ASSUMPTION COLLEGE

San Lorenzo Village, Makati City

A Business Project Presented to the Faculty of the

Milleret School of Business and Management for Women

In Partial Fulfillment of the

Requirements for the Subject of
ENT103-9: Environmental Scanning & Opportunity Identification

JOANN ULIGAN
ANDREA DE GUZMAN

May 2019


EXECUTIVE SUMMARY

This paper contains all the suggested actions to be made by the chosen

organization or company to be able to have a grasp on environmental scanning and

opportunity seeking helping them for the betterment of the company. The individuals

involved in this project is dedicated on providing the best and reliable information for

the readers. As per the findings of this project, a lot of factors affect BENCH/. From the

emergence of technologies, up to the continuous increase of malls/establishments. Due

to the factors politically, economically, socially, technologically, environmentally,

businesses such as BENCH/ are affected by these things leading them to come up with

strategies that will enable them to still be profitable despite of the challenges that they

may encounter. BENCH/ is composed of employees that are truly committed on

providing quality products/services to target consumers to be one of the leading brands

under Trading and Distributor Industry not just here in the Philippines but also to other

countries as well. Considering the company’s strengths and weaknesses, assessment is

needed for the company to maximize its potential and to maintain competitive

advantage. Action plan is also needed for more comprehensive guidelines. The company

includes: Brand Marketing Department, Ad and Promo Department, HR Department,

Operations Department, and MIS or Management Information System. To execute the

suggested plans, the whole team included in the organization/company must work

hand-in-hand to achieve their goals and aspirations. Some of the identified

opportunities include: establishment of new branches, and offering of another product

due to increasing building of malls and changing preferences of the people.

TABLE OF CONTENTS
Chapter I: Introduction 4
I. Project Statement
II. Background of the Study 4
III. Definition of Terms 6
IV. Methodology 7
Chapter II: Review of Current Situation
I. Company/Organization Profile
A. History/Organization
B. Mission
C. Vision/Goals
D. Structure
II. Company/Organization Growth and Performance History
III. Stakeholders Survey - Market/Industry Trends
IV. Market/Organization/Industry Problems
V. Market/Organization/Industry Data
VI. Environment Scanning - Internal
A. Company/Organization SWOT
1. Entrepreneurial Leadership
2. Enabling Business Environment
3. Marketing: Product, Price, Place, Promotion, Process, People, Productivity
and Quality, Physical Environment
4. Operations: Manpower, Machineries/Technology, Management/Money,
Measurement, Material, Methods, Milieu/Mother Nature, Maintenance
5. Organization and Human Resources
6. Finance
7. Business Continuity Planning (BCP)
B. Porter’s Model
1. Threat of New Entrants
2. Bargaining Power of Suppliers
3. Bargaining Power of Buyers
4. Threat of Substitute Products
5. Industry Rivalry
VII. Analysis of Current situation/Current Outcomes
Chapter III: Macroenvironmental Forces
I. Environment Scanning – External
A. Political and Legal Factors
B. Economic Factors
C. Socio-Cultural Factors
D. Technological Factors
E. Legal Factors
F. Environmental Factors
II. Analysis of Macroenvironmental Forces

Chapter IV: Environment Scanning and Opportunity Identification Results
I. Action Planning / Strategic Measures
II. Improvement Theory and Implementation Plan

References
Annexes / List of Tables / Figures



Introduction

I. Project Statement

This project aims to determine the different macroenvironmental and

microenvironmental factors that affect BENCH/ to be able to come up with

specific, measurable, attainable, realistic, and time-bound action plans, and

strategic measures.

At the end of this project, we will have:

1. Improvement Theory/Implementation Plan

2. Action Plan/Strategic Measures

3. Radar Chart for Action Plan

4. SWOT Analysis

5. Porter’s Model

6. PESTLE Analysis

II. Background of the Study

Fashion sector has been dominating the Philippines. As per ASPBI or

Annual Survey of Philippine Business and Industry, fashion sector falls under

the Trading Industry. Trading industry includes, wholesale and retail sale.

