Kolehiyo NG Lungsod NG Lipa: 2006-2011 2012 2013 2014 2015 Total Record of Damaged Houses

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KOLEHIYO NG LUNGSOD NG LIPA

Marawoy, Lipa City, Batangas 4217

MACRO ENVIRONMENTAL ANALYSIS

1. Socio-Cultural Demographic Forces

1.1 Increase in number of Subdivisions

RELEVANCE: People living in subdivisions want their houses to look elegant through
installation of gates, glass doors, attractive windows and more. And it is an OPPORTUNITY to
Jusam because it will results to increase of number of clients.

1.2 Increase in Number of Typhoon Disasters

Super typhoon Haima causes widespread destruction in Philippines wherein houses are
destroyed as communities take shelter from sustained winds of more than 225km/h.
(http:/pdrrmo.batangas.gov.ph/about-pdrrmo/history-of-typhoons)

RECORD OF DAMAGED HOUSES


2006-2011 2012 2013 2014 2015 TOTAL
Partially Damaged 10,113 28 2,588 28,112 6 40,847
Totally Damaged 15,902 50 6,343 4,406 1 26,702

TYPHOONS THAT HIT THE BATANGAS


2006 2008 2009 2011 2012 2013 2014 2015
Caloy Frank Ondoy Dodong Ofel Maring Glenda Lando
Milenyo Peping Kabayan Yolanda Mario Nona
Reming Santi Pedring Ruby
LPA

RELEVANCE: Every year, almost 20 number of typhoons arrive here in the Philippines that
leaves destructions. Those destructions made by typhoons is an OPPORTUNITY for Jusam
because it will increase the number of people who need to repair their houses like those
gates or glass doors that was broken during the typhoon.

1.3 Increasing number of establishment in Lipa City

RELEVANCE: A lot of establishments are built in Lipa City. As a result, it will increase in
number of their possible clients that will need installation of glasses or aluminum or steel
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

products that they need for their stores that makes it an OPPORTUNITY for Jusam.

1.4 Increasing number of marriage

In 2016, Region IV-A recorded the highest number of registered marriages, which accounted
for 13.0 percent of the total marriages.
(https://psa.gov.ph/content/marriage-philippines-2016)

RELEVANCE: Everyday number of couples decided to marry increases. The increase in


number of marriage will result to increase in number of people who wants to own their
houses wherein they will install gates, doors and windows. It is an OPPORTUNITY for Jusam
in terms of possible clients.

1.5 Traffic

According to MMDA Chief Danilo Lim, the traffic problem has existed for over two decades.
Based on the Land Transportation Office data, there are 9.25 million registered vehicles in
the country. More than a quarter or 2.4 million cars are in Metro Manila alone. The heavy
traffic is not only caused by the lack of roads or congestions of buses and private vehicles but
also over population of residents’ ineffective service of rail transportation and ineffective
traffic control management.

RELEVANCE: Traffic today is still an issue and getting worse. It is a THREAT for Jusam in
terms of delivery. The delivery of product will be delayed due to traffic that may result for
the cancellation of the client and disappointment of the customers. Aside from that, their
sales will decreases.

1.6 Immigration Rate in Lipa City

Lipa City’s population as per the 2010 census was placed at 283,468, second to Batangas
City in the Province of Batangas. Five years later, as per the August 2015 head count, the
figure for Lipa had risen to 332,386, higher than that of Batangas City. In other words, in the
five year period between the two censuses, 48,918 people have been added to the city’s
population or an average of 9,784 (rounded) per year. To be fair, the growth rate in that
period was a merger 0.17%, which is low by any standards. However, the rise in population
was not influenced by birth and date rates alone but also by emigration (people leaving the
city and immigration (people arriving to settle in the city)
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

(http://lifesomundane.net/2016/06/traffic.html)

RELEVANCE: Lipa City is a highly industrialized city where people prefer to have a home.This
cause’s increase in the population of Lipa City that makes it an OPPORTUNITY for Jusam. The
increase in population will increase their possible clients and consumers and as a result, it
will increase their profit.

1.7 Holidays

President Rodrigo Duterte has issued Proclamation 269 declaring the list of regular holidays
and special non-working days of 2018.
(https://www.google.com/amp/s/newindo.inquirer.net/915168/list-2018-regular-special-
non-working-holidays/amp)
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

RELEVANCE: During holidays, most of the businesses take a half-day or closed. It is a THREAT
of Jusam for being closed on holidays since they will not gain profit on those days but they
still have to pay for their employees.

2. Political, Governmental, and Legal Forces

2.1 High crime rate

On crimes against persons, the Region IV-A recorded an average of 6, 394 incidents per year
from 2014 to 2016. On prevalent crimes, physical injuries recorded the highest with 10,045
or 23 percent of the total index crime in 2014 to 2016. On crime against property, there were
7,226 robberies and 12,648 thefts or 28.94 percent of the total index crime, respectively.
(Source: neda.gov.ph)

RELEVANCE: There is high crime rate here in Lipa City, that’s why most of the people are
afraid that some robbers will enter their houses. It’s becomes an OPPORTUNITY for Jusam
because people will be concerned for their safety and protection so that eventually they
want to install gates and iron binds of windows.

