PHINMA UPANG COLLEGE URDANETA

Nancayasan, Urdaneta City

Accountancy Business and Management

FEASIBILITY STUDY

Presented as Partial Fulfillment of the Requirement for

Submitted to:
ARNEL Z. BAUZON, MBA
Professor

Submitted by:
BANAG, RICHARD LAURENCE LACADEN, GIAN DEMBER A.
BARTE, ANGELICA A. LAZARO, MARY NOVILEI N.
CALLE, ICY R. MARTINEZ, JUVY STEPHANIE A.
CARIÑO, ROSEMARIE O. OLIVERAS, KAREN B.
CASTADA, MIKAELA CLAIRE T. PRESTOZA, MICHELLE B.
DUMPIT, JANINE KYLE G. SEBASTIAN, ALEXANDRA JOEY B.
ESLAVA, AUBREY MAY D.

ABM Students

Second Semester
Academic Year 2020 – 2021
 CHAPTER 5

STRATEGIC PLANNING

This chapter will discuss how essential the internal and external factors are when

starting a new business. Identifying these factors can help Veggie-licious and Fruit-

tacular Cake Shop prevent unexpected risks that may affect its profitability. By

combining the results of both analyses, the company can gain a better understanding of

both external (macro-level) and internal (micro-level) factors to improve business

strategies and productivity.

Political and Legal Environment

It implies that different government policies, such as fiscal policy and industrial

policy, have a direct impact on a product's supply. Assume that there is a tax increase on

levy duties; this could decrease the availability of a service. Conversely, if the tax rate is

low, the supply of a product would increase.

Economic Environment

With the city's economic effect, as well as the demand for vegetarian sweets, the

business has been able to meet the needs of the people. As a result, the proponents

devised the concept of Veggie-licious and Fruit-tacular Cake Shop, with the goal of

providing healthy cakes at reasonable prices. The business has made the decision to

develop this product because there is a scarcity of this form of cake on the market.
Social and Cultural Environment

Filipinos are renowned for their love of food. A meal won't be complete when

there is no dessert to be eaten, as it is always part of the culture and social life of

Filipinos. Food has also evolved into a means for people to converse, meet, and relax,

and it caters to all moods. As a newly established business, the Veggie-licious and Fruit-

tacular Cake Shop will provide food that everyone will love, a healthy cake with a twist.

Technological Environment

With technological improvements, supply and profit will grow. It increases the

effectiveness and efficiency of production while also allowing for the development of

more creative goods.

SWOT ANALYSIS

SWOT Analysis is a framework used to evaluate a company’s strategic position

and its environment. It is a strategic planning technique that creates a business model that

will align with the resources and capabilities of the organization to the requirements of

the environment in which the firm operates. It depicts internal factors such as strengths

and weaknesses, as well as external factors such as opportunities and threats. Because of

the SWOT Analysis, the company gains an advantage. First, it recognizes the strength

that allows the business to accomplish its mission by providing specific goals that help in

business development and sustainability. Second, it tackles weaknesses that hinder the

business' productivity and prevent it from achieving its mission, but it also provides an

opportunity to reverse them.

executing plans that ensure the business becomes more successful. Lastly, it helps to

evaluate possible threats that arise in business that may jeopardize the business’

reliability and profitability.

Table 2
SWOT Analysis

Strengths Weaknesses

 Price: It provides product that has  New in the market.

an affordable price.  Weak image

 Location: It locates to an area that  Lack of experience

enormous number of people that

pass by. It is also in a safe

environment.

 Uniqueness: Offering high quality

and healthy cakes that are made of

vegetables and fruits.

 It has excellent customer service,

and it offers delivery.

 It builds strong relationship with

the customers.
 Opportunities Threats

 Business Model: Opportunity to  Competition: There are lots of

open franchising. popular cake shops.

 Expansion of the product range  Price War

 Product innovation  Economic downturn

 Create another line of business

such as having beverages.

 Increase production.

 Potential to become a premier

cake provider.

Marketing Objectives

1. Raise product recognition by adding new customers on a consistent monthly

basis.

