External Audit

Economic Forces Table 1. Estimated Population and Density and Additional Population By 2013 and 2027

City/ MunicipalityPop. 2000Pop. 2007APGR 2000-2007Area (Sq. Km.)Density 2007APGR Factor 2007-2013PGR Factor 2000-2013Est. Pop 2013Est. Density2013Add Pop 2007-2013Additional Population 2007-2027

Rizal1,707,2182,284,0464.10%1175.961,9421.04101.27262,948,8852,507.64664,8392,767,537

Angono74,66897,2093.73%26.223,7071.03731.2457121,0974,618.5023,888104,997

Antipolo633,9714.22%306.102,0711.04221.2815812,4112,654.07178,440727,419

Baras24,51431,5243.55%84.933711.03551.232838,864457.607,34031,811

Binangonan187,691238,9313.41%66.343,6021.03411.2229292,1784,404.2553,247228,291

Cainta242,511289,8332.51%26.8110,8111.02511.1604336,31412,544.3546,481220,487

Cardona39,00344,9421.99%28.561,5741.01991.125550,5821,771.085,64029,504

Jalajala23,28028,7382.97%44.126511.02971.192034,255776.415,51724,655

Morong42,48950,5382.44%37.581,3451.02441.155658,4031,554.107,86537,720

Pililla45,27558,5253.63%69.958371.03631.238572,4861,036.2513,96158,875

Rodriguez115,167223,5949.65%172.851,2941.09651.7380388,6082,284.24165,014659,616

San Mateo135,603184,8604.40%55.093,3561.04401.2948239,3574,344.8454,497220,414

Tanay78,22394,4602.65%200.004721.02651.1699110,510552.5516,05074,606

Taytay198,183262,4853.98%38.806,7651.03981.2639331,7448,550.1069,259285,795

29,74544,4365.73%18.612,3881.05731.397062,0763,335.6317,64068,964

Teresa

Projections made by PPDO

Cainta has a small land area of 26.81 square kilometers. It is already a densely populated municipality.Together with San Mateo, Rodriguez, and Binagonan, Cainta is included in the small or medium sized city category. These municipalities have existing industries, health and educational facilities.

Socio-cultural Forces

Political Forces

Technological Forces Technology at present, has been able to touch and change every aspect of ones life, especially business firms. And the emergence of mobile devices, social media and modernized machines made more of an impact than ever, it could be a struggle for one to go anywhere and not find a high-tech piece of hardware or software around. These advances have made an impact everywhere, and one of the areas in the society the researchers are looking forward for a more technology improvement is in the food industry.Through the rise of high-tech mobile devices, online reservations and inquiries, social media, and online payment methods, technology penetrated the food industry. At the same time, these technology advancements had greatly affected the decision-making process of the consumers as they are becoming savvier and practical in choosing which of which should they patronize. Moreover, the pros and cons of these technology advancements, especially in the social media, can determine the fate of business firms under this industry, regardless of how delightful of the food they serve.High-tech Kitchen WaresAt present, Wow-Lus catering services is somehow up-to-date with the new and improved kitchen wares. To be able to produce better and make their operations more efficient they upgraded their kitchen tools into modern ones. With those upgrades, Wow-Lu was able to serve more events than before. However, due to the fast-changing technology advancements, Wow-Lu admitted that they cannot keep all of their appliances and machineries very up-to-date since upgrading into those will cost them too much and it is also very impractical for a small business firm like them. Moreover, the kitchen tools that they have are already enough for them to serve their customers and it does not have a huge impact on the company if the tools are not that up-to-date.Technology of AdvertisementsWow-Lus catering services are not active in advertising and promoting their business to the people, they often rely their business advertisement through the word of mouth of their regular and new clients. Nowadays, online and traditional advertisement creates a huge impact on the market of the food industry. Due to the saturation of the market, advertisements create an important role to a business firm as it will somehow dictate if the company will remain in the industry.Meanwhile, Wow-Lu uses static advertisements such as flyers and brochures but they seldom distribute it to their target market. They also use their social media accounts to announce their new offerings to the market. But they use it very seldom, such that when one visit their page in Facebook, you can see that their posts were not that attractive and attention grabber. They are also the ones posting the comments of their clients, which are all positive, in their social accounts.

Figure 1: The Official Twitter and Facebook Accounts of Wowlu Catering ServicesThe Trends of Social Medias: Affecting the Consumers Decision-MakingSocial media, among all other medium of communication, is the most influential change that happened in the era of technology. There are lots of social media at present, but the most popular among those are Facebook, Twitter, Google+, and Instagram.*Table 1: From http://fleirecastro.com/productivity/social-media-stats-philippines-2015-wearesocial-sg/

