OVERVIEW

Nowadays, there are a variety of foods being discovered and still existing. One of those is
bread. According to Quora (2017), Bread is a staple food prepared from dough of flour and
water, usually by baking. Throughout recorded history it has been a prominent food in large part
of the world and also the most widely consumed. Bread is the oldest man-made food. (Lohman,
2012). In the Philippines, Filipino love carbs and if there's anything they can't live without-apart
from rice of course-its bread. (Manila,Philippines 2018). That is why there is a big demand for
bread. In 2016, Philippine Statistic Authority released that bread, cakes, pastries, pies and similar
perishable bakery products accounted for 6,618 establishment or 26.3% of the total 25,149
number of manufacturing establishment in the formal sector of the economy. In that case the
progress of bakery industry in the Philippines is continuously.
Bueta’s Bakery is one of the bakeries in the Philippines operating in Barangay
Banago,Nagcarlan Laguna. In fact, Bueta’s Bakery is still puff out among other industry. This
business is managed by Mrs. Sevilla Bueta-Cruzin. It composed of 21 employees, 10 are bakers,
9 packers, 1 operating officer and 1 secretary. This offers variety of bread such as Toasted bread,
Ogoy, Apas, Ube bread, Desiccated bread, Pianono, Fita, Hacobina, Paborita, Cookies and has a
barter system to earn in the fastest way. Bueta’s Bakery was established in 1992 and up to the
present, they are still operating. Before the company taste the success, they suffered and
experienced failure that lead to bankruptcy. But Mrs. Bueta-Cruzin make an operational strategy
to minimize the cost to regain what they had lost. With the highly competitive nature, quality and
affordability, this bakery experienced rapid growth to influence customer perception and drive
store choices and loyalty. Bueta retain their name and continue the progress. They expand their
store as well as their market and now, Bueta’s Bakery is a local bakery distributing goods in
nearby provinces and had exported in Qatar.
Bueta’s Bakery was aiming to continue operating not just to earn profit but also to
provide the quality bread that is everyday demand of their customers.

HISTORY
Bueta’s Bakery started its operations in September 26, 1992 at Brgy. Bambang Nagcarlan
Laguna as a partnership of five siblings. Using their skills in baking and having their sister,
Sevilla Bueta-Cruzin who graduated with a business related course they came up with the idea of
setting up a business of home-made breads. It started with a capital of Php 10,000.00 in cash and
Php 50,000.00 worth of second hand equipments like rollers, mixer, and iron. In its start of
operations in year 1992, there were eight (8) bakers and six (6) packers. After being a partnership
for five years, they decided to dissolve the partnership and make their own names in the industry.
Even though the siblings have and managed their own businesses, Bueta’s Bakery continue their
operations in the initiative of Mrs. Cruzin and do their part to meet the demand and satify their
customers. The factory was transferred in Brgy. Banago, Nagcarlan, Laguna. Today, Bueta’s
Bakery has been operating for 27 years. Now they have ten (10) bakers and nine (9) packers
working for alternate shifts every day. They are now producing more than ten (10) varieties of
baked goodies and delivers in Laguna, Batangas, Cavite, Bulacan, Tarlac, Pangasinan and even
in Qatar.

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VISION
A bakery producing good quality breads that is affordable reaching out customers in
Nagcarlan, Laguna and in the Philippines.

MISSION
To serve God, the community and our customers by providing baked goods of superior
quality and to create jobs to help reduced the number of unemployed and to contribute the
betterment of the community.

POLICY/CORE VALUES
Bueta’s Bakery is deeply committed towards these core values:
Integrity. Demonstrate honesty in every transaction and delivery, transact modestly with
suppliers and comply with government policies and requirements.
Community. Supports the community by lifting up jobs for mothers and students,
contribute and donate breads in schools, organizations and in church activities and provide
scholarships to deserving students.
Safety. Make sure that employees enjoy a safe work environment and implements “No
Smoking and No Alcoholic Drinks” policy not just for the well-being of the workers but also of
the customers.
Teamwork. Creates a positive working environment and promotes physical and spiritual
empowerment to workers to be productive and successful.

GOALS

 Increase Sales
 Increase in Net Profit
 Produce baked goods with superior quality
 Maintaining affordability of products
 Capture bigger market share
 Reduce unemployment

OBJECTIVES

 To increase sales for at least 20% per year

 To increase net profit by 20% per year
 Set quality standards to products for uniformity and monitoring if these were properly
followed.
 Make adjustments in the production to maintain the margin of sales to total cost of
production and to cause no effect on the prices of the products.
 To penetrate market all over the country by making good quality products and through
some other marketing efforts.

