Professional Documents
Culture Documents
(Cloth Pads, Cloth Diapers, Sewing Supplies, Other Handmade Items Sewn
with Love)
A Strategic Plan
Submitted by:
Cunanan, Kisha S.
Flores, Jatrix E.
F433
Strategic Management Plan for Made by Pearl 2
HOLY ANGEL UNIVERSITY
TABLE OF CONTENTS
4.2
Internal Environment
Management/Organization ----------------------------------------22
Marketing ------------------------------------------------------------23
Financial
-------------------------------------------------------------28
Financial Ration/Financial Projection----------------------------30
Corporate Social Responsibility ----------------------------------36
Assessment: IFE
----------------------------------------------------37
V. Strategy Formulation
5.1 Grand Strategy--------------------------------------------------38
5.2 TOWS/SWOT Matrix -----------------------------------------39
5.3 The Internal-External Matrix---------------------------------45
5.4 QSPM -----------------------------------------------------------47
I. Executive Summary
This strategic management paper aims to develop feasible strategies for Made by
Pearl Sewing Services Company. Made by Pearl, was established in February 2015 by
Jo Anne Pearl H. Tadeo. Aside from being home-based, Made by Pearl has expanded
its horizon domestically and e-commercially. The Owner is being invited regularly by the
City of San Fernando, Pampanga Tourism Office to display and sell its merchandises in
various mall activities through bazaars in Pampanga (SM, Robinsons, and Vista Mall).
This paper provides a discussion of the critical success factors for the company. Made by
Pearl Sewing Services Company provides high quality of eco-friendly and cost-effective
products that are valuable, useful and beneficial not only for human consumption but
most importantly, those that can help mitigate our environmental issues to date.
This paper provides a discussion of the critical success factors for the company.
The company makes sure that they provide their customers the quality of products that
they deserve and attend to the needs of their customers immediately. In general they also
make sure that the products that they offer are safe and useful. However, Made by Pearl
Finally, this paper concludes that the best strategy for Made by Pearl Sewing
the market. Made by Pearl Sewing Services can use this strategy to improve their target
market that they will cater for the company’s growth and profitability.
impacts of practices that are not good and environmentally-sound are now being felt after
many years, leading to the popularity of eco-friendly materials and processes. Eco-
friendly products reduces carbon footprint in the atmosphere thus eliminating the effects
to global warming which better for our environment. Most eco-friendly products are
Everyone wants to give their family the best; whether that means the best food or
the highest quality healthcare, every parent or guardian is looking to provide their
children with the best of the best. When looking into products for families, it is important
to consider all of the effects of the products used. Many of these products are sneaky, and
may use harsh or even toxic chemicals to make their product in the cheapest way
Some buyers have done their research and have opted out of dangerous products
and have chosen to use eco-friendly products, which benefit both the Earth and their
families. Not knowing what goes into a product that a family uses regularly can be
worrisome for many families, especially those with children. Many are currently stressing
Strategic Management Plan for Made by Pearl 5
HOLY ANGEL UNIVERSITY
only buying eco-friendly products, but what are these products, and why are they the
better option?
can get more complicated than that, as there are many factors of something that might be
“harmful to the environment.” So many different things can negatively influence the
environment, such as not using proper procedures when disposing of products. However,
there are many benefits to using eco-friendly products that are not simply centered on the
health and well-being of the Earth, but also the health and wellbeing of your family.
Although many companies and their products promise to be eco-friendly, they can
misconstrue their information, leaving consumers confused and often blindly buying their
products. When shopping for eco-friendly products, look for lower cost and healthier
lifestyle. Eco-friendly products may seem to be more expensive, but long-term they are
actually more cost efficient. Eco-friendly products tend to last much longer. These
products are typically made from recycled materials and are sturdy, withstanding most
drops, kicks, and dishwashers. Eco-friendly products may have a larger sticker price, but
since they last longer, it is an investment that will pay off. Along with the eco-friendly
benefits, there are also personal benefits that coincide with using all-natural products.
Plastics, for example, are known to have BPA, lead, and other harmful chemicals that can
cause many different illnesses and diseases in both children and adults. For adults, the
risks include diabetes, heart disease, autoimmune diseases, and reproductive system
abnormalities. For children, it can cause premature puberty, diabetes, stunted growth, and
autoimmune disorders. Eco-friendly, all natural products ensure safety from all dangerous
Strategic Management Plan for Made by Pearl 6
HOLY ANGEL UNIVERSITY
chemicals, and allows families to avoid risky additives that can cause any of these issues.
Using eco-friendly products improves quality of life in terms of mortality, age, diseases,
and illnesses. They ensure the safety of families and the planet.