Retail sale of wearing apparel accounted to the highest number of

establishments under the Trading industry. Our chosen company for this

project is Bench, Inc.

BENCH/ or simply known as Bench is a Philippine retail brand of clothing,

bags, accessories, footwear and fragrances owned by Suyen Corporation. It

started as an opening as a small store selling men's T-shirts. The company

expanded its target customers and made a ladies' line, underwear, fragrances,


housewares, snacks and other lifestyle products. Bench Philippines is not

affiliated and not to be confused with Bench UK as Bench Philippines is the

original and was founded earlier than its British namesake.

We chose Bench/ as our business for this project because the company

not only provides one of the most competitive products/services to the

masses but also provides concern towards giving back to the community and

the Philippine economy. Bench/ is known as a Filipino top-of-mind brand.

Providing Filipino’s fashion since 1987. Bench/ falls under the Trading

industry highlighting retail sales.

For a lot of Filipinos, the word bench usually means the country’s most

popular clothing brand and a pioneer among other local brands in terms of

marketing and advertising efforts. Bench does not only fall under retail

selling but also engaged in distributorship. The company is also the local

distributor for international brands such as: (1) Cotton On and Cotton On Kids

from Australia, (2) Vero Moda from Denmark, (3) American Eagle, curated

multi-brand store Assembly, (4) Aldo for shoes, (5) Call It Spring for

accessories from Canada, (6) Charles + Keith and Pedro for shoes and bags

from Singapore, and (7) Korea’s Face Shop. The business also carries the UK’s

Cath Kidston for clothing, bags, and accessories, Paul Smith for luxury apparel

and accessories, FOX clothing from Israel, Under Armour, Cappellini, Fritz

Hansen, Magis, and MDF Italia. The list also includes international home and

office furniture line such as: Foscarini, Australia’s Rubi shoes, Origins, Jo

Malone, Bobby Brown, and cosmetic and fragrance brands such as, Kiehl’s, and

Estee Lauder. (Philippine Primer, 2017)

III. Definition of Terms

This section contains the list of terms that are used operationally in this project

to give clarity to the readers.

1. Millennials – 23 to 38 years old and above

2. Radar Chart - s a graphical method of displaying multivariate data in

the form of a two-dimensional chart of three or more quantitative

variables represented on axes starting from the same point.

3. Assessment Plan - an outline to facilitate continuous improvement of

student learning.

IV. Methodology

Research Design

Descriptive Research. Note: Observation of its direct and indirect rivals is also

done.

Treatment of Data

1. Data will be analyzed using Porter’s Model,

2. SWOT analysis, and

3. PESTLE analysis.

Sources of Data:

! Primary data is obtained from a survey questionnaire answered by one of the

key employees of Bench Inc. Secondary data will be utilized including,

articles, journals, and websites for other information about the company.

Inputs Process Output

Primary Data Porter’s Model Recommendations and

conclusions relative to the
Secondary Data SWOT Analysis
company, Bench Inc.
PESTLE Analysis

SWOT
Research Paradigm

Figure 1

Figure 1 shows the types of data that will be utilized, the processes that will be

done, to come up with the identification of possible action plans, recommendations, and

conclusions for the business, “ Bench, Inc.” relative to its profile, standing in the market,

and sector/industry.

Review of Current Situation

I. Company/Organization Profile

BENCH/ is a manufacturer and distributor of casual clothing, accessories and

cosmetics. The company was established in 1987, BENCH today is the leader in the

Philippine’s Trading and Manufacturing industry. The brand is found in over 500

boutiques, concessionaires, franchise outlets and authorized wholesalers. It is

headed by Ben Chan, chairman and founder of Suyen Corporation, and executive

creative director in Bench/.

Bench/ is the Philippines’ leading clothing and lifestyle brand. Its story dates

back to 1987, when founder and chief innovator Ben Chan got the opportunity to

design and sell men’s T-shirts and jeans at a local department store. Thirty years

later, with shops in San Francisco, Saudi Arabia, Dubai, Bahrain, Myanmar, Japan,

and various cities in China, Bench is now providing affordable and quality products

not only to Filipinos, but also to fashion lovers from different corners of the world.

