Strategic Plan

THE HAPPY BEAN

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TABLE OF CONTENTS

ACKNOWLEDGEMENT 3

I. COMPANY BACKGROUND 4

A. MISSION STATEMENT 4

B. VISION STATEMENT 5

C. VALUE STATEMENT OR GUIDING PRINCIPLES 5

II. SWOT ANALYSIS AND TOWS ANALYSIS 6

III. COMPETITIVE ADVANTAGE 10

IV. LONG TERM STRATEGIC OBJECTIVES 14

V. STRATEGIES 15

VI. SHORT TERM GOALS/PRIORITIES/INITIATIVES 16

VII. ACTION ITEMS/PLANS AND GANTT CHART 17

VIII. SCORECARD 20

IX. RECOMMENDATION 22

X. FINANCIAL ASSESSMENT 23
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ACKNOWLEDGEMENT

We would like to express our sincere gratitude and extend our appreciation for those

individuals in making this project, strategic plan.

To Dr. Rosalina Loquias, our professor in the strategic management, for strictly supervising

us in making and finishing this project. Additionally, we also express our gratitude of her

unwavering guidance and advice to help our work become a better work.

To our beloved parents, who always stay in our side, who always gives us enough

encouragement and unconditional love and support and motivation in order for us to accomplish

our project with outmost dedication.

To supportive friends in the university, who have shared their knowledge, time, assistance

and experience regarding the topic that we are accomplishing. Hence, give us strength and

motivation to do such project.

To our Almighty God, for continuously guiding us every day. Also, we are grateful giving

us knowledge to get through in this project.

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I. COMPANY BAKGROUND

The Happy Bean is an average coffee shop to be established on September 2018. It is

a partnership composed of five partners who contributed their money, property, and industry

in putting up this company. The café serves coffee, cakes, pastries, and other types of desserts

with different variants for each menu. The business provides diverse and unique flavors to their

target markets, continuously updating their menu for new creations. Its main store will be

located along Magsaysay Avenue, Naga City.

This café targets all sorts of market segments, starting from adults, teenagers, and kids.

Everyone could actually be a target market of the business because its products are actually made

for everyone’s taste and preference. In this way, the company would not limit their potential

sales from certain groups of people only. The business values their customers, in fact, they

are their top priority. They make sure to establish good relationships with them and gaining

their loyalty by providing privileges to regular customers such as discounts, freebies, special

offers, and the like. In this way, the business would be able to have stable market share that

translates to higher profits.

A. Mission Statement

The Happy Bean aims to provide products made from high quality of raw materials

as well as satisfying services that will keep the customers coming back for more. It

intends to build strong relationships with its customers, giving them value and importance

to gain their utmost loyalty. Moreover, the internal customers will also be taken care of

by providing benefits they deserve to receive. Also, its philanthropic goals to reach out to

those in need amidst its success are something they want to achieve throughout the company’s

existence.
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B. Vision Statement

The Happy Bean envisions being the most successful coffee shop within the café

industry while helping the marginalized people in the society. It does not only aim to be

on top of the pyramid of the café businesses, but it also wants to share its success to those

people in need. They believe that their philanthropic intentions are something that will set

them aside from all the other cafés within the city. Also, they aim in the near future to be

able to gain the highest market share in this kind of industry, from building strong bonds

with their highly valued customers.

C. Value Statement or Guiding Principles

 Customer Service – the company’s focus is their customers, both internal and

external. Everything they do revolves around ensuring that all customers have

positive and productive contact with them.

 Teamwork – they will encourage and support each other to achieve their best at all

times in a safe, fun and relaxed environment.

 Accountability – they accept full responsibility for their actions and are

accountable for the results achieved.

 Positive Relationship – they will actively promote a positive and satisfying work

environment and represent the shop positively at all times.

 Continual Improvement – they will constantly re-evaluate their service and

actively elicit, listen and act upon information for continuous improvement,

actively promoting innovative practice in all that they will do and are involved with.

II. SWOT ANALYSIS

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A thorough analysis of the company's strengths, weaknesses, opportunities and threats is a vital tool for

strategizing a business, especially for a new entrant. Also, it provides guidelines on how to achieve the

goals and objectives of the company.

The SWOT analysis of the business is presented below.

