STRATEGIC AUDIT OF BOOMBASTIC BALLOONS

AND PARTY NEEDS

Presented to
Ms. Denise Meryl H. Javellana, CPA, MBA
Notre Dame of Dadiangas University
General Santos City

In Partial Fulfillment of the

Requirement for the Course
Business Policy
(BA 211)

By

Almoite, Anita
Aranas, Geraldine
Aporador, Mark June
Balinsayo, Jurist Mark
Del Pilar, Hazel
Escovidal, MJ
Foncardas, Mark Denver
Jabat, Jerome
Morales, Shaneen Angelique
Torres, Mhailene Joy
Torres, Xanita Bianca

August 2019
I. Current Situation

A. Current Performance

1. Debt to Equity Ratio: 0% as of June 31, 2019

2. Debt to Asset Ratio: 0% as of June 31, 2019 (no short-term and

long-term debts)

3. Net Profit Margin: 67% for the 4-month period

4. No losses since start of the business

5. Capital are solely coming from personal funds

6. ROI: 19.27%

B. Strategic Posture

1. Mission

 Developed in May 2019: “To be the leading balloons & party

needs in General Santos City”

 Updated in August 2019: ““Providing better quality of party goods

and services, in line with the customer’s needs and wants before

and after booking. Hence, ensuring the customer’s attention,

satisfaction and retention.”

2. Objectives

a. Management

 “To hire and train at least 1 additional personnel within the

year.”
 b. Operations

 “To find better strategic location for the relocation of the

business.”

 “To purchase additional equipment such as delivery van,

electric air pump and latest model of videoke to ensure the

continuous flow of providing a better quality of goods and

services to valued customers for the second quarter of 2020.”

 “To create partnership for the kitchen and catering commissary

by the end of 2020.”

c. Financial

 “To increase revenue at least by 2% every month by increasing

the inventory turnover rate and sales profit margin.”

 “To seek financial assistance through short-term bank loans on

the 2nd quarter of 2020.”

d. Marketing

 “To generate policies related to marketing and operations within

this year.”

 “To improve quality of party products and services to valued

customer by offering new and latest trend in party events

such as confetti blasts, bubble machines and lighted

 decorations in order to capture the attention of possible

larger market for the second quarter of 2020.”

3. Strategies

 Focused on promotional activities such as corporate sponsorships,

discounts and special promos.

 Canvassed delivery van, electric air pump, and videoke machine

for the procurement of these assets.

 Canvassed of new products for the offering of latest trend in party

needs.

 Conducted inquiry of financing products from financial providers

such as banks and other lenders.

4. Policies

 No return/no refund policy

 No gift policy

 Pick-up only policy for rentals (Monday-Friday, 9:00am-1:00pm

only)

 Cash Basis, Deposit 50% and 50% in full upon accomplishment of

the service

 For rentals, lost or damage of rented items will be charged double

to the clients/customers.
 II. Strategic Management

A. Board of Directors

 One sole proprietor (male-26y.o.)

 One managing partner (female-23y.o.)

 One with background in events decorating

 Both graduate of BS in Financial Management

 Entrepreneurs at a young age

 Both with work experiences in the Academe as personnel staff

 Still needs more training

B. Top Management

 Same as above

III. External Environment

(EFAS Table; See Exhibit I)

A. Natural Environment

 Natural calamities like flood, storm, and earthquake causing

inability to deliver products and services (T)

 Environmental issues on the production of plastic balloons that

could affect the planet’s ecosystem. (T)

B. Societal Environment

1. Economic
  Implementation of R.A. 10963 or Tax Reform Acceleration

Inclusion Law may cause the increase in prices on the basic

commodities that has a possible domino effect on the rest of the

industries including the events industry (T)

2. Technological

 Trend for online marketing and e-marketing such as Facebook,

Instagram, and Youtube to promote and sell the products and

services of balloons & party needs(O)

3. Political-Legal

 Compliance with governmental laws & regulations, tax

remittances, and other compliances.