3. Technological Forces

3.1 Technology

Technology has important effects on business operations. No matter the size of enterprise,
technology has both tangible and intangible benefits that will help you make money and
produce the results your customers demand.
(https://www.oksbdc.org>why-is-technology-important-in-business)
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

RELEVANCE: Every year there are new technologies or innovated technologies introduced in
public. The Jusam make sure that they will have that. Those equipments make their
production faster and easier which results for more profit that they will gain. It is an
OPPORTUNITY for Jusam because as they maximize their production, they also maximize
their profit.

4. Economic Forces

4.1 Increase in income of consumers

President Rodrigo Duterte’s death squads may have killed democracy in the Philippines but
they haven’t killed the country’s vibrant economy, which is the world’s 10th fastest growing
economy in the world in 2017 that’s according to the World Bank. For 2017, Philippines’
economy is expected to advance between 6.5 to 7.5 percent. GDP Annual Growth Rate
in Philippines averaged 3.68 percent from 1982 until 2017, reaching an all-time high of 12.40
percent in the fourth quarter of 1988 and a record low of -11.10 percent in the first
quarter of 1985, according to Tradingeconomics.com

RELEVANCE: As the income of consumer increases their buying power also increases and
this is an OPPORTUNITY for the business. Consumers with increased buying power may be
possible client to Jusam Deco Steel Casting Design in patronizing their products. It shall
ensure more sales and increased profit.

4.2 Increase in price of raw materials

According to the Philippine Statistics Authority (PSA), the country’s inflation rate rose from
6.4% in August to 6.7% in September 2018. September’s inflation rate is the highest in over 9
years. It was also the 9th consecutive monthly inflation rate increase, which was started in
January 2018. (EXPLAINER: How inflation affects you)

RELEVANCE: Inflation leads to increase in price of oil which result to the increase of price of
raw materials and this is a THREAT for Jusam Deco Steel Casting Design because the
machineries used to produce metals uses oils and when it happens the cost of production
will increase and it may affect the prices of the actual products and services.

4.3 Competitors
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

According to Porters Five Forces, under competitive rivalry, which looks at the number and
strength of the competitors, numbers of rivals, who are they and how does the quality of
product and services compare, markets with a lot of rivals, there is a possibility that the
suppliers and buyers can go elsewhere if they feel that they are not getting a good deal from
you. On the other hand, where competitive rivalry is minimal, and no one else is doing what
you do, then you will likely have tremendous strength and healthy profits.

RELEVANCE: Competition can be intense, especially if several direct competitors are about
the same size and it always been a threat for every business. If there are too many
manufactures of the same product in the same area, the competitions is going to be strong.
Jusam Deco Steel Casting Design has competitors of the same product also operating within
Lipa, City, Batangas. The competition is strong and it is a THREAT for the business because it
will affect the number of their customers and profit.

4.4 Power Interruption

Based on the news report of The Philippine Star, The “red” alert of a major power supply
shortage issued on August 5, 2016 by the National Grid Corporation of the Philippines
(NGCP) should be a cause of worry. This thin power supply situation continued the next day
is a troubling indication to the Duterte administration. The Luzon grid was on yellow alert
last 2 months due to insufficient power supply reportedly due to scheduled and forced
outages of power plants. According to NCGP, the projected available capacity is placed at
9,591 megawatts (MW) while peak demand was expected to reach 9,073 MW. A yellow alert
status means that contingency reserves are below the minimum level set by the regulator
but does not necessarily lead to power outages.

RELEVANCE: According to Pete Ilagan, official spokesman of the DOE, citing the report of the
Philippine Statistics Office estimates of at least P3 billion worth of economic losses for each
hour-long blackout. Based on the estimation, Ilagan calculated P10 billion as a “fair
estimate” of August 5 blackouts involving 14 power plants that were off-line, resulting to a
lost of 3,000-MW from the Luzon grid. This issue is not too far in GMA News report on April
10, 2015, that a line trip is being blamed for a power outage in parts of Batangas province
and said that customers of Batangas Electric Cooperative II and Ibaan Electric were affected.
Citing initial findings, the National Grid Corp. of the Philippines said this was due to the
tripping of the Batangas-Ibaan-Rosario 69-kilovolt transmission line. Electricity is very
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

important for Jusam. Power interruptions affects their production process because all their
machineries uses electricity to function. It is a THREAT to Jusam because they don’t have a
generator that’s why if there is power interruption their work will be pending and they will
not gain profit on that day.

4.5 Availability of Jobs in factory/mall

Most multinational investors in the Philippines pay above minimum wage. More advanced
industries, such as electronics firms, pay entry level and legacy workers considerably more
than minimum wage. The fast growing business process outsourcing industry pays several
times the minimum for new hires but rejects around 90%b of applicants. Demand from new
entrants is often so high that pirating of workers has become an industry issue. For such
industries, market forces set wage rates. But for a large part of the workforce and many
exports firms the minimum wage is a critical business cost.
(www.investphilippines.info/arangkada/climat/business-costs)

RELEVANCE: Most of the people prefer to work for companies with higher salary. Factories
and malls offer different types of jobs. It is a THREAT for Jusam because their workers may
transfer to malls since it is more comfortable to work there because the work in malls are
easier and the work place is air conditioned.

