ELEVATE COFFEE SHOP

RISE ABOVE THE GRIND

Lim Street, Digos City, Davao del Sur, Philippines

A Paper Presented as a Final Requirement in

1340 – Sustainability and Strategic Audit

Prepared by:

Group - CCJS

Cabansil, Icelle, M.

Candia, Joyce

Jumao-as, Jeanny Rose

Sarabillo, Cherry Mae

Presented to:

Prof. Rosiela Alberca, CPA, MBA

Subject Professor
I. CURRENT SITUATION

BACKGROUND

Elevate Cafe is a small, independent coffee shop located in Digos City, Philippines.
Established in 2024, the business was founded on a passion for specialty coffee and
creating a cozy, community-centered space for students, professionals, and coffee
lovers alike. We offer a curated selection of espresso-based drinks, pour-overs, cold
brews, and locally sourced pastries. The shop core competencies is it has specialty in
coffee expertise, personalized customer service, an aesthetic ambiance and strong
social media presence. However the Elevate Coffee shop need to elevate their service
in terms of providing sufficient seating capacity to their customers and improve their
market in the competition from chain coffee shop and new entrants.

Current Business Performance Metrics Sales: Average daily sales of ₱8,500,

monthly gross revenue of approximately ₱255,000. Market Share: Estimated at 8% of
the local coffee shop market in Digos City. Profitability: 22% net profit margin after
operational costs.

MISSION
To serve high-quality, ethically sourced coffee while fostering a warm, inclusive
community space for people to connect, work, and relax.

VISION

To become the go-to local coffee destination in Digos City and expand into neighboring
cities within five years.
STRATEGIC OBJECTIVES

Increase daily customer foot traffic by 20% in the next year. Launch a coffee bean retail
line by 2026. Build partnerships with local farmers for direct trade. Open a second
branch within three years.

CURRENT POLICIES

Ethical Behavior and Compliance Ensures compliance with local business permits, food
safety regulations, and labor standards. Implements fair wage practices and zero
tolerance for discrimination. Uses ethically sourced, traceable coffee beans.

II. Corporate Governance

Board of Directors and Top Management Since Elevate Café is a Sole

Proprietorship

Owner/Manager: John Mycho B. Hernan is a college student and the owner, head of
the business development and operations of Elevate Coffee Shop. He oversees the
strategic planning, supplier relations, staff management and financial control.

Consultants: Occasional freelance financial and marketing advisors

Baristas: They are trained to have a good communication skills that can make the
customers comfortable also a well as be well-mannered talent in preparing the
beverages.

Marketing Consultant (part-time): Social media, promotions, and event coordination

III EXTERNAL ENVIRONMENT

Major Forces Affecting the Business

Economic: Inflation affecting raw material prices and consumer spending.

Political: Local regulations on food safety, permits, and labor laws.

Technological: Growth of delivery apps and online payment systems.

Social: Rising coffee culture among Gen Z and Millennials. Legal: Compliance with
food safety regulations and tax ordinances.

Main Competitors and Their Strategies Chain Coffee Shops: Standardized

premium service, brand recognition, loyalty programs.

Other Local Cafés: Focus on niche market appeal, themed interiors, unique menu
offerings.

Opportunities and Threats

Opportunities: Growing local café culture, online ordering/delivery expansion,

partnerships with local artisans.

Threats: Economic instability, increasing competition, fluctuating raw material costs.

EXTERNAL FACTORS ANALYSIS SUMMARY (EFAS)

EXTERNAL WEIGHT RATING WEIGHTED COMMENTS
FACTORS SCORE
Inflation affecting raw 0.10 2 0.20 A threat that could
material prices reduce profit
margins
Growth of deliver apps 0.10 4 0.40 Opportunity for
and online payments reaching more
customers
Rising coffee culture 0.15 4 0.60 Expanding market
(Gen Z, Millennial) segment
Local food safety and 0.10 3 0.30 Moderate threat,
labor regulations needs compliance
Increasing competition 0.15 2 0.30 Strong threat,
from chains and locals need strategic
differentiation
Economic instability 0.10 2 0.20 Threat to
consumer
spending
Online Ordering and 0.10 4 0.40 Potential growth
delivery expansion channel
Partnerships and local 0.10 4 0.40 Strategic
artists and farmers partnership
opportunity
Total 1.00 2.80

IV INTERNAL ENVIRONMENT
Strengths

 Operations: Efficient workflow, high-quality product; but limited seating and

production capacity.
 Marketing: Strong social media engagement; but lacks large-scale
promotions. Finance: Positive cash flow and profitability; but limited capital for
expansion.
 HR: Motivated small team; but limited in-house training programs
 Research and Development: Experimenting with seasonal drinks and
pastries; no formal product development system.
 Internal Processes and Resources Streamlined inventory and supplier
management.
 Efficient daily operations and customer service protocols.