Overall, these products are cutting edge, modern, and will often save you money
and allow you to avoid wastefulness, but they are more than just good for you. In today’s
world, the planet needs our help. Our abuse and misuse of resources has put the planet in
a difficult predicament, and we are the only ones that can stop the detriment. While it can
be difficult to make a huge difference as one person, conserving resources and using eco-
friendly products is a great way for each person to participate in the preservation of our
preservation of the resources provided from the planet, such as metals, plastics, and even
water. If more people use eco-friendly products, the cost of other products will go down,
There are now companies producing these eco-friendly products that helps to
conserve the beauty, resources, and inhabitability of the planet, which is important to our
everyday decisions which positively affect the planet. They are both good for families
and for the planet, and companies producing eco-friendly products provide consumers
with the option to choose responsibility over frivolity. These eco-friendly products sold
by different companies are both good for the environment and safer for consumers, they
are the smart choice for families everywhere. These are some of the companies producing
Strategic Management Plan for Made by Pearl 7
HOLY ANGEL UNIVERSITY
these high quality eco-friendly and cost-effective products that are valuable, useful and
Gudrun business idea is to make colorful clothes and home textiles in natural
functional and versatile so it can be mixed and matched in both the short and long term in
husband and wife team of creative minds with backgrounds in furniture, wood working,
guitar building, art and design. Our company creates sustainable handmade clothing,
using eco-friendly and low impact materials. We source locally whenever possible
because we believe in the transparency of our process from the plant to the garment. Not
fibers, we feel it is just as important to know who made your clothes and to support Made
in America manufacturing.
Our design studio is located in Rockford, Michigan. It was built in 2015 with
partly salvaged and reclaimed materials. Here, a team of talented individuals cut, sew,
wash and dye, tag, iron and ship our unique pieces. We built the studio to fit exactly, what
our company needed: a screen printing lab, a dye room, and unique shelves and tables for
every tool to fit and function just the way it’s supposed to. From our hands to your
doorstep, we are re-envisioning the way clothing is made and the value behind it.
Strategic Management Plan for Made by Pearl 8
HOLY ANGEL UNIVERSITY
Through the years, Assessment helps reduce the impact on the environment and
preserves natural resources. In short this company is eco-friendly in our nature. Being
eco-friendly means the product does not harm the environment, both in the production of
the item and in use of the product. Not only are these products healthier for the
environment, but they can also be healthier for you! A lot of products contain harmful
chemicals that put us at the risk of developing illness and diseases. Eco-friendly products
eliminate all of these risks by using natural products and avoiding additives we are
unaware of industry-leading cloth diaper brands including GroVia and Sloomb to a wide
variety of cloth diapering accessories, we have everything you need to ensure you are
giving your baby the best in natural parenting. Whether you are looking for a newborn all
in one, a hybrid shell or a toddler trainer, our stock of modern cloth diaper products
proves that you don’t have to sacrifice fun and fashion to be earth-friendly and functional.
GladRags are possibly the best-promoted brand of reusable menstrual pads on the
market. They’re handmade in the USA from soft, breathable cotton. It can be mind
blowing for women who, up until discovering this product, believed that chafing and
irritation from plastic products were just had to put up with. Unlike some other reusable
menstrual pads. GladRags don’t have a plastic backing, which means less irritation. And
everything with reducing waste in mind. We live in a world full of chemicals and cheap
items that do not deliver what they promise. There is a global lack of eco-friendly modern
design and such a waste of resources. Many of us do not realize the full extent of the
Strategic Management Plan for Made by Pearl 9
HOLY ANGEL UNIVERSITY
chemicals we apply on ourselves and on our children – from food, cosmetics, clothing,
a.) History
Made by Pearl Sewing Services or most popularly known as Made by Pearl, was
established in February 2015. The name of the company Made by Pearl was named after
the owner. Jo Anne Pearl H. Tadeo is the owner whose primary purpose of promoting the
use of various eco-friendly products instead of the disposable ones, while helping saving
our Mother Earth at the same time. These products are made-to-order and washables and
include:
Cloth Diapers
Cloth Wipes
Eco Bags
Kid’s Dress
Strategic Management Plan for Made by Pearl 10
HOLY ANGEL UNIVERSITY
Yoga Bags
Terno Doll Dress and Cloth Diaper (Baby Alive and other Dolls)
Most of the items mentioned above can be personalized by choosing the fabric the
customer desires based on the available stocks and by adding embroidery designs. All of
these are being sewn by the Owner with the help of family members. Cloth and other
sewing supplies are bought from Taytay, Rizal market and from various online sellers
also.
Aside from being home-based, Made by Pearl has expanded its horizon
domestically and e-commercially. The Owner is being invited regularly by the City of
San Fernando, Pampanga Tourism Office to display and sell its merchandises in various
mall activities through bazaars in Pampanga (SM, Robinsons, Vista Mall) like the Great
sponsored and trade fairs by the Department of Trade and Industry (DTI) in the region
and other areas. Made by Pearl also utilizes e-commerce by means of Social Media like
Facebook, Instagram and the now known and sought-after marketing platform Shopee.
Various re-sellers of the items are spread nationwide. Mode of payments are cash, cash-
on-delivery (COD), bank deposits and transfer through BDO and BPI, and other money
Strategic Management Plan for Made by Pearl 11
HOLY ANGEL UNIVERSITY
transfer facilities like LBC, Palawan Express and Cebuana Lhuillier. Through the years,
products that are valuable, useful and beneficial not only for human consumption but
most importantly, those that can help alleviate our environmental issues to date.
Vision
The Made by Pearl Company has no vision thus the researchers formulated
proposed vision, “To be one of the well- known company that produce unique eco-
Vision Analysis
Sense of noble Yes Made by Pearl have a noble purpose and they
purpose are socially responsible that they always consider
the benefit of the community.
Mission
The company Made by Pearl has no mission thus the researchers formulated
products that are valuable, useful and beneficial not only for human consumption but
most importantly, those that can help alleviate our environmental issues to date.”