Facebook, a social utility that connects people, to keep up with friends, upload photos, share links and videos, is the top social media site used by many Filipinos. While Google+, a site that enables users to search the world's information, including webpages, images, and videos, is next to Facebook with a statistic of more than 13%. It was followed by Twitter, Social networking and microblogging service utilizing instant messaging, SMS or a web interface, with 13%, and Instagram, a site used for mass photo sharing, with just 9%. Moreover, these sites are very powerful and are very influential especially to those savvy clients who wanted to assure the quality of a certain service or product. People also use these social media sites to praise or criticize a certain product or service that they experienced. From the past years, there were some business firms who liquidated due to low sales caused by a certain complaint posted in Facebook.Having a social media account is a good move for every business firms as it allows them to have a cheaper channel for their advertisements and promotions. For Wowlu Catering Services, it has two existing social media accounts, these are Facebook and Twitter. Its Facebook account, www.facebook.com/wowlucatering , is not that active compared to its competitors. Wowlu did not take a full advantage of Facebook. The company seldom posts their promotions and advertisements, or to just update their clients. Their posts have very few likes, and only few shows interests on their offers. This is a similar case to their Twitter account, @wowlucatering, which only has 16 followers, and 20 tweets from 2013 up to present.Wowlu Catering Services WebsiteAt present, it is important for a business firm to have not just social media accounts but also its own website. Social media sites help future clients to have a short evaluation on the product or service for their decision-making process through reading the reviews of the people who already experience that certain product or service. While websites allow clients to gather short information about the companys background, packages/offerings, prices (if any), and contact details.Wowlu Catering Services created its own website, www.wowlucatering.com , two years ago. In their website, one could view the companys brief description, packages, gallery, partnered clients, and their contact information. Wowlus market focuses on the Generation X or those who has the capacity to spend, this includes the elders and adults with ages 25-60. Although social media sites are very influential, most of the target market of Wowlu do not have social media accounts and just base their decisions on what they could search in the internet.

Figure 2: Wowlu Catering Services Official WebsiteEnvironmental ForcesExternal Factor Evaluation (EFE) MatrixKey External FactorsWeightRatingWeighted Score

Opportunities

1.Growing market with a significant percentage of the target market still not aware that Wow-Lu Catering Services exists..063.18

2.There is a high demand for healthy eating among Filipinos..121.12

3.Partnership with reputable company that has far more marketing resources and sales channels..114.44

4. The arising demand for extra party services/packages such as photo booths, souvenirs, and cocktail booths..051.05

5.Increasing Holidays and occasions in the country..102.20

SUBTOTAL:---0.99

Key External FactorsWeightRatingWeighted Score

Threats

1. Competition from similar service providers in Cainta, Rizal.213.63

2. Local, established competitors that realized that there is a huge market in Marikina and Makati City..122.24

3. The rising prices of vegetables and fishes in the market which was due to the consecutive storms that devastated some of the agricultural farms in the country..143.42

4. Emerging cases of food poisoning.054.20

5. Change in the taste preferences of the primary target market..042.08

SUBTOTAL----1.57

TOTAL WEIGHTED SCORE1.002.56

Competitive Profile MatrixLa Dexies CateringWow Lu CateringD Empire CateringRusmar CateringKMG Catering

FactorsWeightRatingScoreRatingScoreRatingScoreRatingScoreRatingScore

Product quality0.2530.7530.7530.7530.7520.5

Price Competitiveness0.230.640.830.620.430.6

Management0.1530.4520.330.4530.4520.3

Advertising0.1520.330.4510.1520.320.3

Customer loyalty0.130.330.320.210.130.3

Customer Service0.1520.320.320.320.320.3

TOTAL:12.72.92.452.32.3

Note: The rating values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor strength, 4 = major strength.We placed the biggest weight of 0.25 on the Product Quality category since nowadays, people still choose food businesses that serve excellent quality of food and satisfy their customers needs. Product quality is the key for consumer loyalty which will give good reputation to the industry and will increase the profit of the industry by having recommendations from previous customers. The second highest weight is the Price Competitiveness factor of 0.20. Being in a catering business, it is hard to maintain your customers easily, so having reasonable prices in the industry makes the business highly competitive and customers tend to choose the one that offer a wider range of menu of its products and list of its services. The factors Management, Advertising and Customer Service are given an equal weight of 0.15 because they build brand awareness and consumer loyalty. They are the reasons why customers are getting back to the business and why it has many clients compared to its competitors. An effective advertising to its target market and excellent management and customer service skills are all necessary for the reputation of the business. We give the smallest weight of 0.10 to customer loyalty because in a catering business, it is easy to gain that loyalty once a customer had an excellent service with that catering business and thus, recommendations will just follow up as well as good reviews about the business.

Porters Five Forces ModelBuyer PowerWow-Lu Catering is a well-known catering in Cainta and serves a lot of clients such as those big schools, universities and companies in the country because of its excellent quality of food, affordable prices of its products and services, and impressive management of the business. The industry has a high buyer bargaining power since the lower costs and affordable prices of the products offered by the industry means that buyers will not easily switch to an alternate. Consumers may demand certain dishes or cuisines not in the industrys list of products which will reduce Wow-Lu Caterings power over its suppliers. Supplier PowerThe industry has various suppliers needed to produce the food they serve to their customers. Their supplier has a higher bargaining power because Wow-Lu Catering was not able to get other suppliers thus making it have more leverage due to the lack of available alternatives as suppliers of the industry. Because of this, Wow-Lu Catering still acquire goods from their supplier even if it demands an increase in their products. Competitive RivalryThere are catering businesses in Cainta that are considered to be competitors of Wow-Lu Catering in terms of its geographic location. But, the competition among its competitors is considered to be low for there are only small numbers of catering businesses in Cainta, its products are differentiated and they have built brand loyalty to their clients.Threat of Substitution

Threat of New Entry