Key External Factors Weight Rating Weighted Score

Opportunities
1. Growing Health Consciousness 0.1 4 0.4
2. E-commerce Expansion 0.08 3 0.24
3. Rising Disposable Income 0.09 4 0.36
4. Tourism Growth 0.07 4 0.28
5. Product Innovation 0.1 4 0.4
6. Expansion into Untapped Markets 0.08 3 0.24
7. Corporate Catering Services 0.06 3 0.18
8. Franchise Opportunities 0.08 1 0.32
9. Health and Wellness Partnerships 0.07 4 0.28
10. Digital Marketing Investment 0.08 3 0.24
Threats
1. Economic Downturns 0.09 2 0.18
2. Health Regulations 0.08 3 0.24
3. Competition 0.1 3 0.3
4. Rising Ingredient Costs 0.07 3 0.21
5. Supply Chain Disruptions 0.07 2 0.14
6. Changing Consumer Preferences 0.08 3 0.24
7. Labor Shortages 0.06 2 0.12
8. Rising Rent and Operating Costs 0.07 3 0.21
9. Currency Fluctuations 0.06 2 0.12
10. Pandemics and Health Crises 0.08 2 0.16
Total 1 3.13

Interpretation:

The total weighted score is 3.13, which falls within a range of 1 to 4.

A score above 2.5 indicates that the organization is effectively responding to external opportunities and threats.

Overall, BreadTalk Philippines seems to be effectively leveraging its opportunities while addressing its threats to a r
opportunities and threats.

ile addressing its threats to a reasonable extent. However, there are areas such as economic downturns, supply chain disruptions, and pande
ly chain disruptions, and pandemics that require proactive strategies to mitigate risks and enhance resilience.
Opportunities
Growing Health Consciousness: Increasing demand for
healthier bakery products presents an opportunity for
BreadTalk Philippines to expand its portfolio with more
nutritious options.

Rising Disposable Income: As disposable income levels

increase, there's potential for BreadTalk Philippines to capture
higher consumer spending on premium bakery products.

E-commerce Expansion: Leveraging the growing trend of e-

commerce, BreadTalk Philippines can expand its online
presence and reach a wider customer base beyond its physical
locations.

Tourism Growth: With the Philippines being a popular tourist

destination, BreadTalk can capitalize on the influx of tourists
by strategically locating outlets in key tourist areas.

Product Innovation: Continuously innovating and introducing

new, unique bakery offerings can attract customers and
differentiate BreadTalk from competitors.

Partnerships with Local Suppliers: Collaborating with local

suppliers for ingredients can enhance BreadTalk's
sustainability efforts and support local communities.

Health and Wellness Partnerships: Forming partnerships with

health and wellness organizations can help BreadTalk promote
its healthier product options and align with consumer
preferences.

Expansion into Untapped Markets: Exploring opportunities to

expand into underserved regions or neighborhoods can unlock
new customer segments and drive growth.

Corporate Catering Services: Offering corporate catering

services can tap into the demand for bakery products in office
settings and events.

Franchise Opportunities: Offering franchise opportunities can

facilitate rapid expansion into new locations with lower capital
investment.
Upscaling Dining Experience: Enhancing the ambiance and
dining experience in BreadTalk outlets can attract customers
seeking a premium bakery experience.

Localized Marketing Campaigns: Tailoring marketing

campaigns to local preferences and cultural nuances can
strengthen BreadTalk's brand resonance in different regions of
the Philippines.

Investment in Digital Marketing: Investing in digital marketing

strategies such as social media advertising and influencer
partnerships can increase brand visibility and engagement.

Customer Loyalty Programs: Implementing customer loyalty

programs can incentivize repeat purchases and foster long-
term relationships with customers.

Strategic Alliances with Hotels and Resorts: Forming

partnerships with hotels and resorts for in-room dining or
retail outlets can expand BreadTalk's presence in high-traffic
tourist areas.

Export Opportunities: Exploring export opportunities to

neighboring countries or regions can diversify BreadTalk's
revenue streams and reduce dependence on the domestic
market.

Diversification into Adjacent Industries: Diversifying into

related industries such as café chains or confectionery can
broaden BreadTalk's product offerings and revenue sources.

