RM Plan Final

Dr. Filemon C.
Aguilar Memorial College of Las Piñas - Main Campus

Topland Ave. Golden Gate Subd., Talon III, Las Piñas City
E-mail Address: dfcamclp.ocr@gmail.com Tel. Nos. 84031985/84636267
Risk Management Plan
Big Brew
Presented by:
Estremadura, Eric
Pestaño, John Lheniel
Pineda, Mar Vincent
Rosal, Maritonnie
Serneo, Iris
Soriano, Cristelle Jon

Dr. Filemon C. Aguilar Memorial College of Las Piñas - Main Campus
I. Company Background:
2019 2021
Bigbrew created social media

accounts through which they
BigBrew was created were able to market and
by Filipino- gather feedback from their
businessman customers. They expanded to
Rolando Garcia. Early 5 more branches and began
this year, they to operate as a franchise
launched Bigbrew to business. They also added
the public and started six additional flavors to their
its operation. menu and introduced their
first three snacks.
BIGBREW
During this year, Bigbrew Bigbrew has

gained popularity due to remained one of
their quality product and the country's best-
influencers started to selling affordable
promote their business Milktea and Coffee
like Albert Nicolas also shop. As of this
known as "asian cutie". year, Bigbrew has
The Praf and Fruit tea 50 branches
series were also nationwide.
introduced during summer
season that year.
2022 2023
II.SWOT ANALYSIS
STRENGTH
Strong Brand Recognition - Big brew’s brand has succeeded making a widespread recognition
among Filipinos, particularly among teenagers, for it established their brand as one of the leading
Milktea and Coffee provider in the market with their trendy marketing strategies.
Affordable Price/Budget-Friendly - Their pricing strategy is designed to give competitive

prices while being discreetly budget-friendly in order for its availability open to anyone who
wants to avail their products. Their drinks price ranges from twenty-nine (29) for Medio and
thirty-nine (39) for Grande giving substantiation to this claim.
Customer-Oriented - A fundamental pillar of their success is their customer-oriented approach.

They are constantly seeking feedback to improve their offerings through their social media
platforms. This not only fosters a sense of loyalty but also drives the evolution of the menu to
cater to ever-changing tastes making them relevant regardless of the current trend.
Adept and Quick Staff
Their adept and quick staff further enhance the milk-tea experience. The ability to prepare
complex orders efficiently ensures that costumers are satisfied.
Social Media Presence - Bigbrew utilizes the social media platform masterfully, creating
visually appealing content that captivates and engages their audience resulting in building the
brand’s awareness and encourages customers to share their experience, and collaborating with
artists expanding their business’s reach.
Flexible Ordering Options - Costumers can now choose between in-store, online, or delivery
orders, providing a convenient experience tailored to individual preferences. Customers
appreciate the ease of ordering without realizing the intricacies of their operations, making their
business appear effortlessly accommodating.
Convenient Location- Bigbrew’s locations are strategically positioned in various urban and
suburban hubs with (number of outlets) outlets nationwide, making it effortless for their
costumers to satisfy their cravings, wherever they are.
Premium Quality Products
With their cautious sourcing of ingredients and rigorous quality control measures ensure that
every cup of milk tea is flavorful. Consistency is one of the difficult aspect for a food business
but with BigBrew’s meticulous effort, consistency is achieved.
WEAKNESS
Limited Costumer Loyalty - With the widespread trend of milk-tea business in the Philippines,
BigBrew is just a part of these huge varieties of Milktea and Coffee businesses giving costumers
a lot more options than their brand making customer loyalty limited.
High reliant in one to two staff member - The efficacy of being efficient and fast can be rarely
seen for their staffs could not accommodate a huge amount of costumers especially in peak
hours.
Limited number of seats to dine in - A place that can be

used to hang out is one the grasp of this kind of business but
unfortunately, BigBrew only has a limited space that can
only give seats to a few costumers making them not ideal if
the costumers are planning to hangout and dine in.
Costly Franchise fee - This hinders the ability of the business to be scattered everywhere in
order to reach far locations and decreases the chance of getting a franchisee. Given the
information, BigBrew has larger franchise fee compared to the other franchise businesses.
OPPORTUNITIES
Still a New Market Trend for long run – Big brew is well known brand that could still run for
years. According to CAGR, the tea market is expected to grow annually by 5.91% according to
from 2023 to 2028 as projected. It is still a good opportunity for big brew to still continue and
innovate products.
Source: statista.com
Expand the Business due to its strong brand Identity – It is still one of the good options to
franchise Big brew due to its strong Brand Identity for low to medium cost Business. Big brew is
well known to its affordable price of Milktea and coffee with many options to choose in the
menu for beverage. It is still considerably profitable for a long run for potential investors in the
business since it already builds its customer loyalty and preference since 2019.
Influencers Collaboration to
increase brand exposure – Big
brew is still popular until now that
even Famous influencers like
Albert Nicolas (a.k.a Asian cutie)
promoting the brand. It is a good
opportunity for big brew to have a
collaboration with known
personalities to increase brand
exposure
Source:https://www.facebook.com/watch/?mibextid=rS40aB7S9Ucbxw6v&v=75505433225863
6
Increase Brand Offering in snacks to

