Strategic Management

For

Tea’nk U

Submitted to _______________
College of Accountancy and Business Administration

In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Accounting Information System
I. INTRODUCTION

Tea’nk U milk tea shop is also one of the best Milk Tea shop in the town, which is known

on the tagline of “You’ll get the flavorful taste you deserve, and refresh you from stress” which

began a new and refreshing drinks and some sort of foods which they have included in their

menu the fries, in entire Palauig, Zambales which is they are well known shop for almost 10

months and grown as a Milk Tea shop for a year.

Tea’nk U Milk Tea shop has established his name and brand as well as the strong place

and easy to access for every customer who will visit the shop, where the place is located just

around the corner of Palauig, Zambales, the shop is along the highway, their business offers what

a customer’s needs and they wanted to meet the expectations of every customer, providing a

good and tasty drinks and foods in a very affordable price. And also Tea’nk U is ready to

delivery door to door around Palauig area only with a minimal delivery fee. Just contact through

their Facebook page and they are ready to go to deliver what you want at your house.

Tea’nk U is one of the well-known Milk Tea shop in Palauig, in this days of pandemic

Tea’nk U Milk Tea shop is one of the comfort places of people where they celebrate birthdays,

holidays and even ordinary days with them. This was a drink derived from afternoon tea with
milk and sugar which was originated in Hong Kong, and adapted by our country on the mid

2010.

They offer a lot of drinks and foods, on their drink they offer all the flavor of milk tea,

cheese cake series, cream cheese series, iced coffee, ice blended and frappe, lemonade, butterfly

pea lemonade and yogurt series on their drinks, meanwhile on their foods they offer some kind

of fries like, cheese flavor, barbeque, sour cream, salted egg and fries overload. All these drinks

have all the flavor they want.

II. RESEARCH DESIGN AND METHODOLOGY

Primary Data
Primary data was congregated from the website of the Securities and Exchange
Commission. This information includes external factors that affect the industry, market size,
market growth ranking positions of all milk tea shop companies in the Philippine market.
Secondary Data
Secondary data was gathered through the readings from the internet. The information
includes economic trends in baking business and its major competitor’s information; it also
includes the latest technologies in food and beverages industry in the Philippines. It also requires
information regarding recent trends regarding the industry under study. For comparative
purposes, background of some major competitors in the industry is also needed, especially in the
financial and operations aspect.
Scope and Limitation
The Strategic Management Paper is only limited to study and analysis of Tea’nk U
among the different sectors in the industry this study focuses on beverages institutions in the
Philippines. The focus of this paper is on the company’s performance and position in the market.
III. VISION / MISSION
Vision Statement
“The Tea’nk U milk tea shop shall be the one fastest growing tea shop here in Zambales
Diagnosis:
It answers the question “What do we want to become?”
Mission Statement
Tea’nk U milk tea shop mission is to provide a high quality drinks which will meet the

expectations of every customer we have and also Tea’nk U milk tea shop will give a very

affordable price with a very high quality of product to the lower to higher income residents. The

Tea’nk U milk tea shop will also give emphasis on the society which will help to provide work

on every people. And also the business itself will priority the benefits of every employee towards

its success. It is committed to continuously improve all aspects of the business in order to sustain

the long-term success of customers and employees in the whole province of Zambales.

Diagnosis:
The mission statement doesn’t include the customers; markets; concern for survival,
growth, and profitability; and concern for employees as shown in table 1.
Table 1. Diagnosis for Current Mission Statement
YES NO EXCERPT FROM MISSION STATEMENT
Customer  Lower to higher income earner residents

Products and services  High quality milk tea and side dishes

Markets  Local markets and tourists

Technology  High quality foods and beverages

Concern for survival,  High quality of milk tea

growth and profitability
Philosophy  Long term success

Self- concept  Continuously improve business aspects for

sustainability
Concern for public  Sustainable long term success of the municipality and
image the province
Concern for employees  Long-term success of every employee

The mission statements comply with the essential requirements of a good mission statement,
Fred David’s (2011) were used and it includes the following:
• Customer - Who are the firm’s customers?
• Products - What are the firm’s major products or services?
• Markets- Geographically, where does the firm compete?
• Technology- Is the firm technologically current?
• Concern for survival, growth and Profitability- Is the firm committed to growth and financial
soundness?
• Philosophy - What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
• Self-concept- What are the firm’s distinctive competences or major competitive advantage?
• Concern for public image- Is the firm responsive to social, community and environmental
concerns?
• Concern for employees- Are the employees’ valuable asset of the firm?
IV. ENVIRONMENTAL ANALYSIS

Market

Tea’nk U milk tea shop will focus on the lower to higher income earners either local area
residents or tourist in the municipality of Palauig across the whole province of Zambales.

