Environmental Analysis

As students with a limited amount of allowance, we are taught to be practical when it comes to
spending it. With our entrepreneurship subject, an opportunity of planning, setting, and opening up a
small business was given to us. As young entrepreneurs, we came to an idea of a business that we,
ourselves, as well as our co-students around the University Belt area, could afford and could easily be
accessed. We will be setting up a small stall of variety of juice flavors and snacks to serve as a snack-to-
go stop of students who only have limited amount of money and time.

Global Analysis
1. Physical Environment
 Climate
- In the Philippines, we have a tropical climate. With that, we will be producing a product
that fits the two weathers in this country which are the rainy and dry season.
 Natural Resources
- In this country, fruit-bearing trees are abundant such as apple trees, mango trees,
orange trees, lemon trees, and calamansi trees. It can be easily accessed and easy to
reproduce.
 Wildlife
-Not applicable.

Social Analysis:
1. Political Forces
- There are laws and set of policies that are set by government agencies and leaders
which could affect to the legal framework within which small businesses operate. It
could add a risk factor and lead to major loss. The changes in local outcomes of politics
might affect on how entrepreneurs will operate small business just like us. The
government might prohibit small businesses to operate along the streets and other
easy-access places. With that, instead of setting up our small business along the streets,
we will be operating in various cafeteria in selected schools, condominiums and
buildings which are safer but can easily be accessible by students.

2. Economic Forces
- There have been economic issues going on in the past months in this country. With that,
inflation rate of resources might occur. Also, there might be a shortage of resources due
to economic issues that will cause inflation rates and will affect the production system
and the supply operation of manufacturers and other business ventures. With that,
supplies of ingredient will decrease causing us to increase our prices due to the
increasing demand of our product by choosing alternative ingredients that are cheaper.
3. Socioeconomic Forces
- In the university belt area, schools often offer a high amount of tuition fee and students
from those schools come from different cities, provinces, and maybe countries. Social
factors vary from the cultural implications and social lifestyles here in U-Belt area.
Students are from different places with various cultures as well which means they have
different perception in choosing foods. The social lifestyle of a student is also a factor
because not all students in U-belt area come from a wealthy background, that’s why
universities offer scholarships and discounts. Due to this factor, they differ on how
practical they are in spending their money. With the cultural implication factor, we will
be setting up a business that will be embraced by consumers without considering their
perception of foods that are usually based on their culture. For the social lifestyle factor,
we will be offering products that are averagely priced, which means it is for all
consumers with different financial background.

4. Technological Forces
- In setting up a business, we must consider the methods and processes on how to
produce a certain product. Here in the Philippines, innovation of technology when it
comes to equipment are advancing but are still far from other countries, which means it
still needs improvements. But, this factor is not really a major problem in setting up our
small business, because we only need simple equipment’s that can be easily acquired
and operate, such as deep-frying pan, mixer, utensil, stainless containers, a small stall
made of steel, etc.

5. Ecological Forces
- Here in the Philippines, climate change seems inevitable and is getting worse every day.
One of its causes are the trashes that take a thousand years to decompose, such as
plastics, Styrofoam, and rubber materials. Now, there is an environmental law that
prohibits the use of those materials to lessen the greenhouse gases that these materials
emit. With that, instead of plastics or Styrofoam, we will be utilizing materials that are
environment friendly such as paper and cardboard.

6. Legal Forces
- There are legal processes to be complied in setting up a small business. First, we need a
business permit from the city government. It encompasses the necessary requirements
that is required by the local government for a business to operate, such as physical test
of products to ensure safety and illegal involvement investigation. There is also a tax law
that aims to redistribute the collected contribution of businesses that operate in this
country. Every entrepreneur who wishes to set up a small business must comply to that
as way of contributing to the Philippine economy.
Industry Analysis:
1. Costumers
⁃ Our target market are primarily the students located and studying at the university belt.
Age ranging from 10-30 years old. They’re the generation x and y and even the seniors. They could be
students from junior high school, senior high school and college department. These people are mostly in
to living a healthy life. Philippines is one of the most exhausting country in the world. With that idea, we
came up to building up our refreshments corner business for those people who are in need of vitamins
coming from our natural resources.

2. Competitors (Direct)
⁃ Simply Lemon

⁃ John Lemon

⁃ Jamba Juice

⁃ Juice Bars

These stores/companies gave the same product line with our company that primarily offers
refreshments made of fresh fruits.