2. Create a rise in revenue while maintaining or decreasing marketing expenditures.

3. Increase sales of Veggie-licious and Fruit-tacular Cake Shop by 15% in the next

two months.
Marketing Program Strategy

Veggie-licious and Fruit-tacular Cake Shop has an essential strategy that it will

execute. The first one is to create awareness that the business exists by having a

remarkable business logo and business name. Next is to create awareness with regards to

the business' product, its benefits, and features to customers, as well as working to build

customer loyalty and referrals through promotional mixes such as advertising, public

relations, and sponsorship, personal selling, direct marketing, and sales promotion. Since

the business is new to the industry, it will opt for this approach. In this manner, it can

meet its target market and generate demand for the product. Veggie-licious and Fruit-

tacular Cake Shop also use some strategies that can be used in different areas of

marketing which are product, place, price, promotion, and people or the distribution

channel.
 Table 3. Promos and Discounts

Buy 2, get one free party balloons promo - Purchase

Discounts 2 cakes for your special occasion and get our

special balloons.

Buy 3 or more cakes at Veggie-licious and Fruit-

Product Bundling tacular Cake Shop for a lower bundled price.

Starting in November until December, avail any of

Year-End Promo the products at 10% off.

It's a customer loyalty program in which the

Member-Exclusive Rewards business rewards them with a 5% discount on every

purchase.

Upload a Tik-tok video on the page of the business

and show how energetic you are after having the

Tik-tok Challenge delicious and healthy cake and get a chance to win

one of the best seller cakes.

Market Development is a marketing strategy in which a company seeks out new

groups of consumers that may be interested in its current goods and services. In other

words, it aims to grow into previously untapped markets. Market Development is a

strategic decision taken by a corporation to expand the current market rather than aiming

for a new market. The organization searches for potential customers to pitch the product

to a particular group of consumers to increase revenue.

Market research is the first step in developing a market. To figure out which

market segments are worth targeting, you'll need to conduct a segmentation study

wherein you will get a portion of a larger sector. A market can be segmented along with

demographic, geographic, psychographic (values and lifestyles), and product-benefit

lines. The second step in market development is to establish an advertising plan to enter

the new market once you've decided which market segments are worth pursuing. There

are four basic growth strategies you can employ to expand your business. These are

market penetration, product development, pricing strategy, and diversification.

If there are rivals in the market, pricing strategies are the most effective ways to

rapidly gain a significant share of the market and build consumer loyalty. You'll have to

think about how much your product would cost. You might use penetration pricing,

which involves actively pricing your product lower than the competitors.
 An excellent example of market development is when a company enters foreign

markets to expand. These businesses are continuing to broaden their products into new

international markets. This approach involves expansion from a current market to a new

market where the company's product does not currently compete.

Product Development

Product development typically refers to all the stages involved in bringing a

product from concept or idea, through market release and beyond. In other words,

product development encompasses the entire life cycle of a product. In addition to cakes,

Veggie-licious and Fruit-tacular will also focus on drinks. Soon, the business will also

offer healthy milk tea, which will perfectly match the cakes.

Competitive Strategies

A competitive strategy is a long-term plan devised by a company to achieve a

competitive advantage over its business rivals. Its goal is to establish a defensive position

in the industry while also producing a higher return on investment (Return on

Investment). When the market is highly competitive and customers are offered nearly

identical goods, such tactics are extremely necessary. Take, for example, the mobile

phone market.
1. Cost Leadership

The company's goal is to become the lowest-cost manufacturer in the industry,

which it can do by manufacturing on a large scale, allowing it to achieve economies of

scale. Large capacity utilization, strong bargaining power, and advanced technology

deployment are just a few of the factors needed for cost leadership.

In cost leadership, a firm's successful market strategy is to offer low prices, good

quality and enough consumers to be profitable.

2. Differentiation

Veggie-licious and Fruit-tacular Cake Shop has a distinct flavor, such as carrot,

potato, and beetroot, that satisfies customers' cravings, because some consumers

frequently seek out healthy food products. So the business came up with this concept.

Veggie-licious and Fruit-tacular Cake Shop is selling and, at the same time, helping

customers to maintain their health and well-being.

3. Focus

In order to bring the company to its greatest competitive advantage, a strategy

must be in place to keep the Veggie-licious and Fruit-tacular Cake Shop focused on what

it does best while preventing it from being distracted by other opportunities. The strategic

focus is the intersection of three elements.

are composed of values, mission, vision, and goals that inspire and motivate the members

of the business; (b) The Veggie-licious and Fruit-tacular Cake Shop's value proposition is

described as what the customer values in the offerings and rewards the company for; (c)

Determine which of the Veggie-licious and Fruit-tacular Cake Shop's products will be the

best in the world. The strategic focus helps to energize creativity, although the passionate

purpose, the practical needs of the company as a result of its climate, and the current key

and distinctive competency help to direct, encourage, and inspire the creativity required

to achieve and retain customers.