HOLY ANGEL UNIVERSITY

SCHOOL OF BUSINESS AND

ACCOUNTANCY

In Partial Fulfillment of the Requirement of the

Course STRATEGIC BUSINESS ANALYSIS

Presented to:

Mr. Darriel Balajadia Mendoza

Presented by:

Bituin, Joshua Raphael

Guese, Hannah Celine

Guevarra, Karen Joy

Guintu, Jonalyn Mae

Manlapaz, Theresa Dinelle

Yutuc, Raljon

Date Submitted:

October 13, 2022

1|Page
 Table of Contents

I. INTRODUCTION

A. COMPANY BACKGROUND………………………………….….……. 3

B. MISSION AND VISION………………………………………....……… 3

C. CORE VALUES…………………………………….……… 3

D. GOALS AND OBJECTIVES……………………………….. 4

II. EXTERNAL ANALYSIS ………………………………………………….......... 5-6

III.INTERNAL ANALYSIS PRACTICES OF AN ORGANIZATION

A. CORE AND DISTINCTIVE COMPETENCE ANALYSIS

FRAMEWORK……………………………………….……………………… 7-9

B. EVALUATING THE CULTURE OF A FIRM………………….….…….. 10-11

C. FINANCIAL ANALYSIS…………………………………….………....... 12-14

D. ANALYSIS OF CORE STRATEGIC ASSUMPTIONS……….………… 15-17

IV. GENERIC BUSINESS ANALYSIS APPROACHES AND TOOLS…………….. 18-20

2|Page
 I. INTRODUCTION

Company Background

Established in 2015 concentrating on air conditioning only, Jocarl’s Aircon Cleaning

Services has gradually grown to be a preeminent supplier, designer, installer, servicer, and
repairer of Air-conditioning systems. The company is committed to quality service and best
practice work methods. We have undertaken numerous steps to ensure that we provide what
is expected by our clients.

Mission

Aim to exceed our client’s expectations through service, communication, and quality
workmanship.

Vision

To provide our clients ultimate comfort through creating and maintaining the ideal indoor
living environment during any season.

Core Values

 Fairness
 Honesty
 Cooperation
 Teamwork
 Gratitude

3|Page
Goals

 Listen to our customers and exceed their expectations.

 Listen to the people who do the work.
 Always be professional, courteous, understanding, eager, and enthusiastic.

II. EXTERNAL ANALYSIS

4|Page
(THREATS)

1. Unpredictable Trends- Since an air cooler is cheaper, and easier to install and
operate, some people prefer it more than an air conditioner. Especially during the
pandemic, many people tend to save money, so they prefer cheap air coolers over air
conditioners.

2. Competitors – Some of the competitors of Jocarl’s Aircon Cleaning Services around

City of San Fernando are Coldzone Airconditioning, Matrix Airconditioning, and
Tosot Airconditioning Solutions.

3. Changes in Regulations- During the pandemic, it is advisable to open the windows

for better ventilation rather than using air conditioners to prevent the virus from
being trapped and because of that, the sales of air conditioning services definitely
decreased.

4. Pricing- A rise in input costs may result in higher prices. Now that the prices of
various products and raw materials are increasing, the price of air conditioning
services will increase as well.

(OPPORTUNITIES)

5|Page
1. Target Market- During the pandemic, all of the people are just in their homes, so
basically more people will buy, clean, supply, install, service, and repair air
conditioners because it is really hot to stay at home 24/7 since it is on lockdown
during that time. Expanding the target market for air conditioners.

2. Competitors- Competitors are usually considered as threats but may also be

considered as opportunities by showing honesty, respect, generating trust, and a
sense of responsibility and especially by providing or showing unique qualities to
your clients so that they will become your regular customers.