A. STRENGTHS

For the internal aspect of the business that brings competitive advantage, it identifies 6 areas of its

strengths. First, the customers are rest assured of the satisfactory taste of its products being offered. They

have some variations of flavours to choose at reasonable price, which is the second strength. As much as

possible, the business will make sure that that I that I will offer affordable price without taking at the

expense of the products' best quality. Having skilled employees with pleasing personalities is the fourth

strength. This class of human resource enables the business to be effective and efficient in conducting its

regular business operations. It will also help to establish a strong customer relationship, which creates

loyalty to the business. Fifth, its location is accessible to the customers who wanted to go on a cafe. Parking

spaces are also provided for them. Sixth, the cafe will provide the comfort that most of the customers would

ever want to have. The internal design of the company would be unique from other; having the soothing

ambiance. Moreover, it has its fast Wi-Fi (wireless fidelity), exclusively available for its customers who

wants to surf on net or stay connected and updated with their social media. For the last, the company will

have its machineries and equipment for the efficiency in the production and for the convenience of serving

the customers.

B. WEAKNESSES

The business has also identifies its weaknesses that are needed to be take into consideration. Being a new

entrant in the business, it is probable that the start-up costs would be higher as compare to the normal cafes.

This will lead to higher selling prices of the products, therefore bringing a negative effect to the entity's

competitive advantage. In connection with being at the stage of introduction in the field, the business would
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find it difficult to advertise its name to the public. It would take some time to get the attention and loyalty

of the customers. Lastly, the entity does not yet have a firm administration in running the business. It's

knowledge in managing a cafe is not yet sufficient. It still have a lot of risks to take and the manager must

be firm enough to carry on the business, with the consideration if it is still be beneficial for the business and

the partners.

C. OPPORTUNITIES

In analysing the external factors of the business' environment, one must recognize its opportunities out of

them. In order for the entity to be successful, it must take every opportunity that it has to gain more make

share and also, and earn more profit. Having the available machineries and equipment which lessen the

costs for worker salary, the business has the opportunity to have innovations with its products. This will

create additional variations to the products being offered that can be served on time. It may also offer a

cheaper, but tasty version of coffee that the competitors. Because of these, the business will be able to

attract more customers that may be from the competitors' cafe. And so, one of its opportunity is that cafes

are usually preferred as venue for informal meetings. Being in a city, a lot of busy persons do their meetings

in the cafes which is preferable for the entity.

Having evaluated that the business is improving and gaining more profit, if possible, the entity might

consider on expanding its business. Through expansion, its name will be at some point disseminated to the

public.

D. THREATS

Wherever we go at Naga, we can see cafes everywhere. The competitors are one of the major threats for

the business. It is not only those which are established and well known cafes that are threats, but also the

potential new entrants. There are cafes which already in the service for a long time, offering different

product segments, knowledgeable about the trends making them popular to the public. A lot of individual

or groups want to enter on cafe business. These factors bring up to the threats on the entity. Moreover,
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changing market needs is one of the socio-cultural trends in the external environment of a business. We

cannot say that our loyal customers will be the same as the time goes by. Considering that people are

insatiable, we cannot expect that they will settle for one. Time will come that they will be looking for

another cafe that would satisfy their new needs and wants.

Given this analysis, the company must improve and developed its SWOT factors in order for its business

to survive in the long run.

SWOT ANALYSIS
STRENGTHS WEAKNESSES
1. Satisfactory taste of products 1. High start-up cost
2.Variety of products at reasonable price 2. Low publicity
3. Skilled employees with pleasing
3. No strong administration yet
personalities
4. Accessibility of location
5. Comfortable ambiance of the shop
6. Convenience of service with the
machineries and equipment of the entity

OPPORTUNITIES THREATS
1. Innovation of products being offered 1. Competitors
2. Cheaper version of well-known 2. Potential threats of new entrants in the
competitors' coffee same line of business
3. Expansion of the business