Mission Analysis
Goal
Strategic Management Plan for Made by Pearl 13
HOLY ANGEL UNIVERSITY
To provide the highest level of quality and service, above and beyond
competitors.
Objectives
and customers.
sustainability
environmental impacts
impact the operation of business. The business must act or react to keep up its flow of
operations. The external environment can be broken down into two types: the micro
environment and the macro environment. The micro environment consists of the factors
that directly impact the operation of a company. The macro environment consists of
Strategic Management Plan for Made by Pearl 14
HOLY ANGEL UNIVERSITY
general factors that a business typically has no control over. The success of the company
Economic Forces
and nations make choices on allocating resources to satisfy their wants and needs, and
tries to determine how these groups should organize and coordinate efforts to achieve
maximum output. Made by Pearl items can be personalized by choosing the fabric the
customer desires based on the available stocks and by adding embroidery designs. All of
these are being sewn by the owner with the help of family members. Cloth and other
sewing supplies are bought from Taytay, Rizal market and from various online sellers
also.
It is a human population viewed in its ecological context and as one of the many
other eco-friendly and cost-effective products that are valuable, useful and beneficial not
only for human consumption but most importantly, those that can help alleviate our
actions may be on local, regional national or international level. Business owners and
managers pay close attention to the political environmental to gauge how government
Environmental Forces
Environmental means relating to the natural world and the impact of human
activity on its condition. Made by Pearl primary purpose is promoting the use of various
eco-friendly products instead of the disposables ones, while helping saving our Mother
Competitors
The competitors of Made by Pearl are the following: Cloth diaper which is a one-
stop-shop for everything cloth diaper-related. And Mommy Chinay: Your Bagets Nanay
which is a store that sells cloth diaper and baby clothing online and blogs that give tips
often used for assessment of current business conditions. The EFE matrix is a good tool
to visualize and prioritize the opportunities and threats that a business is facing. External
Strategic Management Plan for Made by Pearl 16
HOLY ANGEL UNIVERSITY
factors assessed in the EFE matrix are the ones that are subjected to the will of social,
The scores for an EFE Matrix can range from a low of 1.0 to a high of 4.0. The
closer the score is to the upper range the better the company is internally. With the total
weighted average of 2.63, Made by Pearl exactly average internally. This signifies that
the program is adapting to the changes in the environment that gives impact to the course.
The program is doing well in optimizing the use of opportunities and reducing the
possibility of threats, also have a significant amount for the company to improve
internally.
Opportunities
Threats
Strategic Management Plan for Made by Pearl 17
HOLY ANGEL UNIVERSITY
NOTE: The factor weight ranges from 0.0 (not important) to 1.0 (all-important).
While the ratings are as follows: 4= major opportunity, 3= minor opportunity, 2=
minor threat, 1= major threat
Mommy
Bagets Nanay
Critical Success Ratin
Weight Rating Score Rating Score Score
Factors g
1) Product
0.25 4 1.00 3 0.75 1 0.25
Range
2) Product
0.20 4 0.80 4 0.80 4 0.80
Quality
3) Customer
0.20 3 0.60 3 0.60 2 0.40
Service
Strategic Management Plan for Made by Pearl 18
HOLY ANGEL UNIVERSITY
4) Geographical
0.15 2 0.30 2 0.30 1 0.15
coverage
5) Market Share 0.20 1 0..20 2 0.40 1 0.20
Note: The ratings values are as follow: 1 = major weakness, 2 = minor weakness, 3 =
Competitive Profile Matrix has five critical factors which are the key attributes
that determine success within the industry. These five critical factors are the Product
Range, Product Quality, Customer Service, Geographical Coverage and Market Share.
Critical success factors will differ from industry to industry and be made up of both
internal and external factors. Critical success factor can be assigned a weighting from 0.1
to 1.0, having a lower weight means that the factor is not particularly important in
determining the success of a business, and a higher rating means that the factor is
critically important in determining the success of a business. The weight of the factor
Product Range is 0.25, then Product Quality with 0.20 weight, Customer Service with a
weight of 0.20, the Geographical Coverage has 0.15 weight and lastly the Market Share
with a weight of 0.20. In every company that are chosen it will be given a rating based on
the opinion of the companies’ consumers. The Made by Pearl having a rating of 3 in
Product Range, which means that the range of the company's product is broad but there
are still other products that other companies offer that the Made by Pearl does not. In
terms of the quality of the product by Made by Pearl has a rating of 4, because the
Strategic Management Plan for Made by Pearl 19
HOLY ANGEL UNIVERSITY
feedbacks that are given by the consumers show that the company has a good product
quality. The Customer Service has a rate of 3, they are good at answering the question of
the customer the only setback is that in Mommy Chinay and Cloths Diaper they respond
to customer inquiries quicker than the Made by Pearl which take hours or a day before
they answer. The Made by Pearl Geographical Coverage has a rate of 2 mainly because it
is mostly known in Pampanga, and not like in other places. Lastly, is the Market Share of
Made by Pearl having a rate of 2 because their market focuses mostly on baby products
and some things for women. Base on the Competitive Profile Matrix the biggest
competitor of Made by Pearl is the Mommy Chinay who also sells cloth diapers and other
baby products, the advantage of Mommy Chinay over Made by Pearl is the way Mommy
Chinay advertises its products through vlogging and giving some tips about babies for the
parents.
threats and opportunities that would give an impact to a company. The Porter's Five-
Forces Model enables a firm to know the intensity of the competition in the market.
