ENVIRONMENTAL ANALYSIS

This section discusses the trend in the industry, consumer analysis, competitor analysis,

market forecast, market position, and marketing strategy of the business plan.

TRENDS IN THE INDUSTRY

In this chapter, the various analyses are presented in order to understand the progress of the

business. These analyses are great guides for the business.

GLOBAL ANALYSIS

Businesses have been scrambling to adjust to unprecedented circumstances for the previous

nine months. While the struggle against the COVID-19 pandemic is far from over, with a

vaccine on the horizon, there is at least a glimmer of optimism that another train will not be

heading our way. The year 2021 will be one of transition. Unless something unexpected

happens, Individuals, enterprises, and unanticipated disasters and society can begin to plan for

their future. Rather than just churning through the present, think about the future. The next

normal will be unlike any other. It is not going to happen.

Plato was correct when he remarked, "Necessity is the mother of invention." Businesses

have seen a significant increase in digitization, which means that everything from customer

service to working to supply-chain reconfiguration leverages technologies like the internet,

computers, cellphones, and machines to better operations. According to a McKinsey report, nine

out of thirteen large countries have experimented with new types of purchasing, including

internet shopping. The move to internet retail, in particular, is genuine, and most of it will stick.
In Australia is also a source of optimism. Household spending powered a faster-than-expected

3.3 percent growth in that country as the virus was mostly contained. In the third quarter of 2020,

GDP increased by 7.9%, and consumer spending increased by 7.9%.  In late September,

consumers in the United States were more hopeful than before, but still cautious, saying that they

planned to spend more money. To buy holiday gifts for a smaller number of people and keep a

close eye on discretionary expenditures in comparison to 81 percent of customers, only around a

third had resumed out-of-home activities. China has 49%, France has 49%, and Mexico has only

18%. New lockdowns, as well as the essential distribution of COVID-19 vaccines, have had and

will continue to have an impact on those figures. The idea is that spending will only return at the

rate at which people regain confidence in their ability to move around again, and these views

vary significantly by country.

PESTEL ANALYSIS
Political Economic Societal Technological Ecological Legal

Forces
Forces Forces Forces Forces Forces

• • • • • Weather •

Should follow the Growth rate Population size Technological • Climate Consumer
food and beverages and growth rate change protection laws
rule • •
• • •
• Interest rate Environmental
Provide healthy Access to new policies Copyright and
Corruption level • food technology patent laws
•
• Inflation rate • • •
Climate change
Tax policies • Safety of the Level of innovation Health and
people • safety laws
• Exchange rate •
• Pressures from •
Government • Technological NGO’s
regulation and Life expectancy awareness Education laws
deregulation Availability of rates •
credit • • •
• • Natural disaster
Level of disposable Internet Employment
Competition income Age distribution infrastructure • laws
regulations
• • • Recycling standards •
•
Propensity of Wealth distribution Communication n
 Import-export people to spend • infrastructure Antitrust laws
regulation/restrictions
• Social classes •
•
Federal government • Life cycle of
Trade control budget deficits technology
Family size and
• • structure

Lobbying activities Gross domestic • Lifestyles

product trend
• • Buying habits
•
Special tariffs •
Unemployment
• trend Ethical concerns

• •

Stock market trends Minorities

•

Price fluctuations
 This table shows the forces that affect the business such as, Political forces, Economic forces,

Sociocultural forces, Technological forces, Ecological forces and Legal forces. The result of

which is used in a SWOT analysis.

The political factors may involve Government stability/instability, should follow food and

beverages rule, Corruption level, Tax policies, Government regulation and deregulation,

Competition regulation, Import-export regulation/restrictions, Trade control, and Lobbying

activities that can bring about benefits and additional revenue to the business both directly and

indirectly. Special tariffs can vary according to the type of goods imported and diplomatic

relations.

Economy forces are affected by the Growth rate, Interest rate, Inflation rate, Exchange rate,

Availability of credit, Level of disposable income, Propensity of people to spend, Federal

government budget deficits, Gross domestic product trend, Unemployment trend, Stock market

trends, and Price fluctuations. Combining these factors can lead to greater and positive impact on

the business.

Societal forces affect the population size and growth because through social media they will

know a new place to visit and hangout with their family and friends. The influence of social

media is also one thing to consider as it will affect your sales. Most people follow what’s on-

trend on social media so it's important to be always updated.

 One of the most crucial things in remaining afloat in a highly competitive market is

technology.

A market that is competitive Not only that, but they can also be used to track and maintain level

of innovation. In restobars every day, several types of technology are employed to make

processes more efficient. This will include technological change, access to new technology, level

of innovation, technological awareness, internet infrastructure, communication on infrastructure,

and life cycle of technology that can benefit the business, as well as payment systems, sales tax,

and processing coupon codes, scanning item barcodes, and updating store inventory after each

purchase at the point of sale in clothing and accessories stores. Connecting, communicating, and

handling customer service inquiries will benefit the customer.