complement beverages – Since Big brew offer
various taste in beverage and few snack,
increasing snack options is still an option for
complementing beverages as course meal for the
business. Brand collaboration is also a good
opportunity to increase product options and meet
the preference of customers like Dunkin Donuts
(Donuts), Potato Corner (Fries), Corndogs,
Burgers and etc.
THREATS
Increased in cost of ingredients due to inflation – Due to an increase in cost of ingredient for
different beverages offer by big brew, price may also affect in the menu to counter the cost of
producing the product. It may affect the brand identity as one of the affordable Milktea and
coffee shops in the market.
High competition in market – Due to a rapid increase for low-cost milktea Business like kkopi
tea, I love milk tea, Juan Cafe, City Blend, and other local milktea shops in the market, there is
still a high competition for High quality but affordable price of beverage coffee and tea. There is
still a threat for Big brew to its profitability in an area
Negative review from customers – Although Big brew is a

well-established for low-cost Milktea Business, the Brand is still not exempted from negative
reviews may encounter through social media from customers. Whether it is the product, the
ambiance of the place or the behavior of employee among its customer, it will affect the image of
the brand.
Reduced customer spending on non-essential items like milktea – Milktea Beverage is not an
essential Item for customer which affect the profitability of business. Although, Big brew is one
of the most affordable milktea and coffee shop in the country, it is one of the least to be prioritize
when it comes to beverage when it comes to practicality for low-income customers.
Changing of customer preference because of new products – Even if Big brew has many
option of beverage to choose on the menu, nothing beats to a customer who wants to try
something new. Customer are always curious and try that is trending online. It is a threat for the
profitability of Big brew on its existing beverage and snacks to offer.
III. PORTER’S FIVE FORCES

RIVALRY AMONG EXISTING COMPETITORS
Number of existing and new competitors:
Coffee and Tea’s market size is Big in which it is also separated from High-cost Milktea to
Low-cost Milktea Business. Big brew is categorized in Low-cost type of Milktea Brand. Among
those other low-cost coffee and tea that are popular such as KKOPI tea, Bigger brew, Juan cafe
and Ilove Milktea. There are also some unknown local milktea shops that offer the almost the
same options of coffee and tea beverage in budget friendly price.
Industry concentration on milktea Industry:

Big brew is a well-known brand for coffee and tea because of its affordable price range with
many options to choose. Big brew is one of the big market shares among its existing competitive
rivalry for low-cost based milktea shops like any other brand such as kkopi tea, I love milktea,
bigger brew and etc.
Quality offering of products and brand loyalty:
Big brew builds up its identity as a brand of coffee and milk tea shop because of its many
options and high quality of beverage of coffee and tea to choose on the menu, including also the
snacks for a budget friendly price range. As result, it builds customer satisfaction which leads to
brand loyalty.
Barriers to exit and switching cost:
Big brew has high barriers to entry as well as to exit. Franchising Big brew is much cost around
P 300,000 plus the construction fee of the Physical store which is roughly estimate around P
100,000 plus unlike before. It is not ideally easy to abolish the business due to the cost incurred
to run the business. The good thing is that Big brew already built its reputations to attract
customer and maintain, but it is still under low switching cost due to the availability of branded
and local coffee and tea shops in almost the same price range at most available location of target
customers.
Market Growth:
The Revenue in the Tea market amounts to US$64.4m in 2023. The market is expected to grow
annually by 5.91% according to CAGR from 2023 to 2028. Since Big brew is a well-established
brand, it will likely still profitable in sales in market for a longer period of time.
Source: statista.com
THREAT OF NEW ENTRANTS
Established Brand Identity and Menu Diversification:
Over the years, Big Brew Cafe has developed a solid

brand identity. It would be difficult for new competitors to
match the popularity and reputation that Big Brew Cafe
enjoys. Customers frequently prefer brands they can rely
on, which might be a serious threat to newly opened cafés.
A wide variety of coffee drinks, snacks, and potentially
even meals are available at Big Brew Cafe. It may be
difficult for new competitors to replicate this degree of
menu variety.
Customer Trust and Loyalty Programs
Customers frequently trust established companies because they have a track record of providing
high-quality products and services. New entrants would require time to gain customer trust.
There can be loyalty plans in existence at Big Brew Cafe that get customer’s special access to
specific goods or discounts on other items. The ability of new competitors to draw in and keep
customers may be hampered by these schemes.
Customer Reviews and Reputation:
Big Brew Cafe probably has a significant web presence