Through this information, an organization can make decisions that will not harm its
products and services. Instead, it will be an advantage to change strategies and act
immediately to the threats made by other competing firms. The following are the analysis
Rivalry is one of the main factors in surviving the company. If you know your
competitor it is an advantage because there is a big possibility for your firm to know how
to target their weaknesses and build your own strategy by identifying opponents
weaknesses. Based on the current situation of Made by Pearl, the rivalry among its
competitors is too high because in the baby, children, and women’s clothing company
Unending growth of business may lead to more competitors and we cannot avoid
that situation but we can lessen their market value and increase or maintain ours thru
catering the demands of our customers properly and giving them a great satisfaction.
There will always be a substitute product from another industry that offers similar
benefits to the consumer as the product produced by the firms within the industry.
In this industry, suppliers play a vital role because they are the one who provide
materials that are essential to the development of the products sold by the company. A
permanent supplier relieves the clothing company from possible shortage of materials.
Strategic Management Plan for Made by Pearl 21
HOLY ANGEL UNIVERSITY
Consumers prefer less cost. Less cost would mean less profit to a clothing
company. It will surely affect the industry because consumers are the one who purchase
Potential Development of
Substitute Products
HIGH
A.) Management/Organization
Strategic Management Plan for Made by Pearl 22
HOLY ANGEL UNIVERSITY
The owner of the entity which is also the founder of the entity is Jo Anne Pearl
Hilario. Through her knowledge, skills and hard work she established an entity that offers
a variety eco-friendly products with reasonable contract prices. Made by Pearl company
does not have its own physical store that’s why the entity only have few employees. The
figure below shows the organizational chart of the entity that creates a great team and
organization.
Owner
Jo Anne Pearl is the owner of the company Made by Pearl whose primary purpose
of promoting the use of various eco-friendly products instead of the disposable ones,
while helping saving our Mother Earth at the same time. The two volunteer members
indicated in the organization chart are the family members of Pearl the ones who help her
in her business.
Made by Pearl focuses on promoting the use of various eco-friendly products instead
of disposable ones to people who want to make a change and help our mother earth by
simply supporting the products. Not only are these products healthier for the
environment, but they can also be healthier for the consumer. A lot of products contain
harmful chemicals that put us at the risk of developing illnesses and diseases. Thus, the
company assures that its products are risk free by using natural products and avoiding
Made by Pearl has its set of marketing strategy to pursue its objectives. The strategy
has four broad levels of marketing decision, specifically, the product, the price, the place,
C.1. Products
The company offers a wide range of eco-friendly products that can be used by a
lot of people.
Strategic Management Plan for Made by Pearl 24
HOLY ANGEL UNIVERSITY
Cloth Diapers
Cloth Wipes
Eco Bags
Kid’s Dress
Yoga Bags
Terno Doll Dress and Cloth Diaper (Baby Alive and other Dolls)
Essential Oi Bracelets
C.2. Price
While at face value, the products that are considered “eco-friendly” may be more
expensive in comparison to the name brand products that we are used to, the company
assure that the products can actually be money-saving in the long run. This is because
they typically last longer since they are made from recycled materials that tend to be
Aside from being home-based, Made by Pearl has expanded its horizon
domestically and e-commercially. The Owner is being invited regularly by the City of
San Fernando, Pampanga Tourism Office to display and sell its merchandises in various
mall activities through bazaars in Pampanga (SM, Robinsons, Vista Mall) like the Great
sponsored and trade fairs by the Department of Trade and Industry (DTI) in the region
and other areas. The place of their production is on Subd., Sto Nino, SCFP, 2000.
Strategic Management Plan for Made by Pearl 28
HOLY ANGEL UNIVERSITY
C.4 Promotion
Made by Pearl also utilizes e-commerce by means of Social Media like Facebook,
Instagram and the now known and sought-after marketing platform Shopee. Various re-
sellers of the items are spread nationwide. Mode of payments are cash, cash-on-delivery
(COD), bank deposits and transfer through BDO and BPI, and other money transfer
D. Financial Aspect
would not survive without it. The company has an accountant who is responsible for
making the financial statements that can determine the credibility and profitability of the
business. This financial statement shows the summary of the assets, liabilities and the
equity of the business. Overall, having a financial statement can help the business in the
decision making
The table below shows the financial record of the business for the past 3 years.