Palauig is a coastal municipality in the province of Zambales.

The municipality has a land area of 310.00 square kilometers or 119.69 square miles which
constitutes 8.54% of Zambales's total area. Its population as determined by the 2020 Census was
39,784. This represented 6.12% of the total population of Zambales province, or 0.32% of the
overall population of the Central Luzon region. Based on these figures, the population density is
computed at 128 inhabitants per square kilometer or 332 inhabitants per square mile

Zambales is a province in the Philippines located in the Central Luzon region in the
island of Luzon. Its capital is Iba. Zambales borders Pangasinan to the north, Tarlac and
Pampanga to the east, Bataan to the south and the South China Sea to the west. With a land area
of 3,830.83 square kilometres (1,479.09 sq mi), Zambales is the second largest among the seven
provinces of Central Luzon. The province is noted for its mangoes, which are abundant from
January to April. It has 13 towns, Iba is the capital town.
Based on the 2010 Census of Population and Housing (CPH), the province of Zambales,
excluding Olongapo City, posted a total population of 534,443 persons as of May 1, 2010. This
is larger by 100,901 persons compared to its total population of 433,542 persons counted in the
2000 CPH. The increase in the population count from 2000 to 2010 translated to an average
annual population growth rate (PGR) of 2.11 percent. This is higher than the 1.61 percent annual
PGR of the province between the census years 1990 and 2000. If the average annual PGR
recorded at 2.11 percent during the period 2000 to 2010 continues, the population of Zambales
would double in 33 years. Fifty years ago, the population of Zambales was only 168,112 persons.
This population size is less than one third of the population of the province in the 2010 CPH.

Competition
 The competitor of Tea’nk U in Palauig is a lot where it is the Icylicous which is nearby
the Tea’nk U shop, L’s café and also a small business operation in barangay salaza where they
offer milk tea but doesn’t have brand name.
Socio-Cultural
Sociocultural is a combination of social and cultural factors. These factors are customs,
lifestyles and values that characterize a society or group. Cultural aspects include concepts of
beauty, education, language, law and politics, religion, social organizations, technology and
material culture, values and attitudes. Social factors include reference groups, family, role and
status in society, time and available resources. An understanding of sociocultural factors is
crucial in developing marketing strategies for businesses or organizations seeking action from
particular groups. Income is an important factor in deciding whether potential individuals are
likely to enroll in higher education.
People now a days are so in love with some sort of drinks that are on trend specially on
the adult which milk tea is on trend now a day where you can see a lot of milk tea shop on every
corner. Filipinos love to refresh and drink milk tea because of the taste and also a very affordable
price. A very new drinks is what people tend to buy, to be able to go with the flow of the trend in
social media.
Technology
Technology is a vital part of every business where they can be efficient and also through
this technology we can assure that we have some product innovations on the mere future. This
technology can be used to have some sort of innovations in product as well as in production.
Economy
Exchange Rate
The Philippine Peso will likely to continue to appreciate against the US dollar to
P52.90:U$1 (source: BSP, Dec. 2022).

Environmental
Climate change has had an impact on International farmers, ranchers, rural land owners,
and foresters and will continue to do so, through its influence on production, distribution, and
yields. Continuous climate change in the Philippines may affect the Baking Industry especially
the Flour Industry and soon will affect the prices of the products that uses flour, sugar etc.
In Philippines pure water is very difficult to obtain. This is due to excretion of biological
and other waster into the water of rivers, lakes, and ponds. As baking business water is very
important to production, the business may have the tendency of consuming too much water. It
may affect the products prices because water is one of the main ingredients of brownies and
other pastries.
Political
Tax rate policy will give awareness to the enterprise on whatever changes has been made
regarding taxes, so as to avoid evasion or other related matters. It is beneficial both on the
company and for the Government in terms of financial matters. And also other laws related to
business can affect the prices like the train law which affect the business and its prices.