with favorable client feedback and a sizable social media
following. It could take new competitors some time to
establish a solid internet reputation, making it more difficult
to draw in clients.
Regulatory Compliance:
Big Brew Cafe has already met all of the regulatory criteria and got all of the essential licenses
and licenses. New recruits must go through this time-consuming and costly process.
Prime Locations:
It's probable that Big Brew Cafe has acquired desirable locations for its cafes in busy
neighborhoods. For new competitors, it might be challenging and expensive to locate and secure
comparable premises.
THREAT OF SUBSTITUTE PRODUCTS
Number of alternative products:
Big Brew Cafe offers wide variety of products available which customers can choose from.
Every year, Bigbrew releases innovative flavors, and special series of drinks to their menu to
meet customer demand. Since Bigbrew provides different and multiple kinds of beverage,
consumers can switch from buying Milktea to Fruit tea and from the other options. The high
availability of these options makes it easy for the customers to buy these substitutes instead of
buying from their competitors like Juan café, and Kkopi Tea.
Price performance of the alternative products:
There are several businesses in the industry that have comparable prices to Bigbrew, such as
Juan Cafe and Kkopi Tea. However, since Bigbrew Cafe is less costly than its competitors,
customers are more likely to buy from them. Bigbrew costs twenty-nine (29) for Medio and
thirty-nine (39) for Grande, but KKopi tea's lesser size costs thirty-nine (39) and the larger size
costs forty-nine (49) and is consequently more expensive than Bigbrew. This factor is certain to
keep their consumers to purchase from them, as Bigbrew provides low-cost but high-quality
products.
Perceived level of differentiation:
Big Brew is well-known for its particular product quality and distinct uniqueness from other
milktea and coffee shops. Aside from high-quality products, they also have interesting packaging
features that set them apart from other competitors such as Kkopi Tea and I love Milktea. Unlike
to their competitors (which has the same packaging over the years) their packaging is seasonally
themed (e.g., Halloween, Christmas) and matches their trademark logo.
Furthermore,
Bigbrew has already established their brand name in the industry, so customers are more likely to
be impressed with their products than in any other Milktea and coffee shop. This successful
distinction increases brand loyalty from the customers.
Buyer Propensity to substitute:
The appearance of numerous Milktea and coffee shops leads to consumers purchasing substitutes
because of multiple options, but Bigbrew has built strong reputation already and continues to
provide the highest quality they have offered since the beginning, customers are less likely to
buy from established Milktea and Coffee shops such as Juan Cafe, Kkopi Tea, and I Love
Milktea since Bigbrew have already gained confidence and continues to meet customers
demand.
BARGAINING POWER OF BUYERS
Number of Buyers:
If there are many coffee and milk tea consumers in the area served by Big Brew Cafe, the buyers
collectively have more bargaining power. A large customer base can give them the ability to
demand better prices or service, especially in one of their branch in CAA Las Pinas City where it
is in front of CAANHS or Captain Albert Aguilar National High School, which as we all know,
most of their market are students who are craving milk tea and coffee but also in a tight budget.
How much product each customer is buying:
Large or bulk buyers may have greater bargaining power because they contribute a large portion
of Big Brew's revenue. Many students buy different kinds of Big Brew’s product because of its
price, they know that they can save so much money compared to other competitors who has
pricey milk tea products than Big Brew’s. The loss of a large customer could have a big effect on
the company.
The buyer's ability to substitute products:
Customers have more negotiating power if switching to a competitor café like Super Daddy,
Joe’s Brew, and D’Brewing Coffee Shop, who are also close with each other, has little to no
switching costs. Big Brew can lessen this power if they have high switching costs, such as
loyalty programs or exclusive products.
The buyer's sensitivity to Price:
The price sensitivity of customers can greatly affect their bargaining power. If customers of Big
Brew are highly price-sensitive, they are more likely to negotiate for lower prices or seek
discounts. But since the target of their business are people on a budget this is really a big deal
among students and other customers, because the prices are really low but the service and
products are still great compared to other competitors, the one’s mentioned above.
The buyer's access to information:
In today's digital age, buyers often have access to extensive information about pricing, quality,
and reviews. This transparency can increase their bargaining power as they can make informed
choices and compare offerings easily. Customers may compare Big Brew Cafe's offerings with
those of competitors, influencing their choices. Students and other customers who are intrigued
by Big Brew can visit their Facebook page, they can research and look up easily the prices
compared to other competitors, and also products that they are selling
BARGAINING POWER OF SUPPLIERS
Bargaining Power and size of suppliers
Big Brew Cafe deals with various suppliers for coffee and milk tea ingredients, which gives them
some negotiating power. Most suppliers are smaller or medium-sized, allowing Big Brew Cafe to
negotiate for better prices compared to dealing with larger suppliers. Examples are "Fresh Dairy
Farms" provides their milk, Coffee beans from "Bean Bliss Roastery"
A Company ability to find substitute suppliers:
Big Brew Cafe can easily switch to different suppliers when needed,
reducing their reliance on a single source and improving their
negotiating position. “Bean Bliss Roastery" raises its coffee prices;
they can switch to "Java Delight Distributors" for their coffee bean
The quality and Uniqueness of the supplier's product:
Suppliers consistently provide high-quality ingredients, which is

crucial for Big Brew Cafe and gives suppliers some negotiation
leverage. And other suppliers also offer unique flavors vital to the
cafe's menu, giving them an upper hand in negotiations. - "Tropical
Tastes Extracts" provides a special mango syrup for their signature
mango iced tea
The cost of switching suppliers:
Although there are other alternative suppliers for ingredients needed by big brew for its flavors
in the Menu, it will be costly due to its availability and the brand name. There are many supplies
of ingredients that are marketed online but the eligibility, cost and profit should be considered
before switching of suppliers.
The volume of product needed:
Big Brew Cafe usually has a consistent