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  To give job to mothers, undergraduates, graduates and those who have knowledge related
to the nature of the business

STRATEGIES

Management

 As a small enterprise the owner is also the manager of her own business to monitor every
production.
 Determining employees’ capability to place them in their right position, and their salary
depends on it.
 Providing policies and giving a punishment to those employee who disobey it to ensure
that each of them perform their duties accordingly.
 Conducting a seminar meeting every Sunday to all the employees to discuss issues
regarding in their operation and duties to identify what actions they should be taken.

Product

 Offering an affordable price to the public market.

 Marketing their products through social media and distributing it into different places to
increase their sales.
 The number of breads they produced depends on the season to avoid some losses, peak
seasons are during the months of February to May and October.
 Offering other products aside from breads like candies as a substitute.
 Reprocessing some bread that did not meet its right form and texture and converting it
into crumbs that are used to make other bread.
 In case of inflation, they produced more bread through adjusting its sizes to meet their
target sales.

Customers

 Giving discounts to the retailers and wholesalers, guaranteed discount for cash purchases
and discounts for bulk orders.

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TOP MANAGEMENT

Sevilla Bueta Cruzin, Proprietor and General Manager, Bueta’s

Bakery, 55 years old. Graduated BS in Commerce Major in Accounting
at Laguna College. Serving for 27 years in the company. She is in
charge of all the business' operations, including generating revenue and
controlling costs. She handles all decision making processes, consulting
with legal and accounting matters. She hires and directs employees. She
has the final say in running the business for she's also the owner of it.

Russel Arjay Bueta Cruzin, Operating Officer/Officer-in-Charge, 29

years old, 9 years in service. Graduated BS Nursing and had work
experienced in a business company. He oversees the day-to-day
operational functions of a business. He typically reports directly to the
general manager and is considered to be the right hand of GM. He is
currently working on handling business' internal affairs.

Jonalynne Torres Cruzin, Business Secretary, 30 years old, serves for

8 years. She is a BS in Food Technology graduate from University of
the Philippines-Los Baños. She is responsible for administrative and
clerical duties like paper works and payroll. She assists with daily tasks,
maintains records and files reports. Had a work experience of being an
English as a Second Language (ESL) Teacher at Acadsoc English Tutor
Club.

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EXTERNAL ENVIRONMENT: Opportunities and Threats (SWOT)

A. Natural Physical Environment: Sustainability Issues

One of the major risk factors that Bueta's bakery faces is high inflation rate. All bakeries
are dependent to the ingredients such as flour and sugar. During the month of December, cost of
commodities is expected to be high due of high demand of consumers including sugar. Such
factor can result to high cost of their raw materials. Bueta's bakery needs to have continuous
strategic plans to counter this kind of factor and ensure that their business make profits.

Another physical environment factor that can affect Bueta's bakery is the unexpected
natural calamity. Since they offer delivery to retail stores, it may result to delay of deliveries and
production. The organization should have strategic plan to resolve this kind of events. For
example, they can use generator to prevent the interruption of the production.

1. Societal Environment (PESTLE)

Political
Political Factors plays a significant role in determining the factors that has impact the
Bueta’s Bakery in the long term profitability in a certain country or market. Bueta’s bakery is
exporting bread in other country and exposes itself to different types of political environment and
political system risk. Bueta’s bakery closely analyzes the following factors before entering the
business and distributing their product in a certain market.

 Taxation
Taxation has both unfavorable and favorable effect in Bueta’s Bakery.
Unfavorable in terms of its effect in the production and growth of the bakery, instead of
saving, investing and adding the money that they earn it was given to BIR for regular
taxes. Favorable on the other hand because they abide the rules and regulations that the
government given they have no worries to operate their business
 Wage legislation
According to the owner they pay their workers beyond the minimum wage. A
modest increase in wage would improve worker productivity and reduce employee
turnover and absenteeism.
 Mandatory Employee Benefits
A firm should always provide what is best for their employees. Bueta’s Bakery
required itself to assure the workers compensation also insurance. This lead to positive
impact with the employees’ performance.

 Work Week Regulation

Giving day off in your employees will bring them sincere in their work. Besides
they will feel that they are important, in return they also give importance to your
business.

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Economic
The economic factors that Bueta’s Bakery facing off are the price level and inflation, tax
structure and sentiments.