Today, Bench/ is recognised as a retail powerhouse and as a consistent provider

of fun and functional casualwear, as well as other youthful, practical and trend-

purveying products. For its celebrated apparel line, Bench/ considers comfort and

reliability as its utmost priority. From graphic tees to plain T-shirts, tank tops to

trousers, jackets to denim jeans, and now an expanded offering that has come to

include underwear, bags, accessories, footwear, fragrances, and cosmetics, Bench

has grown into what many might refer to as a one-stop shop.

A. History/Organization

Bench/ began in 1987 as a small store selling men’s t-shirts. Then,

it grew at an unparalleled rate becoming the pioneer in the use of

celebrity endorsers, television, and giant billboards to propel a fashion

brand that offers premium quality products at affordable prices.

From being the number one store of men’s apparel, Bench/ has

grown to include a ladies’ line, underwear, fragrances, housewares,

snacks, and a wide array of other lifestyle products. Throughout the years,

BENCH/ has achieved the distinction of being present virtually in every

retail space in the Philippines, and has built a worldwide network of

stores and outlets, reaching as far as the United States, the Middle East,

and China.

As it sliced through demographic divisions -- age, gender, socio-

economic status -- a stirring slogan, “Bench/ is forever”, became the

company’s abiding creed.

B. Mission

“When we create, we inspire.

When we make, we innovate.

When we lead, we serve.”

C. Vision/Goals

“To be a recognized world brand among the best world brands”

D. Structure

The Bench Company is a family run fashion and lifestyle business

under a sole proprietorship type of business structure with Ben Chan,

chairman and executive creative director, spearheading the company.

Bench, which consists of 4,000+ employees, is divided into 15-16

departments such as Finance, Creative, Legal and Visual, etc. The

company’s organizational structure is a mix of flat and hierarchical, where

the top part of the structure is flat (wherein the CEOs of different

departments are equal) and further down it is in a hierarchical structure

(managers & staff).

The decision making and controlling of the company is centralized

with Mr. Ben Chan as a very participative and collaborative head, all

decisions should be administered and approved by him. Memos and

emails are the main lines of communication of the company.

II. Company/Organization Growth and Performance History

Bench/ started out as a small business selling men’s t-shirts consigning at

department stores like Shoemart and Landmark back in 1987. During this times it

was prevalent that a brand is known for just one item alone and bench was known

for t-shirts. The brand is a contraction of its founder’s name, Mr. Ben Chan, who is

currently the company’s Chairman and Chief Creative Director. Back then, he was

solely responsible for the designs of the t-shirts and oversees the production of

these garments.

Bench/ established their first store at the “Quad” which is now more popularly

known as Glorietta in Makati while another stand-alone store was built in SM North

Edsa eventually. Bench’s logo was of much literal take with an actual bench

integrated on the logo’s design. Around the latter part of the 1990’s, before the

internet became a global phenomenon, Bench joined in on the technology craze

adding a “/” (slash) to their trademark signifying its forward and futuristic vision for

the brand. The logo in proliferation now is of the word or brand name “bench/” in

white color placed on top of a red rectangle.

During Bench’s early years, there were still no major local fashion brands that

existed. Penshoppe did join the market later on and became one of their early

competitors but Bench grew at an unparalleled rate. They were the pioneers in the

use of celebrity endorsers. Richard Gomez was their first endorser and it was of

mutual benefit as their partnership both made them into household names. It is

Bench’s strategy to tap up-and-coming actors to promote the brand. Bench was also

aggressive in publicity being the first fashion brand in the country to use television

advertisements and utilize giant billboard for their exposure.



Bench/ is known as the Philippine’s most successful crossover in fashion and

lifestyle. It adapted the global trend of fashion houses and labels reinventing

themselves as lifestyle stores. From its humble beginnings, Bench has now a wide

range of products including Bench Tweeners for budding teenagers, Bench Body and

Bath specializing in bath and fragrance products, and now HerBench offering a

complete women’s line, including fragrances and cosmetics. They also have a

distinction of being virtually present in every retail space in the Philippines and

have a vast network of stores and outlets that have also expanded worldwide,

reaching as far as the United States, the Middle East and with concentrated efforts in

mainland China.