demand for ingredients, giving them
negotiation power with suppliers. Since
there are many options of tea and
beverages in the menu for Big brew,
only the most demanded flavor are
needed for consistent order for
ingredients to order. Usually the most
affordable price or trending flavor of
milk tea are need of consistent Supply
of flavor in order to produce the
product again.
IV. INTERNAL, EXTERNAL, PERSONAL RISKS
INTERNAL RISK IDENTIFICATION
Operational risk
Big brew franchise has low operational risk since the establishment is big enough (for
average franchisee store) to always observe the operation if done accordingly. Equipment’s are
easily accessible and Defective equipment’s can easily be replaced with new ones as long there
is a budget for operations available. Operating a Big brew coffee franchise is low maintenance
compare to other business
Technological Risk
There is still a risk in technology to Big brew coffee which might affect the efficiency of
producing coffee and tea beverage just like the semi-automatic sealer machine on the tap for
plastic cups. Although the process can still rely on basic equipment, the machine hinders on
producing the final product in a moment of its defectivity. Alternative machine is essential in
case of malfunctions on the current machine in use.
Reputational risk
Through the use of social media such as Facebook which are widely use, feedback or
reviews are conveniently share among other people regarding the purchased product or availed
services about a certain business. Big brew is still subject of reputational risk the moment a
defective product is given a review from a certain customer. However, Big Brew is an already
established Business for more than 3 years in which the products and service is proven to be
High quality. The Brand already built its customer loyalty due to its affordable product offerings.
Popular influencers like Albert Nicolas (a.k.a Asian cutie) and other personalities are already
promoting the brand from different social media platforms. The Big brew will not easily loss its
customer due to its strong brand identity, however the business is still not exempted to a risk in
its reputation.
Human Risk
Big brew coffee is held liable for any harm may result because of the product served to its
customer. whether its is intentional or due to a negligent action of employee. Employee behavior
is also affecting the profitability of business if not tolerated. However, Big brew’s Reputation is
still one of the best when it comes to coffee and tea shops because of its hospitable employee and
premium products to offer. Majority of feedbacks are positive which cause for it to run for more
than 3 years in coffee and tea industry up till this day.
EXTERNAL RISK IDENTIFICATION
Compliance risk
Big brew is well complying with the rules and regulations according to the standards of
consumer products by DTI (department of trade and Industry) before established the business.
Usually, the business permit is hanged on the wall for proof of business to operate. Cleanliness
of the establishment and accommodating employee is well known in Big brew which is based on
the reviews of customers online. There is still a risk in food standards for coffee and tea business
for negligence may happen by the employee which results to a complaint by the customer. An
inspection of the establishment give a potential risk of cease in operation the moment that the
food safety standard and cleanliness is neglected which results to a revocation of Business permit
especially for franchisers like Big brew.
Strategic risk
Coffee and tea Business have High competition in market to enter and maintain for new
established business and even in the existing ones. Brands are also categorize based on target
customer in their established price for their products. Big brew belongs to a low to mid cost
coffee and Milktea business in which the target customer is the one who can avail the price
ranging from Php 29.00 pesos or above or you budget friendly price. However, low-cost
Business is becoming popular in the market because it is cheap to established and affordable
capital requirements unlike any other High end or well-established brand of coffee and tea
business which requires a high franchise and construction fee. Among those low-cost business is
Kkopi tea, Juan Cafe, City Blend, Big brew and any other local brands. Big brew is subject to a
low switching cost as any other low-cost coffee and tea business also offer unique flavors that
are also budget friendly. There is still a risk on profitability of the Business-like Big brew for
low-cost business types.
RISK AND RESPONSE
INTERNAL RISK RESPONSE