3. Providing the increasing needs of people- As the population grows, the need of the
people is increasing.

III. INTERNAL ANALYSIS PRACTICES OF AN ORGANIZATION

6|Page
A.CORE AND DISTINCTIVE COMPETENCE ANALYSIS FRAMEWORK

Competences Customer Uniqueness Leveragability Industry

Description Value Description Description KSFs
Description
Affordability – Customers can Its Jocarl can Offering
Jocarl’s units and take competitors’ utilize this cheaper price
services offered advantage of prices are competency often leads to
C are way cheaper the prices way higher as of theirs as a higher
than those of its offered by they are more volume of
competitors. Jocarl. adding up too customers customers.
O much will be
overhead cost interested in
R over the the prices
original prices offered.
of the units.
E Expertise and Customers can Some Being known Most pioneers
efficiency – feel safe about competitors, in the whole in a certain
Jocarl’s services their especially City of San industry often
offered are fast investments. those who are Fernando as lead in terms
and error-free. just starting one of the of sales,
up in the most reliable customer
industry often businesses to volume and
don’t know offer such overall
their work service, Jocarl success.
very well. can
monopolize
the market
and get a
higher volume
of customers.
Guaranteed Customers Most Jocarl can Starting in
workmanship – will feel better competitors leverage this this industry
Jocarl does not buying from offer the same unique is not as easy
only offer a Jocarl rather service but distinctive as it looks,
standard service than its being in the competency having the
to its customer, competitors, industry for a in terms of capital to start
but it also offers especially long time, expanding its it is not also
an error-free, those who are Jocarl surely business in enough.
effective, and just starting up has the name other Workmanship
efficient way of and are surely over the locations and and
installation and inexperienced province of using the experience
maintenance. in the Pampanga as customer’s are the key
industry. one of the feedback as factors in
best in the its guarantee. order to
industry. succeed.

7|Page
 Apple didn’t
just pioneer
the
technologies
it offered but
it also
showed its
reliability
through
workmanship.
Amount of service Customers Some Jocarl can A lot of
provided in one don’t have to competitors penetrate the companies
D sale – Jocarl does think about such as market and utilize this
I not only offer air who will Appliances draw more kind of
S conditioning install, Stores or Big customers offering and
T units, it also offers
maintain, or Malls just towards it by ultimately
I installation, where to buy offer the units offering such succeeded by
N maintenance, and the materials and nothing amount of doing so.
C materials. needed as more. goods and
T Jocarl already services.
I has it all.
V Extended Customers Other Jocarl can Extended
E warranty of will be more businesses, draw more warranty is
products offered – attracted to particularly in attention to its known to be
A lot of air this offering the industry customers and an eye-
conditioning units as they can Jocarl is in, be well- catcher to
have a year to 2 feel safer offer the same known in the customers.
years warranty but about their warranty as market it’s in
Jocarl has a investment. the units they by offering
special offering in offered and such a
terms of warranty don’t offer warranty.
as it also offers further
aftersales service services to
and maintenance. their
customers.
Availability of air Customers A lot of its This wide Businesses
conditioning units will have a competitors variety of offering a
– It offers a wide wide variety offer only choices can wide variety
variety of brands of choices, brands that draw more of choices
which customers this is in terms are usually customers often succeed
can choose from. of models, available in looking for in taking a
brands, and the market. different big part of the
types of air models, market.
conditioning brands, and
units. types of air
conditioning

8|Page
 units.
Conclusion: Jocarl is a strong and competitive business in the province of Pampanga,
through these competences, it can surely flourish more in the industry it’s in.

B. EVALUATING THE CULTURE OF A FIRM

Organization culture as a source of competitive advantage

Potential source of value
Describe how the culture of the
organization creates economic value
through high sales, low cost, high margins,
Description of culture practices and
results
Jocarl’s Aircon Cleaning Services has
established a reputation for quality that has
gained them the respect of customers. By

9|Page
or other ways in which financial value is
created
Describe how the culture of the
organization is valuable and rare. This
includes attributes and characteristics
associated with the culture that rivals do not customer service and satisfy the increasing
have.
Describe how the culture of the
organization is imperfectly imitable
describe how the culture of the organization
is imperfectly imitable.
supplying high-quality products and
services, the company intended to provide a
positive customer experience. They
continuously strive to satisfy customers’
needs and expectations through innovative
products and services. The company also
focuses on addressing customer issues and
gathering suggestions that need
improvement by responding to questions
and complaints and providing information
to customers.
Despite new competitors and challenges in
the business, Jocarl’s Aircon Cleaning
Services was able to provide exceptional
expectations of customers by delivering
excellent services, quality products,
upfront, and honest employees, and a
hygienic environment. Jocarl’s Aircon
Cleaning Services offers a full range of
services, something that some of its
competitors do not. Jocarl’s Aircon
Cleaning Services is constantly striving to
come up with new ways to transform its
services into something unique in order to
attract and meet its consumers'
expectations.
Jocarl’s Aircon Cleaning Services is
imperfectly imitable because it created a
strong brand name, stable brand image, and
fast recognition. The branch is located in
10 | P a g e
 Mexico, Pampanga, making it convenient
and accessible to consumers.
Conclusions:
Through its initiatives to improve its strategic portfolio, Jocarl’s Aircon Cleaning Services
has built a trusted service. Its culture was important to its success. They make sales by
offering air-condition and aircon cleaning service that cater to the needs of their
customers. To ensure that the customer experience is consistent, they also invest a lot of
effort and energy training their employees. During times of change, Jocarl’s Aircon
Cleaning Services walked alongside its customers and listened to their concerns. Jocarl’s
Aircon Cleaning will continue to provide good quality products and services.