Made By Pearl
Made By Pearl
Made By Pearl
Financial Audit
The financial condition of Made by Pearl is one of the best methods in measuring
the competitive position and attractiveness to its possible investors in the future. It is
effective strategies. Financial statements for the years 2015, 2016 and 2017 of Made by
I. Liquidity Ratios
liabilities and also their long-term liabilities as they are due. It shows the cash levels of a
company and the ability to turn others assets into cash easily. It is done by comparing the
a. Current Ratio
It measures the company’s ability to pay its short-term obligations with its current
assets. As for the Made by Pearl, it has a 2.35 current ratio for the year 2015 that signifies
that the company is can cover its short-term obligations and will not face a problem
regarding the settlement of any obligations. In the year 2016, its current ratio increased to
3.40 that show a great sign for the company to improve its products and improve its
quality products. In the year 2017, it yield a 4.49 ratio that showed that the company can
still cover its short-term debts and able to operate throughout the years. In the past three
years of the operation its current ratio shows that the company is able to settle its
obligations through its assets without having a problem of being insolvent, it also shows
that every year its current ratio is increasing. In this, market development strategy can be
used by always maintaining the current assets properly and secure that it is always greater
than the liabilities to ensure that the company can cover its short-term obligations that can
Current Ratio
It shows a percentage of total assets that were financed by creditors, liabilities and
debt rather than equity. It is used to determine the financial risk of a business. A ratio of
greater than 1 indicates that a proportion of the assets are being funded by debts, while a
low ratio indicates that most of the assets funding are coming from the equity. A ratio that
is greater than 1 also indicates that the company may be putting itself at risk of being able
Shown on the table below is the Made by Pearl debt ratio. In the year 2015 it has
a percentage of 43%, in 2016 it has a percentage of 29% and in the year 2017 it has a
percentage of 22%. In the 3 years of operation, Made by Pearl has a ratio that is lower
than 1 that indicates the most of the assets funding came from the equity and also shows
that the company itself can able to cover its liabilities, debts and creditors. Market
development strategy can be used with these ratios that can also add up to the credibility
various asset, liability and capital accounts into cash or sales. The faster the company is
able to convert its assets into cash, the more efficient it runs.
Strategic Management Plan for Made by Pearl 33
HOLY ANGEL UNIVERSITY
to its expenses and other relevant costs incurred during a specific period of time.
Is a tool that indicates the company’s overall financial condition. It discloses the
percentage of funds left for the company for its operation, debt settlement and other
expenses and able to yield profits. It is calculated by comparing the sales less cost of
goods sold with the total sales. A higher percentage of gross profit margin indicates that
the company have sufficient fund for its operation and settling its obligations. As shown
below, the gross profit margin of the company is very high. It indicates that the company
has a large amount of funds to cover its operating expenses. The strategy that can be used
by the company is the market development. Through the results of gross profit margin, it
can attract more consumers because consumers know that the company is credible
enough to be trusted
It is computed by dividing the net income by the total sales. It reveals the total
profit that is generated. A higher net profit margin shows more efficiency of the company
at converting its revenue into actual profit. As shown below, the Made by Pearl’s net
profit margin is not too high but it indicates that even though it has a low percentage it
can still manage to have profits. With this, the company can use the product development
strategy, wherein the company can introduce new products by improving its product
range so it can able to offer a wide variety of products that is eco-friendly, new and in
Financial Projections
Financial projections are important they give an estimated financial statement for
the next year of operation. Therefore, these are one of the important factors to determine
the strategies that will be used. Significant variance may provide early warnings signs for
problems that may arise in the operation and with these signs can be used to improve the
past strategies.
comprehensive income and statement of financial positions were able to project. In the
2018 operation, the company’s projected sale will become P102,240. While the projected
Strategic Management Plan for Made by Pearl 35
HOLY ANGEL UNIVERSITY
cost of sales for 2018 is P23,150 which is higher than the cost of sales acquired in the
year 2017. Overall, the projected net income for 2018 is P15,089.76 which is higher than
the net income acquired from 2017. It signifies that the company is financially stable and
also capable of settling its obligations. It also signifies that the company still needs to
develop its market to gain higher income. With this, Made by Pearl can use the market
development strategy wherein they will introduce its existing products to a wider range of
target market that can increase the market share of the company and also to be well
known in the market. The company can also use the product development strategy
financial position also reflects a positive impact in the company. The projected statement
of financial positions shows that at some point is higher than the previous year. But it also
shows that the company can cover or settle its liabilities with its existing assets and still
can able to gain a higher income. With these, it can also add up to the credibility of the
company.
by the company that integrates social and environmental factors to their business and also
in interacting with the clients. It is a way to balance its social, environmental and
economic factors that impacts the management of the business. Made by Pearl is an entity
with few workers, in this way the company helps the people to have their job and also it
Strategic Management Plan for Made by Pearl 36
HOLY ANGEL UNIVERSITY
tool used to audit and evaluate firm’s internal environment and to reveal its strengths and
also weaknesses. It also provides a basis for identifying and evaluating relationships
among those areas. As shown in the table below, the IFE Matrix comprises factors
(strengths and weaknesses) that affect the organization. For each factor, a weight is
The strengths are the strong areas which are used to overcome weakness and
indicates advantages that are capable to enhanced and modified to transform into
beneficial output. Weaknesses cover the weak spot that needs to be reduced. We need to
be prioritizing to minimize its impact because competitors are always searching for the
loop holes in your company and put their best effort to capitalize on the identified
weaknesses.
As the IFE matrix contains many factors, the total weighted score range is from
the lowest 1 to the top 4, the average score being 2.5. Total weighted score significantly
lower than the 2.5 of enterprise & apos signals that the internal situation is weak, while
the score much higher than 2.5 of the enterprise & apos;s internal situation is strong. The
closer the score is to the upper range the better the company is internally. With the total
weighted average of 2.51, Made by Pearl exactly average internally. This indicates that
Strategic Management Plan for Made by Pearl 37
HOLY ANGEL UNIVERSITY
entity is not a weak company internally but that they also have a significant amount for
Strengths
Weaknesses
NOTE: The factor weight ranges from 0.0 (not important) to 1.0 (all-important). While
the ratings are as follows: 4= major strength, 3= minor strength, 2= minor weakness
and 1= major weakness.