OPERATIONAL RISK The business benefits from its scale, which enables ongoing
supervision of its activities. The ease with which damaged pieces
may be replaced contributes to a low-maintenance operational
model. To further reduce operational risk, Big Brew should examine
and optimize its operating procedures on a regular basis, keep an eye
on equipment to minimize unexpected malfunctions, and budget for
maintenance and replacements. Maintaining consistent quality also
requires ensuring franchisees have sufficient training and support.
TECHNOLOGICAL RISK Even for a well-established company, technological risk remains a
concern. While Big Brew relies on basic equipment, problems such
as the semi-automatic sealer machine failing might cause output to
halt. To overcome this, the organization should have backup or
alternative equipment on hand, undertake regular service, and stay
up to date on industry technical changes.
REPUTATIONAL RISK While a strong brand and excellent reviews help to decrease
reputational risk, it is always present. Big Brew should continue to
prioritize high-quality
products and services, consistently monitor social
media and online reviews to respond to consumer feedback in a
timely and professional manner, and capitalize on the backing of
social media influencers for brand development.
HUMAN RISK Big Brew must establish thorough employee training programs that
stress customer service and product safety. To promote responsible
and professional behavior among its employees, the organization
should also maintain liability insurance coverage, undertake
comprehensive personnel screening, and develop a good work
environment.
EXTERNAL RISK
COMPLIANCE RISK Big Brew Coffee has diligently adhered to compliance requirements,
ensuring that it operates within the regulations established by the
Department of Trade and Industry (DTI) since its inception. This
dedication is shown in the public display of business licenses as well
as the constantly high standards of cleanliness and service.
Nonetheless, the potential of noncompliance remains, particularly in
the food business, where staff irresponsibility might result in
consumer complaints. Continuous efforts to educate and train
personnel on food safety and hygiene requirements are required to
reduce this risk. Regular inspections and quality control checks
should be undertaken, and the firm should stay current on any
regulatory changes or upgrades in the food and beverage sector to
guarantee continuing compliance and avoid potential business
permit revocation or closure.
STRATEGIC RISK Strategically, Big Brew Coffee operates in a
competitive market, contending with the challenge of maintaining its
position as a low to mid-cost coffee and milk tea provider. In an
environment where lowcost firms are gaining appeal owing to their
cheap costs, the company must adapt and innovate. This includes
maintaining a close eye on market dynamics and competition trends,
introducing new and unusual tastes to appeal to price-conscious
clients, pursuing strategic collaborations or partnerships, and
perhaps broadening its product offerings. Maintaining price
flexibility and regularly monitoring profitability measures are
essential for mitigating the strategic risk associated with low-cost
company models. Big Brew Coffee can succeed in the dynamic and
competitive food and beverage business by aggressively addressing
both compliance and strategic challenges.
V. VALUE CREATION
QUESTIONS:
1. How can my business create value for customers?
➢ The key to Big Brew's business success would be providing value to their customers.
Value is the measure of how well your offering satisfies or surpasses the requirements
and expectations of the customers you serve. Customer satisfaction, loyalty, retention,
and profitability can all be raised by providing value.
➢ Some of these suggestions can be used by Big Brew, a company that sells tea and coffee
products, to add value for their clients. By highlighting their dedication to fair trade,
sustainability, and quality in their marketing campaigns and packaging, for instance, they
can concentrate on improving brand perception, for example, they can highlight their
brand's personality, mission, vision, and values through content marketing, social media,
or storytelling. By asking their customers to rate and review their products on their
website or social media accounts and rewarding them with coupons or free samples, they
can get additional feedback from their customers. Delivering excellent customer service
that exceeds their clients' expectations is one way to add value. For instance, they can
teach their employees to be friendly, accommodating, and updated. They can also
surprise your customers with gifts, deals, or heartfelt notes. Their business will be
successful and grow if they can develop a base of profitable and devoted customers by
providing value to them.
2. How can my business create value for employees?
➢ Creating value for employees is pivotal for any business's success. It not only fosters a
contented and motivated workforce but also enhances productivity and loyalty within the
company. To achieve this, businesses should offer competitive compensation and
benefits, ensuring that their staffs are fairly rewarded for their efforts. Additionally,
promoting career development opportunities through training and progression programs
allows employees to grow within the company, cultivating a sense of advancement and
loyalty. A healthy work environment, characterized by a positive workplace culture, sets
the tone for employee satisfaction and well-being, encouraging productivity and a sense
of belonging. Recognition and reward systems play a crucial role in acknowledging
employees' hard work, fostering a culture of appreciation and motivation. Open
communication channels provide a platform for transparent dialogue and feedback,
enabling employees to voice their opinions and feel heard. Furthermore, involving
employees in decision-making processes empowers them and instills a sense of
responsibility within the company. Flexibility in work arrangements, such as remote
work options or flexible schedules, demonstrates a company's consideration for its
employees' work-life balance. Supporting employees' mental health and well-being
through resources and assistance shows a commitment to their holistic welfare. Offering
continuous learning opportunities and encouraging inclusivity and community within the
workplace further adds value to employees, fostering a sense of growth, support, and
belonging.
3. How can my business create value by collaborating with suppliers?
➢ Business success is largely dependent on adding value for both suppliers and consumers.
Big brew utilizes various products from their suppliers in daily operation. Suppliers are
essential to the manufacturing business like Big Brew since they are the source of
product’s raw materials. Building a strong connection with your supplier will increase
their level of trust in you as their customer and since you already built a strong
relationship, it may also result in improved communication. Collaborating closely with
your supplier may also have an impact on the supplies they offer; this may be
advantageous in that it can raise the quality of the supplies, which may increase your
level of satisfaction. You may also provide value to your supplier by being a responsible
and loyal collaborator. This demonstrates that even with the abundance of suppliers
available, you still made the decision to put trust in their business and the materials they
produce. Additionally, it is vital to share your observations about the supplies they
provide. This will help to minimize miscommunication between you and your supplier
and will also significantly reduce the likelihood that they will send subpar or defective
goods to other clients.
Big Brew Cafe may create a variety of programs and activities to demonstrate value to
consumers, workers, and suppliers. Here are some ideas for each group:
CUSTOMER
PROGRAM EXPLANATION
1. SOCIAL MEDIA Establish challenges or contests that encourage customers to post

ENGAGEMENT on social media with a hashtag about how they felt about Big
Brew's products.
2. LOYALTY PROGRAMS Create a rewards program for loyal customers giving discounts,
free goods, or special promotions in exchange for their continuing
support.
3. FEEDBACK SESSIONS: Hold feedback sessions or surveys on a regular basis to learn

about your clients' preferences, acquire recommendations, and
demonstrate that their opinions count.
4. SPECIAL EVENTS AND Organize coffee tastings, brewing seminars, or events to educate
WORKSHOPS consumers about various coffee varieties, brewing processes, and
coffee-related subjects.
5. CUSTOMIZATION AND Allow customers to create their own mixes or modify their
PERSONALIZATION beverages for a more customized experience.
6. COMMUNITY To engage and give back to the community, organize

ENGAGEMENT community-focused events suchas fundraisers, local
artist showcases, or open mic nights.
EMPLOYEES
PROGRAM EXPLANATION
1. TRAINING AND Invest in training programs to help workers improve their skills
DEVELOPMENT and knowledge, supporting personal and professional
PROGRAMS: development in order to deliver excellent customer service as
well.
2. EMPLOYEE Implement an employee recognition program to recognize

RECOGNITION exceptional work, whether through rewards, certificates, or
public acknowledgements.
3. WELLNESS INITIATIVES To encourage a good work-life balance, provide wellness

programs, mental health assistance, or gym membership
discounts.
4. OPEN COMMUNICATION Encourage an open-door policy and regular feedback sessions to

CHANNELS ensure that staff feels heard and appreciated at work.
5. SOCIAL EVENTS AND Organize team-building events, social trips, or frequent team
TEAM BUILDING lunches to boost team spirit and foster a healthy work
atmosphere.
SUPPLIERS
PROGRAM EXPLANATION
1. FAIR TRADE AND To demonstrate a commitment to responsible business