TOWS MATRIX
STRENGTHS
1. Satisfactory taste of products
2.Variety of products at
reasonable price
3. Skilled employees with
pleasing personalities
4. Accessibility of location
5. Comfortable ambiance of the
shop
6. Convenience of service with
the machineries and equipment
of the entity
WEAKNESSES
1. High start-up cost
2. Low publicity
3. No strong administration yet
OPPORTUNITIES
1. Innovation of products being
offered
2. Cheaper version of well-
known competitors' coffee
3. Expansion of the business
SO Strategies
* Investing in creating new
variety of tasty products at
reasonable price
* Getting idea from the best-
selling offers of the
competitors then make own
cheaper version of these offers.
Reduce the cost by efficiently
using the available machines
WO Strategies
* Offers tasty products at
affordable price to get market
loyalty and trust and be able to
be known to others
*Innovate and discover various
flavors, as much as possible,
feasible at low cost inputs to
arrive at reasonable selling
price
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THREATS
1. Competitors
2. Potential threats of new
entrants in the same line of
business
ST Strategies
* Convenient and fast service
of the skilled employees with
the use of the entity’s machines
and equipment
* Producing competitive tasty
products at affordable price
WT Strategies
* Periodically assessed the
effectiveness of the currently
implemented strategies and
make necessary revisions, if
needed
* Maintain and evaluate the
record of operation expense
and make alternative plan in
order to have the supplies
needed, same quality, at
affordable price
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III. COMPETITIVE ADVANTAGE

As illustrated below, it summarizes the competitive advantages possessed by the company against

its competitors in the same line of business.

COMPETITIVE CUSTOMER COMPETITION KEY SUCCESS

ADVANTAGE WANTS PROVIDES FACTORS

Skilled employees Approachable Well strategized  Maximizing employees

with pleasing employees and organizational and skills
personalities managers production model  Has the effective way in
evaluating the
performance of the
employees
 The manager has direct
knowledge on the daily
business transactions
Competitive taste of Satisfactory taste of Offers different product  Satisfactory products

products at reasonable products, has segments and are usually  Reasonable price, enough

prices variations to choose expensive to cover up cost and earn

from a t affordable sufficient profit

price  Supplier’s price

Accessibility Accessible The café is easily located  The business is along the

everywhere and usually at malls highway

 It provides parking space

exclusively for customers

 It is located near to well-

known establishments
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Comfortable ambiance Cozy environment; Has unique interior  Fiber internet plan

Faster Wi-Fi design; Provides faster  Artistic interior design

connection internet connection

Reputation held to the Some customers  Offers unique products  High quality and unique

public wanted to go at well- which are new to the products

known and taste of the customers  Approachable employees

international café;  Invest in innovation of

others wanted to go their products

at the popular cafés

High but reasonable Satisfactory products Normally expensive with  Suppliers price for the

starting product price at affordable prices class and delightful inputs

products  Alternative ingredients

 Minimize the cost that

will arrive at the same

quality of products

Advertising strategy Get easily informed Use advertisement in Invest in advertising

of what the company television, radio, and through social media,

offers and their billboards brochure and other means of

respective prices affordable advertisement

High demand on cafés Satisfactory taste at  Expensive but not  Must maintain its public

cheaper price satisfactory taste of image of offering

products products at best taste for

 Only promotes its good reasonable price

will to the public, being  Establish a good

famous and classy customer relationship

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Ability to attract Products are  They have an effective  Strategized how the

customers satisfactory, the marketing strategy entity will have a larger

entity offers several  Their cafés are famous market share

discounts and  Some of the marketing

promotions, coupon strategies are offering

promos, discounts, and

coupon

Ability to hire skilled Approachable and They apply job rotation in apply both freshly graduate

employees with obedient employees order for its employees to and experienced applicants.

pleasing personalities not get bored with their They have the potential to

specific tasks bring something new in the

company in their own way.

Expansion of business Branches are offering  Standardized products Utilized capital to procure

the same services being offered funds for expansion

and taste with the  Have some variations

main office depending on the

culture

Established  Cheap and They usually offer Provides satisfactory taste

competitors and threats satisfactory unsatisfactory and of products for reasonable

to potential new products expensive products price

entrants  The café is

accessible

Changing market taste Products which are Offers different varieties Invest in offering the

different from others of the product but lacking feasible variations that are

and has variations of differentiation

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effective for the company to

handle

Corporate social Nutritious and free Use artificial flavorings  Engage on innovation with

responsibility from many the use of natural inputs in

preservative products production of products

 Limit the use of artificially

flavoured products

Barriers entry Reasonable pricing Equipped with efficient Seek for potential sponsors

