DMMA College of Southern Philippines
Title: Supply Chain Management of Divine JM Pasalubong Store
Subject Entity: Divine JM Pasalubong Store
Business Site: Buhangin, Davao City
Divine Grace Lumanog-30008
Shenna Justiniane-33587
Merrycris Tagalog-33518
Anabelle Arlalejo-33545
Nieven Haspe-33574
I. ABOUT THE BUSINESS
Mr/Mrs Roy and Joyce Lumanog
Divine Jm Pasalubong Store
We want to help you to satisfy your cravings and also bring happiness and love to your
love ones you want to surprise with pasalubong threats from Divine JM Bakeshop Store located
at Cabantian, Davao City.
The real owner of Divine JM Pasalubong Store is the mother of Joyce Lumanog. After
they got bdsfdsfaasf the business belongs to them, Here mother transferred the ownership to
Joyce Lumanog. There two (2) child already graduated from the two (2) prestigious school here
in Davao City. Through the help of there small business. There partnership to other suppliers
were able to grow the business and they even made to stand for almost 25 years in the market.
They started the business on the year 1995 till the present they operate Divine JM Pasalubong
store.
Roy and Joyce Lumanog work as a team before in preparing ingredients delivery and
collecting money from those store were there products are in until the time they already hired a
people to do the jobs and little by little they got a car for delivering and machines to help the
production more convenience.
Divine Jm Pasalubong store are one of the suppliers of pasalubong products here in
Davao City such as cookies, otap, hopia, lung-a, patatas and butter cookies.
They’re goal is to help promote the local products to other foreign people travelling in the
Philippines but not just only the foreign people but also the local people travelling in the
Philippines. They provide stock products at the terminals and school canteens and they also have
retailers in their products.
II. Objectives
This paper aims to address the following:
1. Identify the key points or issues.
2. Determine the factor of succession of the business.
3. Proposal of areas of improvement
1. Political Factor
Trends can affect the Divine JM Pasalubong Store, law, increase taxation and
health and safety guidelines.
Taxation policy affects Pasalubong center cost and business profit. Divine JM
pasalubong store can pass some of this tax on the consumers in higher prices, but it will
also affect the bottom line.
Higher labor cost for the employee (higher wage rated and employee benefits)
make workers better off but can reduce company’s profit. Business owner can take
appropriate decision to minimize the impact of such regulation from purchasing profit
and to delivery method.
2. Economical Factor
Increase of production of goods and services, creates more profit to the owner
special September to December because seasons. But consider also the inflation of the
sweet products.
Consumer’s demand change every day for pasalubong store since competitions is
very high the demand of products change.
Great factor of Divine JM Pasalubong Store is they are the one of suppliers here
in Davao City of otap, dice, hopia cookies and butter cookies. They are located in the city
of Davao and very easy to access because the products are being distributed to the
terminals were travelers are.
3. Social Factor
Trends can affect the store. Since more in internet connectivity and application to
order easily in the market. Divine JM Pasalubong Store did not adopt that kind of way.
Even a page to invite more customers they don’t have. They stick to strategy of face to
face selling in the market and partnership between two or more loyal customers (suki).
Today’s world is very conscious about health issues since Divine JM Pasalubong
Store produce sweet products. According American Heart (AHA), the maximum amount
of added sugar you should eat in a day is 150 calories for men per day 37.5 grams or 9
teaspoons for women 100 calories per day 25 grams. But there product is more than 1
sack of sugar for Latik and more sugar to create saw (batat).
Divine JM Pasalubong Store introduced to school canteen and people in the terminals were
people keep coming. If someone will buy a product and he/she definitely like it and that
customer will introduced their friends that will make more customers
4. Technological Factor
Rapid technological advancement and change can impact Divine Jm Pasalubong
store. Divine JM Pasalubong store is located at City of Davao in downtown but they were
never adopted the technology advancement for their small business. The example is the
ability of computer to make a page or link to introduced to promote their products.
Divine JM Pasalubong Store is using machines to increase the production and
save the overtime pay of labor of man power. Saving cost while increasing production.
Since technological factors include internet connectivity I must suggest that the
owner must create facebook page that contain products and indicate the prices to invite
customers less cost in more products to be sell.
5. Legal Factor
The owner product is for everyone. The owner really make sure the products they
deliver is good products. Divine JM Pasalubong Store protect the employee and
customers.
Divine JM Pasalubong Store follow the SRP laws 17 pesos for dice and 20 pesos
for otap.