Expansion of Breakfast Menu: Expanding the breakfast menu

with quick and convenient options can attract morning
commuters and office workers.

Investment in R&D: Investing in research and development

capabilities can drive product innovation and maintain
BreadTalk's competitive edge in the market.

Cultural Events and Collaborations: Participating in cultural

events or collaborating with local artists can enhance
BreadTalk's brand image and resonate with Filipino
consumers' cultural values.
Threats

Economic Downturns: Economic recessions or downturns can

lead to reduced consumer spending on discretionary items like
bakery products.

Health Regulations: Stringent health and safety regulations

can increase compliance costs and operational challenges for
BreadTalk Philippines.

Competition: Intense competition from local bakeries,

international chains, and supermarkets can erode BreadTalk's
market share and margins.

Rising Ingredient Costs: Fluctuations in ingredient prices,

especially for imported ingredients, can squeeze BreadTalk's
profit margins.

Supply Chain Disruptions: Disruptions in the supply chain due

to natural disasters, geopolitical tensions, or logistics issues
can impact BreadTalk's production and distribution.

Changing Consumer Preferences: Shifts in consumer

preferences towards healthier or alternative food options may
reduce demand for traditional bakery products.

Food Safety Incidents: Food safety incidents or product recalls

can damage BreadTalk's reputation and erode consumer trust.

Labor Shortages: Difficulty in recruiting and retaining skilled

labor can impact BreadTalk's operations and service quality.

Rising Rent and Operating Costs: Increasing rent and operating

costs, particularly in prime locations, can squeeze BreadTalk's
profitability.

Currency Fluctuations: Volatility in foreign exchange rates can

affect the cost of imported ingredients and equipment for
BreadTalk Philippines.
Changing Regulations: Changes in regulations related to food
labeling, advertising, or franchising can create compliance
challenges for BreadTalk.

Pandemics and Health Crises: Pandemics or health crises, like

COVID-19, can disrupt operations, reduce foot traffic, and
impact consumer behavior.

Negative Publicity: Negative publicity or social media backlash

can harm BreadTalk's brand reputation and sales.

Environmental Factors: Environmental factors such as climate

change and natural disasters can disrupt agricultural
production and affect ingredient availability for BreadTalk.

Technological Disruption: Disruptive technologies or online

platforms may change consumer behavior and preferences,
posing a threat to traditional bakery businesses.

Legal Disputes: Legal disputes or litigation, such as intellectual

property disputes or contract disputes, can result in financial
losses and reputation damage for BreadTalk.

Counterfeit Products: Counterfeit or imitation products can

dilute BreadTalk's brand value and undermine consumer trust.

Negative Word-of-Mouth: Negative word-of-mouth or reviews

can deter potential customers and impact BreadTalk's sales
performance.

Cultural Barriers: Cultural differences or misinterpretations in

marketing or product offerings may hinder BreadTalk's
expansion into certain regions or demographic segments.

Technological Infrastructure Issues: Poor technological

infrastructure or connectivity issues can disrupt online sales
and digital marketing efforts for BreadTalk Philippines.
Based on Standard & Poor's Industry Survey and IBIS World data, the bakery industry has been experiencing several
notable trends. These include:

Health Consciousness: Consumers are increasingly prioritizing health and wellness, leading to a demand for healthier
baked goods with reduced sugar, fat, and artificial ingredients.

Product Innovation: Bakeries are responding to changing consumer preferences by innovating with new product
offerings, such as gluten-free, organic, and vegan options, to cater to diverse dietary needs and preferences.

Digitalization: The industry is embracing digital platforms for marketing, sales, and distribution, with online ordering and
delivery services becoming more prevalent. This trend has been accelerated by the COVID-19 pandemic.

Sustainability: There is a growing emphasis on sustainable practices across the industry, including sourcing of ingredients,
packaging materials, and energy-efficient operations, driven by consumer awareness and regulatory pressures.

Competition: The bakery sector faces intense competition, not only from other bakeries but also from supermarkets,
convenience stores, and cafes that offer bakery products as part of their offerings.

Supply Chain Challenges: Fluctuations in commodity prices, transportation costs, and availability of key ingredients can
impact profitability and operational efficiency for bakery businesses.