4.6 Unemployment Rate

Unemployment rate was placed at 5.7 percent in April 2017, a decline of 0.4 percentage
point from last year’s 6.1 percent rate. There were 2.443 million unemployed persons for
the period which was 182,000 less than the 2.625 jobless persons in April 2016. The biggest
reduction in number of unemployed persons were from Region VIII (37,000), Region XII
(36,000) and Regions III, V and IX (28,000). There were five regions wherein increments in
number of unemployed persons were observed with Region I registering the highest addition
of 45,000.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

TABLE 2 - Household Population 15 Years Old and Over and Employment Status,
Philippines: 2016 - April 2017
(In Thousands Except Rates)
2016 2017
INDICATOR
Ave Jan Apr Jul Oct Jan Apr
Household Population
15 Years Old and Over 68,311 67,160 68,167 68,443 68,743 69,414 69,605
Labor Force 43,361 42,520 43,289 43,286 43,724 42,109 42,714
Employed 40,998 40,052 40,664 40,954 41,685 39,347 40,271
At Work 40,600 39,789 39,896 40,729 41,352 38,944 39,712
Worked Less Than 40 Hours (Part-
Time) 13,361 12,819 13,350 13,087 13,967 13,441 15,215
Worked 40 Hours and Over (Full-
Time) 27,239 26,970 26,546 27,642 27,386 25,503 24,497
With a Job But Not at Work 398 262 768 225 332 404 559
Underemployed 7,513 7,881 7,431 7,134 3,839 6,398 6,468
Visibly 4,149 4,140 4,288 4,288 4,153 3,839 4,027
Invisibly 3,364 3,740 3,143 3,143 3,357 2,559 2,442
Unemployed 2,363 2,468 2,625 2,625 2,040 2,761 2,443
Labor Force Participation Rate (%) 63.5 63.3 63.5 63.2 63.6 60.7 61.4
Employment Rate (%) 94.6 94.2 93.9 94.6 95.3 93.4 94.3
Underemployment Rate (%) 18.3 19.7 18.3 17.4 18 16.3 16.1
Visible Underemployment Rate (%) 10.1 10.3 10.5 9.7 10 9.8 10
Unemployment Rate (%) 5.4 5.8 6.1 5.4 4.7 6.6 5.7
Employment Generation N/A 757 N/A N/A N/A N/A -393
Employment Growth N/A 2 N/A N/A N/A N/A -1

TABLE 4 - Household Population 15 Years Old and Over and Employment Status,
Philippines: 2016 - April 2017
(In Thousands Except Rates)
2016 2017
INDICATOR
Ave Jan Apr Jul Oct Jan Apr
REGION IV-A CALABARZON
Household Population
15 Years Old and Over 9,539 9,539 8,684 9,537 9,618 9,733 9,721
Labor Force 6,125 6,125 5,651 6,168 6,190 6,150 6,188
Employed 5,687 5,687 5,229 5,703 5,814 5,645 5,747
Underemployed 887 1,066 893 594 902 836 663
Visibly 430 476 437 325 434 N/A N/A
Unemployed 438 422 465 460 375 505 441
Labor Force Participation Rate (%) 64.2 65.1 64.7 62.8 64.4 63.2 63.7
Employment Rate (%) 92.8 92.5 92.5 92.4 93.9 91.8 92
Underemployment Rate (%) 15.6 20.4 15.7 10.8 15.5 14.8 11.5
Unemployment Rate (%) 7.2 7.5 7.5 7.7 6.1 8.3 7.1

RELEVANCE: Most of the consumers’ source of money is their job. The lower number of
people without job is an OPPORTUNITY for Jusam since the consumer will gain buying power
through their salaries and will able to afford the products. As a result, it will increase the
possible profit of the Jusam.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

4.7 Economic Downturn

The Philippine economy slowed down to 6% during the 2 nd quarter of the year, the Philippine
Statistics Authority (PSA) said on Thursday, August 9. The gross domestic product (GDP)
FROM April to June 2018 is lower than the revised 1 st quarter figure of 6.6%. The growth is
also slower than the 6.7% recorded during the same period last year.
(https://www.google.com/amp/s/amp.rappler.com/business/209165-gross-domestic
-product-philippines-q2-2018)

RELEVANCE: The economy has a great impact in every businesses. When the economic
downturn happens, it will be a THREAT for Jusam since it will weakened the demand for
Jusam in terms of production and consumption of their products.

4.8 Availability of DIY Projects

DIY, or Do It Yourself is not new. People have been DIYing since, well since forever, literally.
However, like any other things, the internet and specifically the social aspects of the internet
has accelerated the phenomenon and facilitated endless global possibilities. The DIY world is
exploding, and according to Technavio is ecpected to be worth of 13.9 billion by 2021.
(https://www.inc.com/joel-comm/why-the-huge-do-it-yourself-market-is-just-getting-
started.html)

RELEVANCE: Most of the people knows how to construct or install gates, windows and
doors to their houses that is why most of the time they do it by their selves in order to
minimize their expenses. It is a THREAT for Jusam since it will lessen their possible client and
as a result, it will also decrease their profit.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

EXTERNAL FACTOR EVALUATION (EFE)