 Price Level and Inflation

Affects the business in the way that instead that they will buy more materials for
the production it will be lessen because of the inflation. The production will lead to fewer
products produced.
 Tax Structure
Changing the required taxes will affect the business, the reserve money for
investing will be use to pay taxes, of course the taxes are always rising, once in a blue
moon it would decrease.
 Sentiments
The more the consumer of the firms product the more they earn, the more they
will help the economy.

Social
Society's culture and way of doing things impact the culture of an organization in an
environment. Sharer beliefs and attitude of the population play a great role in how marketers at
Bueta’s Bakery will understand the customers of a given market. Social Factors that Bueta’s
Bakery are as follows:

 Demographic factors of population

The consumption of bread will never be based on age, gender and status in life.
This factor affects the business in terms of this provide more demand for customers in
third class that will boost the overall economy.
 Culture (gender roles)
In Bueta’s bakery there is no gender discrimination, if you want to earn then
work. This affects the production of bakery because there are lots of worker working for
them.
 Attitudes (Health, environmental consciousness)
The company cares for its environment and jurisdiction. They used the expired
portion of their product to feed the animals.
Technolocial

 Buetas bakery uses social media to promote and advertise their product nationwide.
 When it comes to recent trends in equipments used in producing baked goods, Bueta’s
bakery is using new equipments that make the production easier. However, as compared
to other leading bakery in the country their automated production is far way better than
Bueta’s have.

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Legal
Having a passion for baking or having a bakery doesn't merely mean that an owner must
only pay attention to which recipes are to be used or what name is to be hanged to their doors. It
broadly includes the legal restrictions and laws that the owner must abide because they are
making and selling food to the general public. They must conscientiously obey food safety laws
and set up their business in line with the said laws specific to their state. It includes having
special permits and licenses before the start and run of a bakery. Namely:

 Business name registration in the Department of Trade and Industry (DTI) for sole
proprietorship or in the Securities and Exchange Commission (SEC) for bakeries owned
by a partnership or a corporation.
 Mayor's permit or Residence Certificate and Sanitary Permit from the local municipality
where the bakery business is located.
 License to operate (LTO) as a food manufacturer or Bureau of Food and Drugs
(BFAD) certificate from the BFAD
 Having a TIN (Tax Identification Number) from the BIR (Bureau of Internal Revenue)
Environmental
Since Bueta’s Bakery is a manufacturing and also a delivery entity as well, environment
factors affect its manufacturing process could be affected and worse, put into a halt. Same thing
goes for the delivery of finished products to their respective sellers and branches.

2. Task Environment/Industry Analysis (Porter’s Five Forces)

Threats of New Entrants

 Buyer's switching cost is high since there are lot of bakeries where they can buy the same
product at the same price.
 Low entry barriers, however those who opened up the same business as bueta's bakery
close immediately after a short period of time.
 Regularly supplies goods to different stores building good relationships with them.
 Well established expense management
 Increased bargaining power of suppliers
Threats of Substitutes
There are few substitutes but the chance of choosing the substitutes is minimal because
the product produced by Bueta's bakery is at cheaper price.
Bargaining Power of Supplier
Since the Buetas Bakery is dependent to ingredients such as flour and sugar, their
primary suppliers have the power to control the prices in which they are going to sell the said
ingredients to meet their own financial goals. But according to the owner, they haven't
encountered any stoppage of operations due to supplier problems.

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Bargaining Power Of Buyer

 The Business supplies and have reached different market in Batangas, Cavite, Laguna,
Bulacan, Tarlac and Pangasinan which makes them accessible to large number of
customers.
 The products produced by Bueta's Bakery are demanding to customers of all ages and of
any kind.
 Buyers are attracted to product's affordability
 Supplied buyers become loyal as they were given rights/ privileges in discounts and
returns of damaged goods and by delivering goods on time.
Competitive Rivalry
Next to rice, bread is another staple food for Filipino people. Due to its demand, many
entrepreneurs and business minded people, invested in operating a bakery. Thus, increasing the
chance of developing a rivalry to other entities in the same line with them.