Porters five forces model

Threat of Bargaining
new
Threat of powers of
Bargaining
entrants
new suppliers
powers of
entrants Rivalry suppliers
among
Rivalry
existing
among
competitors
existing
Bargaining competitors Threats of
powers of substitute
Threats of
Bargaining products
buyers
powers of substitute
or services
products
buyers
or services

Figure 1. Tea’nk U Adaptation of Porter’s Five Force Model

Porter’s five forces (figure 1) model helps Brownies Tea’nk U as they define the parameters
within which new rules, participants and markets continue to emerge.
Porter’s Five Force Model – Adapted for Brownies Tea’ nk U:
1.The Potential for Entry into the Industry
The product will be loved by the customers because it is affordable and has a good
quality.
The basic ingredients of milk tea are flavored powder, sugar syrup, ice, frapped, coffee,
nata, fruity jelly and pearl and on the other product they have fries, cheese powder, cheese,
cucumber, tomatoes and meat. The Tea’nk U milk tea shop can have trouble in terms of suppliers
because of the availability of the ingredients.
2.The Level of Rivalry of Competition
Increasing number of competitors since Chryz Café, Icylicous and L’s café are the most
well-known competitor of the Tea’nk U the business itself might have hard time to cope up to
the competition due to a well-known name of this business and they have their own branches
around zambales.

3.The Power of Buyers

There are many sellers and at the same time there are dominant buyers. Filipinos love to
eat sweet drinks and every occasion they tend to have bonding outside their home. The quality of
drinks and foods they have are same as the competitor and also is cheaper than them.
4.The Threat to Substitutes
A substitute performs the same or a similar function by a different means (Porter, 2008).
The threat of substitute is high if the substitute provides a cost-effective trade-off compared to
the original product.
In light of today’s economic status, people are searching for less expensive products.
Tea’nk U offers affordable milk tea product with a high quality same to their competitors.
5.The Power of Funders, Faculty, and Staff
In industry analysis, suppliers are defined as those organizations or individuals that
provide the materials, information or knowledge to allow an organization produce its goods
and/or services (Martinez and Wolverton, 2009a). Considering if the brand of the supplier is
strong and the role of quality and service of beverages products. There are a lot of suppliers in
the market, and it may be a very hard one for Tea’nk U to find suppliers that offers cheap cost
and gives a good deal since the business is still new in the industry. Because of the high price in
sugar trying to buy in large volume to lessen the cost. There is a high tendency that the business
will charge the cost to the consumer resulting into having a costly drinks product, if the company
can’t find a supplier which offers a good deal and price
Key Success Factors for the Business
• High Quality Product – Tea’nk U produce quality product that tailored the customers’ desire.
• Competitive Pricing – Tea’nk U produce quality delicious food and drinks at affordable price
that low-to-higher income residents can buy.
• New Ideas and Flavor – the business continues to innovate and develop new ideas and flavors
to address the trends.
• Channel of Distribution – the business adopts the most appropriate channels of distribution for
product accessibility.
• Customer Service – the business management practice high hospitality to customers in
addressing complains and suggestions.

C. Competitor Analysis
The main competitor that have Tea’nk U is the Icylicious wherein has a lot of store here
in Zambales, they are the one that are well-known milk tea shop here in our province.
Approximately they have branch from all over the municipality here in the province of
Zambales. Icylicious is a well-known store of milk tea here in Zambales they’ve been able to
build strong relationship with the customer which is a big advantage for them.
Icylicious is very popular brand name and they also have a very satisfying product that
everyone might love, they are one of the most popular and well-known milk tea shop here in
Zambales, well-known in terms of having a lot of branch almost 100% of the municipality they
have their branch. As I know Icylicious is very popular on social media where they have a lot of
followers and they are actively doing great in-terms of social; media marketing strategies.
Another competitor is frostea which is not so well-known shop but making its name all
the way to the top. The shop is located in Palauig which is also a big competitor that can threaten
everyone. They do not have a strong marketing strategies because of lack of presence in social
media.
Competitor Analysis Synthesis
The identified competitor as a source of high quality at affordable price brownies and to
sustain the long term success of customers and employees
Tea’nk U is on a strong competitive position having a very competitive marketing
strategy and also building strong bond together with the customer. As the business go along we
know that we will learn more about the competencies in the business. Because we just starting up
and gearing up for strong competition in the mere future.
Opportunities and Threats Identified
After the discussions about the external environment (primarily on high quality at
affordable price milk tea) which the business operates, the following threats and opportunities
have been identified:
OPPORTUNITIES:
 Occasions
 Competition is not so tight
  Market Growth
 Product is unique
THREATS
 Regulations
 Trade barriers
 Weather
 Power interruption

