Strategy Evaluation and Selection

This chapter contains the different strategies that are helpful to the
business operation. This will help to identify business problem and
distinguished whether it is gaining or losing. In addition, these help develop
actions on how to cope with these factors that greatly affects the ins and
outs of the business. The matrix that below should decide what the
fluctuations of the business are.

A. Internal Strengths and Weaknesses

This shows the backbone and fragility of Bagtason Loom Weavers
Association, Inc. which quietly affect the business operation.
Strengths
1. Very good quality of products and services offered
2. Competitive prices of the products
3. Established name and goodwill to the members, customers and the
community
4. Good financial performance
5. Enough number of employees or skilled loom weavers

Weaknesses
1. Low volume of production due to technology used by the business
2. Insufficient budget for advertising and promotional activities
3. Accessible but the place is far from urban areas or major customers
4. Most loom weaver are senior citizens and cannot weave if there is a
dead person on that day

The internal factor evaluation matrix (IFE)

 The business Bagtason Loom Weavers Association, Inc. IFE shows that
the factors that will greatly affect the success of the business are the “ Very
good quality of products and services offered “, and “ Established name and
goodwill to the members, customers and the community.” The business
encounters some problems especially in their “Low volume of production due to
technology used by the business, and insufficient budget for advertising and
promotional activities. There should be an increase in the production by adding
more hand looms and loom weavers. At the same time, the association should
intensify the promotion of its products through word of mouth and with the
support of government agencies like Department of Trade and Industry and
Department of Tourism. The overall total weighted score of the business which
is 2.90, scaled from 1 to 4, indicates that the business has the capability to
improve.

Table 6. The Internal Factor Evaluation Matrix

Key Internal Factor Weight Rating Weighted

score
A. Strengths
1. Very good quality of products and .20 4 .80
services offered
2. Competitive prices of the products .10 4 .40
3. Established name and good will to the .15 3 .45
members, customers and the community
4. Good financial performance .10 2 .20
5. Enough number of employees or .15 3 .45
skilled loom weavers
B. Weaknesses
1. Low volume of production due to .10 2 .20
technology used by the business
2. Insufficient budget for advertising and .10 2 .20
promotional activities
3. Accessible but the place is far from .05 2 .10
urban areas or major customers
4. Most loom weaver are senior citizens .05 2 .10
and cannot weave if there is dead on
that day
Total 1.00 2.90
 External Opportunities and Threats
This shows the chances made by customers and pressures experienced
by Bagtason Loom Weavers Association, Inc. from the rivalry of its indirect
competitors, unnecessary events and changes in the government
regulations. These really affect the business in its daily operation.

Opportunities
1. Full support and assistance of the government
2. Increasing demand
3. Positive attitude of the customers toward the product
4. Strong linkages with other government organizations
5. DTI will open a ” Pasalubong” center in Boracay

Threats
1. Weather conditions
2. Other businesses offer the same hand woven products from other
places

The external factor evaluation matrix (EFEM)

The EFE Matrix in exhibit 1 reveals that the most important external
factor that will strongly help for the success of the business is the “Full support
and assistance of the government” as indicated by 0. 80 weighted score.
Finally, EFE reveals that the total weighted score of BLWA, Inc. is 2.70
which are above average; so, the business is doing great in using its
opportunities to prevent threats.

Key External Factor Weight Rating Weighted

 score
A. Opportunities
1. Full support and assistance of .20 4 .80
the government
2. Increasing demand .15 3 .45
3. Positive attitude of the customers .15 2 .30
toward the products
4. Strong linkages with other .15 3 .45
government agencies
5. DTI will open a “Pasalubong” .10 2 .20
center in Boracay
B. Threats
1. Weather conditions .10 2 .20
2. Some business existing that offer .15 2 .30
the same hand woven products
from other places
Total 1.00 2.70
Table 7. The External Factor Evaluation Matrix

Bagtason Loam Weavers Association, Inc., the EFE Matrix, shows the
most important factor for the success of BLWA, Inc. Analysis and interpretation
on the ratings and description assigned with EFE and IFE table is shown
below:
1 = the response is below average 3.25 - 4.00 = Superior
2 = the response is average 2.5 - 3.24 = Above Average
3 = the response is Above Average 1.75 - 2.49 = Average
4 = the response is Superior 1 - 1.74 = Below Average

B. SWOT Matrix

SWOT analysis describes the strengths and weaknesses, opportunities and

threats of the Association (“Bagtason Loom Weavers Association, Inc.”). SWOT
analysis is designed to help existing business improve their way of managing
the business on the right track, to remain their competence, and to go further.