SUSTAINABILITY practices, emphasize fair trade procedures, sustainable
sourcing, and collaborations with ethical suppliers.
2. TRANSPARENCY AND Maintain open lines of communication with suppliers and

COLLABORATION cultivate solid relationships by delivering fair deals and
explicit agreements.
3. SUPPLIER APPRECIATION Organize parties or gatherings to honor and thank suppliers'

EVENTS contributions to the cafe's success.
4. PROMPT PAYMENT Ensure that suppliers are paid on time in order to develop
confidence and a solid business connection.
5. CO-MARKETING Collaborate on cooperative marketing campaigns or

OPPORTUNITIES promotional activities that benefit both the café and the
suppliers, providing mutual exposure and opportunity for
development.
VI. PESTEL ANALYSIS
POLITICAL
Big Brew is a franchise that is subject

to a franchise tax imposed by the
government. They are required to pay
taxes as a franchisee under the tax
reform law, such as royalty, taxable
income, and withholding tax. Every
election, the taxation system in a
particular country varies. These
changes in the taxation structure have
a significant impact on the
profitability of businesses. Furthermore, Big Brew must adhere to government regulations
regarding wage legislation (e.g., minimum wage and overtime) and obligatory benefits for its
employees, which can have an impact on business earnings because it entails additional
expenses. Thus, Big brew needs to be aware of these factors because it directly impacts the
company's operations.
Political stability is another political factor that might disrupt the functioning operation of the
business. The Philippines' percentile level for political stability and the lack of violence and
terrorism in 2021 was 16.98%, according to the World Bank. Despite the fact that it is still a
developing country, the Philippines have made progress in terms of political stability and public
confidence in the government. This suggests that there would not be any employees of Big Brew
skipping work due to transportation strikes, protests, or other civil unrest, which can also have an
impact on the profitability of the
business.
ECONOMIC
Inflation rate rises to 5.9 as of

August of 2023 which stood
around 7% percent for the first 8
months of 2023. BSP’s latest
baseline projected that the average
inflation forecasts for 2024 and 2025 now stand at 3.3 percent and 3.4 percent, respectively. A
steady average for the remaining months of 2023 and a slight declined for the rest of 2024 to
2025. While the Philippines 2023 GDP grew by 5.3% which anchor an increase of employment
and increase of investment registration activities, a projected growth around 6.4% in 2024
according to PSA (Philippine Statistic Authority. a projected lower inflation rate favors to big
brew for its cost in ingredients. A lower cost of ingredient from suppliers means more products
to serve, an increase of profit may also be projected. A projected increase of GDP is an increase
of investor of business. A sign of good opportunity for franchisers to invest in Big Brew coffee
and tea Business.
Economic growth such as the GDP favors to customer as it implies an increase of employment
means an increase of purchasing power. Lowering of inflation, more customers spending for
needs and wants which include the global trend such as beverages like coffee and tea which is a
good opportunity of increase to profit of Big Brew.
SOCIAL
The Philippines has seen a growing trend in the beverage business in recent years, particularly
the rise of milk tea café. Big Brew, a franchise that debuted in 2019, is a significant competitor
in this business. Big Brew primarily serves a wide range of clients, ranging from ages 15-50
years old. Younger people, particularly students and young professionals, who frequently look
for a fashionable and refreshing beverage alternative, are drawn to it in urban locations. With its
wide variety of flavors and toppings, milk tea's appeal is a major attraction for this group of
people. In addition, Big Brew is affordable for people of all economic levels thanks to its
competitive pricing. Big Brew takes pride in its quick and friendly service, warm and clean
atmosphere, and social responsibility programs, they also assisted and gave coffee to make keep
our people warm in time of their need who were a victim of Bagyong ‘’PAENG’’ during
November 28, 2022. Big Brew's success in the milk tea business in the Philippines isn't just due
to its delicious drinks; it also stems from its strong understanding of demographics and skillful
managing of numerous social issues. The young, urban population's tastes and preferences are
listened to, and community involvement, environmental responsibility, and an active internet
presence are promoted. As a result, Big Brew has not only grown into a successful franchise but
also a well-known brand among Filipinos. Big Brew's dedication to understanding its
demographic and embracing social features will probably secure its success in the years to come
as the beverage business continues to change.
TECHNOLOGY
The Big brew industry of today is very different from its early
days, when small quantities were produced in straightforward
containers. The demand for adaptations has been prompted by
contemporary problems like a competitive job market, climate
change, and shifting consumer preferences. As the market for
distinctive beverages expands, brewing, which is considered an
art form, continues to be challenging. Due to skill and expense,
larger manufacturers dominate technology, leaving smaller
artisanal breweries struggle to adapt new technologies. Craft
breweries are redefining the world beer market by putting an
emphasis on innovation and conventional methods. Beer sales
are more challenging than ever, but technology provides data-
driven solutions for problems like high employee turnover.
Beer supply chains are shifting as a result of pandemics, technology, climate change, and
consumer tastes. Technology and software for big brew enhance operations, inventory control,
quality assurance, and delivery. In addition, Big Brew can take advantage of existing
technologies on how it can improve their processes to be more productive and efficient in
preparing its orders making delivery faster than competitors. They can also utilize social media
to tap more customers and even engage in apps like Food Panda and Grab Food to further
capture customers that are not within the vicinity. Investing in a high-quality semi sealer
machine can enhance big brew's packaging efficiency ensuring that orders are sealed securely
and remain fresh during the delivery process.
ENVIRONMENT
Big Brew ensures customer satisfaction with its swift,