4. Socio-cultural

 Constant changes in customers’ preferences (T)

 Increasing demand for party needs (O)

C. Task Environment

 Intense competition and threat to new entrants (T)

 Possibilities for governmental tie-up (O)

 Rivalry High. Kai-Kai Balloons, Klaibelle, Noemis Balloons,

Kokay Balloons, Kaisser Balloons and Party Needs. These

 competitors are well-established in terms of customer loyalty,

company branding, years in operations, and financial stability. (T)

 Buyers’ Power High. Buyers have many options due to existing

high competition. Even though they cannot dictate the price, but

they can always impose the quality of products or services from

the suppliers. They can make the industry more competitive and

decrease profit potential for the seller. (T)

 Supplier Power Low. The industry can always have alternatives

suppliers such as from local market, malls, and other leading

supermarkets.

 Threat of substitutes Low for Balloons.

 Threat of substitutes High for Party Needs.

 Entry Barriers High. New entrants can easily enter the market

because of low capitalization needed and supplier accessibility.

D. Summary of External Factors

 Socio-cultural Factor such as the increasing demand for party

needs.

IV. Internal Environment

(IFAS Table; see Exhibit 2)

A. Corporate Structure
  Decision making, marketing, operational, and financial activities

are centralized functions of the owners. (S)

B. Corporate culture

 Good relationship and excellent teamwork (S)

C. Corporate resources

1. Marketing

 Selling and promoting products and services online (S)

 Printed media such leaflets, tarpaulin, and flyers

 Feedback/word of mouth

 Sponsorships of local events

2. Finance

 Limited financial capacity to fund fixed assets. (W)

 Unstable financial performance (W)

3. R&D

 Focus on putting up a commissary kitchen for the catering

services

4. Operations & Logistics

 Cheaper product prices and catering packages (S)

  Inaccessibility of Physical store location (W)

 Absence of equipment and delivery vehicle (W)

5. Human Resource

 Undermanned and undertrained staff. Boombastic has 3 regular

staff and 2 on-call employees. (W)

6. Information System

 Microsoft Office Applications

D. Summary of Internal Factors

1. Strong Management.

2. Excellent teamwork leads to efficiency and effective management.

V. Analysis of Strategic Factors

A. Situational analysis (SWOT)

(SFAS Matrix; see Exhibit 3)

1. Strengths

 Cheaper prices and catering packages

 Ability to sell and promote products and services online thru

Facebook and website

 Good relationship and excellent teamwork of the owner & partner

 Decision making is centralized to the owner and partner

 2. Weaknesses

 Inaccessibility of Physical store location

 Undermanned and undertrained staff

 Absence of equipment and delivery vehicle

 Limited financial capacity to fund fixed assets

 Unstable financial performance

3. Opportunities

 The ability to advertise products in other forms of electric

marketing

 Governmental tie-up as supplier for catering services

 Increasing demand for party needs

4. Threats

 Intense competition and threat to new entrants

 Inflation due to implementation of TRAIN Law

 Constant changes in customers’ preferences

 Suppliers delayed deliveries & other fortuitous events

B. Review of Current Mission & Objectives

 Current Mission shows to be aligned with the current

operations of the business.

 Some of the objectives are really goals-oriented, quantifiable

and time bounded.

APPENDICES
 EXHIBIT 1

External Factors Analysis Summary (EFAS Table): Boombastic Balloons and Party Needs

External Factors Weight Rating Weighted Score Comments

Opportunities

 The opportunity to promote and sell

Boost of e-
products in other forms of 0.15 3.00 0.45
commerce
electronic marketing
 Governmental tie-up as supplier for
0.10 1.00 0.10 Bidding
catering services

Accessibility of
 Increasing demand for party needs 0.25 4.50 1.13 the products and
services

Threats

 Intense competition and threat to

0.25 4.50 1.13 Well positioned
new entrants

 Constant changes in customers’ Choices change

0.15 3.50 0.53
preferences from time to time

 Suppliers delayed deliveries 0.10 3.00 0.30 Fortuitous events

Total Scores 1.00 3.64

 EXHIBIT 2

Internal Factors Analysis Summary (IFAS Table): Boombastic Balloons and Party Needs

Internal Factors Weight Rating Weighted Score Comments

Strengths

 Cheaper prices of balloons and

0.15 4.50 0.68 Affordability
catering packages

 Ability to sell and promote products Website & social

0.10 2.50 0.25
& services thru Facebook medias

Good relationship
 Good relationship and excellent
0.25 4.00 1.00 and excellent
teamwork of the owners
teamwork

