Findings - Busn Policy

8/4/2019 Findings - Busn Policy

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Findings

A. External Environment

1. General Environment and Its Segments


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GeneralEnvironmen

t

Concerns Changes/Trends

Opportunities Threats

1.DemographicSegment

a.PopulationSize

b. Age

Structure

c.GeographicDistribution

d. EthnicMix

e. IncomeDistribution

Increasing rateof population116976 as of2007 (Growthrate from 2000-2007 is 10.45%)

As of the year

2000, 40.04% ofthe population is

composed ofunder 15 Years

Old, 56.72% from15-64 Years Old

and 3.24% from65 Years and

Over.

A lot of peoplefrom othermunicipalitieshave beenmoving toCalapan City.

The ethnic mix

or the assemblyof the peoplewith differentculture,background andtraditionscontinues tochange.

TheestimatedCityhouseholdincomepovertyratioorthetotalnumberofhouseholdsbelowtheincomepovertylineovertotalnumberofhouseholdswasatleast30.15% as of2000.

As this trendcontinues, thebusinesses willhave morecustomers.

Currently, the

customers of thefirm are thosepeople under the15-64 years oldbracket. Theincreasinggrowth of thisbracket maysuggestopportunities forbusinesses tocontinue offering

menus to meetthe needs of anincreasing olderpopulation.

This has goodeffect to theestablishmentsbecause therewill be morepotentialcustomers.

This may beconsidered as athreat for thebusinesses sinceit indicates dropof customerspurchasingpower.

2. Economicsegment

Calapan City isexperiencing3.2% during2009 increase to

3.8% during2010

Taking intoconsiderationthis trend, thecompany will

experiencedifficulty in


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B. Industry Environment

The Five Forces of Competition Model


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THREAT OFNEW

ENTRANTS

BARGAININGPOWER OFSUPPLIERS

BARGAININGPOWER OF

BUYERS

THREAT OFSUBSTITUTEPRODUCTS

RIVALRYAMONG

COMPETINGFIRMS

-New stalls inthe New PublicMarket andwithin thevicinity ofMabuhayPanciteria-low capitalrequirementsto enter in this

industry. If aperson raisedenough capital theycould easily openup their ownrestaurant withoutmany restrictions.

Buyer bargainingpower is relatively

high for Panera. Therestaurant mustconstantly be stayingin tune to customerpreferences or thecustomers will easilyeat at anotherrestaurant. The foodindustry is highlycompetitive and inaddition there arelow switching costsfor consumers andconsumers haveaccess to quality and

nutrition information.

Of course thereare not any

substantialsubstitutesfoodbecause peoplehave to eat foodevery day. Food isa basic need andnothing cansubstitute that.Since there are nomajor substitutesthe threat isrelatively low inthis category.

However, thereare manypossiblesubstitutes forfoods offeredby MabuhayPanciteria. (Ex.Spaghetti forpancit, etc)

There is a lot ofrivalry between

and among theestablishmentscurrently in theeatingestablishmentindustry. There areconstantly newentrants to worryabout as well asestablishmentsstruggling to make aprofit. MabuhayPanciterias maincompetitors includeSuperior, Capitol,Chowking and andother restaurants.Moreover, there arehundreds ofrestaurants thatcompete withMabuhay Panciteriathat has a negativeimpact on thebusiness revenue.

-MabuhayPanciteria isnot that

dependent toany particularsupplier sincethe prices ofthe rawmaterials arethe same andThere are nosubstitutes for

the particular

input,. Mabuhaysuppliers have a

relatively lowbargaining powerbecause theyimplement a lot ofcontrols to keep theirbargaining powerlow. Mabuhaycontrols the qualityof their main productby making thenoodles themselves

daily.- The switchingcosts from one

supplier toanother are low,

-MabuhayPanciteria hasalready made

a name in theindustry.


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Decrease

For

ce

The five forces analysis enables the analysis of the industry according toa range of key factors affecting the industry. The lower the forces, themore attractive the industry is. The average of the forces is high so theindustry would be deemed averagely profitable.

B. Internal Environment Analysis

Resources Changes/Trends

Strengths Weaknesses

1. Tangible a. Financial Highly profitablebusiness andhas a clearcompetitiveposition

It is astrengthbecause thecompanymaintains itsstability

although it isoperating in averycompetitivemarket andretainedprofits even inpooreconomic

Increase

force


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climate.Unauditedfinancialstatement of thecompany for theyear 2009

It is a weaknessbecause it maynot reflect thereal operationthat has

occurred duringthe year 2009.