V. Strategy Formulation
It has four strategy quadrants. The first quadrant represents strategies for
maintaining rapid growth when you have a strong competitive position. The second offers
rapid-growth strategies when you have a weak competitive position. The third provides
strategies that relate to a weak competitive position and slow growth. The final quadrant
lists strategies appropriate to strong competitive attributes with slow market growth.
and continue to create rapid growth. The company has developed its own eco-friendly
product to cater the needs of consumer and to make sure that the shortage of necessary
materials will be avoided. This Eco friendly product helps mother nature also it increases
the product that the company has to offer. Its products could satisfy and cater the needs of
the clients, and expensive contract price would not be a problem because the company
offers products with good quality products and reasonable prices. It should concentrate on
development) and continue selling products toward others (market penetration) and
improve its product that can meet all the demands of the clients (product development).
Strategic Management Plan for Made by Pearl 39
HOLY ANGEL UNIVERSITY
Quadrant II Quadrant I
1. Market Development (S1) 1. Market Development
2. Market P enetration (S2) 2. Market Penetration
3. Product Development (S3) 3. Product Development
4. Horizontal Integration 4. Horizontal Integration
5. Divestiture 5. Divestiture
6. Liquidation 6. Liquidation
match its internal strengths, and external opportunities (SO) to develop ‘maxi-maxi’
strategies – those with the greatest potential for success. For example, strengths such as
high brand recognition or customer loyalty could be combined with the opportunity to
Strength-Opportunities Strategy
Made by Pearl can take advantages in its own strengths to create a new
opportunities that can widen its market advantage over other sellers or companies. It must
produce a new product with higher long lasting uses that can withstands wear and tear but
Strategic Management Plan for Made by Pearl 41
HOLY ANGEL UNIVERSITY
that still an organic product. Made by Pearl can also use its products to make product
promo for the Made by Pearl customers. The Made by Pearl must reserve or maintain its
organic/clothing materials that will be available to use so that there will be no shortage of
materials and to make sure that the materials are high quality.
Made by Pearl weakness can also be of use to make its own opportunities that can
be utilized for its market advantages. Use its current situation, having no fixed locations,
to widen its popularity over other sellers and use mobile technologies to advertise its own
products. Made by Pearl can also make shipping to its customer especially because they
usually moves from one location to another, so that other consumer from their previous
The threats of Made by Pearl can be minimized using its strengths. The Made by
Pearl should highlight its quality of its products offered; availability of the products such
as using mobile technologies for the consumers can contact the Made by Pearl. The
company also can think of some way to minimize its product cost without lowering the
quality of its products, for it could be more affordable to those other consumer with low
budget.
The company could think of products that cannot be easily imitated by other company for
them to have a higher competitive advantage over other sellers. The Made by Pearl
should also invest first to a fixed store location for them to easily locate. The company
can also enlarge its target market by not only considering the baby diapers and women's
belongings but also make products that can also be used for babies and mothers so that it
can add up to the credibility and the market share of the company and also increase its
competitiveness in the market. The company should also branch out to other places so
that consumers who does not want to buy through online can also go to a physical store,
by branching out the company should also hire some new capable employees.
STRENGTHS WEAKNESSES
Strategic Management Plan for Made by Pearl 43
HOLY ANGEL UNIVERSITY
products.
can be personalized.
increasing. competitors.
store location, they will be higher long lasting uses its popularity over other
able to widen their that can withstands wear sellers and use mobile
popularity in a community and tear but that still an technologies to advertise its
Strategic Management Plan for Made by Pearl 44
HOLY ANGEL UNIVERSITY
identifies and develops Use its products to make direct order to its customer
new market segments for product promo for the especially because they
amounts of startup capital. S1: Market Development other consumer from their
O4. Use of a digital Reserve or maintain its previous location can still
sufficient in the market. to make sure that the Widen its target market by
(W3:O2)
Technology could affect technology to improve the products that cannot be easily
T2. Changes that alter the S2: Product competitive advantage over
T3. Inflation in the price offered; increase the The company can also
needed for the product and without increasing the not only considering the baby
T4. Inflation in the price S1: Market Development products that can also be
of rents for the S2: Product used for babies and mothers
T5. Almost the same level Adjust the CSR related to O1: Market Penetration
working conditions and strategic position of a business. The Internal External Matrix or
short IE matrix is based on an analysis of internal and external business factors which are
The IE matrix works in a way that you plot the total weighted score from the EFE
matrix on the y axis and draw a horizontal line across the plane. Then you take the score
calculated in the IFE matrix, plot it on the x axis, and draw a vertical line across the
plane. The point where your horizontal line meets your vertical line is the determinant of
your strategy. This point shows the strategy that your company should follow.
On the x axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99
represents a weak internal position. A score of 2.0 to 2.99 is considered average. A score
of 3.0 to 4.0 is strong. On the y axis, an EFE total weighted score of 1.0 to 1.99 is
considered low. A score of 2.0 to 2.99 is medium. A score of 3.0 to 4.0 is high.