Weaknesses

Location is not
 Inaccessibility of physical store
0.25 2.00 0.50 strategic area for
location
market

 Undermanned and undertrained Lack of relevant

0.10 2.50 0.25
staff skills and training

 Limited financial capacity to fund Weak

0.25 1.00 0.25
fixed assets capitalization

Total Scores 1.00 2.93

 EXHIBIT 3

Strategic Factors Analysis Summary (SFAS) Matrix): Boombastic Balloons and Party Needs

DURATION
STRATEGIC FACTORS WEIGHT RATING WEIGHTED SCORE COMMENTS
SHORT INTERMEDIATE LONG
Good relationship
Strong management (S) 0.2 4 0.8 x and excellent
teamwork
Cheaper prices
Cheaper prices (S) 0.1 4 0.4 x X and catering
packages
Inaccessibility of Location is not
physical store location 0.15 4 0.6 X strategic area for
(W) market
Limited financial
Weak
capacity to fund fixed 0.15 3.5 0.525 X
capitalization
assets (W)
Accessibility of the
Increasing demand for
0.1 3.5 0.35 X x products and
party needs (O)
services
Trend for online market Boost of e-
0.1 4 0.4 X x
(O) commerce
Intense competition and
threat to new entrants 0.1 4.5 0.45 X Well positioned
(T)
Constant changes in
Choices change
customers’ 0.1 3.5 0.35 x
from time to time
preferences(T)
1 3.875
 EXHIBIT 4
INDUSTRY MATRIX: Boombastic Balloons and Party Needs
Boombastic Boombastic
Kai-Kai
Balloons & Balloons & Kai-Kai Klaibelle
Balloons Klaibelle
Key Success Factors Weight Party Needs Party Needs Balloons Weighted
Weighted Rating
Rating Weighted Rating Score
Score
Score
 Technology &
0.10 2.50 0.25 3.00 0.30 4.00 0.40
Upgrades

 Marketing 0.15 4.00 0.60 3.00 0.45 3.00 0.45

 Supplier tie-up 0.05 3.50 0.18 3.00 0.15 3.00 0.15

 Financial Capacity 0.20 2.50 0.50 5.00 1.00 4.00 0.80

 Staff training and

employee 0.05 3.00 0.15 2.50 0.13 2.50 0.13
retention
 Customer Service 0.15 3.50 0.53 3.00 0.45 3.50 0.56

 Location 0.10 2.00 0.20 5.00 0.50 5.00 0.50

 Continuous
0.10 2.00 0.20 3.00 0.50 5.00 0.50
Improvement

 Quality
0.10 4.50 0.45 4.00 0.40 3.50 0.35
Management
TOTAL 1.00 3.06 3.88 3.84
 EXHIBIT 5

PORTER’S FIVE FORCES FOR BALLOONS AND PARTY NEEDS INDUSTY

Supplier Power Low Buyer Power High

1. Divisorias Best (Main) - 1. High Competition among

Low the industry
2. Supermarkets - Low 2. Demand for quality
3. Public Markets - High 3. Malls as alternative
4. Malls - High 4. Local and Online Stores
5. Local Stores - Low

Competitive Rivalry
1. Kai-Kai Balloons and
Party Needs
2. Kokay Toy Balloons
3. Noemi’s Balloons and
Party Needs
4. Klaisser Balloons
5. Kaibelle Balloons and
Party Needs
6. BoomBastic Balloons

Threat of New Entrants High Threat of Substitution

1. Low capitalization required 1. High for Party Needs

2. High Demand of - DIY decorations
products/services 2. Low for Balloons
3. High Accessibility of - No alternatives for Balloons
suppliers
4. High Easy to comply
requirements/permits
5. High Access to online
marketing
6. Low technological
requirement
 EXHIBIT 6

Vision and Mission of Boombastic Balloons and Party Needs

 The Vision Statement:

“To be the leading balloon and party needs provider in General Santos City that

provides quality goods and services based on the customer’s needs and wants in

accordance to Boombastic’s core value-Customer Satisfaction.”

 The Mission Statement:

“Providing better quality of party goods and services, in line with the customer’s needs

and wants before and after booking. Hence, ensuring the customer’s attention,

satisfaction and retention”

 EXHIBIT 8

Value Chain Management Analysis

 PRIMARY ACTIVITIES

 Inbound Logistics

It involves relationships with suppliers and include all the activities

required to receive, store, and disseminate inputs.