III. Stakeholders Survey – Market/Industry Trends

Advertising

Bench/ is known for their humongous billboards plastered on all the

major thoroughfares all over the metro and country. It is also their company’s

strategy to bank on these up-and-coming stars from major television stations to

endorse their brand to keep it fresh and current.

The company focuses much of their attention on billboards and on

newsprint, not so much on radio as a medium. They advertise frequently on all

the leading magazine titles that are related to fashion and work with various

advertising agencies to help conceptualize on their next advertising tactic.

Bench’s primary objective is to keep their ads creative and attractive. They keep

tabs on the latest trends and have international ambassadors.

Architecture

Bench/ manages to infuse what’s going on in worldwide retailing

standards because of Mr. Ben Chan and his team who frequently travels abroad.

They constantly seek inspiration by visiting other establishments while having

an in-house architect and designer who works for them in doing the lay-out,

interiors and exteriors of their branches and stores.

The current trend that Bench is leaning towards is on the vintage,

American vibe. They are geared more on the classic appeal of wood, complete

with wooden floorings and vintage wallpapers for decorations on the walls.

Fashion Design

Aside from having a team of in-house fashion and graphic designer as well

as their constant collaboration with the biggest names in fashion design in the

Philippines, Bench/ prides itself with simple yet fashionable items. Everything

must go through Mr. Ben Chan before it is released in the market.

IV. Market/Organization/Industry Problems

Labor

Labor will continue to be a major challenge for Bench/, as historically low

unemployment and competition from a more flexible gig economy makes it

difficult to staff both brick-and-mortar locations and fulfillment centers. Bench/

continues to experiment with technologies to streamline processes and augment

the labor pool. In addition to that bench will also experiment with facial

recognition and other advanced technologies to streamline the purchasing

process. In all cases, Bench/ will need to find the appropriate balance of


technology and human interaction to connect with their customers and build

brand loyalty.

Real Estate

Bench/ choose to develop more creative models that shrink retail selling

space, reduce in-store inventory levels and use local fulfillment centers to get

products to customers quickly and better manage the last mile. Prime retail real

estate will continue to command high rates because there will be less of it, as

areas once perceived as prime retail selling space are redefined by the

consumer.

Regulatory environment

The regulatory environment will continue to challenge Bench/ in 2019

and beyond. As online sales growth continues to outpace on-premise sales,

Tariffs and trade wars will drive up the landed cost of many products creating

hyper-price-sensitive consumer markets for those products. Bench/ continously

manages their supply chain and operations to minimize the impact of the tariffs

on their customers will be most successful. New and creative sourcing strategies

will emerge and resilience will ultimately prevail over time. Meanwhile,

increased cost will significantly affect unit sales of affected products and will also

have an indirect impact on other products as consumers are forced to make

decisions about how to spend their limited funds.

Buying behaviors and brand

Buying behaviors will continue to evolve as Generation Z (Gen Z) becomes

a larger part of the consumer base. As the first truly digital generation, Gen Z will

push bench to new digital platforms to connect with them. YouTube, Instagram


and Snapchat accessed by mobile are platforms of choice for Gen Z and they are

the most likely group of consumers to purchase on social media, making these

platforms very important and introducing a new dimension of omnichannel for

many retailers. That said, brick-and-mortar locations will continue to be an

important channel for retail. Despite the growth in online purchasing, recent

studies suggest that millennials and Gen Z consumers also enjoy the physical

shopping experience. Enhancing that physical shopping experience will be

critically important. Creative and interactive technologies will continue to play

an important role in developing unique in-store experiences and knowledgeable

staff who embrace and promote the brand will help build connectivity and

promote brand loyalty.

Access to capital

2019 is likely to be a year of very selective capital investment by retailers.