courteous service and welcoming, spotless environment.
The company also embarks on social responsibility
programs. It is evidently through customer reviews on
the ambiance and provided customer service which
always observe cleanliness. However Big brew's means
of material to produce the product of coffee and tea are
plastic cups which are not environmentally friendly
which increases volume of plastic wastes. Paper Cups are also used in coffee as recyclable waste,
it releases a carbon emission.
On the environment which gives a negative impact through by disposing through burning. A
proper waste disposal of plastic and paper cups should be at least observed for the cleanliness of
environment which are currently providing by Big brew.
LEGAL
Big Brew Café faces several legal considerations in its operational environment. The café must
manage regulatory requirements controlling food safety, health and safety standards, and
licensing to guarantee compliance with the law. Furthermore, labor regulations govern
employment practices like as contracts, working hours, and minimum salaries, which affect labor
expenses and staffing. It is critical to maintain intellectual property rights for the brand,
trademark, and recipes, as well as to follow consumer protection rules about advertising, price,
and product labeling. Environmental standards governing waste management, energy use, and
sustainability must also be followed. Furthermore, Big Brew Cafe's legal PESTEL research
emphasizes the need of being prepared for any lawsuit and comprehending liability rules in order
to maintain long-term profitability and compliance across several locations and jurisdictions.
VII. ACTION PLAN
PROBLEM OBJECTIVES PROPOSED TIME FRAME
SOLUTION
INTERNAL
1.STAFF Boost staff morale Employee surveys, a The implementation of

MORALE AND and productivity to reward system, professional reward system will take 2
PRODUCTIVITY create a positive development, and open months. Regular team
work environment. communication are all meetings and feedback
part of Big Brew Cafe's sessions will take place
efforts to boost employee monthly and
morale. To encourage work- improvements to break
life balance and develop a area will take 1 month.
healthy office culture, a
pleasant break room will be
added.
2.UNUSED Proper Big brew can decrease their The implement of

SUPPLIES/INVEN management of inventory waste or unused Management software’s,
TORY supplies/Inventory supplies/raw materials who proper inventory practices
MANAGEMENT for efficient Use are near on its expiring date and disposals, as well as
on proper waste disposals. negotiation with suppliers
With the Use of Inventory a week or month to
management Software’s, it achieve improvements on
can help manage inventory smooth operation
effectively. Conducting and managements.
regular audits in weekly
basis and Negotiate priority
supply with the suppliers
is also essential.
3. DEFECTIVE avoid operation Conduct a double check of Double checking can be

APPLIANCES constraints due to appliances if working conducted every day
defective machine properly to avoid delay of before starting an
operations. Provide an operation while delivery
alternative appliance in case of alternative appliances
of unexpected malfunction could take 3 days or more
of appliances which for Trusted Sellers.
is primary use for
producing Big brew
products.
4. SHORTAGE OF Ensure the Big Brew Café The improvement on

SUPPLIES FOR availability of their would appoint personnel to forecasting would take
IN- DEMAND in-demand do the forecasting. They will two (2) months. It will
PRODUCTS products on the employ Sales, Inventory, take a month for the
market. Big Brew and operations assigned personnel to
must guarantee that Planning (SIOP) to improve attend conferences or
popular items from forecasting while seeking seminars about the
the menu should alternative suppliers to strategies and methods of
be constantly ensure that supplies will forecasting, while
available for always be available, another one (1) month to
customers to specifically their in-demand implement these into the
maintain customer products, and to predict system. Forecasting will
satisfaction. seasonal demands. be done monthly after the
supposed
conferences/seminars.
5. to recover stability As the Owner of the Branch, It will take a Week or a

MISMANAGEME by setting up rely on advices, tips and Month to achieve proper
NT OF FINANCES effective financial proper management of Management of Finance
controls of Big Business available online. for potential and existing
Brew Cafe Use a reliable accounting Franchisers/Investors of
software to manage capital Big Brew
and income efficiently.
Awareness over financial
information is also
necessary to guarantee
compliance and
accountability.
EXTERNAL
1.CHANGING Adapt to changing Big Brew Cafe will perform It will take 2 months for
CONSUMER consumer market research to guide the the market research and an
PREFERENCES preferences to launch of new menu items additional month for the
maintain and improvements. menu updates. Social
competitiveness. Marketing methods will be media engagement will be
improved, with social media continuous and regular
used for promotions and customer feedback
client involvement. analysis will be done
Continuous monitoring of monthly.
client input will promote
agile revisions to products.
2. INCREASE Cope up with New Introduce a range of Implement the proposed

COMPETITION and Existing distinctive menu items that solution over the next 3
Competitors in the are inspired by the seasons, months, starting with the
Market by develop along with loyalty rewards introduction of the new
interesting offers that offer discounts to menu items within the first
that distinguish the regular customers. three months and
Big Brew Brand Additionally, form gradually rolling out the
from competitors partnerships with nearby loyalty programs and
and attract in artist or Brand to produce collaborations in the
customers who good complement, time- following months to gauge
want special limited Meals that will customer response and
experiences. provide customers with a enhance
unique and alluring competitiveness.
experience.
3.CALAMITIES/H Mitigate the impact Invest in durable materials For constructions, it