machineries and for the acquisition of

equipment with their equipment and machineries

production

Changing/increasing Desire for consistent  Increase the selling The company set

price of raw materials price and taste of price of the same alternatives and might select

products producer and quantity the best alternative out of

 Price remains the same them depending on the

but its quality or taste is circumstances

decreased

As the table shows, the Happy Bean will have an edge against its competitors because they have

many competitive advantages. First, the business will hire employees that are skilled and also with pleasing

personalities so that they will look approachable to the customers. Second competitive advantage is that the

business will provide products with satisfactory taste with many variations and with lower price than their

competitors and the location of the business will be very accessible to everyone since it will put up in

different malls and along the highways. Since nowadays people look for cafe/restaurants with comfortable

and unique ambiance, the business will create cozy and artistic interior design in order to satisfy their

customers and it will also provide fiber internet plan to create more impact to customers. Lastly, the business
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will use nutritious and free from preservatives products and ingredients in order to help their customers to

live a healthy life.

IV. LONG-TERM STRATEGIC OBJECTIVES

In line with the company’s visions, The Happy Bean aims to achieve the following long-term goals

within span of more than three years of the business’ operations:

 To expand the business all over the country by establishing branches all around the archipelago

 To have a market share that equals or exceeds the leading businesses in the same industry

 To upgrade marketing strategies by promoting the business through television and radio

advertisements as well as billboards along the major highways especially in Manila

 To employ models or television personalities to endorse the business for better marketing purposes

 To be able to help mitigate unemployment rate in the country by providing jobs to people

 To help not only charity institutions all around the country but also the marginalized people in the

society found everywhere in the Philippines

 To have large memberships of regular customers in all branches

 To sustain its status as a café in terms of quality of the products and services offered

 To create a trademark in the café industry and make its own name in the business

 To incorporate taper integration in terms of its raw materials used in making products
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V. STRATEGIES

The company is strategically equipped starting from its location, employees, pricing

strategies, up to its assets and equipment used for operations. With highly advanced machines used

in producing high quality products, it would be easier to compete with similar establishments given

these facts. The company could attract customers simply with its approach of focusing on the

quality of both products and services as well as its hi-tech marketing strategies of venturing into

websites to advertise the company to almost everyone.

Competitive pricing strategies were also utilized in favour of the customers. The company

sees to it that the price to be paid in exchange of the products and services will be worth it on the

part of the customers. In this way, customer relationships will be strengthened by keeping them

satisfied each time they visit the store. Moreover, regular customers will be given privilege over

several offers of the store in return of their loyalty.

Highly competent employees are also hired in the company to uphold the goal of providing

nothing but high quality products and services. Constant trainings, seminars, and workshops are

held every year to continuously update the employees with necessary skills and knowledge that is

deemed beneficial to the company. The company aims to have a distinctive competency over other

cafés in terms of new techniques in preparing and serving coffees as well as providing unique

desserts that are new to the customer’s taste buds.

Also, the company tries to reach out to a large variety of customers by putting up kiosks in

certain establishments to respond to competitions posed by other cafés. In this way, marketing

share could be increased by exposing the café to a larger market segment that could translate to

higher profits.
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VI. SHORT TERM GOALS/PRIORITIES/INITIATIVES

In line with the visions of the company, The Happy Bean aims to materialize the goals

enumerated below in one to two years’ time:

 To provide satisfying foods made from high quality raw materials

 To provide satisfaction to customers by continuously offering new creations in the menu

 To market the business and make it known to the public through technological means

 To build strong relationships with customers and creating a large market share

 To help the community especially those marginalized people in the society

 To provide employment for those in need of job and enhancing their capabilities

 To enhance employees’ potentials integrally as they grow together with the business

 To expand the business within the limits of the city

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VII. ACTION ITEMS/PLANS AND GANTT CHART

To achieve the goals of the company, specific actions and timeline were formulated

and enumerated below:

Persons
Activities Objectives Costs Time
Responsible

1. Supplier meetings To negotiate with suppliers Purchasing P 5,000 – Bi-weekly or

regarding raw materials to be Officer 10, 000 Monthly

utilized in the business and

assure its high quality.

2. Research works To constantly update with the All P 1, 000 – Weekly

current trends in relation to 5, 000

the business.