Key External Factors Weight Rating Weighted


Score
Opportunities
1. Increasing Number of Subdivisions 0.03 4 0.13
2. Increasing Number of Typhoon Disaster 0.02 4 0.06
3. Technology 0.03 3 0.09
4. Increasing Number of Establishments in Lipa City 0.06 4 0.25
5. Increasing in Number of Marriage 0.05 4 0.19
6. High Crime Rate 0.03 3 0.08
7. Increasing in Income of Consumers 0.08 2 0.16
8. Immigration Rate in Lipa City 0.03 3 0.09
9. Government Contracts 0.03 2 0.06
10. Unemployment Rate 0.06 2 0.12
Threats
1. Traffic 0.05 2 0.09
2. Increase in Price of Raw Materials 0.09 3 0.27
3. Competitors 0.09 3 0.28
4. Power Interruptions 0.07 3 0.22
5. Availability of Jobs in Factory/Malls 0.01 1 0.01
6. Bankruptcy of Suppliers 0.09 2 0.18
7. Number of Online Sellers 0.03 1 0.03
8. Holidays 0.01 1 0.01
9. Economic Downturn 0.09 3 0.28
10. Availability of DIY Projects 0.05 2 0.09
Total 1.00 - 2.71
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

The EFE Table

The External Factor Evaluation (EFE) table shows external opportunities and threats of the
Company. It shows if the firm’s strategies are effectively taking advantage of existing opportunities and
minimizing the potential adverse effects of external threats. The analysis of the table is highlighted as
follows:

 The highest weight of 0.09 are assigned to the increase in price of raw materials, the competitors,
the bankruptcy of suppliers, and the economic downturn.

 The lowest weight of 0.01 is given to the availability of jobs in factories/malls.

 The highest rating of 4 is assigned in the following External Factors, first is the increasing number of
subdivision, the second is the increasing number of establishment in Lipa City next is the increase in
number of typhoon disaster, and last is the increase in number of marriage because these factors
are ones of the best way to gather clients.

 The lowest rating 1 are given to the external factors holidays, number of online-sellers and
availability of jobs in factories/malls.

 The result of the EFE is 2.71. This shows that Jusam is doing well based on the result of external
factor evaluation. The highest among all their opportunities, with the score of 0.08, is the increase in
income of consumers that will give their customer the buying power they need to afford the Jusam’s
product. The highest among the threats of Jusam, with the score of 0.09, is the competitors which
means that the industry they belong is continuously growing and its demand is increasing, which
shows that the company is healthy.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

MICHAEL PORTER’S INDUSTRY ANALYSIS

Competitive Force Threat- 1 2 3 4 5 Opportunity


based -based
1. Threat posed by new entrants
Entry of new firms in the market Easy 1 2 3 4 5 Difficult
Options or choices exist for discouraging new firms Few 1 2 3 4 5 Many
from entering the market
2. Bargaining power of Supplier
Extent of Supplier power Much 1 2 3 4 5 Little
Options exist to lessen supplier power Few 1 2 3 4 5 Many
3. Bargaining Power of Buyer
Extent of Buyers Power Much 1 2 3 4 5 Little
Options exist to lessen buyer power Few 1 2 3 4 5 Many
4. Threat of Substitutes
Alternatives available for buyers to get benefits of Much 1 2 3 4 5 Few
products or service in some other ways
Means of improving value to customers Few 1 2 3 4 5 Many
Options exist for increasing customer loyalty Few 1 2 3 4 5 Many
5. Rivalry
Degree of Rivalry with direct competitors High 1 2 3 4 5 Low
Strength of the direct competitors Weak 1 2 3 4 5 Strong
Options exist for facing competitor’s challenge Few 1 2 3 4 5 Many
Availability of potential market for the product or Few 1 2 3 4 5 Many
service
Source : Wyosocki and wirth (1999); Porter (1980)
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

MICHAEL PORTER'S INDUSRTY ANALYSIS

1. Threat posed by new entrants

The entries of new firms in the market will affect the profitability of Jusam. It will lessen
their profit since the customers will have a lot of choices that is why it can be a threat for Jusam.
On the other hand, it can be an opportunity for Jusam since starting a firm must have a lot of
things required and to be considered such as the capital, labor, experience, and knowledge.

2. Bargaining Power of Supplier

The extent of supplier power is a much threat for Just since the raw materials used ill
come from the suppliers, meaning the suppliers have the control over their production and also
over the price of their product. If there are options that will exist to lessen supplier power it will
be an opportunity for Jusam.

3. Bargaining Power of Buyer

The buying power has a great impact in the profitability of Jusam since it will determine
the capability of consumers to afford the product and service that is why it can be a threat for
Jusam. On the other hand, it can be an opportunity for Jusam since they provide lower price but
guaranteed product and service which the consumers can afford because most of them prefer
lower prices.

4. Threat of Substitutes

The alternatives available for buyers to get benefit of products or service in some other
ways is not much a threat for Jusam since they provide variety of and designs for customer’s
choices. Aside from that, the customers can suggest what design they prefer because it is easy
to collaborate with the Jusam’s employees which also improve the value to customers and
increase their loyalty that makes it more on an opportunity for Jusam.