Margin pressures brought by trade wars, rising interest rates and the apparent

disinterest of the private equity community will limit access to capital for

investment. That said, retailers / bench will need to continue to invest in

technologies that allow them to connect with customers and streamline their

operations. Physical store locations will need to be right-sized to fit the new

retail model, which in many cases will result in fewer and smaller store locations,

reducing occupancy costs and providing cash to fund capital projects.

V. Environmental Scanning – Internal (SWOT and Porter’s Model)

A. SWOT

STRENGTH WEAKNESSES

• Strong brand image • Low brand recognition with

• Diversified company high class citizens
• Well positioned stores • Their products don’t appeal to
• Good promotional strategy Class A citizens
• Goal oriented company
• Captured a great amount of
local market share
OPPORTUNITIES THREATS

• Capture more market share • New clothing line of other

annually competitors
• Open up new branches in • New competitors both local
other countries and foreign
• Have a better brand • Economic threat in the
recognition with higher class Philippines
citizens • Rapid change in fashion
• Create new services
• New clothing line

Product

Bench/ offers a wide variety of products, from clothing pieces, cosmetics,

lingerie, accessories and even snacks. Through the company caters to both class

B and class C, they have a quite strict quality control. They make sure to provide

the mass high/good quality pieces for affordable price range. Even to their sub-

contactor’s factory, they station quality control personnel to make sure the

production is well-guided.

When it comes to the design of their products, Bench invests on their

creative team by sending them different International fashion weeks to gather up



from the latest trends and try to produce as much designs as they can, while Ben

Chan himself makes the final say if it’s a go or not.

Since Bench opened their doors to the international market, they also

provided few adjustments to the size charts. Which the original size chart is

specifically made for their Filipino consumers. When it comes to their packaging,

Bench is starting to adapt the “no plastic” rule by only allowing paper bags every

Wednesday. The company support eco-friendly campaigns and trying their best

to influence the Filipino mass on doing the same thing.

Price

Price is what bench standout from their competitors and that’s what

keeps their competitors in bay. Since they cater to class B and class C, their prices

don’t go overboard; Bench maintains the affordable price range for the mass.

Though they won’t spill how they arrive to the price mark-ups, they make sure

that it’s still light on the pocket.

For the quality Bench provides us and the affordable prices, that makes

Bench’s merchandise worth every penny and this is one possible reason why

they are still leading the local market.

Place

As of now, Bench has opened over 300 branches worldwide and had their

brand in almost every mall here in the Philippines. Regarding with where they

manufacture their products, they have several factories (sub-contract) in India,

China, and here in the Philippines. All distribution points are centralized, they try

to rotate and replenish their stocks as much as they can. As of attracting more

customers, Bench’s creative team tries to keep up with what’s new and develop

more innovative ideas on new interiors to their stores. They update and

refurnish from time to time to catch people’s attention.



Promotion

Promotion is considered as of the most branch of the 4P’s. Bench invests

more on what they think is the most effective advertising medium, which is

putting up billboards around the city. The company chooses wholesome

personalities to promote their line. To be exact, they choose the up and coming

“It girls and boys” in the industry. They trend to steer away from personalities

with bad reputation and issues. In short, they plan on the safer side of the boat

because they want to keep their brand’s “wholesome” image.

Bench also started to utilize their promotions using the internet. Like

other brands, Bench also provided their customers with online shopping to their

website, so people can easily access their products and latest events. When it

comes to the percentage of their income spend on advertising, they are willing to

spend 3%. Investing too much on promotion can be risky but then then at the

end of the day, it is worth every penny spent.

B. Porter’s Five Forces Model

Porter’s Five Forces Model

- Requires high cost of

capital
- Restrictive
government policies
- Accessible
distribution channels

Threat of New
Entrants
•  High Cost of Capital
•  DTI business registration
•  Accessible distribution
channels

- Does not offer

undifferentiated Bargaining Power of
Rivalry Among Buyers
products Bargaining Power of Existing Competitors - Price sensitive
•  Millennials (23-38 years
Suppliers - Penshoppe - Low switching cost
- A lot of alternatives old)
•  Masses
- Industry
•  Manufacturers
•  Direct suppliers
- Folded&Hung •  Moms - High number of
participants do not - UniQlo/Cotton On •  Dads
•  Others
substitute products
face switching cost
- Industry growth
is high
- Rivals are
several