Goods

1. Transportation of supplies from the

suppliers. (From Manila & Davao to

Gensan)

2. Receiving supplies for inventory such

as balloons, party hats, loot bags and

others from the suppliers through

couriers.

3. Supplies are stored on the Physical

 store of the business.

Services

1. Transportation of raw ingredients for catering services.

(From leading Supermarket/City Market to the Physical Store)

2. Storing of their raw ingredients for catering services on specific

storage compartment of the business.

3. Transportation and storing of raw supplies such as chairs, tables,

cloths, and other supplies related to the services provided in the

space allocated of the business in their physical store.

 Operations

It involves all the activities required to transform inputs into outputs

(products and services).

Goods

1. Inflating balloons using the electric pump machine on or before

the booked date of the event of their clients/customers.

2. Putting accessories such as toys and candies in loot bags on or

before the booked date of the event of their clients/customers.

Services

1. Lay-outing designs for specific event prior the booked date.

2. Preparing foods and other necessary items for catering prior the

booked date.

3. Inventory of tables and chairs weekly and monthly bases.

 Outbound Logistics

It includes all the activities required to collect, store, and distribute the

output.

Goods

1. Delivery of balloons, loot bags and other related goods for

specific events an hour prior the start of the specific events.

Services

1. Delivery of Foods to the event prior the start of the specific events.

2. Delivery and arranging tables and chairs prior the start of the

specific events.

3. Decorating the venue of the event prior the start of the specific

events.

 Marketing & Sales

The activities inform buyers about products and services, induce

buyers to purchase them, and facilitate their purchase.

Goods & Services

1. Social Media advertising a new approach in marketing.

2. Print Media such as leaflets, tarpaulin, & flyers.

3. Feedback/word of mouth of clients and guests.

4. Sponsorships of local events in General Santos City.

 Services (After Sale Service)

It includes all the activities required to keep the product or service

working effectively for the buyer after it is sold and delivered.

Goods & Services

1. Posted good reviews and suggestion on their social media

account. (www.facebook.com/boombasticballoons)

2. Repeat orders.

3. SMS Feedbacks

4. Referrals to other prospect clients.

5. Conduct random survey to the served clients/customers.

 SECONDARY ACTIVITIES

 Procurement

It is the acquisition of inputs, or resources, for the firm. Purchasing

inputs for the goods and services on the various suppliers as they will be given

special discounts and promos.

Goods

1. Supplies from Divisoria’s Best and substitute supplier from

Davao.

2. Supplies will be delivered through a courier. (Send Pictures for

checking and availability, 1 week)

Services

1. Buying the ingredients and other needed goods from General

 Santos Public Market and leading supermarket in the city.

 Technology Development

It pertains to the equipment, hardware, software, procedures and

technical knowledge brought to bear in the firm's transformation of inputs into

outputs. Technology to support value creating activities such as:

1. Electric Pump Machine for balloon inflation.

2. Social Media Advertising using Smart Phones.

3. Used in supplier communication (Mobile Phones/

Online Messaging App)

4. Laptop and Printer for lay-outing of designs.

 Human Resource Management

It consists of all activities involved in recruiting, hiring, training,

developing, compensating and (if necessary) dismissing or laying off

personnel. Human Resource Management discuss on the manpower of the

business.

As of now, BoomBastic Balloon and Party Needs ha below number of

human resources:

a. Two Full Time Employee

b. Five On-call Employee

The business entity is planning to hire additional human resources to

fulfil the needs, wants and demands of the client/customers.

 Firm Infrastructure

It serves the business’ needs and ties its various parts together; it

consists of functions or departments.

Thus, the BoomBastic Balloon and Party Needs has only seven (7)

personnel which includes the owner, manager and the five (5) on call

employees. As a starting business, they have no specific department to manage

the different responsibility. The business is located in Zone 6, Barangay BUla,

General Santos City.

Below is the actual site, the façade and the organizational chart of the

BoomBastic Balloon and Party Needs.

ACTUAL SITE OF THE BUSINESS

 BUSINESS FAÇADE

ORGANIZATIONAL STRUCTURE