5. Rivalry

The degree of rivalry of Jusam with their direct competitors is high since their products
provided has no difference with the products provided by their competitors that it makes it a
threat for Jusam. The only things they have for facing the competitor’s challenge is their easier
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

collaboration with the customers and their good reputation. But, even though the competition is
high, there are enough market who demands for their products and services.
COMPETITIVE PROFILE MATRIX

Critical Success Factor Weight Jusam Deco Steel Boks Roll-up A.M Glass and
Casting Design Doors Aluminum Works
Fabricator
Rating Score Rating Score Rating Score
1. Location 0.20 1 0.20 2 0.40 3 0.60
2. Lab Facility 0.04 2 0.09 1 0.04 3 0.13
3. Price of the product 0.11 4 0.44 3 0.33 2 0.22
4. Equipment and 0.11 4 0.44 3 0.33 2 0.22
machineries
5. Number of Workers 0.11 4 0.44 2 0.22 3 0.33
6. Years of Existence 0.02 4 0.09 2 0.04 3 0.07
7. Employees’ Attitude 0.13 4 0.53 3 0.40 2 0.27
8. Safety and Security 0.09 1 0.09 2 0.18 3 0.27
9. Resource Management 0.16 3 0.47 4 0.62 2 0.31
10. Assortment Display 0.02 4 0.09 2 0.04 3 0.07
Total 1.00 2.89 2.62 2.49

The CPM table

The Competitive Profile Matrix (CPM) table shows a firm’s major competitors and its particular strength
and weaknesses in relation to a sample firm’s strategic position. The analysis of the table are highlighted
as follows:

 The highest weight of 0.20 is assigned to the location.


 The lowest weight of 0.02 is assigned to the years of existence and assortment display.
 The highest rating of 4 is assigned in the following competitive profile matrix, equipment and
machineries, number of workers, years of existence, employees' attitude and resource
management because they give attention to all the resources that helps in the production unlike
b and c they only focus on profitability.
 The lowest rating of 1 is assigned in the following competitive profile matrix, location and safety
and security because their location is not that good wherein their store is not noticeable unlike b
and c their location is along the highway and the store is noticeable.
 The result of the CPM is 2.89 means that Jusam is continuously improving their management,
together with the product quality and the market. 
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

The table illustrates the competitiveness profile matrix of the Jusam Deco Steel Casting Design, Boks
Roll-up Doors Fabricator, and A.M. Glass and Aluminum Works. The business is in the same field of
fabrication and is located within Lipa City area. The table includes the ten critical success factors (CFS)
regarding the industry. The presented weighted score of the organization indicates how the business
performed the strategy that is rated based on the critical success factors.

CSF#1: Location

Location can influence a business’s ability to market itself, the competition it faces from
businesses, the total cost of operation, taxes to the business owners has to pay and the regulation they
must follow.it also matters for marketing. It goes beyond the business physical location and placement
of advertisement.

CSF#2: Lab Facility

Facility encompasses all activities related to kkeping a complex operating. Managing the
facilities is the coordination of the physical workplace with the people and work of an organization.

CSF#3: Price of the product

Price is important to marketers because it represent marketer’s assessment of the value


customers see in the product or service and are willing to pay for a product or service. It contributes to
how customers perceive a product or service.

CSF#4: Equipment and machineries

Underestimating the importance of equipment maintenance is taking a toll on your bottom line.
When equipment runs efficiently, project get done on or ahead of schedule, and your bottom line does
well.

CSF#5: Number of Workers

The large number of workers must have been a combined effort by a large number working
together as a team in the production.

CSF#6: Years of existence

Older entrepreneurs can not only full from their larger personal network, but they also have the
advantage of watching other people’s work ethics from afar. They can potentially watch the tendencies
of others over years and then pick the best employees to surround themselves with.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

CSF#7: Employees' Attitude

Employees attitude give your workforce the opportunity to provide confidential feedbacks on
their opinions on your company. It is an important way to measure job satisfaction, employee
motivation, opinions and attitude.

CSF#8: Safety and Security

Workplace safety is very important for each and every employee in the industry because all the
workers desire to work in a safe and protected atmosphere. Security and safety is the key factors for all
the industries in order to promote the wellness of both employees and employers.

CSF#9: Resource Management

Resource management is the efficient and effective deployment of the organization’s resources
when they are needed. It is a key element to activity resource estimating and project human resource
management.

CSF#10: Assortment Display

Determining the customer-driven product assortment, however is not always a simple process.
There are multiple consideration from marketing strategy and consumer target logistic and bottom line
financial goals.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

VALUE CHAIN ANALYSIS

After Sales Service


Jusam Deco Steel Casting Design is supervised by manager/owner

Feedback

Marketing /Sales
 Transportation (free delivery)
 Discounts

They
In choosing uses branded
employees goes equipment (Yamato,
to the personal Makita, selection
recruitment, Bosch, Milwake, Power
and hiring.
Outbound Arc
logistics
315) in its
This is conducted byproduction
the owner.process • Delivery process
• Loading
• Unloading product
• Packing Up

Operation
• disbursements
This involves budgeting, purchases, Producing
• Installing
Technology

Procurement
Firm Infrastructure

Human Resource

• Costing

Inbound logistics

• Raw materials
• Fuel and storing
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

Infrastructure

Manager/Owner

They are the one who are responsible to supervise their employees. They give all
instruction to their employee on how to operate the business and handle the operation of the business.

Human Resource

Hiring and selection of employees

It is core function of human resource management. It is the first step of appointment.


Recruitment refers to the overall process of attracting. Selecting and appointing suitable candidates for
jobs within an organization.

