ACTIVITY 1 PESTLE ANALYSIS (Political, Economic, Socio-Cultural, Technological,

Environmental and Legal)

Proposed Business Name: Salubrious Cupcake Delight

Nature of your proposed business: Retail and Delivery
Possible Location:
Your Analysis:

Political/Legal Factors
Businesses involved in the importation, exportation, trading, and distribution of food, drinks,
drugs, pharmaceuticals, cosmetics, or medical devices in the Philippines need to obtain a license
to operate (LTO) and a certificate of product registration (CPR) from the Food and Drug
Administration (FDA). In preparation for your company’s product market entry, our company can
assist you with obtaining the proper licensing and ensuring legal compliance for importation,
exportation, and distribution of the product in and out of the Philippines.

Salubrious Cupcake Delight will perform the following:

 Register company with SEC (Branch, Subsidiary, Domestic Corporation)
 Obtain a License to Operate (LTO)
 Obtain a Certificate of Registration from FDA
 Introductions to national distribution, warehouse, and logistics companies
 Introductions to national retail chain outlets and stores

When registering a product in the Philippines, the local company must secure a License to
Operate (LTO) from FDA before applying for product registration. All issuances and guidelines,
checklists of requirements, and forms pertaining to licensing of establishments and product
registration may be obtained through Salubrious Cupcake Delight.
Salubrious Cupcake Delight will handle the FDA registration of processed foods,
pharmaceutical drugs, medical devices, in vitro diagnostic reagents, cosmetics, and household
hazardous substance products which will be imported or exported to and from the Philippines.
Establishments involved in the manufacturing, packaging, re-packaging, importation,
exportation, distribution, and retailing of processed foods, drugs, medical devices, in vitro
diagnostic reagents, cosmetics, and household hazardous substance products must secure a
License to Operate from FDA.
Salubrious Cupcake Delight works with its clients to appropriately classify the product to be
licensed, imported, exported, and distributed throughout the Philippines. We can access
laboratories recognized by FDA that can perform the required types of analysis, which need to be
undertaken prior to submitting your product’s application to the FDA.
Salubrious Cupcake Delight works directly with logistics companies in the Philippines so its clients
can get their products into warehousing locations and distributed throughout the country directly
after importation. Our business will assist in forging relationships with Philippines national logistic
companies whether warehousing and/or distribution.

Economic Factors
Salubrious Cupcake Delight tends to focus on identifying and fulfilling consumer needs in
specific niche markets, but all businesses can be affected by large-scale economic trends.
Accounting for trends in the overall economy can help business managers make better decisions.
Economic factors that commonly affect businesses include consumer confidence, employment,
interest rates and inflation.
Consumer confidence is an economic indicator that measures overall consumer optimism
about the state of the economy. Confident consumers tend to be more willing to spend money
than consumers with low confidence, which means businesses are more likely to prosper when
consumer confidence is high. Periods of high consumer confidence can present opportunities for
new businesses to enter the market, while period of low confidence may force companies to cut
costs to maintain profits.
The economy tends to follow a business cycle of economic booms followed by periods of
stagnation or decline. During boom periods, jobs tend to be plentiful, since companies need
workers to keep up with demand. When unemployment is low, consumer spending tends to be
high because most people have income to spend, which is good for businesses and helps drive
growth. When unemployment is high, consumer spending tends to be low because unemployed
people don't have excess income to spend.
An interest rate is the amount that a lender charges an individual or business to borrow
money. Some small businesses rely on loans from banks or other financial institutions as a source
of financing. Higher interest rates result in higher total business expenses for companies with debt.
High interest rates can also reduce consumer spending, because high rates make it more
expensive for consumers to take out loans to buy things like cars and homes.
Inflation is the rate at which prices in the economy are increasing. Inflation causes
increases in business expenses such as rent, utilities, and cost of materials used in production.
Rising costs are likely to force businesses to raise prices on their own products and services to
keep pace with inflation and maintain profits. Inflation can reduce the purchasing power of
consumers unless employers increase wages based on the level of inflation.