C. SPACE Matrix
 This matrix contains four quadrants which are the aggressive,
conservative, defensive and competitive that determines the most appropriate
strategies the business should consider.
Space Matrix consists of two dimensions which are the internal and
external dimension. Internal dimension is comparing of financial strength (FS)
and Competitive Advantage (CA) while external dimension is compose of
environmental Stability (ES) and Industry Strength.
To develop Space Matrix, we must select variables first to define FS,CA,ES
and IS of the business. The financial Strength and industry strength were
assigned by numerical ranking from +1 as the worst and +6 as the best. The
association’s financial strength has the average of 3 and industry strength has
the average score of 4.3. The environmental strategy and competitive
advantage.
Were assigned by numerical ranking from -1 as the best and -6 as the
worst. The environmental strength of the association has the average score of -
2.5 while the competitor advantage has the average score of -2.5.Plotting the
intersection of the XY print marker the directional sector. It suggests the type
of strategies to pursue the business. The strategic position of the business falls
on aggressive quadrant which states that the financial strength is a dominating
factor in the study.
The directional sector is located at the upper right quadrant of the space
matrix. The business has an excellent position to use internal strength to take
advantage, external opportunities. Overcome internal weaknesses all avoid
external threats. So the association will pursue the strategies that can be
feasible such as market penetration through promotion.

Summary of Strategy Evaluation and Selection

The table shows the different alternative growth strategies that

appeared in the different matrixes coming from the strengths- weaknesses,
opportunities-threats (SWOT), Internal – External evaluation (IE), and the
strategic position and evaluation matrix (SPACE).
Table 6. Alternative Growth strategies

SWOT IE SPACE
Market Penetration   

Product   
Development
Horizontal  
integration
Market 
development
Conglomerate  
Diversification
Horizontal  
diversification

EXECUTIVE SUMMARY

Weaving in Bagtason, Bugasong, Antique dates back as far as pre-Spanish

regime. Women learned to weave for their clothing , blankets, mosquito nets

and others. They learned to weave or "habol" usually "patadyong" basically for

their own comfort and usage. The "patadyong" is a pre-Spanish clothing item or

lose skirt worn by Filipino women particularly in the lowland regions of the

Visayas. The weaver is locally called "manughabol" and passed these skills

from through generation to generations. Weaving is voluntarily for women or

men.

Our Group decided to have a marketing plan about this to promote and

develop loom weaving as a local industry in Bagtason, Bugasong, Antique and

utilize for income generation of the members.

 With the help of Bagtason Loom Weaving Association, a dynamic

organization with empowered and self-reliant members, actively promoting the

use of loom weaving income generation while preserving its unique culture

thereby contributing to a peaceful and progressive community.

The highlight of this plan is to develop the production, marketing and

management capability of the organization towards sustainability and socio-

economic empowerment of the members and to promote patadyong as our

chosen local product.

MARKETING OBJECTIVES
Specific Objectives
The study also aims to:

Promote the utilization of loom weaving as a skill and culture of the

people of Bagtason.

Engage into project that will develop product quality and improve market

access.

Implement development programs for the marginal loom weavers that

will alleviate their poverty and make them engine growth.

Promote unity and cooperation among members through shared values.

 CURRENT MARKETING SITUATION

Products and Services Offered

The Bagtason Loom Weavers Association, Inc. is the only

association that producing hand-woven products in the province of Antique.

Their products are handmade that is why it is rated very good by the

customers and recognized by the government agencies like Department of

Trade and Industry, Antique Development Fund, Department of Science and

Technology and Department of Labor and Employment. They are producing the

products: “Patadyong,” Handkerchief, Bag, Cloth, Shawl, Scarf, Garland, Polo

Barong, Wallet, Lei and Hat. Their best seller products are “Patadyong” which

is the brand name of the Association and it is very common and in demand

among adults because they used it as their dress, then it is also being used as

swing for a baby. Another best seller are Shawl, Scarf, and Cloth which is

commonly used for office uniforms of government employees like politicians

and school teachers. Their products are unique compare to their competitors in

the market not just because they have a group of women in their barangay

which are called “Loom Weavers,” but it has features of embroidered designs

like Sampaguita, “Bahay Kubo,” and Diamond and each design is made

handily. The quality of their products is also very good since it is made of

quality raw materials like thread, metallic thread, ball thread and “abaca fiber.”

The gathering of information or feedback regarding the products and services

is solicited directly from walk-in customers, and offered their new products to
them for identifying their needs and wants. The business has an advantage

over its competitors since they are accepting customize design through pre-

order.

List of Products and Services Offered

A. Products
1. Handkerchiefs
2. Bag
3. Cloth
4. Shawl
5. Scarf
6. Garland
7. Polo Barong
8. Wallet
9. Patadyong
10. Lei
11. Hat
B. Customized Embroidery Services

Prices of the products offered

The business has a competitive price that is why it is rated very well by

the customers. The price depends upon the materials being used and designed.

The price of plain cloth differs from the one with design like the embroidered

Sampaguita, “Bahay Kubo,” and Diamond, their cost is P5 per design. Price

varies with size per meter can cost P200 for plain cloth while P400 if with

design. In addition, process also affects the price of their products because it is

slow and manually operated by the Loom Weaver with a minimum of one day to

finish the product. At the same time, the business also compared the price

among their competitors.

