External Audit

Economic Forces

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

City/ Municipality

Pop.

Pop.

APGR

2000

2007

2000-2007

Area

Density

(Sq.
Km.)

APGR

PGR

Factor

Factor

2007

Est. Pop

Est.

2000-2013

Additional

2007-2013

Population

Density
2013

2007-2013

Add Pop

2013

2007-2027

Rizal

1,707,218

2,284,046

4.10%

1175.96

1,942

1.0410

1.2726

2,948,885

2,507.64

664,839

2,767,537

Angono

74,668

97,209

3.73%

26.22

3,707

1.0373

1.2457

121,097

4,618.50

23,888

104,997

633,971

4.22%

306.10

2,071

1.0422

1.2815

812,411

2,654.07

178,440

727,419

Antipolo

Baras

24,514

31,524

3.55%

84.93

371

1.0355

1.2328

38,864

457.60

7,340

31,811

Binangonan

187,691

238,931

3.41%

66.34

3,602

1.0341

1.2229

292,178

4,404.25

53,247

228,291

Cainta

242,511

289,833

2.51%

26.81

10,811

1.0251

1.1604

336,314

12,544.35

46,481

220,487

Cardona

39,003

44,942

1.99%

28.56

1,574

1.0199

1.1255

50,582

1,771.08

5,640

29,504

Jalajala

23,280

28,738

2.97%

44.12

651

1.0297

1.1920

34,255

776.41

5,517

24,655

Morong

42,489

50,538

2.44%

37.58

1,345

1.0244

1.1556

58,403

1,554.10

7,865

37,720

Pililla

45,275

58,525

3.63%

69.95

837

1.0363

1.2385

72,486

1,036.25

13,961

58,875

Rodriguez

115,167

223,594

9.65%

172.85

1,294

1.0965

1.7380

388,608

2,284.24

165,014

659,616

San Mateo

135,603

184,860

4.40%

55.09

3,356

1.0440

1.2948

239,357

4,344.84

54,497

220,414

Tanay

78,223

94,460

2.65%

200.00

472

1.0265

1.1699

110,510

552.55

16,050

74,606

Taytay

198,183

262,485

3.98%

38.80

6,765

1.0398

1.2639

331,744

8,550.10

69,259

285,795

29,745

44,436

5.73%

18.61

2,388

1.0573

1.3970

62,076

3,335.63

17,640

68,964

Teres
a

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 Wares
At 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-todate.
Technology of Advertisements
Wow-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 Services

The Trends of Social Medias: Affecting the Consumers Decision-Making

Social 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 Website
At 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 Website

Environmental Forces
External Factor Evaluation (EFE) Matrix
Weighted
Key External Factors

Weight

Rating
Score

Opportunities
1.

Growing market with a significant percentage of the .06

.18

target market still not aware that Wow-Lu Catering

Services exists.
2.

There is a high demand for healthy eating among .12

.12

.44

.05

.20

Filipinos.
3.

Partnership with reputable company that has far .11

more marketing
resources and sales channels.
4.

The arising demand for extra party services/packages .05

such as photo booths, souvenirs, and cocktail booths.

5.

Increasing Holidays and occasions in the country.

SUBTOTAL:

.10
---

0.99
Weighted

Key External Factors

Weight

Rating
Score

Threats
1.

Competition from similar service providers in Cainta, .21

.63

.24

.42

.20

Rizal
2.

Local, established competitors that realized that there is .12

a huge market in Marikina and Makati City.

3.

The rising prices of vegetables and fishes in the market .14

which was due to the consecutive storms that devastated

some of the agricultural farms in the country.
4.

Emerging cases of food poisoning

.05

5.

Change in the taste preferences of the primary target .04

.08

market.
SUBTOTAL

----

1.57

TOTAL WEIGHTED SCORE

1.00

2.56

Competitive Profile Matrix

La

Dexies Wow Lu D Empire Rusmar

KMG

Catering

Catering

Catering

Catering

Catering

Weig

Rati

Sco

Rati

Sco

Rati

Sco

Rati

Sco

Rati

Sco

ht

ng

re

ng

re

ng

re

ng

re

ng

re

0.25

0.75 3

0.75 3

0.75 3

0.75 2

0.5

0.2

0.6

0.8

0.6

0.4

0.6

0.15

0.45 2

0.3

0.45 3

0.45 2

0.3

Advertising

0.15

0.3

0.45 1

0.15 2

0.3

0.3

Customer

0.1

0.3

0.3

0.2

0.1

0.3

0.15

0.3

0.3

0.3

0.3

0.3

Factors

Product
quality
Price

Competitive
ness
Managemen
t

loyalty
Customer
Service
TOTAL:

2.7

2.9

2.45

2.3

2.3

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 Model

Buyer Power
Wow-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 Power
The 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 Rivalry
There 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