Threat of Substitute
Product/Service
•  Fast-food chains
•  Non-hybrid cafes
•  Non-hybrid bars
•  Other restaurants

- Buyers have low

switching cost
- High number of
substitute products

Porter’s Five Forces Model Analysis

Bargaining Power of Suppliers

The bargaining power of suppliers is moderately low because they don’t really have the

ability to integrate forward and threaten the industry, as they are not really able to increase

their prices because of the presence of several suppliers for the business. Making the

suppliers to become competitive and make their products cheaper. Also, it is easy for the

business to switch from one supplier to another as it has little or no switching cost at all. On

the other hand, suppliers for raw materials such as cotton or leather suppliers have the

ability to integrate forward because even if they are high in numbers, the presence of

different buyers of the supplies is there. Considering these factors, the suppliers’ bargaining

power is moderately low.

• Cotton suppliers (existing manufacturers, and direct suppliers/subcontractors)

• Other materials (suppliers are numerous for such special kinds of sewing materials)

Bargaining Power of Buyers

Buyers are no doubt high in numbers, target market of such industry are millennials and

masses which are all highly existent in our country, specifically in Makati City. Despite the

large number of buyers, the power of buyers is still considered strong as they can switch

suppliers at a low cost or even no cost at all. Also, buyers are price sensitive, thus a

threatening factor in the business. They have the ability to choose other fashion businesses.

On the other hand, having said that buyers are numerous, it is an indication that different

types of buyers are present thus still favorable for businesses under the industry.

• Students, millennials (23-38 years old), mom, dads, and others: masses.

The Threat of New Entrants

Entering the industry is moderately difficult because of high cost of capital for starting-up the

business, and strict government policies such as business permits, but the access to

distribution channels such as wholesalers, retailers, distributors, and even the internet,

makes it less difficult.

• Department of Trade (DTI) registration

• Business permit

• Presence of distributors of supplies and

• Emergence of mobile marketing.


The Threat of Substitute Products or Services

The threat of substitute products or services is strong because the buyers face low switching

cost, and the presence of alternative businesses that cater the same or almost the same.

Making it easier for them to switch to alternatives.

• Presence of other fashion shops, fragrance brands, and other clothing businesses

that also offer quality products at nearly equal in price.

Rivalry Among Existing Competitors

Rivalry among existing competitors is considered moderately intense due to numerous

numbers of competitors, wherein they are roughly equal in size and power, and rivals are

highly committed to the business and have aspirations for leadership. BUT the number of

fashion businesses that cater different products is not that high in number. Thus, reducing

the intensity.

• Existence of several fashion/clothing businesses catering the same products and

targeting the same consumers (e.g. Penshoppe, Folded&Hung, FrancisM Clothing

Co., UniQlo, and Cotton On).

Conclusion: Therefore, with these, we may conclude that given the bargaining power of

suppliers is moderately low, bargaining power of buyers is strong; threat of new entrants is

moderately difficult, threat of substitute products/services is strong, and rivalry among

existing competitors is moderately intense, despite the intensity, the Bench/ still has the

ability to be profitable relative to its attractiveness to the industry because of its ability to

source its supplies from suppliers at a lower price due to existence of several suppliers for

the business. Also, by applying the so-called generic strategies, such as “differentiation-

focused strategy”, wherein the business will provide products/services that are unique from

its existing rivals and other potential substitutes. By applying these, the intensity in the

Porter’s model can be opposed and will yield to a more desirable result, which is to increase

the possibility that the said business will flourish.