Socio-Cultural Factors
Salubrious Cupcake Delight do not exist in a vacuum, and even the most successful
business must be aware of changes in the cultures and societies in which it does business. As
society and culture change, businesses must adapt to stay ahead of their competitors and stay
relevant in the minds of their consumers.
A major socio-cultural factor influencing businesses and business decisions is changing
consumer preferences. What was popular and fashionable 20 years ago may not be popular today
or 10 years down the road. Different styles and priorities can undermine long successful products
and services. For example, a clothing company must constantly be aware of changing preferences
when creating new products or it will quickly become outdated.
Changes in demographics are also a significant factor in the business world. As populations
age, for example, markets for popular music and fashions may shrink while markets for luxury
goods and health products may increase. Additionally, changes in the proportion of genders and
different racial, religious and ethnic groups within a society may also have a significant impact on
the way a company does business.
Advertising is perhaps the area of business most closely in touch with socio-cultural
changes. Advertising often seeks to be hip and trendsetting, and to do this, advertising agencies
and departments cannot lose track of the pulse of the societies in which they engage in business.
Changes in morals, values and fashions must all be considered when creating outward facing
advertising.
In addition to a company's interactions with the market and its customers, socio-cultural
factors also impact a company's internal decision-making process. For example, changing gender
roles and increasing emphasis on family life have led to increased respect for maternity and even
paternity leave with organizations. Additionally, attitudes towards racial discrimination and sexual
harassment have changed drastically over the years as a result of socio-cultural change.

Technological Factors
Business technology has revolutionized the way companies conduct business. Small
businesses can implement business technology and level the playing field with larger
organizations. Small businesses use computers, servers, websites and personal digital products to
develop competitive advantages in the economic marketplace. Small business owners should
consider implementing technology in their planning process. This allows owners to create
operations using the best technology available.
Small business owners can use technology to reduce business costs. Business technology
helps automate back office functions, such as record keeping, accounting and payroll. Business
owners can also use technology to create secure environments for maintaining sensitive business
or consumer information. Many types of business technology or software programs are user-
friendly. This allows business owners with a minor background in information technology to use
computer hardware and software.
Business technology can help small businesses improve their communication processes.
Emails, texting, websites and personal digital products applications, known as “apps," can help
companies improve communication with consumers. Using several types of information
technology communication methods allow companies to saturate the economic market with their
message. Companies may also receive more consumer feedback through these electronic
communication methods. These methods also allow companies to reach consumers through
mobile devices in a real-time format.
Small businesses can increase their employees' productivity through the use of technology.
Computer programs and business software usually allow employees to process more information
than manual methods. Business owners can also implement business technology to reduce the
amount of human labor in business functions. This allows small businesses to avoid paying labor
costs along with employee benefits. Business owners may also choose to expand operations
using technology rather than employees if the technology will provide better production output.
Technology allows small businesses to reach new economic markets. Rather than just
selling consumer goods or services in the local market, small businesses can reach regional,
national and international markets. Retail websites are the most common way small businesses
sell products in several different economic markets. Websites represent a low-cost option that
consumers can access 24/7 when needing to purchase goods or services. Small business owners
can also use Internet advertising to reach new markets and customers through carefully placed
web banners or ads.
Business technology allows companies to outsource business function to other businesses
in the national and international business environment. Outsourcing can help company’s lower
costs and focus on completing the business function they do best. Technical support and
customer service are two common function companies outsource. Small business owners may
consider outsourcing function if they do not have the proper facilities or available manpower.
Technology allows businesses to outsource function to the cheapest possible, including foreign
countries.

ACTIVITY 2: SWOT ANALYSIS

 STRENGTH
- Unique variety sets of cupcakes flavor
- Reasonable prices
- Bringing healthy cupcakes
 WEAKNESSES
- We are new in cupcakes industry and we don’t have enough budget to compete
with well known
- Failures in making a healthy cupcakes flavor
- Resources needed
- Lack of experience in handling a business
 OPPORTUNITIES
- Gain profit to innovate our cupcakes product
- New cupcake business in the market
- High quality products with reasonable prices
 THREATS
- There’s other cupcake business that already existed that may compete our
business
- Failures in doing cupcakes
- Experience of competitors in the market