Summary of External Factors

External factors currently play a major role in affecting and influencing the Bueta’s
Bakery, and will continue to do in the years to come. The factors affect the bakery directly and
indirectly and present themselves as opportunities and threats. Table 1 illustrates and analyzes
the opportunities and threats that Bueta’s Bakery faces. Each factor is weighted from 1 (most
important) to 0 (not important) and then rated from 5 (outstanding) to 1 (poor) based on the
company’s response to that factor. The weight and rating are multiplied by each other to
generate a weighted score. An average firm in an industry has a total weighted score of 2.89.
The rating is a judgment regarding how well the company is dealing with each specific external
factor, with 1.0 being poor and 5.0 being outstanding. Bueta’s Bakery has a total weighted score
of 2.89 which is the slightly below average for the industry.
Bueta’s Bakery have multiple opportunities including the peak season during the month
February to May, immersion or OJTs, customers’ loyalty, retail stores expand markets, and
consumer will seek physical store. They can take all the opportunities by implementing strategies
for the success of the business and to be known in the whole country.
The biggest threat is the inflation rate. During the month of December cost of
commodities is expected to be high due of high demand of consumers including sugar that can
result of high cost of raw materials. Rivalry is also a major threat due to the sensitivity of price
and services. Other threats are unexpected natural calamity and substitute products.

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 Table 1. IFAS Table
EXTERNAL FACTOR ANALYSIS SUMMARY (IFAS Table)

Weighted
External Factors Weight Rating Score Comments

Opportunities
Peak season 0.15 4 0.60 Can increase number of
customers
Increasing manpower
Accepting immersion or OJTs 0.10 3 0.30
In progress
Customers’ loyalty 0.12 4 0.48
Retail stores expand markets 0.10 4 0.40
Consumer will seek physical
store
0.08 2 0.16

Threats
High Inflation rate Slowly improving
0.15 3 0.45
Unexpected natural calamity
0.05 1 0.05
Intense rivalry with other
bakeries in the area
Questionable
Substitute products 0.10 2 0.20

Rivalry with siblings 0.05 1 0.05

0.10 2 0.20

Total 1.00 2.89

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CURRENT PERFORMANCE
Bueta’s Bakery has been successful for previous years evidenced by their present
condition. They managed to handle the recession and other economic factors that cause the
business to be down and had maintained the increase in sales and earnings. During 2017, the
actual sales are said to be 10 million pesos with 10% net profit.
Although currently they were holding a slightly lower portion in the market share
compared to their competitor, it does not affect their business performance, they will likely
earned much of customers since the business is actually made for public market. During 2018,
the sales increase from 10 million to 12 million pesos, this shows that the business maintains a
good performance. They also ended the year with a net profit of 1.2 million.
While in 2019, the sales is 5.6 million pesos for 6 months which also increases compared
to those of the previous year. The net profit for 6 months is Php 750 000.Their performance from
the past two years shows the business consistency as they maintain a 10% profit base on sales.
Buetas' bakery has several strategies to take in action against recession and other economic
factors and to make it easier for them during those difficult times.

FINANCIAL RATIOS
Gross Profitability Ratio :
2017 - 10%
2018 - 10%
2019 - 13.39% (6months)
As you can see, the gross profitability ratio from 2017 to 2018 is constant. It means that
the marketing effectiveness or manufacturing efficiency performed during 2017 is the same as to
what is performed during 2018. The percentage obtained from 2019 represents the gross
profitability for 6 months (half a year).

Sales per employee :

2017 - Php. 476190
2018 - Php. 571429
2019 - Php. 266667
From here, the sales per employee from 2017 to 2018 shows an increase. A high figure
relative to one's industry average can indicate either good personnel management or good
equipment. It also evidenced a high performance from each individual employee.

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INTERNAL SCANNING

Internal Environment: Strengths and Weaknesses (SWOT)

A. Corporate Structure
Bueta’s bakery specializes in producing and supplying high-quality baked goods in a
cost-efficient manner. The organization is one of the successful bakeries across the area
evidenced by its existence for more than two decades. It has experienced considerable growth
from the public market and actually has reached the global market in terms of exporting its
product. It already reaches the neighbor cities alongside Laguna, Batangas, Cavite, Tarlac,
Pangasinan, and Bulacan. Bueta’s bakery, however, does not make all the items in-house, they
also purchase special kinds of bread from a supplier; this expense typically forms a significant
portion of Bueta's budget but at the same time considered strength for the business. The business
is structured to producing and operating independently with the aim of making only high-quality
products focus on servicing the distinct needs of the customer as well as to help lessen the
unemployed in the community by providing a wide opportunity for everyone.

