

strategy to be used if ever the service development fails due to uncontrollable factors.

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IV. APPENDICES

Exhibit1. External view of the


business

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Exhibit2. High powered Washing and
Drying machines at Staywhite
Laundry Mat.

Exhibit3. Installed television for customers


entertainment.

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Exhibit4. Water tank for storage of water
being used for laundry.

Exhibit5. Laundry supplies


of Staywhite Laundry Mat.

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Exhibit6. Researchers at
Staywhite Laundry Mat.

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V. Bibliography

Philippine Statistics Authority population census as of 2015

Facebook Page of Staywhite Laundry Mat

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