Laws have been introduced to prevent companies from changing product prices
without informing customers
6. Environmental Factor
Availability of natural resources like flour and sugar when calamities strike the
business all suppliers will be paralyzed and production will stop since uncontrollable
phenomenon.
III. PORTER’S FIVE MODEL FORCES
THREAT OF NEW
ENTRANTS
RIVALRY
BARGAINING AMONG BARGAINING
POWER OF EXISTING POWER OF
SUPPLIERS COMPETITOR BUYERS
S
THREAT OF
SUBSTITUTE
PRODUCTS
Rivalry Among Existing Competitors:
The Divine JM Pasalubong Center has two (2) main competitors namely Sonny Sweet
Bakeshop and Davao Star who are big persons in the industry. In term of manufacturing, they
uses technological machineries as well, met in comparison to their competitors who are above
mentioned, they are outnumbered the machines causing them inconveniency and spending more
time. Furthermore, they are the one who actually markets their products to their customers for
retail.
Bargaining Power of Suppliers:
Their relied suppliers are somehow unavailable, that’s why must look for substitutes to
immediately purchase the supplies they needed. The power of supplier is low.
Threats of New Entrants:
The business must consider some barriers to new entry to differ new competitors such as
brand loyalty where the customers shows a strong preference for their products and/or services,
and cost advantages where the business should easily produce and offer their products at a lower
price than that of new entrants. Furthermore, they should make their brand names well-known.
Bargaining Power of Buyers:
The business should provide higher quality products, better customer service, and/or
lower prices. Make more strategic decisions to improve the profitability of their company.
Threats of Substitute Products:
Substitution of products creates high competition. The greater the number of substitute
products in the market, the more rivalry exist in the business. That’s why, the business should
lessen their substitute products to earn higher profit.
Divine JM Pasalubong Store’s Location
Geographical visualization of Divine JM pasalubong store’s location
Source: Google Maps
The Divine JM Pasalubong Store is located beside the Holy Child College of Davao City.
It is 5-minute walking distance from the target market which are the students, teachers, and
travelers for the store is just at the roadside.
SUPPLY CHAIN MANAGEMENT
As an entrepreneur, it’s best to have a wider knowledge on how to manage well your
business. One of the factors in managing well your business is you must have a warehouse of
safe keeping of the products. In Divine JM Pasalubong Store’s case, they don’t perform
warehousing because they directly deliver their products to their costumer’s for supplying or
display on their store for direct selling after manufacturing. But it is not a disadvantage on their
part. They likely more want no to store more of their products.
A.DISTRIBUTION FLOW
The flow of the producer in distribution their products to reach their customers are as follows:
First, students, teachers, and by-passers will come to the store to purchase the different
products and have their snacks or somehow for pasalubong. Next, customers can spread the good
taste of product on other places and individuals. Then, new customers will become addicted and
they will repeatedly buy by it’s taste. Finally, this will become an advantageous to get and to
have manufacturer or retailer for best marketing.
B.CHOICE OF INTERMEDIARES
• Divine JM Pasalubong Store plays the role of intermediary on its own, manufacturer,
distributor, and retailer on its own.
C.OTHER RELEVANT STRATEGIES
• Divine JM Pasalubong Store is a place wherein the costumers will love to go during
snack time because there are lot of products to choose in accordance to their preferences.
PRODUCT STRATEGIES
PRODUCT LEVELS
a) Core Product - Comfort for everybody.
b) Generic Product – Flavorful; Easy to grab.
c) Expected Product – The products are really affordable; ready to eat.
d) Potential Product - Can put the brand name into the bigger field business.
CLIENTELE
Enhancement of strategies in the business and employ modern practices using the modern
technology in making pastries to the efficiency of making the products or orders to meet and to
serve the customer’s desire.
Demographics: Male and Female, 3 y/o and above, everyone can push the market even the
3years old baby because if that child cries for a reason to buy that piaya-piaya or otap a mother
cannot resist to buy it. These helps a lot push.
Market Profit: The main factor that many will patronize the product is the traveler because the
target market is really the traveler.
Market Potential: The volume in the terminal is above 10,000 but it depends if this month is
season.
The target market are the younger customer whose mostly buy or order pastries, other
teachers that works in school near the store and other people live around the village who’s
usually breads and rolls. The main target of the business is the travelers. They have a good
customer service in order to get the loyalty of the customer. They use modern technology to the
conveniences and their own uniqueness of their ingredients in order to satisfy the customer’s
wants and desires.