Figure 1. Organizational Chart of Bueta’s

Bakery

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 Figure 1 shows the organizational chart of Bueta’s Bakery. Mrs. Sevilla Bueta Cruzin
serves as the Proprietor and General Manager. Next is Mr. Russel Arjay Bueta Cruzin who is the
Operating Officer/Officer-in-Charge of the bakery. He oversees the day-to-day operational
functions of a business. The business secretary is Mrs. Jonalynne Torres Cruzin. She is
responsible for administrative and clerical duties like paperwork and payroll. The Master Bakers
are the ones who are responsible in making the formula of the bread made. Bueta’s Bakery has
five master bakers and under him are two bakers, helpers, and packers.

B. Corporate Culture
Bueta’s Bakery believes that focusing on the vision and mission of the business will lead
to success, and to attain this success workplace environment and high-performance culture is
needed. Having self-discipline and obeying the rules and regulations is a must in the workplace.
Bueta’s Bakery maintains a strict policy when it comes to its employees especially when it
comes to smoking and drinking within the premises. Having many absences is not tolerated by
the organization since the production depends on them, that is why teamwork is essential for the
business. Consistency is also observed in the business, they always make sure that everything
that the customers’ needs are well catered for. Also, they are not just for profit but for the
upliftment of the community. They aim to lessen unemployment and to give jobs to motherhoods
and students who need extra income. They also promote spiritual empowerment through Bible
studies attended by the employees.

C. Corporate Resources

1. Marketing
For a long time, Bueta’s Bakery has been following marketing campaigns for their
products. Their strategies are focused on how they will maintain their position in the public
market. They have been targeting the public market for a long time the reason why they are
producing and supplying bread of high quality but at affordable prices. Now that they obtained
their market share in the public market, they are now up in maintaining the position through
different marketing strategies. The most effective strategies they are using are face to face
interaction, offering cash discounts and distributions to retailers. Given that they have no existing
physical store, face to face interaction is an efficient way to promote their products. With this
strategy, they can give their customers some samples of their products for their customers to
know the products they are offering and to test them as well. Bueta's Bakery has also been using
cash discounts as their marketing strategy. In this way, they can obtain loyal and new customers.
Distributing to retail stores is also one of the strategies they are following. Through this, their
products are being known not just in Nagcarlan but also in the provinces they are supplying like
Cavite, Bulacan, Batangas, Tarlac, and Pangasinan. Bueta's Bakery's management also created a
Facebook page where interested customers get to see their products and order them as well. Most

Corporate Strategy Audit|Group 2 Page 12

of the transactions here are done through messenger where the customers can talk directly to the
manager. All of these strategies are an essential part of the business to achieve success.

2. Finance
Bueta’s Bakery's long-term objectives are consistent with the business' mission and
strategy. Their objectives are to increase sales for at least 20% or P 300,000.00 per year and to
increase profit for at least 20% per year.
Buetas' Bakery has been successful for previous years evidenced by their present
condition. They managed to handle the recession and other economic factors that cause the
business to be down and had maintained an increase in sales and earnings.
During 2017, the net profit is estimated to be 1 million with a 10% net profit on sales.
Although currently, they were holding a slightly lower portion in the market share
compared to their competitor, it does not affect their business performance, they will likely earn
much of customers since the business is made for the public market.
During 2018, the estimated net profit increase from 1 million to 1.2 million; this shows
that the business maintains good performance. They also ended the year with a net profit of 10%
of sales.
Bueta's bakery has several strategies to take in action against recession and other
economic factors and to make it easier for them during those difficult times.

Gap Analysis

Current Projected Gap Gap Remedial

Objectives
State State Identification Description Actions
To increase P 5,600,000 P 5,200,000 P 400,000 -Customers are
sales for at (25% higher (20% higher Yes satisfied with
least 20% per than previous than previous (Favorable) the affordable
year sales) sales) and high-quality
products.
-Peak season
from February
to May causes
the number of
customers to
increase.
To increase P750,000 P720,000 P30,000 - Discounts
profit for at (25% higher (20% higher Yes given by the
least 20% per than previous than previous (Favorable) suppliers
year. profit) profit) lessened the
amount of Cost
of Goods Sold
-Operating
expenses have
decreased

Corporate Strategy Audit|Group 2 Page 13

3. Human Resource Management

This includes the policies, rules, and regulations set by the organization to lead the
employees in achieving the vision and mission of the business.
Core Policies that shape HR practices:
1. Wearing proper attire- The employees are required to wear their proper attire inside the
production premises to ensure that the goods produced are clean, safe and of high quality.
2. No Smoking and Drinking Policy- Smoking, and drinking within the premises is strictly
prohibited. The organization has already set the punishments whenever a piece of a
cigarette is found. One cigarette is fined fifty pesos and if no one admits his wrongdoing,
the whole group will be affected.
3. Absences should be avoided- Presence of every employee is integral to the business
production, that’s why daily attendance must be observed. Whenever an employee is
noticed having many absences, he/she will be called for a seminar.