Weaknesses

 Limited data analytics on customer preferences.

 Alignment with Strategic Goals Employees are motivated and understand the
mission.

 Systems in place support daily operations but need upgrades for scalability.

INTERNAL FACTORS ANALYSIS SUMMARY (IFAS)

INTERNAL WEIGHT RATING WEIGHTED COMMENTS
FACTORS SCORE
High-quality coffee and 0.15 4 0.60 Major strength
consistent product supporting brand
differentiation
Strong social media 0.10 4 0.40 Attracts younger
presence audience
Positive cash flow and 0.10 3 0.30 Financial stability,
profitability but limited for
expansion
Motivated small team 0.10 3 0.30 Engaged
workforce
Efficient operations 0.10 4 0.40 Smooth daily
and inventory system workflow
Limited seating and 0.10 2 0.20 Hinders sales
production capacity during peak hour
No formal R&D system 0.10 2 0.20 Lacks structured
innovation process
Limited promotional 0.10 2 0.20 Reduces brand
activities visibility
Limited capital for 0.10 2 0.20 Constraints growth
expansion
Lack of customer 0.05 2 0.10 Hinders data-
preference analytics driven decision
Total 1.00 2.90

V. ANALYSIS OF STRATEGIC FACTORS

 Elevate Cafe pratices and implemented critical success factors consistent
product quality, strong customer relationships, effective social media presence
and unique, comfortable ambiance.

 Existing Strategy Focus differentiation strategy: offering high-quality, specialty

coffee and a personalized café experience distinct from mass-market chains.

 Gaps Between Current Capabilities and Strategic Goals Gap in Financial

Resources: Limited funds for branch expansion and equipment upgrades.
Limited resources for branch openings and machinery upgrades can be cause by
the natural capital limitations of being a single owner company. Contrary to
corporations or partnerships, a sole proprietor usually has only personal savings
or company revenues to bankroll operations, preventing the building up of the
resources required for the major investemts. Profits can be small and mainly
directed to meet everyday expenditures, pay debts, or sustain the livelihood of
the owner, with little left or investement.

 Gap in Market Reach: Heavy reliance on physical store sales and limited delivery
channels.

 Gap in Capacity: Seating limitations hinder peak-time sales.

VI. Alternatives and Recommendations

Using the SWOT Matrix, a matching tool for internal strengths/weaknesses and
external opportunities/threats.

Alternatives
1. SO Strategies (Using Strengths to maximize Opportunities)
 Develop an online ordering system and partner with delivery platforms like
FoodPanda or GrabFood to extend reach.
 Leverage a strong social media presence to promote new seasonal drinks
and events in collaboration with the local artisans and farmers.
 Introduce retail coffee products like beans and drip kits, using brand trust
and high-quality offerings.
2. ST Strategies (Using Strengths to Minimize Threats)
 Differentiate more strongly by highlighting ethical sourcing and local
partnerships against chain competition.
 Maintain quality and ambiance to justify premium pricing even amidst
inflation
 Host community-focused events like acoustic sets to deepen loyalty and
offset chain branding advantages.
3. WO Strategies (Minimize Weaknesses by Seizing Opportunities)
 Create a basic customer data tracking system to monitor purchase
behaviour and feedback.
 Invest in a formal R&D process to develop signature products that attract
media attention.
 Launch crowd-sourced funding or loyalty-based membership cards to
build capital extension.
4. WT Strategies (Minimize Weaknesses and Avoid Threats)
 Partner with local universities to offer internship opportunities in marketing
and analytics to address skills and resource shortages.
 Enhance financial management via part-time professional accounting
support to better withstand economic instability.
 Scale slowly by optimizing the current seating layout and exploring
outdoor and vertical space use rather than immediate expansion.
Recommendations

Based on Elevate Café’s internal and external assessment.

1. Short term (0-12 months)

 Expand seating capacity through layout redesign or an outdoor seating
permit.
 Join delivery platforms and optimize for online orders.
 Initiate customer preference surveys and simple CRM tracking, like loyalty
cards or Google Forms.
 Start a barista training program for service consistency.
2. Mid-term (12-24 months)
 Formalize a product development team for seasonal and trending drinks.
 Create collaborative pop-up events with local artists and farmers.
 Launch a limited retail line like packaging beans, mugs, or stickers.
 Use digital ads to scale promotions affordably via social media channels.
3. Long-term (2-5 years)
 Expand to a second branch, ideally in a nearby high-footfall area.
 Form direct trade agreements with local farms to cut costs and increase
brand uniqueness.
 Establish a brand story through content marketing, promoting its journey,
ethics, and community mission.

