PESTEL ANALYSIS

Political  Government stability

 Bureaucracy
 Changes on Tax policies like for rates and incentives
 Competition regulation that would affect all of the businesses
within the area
 Consumer protection and e-commerce policies
 Trade control
 Government involvement in trade unions and agreements

Economic  Growth rates of the population of the target market

 Inflation rates
 Interest rates for borrowings
 Exchange rates
 Unemployment trends
 Labor costs
 Stage of business cycle
 Credit availability
 Trade flows and patterns
 Monetary policies
 Price fluctuations on products
 Weather
 Climate change
 Level of consumers’ disposable income
 Low priced raw materials (nuts) from competitor countries
 Limited supply of raw materials in the Philippines

Social  Unpredictable consumer preferences

 Competitors within Pampanga and other regions in the country
 Wide range of delicacies offered in the market
 Branding, Packaging and Promotional strategies
 New trends, fashion and tastes that can create different types of
consumers
 Influences of family, friends, colleagues, neighbors and the media
 Health and Lifestyle
 Average disposable income level
 Social classes
 Family size and structure
 Attitudes toward saving and investing
 Attitudes toward green or ecological products
 Population growth rate
 Age distribution and life expectancy rates
 Attitudes toward imported products and services
 Attitudes toward customer service and product quality

Technological  Packaging, food labeling, and production

 Marketing thru the use of social media
  Consumer Awareness of the product thru internet
 New and advanced processing technologies
 Enabling researchers to make new discoveries that are changing our
understanding of nutrition.
 Expansion of distribution thru Online Shopping
 Payment Automation
 Technology Transfer
 Energy and Power Saving Equipments
 Computer calculation speed/power
Environmental  Resourceful, optimize the use of our scarce resources
 Mindful of the 3R’s: Reuse, Reduce, and Recycle.
 Offers nutritious produce for the health conscious consumers
 Global warming/climate change
 Higher emphasis on business sustainability
 More complex standards on business waste disposal
 Environmental rules and regulations

Legal  Introduction of stricter customs and trade regulations.

 Licensing regulations related to the industry.
 Compliance with legal requirements to do business.
 Food Safety Regulations (FDA approved)
 Taxation Policies

SWOT ANALYSIS

Strengths Weaknesses
 Resourceful, optimize the use of
scarce resources
 Mindful of the 3R’s: Reuse, Reduce,
and Recycle.
 Offers nutritious produce for the
health conscious consumers
 Food Safety Regulations (FDA
Internal

approved)
 Opportunities
 Higher emphasis on business
sustainability
 More complex standards on business
waste disposal
 Environmental rules and regulations
 Licensing regulations related to the
industry.
 Compliance with legal requirements
to do business.
 Growth rates of the population of
the target market
 Interest rates for borrowings
 Exchange rates
 Unemployment trends
 Labor costs
 Stage of business cycle
 Credit availability
 Trade flows and patterns
 Monetary policies
 Price fluctuations on products (if
your product is a substitute for those
other brands were prices increased)
 Weather
 Level of consumers’ disposable
income
 Branding, Packaging and Promotional
strategies
 Influences of family, friends,
colleagues, neighbors and the media
 Health and Lifestyle
 Average disposable income level
 Family size and structure
 Attitudes toward green or ecological
products
 Population growth rate
 Age distribution and life expectancy
rates
 Attitudes toward customer service
and product quality
 Packaging, food labeling, and
production
 Marketing thru the use of social
media
External
Threats
 Global warming/climate change
 Changes on Tax policies like for rates
and incentives
 Government stability
 Bureaucracy
 Competition regulation that would
affect all of the businesses within the
area
 Consumer protection and e-commerce
policies
 Trade control
 Government involvement in trade
unions and agreements
 Inflation rates
 Interest rates for borrowings
 Unemployment trends
 Labor costs
 Stage of business cycle
 Credit availability
 Trade flows and patterns
 Monetary policies
 Price fluctuations on products
 Weather
 Climate change
 Level of consumers’ disposable income
 Unpredictable consumer preferences
 Competitors within Pampanga and
other regions in the country
 Wide range of delicacies offered in the
market
 New trends, fashion and tastes that can
create different types of consumers
 Social classes
 Attitudes toward saving and investing
 Attitudes toward imported products
and services
 New and advanced processing
technologies
 Payment Automation
 Energy and Power Saving Equipments
 Limited supply of raw materials in the
Philippines

  Enabling researchers to make new
discoveries that are changing our
understanding of nutrition.
 Expansion of distribution thru Online
Shopping
 Computer calculation speed/power

CRITICAL FACTORS ON OPPORTUNITIES AND THREATS

 Packaging, food labeling, and production - Attractive Packaging and Labeling

can instantly grab a viewer’s attention towards a product. Labelling and
packaging can be used by marketers to encourage potential buyers to
purchase the product.
OPPORTUNITIES

As support to the invaluable contributions of MSMEs to the country’s

GDP (MSMEs accounted for 32 percent of the country’s GDP), the
government developed various programs for MSMEs (Micro, Small and
Medium Enterprises) through agencies like DTI & DOST, to help them improve
their product packaging and labeling, as well as increase their production
capacity to be able to compete in the market. This is a great opportunity for
MSMEs to increase the marketability of their product.
  Global Warming/Climate Change – one of the critical factors that the
company needs to consider is Climate Change. Changing climate may affect
the length and quality of the growing season for agricultural products and
farmers could experience increasing damage to their crops, caused by a
rising intensity of droughts, flooding or fires. This in turn, affect the supply
of raw materials such as nuts and garlic which are the primary raw materials
of the company
 Competition – Aside from the local competitors, MSMEs may face a stiff
competition with the implementation of ASEAN Integration. While
businesses may benefit from the highly competitive market as a venue to
expand their production and networks, small enterprises and poorly
educated laborers may find it difficult to compete with the free flow of
goods, services, and skilled workers.
In addition, the areas of competition were more on pricing
(82%) and product quality (54%). More food processing firms experience
competition in terms of product quality. The food processing industry is
composed of traditional and technologically advanced firms. Those engaged
in home-based processing suffer from low quality and those with better
equipment come out with higher quality products. Some firms were
competitive because they have a wide range of contacts in the market.
THREATS

Usually, these companies depend upon strong business or political

connection in the community as a means to obtain orders for their
enterprises.
(Professor Melito S. Salazar, n.d.)

 Inflation Rates - High and unpredictable inflation can impact small

businesses to the following reasons:
- Rising inflation can induce a wage-spiral when workers demand
higher wages to maintain their standard of living;
- Uncertainty about the future makes business planning and
budgeting difficult;
- Higher prices of raw materials, energy and other inputs can squeeze
margins which can then feed through business investment decisions.

(Inflation, deflation, reflation, 2008)

 Government Regulations - In recent years, the small firm has to contend

with the shift from import controls to import liberalization in many
developing countries. This could bring about intense competition resulting in
price cutting. A variety of laws at the national and local levels also constrict
the operations of the small business. These laws range from price control to
regulatory measures that prescribe mandatory registration and payment of
fees.

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