Regulatory Environment: Compliance with food safety regulations, labeling requirements, and environmental standards
presents ongoing challenges for bakery companies, necessitating continuous adaptation and investment in compliance
measures.

In terms of external trends impacting Breadtalk specifically, it's essential to consider factors such as:

Economic: Economic conditions, including GDP growth, inflation rates, and consumer spending, influence Breadtalk's
sales and profitability.

Social and Cultural: Changing consumer preferences, demographics, and lifestyle trends shape demand for bakery
products and drive innovation in Breadtalk's offerings.

Technological: Advancements in technology impact various aspects of Breadtalk's operations, including production
processes, distribution channels, and customer engagement strategies.

Political and Legal: Changes in regulations related to food safety, labor laws, and trade policies can affect Breadtalk's
compliance requirements and operating costs.

Environmental: Environmental factors such as climate change, natural disasters, and sustainability concerns may impact
ingredient sourcing, production methods, and supply chain resilience for Breadtalk.
Part D Letter C
Opportunities

Threats
Strengths

WO Strategies

ST Strategies
Weaknesses

WO Strategies

WT Strategies
Company Profile Matrix

Competitive Profile Matrix (CPM) for BreadTalk, The French Baker, and Abaca Baking Co.

Key Success Factors Weight BreadTalk The French Baker

Product Quality and Variety 0.1 4 3
Brand Image and Recognition 0.09 4 3
Innovation and New Product Development 0.08 4 3
Market Presence and Coverage 0.08 3 3
Customer Service and Experience 0.08 4 3
Price Competitiveness 0.08 3 3
Distribution and Accessibility 0.07 4 3
Marketing and Advertising 0.07 4 3
Financial Performance and Stability 0.07 3 3
Global Expansion and Presence 0.07 3 2
Customer Loyalty Programs 0.06 4 3
Online Presence and E-commerce 0.06 3 2
Sustainability Initiatives 0.05 3 2
Partnerships and Collaborations 0.05 3 2
Employee Training and Development 0.04 4 3
Total 1
Score 0.588 0.529

Interpretation:

BreadTalk has the highest total score of 0.588, indicating its competitive advantage over The French Baker and Abac
BreadTalk and Abaca Baking Co. both scored equally in terms of total points, showing comparable competitive posi
The French Baker trails slightly behind BreadTalk and Abaca Baking Co. with a total score of 0.529, suggesting area

Overall, BreadTalk appears to have a stronger competitive position compared to its competitors, with strengths in pr
However, all three companies have areas for improvement, such as enhancing innovation, expanding global presence
aca Baking Co.

Abaca Baking Co.

4
3
3
4
3
3
3
3
4
2
3
3
3
3
3

0.588

antage over The French Baker and Abaca Baking Co.

showing comparable competitive positions.
h a total score of 0.529, suggesting areas where it can improve to enhance competitiveness.

to its competitors, with strengths in product quality, brand image, customer service, and distribution.
innovation, expanding global presence, and strengthening sustainability initiatives, to maintain or improve their competitive positions in th
their competitive positions in the bakery industry.
 Chairman & PresidenChairman & President
Regional Administrator
Area manager
OperationsStore Manager Support
Management Trainee
Head Cashiers
Cashier
Production head
Production In Charge
Bakers
Mixer Toppers
Cake Mixers
 Chairman &
President

Regional
Administrator

Area manager

Store
Manager
Production
Management head
Trainee

Head Production In
Cashiers Charge

Mixer Cake Mixers

Cashier Bakers Toppers
&
t

l
tor

Production
head

er Cake Mixers
ers
 Table 8-2 Example Factors That Make Up the SpACE Matrix Axes

Internal Strategic Position

Financial Position (IP)

revenue growth and healthy profit margins

Competitive Position (CP)

Strong Brand Equity

Diverse Product Portfolio
Efficient Supply Chain Management:
Robust Technology Integration

Internal Strategic Position for BreadTalk Philippines:

Financial Strength: BreadTalk Philippines enjoys a stable financial position with consistent revenu
Strong Brand Equity: BreadTalk Philippines has built a strong brand reputation and enjoys high b
Diverse Product Portfolio: BreadTalk Philippines offers a diverse range of bakery products caterin
Efficient Supply Chain Management: BreadTalk Philippines has implemented efficient supply cha
Robust Technology Integration: BreadTalk Philippines has embraced technology in its operation

Moving on to the External Strategic Position for BreadTalk Philippines:

External Strategic Position for BreadTalk Philippines:

Growing Bakery Market: The bakery market in the Philippines is experiencing steady growth, driv
Intense Competition: BreadTalk Philippines faces intense competition from both domestic and in
Evolving Consumer Preferences: Consumer preferences in the Philippines are evolving, with a gr
Regulatory Environment: The bakery industry in the Philippines is subject to various regulations
 Economic Volatility: The Philippine economy is susceptible to fluctuations, including changes in c

Overall, BreadTalk Philippines possesses strong internal capabilities and benefits from favorable e
 Note: The strategies for Space Matrix are
External Strategic Position
Stability Position (IP) Conservative
Growing Bakery Market • Market penetration
• Market development
• Product development
• Related diversification

Defensive
• Retrenchment
• Divestiture
• Liquidation

Industry Position (IP)

Intense Competition
Evolving Consumer Preferences:
Regulatory Environment
Economic Volatility

position with consistent revenue growth and healthy profit margins. The company's strong financial performance pro
d reputation and enjoys high brand recognition among consumers in the Philippines. Its innovative and high-quality
nge of bakery products catering to various tastes and preferences. Its extensive product portfolio includes both tradi
plemented efficient supply chain management practices, ensuring timely sourcing of high-quality ingredients and cos
ed technology in its operations, including production, distribution, and customer engagement. This technological inte

periencing steady growth, driven by increasing consumer demand for convenient and indulgent food options. Bread
ion from both domestic and international bakery chains, as well as local bakeries and cafes. The competitive landscap
ippines are evolving, with a growing demand for healthier and more diverse bakery products. BreadTalk Philippines n
subject to various regulations and standards related to food safety, labeling, and advertising. Compliance with these r
uations, including changes in consumer spending patterns, inflation rates, and currency exchange rates. BreadTalk Ph

and benefits from favorable external market conditions. However, it faces challenges such as intense competition, ev
for Space Matrix are

Aggressive
• Backward, forward, horizontal integration
development • Market penetration
development • Market development
diversification • Product development
• Diversification (related or unrelated)

Competitive
• Backward, forward, horizontal
integration
• Market penetration
• Market development
• Product development

g financial performance provides a solid foundation for future investments and expansion initiatives.
nnovative and high-quality bakery products have garnered a loyal customer base, contributing to sustained revenue
portfolio includes both traditional and innovative offerings, allowing the company to appeal to a broad customer bas
-quality ingredients and cost-effective distribution of products. This enables the company to maintain consistent pro
ment. This technological integration enhances operational efficiency, improves customer experience, and provides val

dulgent food options. BreadTalk Philippines is well-positioned to capitalize on this trend and expand its market share
es. The competitive landscape challenges BreadTalk to continuously innovate, differentiate its offerings, and enhance
ucts. BreadTalk Philippines needs to closely monitor these changing preferences and adapt its product portfolio accor
ng. Compliance with these regulations is essential for BreadTalk Philippines to maintain its reputation and consumer
xchange rates. BreadTalk Philippines must navigate these economic uncertainties and implement flexible strategies to

h as intense competition, evolving consumer preferences, and regulatory compliance requirements. By leveraging its
nitiatives.
ting to sustained revenue growth.
l to a broad customer base and adapt to changing consumer trends.
to maintain consistent product quality and meet customer demand effectively.
perience, and provides valuable insights for strategic decision-making.

d expand its market share through innovative products and strategic marketing initiatives.
its offerings, and enhance its brand value to maintain its market leadership position.
its product portfolio accordingly to stay relevant and competitive in the market.
reputation and consumer trust while ensuring legal compliance.
ement flexible strategies to mitigate risks and capitalize on opportunities.

rements. By leveraging its strengths and addressing these challenges proactively, BreadTalk Philippines can sustain its
k Philippines can sustain its growth and maintain its position as a leading bakery chain in the Philippines.
e Philippines.