Weather, climate, environmental policies, climate change, pressures from NGOs, natural

disasters, and recycling standards are all examples of economic elements that might have an

impact on a company's strategy. Because canvassing is one of the most important resources,

these environmental factors may cause delays in the arrival of products, as well as in the

processing of business orders in our online store. On the other hand, favorable weather or climate

will benefit company because we will be able to complete our transactions more quickly.

Certain laws and regulations that may affect a company's operations are referred to as legal

considerations. This also includes pending and existing legislation that has the potential to affect

the industry in areas such as competitiveness, employment, safety, and health. For example, if

the government enacts regulations governing the transportation of accessories throughout the

country, firms like ours who rely on accessories in their operations will undoubtedly be impacted

and will need to take urgent and alternative measures. Legal considerations can influence
 SWOT ANALYSIS

whether or whether a product (such as pharmaceuticals or sharp objects) is commercially viable,

as well as the procedures by which a corporation supplies its inventory or engages in client

interaction.

Strengths Weaknesses Opportunities Threats

 Establishment  No Capital  Brand design can  Small

Brand  Higher Price lead to customer business

 Products  No reputation growth  Changing

Packaging  High  Learn more about consumer

 Good Competition beer and food preferences

Environment competitors  Increased

 Maintain quality of competitors

products but expand

collection

 Press media/press

coverage of

company

The business has different strengths and weaknesses, opportunities, and threats. The

business's strength is that the established brand is very nice that the product and packaging are all

worth it. Furthermore, the business has its own good environment. The business will maximize
its strength to secure ascendancy against its opposition. In addition, to deal with the business

weaknesses the holders consult entrepreneurs’ holders consult experienced entrepreneurs to

guide and correct them in handling the business. There are also opportunities the business has in

the local market such as the Brand redesign can lead to consumer growth, and Learn more

about beer and food competitors. Maintain quality of products but expand collection, one of the

business opportunities that has arisen as a result of the increased use of social media is that

clients may check out and purchase products online without having to visit the store. Finally,

there are numerous challenges to the business that may be addressed promptly and decisively,

one of which is the introduction of numerous competitors that may alter the customer's taste and

preferences. These issues can be addressed by providing high-quality, yet affordable, items that

are certain to meet the needs of clients’ preferences.

CONSUMER ANALYSIS

Age Range

15%
34%

23%

27%

18-23 24-30 31-40 41-50

 Segmentation Matrix

Potential Substitute Power of Power of Capability Priority of

New Products the Buyer the supplier of the the

Segments Size Growth Entrants Business Segments

Segment 1

18-23 9,817 9% Weak Weak Strong Strong Low No. 3

Segment 2

24-30 7,847 7% Strong Weak Strong Strong High No. 1

Segment 3

31-40 5,612 4% Strong Weak Strong Strong High No. 2

Segment 4

41-50 4,296 2% Strong Weak Strong Strong Low No. 4

 The table above shows the market segmentation evaluation of this business. This discusses

the segments, size and growth; its strength of potential new entrants, substitute products. , power

of the buyer, power of the supplier, ad capability of the business; and priority of the segments.

The 1st segment comprises the age of 18-23 years old a total of 9,817 people which also has

9% growth. Its potential new entrants is weak because most of them cannot afford it. It has also a

strong buying because power which also result in strong supplying power and is provided to the

best of the company's capacity. . This segment is also the 3rd priority of the business.

The 2nd segment comprises the age of 24-30 years a total of 7,847 people which also has

7% growth. . Its potential new entrants are strong since most of them can easily be enraptured by

the substitute products. It has also a strong buying power which also results in strong supplying

power and is catered with the utmost capability of the business. This segment is also the 1 st

priority of the business.

The 3rd segment comprises with the age of 31-40 year at the total of 5,612 people which

also has 4% growth. Its potential new entrants are strong because the majority of them can easily

be enraptured by the substitute products. It has a strong buying power which results in strong

supplying power and is catered to the best of the company’s ability. This segment is also the 2 nd

priority of the business.

The 4th segment comprises with the age of 41-50 years at a total of 4,296 people which also

has 2% percent growth. Its potential new entrants are strong because the majority of them can

easily be enraptured by the substitute products. It has a moderate buying power which results in

strong supplying power and is catered to the best of the capability of a business. This segment

is also the 4th priority of the business.

 Competitor Analysis

T.I.P. Restobar

Effects of threats of the Business

Three Competing Barrier to the Effects of the

Forces forces barrier to the

forces (High, High Moderate Low

Medium, Low)

Bargaining

powers of
High capital High ✓
buyers
requirement

Bargaini8ng Small number of

powers of suppliers
High ✓
suppliers relative to

buyers

Rivalry among There is a large

existing firms number of

✓
Low
competing firms
 The table shows the barriers to the competing forces on the business T.I.P. Restobar. The

barrier has a high effect on the bargaining power of buyers that needs a high capital for the .

Market Forecast

Figure 1 Supply and Demand 1st Quarter of 2022

The market forecast is based on the assumption of the trends revolving the
Market Position
Market Strategy