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A. External Environment 1. General Environment and Its Segments

General Environmen t 1. Demographic Segment

Concerns a. Population Size

Changes/Tren ds Increasing rate of population 116976 as of 2007 (Growth rate from 20002007 is 10.45%) As of the year
2000, 40.04% of the population is composed of under 15 Years Old, 56.72% from 15-64 Years Old and 3.24% from 65 Years and Over.

Opportunities As this trend continues, the businesses will have more customers. Currently, the customers of the firm are those people under the 15-64 years old bracket. The increasing growth of this bracket may suggest opportunities for businesses to continue offering menus to meet the needs of an increasing older population. This has good effect to the establishments because there will be more potential customers.


b. Age Structure

c. Geographic Distribution

A lot of people from other municipalities have been moving to Calapan City. The ethnic mix or the assembly of the people with different culture, background and traditions continues to change.
The estimated City household income poverty ratio or the total number of households below the income poverty line over total number of households was at least 30.15% as of 2000.

d. Ethnic Mix

e. Income Distribution

This may be considered as a threat for the businesses since it indicates drop of customers purchasing power.

2. Economic segment

Calapan City is experiencing 3.2% during 2009 increase to 3.8% during 2010

Taking into consideration this trend, the company will experience difficulty in

B. Industry Environment

The Five Forces of Competition Model

THREAT OF NEW ENTRANTS -New stalls in the New Public Market and within the vicinity of Mabuhay Panciteria -low capital requirements to enter in this industry. If a
person raised enough capital they could easily open up their own restaurant without many restrictions.



Buyer bargaining power is relatively high for Panera. The restaurant must constantly be staying in tune to customer preferences or the customers will easily eat at another restaurant. The food industry is highly competitive and in addition there are low switching costs for consumers and consumers have access to quality and nutrition information.


Of course there are not any substantial substitutes food because people have to eat food every day. Food is a basic need and nothing can substitute that. Since there are no major substitutes the threat is relatively low in this category. However, there


There is a lot of rivalry between and among the establishments currently in the eating establishment industry. There are constantly new entrants to worry about as well as establishments struggling to make a profit. Mabuhay Panciterias main competitors include Superior, Capitol, Chowking and and other restaurants. Moreover, there are hundreds of restaurants that compete with Mabuhay Panciteria that has a negative impact on the business revenue.

are many possible substitutes for foods offered by Mabuhay Panciteria. (Ex. Spaghetti for pancit, etc)

-Mabuhay Panciteria is not that dependent to any particular supplier since the prices of the raw materials are the same and
There are no substitutes for the particular input,. Mabuhay
suppliers have a relatively low bargaining power because they implement a lot of controls to keep their bargaining power low. Mabuhay controls the quality of their main product by making the noodles themselves daily.

-Mabuhay Panciteria has already made a name in the industry.

The switching costs from one supplier to another are low,

es aer c e D ecr oF

Increase force The five forces analysis enables the analysis of the industry according to a range of key factors affecting the industry. The lower the forces, the more attractive the industry is. The average of the forces is high so the industry would be deemed averagely profitable.

B. Internal Environment Analysis

Resources 1. Tangible a. Financial Changes/Tren ds Highly profitable business and has a clear competitive position Strengths It is a strength because the company maintains its stability although it is operating in a very competitive market and retained profits even in poor economic Weaknesses

climate. Unaudited financial statement of the company for the year 2009 Increase in current ratio The overall liquidity of the firm seems to exhibit a reasonably stable trend. CeeCees inventory appears to be in bad shape. The firm may be experiencing some problems with accounts receivable. It is a strength because the company lower the portion of their equity financed through borrowing. It is a weakness because it shows the company is unable to meet its obligations regarding interest payments as they fall due. CeeCee could become the subject of a take-over bid of a large competitor. It is a weakness because it may not reflect the real operation that has occurred during the year 2009.

Decrease in inventory turnover Increase in average collection period Decrease debt ratio

Decrease time interest earned ratio

Low share prices

b. Physical

Prime locations of its shops

Spacious shops which use sophisticated architectural designs

This enables the company to avoid expensive advertising and has seized the opportunity to use historic buildings in key shopping areas. This makes the shops appealing to customers to browse and to provide a comfortable environment to shop. This allows the latest clothing designs to be showcased to prospective customers. This may attract customers to choose coordinating clothes and accessories and to maximize sales revenue. It enables to move all products, with a minimum of handling, to meet the inventory

Carefully designed shop window displays which are changed at least once a week Careful and visually appealing layout of clothing displays (Matching their clothes to their accessories)

CeeCee has a large distribution centre in Northern Europe, closed to a shipping port.

CeeCee has a rolling production of new designs with innovative clothing designs appearing in shops every three weeks on average. c. Organizationa l Lack of accurate product profitability analysis

requirement for of each shop. This encourages the 17-timesa-year visits.

d. Technological

Integrated inventory, production and logistic system (CCIPI) Website

This meets the changing number of shops, suppliers and numbers of product lines. This allows customers to view inventory levels and enables customers to zoom in closely on all angles of each product, thereby allowing them to get as close to the product as online shopping allows.

Out of its many clothing lines and home furnishing sector, it cannot be determined which of the line is performing well per square meter area. Highly dependent on IT system

Finance system CCF

Executive information system

This enables the production of monthly management accounts and annual statutory accounts and has the ability to generate weekly and daily sales revenue and margin information for management to monitor actual against planned. This highlights key variances from agreed budgets and plans and allows management team and the designers to closely monitor sales data within one working day and to compare data to plans and to take action where a new product appears to be successful, or unsuccessful in each shop. It is a strength because it is

2. Intangibles

Human Resources

CeeCee employs over 180 designers, all of

whom are young. (with an average age of 27)

able to create approximatel y 15000 new designs each year. This adds value to the firm since there are key people who bring wide knowledge to decisions. Through this, designs move from catwalk to store in the fastest time to capture current trends in the market. This makes all of the CeeCees designs unique and at the leading edge of the current trends. It will result to CeeCees manufacturer s to create and supply new product designs into its shops within just 1015 days. Provides an uncrowded pleasant shopping experience where the

Experienced board of directors


Fast fashion business model

Policy for copying (or reinterpreting) other designers work to original designs and a house style of its own. Sophisticated It systems that feedback sales data to head office daily, close contact via IT system


Excellent customer care

Customers have the perception that the designs are limited and exclusive.

customer is not approached by shop staff unless asked, but shop staffs are constantly available if required. This has resulted in customers making quick decisions to buy what they see, as they know that there is a chance that if they do not buy when they first see the item, they may lose the chance if it is sold or not available in the size or colour that they would like. They can work closely with CeeCees designers and are linked into CeeCees IT inventory control system and have daily updates on what item to produce and what products to discontinue.

Excellent supplier relationships

The company takes its CSR seriously.

This adds trust and builds a good reputation for the customers to see.