VI. Analysis of Current Situation/Current Outcomes

Relative to the microenvironmental factors that affect BENCH/, the

company has its strengths such as: Strong brand image, Diversified company, Well

positioned stores, Good promotional strategy, Goal oriented company, and a huge

amount of local market share. Considering that BENCH/ is one of the most known

brands here in the Philippines, its strengths and existing opportunities and threats such

as: opportunity to build a new branch, new clothing line, emerging demand and trends

in fashion, and economic threats, are all relevant factors why the company still exists

today. As per the five (5) forces model, the profitability of the compaby is still

considered competitive when compared to its rivals, under the trading and distributor

industry. Considering all the factors mentioned in this section, the company, BENCH/

has a huge opportunity and also a threat in terms of the longevity of the business. A

threat because of the emerging local and foreign companies here in the Philippines that

target the same set of consumers; and considered also a huge opportunity because of

the emergence of new trends, that enables the business to cater new products/services

to its target market. The strengths mentioned help the company to maintain its

competitive advantage, and be able to cope up with quick changes in consumer demand

and economic threats. It is assumed that despite all of the internal factors that may

affect the overall operation of the business, internal factors are of great help in terms of

maintaining competitiveness in the industry. No doubt that BENCH/ managed to

overcome several difficulties, because the organization continues to innovate and

develop their offerings. Through which, longevity of such kind of business is totally

possible when strengths, opportunities, and other positive factors are considered. Next

section will discuss the macroenvironmental factors that affect the company.

Macroenvironmental Forces

I. Environmental Scanning – External

PESTLE Analysis

Political/Legal Economic Socio-cultural

- Employment Laws / - Price Increase - Changing demands

Policies (Inflation) and tastes

- Tax and export - Economic Boom - Preference of eco-

restrictions - Economic Recession friendly products

Technological Environmental

- Improved tools for Manufacturing - Environmental Sustainability Issues

- Technological developments (E- (Reduction of Carbon Foot Print)

commerce; Mobile Marketing; IBP)

II. Analysis of Macroenvironmental Factors

Political/Legal

1. Employment Laws/Policies

" It is an enabling factor as it allows the business to promote welfare

of business employees thus, integrating values that will improve

public image of businesses under the industry. Maintaining the

rights of the employees under that industry allows businesses to

flourish and integrate their public image.

2. Tax and Import Restrictions

" As part of the rules and laws in every country, taxes are imposed to

businesses under trading and manufacturing industries here in the

Philippines. As per 2018, Trading Economics showed that the

Philippines got 12% of Sales Tax Rate. This is both an enabling and

a threat to the company. Enabling because it provides help to the

whole betterment of the Philippine economy, but also a big threat

because instead of using the amount paid in tax for other purposes,

it is given to the Philippine government instead.

Economic

1. Price Increase (Inflation)

" It limits the industry in terms of operating costs, as prices go up.

On the other hand, it allows them to offer their products at a high

price. Such increase in price will affect the price of raw materials,

through which businesses under the industry will be affected due

to fabrics/cloths they will use for making output product. Thus,

adding cost to the business.

2. Economic Boom

" During economic boom periods, people have more disposable

income. Hence, they may buy more clothing, increasing sales for

clothing manufacturers, wholesalers and retailers. Thus, a good

factor for the overall industry.

3. Economic Recession

" Sales for these various clothing entities may be significantly lower.

Consequently, retailers may be stuck with large amounts of



inventory. Also, they may have to sell the clothing at substantially

reduced prices. Clothing manufacturers and retailers may also

need to sell lower-priced clothing brands to compete with more

generic brands. Consumers often shop for cheaper brands when

they have less disposable income. Thus, a threat factor to the

business or the overall industry.

Socio-cultural

1. Changing Demands and tastes

" It is both enabling and limiting to the industry. As consumer

demands and tastes tend to change, businesses under such

industry will be able to come up with innovations in order to keep

up with such change, thus, giving more productivity to the overall

beverage industry. On the other hand, it may also be a threat

because if the changes of demand and taste will be rampant, it will

push the industry to innovate more, and businesses that will be

unable to adapt, would be impacted negatively.

2. Preference of eco-friendly products

" The factor may be enabling, as it will give ideas to the said industry

to become more concerned when it comes to offering their

products in a more environmental friendly way. Relative to the

preference of consumers on eco-friendly products, it will also

attract more audience if applied. On the other hand, this may also

be considered as a threat for adding more cost in some areas of the

business operations, becoming a threat to the industry.