C. Use the key questions to develop insights and conclusions about the future financial
health of the firm you are analyzing. based on past financial performance trends. If
possible, reflect at least three-year performance track record. Key questions to answer
are:

Can the organization fund future growth aspirations?

Jocarl's Aircon Cleaning Services can fund its future growth aspirations. Planning is
essential to every business success. Every successful company periodically examines its
business strategy to make sure it still satisfies its requirements. It makes sense to regularly
assess present performance and determine the most likely growth options. Through the years

11 | P a g e
of operation, the cleaning services achieve its target in order to continue running the
business. The operator assured to include the business plan summary of what the business
does and how it started, and, in the direction, they want it to go. It featured a strategy for
enhancing the current sales and operations to accomplish the targeted growth.

Is the financial status of the firm a resource weakness or resource strength?

Jocarl's Aircon Cleaning Services financial situation is undeniably a resource strength. Their
reported net income is was consistent. Jocarl's Aircon Cleaning Services used the fact that
many people are still remaining indoors to their advantage by emphasizing superior
performance in-home service in order to resolve their problems. Additionally, despite the
pandemic, the company's efforts have increased its income. The company provided services
that will surely satisfy its customers’ needs. The company also reached its target to keep the
company running and sustain itself in the industry.

Is the cash flow from operations sufficient to sustain the business?

The cash flow from operations of Jocarl's Aircon Cleaning Services is sufficient to sustain
the business. The company received enough revenue to cover its operational costs or
obligations. For a company to remain financially viable over the long term, there are more
operating cash inflows than cash outflows. Cash can be an objective measure of a
company’s financial data. Hence, it is important to analyze how much of Jocarl's Aircon
Cleaning Services net income and revenues can be credited to cash as this will indicate the
quality of their earnings.

TABLES FOR HORIZONTAL ANALYSIS AND FINANCIAL RATIOS (2020-2022) Note:

The figures and values in these tables are based on information provided by the company's
manager, which is simply an estimate based on their annual reports.

Year 2022 2021 2020

Estimated Sales 2,500,000 1,800,000 900,000

12 | P a g e
Year 2022 2021 2020
Estimated Revenue 1,890,000 1,305,000 650,000

Year 2022 2021 2020

Estimated Expenses 990,000 750,000 300,000

Gross Profit Ratio 2022 2021 2020

Net Income 2,780,000 1,950,000 980,000
Revenue / 1,890,000 1,305,000 650,000
GPR 1.47% 1.49% 1.51%

Operating Cash 2022 2021 2020

Flow Ratio
Operating Cash 2,100,000 1,700,000 950,000
Flow
Current Liabilities / 1,030,000 530,000 470,000
OCFR 2.04% 3.21% 2.02%

13 | P a g e
D. Analysis of Core Strategic Assumption

Risk analysis: Strategic Assumptions

Key strategic Assumption Assumption Conclusion on

choices risk Positive Negative strategic risks
assumptions

Venture and This will benefit Compromised Jumping on

develop new Jocarl's Aircon quality. A reduction emerging market
markets Cleaning Services in quality brought trends can be
by giving them a on by increased dangerous,
competitive edge production output particularly if it has
and possibly may result in a loss not been carefully

14 | P a g e
 generating of clients or researched. The
additional revenue. revenues. business should take
Additionally, the price of new
offering new goods facilities and
can help Jocarl's equipment into
Aircon Cleaning account before
Services draw in entering new
new clients. markets. However,
if the business is
empathetic enough
to maintain the
caliber of its current
items while
introducing new
ones, this will help
them be more
lucrative and they'll
be able to draw in
more clients.
Venture on modern Interacting with a Encountering Going back to using
technology public larger audience and unfavorable client the several social
relations service for raising customer complaints or networking channels
delivery. satisfaction. feedback that could for distribution and
lead to negative promotion items can
publicity and a improve the
negative brand financial flow for
image. the business.
Location of Jocarl’s Greater market and Additional rivals, A larger area pulls
Aircon Cleaning produces more may run at a high in a greater number
Services is opportunities. price then sale at a of competitors.
consciously discount cost. There’s a potential

15 | P a g e
positioned to serve risk to your market.
the tremendous If you own a large
demands regions in number of rivals,
the surrounding particularly if low
communities. demand exists for a
product.
Additionally, it
spurs a company to
sell for a bargain.
On the other hand,
however, the
business will be the
competition that will
draw more clients,
as well as establish
fostering brand
loyalty by providing
superior products
and services.