Technology

Branded Equipment

The Jusam are using branded equipment like Bosch, Yamato, Power Arc 315, Makita and
Milwake to ensure that the products are in good quality.

Procurement

Budgeting

It is the process of creating a plan to spend money. This spending plan is called a budget.
Creating this spending plan determines in advance whether there is enough money to do things.

After Sales Service

Feedback

It is an information about reactions of the customers to a product, person’s performance of a


task. It is also used as a basis for improvement.

Marketing Sales

Transportation

Refers to the conveyance or travel from one place to another

Discounts
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

A deduction from the usual cost of something, typically given for prompt or advance payment or
to special category of buyer.

Outbound Logistics

Delivery Process

Transfer of product from seller to buyer.

Loading and unloading products

Is considered to be taking the items to and from the vehicle.

Packing Up

Cleaning all the materials used in installing the products

Operations

Producing

It is a process of making products from components or raw materials

Installing

It is an act of putting something in.

Costing

System of computing cost production of running a business, by allocating expenditure to various


stages of production or different operations of the firm.

Inbound Logistics

Raw Materials

Basic substance in its natural, modified or semi processed state, use as an input to a production
process for subsequent modification or transformation into a finished good.

Fuel

A substance such as oil or gas that is used for delivery vehicles

Storing

To put or keep things for use in the future


KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

INTERNAL FACTOR EVALUATION (IFE)

Key Internal Factors Weight Rating Weighted


Score
STRENGTHS
1. Skilled Workers 0.04 4 0.17
2. Rewards to the Employees 0.02 3 0.05
3. Branded Equipment 0.03 3 0.08
4. Good Reputation 0.06 4 0.25
5. Assortment of Product Display 0.01 3 0.02
6. Clean and Tidy Work Area 0.01 3 0.02
7. Number of Machineries 0.05 3 0.16
8. Good Monitoring Mechanism 0.04 4 0.17
9. Easier Collaboration and Faster Communication 0.04 4 0.17
10. Efficient Use of Input Materials and Expertise in Recycling 0.05 4 0.21
WEAKNESS
1. Promotion 0.07 1 0.07
2. Poor Location 0.09 2 0.18
3. Small Lab Facility 0.06 2 0.12
4. Undifferentiated Products 0.07 2 0.15
5. High Rental Cost 0.07 1 0.07
6 Absenteeism 0.07 2 0.15
7. Failure to Define Vision 0.10 1 0.10
8. No Parking Space 0.01 1 0.01
9. CCTV Cameras 0.02 1 0.02
10. Poor Record Keeping 0.09 1 0.09
Total 1.00 2.23
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

The IFE Table

The Internal Factor Evaluation (IFE) table shows internal strength and weakness of the company.
It shows internal position of the company and their performance. The analysis of the table are
highlighted as follows:

 The highest weight of 0.10 is assigned to the failure to define vision.

 The lowest weight of 0.01 is assigned to the clean and tidy area, assortment of product display, and
no parking space.

 The highest rating of 4 are assigned to the following internal factors skilled workers, good
reputation, good monitoring mechanism, easier collaboration and faster communication, and
efficient use of input materials and expertise in recycling.

 The lowest rating of 3 are assigned to the following internal factors rewards to the employees.
Branded equipment, assortment of product display, clean and tidy area, and number of machineries.

 The result of the IFE is 2.23. This result means that Jusam is continuously improving their key
internal factors. If they focus on the highest weight, failure to define vision, based on the result, it
will leads their company to a better position in the future.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

1. MC Kinsey’s 7S MODEL

7'S Components Weight Rating weighted score


strategy mission
vision
objectives
policies
structure' organizational chart
top management decision making
functional department
formalized procedures
adequate size of organization
systems control mechanism
managed record keeping
technology
written policies
style/culture coordinated employees
top management involvement
communication
skills management skill
employee competencies
commitment
performance evaluation
staff human resource management
training and education
shared values core values
attitudes
  total weighted score 1  
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

VRIO ANALYSIS

RESOURCES Valuable Rare Imitability Organization Implications

(H/L) (Yes/No) (Easy/Difficult) (Yes/No)

PHYSICAL

No competitive
advantage. Most
competitors have the
resource and
Store H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

No competitive
Equipment advantage. Most
(Welding Machine, Grinder, competitors have the
Drill, Speed Cutter, Tig resource and
H N E Y
Machine, Argon Tank, Grinding capability and those
Stone, Bupping Soap and that do not can
Clothe, Glass Cutter) develop it easily. All
can sustain it.

No competitive
advantage. Most
competitors have the
resource and
Technology H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

E Y No competitive
advantage. Most
Raw Material H N competitors have the
resource and
capability and those
that do not can
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

develop it easily. All


can sustain it.

TECHNOLOGICAL

No competitive
advantage. Most
competitors have the
resource and
Application of Technology H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

HUMAN

A source of long term


competitive
advantage. It is worth
Skills, expertise H Y D Y “betting the
organization” with
this resource or
capabilities

No competitive
advantage. Most
competitors have the
resource and
Adaptability of Employment H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

No competitive
advantage. Many
competitors have the
Commitment and Loyalty of resource or capability
H N D Y
Employees but is difficult to
develop. Resource or
capability should be
well taken care of.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

REPUTATION

No competitive
advantage. Many
competitors have the
resource or capability
Brand Ownership H N D Y
but is difficult to
develop. Resource or
capability should be
well taken care of.