Technological

1. Improved tools for Manufacturing

" It is an enabling factor as it allows businesses to have efficient and

effective operations through new technologies invented. Faster

machineries for manufacturing raw materials such as leather,

cotton, and other types of fabric and other machines that will help

the overall productivity of the industry.

2. Technological developments (E-commerce; Mobile Marketing; IBP)

" It is an enabling factor to the overall beverage industry, as it will

help the owners to market their business online, thus larger

audience for the business. Thus, larger profits, leading to an

increase in productivity of the trading and manufacturing industry.

Environmental

1. Environmental Sustainability Issues (Reduction of Carbon Foot Print)

" This may be considered as a threat because companies under this

industry may be forced for using and applying the idea of using

products that will be friendly to the environment. Thus, adding

more cost in some areas of the business operations, becoming a

threat to the industry.

Environmental Scanning and Opportunity Identification Results

I. Action Planning/Strategic Measures

What Who Where When Why How How Much

Goal #1: Employee HR Department Physical 3rd Week To Show 3 new employees
Training and other HR store of increase them will be trained
activities January work proper every day.
efficiency operation
and to and
have back guidelines
up
employees
in case of
absences.
Goal #2: Promotion of Ad and Promo Team Print and April 21, To Use IBP or 4 IBP tools will be
products Digital Media 2019 increase integrated used monthly
brand brand based on
awareness promotion effectivity.
tools.
Goal #3: Increase sales Sales Team & Ad Main Office May 17, To Market the Increase sales to
and Promo Team 2019 maintain brand and 35% from 30% at
competitiv come up the end of the
eness in with month
the reasonable
industry yet
profitable
prices
Goal #4: Reduce Stock Clerks Stockroom May 17, To reduce Check list Reduce inventory
inventory (Operations Team) and delivery 2019 cost for of by 10% every 2
area things that inventorie weeks.
are not s, reduce
needed the things
that are
not
frequently
bought
Goal #5: Partner with Operations Team Random May 17, For safety Canvassin Canvass 3
subcontractors for 2019 purposes g possible partners
materials quarterly in case
of supplier back
out.

Goal #6: Come up with Manager and HR Office May 24, To Define Brainstorm every
new strategic plan based team 2019 maintain factors day
on company performance competitiv that may
last month eness affect the
current
situation
of the
business
Goal #6: Expansion of Head team Office May 24, To Scanning 2-5 new branches
Branches 2019 maintain possible for the next 2
competitiv malls for years.
eness and new
expand branches.
scope of
consumers


II. Improvement Theory and Implementation Plan

Reference:

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id/129249

Baligod et al., (2012, March). Bench An Overview of their Management and Company.
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https://www.scribd.com/doc/86628412/PROFESFINALPAPERBENCH

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Frue, K. (2018, March 28). PESTLE Analysis Of The Fashion Industry. Retrieved from

https://pestleanalysis.com/pestle-analysis-of-the-fashion-industry/

Philippines Sales Tax Rate - VAT. (n.d.). Retrieved from

https://tradingeconomics.com/philippines/sales-tax-rate

Pratap, A. (2018, October 08). PESTEL/PESTLE Analysis of the Fashion retail

industry. Retrieved from https://notesmatic.com/2017/09/pestelpestle-analysis-
of-the-fashion-retail-industry/

Primer Media Inc. (n.d.). Business Talk with Ben Chan of BENCH/. Retrieved from
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bench/

Primer Media Inc., & Primer Media Inc. (n.d.). Top 10 Proudly Pinoy Apparel.
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pinoy-apparel/

Software, P. A. (n.d.). Palo Alto Software. Retrieved from

https://www.bplans.com/clothing_retail_business_plan/executive_summary_fc.php

Suttle, R. (2016, October 26). The Macroenvironmental Factors Affecting the

Clothing Industry. Retrieved from
https://smallbusiness.chron.com/macroenvironmental-factors-affecting-clothing-
industry-37254.html

Tyler, T. (2016, April 28). 7 Metrics for Measuring Business Success. Retrieved from
https://www.verizonconnect.com/resources/article/how-to-measure-business-
success/