VII. IMPLEMENTATION

RESOURCES
GOALS ACTIONS KPIs
REQUIRED

Short-Term
Goals (12-24
months)
Expand Seating Conduct a space Budget: ₱15,000; Increase peak-
audit, adjust layout Personnel: Owner hour seating
Capacity
using available and staff capacity by 30%,
resources, explore collaboration. improve ambiance
low-cost DIY furniture satisfaction
options. scores.

Join Delivery Partner with Budget: ₱7,500; Achieve 10%

Platforms FoodPanda/GrabFood Personnel: Owner monthly revenue
, design delivery- and staff training from deliveries,
friendly menu, train sessions. maintain 4.5+
staff, implement online rating on
payments. platforms.

Customer Distribute simple Budget: ₱2,000; 25% loyalty

Preference loyalty cards, use free Personnel: Owner- program
Tracking tools like Google managed, enrollment,
Forms for surveys, occasional input actionable
analyze trends from staff. feedback from 50+
manually. participants
monthly.

Barista Training Develop a basic Budget: ₱5,000; All baristas trained

Program training curriculum, Personnel: Owner- within six months,
hold in-house led, peer-to-peer consistent service
workshops, share training. scores of 90% or
online free resources. higher.

Long-Term Goals
(12-24 months)

Formalize Product Create an informal Budget: ₱10,000; Launch three

Development R&D group, test new Personnel: seasonal drinks,
offerings using Existing staff with increase repeat
customer feedback additional time for customer rate by
from surveys and R&D tasks. 10%.
loyalty data.

Collaborative Partner with local Budget: ₱7,500; Host four events,

Events artists/farmers, use Personnel: Owner- and increase foot
existing space led with part-time traffic by 15% on
creatively for events, event event days.
and promote via social coordination.
media.
Retail Product Develop small-scale Budget: ₱15,000; Achieve ₱25,000
Line Launch branded items (beans, Personnel: Owner monthly retail
mugs, stickers), start and small sales, collaborate
with pre-orders to suppliers. with one artisan.
reduce inventory.

Digital Advertising Focus on organic Budget: ₱10,000; Increase social

growth, run small- Personnel: Owner media following by
budget targeted social and a part-time 20%, boost
media campaigns, consultant. engagement rates
collaborate with micro- by 15%.
influencers.

Long-Term Goals
(2–5 years)

Branch Expansion Identify cost-efficient Budget: ₱300,000; Open a second

locations, secure Personnel: Owner branch in three
funding via small and contracted years, achieve
business loans or project manager. profitability in 18
partnerships, train months.
staff.

Direct Trade Build direct farmer Budget: ₱30,000; Partner with one
Agreements relationships, start Personnel: Owner- farm, reduce raw
small with bulk managed, local material costs by
purchase deals, trade consultants. 5%.
emphasize ethical
marketing.

Content Marketing Produce Budget: ₱10,000; Publish 15 pieces

Strategy blogs/videos/social Personnel: of content
media posts, highlight Content writer, annually, increase
ethical sourcing and videographer. website traffic by
community 30%.
involvement.

VIII. EVALUATION AND CONTROL

To assess the effectiveness of Elevate Café’s strategic initiatives, ensure alignment with
objectives, and provide corrective mechanisms for continuous improvement and
competitiveness.

Evaluation Tools and Techniques

1. Sales and Financial Reports

o Monthly financial statements to monitor revenue, costs, and profit margins.
2. Customer Feedback Analysis
o Surveys, Google reviews, and loyalty card data analyzed monthly to
assess satisfaction and preferences.
3. Operational Audits
o Seating and workflow audits conducted quarterly to identify inefficiencies
and improvements.
4. Staff Performance Reviews
o Bi-annual assessments based on service quality, customer reviews, and
internal feedback.
5. Marketing Analytics
o Social media and website performance tracked through platform analytics
and KPIs.

Control Mechanisms

 Regular Review Meetings

o Monthly check-ins with staff to evaluate KPIs, address bottlenecks, and
plan improvements.
 Corrective Action Plans
o If any KPI falls below 80% of the target for two consecutive periods, an
action plan must be developed and implemented within 30 days.
 Budget Monitoring
o Expenses reviewed monthly to ensure adherence to the implementation
budget.
 Feedback Loops
o Use customer and staff feedback to refine marketing, service, and
operational strategies.

Effective evaluation and control will enable Elevate Café to stay agile, capitalize on
strengths, respond quickly to threats, and continuously align operations with its mission
to become the leading café in Digos City.