 BAGTASON LOOM WEAVERS ASSOCIATION, INC.
Bagtason, Bugasong, Antique

Prices of the Products and Services Offered

Scarf - Big P100
Scarf - Small 60
Shawl – Plain 300
Shawl – with Design/s 400
Wallet 75
Wire Holder- 150
Bag – Big 350
Bag – Medium 300
Bag – Small 250
Sunvisor 175
Patadyong – Plain 600
Patadyong – With Design/s 1,600
Cloth – Plain 175/m
Cloth- With Metallic 250/m
Cloth – With Design/s 250/m
Lei 50
Polo – With Design/s 850
Polo – Plain 750
Hat – Plain 250
Hat – With Design/s 350
Table 2. List of Products and Prices

Number of customers

The number of customers per day of Bagtason Loom Weavers Association,

Inc. is fluctuating and seasonal. There were days they have customers or

visitors like students coming from University of the Philippines - Miag-o

Campus and Saint Anthony’s College, for their educational tour. Before they

leave, they purchased some of the products especially the handkerchiefs as

"pasalubong". However, their usual average customers are estimated to be 3

persons per week and increasing by 2% in every year.

 4-10% 5-5%
1-30%
3-10%

2-45%

Figure 1. Market Analysis

Legend: 1 University and College Campuses

2 Local Government Units
3 Non-government Organizations
4 Tourists
5 Others

Sales Performance of the business

The sales performance of the Bagtason Loom Weaving Association, Inc. is

good. Because the volume of sales of Bagtason Loom Weavers Association, Inc.

is increasing by 52% yearly and their average monthly sales is estimated by

P16,667 by 2013 and P25,400 by 2014. The gross profit had increased by

37%.
 2013 2014
Sales 200,000 304,800
Less: Cost of Goods Sold 50,000 100,000
Table Gross Profit 150,000 204,800 3. The
Actual Total
Sales of BLWA, Inc. in two consecutive years

300,000

200,000

100,000

2013 2014
Table 4. Comparative Sales

300,000

200,000

100,000

2013 2014

Table 5. Comparative Gross Profit from Sales

Channels of Distribution

The BLWA, Inc. display their finished hand-woven products by Trade

Fair (Municipal, Provincial and National), by distribution centers and

consignment basis. The Department of Trade and Industry and Antique

Development Fund are partners of the Association in the distribution of the

finished products in the province-wide and nationwide. Also, they display their

finished hand-woven products in the booth at different municipalities during

festivals.

Budget used for Advertisements and Promotional activities

Promotion is one of the key in making the people more aware of your

products. The Bagtason Loom Weavers Association, Inc. has insufficient budget

for their promotion. They promote their business through the Fashion Show

during fiesta like Balik Patadyong Night, Lin-ay of Bagtason and Lin-ay of San.

Jose. All of the candidates wore their hand-woven gowns made by BLWA, Inc.

Established goodwill to the customers, members and to the community

The business organization has already established good relationship

from their members, to customers and extended their personal efforts into their

community. Since they sponsor during barangay religious fiesta and donated to

their chapel in their barangay during Sunday Masses. During typhoon Frank,

victims in Brgy. Bagtason, Bugasong both residents and weavers, received

relief goods and P 50,000 from the office of Sen. Loren Legarda through the

effort of BLWA, Inc. President who solicited help from the Antique Development

Fund. The Association also trained the out of school youth and providing

employment and encouraging the younger generation to learn the skills and

continue the trade in loom weaving so that the inherited culture will continue

and prolong for the next generation.

Knowledge of customers’ needs

The members of Bagtason Loom Weaving Association, Inc. can be

sellers also, because they are the one who assist and entertain the customers

when they come for inquiries, in creating different designs and colors, they

assure that it fits to the type of occasion or use of the product. The Loom

Weavers have the knowledge in customers’ needs because all of them are the

users of their own products they made, in creating different designs and

playing colors, they based it on the likeness of the customers. Sometimes they

have their own Looms and make their own hand-woven products and sell it to

customers by themselves or by an Agent.

Product or service image, reputation, and quality

Establishing good image is really important in every aspects of the

business so that the business can retain their customers and can expand their

markets. Building good reputation in your customers can make your business

to be more reliable. The BLWA, Inc. has been established good reputation

because of their very good quality products. Many customers especially the

Professionals had proven and tested the products from BLWA, Inc. that their

products are very good. Many famous personalities from respective government

or public servants and famous Mark Quintela amazed and patronized the

hand-woven products. The SB Members wear "hablon" uniforms as proclaimed

by SB Resolution 43-2004 adopting ordinance mandating the wearing of

"Patadyong" at least once a month. The Association was once visited by famous
personalities like Ms. Earth 2014 candidates and the famous singer Renzo

Vergara.

ACTION PROGRAMS

PERSONS TIME BUDGET