Increase incurrent ratio

The overallliquidity ofthe firmseems toexhibit areasonablystable trend.

Decrease ininventoryturnover

CeeCeesinventoryappears to bein bad shape.

Increase inaveragecollection period

The firm maybe experiencingsome problemswith accountsreceivable.

Decrease debtratio

It is astrengthbecause thecompanylower the

portion oftheir equityfinancedthroughborrowing.

Decrease timeinterest earnedratio

It is a weaknessbecause itshows thecompany isunable to meetits obligationsregarding

interestpayments asthey fall due.

Low shareprices

CeeCee couldbecome thesubject of atake-over bid ofa largecompetitor.


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b. Physical Prime locationsof its shops

Spacious shopswhich usesophisticatedarchitecturaldesigns

Carefullydesigned shopwindow displayswhich arechanged at leastonce a week

Careful andvisuallyappealing layoutof clothingdisplays(Matching theirclothes to theiraccessories)

CeeCee has alargedistributioncentre inNorthernEurope, closedto a shippingport.

This enablesthe companyto avoidexpensiveadvertisingand has

seized theopportunity touse historicbuildings inkey shoppingareas.

This makesthe shopsappealing tocustomers tobrowse and to

provide acomfortableenvironmentto shop.

This allowsthe latestclothingdesigns to beshowcased toprospectivecustomers.

This mayattractcustomers tochoosecoordinatingclothes andaccessoriesand tomaximizesalesrevenue.

It enables tomove allproducts, witha minimum ofhandling, tomeet theinventory


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CeeCee has arollingproduction ofnew designswith innovativeclothing designs

appearing inshops everythree weeks onaverage.

requirementfor of eachshop.

Thisencourages

the 17-times-a-year visits.

c.Organizational

Lack of accurateproductprofitabilityanalysis

Out of its manyclothing linesand homefurnishingsector, itcannot bedeterminedwhich of theline isperforming wellper squaremeter area.

d.Technological

Integratedinventory,production andlogistic system(CCIPI)

Website

Finance system CCF

This meetsthe changingnumber ofshops,suppliers andnumbers ofproduct lines.

This allowscustomers toviewinventorylevels andenablescustomers tozoom inclosely on allangles ofeach product,therebyallowing themto get asclose to theproduct asonlineshoppingallows.

Highlydependent onIT system


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Executiveinformationsystem

This enablestheproduction ofmonthlymanagement

accounts andannualstatutoryaccounts andhas the abilityto generateweekly anddaily salesrevenue andmargininformationfor

managementto monitoractual againstplanned.

Thishighlights keyvariancesfrom agreedbudgets andplans andallowsmanagementteam and thedesigners tocloselymonitor salesdata withinone workingday and tocompare datato plans andto take actionwhere a newproductappears to besuccessful, orunsuccessfulin each shop.

2. Intangibles HumanResources

CeeCee employsover 180designers, all of

It is astrengthbecause it is


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whom areyoung. (with anaverage age of27)

Experiencedboard ofdirectors

able to createapproximately 15000 newdesigns eachyear.

This addsvalue to thefirm sincethere are keypeople whobring wideknowledge todecisions.

Innovation Fast fashionbusiness model

Policy forcopying (or re-interpreting)other designerswork to originaldesigns and ahouse style ofits own.

Sophisticated Itsystems thatfeedback salesdata to headoffice daily,close contactvia IT system

Through this,designs movefrom catwalkto store in thefastest timeto capturecurrent trendsin the market.

This makes allof theCeeCeesdesignsunique and atthe leadingedge of thecurrenttrends.

It will result toCeeCeesmanufacturers to createand supplynew productdesigns intoits shopswithin just 10-15 days.

Reputational Excellentcustomer care

Provides anuncrowdedpleasantshoppingexperiencewhere the


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Customers havethe perceptionthat the designsare limited andexclusive.

Excellentsupplierrelationships

The companytakes its CSRseriously.

customer isnotapproachedby shop staffunless asked,but shop

staffs areconstantlyavailable ifrequired.

This hasresulted incustomersmaking quickdecisions tobuy what theysee, as they

know thatthere is achance that ifthey do notbuy whenthey first seethe item, theymay lose thechance if it issold or notavailable inthe size orcolour thatthey wouldlike.

They canwork closelywith CeeCeesdesigners andare linked intoCeeCees ITinventorycontrolsystem andhave dailyupdates onwhat item toproduce andwhat productstodiscontinue.


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This addstrust andbuilds a goodreputation forthe customers

to see.

Documents

Findings - Busn Policy