According to table, the IFE total weighted score is 2.51 (x-component), while the
EFE total weighted score is 2.63 (y-component). In the figure shown below, the
Strategic Management Plan for Made by Pearl 47
HOLY ANGEL UNIVERSITY
company falls to cell V under region 2, which signifies that the company must hold and
maintain its position. This implies that the company should pursue the strategies that are
focused on market penetration and product development. The focus of market penetration
is to sell its existing products to gain a higher market share. While the focus of product
2.51
High
I II III
(3.00-4.00)
Medium
IV V VI
2.63
(2.00-2.99)
Low
VII VIII VIII
(1.00-1.99)
5.4 The Quantitative Strategic Planning Matrix
for comparing feasible alternative actions. It indicates which alternative strategies are
best. The QSPM uses inputs from analyses like the EFE Matrix, IFE Matrix, CPM
Matrix, coupled with TOWS Matrix, IE Matrix, and Grand Strategy Matrix. The QSPM
requires assigning of ratings, which are called Attractiveness Scores (AS). The
given is based on how a company’s strategy enables it to either capitalize on the strength,
The strategies in the QSPM were drawn from the Grand Strategy Matrix. Among
the seven strategies given in Quadrant I, two of them were chosen namely: Market
means that particular strategy is deemed more attractive for a given factor, as compared
to other strategies.
Overall, the results of the QSPM for Made by Pearl reveal that it should give
more attention to developing its market. The “Market Penetration” strategy got the
highest sum total attractiveness score of 4.16, followed by “Market Development” which
has a total of 3.95, and “Product Development” which has a sum total attractiveness score
of 3.75. In conclusion, the firm should focus more on developing its product.
2 There is a continue
market development by
upgrading or expanding 0.12 3 0.36 3 0.36 3 0.36
its existing eco-friendly
Strategic Management Plan for Made by Pearl 49
HOLY ANGEL UNIVERSITY
products.
Threats
1. Advancement of the 0.12 3 0.36 3 0.36 4 0.48
Technology could affect
the Competitive
advantage of the
Company
3. The company’s
workers are competent 0.10 2 0.20 2 0.20 2 0.20
and hardworking.
5. Products can be
imitated by other 0.09 1 0.09 1 0.09 1 0.09
competitors.
Total 1.00 1.95 1.63 1.31
Sum Total
Attractiveness Scores 4.16 3.95 3.75
The following strategies can be pursued by Made by Pearl in order to expand its
market share:
An effective strategy for the business marketing plan will help Made by Pearl to
grow its business by advertising its new creative yet eco-friendly product. The company
should develop a strategy that advertises its new product that shows all the features of the
new product and to increase the company's competitive advantage over others. Market
conditions vary in its new product across the manufacturing industry, with different rates
of growth in public that the company can increase its market share, making it important
to identify the place where it can increase more of its competitive advantage. Made by
Pearl’s strategy should take account of opportunities for making a new product.
Strategy 2: Find a reliable supplier and build and maintain a good long-term working
relationship.
company must develop and nurture great relationships with the existing supplier. Having
a strong relationship with the supplier allows us to build better structures. For one, a
course, the company wants quality materials because it will show in the quality of the
products so that the product can function the way it’s supposed to. Made by Pearl aims
Strategic Management Plan for Made by Pearl 52
HOLY ANGEL UNIVERSITY
for quality material because the products that will be manufactured will also be the
company's name. Made by Pearl have a reputation to uphold and therefore, they need to
do great work with the availability of the material and also the quality to create a good
quality product.
Made by Pearl best consumers’ top priority is the finished outcome of their
products. The company should create an atmosphere of trustworthiness. This will result
Made by Pearl needs to keep an eye on all trends. These will help Made by Pearl
to avoid struggling place, while also pinpointing industry segments on to rise in its
competitive position over others. Knowing these shifts of the trends, Made by Pearl can
focus on gaining revenues from new products that can trail the trends in the market.
Additionally, Made by Pearl can stay ahead of the game by predicting which product
2. Create As
Owners No
detailed product frequent
and additional
Strategy 1: feature that sets as
volunteers cost
Develop expectations possible
ways to
As
create
3. Updating Owners No
frequent
competitive
results of and additional
as
new
finished products volunteers cost
possible
product
1. Find a
No
supplier who Owner / Continuou
additional
could supply Manager s
cost
materials on time
2. Negotiate with
No
suppliers about Owner / Continuou
additional
the cost of Manager s
cost
materials
Strategy 2: 3. Make the
No
Find a suppliers as Owner / Continuou
additional
reliable construction Manager s
cost
supplier materials partner
4. Choose a
and build
supplier which No
and Owner / Continuou
offers materials additional
maintain a Manager s
Strategic Management Plan for Made by Pearl 54
HOLY ANGEL UNIVERSITY
Not all of us are aware of what exactly environmental pollution means, or rather,
pollutions that bring about a change that is against the laws of nature. It is a change that
affects, in a harmful manner, the elements of water, air and land. The environmental
pollution facts demand that quick action must be taken, before our environment changes
beyond recognition. Simple ways to reduce environmental pollutants is simply doing the
There are so many different ways to conserve energy, both at home and at work.