D. Summary of Internal Factors

Bueta’s Bakery’s core competencies are the expertise of the manager, being
technologically advanced, marketing strategy, offering delivery, and mass production. Having a
manager that has expertise in managing a business is one of the greatest strengths of Bueta’s
Bakery. Being a knowledgeable and experienced manager helps the business to be more
competitive and easily solve the problems at hand. Another important factor that Bueta’s Bakery
holds is being technologically advanced. Having technologically advanced equipment helps the
bakers to work effectively and efficiently to increase and fasten the production to meet
customers’ orders. The business also has vast marketing strategies that help the business in
obtaining market share in the public market. They also offer delivery to customers which is an
advantage for them compared to other bakeries who don’t offer this kind of service. And their
last strength is mass production, where they can cater to the increasing demand of customers.

As for the weakness of Bueta’s Bakery, their main weakness is their employees. Lack of
segregation of duties is also their weakness since it makes the managing process to be time-
consuming. And their last weakness is not having a physical store which leads to a lack of
authenticity.

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 INTERNAL FACTOR ANALYSIS SUMMARY (IFAS Table): FEDEX
Weighted
Internal Factors Weight Rating Score Comments

Strengths
Expertise of Manager 0.20 4 0.80 Good, Maintain
Offers Delivery 0.10 3 0.3 Continue offering this service
Marketing Strategy 0.10 3 0.3 Excellent strategies are used
Technologically Advanced 0.20 4 0.80 Good but need innovations
Mass Production 0.10 3 0.30 Continue to meet increasing demand
Weaknesses
Lack of Segregation of duties 0.05 1 0.05 This can be time consuming
Employees 0.20 2 0.40 Improve employee supervision
No Physical store 0.05 1 0.05 Can lead to a lack of authenticity

Total Scores 1.00 3.00

Table 2- IFAS Table

Table 2 illustrates and analyzes the strengths and weaknesses that Bueta’s Bakery faces.
Each factor is weighted from 1 (most important) to 0 (not important) and then rated from 5
(outstanding) to 1 (poor) based on the company’s response to that factor. The weight and rating
are multiplied by each other to generate a weighted score. An average firm in an industry has a
total weighted score of 3.0. The rating is a judgment regarding how well the company is dealing
with each specific internal factor, with 1.0 being poor and 5.0 being outstanding. Bueta’s Bakery
has a total weighted score of 3.00 which is the average for the industry.

STRATEGIC FACTORS ANALYSIS

A. Situational Analysis
Table 3 illustrates the strategic factor analysis summary matrix for Bueta’s Bakery.
Bueta’s Bakerys’ SFAS Matrix total weighted score is 3.6 which is above the average firm. The
average firm in is always a 3.0 (Wheelen and Hunger). The strategic factors identified by the
SFAS Matrix are industry’s imperative factors to consider in strategic planning.
Bueta’s bakery’s employee/manpower (W2) and high inflation rate (T1) poses the
greatest risk for the business. Manpower is necessary for the business production. Lacks of
employees will cause a great failure meeting the demand for production. The risk of rising prices
of raw materials used for the production should be supervised. Most attention of the business
shall be put on how to handle the production during inflation. Without supervision the business
will suffer a huge loss. Rivalry among competitors is also a major risk factor however; their

Corporate Strategy Audit|Group 2 Page 15

competitors face the same risk. Businesses do not have control over these economic factors since
it is an external force, therefore, will leave a vulnerable risk to the industry.