VI. COMPANY ANALYSIS

Strategy
Tea’nk U is dedicated to offer high-quality Milk Tea at a competitive price to meet the
demand of the lower- to higher-income local market area residents and tourists to sustain the
long-term success of customers and employees. Tea’nk U will make the best quality of drinks
and foods in the industry.
Market Position
Tea’nk U will target the low-to-higher income local area residents and tourist within the
province and will expand in the region, who are interested in trying new products and
experiences and are dissatisfied with the limited selection and lack of personal service found in
every corner of the province.
Structure
Organization Structure

Figure 2. Tea’nk U’s Organizational Structure

This structure defines how activities such as task allocation, coordination and supervision
are directed toward the achievement of organizational aims. It can also be considered as the
viewing glass or perspective through which individuals see their organization and its
environment.
Strengths and Weaknesses Identified
 After the discussions about the external environment (primarily on high quality at
affordable price brownies) which the business operates, the following strengths and weaknesses
have been identified:
STRENGTHS
 Owners experience
 Product Quality
 Cheaper Price
 Location
 Service Quality
WEAKNESSES
 Small Place
 Not yet well known
 Low Capitalization
 Not well innovated
VII. STRATEGIC (OR LONG-TERM) OBJECTIVE
• To be able to become a leading milk tea shop product selling business in the province and
in region 3.

VIII. STRATEGY FORMULATION

Recommended Business Strategies
Tea’nk U as being new in the industry should penetrate the market through product
customization and tapping possible distributors as a way of advertisement. Where they should
focus on online marketing strategies to be able to cope up on the race on the industry.
Recommended Organizational Strategies
After analyzing the key internal factors of the Chryz Café the following strategies are
highly recommended:
 the Tea’nk U milk tea shop should offer high quality drinks at affordable price
 Penetrate the market thru product customization
 Availability of the product based on customer’ demand
 Focus on online marketing strategy
 Be more efficient in terms of service they provided
 Have the ambiance of being old school in design of the shop
Financial Evaluation of Strategies
Tea’nk U established a forecast of the Income Statement and Cash Flows
Statement for the period 2021-2022. The financial projections below were based on the
strategic objectives and proposed strategies on the different aspects of the business.
Projected Income & Expense for 2 Years

INCOME 2021 2022

Total sales 685,325 698,256
 Cost of goods sold 288,600 292,456
Gross profit 396,725 405,800
EXPENSES
Advertising 30,525 30,525
Accounting 26,325 26,325
Utilities 29,250 29,250
Rent 60,000 60,000
Salaries 216,000 216,000
Total expenses 362,100 362,100
Net Income 34,625 43,700
Sales projection for FY 2017-2021 has an increase of 18.86%, Cost of Goods Sold was
projected to be 41.11% of sales. Net income has an increase of 1.14% per year.
IX. ACTION PLANS AND DEPARTMENTAL PROGRAMS
Objectives Key Result Program Key Performance Key
area Activities Performance Target Personnel
indices
Objective 1: Penetrate the >tap distributors >increase in market >3% increase in sales >marketing
To be able to market share per year department
become the leading
Milk tea distributors
Objective 2: local advertisement > to be known >increase in sales >1% increase in >marketing
To be able to locally and profit profit per year department
Develop Business
Status with public
relations

X. STRATEGY EVALUATION/MONITORING AND CONTROL

Balance Scorecard as strategy evaluation tool, it will allow the organization to evaluate
from the following perspectives: Financial Performance, Customer Knowledge, Internal
Business processes and Learning and Growth.

The new structure is in line with the objectives formulated in the previous sections. With
the new structure and strategies as a basis, Balanced Score Card is formulated to evaluate and
monitor strategies to be implemented.
For further monitoring of where and how the company is going with all the strategies
being implemented, a strategy map is developed. The strategy map is derived from the set of
strategies identified guided by the mission and vision of the institution.
 For further monitoring of where and how the company is going with all the strategies
being implemented, a strategy map is developed. The strategy map is derived from the set of
strategies identified guided by the mission and vision of the institution.

Tea’nk U Map Strategy

References
Armecin, Andrian(2021),Tea’nk U information and data base.
www.scribed.com