Strategic Management

1. CURRENT SITUATIONAL ANALYSIS

VISION

“To provide conducive buying experience by giving the best service & quality products, committed to serve customer’s changing needs for their convenience.”

MISION

To be one of the leading convenience store in Dumaguete City; serving the needs of customers and giving them the best value & competitive prices.

SMART SHOP HISTORY

Shell Gas Station was established on November 11, 2011. Smart Shop was then established in Calindagan, Dumaguete City on January 16, 2012, after establishing the Shell Gas Station. Smart Shop was owned by Mr. Dean Stephen Sy.

The management decided that they would like to be unique from all other convenience stores, especially those stores located within the Gasoline Station premises. The management would like to have a convenience that isn’t just a one-stop shop. The management named it Smart Shop because they want to be unique compared to Shell Select, which is the nationwide name for the convenience stores.

They started selling local products such as chips, finger food and alcoholic beverages at the first few months of operation. After 3 months, they started selling imported products like Chips (Doritos, Cheetos, Lays), Chocolates (M&M’s, Cadburry, Ferrero, Tobleron), Candies (Trolli, Airheads, Lifesavers, Sourpatch), Alcoholic Beverages (Black Label, Jack Daniel’s, Novellino).

Their business became popular when the Magnum Ice cream was released in the market because they were the only business establishment that introduced this kind of ice cream in town. Because of that, they keep on ordering boxes of the said ice cream and many customers patronize their establishment.

b. External and Internal Data

                i. Economic, Market, Competition, Customer, Supplier Information

The Economic Aspect of the business should not only cater to the customers but also to the employees of the business. This is very important because as a business the number one factor that’s making the business profitable are the people, especially the customers themselves. Therefore, Smart Shop should also strengthen relationship with the employees because it will benefit both parties for the betterment of the business.

ii. Mind Set, Alignment of Employees to VMG, Consistency of Decision making, Commitment

Directing is the process that may people would most relate to managing. It is very important for one establishment to keep track on the happenings inside the establishment. The manager believes that the only thing that will help boost employee's’ work performance is their relationship with their co-workers.

Controlling is used by managers in an organization. The control may be quality control, inventory control, production control, or even administrative control. Control is a continuous process; it follows a definite pattern and timetable, month after month and year after year on a continuous basis.

iii. Customer’s View and Opinion on Product Lines; How are the Product Lines Viewed by Customers; Competitors

Based on the group's observation the product sold at the Smart Shop are various and sufficient for the customer who wishes to avail of their services such as snacks beverages and groceries which is a great convenience for the customers who buy at the shop the only problem the shop has in the moment is with the sanitary image which is not that good.

II. SEGMENTATION ANALYSIS

a.     Product VS. Market Potential

For the product, first of all, the manager said that there are more or less 2,000 classifications of products for sale in the Smart Shop. Like any other convenience store, Smart Shop stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, tobacco products, magazines and newspapers. Smart Shop specializes in offering alcoholic beverages, imported candies and chocolates. Dairy products, such as milk, cheese and butter, are displayed in the later part of the shop. There are also over-the counter medications that include aspirin, cough medicines, and throat lozenges. Though there are only little amount in displays, the shop also offers dry and canned goods like bread products (loaves and flavored), canned meat and sardines. They also have popcorn and that is why they have the microwave on the cashier’s area. Cigarettes, lighters, batteries, condoms, and ready-to-eat food like siopao and chocolate cake are also available in Smart Shop. And this is the only convenience store that offers a variety of gummy candies by gram.

Secondly, the group observed and confirmed that the target markets of Smart Shop are those who belong to middle to higher class of society. Though the shop does not limit the age of the customers, most of the customers ranges from 16 to 40 years old. The peak time of the Smart Shop starts from 3 o’clock in the evening up to dawn at around 2 o’clock. And there are no direct competitors in the area aside from Robinsons Dumaguete City. As observed, most of the customers of the Smart Shop are college students, group of friends that range from the said age gap mentioned above. There is an open space outside the Smart Shop where 10 – 15 tables are displayed, especially at night time. Customers usually spend around 3 – 5 hours in the shop drinking and hanging out with their friends. The group also noticed that there are call center agents as part of the customers. The call center agents are usually working in Teletech and SPi Global Dumaguete. They usually come to the Smart Shop in big groups. Aside from that, the group noticed that there are travellers who are part of the walk in customers of the Smart Shop; foreigners most especially. There are also bikers who way in the shop for almost an hour to have a drink and rest before they get back on their biking.

b.         PRODUCT TO FOCUS

Smart Shop stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, tobacco products, magazines and newspapers. Smart shop specializes in offering alcoholic beverages, imported candies and chocolates. Dairy products, such a milk, cheese and butter, are displayed in the later part of the shop. There are also over-the-counter medications that include aspirin, cough medicine, and throat lozenges. Though there are only little amount in displays, the shop also offers dry and canned goods like bread products, (loaves and flavoured), canned meat and sardines. Cigarettes, lighters, batteries, condoms, and ready to eat food like siopao and chocolate cake also available in Smart Shop.

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