Table 3: SFAS Matrix

STRATEGIC FACTOR ANALYSIS SUMMARY (SFAS)

Weighted
Strategic factors Weight Rating Comments
score

S1 Expertise of manager 0.16 4.05 0.65 Cutting-edged

S4 Technologically Advanced 0.14 4.05 0.57 Increase innovation
W2 Employee 0.15 4.15 0.62 Supervision and training
O1 Peak Season 0.12 4 0.48 Continue to adapt
O3 Accepting immersion/OJT 0.07 3 0.21 recovering
O4 Retail stores expands market 0.08 3 0.24 Continue to expand
T1 High Inflation rate 0.13 4.05 0.53 Maintained strategies
T4 Intense rivalry with other 0.07 2 0.14 Earned the market share
bakeries
T5 Rivalry with siblings 0.08 2 0.16 Differ in strategies

TOTAL SCORES 1.0 3.6

The core competencies of Bueta’s bakery include the expertise of manager (S1) and the
advancement of technology (S4). The expertise of manager in the bread industry contributes to
the success of the business. The manager at the same time, the owner is highly experienced in
running such operations, marketing, delivery, management and financing. Therefore, a strict
supervision is done to ensure the proper production in a cost efficient manner while maintaining
the superior quality of the product. The advancement in technology is also an imperative factor;
it creates a wide opportunity on the industry to grow.

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TOWS ANALYSIS

Strengths Weaknesses

1. Expertise of manager 1. Negligence of employees in production

2. Offers delivery services 2. No existing physical store
3. Marketing Strategy 3. Lack of segregation of duties
4. Technology Advanced
5. Mass production

Opportunities Threats

1. Peak season 1. High Inflation rate

2. Accepting immersion or OJTs 2. Unexpected natural calamity
3. Customers’ loyalty 3. Intense rivalry with other bakeries in the
area
4. Retail stores expand markets
4. Substitute products
5. Consumer will seek physical store
5. Rivalry with siblings

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 Opportunities Threats

1. Continually enhance the system 1. Supply more in wide area and meet
with advancement of technology to the amount product to be produced
increase efficiency during peak (S5-T1)
season (S4-O1)
2. Offering cash discounts as part
Strengths of the marketing strategy to obtain 2. Advanced technology speeds up
loyal customers (S3-O3) production ensures quality take the
competition to a higher platform (S4-
3. Seek more retail stores in various T3)
location to expand market (S5-O4)
3. Use a generator to prevent the
interruption of the production during
unexpected calamity (S4-T2)

1. Train OJTs to assist employees 1. Build a physical store to increase

in production reducing human competence among their rivals in the
errors and more effective working area (W2-T3)
environment (W1-O2)
2. Continuous education of their
manpower especially bakers to
maintain their high quality products
and gain customers’ loyalty (W1-
Weaknesses O3)
3. Establishing a physical store will
promote product branding wherein
direct interaction between
consumer and producer (W2-O5)
4. Hire and train employees that
will supervise the delivery during
peak season (W3-O1)

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 The table shows TOWS analysis where we develop strategies from SWOT analysis for
the Bueta's bakery. Strategies can be crafted from a completed SWOT matrix fall under the four
categories such as Strengths-Opportunities or SO strategies, Strengths-Threats or ST strategies,
Weaknesses-Opportunities or WO strategies, and Weaknesses - Threats or WT strategies.
Under SO strategies, the bakery can continually enhance the system with advancement of
technology to increase efficiency during peak season. Since they already have advanced
technology equipment under their strength. They can also seek more stores to expand market.
Offering cash discounts as part of the marketing strategy to obtain loyal customers is suggested.
The bakery should take the opportunity to reach various locations for their products to be known
in the whole country.
Hence, we formulated strengths-threats strategies wherein the business shall find more
retail store to offer their products and meet the amount of products produce. Since, the inflation
rate are becoming higher they can produce large amount of products to be consumed to assure
meeting the target sales. The use of advance technology, a business' strength to speeds up
production and ensure quality take the competition to a higher platform. When an unexpected
calamity came they can use a generator to prevent the interruption of production to meet the
demand of their customers.
On the other hand, the weaknesses-opportunities strategies that they can implement are to
train the OJT to assist employees in production reducing human errors and more effective
working environment. Continuous education of their manpower especially bakers to maintain
their advantage on their high quality products and gain customers' loyalty. We also recommend
that they can establish a physical store that will promote their product branding wherein direct
interaction between consumer and producer. To resolve the lack of segregation of duties and to
assist the manager during peak season they shall hire and train employees that will supervise the
delivery.
When it comes to WT strategies, we suggest that the organization shall build a physical
store to increase competence among their rivals in the area. Several recommended strategies may
implement to help the business lead to success using their strengths to minimize weaknesses and
threats and maximize their opportunities.