AZARDS/DISAST of calamities to the in reasonable price for depends on the size of
ER establishments of construction of Big brew establishments of Big
Big brew Café Café and renovation for brew which ranges for a
branch Existing Branches. (1) month or more while
renovations takes a week
or more
4. CUSTOMER Develop a Good Big Brew can conduct a Big Brew can conduct a
BEHAVIOR approach for Rude comprehensive training comprehensive training
Customers in order program or seminars online program or seminars
to minimizefocusing on conflict online focusing on conflict
customer resolution, empathy and resolution,
complaints or rude communication skills for
Behavior by 50% staff dealing with empathy and
challenging customer communication skills for
staff dealing with
challenging customer Big
Brew can conduct a
comprehensive training
program or seminars
online focusing on conflict
resolution, empathy and
communication skills for
staff dealing with
challenging customer
5. REGULATORY To keep up with They will conduct regular The Monitoring of

CHANGES the changing new monitoring of regulatory regulatory
policies, standards agency/government websites agency/government
and controls for policy changes and websites will be
aligned with new consult with legal experts done continuously
regulatory every now and then. Big every week. Internal
requirements; to brew Café could assign a Audits will be held every
ensure that the specific team or person to month or very time that
service offered handle regulatory changes. a regulatory
would be This designated team/person change is made.
constantly would be responsible for
available at all keeping up with the latest
times regulatory changes while
conducting internal audits
and also help other
employees to be aware of
the changes especially in

terms of healthprotocols
since Big brew Café handle
Drinks and foods
Reference:
https://www.facebook.com/bigbrew.main
https://www.facebook.com/101057795678610/photos/a.101057829011940/117835670667489/?t
ype=3
https://www.statista.com/outlook/cmo/hot-drinks/tea/philippines
https://menuph.com/bigbrew-menu/?fbclid=IwAR0jr0C0qCqHLAlFo9enMhEXlIj-
wrv6DzyiO0NBmrgaoFtRTK1auKKajck
https://amcrazytourists.com/big-brew-menu-
philippines/?fbclid=IwAR2avp43aux9D4uMfL0c5mN3kGEuOCrsQgLDmBIDrx4OTR3IrWV6
Xc_OGw0
https://hillsandvalleys.ph/big-brew-franchise/
https://www.studocu.com/ph/document/far-eastern-university/marketing-management/big-
brew-milktea-final-research-paper/20804319
https://www.moneymax.ph/money-management/articles/milk-tea-business-
plan#:~:text=If%20you're%20starting%20a,%E2%82%B1250%2C000%20to%20%E2%
82%B1350%2C000.
https://hillsandvalleys.ph/big-
brewfranchise/#:~:text=Big%20Brew%20offers%20franchising%20opportunities,coffee%
2C%20tea%2C%20and%20snacks.

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RM Plan Final

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Dr. Filemon C.

Aguilar Memorial College of Las Piñas - Main Campus

Risk Management Plan

Pestaño, John Lheniel

Pineda, Mar Vincent

Soriano, Cristelle Jon

Bigbrew created social media

During this year, Bigbrew Bigbrew has

Affordable Price/Budget-Friendly - Their pricing strategy is designed to give competitive

Customer-Oriented - A fundamental pillar of their success is their customer-oriented approach.

Adept and Quick Staff

Premium Quality Products

Limited number of seats to dine in - A place that can be

Increase Brand Offering in snacks to

Negative review from customers – Although Big brew is a

III. PORTER’S FIVE FORCES

Number of existing and new competitors:

Industry concentration on milktea Industry:

Quality offering of products and brand loyalty:

Barriers to exit and switching cost:

THREAT OF NEW ENTRANTS

Established Brand Identity and Menu Diversification:

Over the years, Big Brew Cafe has developed a solid

Customer Trust and Loyalty Programs

Customer Reviews and Reputation:

Big Brew Cafe probably has a significant web presence

THREAT OF SUBSTITUTE PRODUCTS

Number of alternative products:

Price performance of the alternative products:

Perceived level of differentiation:

Buyer Propensity to substitute:

BARGAINING POWER OF BUYERS

How much product each customer is buying:

The buyer's ability to substitute products:

The buyer's sensitivity to Price:

The buyer's access to information:

BARGAINING POWER OF SUPPLIERS

Bargaining Power and size of suppliers

A Company ability to find substitute suppliers:

The quality and Uniqueness of the supplier's product:

Suppliers consistently provide high-quality ingredients, which is

The cost of switching suppliers:

The volume of product needed:

Big Brew Cafe usually has a consistent

IV. INTERNAL, EXTERNAL, PERSONAL RISKS

INTERNAL RISK IDENTIFICATION

EXTERNAL RISK IDENTIFICATION

RISK AND RESPONSE

INTERNAL RISK RESPONSE

1. How can my business create value for customers?

2. How can my business create value for employees?

3. How can my business create value by collaborating with suppliers?

1. SOCIAL MEDIA Establish challenges or contests that encourage customers to post

3. FEEDBACK SESSIONS: Hold feedback sessions or surveys on a regular basis to learn

6. COMMUNITY To engage and give back to the community, organize

2. EMPLOYEE Implement an employee recognition program to recognize

3. WELLNESS INITIATIVES To encourage a good work-life balance, provide wellness

4. OPEN COMMUNICATION Encourage an open-door policy and regular feedback sessions to

1. FAIR TRADE AND To demonstrate a commitment to responsible business

2. TRANSPARENCY AND Maintain open lines of communication with suppliers and

3. SUPPLIER APPRECIATION Organize parties or gatherings to honor and thank suppliers'

5. CO-MARKETING Collaborate on cooperative marketing campaigns or

VI. PESTEL ANALYSIS

Big Brew is a franchise that is subject