3. Website To oversee the marketing Marketing staff P 2, 000 – Daily

development and strategy taken up by the 8, 000

monitoring business and to be keep

informed of the market

position of the café.

4. Promotional To attract customers and to Marketing staff P 9, 000 – Quarterly

activities (Discount keep them loyal to the 15, 000 Holidays

days, freebies, etc.) business.

5. Charity programs To connect with the All P 10, 000 – Quarterly

community and a way to share 15, 000

the success of the company to

people in need.
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6. Job To help the unemployed get a General Manager P 5, 000 – Whenever

offerings/hirings job whether full time or part 8, 000 necessary

time.

7. Trainings, To have an integral growth on General Manager P 10, 000 – Bi-monthly

Seminars, and the employees towards 20, 000

Workshops holistic improvement.

8. Expansions To expand the scope of the All P 100, 000 – At least semi-

business to other locations as 500, 000 annually or

well as develop market share Annually

in such places.
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GANTT CHART

Activities Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

1. Supplier

meetings

2. Research

works

3. Website

development and

monitoring

4. Promotional

activities

(Discount days,

freebies, etc.)

5. Charity

programs

6. Job

offerings/hirings

7. Trainings,

Seminars, and

Workshops

8. Expansions
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VIII. SCORECARD

To report the data of key performance indicators and track the company’s performance

against monthly targets, balanced scorecards are prepared. In this way, the company would be

aware as to whether they are achieving their objectives or deviating from such. It will serve as a

guide to keep the company on the right track as the business continues to operate. To further

analyse, four individual areas will be taken into account such as learning and growth, internal

business processes, customers and finance. The table below will present the summary of the

company’s scorecard.

KEY PERFORMANCE INDICATORS 5 4 3 2 1

1. The orders placed in the website are managed effectively.

2. Customers both in the physical and online stores are highly accommodated.

3. Kiosks established around the city are well managed and supervised.

4. The customers per kiosk are well served and of the same service quality as the

main store.

5. Raw materials of the products are of high quality.

6. There is a good relationship between the management and the suppliers.

7. Regular seminars, workshops, and trainings are held for employees.

8. Quicker response in terms of lead time is observed.

9. Customer complaints are well-handled and the employees still address such

customers with utmost respect.

10. The person who disburses and in custody of the allocated funds for charity

causes is of different employees.

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11. Charity programs are held at least twice a year.

12. Number of customers included in the privilege membership increase

significantly per year.

13. Freebies, discounts and other special offers are given per occasion.

14. Upsurge in sales is observed at least monthly.

15. Credit policy is well managed wherein timely collections are done for every

customer account.

16. Efficient asset utilization translates into profits.

17. Differential costs are considered between alternatives in financial decision-

making.

18. Current obligations are settled as promptly as possible.

19. There is a maintaining balance of cash and short term investment in case of

contingencies.

20. Working capital is handled efficiently that there is enough cash for daily

operating expenses.

21. Almost all employees are present every working day.

22. Employees observe proper hygiene and are well-sanitized at all times during

working hours.

23. Employees observe “customer is always right” policy.

24. Employees are friendly to customers, always wearing a smile.

25. Employees are highly knowledgeable in their field of work and avoids

slacking during working hours.

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IX. RECOMMENDATIONS

Upon the evaluation and analyzation of the internal and external factors of the company,

recommendations were formulated as enumerated below:

1. Proper management and monitoring of the company website for prompt responses to

customer inquiries.

2. Constant upgrade of machineries and equipment to cope with the fast changing technology.

3. Continuous maintenance and upkeep of machineries and equipment to keep it in its tip top

shape for more effective and efficient performance.

4. Acquisition of additional machineries and equipment if highly needed to increase

productivity, replacement of damaged machineries and equipment, or other similar

situations.

5. Expansion in form of kiosks for the short-run, then actual branches of physical stores in

the long-run in response to increasing competition.

6. Management of raw materials and supplies to keep it at a favourable quantity enough to

cater to several orders, so as not to lose potential profits.

7. Provision of scheduled trainings, seminars, and workshops for employees to keep them on

track of what’s trending in the café industry and upgrade their skills for high quality of

service.
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X. FINANCIAL ASSESSMENT