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 servisce, 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 fiancial 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 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.

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

R&D: Experimenting with seasonal drinks and pastries; no formal product development system.

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.

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 personalize
cafe’ 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.

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

INTERNAL FACTORSANALYSIS 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