Competitors (Indirect)
⁃ Gong Cha

⁃ Simple Line

⁃ Chat time

⁃ Coco

⁃ I love milktea

These stores/companies offers different types of refreshments that offers the same satisfaction with our
company to the market.

We can rise above the waves of the competition in the market by giving the best healthy juice drink to
the market. Proper packaging and labelling is a must in our corner. Also, our product is made with love
and exact ingredients that will full fill the needs of our target market.
 3. Creditors
⁃ Our company will invest enough capital for our business so that we will not have to loan
in the bank.

4. Suppliers
Our fruits will be distributed to us by Sun Moon Fruits located at 670 Sto. Cristo St. San Nicolas, Metro
Manila. These fruits cost the following:

Box of Apples (125 pieces) - P1,150.00

Box of Oranges (113 pieces) - P1,600.00

Box of Lemons (115 pieces) – P3,100.00

Our concentrated juices will come from Landmark Supermarket located at Trinoma Mall, Quezon City.
Each bottle of concentrated juices accounts the following:

Bottle of Concentrated Calamansi - P180.00 (750ml)

Bottle of Concentrated Dalandan - P180.00 (750ml)

Bottle of Concentrated Mango - P68.00 (1/2 Galloon)

Our honey/sugar syrup will be distributed to us by Mercury Drug Store located at Metro Manila. In order
to produce a bottle of syrup, we need 1.5 kilograms of sugar and water. One kilo of sugar at Mercury
Drug Store amounts to P54.50.

Twenty Kilos of sugar can produce 12 bottles of honey that will be added to our refreshments.

Our cups, lid covers and wrapped straws will be distributed to us by Popular Household Inc. Quezon City.
Wrapped straws are priced by Php 0.50 that has 12mm x 21cm dimension and is packed by 250pcs per
pack/4,500 pcs per box. It is the normal sized straw for pure liquid beverages, comes in stripes multi-
colored variants. When it comes to our flat lid covers, it is priced at Php 0.80 that has 95mm dimension
in diameters and is packed per carton by 2,000 pcs. We use it for covering our plastic cups. Lastly, our
cups are packed by 1,000 pcs and are priced at Php 1.00 pesos each.
 5. Government
⁃ The primary role of the government sector in every business is to provide for the
regulation and to oversee the standard of quality of business venture whether it is a refreshment or
beverage oriented set-up business. The company will have to set up first for the registration of its trade
name and this will be done at the Department of Trade and Industry. We will title the company as Juice
Machine. The local government such as the city hall handles the permits that will be given to the
entrepreneurs including the business permit, sanitary permit, barangay clearance, fire protection and
safety permits, among others. The bureau of internal revenue handles the collection of taxes and/or
other assessments that may be imposed to the business. These government entities has the power to
impose the appropriate penalties in case of non-compliance.

6. Shareholders
Our company will entertain entrepreneurs that are willing to invest to our company.
Shareholders are the proprietors of the company. They will own a share in our company and they
will gain certain rights and liabilities over the company. Generally, their main goal is to gain profit
because business people are interested in one thing: money, and will do anything that has to be
done to make money.

7. Employees
⁃ Our store needs employees that will do the job for our company. We will hire at least
two (2) competent and trustworthy personnel with pleasing personalities. Aside form the said
affirmations, every applicant must possess the following characteristics; diligent, hardworking, patient
and punctual. To determine if they have these qualities, we will require them to submit their resume,
NBI clearance , birth certificate, and government ids. We will require them to submit their documents so
that we have their identities. Upon submission of the said documents, we will conduct an interview to
gage how well they communicate with our future customers, how they will interact to other people and
to determine their attitudes and characteristics towards our business.

⁃ There are laws that will protect our future employees. The labor code in general
protects the rights of employees upon hiring. Also, the special laws that will govern them such as the
laws on SSS, Pagibig and Philhealth. These special laws will ensure that the privileges and benefits of the
employees will be given at the right amount and at the right time.

8. Trade Associations
Market Forecast

Market Share

Market Position
Our company decided to use fresh fruits and avoid using artificial products in our products to
attract customers that has ingredients and health concerns. We also focus on offering the best juice that
every individual in the area must have at an affordable price that everyone can purchase one.

Marketing Strategy
In terms of promoting our products, we use social media to attract users especially the students
around U-belt area about our product. Posters, tarpaulins and flyers will also be distributed especially
when it comes to the date of our BOGO Promo once a month. Our company assumed that but these
strategies, we can easily gain back our investments and at the same time, our customers will have their
own healthy way of living their life.