REVIEW OF CURRENT MISSION AND OBJECTIVES

Bueta’s bakery’s mission and objectives focus on producing superior quality of baked
goods creating jobs to help reduce the numbers of unemployed, to increase sales by producing in
a cost effective and efficient manner and to penetrate the market globally. In light of key
strategic factors identified in the strategic factor analysis summary, Bueta’s bakery should
modify their mission statement and objectives by incorporating their commitments to
advancements in technology. As new technology emerged, its reliable effect on the production of
bread has been greatly observed, it adds on maintaining the good quality, safety and helps creates
high volume of production of goods. As the volume increases, the need for more and more
people increases, therefore, it satisfies the aim of creating jobs.

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 One of the major strength of Bueta’s bakery is the expertise of its manager, it should be
maintained. While, the business adapts to the changing season therefore, there is no problem
encountering this factor. There is still a need for expansion of the market in order to orderly
increase the sales. The employee is a key to the business thus, should be strictly supervised since
it will greatly affect the production and sales if the control has been loss. If the employees’
performance declines, the business will undergo poor performance.

RECOMMENDED STRATEGIES

 Continue to expand their business by finding other markets in different places.

 Conduct seminars and training for the unskilled workers.
 Bueta’s should be more active on social media by posting pictures of their latest creation
to convince them to come to their shop and also to advertise the changes in the lineup of
their products.
 As part of Bueta’s marketing strategy they should display breads in front of their shop
loaded up with the most attractive and aesthetically-appealing breads and also display all
bread that is available to their shop to ensure that the customers know exactly what their
getting.

STRATEGY IMPLEMENTATION
The spreading of risks due to increasing number of competitors, inflation rate and other
threats are high. In order to attract more customers by increasing business income, the bakeshop
select individuals with experience in making bread which can provide the organization with
means to improve its current performance and competitive advantage in a competitive market. In
a manufacturing industry such as Bueta's Bakeshop, every employee plays a big role in executing
strategic plans. It is essential for the bakeshop management and strategic planners to continually
provide employees with the evolving strategic plans, policies and procedures so that the
employees can possibly make it happen. The implementation and monitoring of the plans
progress starts at the top of the organization and filters down to every employee.
Implementing strategy is an operational activity which means every employee is
responsible for the success or failure of it. Mrs. Cruzin is expert on how to run the business well,
she is fully committed on her business and aware on what strategy she would come up to counter
a threat. It requires coordination of many individuals, the right segregation of duties and
responsibilities among employees is essential. Control system are set in place, including the
establishment of incentives or benefits for good performance of the employees and penalties for
those rule breakers such as smoking, not using of hairnet, not in proper attire. A good execution
of strategies will lead the business in success and will gain customers loyalty since it is assured
that good quality products are produced in a very affordable price locally.

STRATEGY EVALUATION AND CONTROL

Bueta's Bakeshop is operating for 27 years and it conducted various strategies to elevate
income to be prosperous. Nowadays, business industry is in tough competition, therefore each
must formulate strategies and take an action or even risk to enhanced its performance. There are

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implemented strategies that brought the business in a good profit such as giving discounts to
customers and retailers and having Bueta's bakeshop Facebook page. Giving discounts is
effective to shorten the cycle of receivables to cash that may be used to comply the business
obligations. The page is used to exploit its name and products to those social media users since
using of technologically device is common in this generation but the owner makes sure that they
are having transactions with trusted customers. The owner has the full control for the operation
process of the business, she knows how to handle and execute the plan.
Benchmarking is important for Bueta's Bakeshop to evaluate activities and performance.
It is important for the organization to analyze its performance to rectify existing and potential
threats, modify policies, procedures and create enhancement. Benchmarking is an essential tool
for the Bakeshop to be able to provide good quality products that is suitable to customers’ needs.
The account of Bueta's Bakeshop is justified through its performance and quality of goods.

FINAL RECOMMENDATION
Mrs. Cruzin has a specific intent for the business. She is very familiar and expert in
managing and sustaining her business for many years. Her business profit is continuously
increasing as years passed by even though the competition is high. The aim, vision and mission
of Bueta's Bakeshop to its future are a great priority towards success however there are factors
that must be paid attention by the top management.
In order for the business to be effectively and efficiently operate, we therefore
recommend the following:

 Observe new and effective technological advancements that is cost efficient

 Provide supplemental seminars that are deemed helpful for the business
 Be updated and adaptable in changing demand of consumers
 Be versatile in changes in resource availability and cost
 Factor some of the receivables to generate cash
Bueta's Bakeshop has been gradually expanding to increase its presence and adding to the
good quality products it provides.

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