16 | P a g e
IV.GENERIC BUSINESS ANALYSIS APPROACHES AND TOOLS

STEP 1: CONFIRM THE OPPORTUNITY

Jocarl’s Aircon Cleaning Services established in 2015 concentrating on air conditioning

only, and it has gradually grown to be a preeminent supplier, designer, installer, servicer,
and repairer of Air-conditioning systems. The company is committed to quality service and
best practice work methods. We have undertaken numerous steps to ensure that we provide
what is expected by our clients. The company is known for being customer-focused, creating
high-quality services that satisfy consumers' expectations.

Jocarl’s Aircon Cleaning Services is putting in place strict health and safety safeguards to
ensure that their customers are safe when they visit their locations now that we are during
the pandemic. To ensure their safety, customers and employees must maintain physical
distance inside the location. On a regular basis, all surfaces are also cleaned. Services are
being done outside the house or location to keep their distance from the customers to avoid
spreading the virus. One of the opportunities that Jocarl’s Aircon Cleaning Services has now
that we are experiencing the new normal is the demand for its home service offer in general,
given that people are staying at home.

17 | P a g e
Furthermore, throughout the pandemic, the company focused on making an effective
competitive advantage to gain more customers and profit despite of we are during the
pandemic.

STEP 2: ANALYZE AND DEVELOP SHORTLISTED OPTIONS

Any company needs strategic planning, whether they take a short-term or long-term strategy.
Companies should always enhance their strategic alternatives to stay ahead of the
competition and outperform them, particularly in today's competitive market when customer
tastes and technology are changing quickly.

➢ A customer loyalty program is a marketing strategy that rewards customers who make
regular purchases/services

➢ Offer a home service option for customers to lessen their work.

STEP 3: EVALUATE THE OPTIONS

OPTION 1: A customer loyalty program is a marketing strategy that rewards customers

who make regular purchases and avail of regular services

A customer loyalty program is a business technique that rewards customers who make
repeated purchases. It's a tactic for luring customers to keep making repeat purchases from
you from a business perspective. Although this system may be widespread, loyalty program
complexity is quickly increasing to match the tastes of both current and future audiences,
keep up with the latest fashions, and contend with the fiercer competition.

OPTION 2: Offer a home service option for customers to lessen their work.

Implement a home service option for the customers so that they don’t need to go out just to
get their appliances cleaned. It will be faster and more convenient for them especially all
throughout this pandemic.

18 | P a g e
STEP 4: IMPLEMENTATION OF STRATEGY

Every corporation must take its vision, mission, and values into account while implementing
new marketing techniques. To keep ahead of the competition and offer the best services,
Jocarl's Aircon Cleaning Services should regularly monitor rival loyalty programs and
efforts. A customer loyalty program is a part of a customer retention and marketing strategy
that pays customers who use frequent services in order to implement the selected option. A
well-crafted loyalty program can boost sales and enhance the brand's image. Customer
service and product development will both be enhanced as a result. You give discounts to
customers who are devoted to your brand. Encourage them to think about your cleaning
services to demonstrate your dedication to them.

STEP 5: RECOMMENDATION

Jocarl’s Aircon Cleaning Services was able to fulfill its goals and objectives. Despite the
Company's performance, certain risks need to be considered in the current context. Most
businesses today, not only those in the Philippines, are progressively failing and filing for
bankruptcy. Therefore, any company must investigate and evaluate risks on both an internal
and external level. To reduce unavoidable uncertainties, a detailed strategic plan should be
created. The creation and application of these strategies in the context of both internal and
external factors will clear the way for the business to position itself to minimize risks and
stumbling blocks.

Customer satisfaction is just one of a company's marketing methods, but it appears that
customers who have once expressed their happiness with a service or product are more
inclined to do so again. In the age of the internet and digital review sites, receiving positive
customer feedback is essential for luring in new customers.

19 | P a g e