CHAPTER 2

A. PO LITICAL ENVIRO NMENT

Through paying taxes and other necessary financial costs, ABC's

CoffeeTeaRia would contribute to environmental sustainability. To ensure what

the company offers complies with health and safety laws and regulations, the

business will ensure that Food and Drug Administration (FDA), Department of

Health (DOH), and sanitary licenses are applied for. ABC's CoffeeTeaRia also

guarantees that licenses, business permits and tax registrations are provided

to make the business legitimate to prevent any fines and to place the

business at risk. The said business is indeed informed of the Republic Act

(RA) No. 9711, otherwise known as the FDA Act of 2009, which prohibits the

manufacturing process, importation, exportation, selling, offer for sale,

distribution, distribute or purchase of any food by any legal or natural

 individual without a license to operate (LTO) from the FDA. ABC's

CoffeeTeaRia is also knowledgeable with the "Consumer act of the

Philippines" or Republic Act No. 7394 in which it addresses how customers

are protected from fraudulent businesses and maintain their rights in the

Market. Apart from consumer rights, business is still aware of the labor code

of the Philippines. It is a legal code that specifies all work practices and labor

relations in the Philippines. This is meant to help protect businesses and

workers, while at the same time ensuring that neither is subject to unequal

treatment or misconduct. As far as the supplies needed for the company are

concerned, they will be purchased from the local distributors so that there is

no need to apply a license in terms of import and export regulations.

Market. Apart from consumer rights, business is still aware of the labor code of the
Philippines. It is a legal code that specifies all work practices and labor relations in
the Philippines. This is meant to help protect businesses and workers, while at the
same time ensuring that neither is subject to unequal treatment or misconduct. As
far as the supplies needed for the company are concerned, they will be purchased
from the local distributors so that there is no need to apply a license in terms of
import and export regulations.

B. ECONOMICAL ENVIRONMENT
As the countrys economies are continue to grow, there are many possible economic
factors that will affect the business. The most common factor is the supply and
demand. Coffee and tea is an agricultural commodity and if the production of it will
change, it will also affect the price of the product. In short, the lower the production,
the higher the price and the higher the production, the lower the price.
To support the production of the business, the entrepreneurs will work with the local
suppliers that can surely and possibly strengthen the local economy. Working with
local suppliers will aim to improve public relations that is a huge help to all people
living in the community and a boost to the economy. It will also improve speed to the
market since time is very important, it is essential for the business owners to work
with the local suppliers that will help them to boost the product and maintain a
competitive edge.

With local sourcing, it will allow the business to have greater control when it comes
to the quality assurance of the product. This will also help to achieve accurate
budget forecasting for the means of regulation and legal considerations. Lastly, the
tradition. The business is created with an image and impression for those people
who really like to have some break having their coffees and teas for them to relax
and chill whether it may be local or international franchise like The White Cup, Coffee
Bean, and Starbucks. ABC's CoffeeTeaRia, plays an important role for the
consumer's lives. The products such as coffees and teas may be differ from other
brands and hidden symbolism, they may be similar in terms of preparation method
usage. Many people purchase coffee and tea and willingly spend more than a
hundreds or thousands of their money just to avail a business promo and stuffs like
planners, tumblers and merchandise.
Coffees and teas has also penetrated by an individual in their household. They take
coffees or teas while working or studying at home. Every entrepreneur have their
own strategy on how they will increase their product sales and for their business to
be well known all over the world. Because of the rise of technology, many
entrepreneurs come up with an idea to include internet business with coffee
business known as internet cafés where you can do your paper works or play online
games. Moreover, for those people who loves animals, pet cafés also shares for
coffee and tea industry.

Locally and internationally, entrepreneurs who created their business with coffees
and teas promote their own business in their own strategies. Others are advertising
their business through social media where customers can see their products,
satisfy their cravings and interest, and share some feedbacks.

The business, ABC'S CoffeeTeaRia fits culturally in social system and commits to use
local ingredients to continuously promote community engagement and uniqueness.
Our business also provides good service such as internet, books, games, sleeping
pods, etc. for our customers to be productive, chill and relax. Overall, business
products such as coffees and teas will remain the world's greatest addiction and will
As we all know at the time when the technologies were not yet updated, we only
used paper and pen often. But as time goes on, technologies are constantly
evolving and in our current generation we are favored for the reason of more and
more technologies are being developed to help facilitate our tasks. With the help of
these innovative technologies, ABC's CoffeeTeaRia can better serve the future
customers.

Nowadays, one of the most important technology among the food and drink
industries is the existence of genetic engineering that helps to improve taste and
yield. With the help of it, it allows the coffee industry to grow in popularity and
generate larger profits. Another useful appliance that will make the business to
produce its product is the coffee vending machines and coffee grinders. It will
support the business to have a better efficiency and experience low maintenance
for that fact that it is uncomplicated to use.

Laptops and printers are one of the technologies that will use and provide within the
company to help the employees facilitate the encoding of sales and also use the
printer for the design of our products. Wireless Fidelity or Wi- Fi is also among the
things needed for easy access to the company's websites and to be updated with
emails, etc. CCTV is also needed for in the companies because entrepreneurs want
to ensure security in the operating area.
E. ECOLOGICAL ENVIRONMENT
These are the main challenges faced by coffee- related entrepreneurs; first is the
climate and soil conditions affecting cultivation and production which slows down
and delay the delivery of materials and supplies on time. Based on the study, climate
change could significantly reduce coffee production in the coming years. Insects
and pests also affect coffee production. With the proliferation of pests, the shortage
of production is inevitable as they are destroyed by insects. Sustainable farming
and improves the quality of the environment. It provides warm, comfortable and
relaxing atmosphere to its customers.
 amount of pollutants just like plastics that are usually used by some coffee shops
especially here in our country. A certain study estimated that 500 billion disposable cups
are produced annually. Since it is non- biodegradable, it will took for a hundreds of years
before it became totally decomposed which can contaminate the soil and can destroy the
quality of it. It is also harmful to the animal's health and even to humans. Some plastics and
other non- biodegradable materials used in coffee shops were just only disposed on
drainages going to our local waterways such as rivers and lakes. And because of its high
level of aquatic toxicity, it ruins the quality of the quality of both salt water and fresh water.
It is also hazardous to aquatic creatures such as corals, fishes, algae, etc. Environment
doesn't deserve destruction, it deserves preservation that's why instead of using these
indirect polluters, ABC's CoffeTeaRia will be using eco- friendly, compostable and
disposable packaging such as paper coffee cups and wooden coffee stirrers in order to be
greener and produce less waste. Producing less waste will not just be the priority of this
cafe. It will also implements discipline in terms of waste disposal. It will practice the 3r's and
segregation of wastes by providing trash bins with proper labels for the customers to know
where they should throw their wastes.