Energy conservation is the decision and practice of using less energy. Turning off the
light when you leave the room, unplugging appliances when they’re not in use and
walking instead of driving are all examples of energy conservation. The two main reasons
people conserve energy are to gain more control over their energy bill and reduce the
Did you know that the use of environmental cleaning products can reduce pollution
in our environment? When you choose to use green cleaning products, you are making a
Strategic Management Plan for Made by Pearl 55
HOLY ANGEL UNIVERSITY
vote to protect the environment so to speak. Most ideal green cleaning products are made
using sustainable manufacturing practices and naturally derived, safe, non-toxic, and
Once you start using eco-friendly and green cleaning products and tools others will
most likely follow suit. Don’t be shy about green cleaning at home or the office. As more
join in, it means a healthier planet for us all to enjoy! Setting an example for children
guarantees a brighter future for our planet as well. Be a mentor to youth who need
Find a supplier No
Owner / Continuo
who could supply additional
Manager us
materials on time Cost
Negotiate with No
Owner / Continuo
suppliers about the additional
Manager us
Strategy 2: cost of materials Cost
Choose
Choose a supplier As
environment
which offers Owner / frequent
ally friendly No
materials with Manager as
cleaners. additional
reasonable price possible
Cost
Conduct a seminar
Owner / Once a Presentatio
about use of eco-
Strategy 3:
Manager year nal Cost
friendly product
Become a
As
Promote the use of
Green Role
Owner / frequent Advertisin
eco-friendly
Model
Manager as g Cost
products
possible
Promoting a new product for the business products. Offer customers an exclusive
preview of the company's new product. This can take form of by the word of mouth and
also online preview or a special invitation to test out your latest product. These exclusive
Strategic Management Plan for Made by Pearl 57
HOLY ANGEL UNIVERSITY
offers to loyal customers will make them feel good and keep them coming back. Social
media contests are a fun, easy way of connecting with customers and bringing in more
consumers for your new product. With billions of active users in some social media, such
One of the best ways to promote a new product is to let your customers speak for
the company is by sharing their reviews about the company's products. Ask the
company's consumer to review the new product online or to provide a testimonial for the
company to share. People will be more likely to sign up or try it out if there’s a glowing
More people is accessing websites via their mobile phones as to check or search
about things they want to purchase by the use of the feedback of other consumers about
that products as to know if it is good. This means that mobile optimized websites are
more important now more than ever before because people can see others opinion for
Having a good product is only halfway to success. The other half leads you
through the minefields and quicksand of marketing. To help you feel more comfortable
with sales promotion, we’ll break it down into smaller pieces. You'll learn how to
business scale. With our sales promotion library, you can start testing promotion ideas
Strategy 3: Build and maintain a good long-term working relationship with consumer
One of the biggest goals is to acquire repeat business from a consumer. To do that,
the company must develop and nurture great relationships with the consumer. By offering
their quality products and to work hard to develop an impression with every consumer.
Having a strong relationship with our consumers allows us to build better structures. For
connection. Of course, the consumer wants quality product because they are paying for it
and they need it to function the way it’s supposed to. Made by Pearl aims for quality
product because the name is on the product. The company has a reputation to uphold and
Made by Pearl best consumers’ top priority is the finished outcome of their
products. The company should create an atmosphere of trustworthiness. This will result
in an equal relationship between Made by Pearl and the consumers. Quality product takes
effort from both the general owner and the employees. It’s a two-way street. All of this
crates a sense of teamwork and collaboration which results in the best product possible.
Strategic Management Plan for Made by Pearl 59
HOLY ANGEL UNIVERSITY
Strategic Management Plan for Made by Pearl 60
HOLY ANGEL UNIVERSITY
Strategic Management Plan for Made by Pearl 61
HOLY ANGEL UNIVERSITY
VII. REFERENCES
https://charliebanana.com/pages/about-us
https://www.consciousclothing.net/about
https://www.ecoproducts.com/mission-vision.
https://gladrags.com/about.html
https://gsw.gudrunsjoden.com/eu/gudruns-world/gudruns-ide
https://www.kao.com/global/en/sustainability/environment/statement-policy/eco-
friendly-products/designing/
http://www.maxi-pedia.com/internal+external+IE+matrix
https://www.readyratios.com/reference/analysis/most_important_financial_ratios.ht
ml
https://www.slideshare.net/swarupasahu/qspm-matrix
https://sloomb.myshopify.com/collections/grovia
https://www.thespruce.com/reasons-to-start-green-cleaning-today-1706950
https://thrivehive.com/9-ways-to-promote-a-new-product-or-service/
http://www.vasudha-foundation.org/our-mission-and-objectives/
https://www.voucherify.io/blog/sales-promotion-examples
A Company's Gross Profit Margin Reveals its Financial Health. (2018). The Balance.
margin-393201
Strategic Management Plan for Made by Pearl 62
HOLY ANGEL UNIVERSITY
Averkamp, H. (n.d.). What is the debt to total assets ratio? Retrieved January 11, 2018,
from https://www.accountingcoach.com/blog/ebt-to-total-assets-ratio
Bragg, S. (2018). Debt to equity ratio. AccountingTools. Retrieved 11 January 2018, from
Debt to assets ratio. (2017, July 28). Retrieved January 11, 2018, from
https://www.accountingtools.com/articles/2017/5/5/debt-to-assets-ratio Competitive
Mapiles, J. (2016, February 06). Pampanga backs move to decongest Metro Manila.
Program Management. (2017). Profile Matrix (CPM) – with FREE Template. Retrieved
profile-matrix-cpm/
Strategic Management Plan for Made by Pearl 63
HOLY ANGEL UNIVERSITY
Remo, R. (2017, January 7). Aggresive infra plan to sustain PH construction boom Read
more:http://business.inquirer.net/222578/aggresive-infra-plan-sustain-ph-construction-