No competitive
advantage. Many
competitors have the
Relationship with the resource or capability
H N D Y
Customers but is difficult to
develop. Resource or
capability should be
well taken care of.

No competitive
advantage. Many
competitors have the
resource or capability
Products/Services H N D Y
but is difficult to
develop. Resource or
capability should be
well taken care of.

No competitive
advantage. Most
competitors have the
resource and
With Communities, Authorities H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

E Y Not a source of long


With Suppliers H Y term competitive
advantage.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

Competitors have the


tendency to imitate
the resource or
capability. Strategies
must not be based on
this resource or
capabilities.

No competitive
advantage. Most
competitors have the
resource and
With Employees H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

CAPABILITIES

MANAGEMENT
No competitive
advantage. Most
competitors have the
resource and
Resource Management H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

MARKETING
No competitive
advantage. Many
competitors have the
Responsiveness to Market resource or capability
H N D Y
Trends but is difficult to
develop. Resource or
capability should be
well taken care of.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

Not a source of long


term competitive
advantage.
Competitors have the
tendency to imitate
Promotion of Quality H Y E Y the resource or
capability. Strategies
must not be based on
this resource or
capabilities.

SALES
No competitive
advantage. Most
competitors have the
resource and
Quality of Customer Service H N E Y
capability and those
that do not can
develop it easily. All
can sustain it.

A source of long term


competitive
advantage. It is worth
Effectiveness in Executing H Y D Y “betting the
Sales organization” with
this resource or
capabilities
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

SWOT ANALYSIS

STRENGTH WEAKNESS
1 Skilled Workers 1 Promotion
2 Rewards to the Employees 2 Poor Location
3 Branded Equipment 3 Small Lab Facility
4 Good Reputation 4 Undifferentiated Products
5 Assortment of Product Display 5 High Rental Cost
6 Clean and Tidy Work Area 6 Absenteeism
7 Number of Machineries 7 Failure to Define Vision
8 Good Monitoring Mechanism 8 No Parking Space
9 Easier Collaboration and Faster 9 CCTV Cameras
Communication
10 Efficient Use of Input Materials and 10 Poor Record Keeping
Expertise in Recycling

OPPORTUNITIES THREATS
1 Increasing Number of Subdivisions 1 Traffic
2 Increasing Number of Typhoon Disaster 2 Increase in Price of Raw Materials
3 Technology 3 Competitors
4 Increasing Number of Establishments 4 Power Interruptions
in Lipa City
5 Increasing in Number of Marriage 5 Availability of Jobs in Factory/Malls
6 High Crime Rate 6 Bankruptcy of Suppliers
7 Increasing in Income of Consumers 7 Number of Online Sellers
8 Immigration Rate in Lipa City 8 Holidays
9 Government Contracts 9 Economic Downturn
10 Unemployment Rate 10 Availability of DIY Projects

SWOT MATRIX

SO STRATEGIES ST STRATEGIES
1. Offer new products such as paints, tiles, and 1. Acquire additional service vehicle
color roofs (S1, O1, O4, O10, O5) (S4,T3)
2. Additional stocks of raw materials to support 2. Provide a target-based incentives to motivate
demand ( S3, S7, O1, O3, O4, O5) employees. (S2, T5)
3. Well defined duties and responsibilities of the 3. Installment of generator (S3,S7,T4)
employees. (S1, S9, O1, O4, O5)
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

4. Upgrade the technology use (S3, S7, O3) 4. Look for more supplier (S4, T6)
5. Regular equipment maintenance and organize 5. Store raw materials that can be used for other
product display (S3, S5, S7, O6) purposes (S10, T2)
WO STRATEGIES WT STRATEGIES
1. Branch out to Tambo, Lipa City (W2, W3, W1, 1. Create direct and online (social media)
W8, O6, W5) promotion (W1,T7)
2. Invest in direction signage in Lipa City 2. Hire additional manpower (W6,T5)
(W2,O1,O4,O5)
3. Install CCTV around the business area ( W9,O6) 3. Improve record keeping and prepare monthly
financial statement (W10, W7, T2)
4. Add another product like ( W4, O1, O4) 4. Optimized delivery routes (W2, T1)
5. 5. Invest in land and building (W5, T9)

STRATEGY ANALYSIS AND FOMULATION TOOLS

STRENGTH AND OPPORTUNITIES STRATEGIES

1. Offer new products such as paints, tiles, and color roofs

The Jusam Deco Steel Casting Design will offer new products such as paints, tiles, and color roofs that
will help to increase prospective buyers. (S1, O1, O4, O10, and O5)

2. Additional stocks of raw materials to support demand


KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

Adding stocks of raw material will help a business to make it easier to create a product that customers
want, unexpectedly. (S3, S7, O1, O3, O4, and O5)

3. Well defined duties and responsibilities of the employees.

Well defined duties and responsibilities of the employees so that they will more productive in work
place. (S1, S9, O1, O4, O5)

4. Upgrade the technology use.

Upgrading the technology used will help to speed up the production and the equipment used will not
break down immediately. (S3, S7, O3)