PRODUCT AND SERVICES
The reason for its growth is they enhance their productivity through fast production
because of the help of new machines. On time delivery on the market to meet consumers
demand.
Divine JM Pasalubong Store provide flavor that will click to everyone and offer new
product to taste.
Divine JM has its own variety of products and flavored:
• OTAP – 3 VARIETY (Divine Otap, Special Otap and Durian Otap)
• COOKIES – 4 VARIETY (Lunga, Patatas, Butter Cookies and Sampaguita)
• DICE – 2 VARIETY (Ube and Monggo)
• HOPIA – 1 VARIETY (Ube and Monggo)
The main goal is to satisfy the cravings of the customers and bring happiness and love to
your loved ones you want to surprise with pasalubong treats. In addition is to beat Sonny sweet
and Davao Star which are their main competitors.
SUCCES FACTORS/IMPEDIMENTS O SUCCESS
1. Locally well-known product brand name as it is home-grown business
The business starts in year 1993 and still in the track of year 2019, they start in small
business own by his mother in a very small capital.
2. Customer loyalty or retention from its market segment
The costumer gain trust of this business because of its lowest cost and availability in the
market as its compares to their main competitors which is more pricey Sonny Sweet’s otap cost
25 pesos and Davao Star’s otap cost. Divine JM pasalubong’s otap cost 20 pesos the cheaper
among the three (3) store. This helps the business maintain a high profit as consumer prefer a
cheaper price.
3. Strategic location
Divine JM Pasalubong Store is located beside the Holy school of Davao College which is
advantage to track easily as it is near roadside. So the costumer won’t need to go far to have their
best snack.
4. Managed by leaders who consider the holistic development
The business was managed by a married couple who are graduates of accountancy in Ateneo
de Davao University and a graduate of agriculture. They are both member of Couple for Christ.
The business was inherited from their parents. The owners are not just focused on making
profitable business but also making and giving employment to their employees.
5. Defined Target Market
Since the business is about pasalubong products, it’s main target are the travellers and the
students and teachers of Holy Child School of Davao City since the store is located beside it.
6. Affordable Pricing
Divine JM Pasalubong Store is affordable pricing.
7. Product Variations
This product offers different flavour and packaging.
Moreover, the SWOT analysis will explain more the success factors and key issue for
DIVINE JM PASALUBONG STORE.
SWOT ANALYSIS
This part of the paper represent the SWOT (Strengths, Weaknesses, Opportunities,
Threats) Analysis of the business which helps the management to identify the internal and
external considerations that can be a strong basis for the potential strategies to grow the business.
PRODUCTION VARIATION
PRODUCTS ARE PERISHABLE
STRENGTH
STABLE LOCATION WEAKNESESS
ITEMS
EVERYDAY SELLING
NO BUSINESS WEBSITE
EXPERIENCED STAFF
COMPETITORS PRESSURE
QUALITY INGREDIENTS
HUMAN CAPITAL
PRODUCTS ARE AT ITS LOWEST
DOESN’T PERORM
COST
WAREHOUSING
ABLE TO ACCOMMODATE
THE COMPANY HAS A
CUSTMER REQUEST
WEAKNESS AGAINTS FUTURE
IT IS ALSO AN
COMPETITORS AND THEIR
EXPERIENCEDBUSINESS
UNIT,CONSIDERING
THEY HAVE BEEN IN THE
SWOT
FUTURE PROFIT.
BUSINESS IN 21 YEARS. ANALYSIS
OPPORTUNI
THREAT
TY CUSTOMERS LOYALTY
ALREADY ESTABLISHED
EXPANSION OF THE PRODUCT
BAKERIES IN THE AREA
LINE
LOW PRICE OF
POSSIBLE TECHNOLOGY
COMPETITORS
UPDATE
GOVERNMENT
EXPANSION OF THE PRODUCT
REGULATIONS AND
RANGE
INCREASE LABOR COST
AND INTEREST RATE
DMMA College of Southern Philippines
Title: EXAMPLE OF ACTOR ANALYSIS MATRIX & INFLUENCE AND IMPORTANCE
MATRIX
Subject Entity: Divine JM Pasalubong Store
Business Site: Buhangin, Davao City
Divine Grace Lumanog-30008
Shenna Justiniane-33587
Merrycris Tagalog-33518
Anabelle Arlalejo-33545
Nieven Haspe-33574