5. Regular equipment maintenance and organize product display

There is always crime everywhere and we do not know when they attacked. It is important for the
owner to check and maintain the equipment regularly and also to organize product display in order for
her to easily identify and check the number of products. (S3, S5, S7, O6)

STRENGTH AND THREATS STRATEGIES

1. Acquire additional service vehicle

Acquiring additional service vehicle will be a good idea to overreach the competitor of the business. Due
to good reputation to the customers, it will gain more customers so that they need additional service
vehicle for delivering and installing products. (S4, T3)

2. Provide a target-based incentives to motivate employees.

Jusam Deco Steel Casting Design is giving care to their employees through giving incentives like bonuses
and gift items quarterly to the family of every workers, with that they can work efficiently and
productively. (S2, T5)

3. Installment of generator

Purchase generator for power outages can happen unexpectedly for a variety of different reasons and
Jusam Deco Steel Casting Design has to take action about this matter to continue the store operation.
Purchasing one is not just an expense but a necessary equipment that should be available during the
operation to avoid inconvenience. (S3, S7, T4)

4. Look for more supplier

Incased of unexpected problem in the supply of the supplier they can have an option. They can maintain
the good reputation from the customers if they have more suppliers. (S4, T6)
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

5. Store raw materials that can be used for other purposes

Storing raw materials that can be used for other purposes helps to reduce the expense of the business.
(S10, T6)

WEAKNESSES AND OPPORTUNITY STRATEGIES

1. Branch out to Tambo Lipa City

Jusam Deco Steel Casting Design will add a new branch to make the store easily accessible and for other
customers to see the store. (W2, W3, W1, W8, O6, and W5)

2. Invest in direction signage in Lipa City

Investing direction signage in Lipa City will help to easily show the direction to where the Jusam Deco
Steel Casting Design is located and at the same will help advertise the products. (W2, O1, O4, and O5)

3. Install CCTV around the business area

A properly installed store video surveillance system and an operator that remain focused all the times is
an important security measure which can protect your employees, customers and assets of the business.
(W9, O6)

TOOLS

Internal-External (IE) Matrix

X
Total IFE Rating 2.22
Strong Average Weak
 
3.0 – 4.0 2.0 -2.99 1.0 - 1.99
High
3.1 - 4.0  

Jusam Deco
Total EFE Medium
Steel Casting
Rating 2.71 2.1 - 2.99
Design
 
Low
1.0 - 1.99      
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

Based on the framework, which came from the result of Internal and External Evaluation of the
Jusam Deco Steel Casting Design, the business had a weighted of 2.22 on IFE and 2.71 on EFE. From the
weighted score of IFE and EFE the business fall in Quadrant V, which is average response for internal and
medium response for external that describes to hold and maintain. Business implications are the
strategies for market penetration and market development.
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

GE Mk Kinsey Matrix

INDUSTRY ATTRACTIVENESS

Product A Product B

Factors Weight Rating Weighted Rating Weighted


score Score

Total score 1 - 3.55 - 3.06

COMPETITIVE STRENGTH
Product A Product B

Factors Weight Rating Weighted Rating Weighted


score Score

Total score 1 - -

AMORTIZE
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

*move the circles in the quadrant representing each product based on the result of its attractiveness
and competitive strength

Grand Strategy MATRIX (GSM)

RAPID MARKET GROWTH


S
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

WEAK COMPETITIVE POSISTION


Quadrant 2 Quadrant 1

TRONG COMPETITIVE
Quadrant 3 Quadrant 4

POSITON
SLOW MARKET GROWTH

Boston Consultancy Group (BCG MATRIX)

1 2
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

*move the circles in the quadrant representing each product

defensive and competitive strategies should be undertaken.

SPACE MATRIX

Internal Analysis:         External Analysis:        


Financial Position (FP)   Stability Position (SP)  

                           
Financial Position (FP) Average Stability Position (SP) Average

Internal Analysis:         External Analysis:        


Competitive Position (CP)   Industry Position (IP)  
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

Competitive Position (CP) Average Industry Position (IP) Average  

                FP                  
  CONSERVATIVE 7 AGGRESSIVE    
                6                  
                5                  
                4                  
                3                  
                2                  
CP               1                 IP
  -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7    
                -1                  
                -2                  
                -3                  
                -4                  
                -5                  
                -6                  
  DEFENSIVE -7 COMPETITIVE    
                SP                  
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

9. Summary of Strategies

SUMMARY OF STRATEGIES

STRATEGIES SWOT BCG SPACE IE GSM GE- Total


MCKINS score
EY
Market Penetration '
Market Development
Product Development
Forward Integration
Backward integration
Horizontal Integration
Related Diversification
Unrelated diversification
Retrenchment
Divestiture
Liquidation
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

10. Quantitative Strategic Planning (QSPM) MATRIX

 STRATEG   1 2 3 4
Y
STRENGTH WEIGH Ratin Weighte Ratin Weighte Ratin Weighte Ratin Weighte
T g d score g d score g d score g d score

 
WEAKNES
S

  1                
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

Ratin  Weighte  Ratin Weighte  Ratin Weighte  Ratin Weighte


OPPORTUNITI Weigh g  d Score g  d Score g  d Score  g  d Score  
ES t

 
THREATS
KOLEHIYO NG LUNGSOD NG LIPA
Marawoy, Lipa City, Batangas 4217

  1  

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