Liceo de Cagayan University

Senior High School Department

RNP Boulevard, Kauswagan, Cagayan de Oro City

STUDENT ACTIVITY SHEET NO. 1_

(Group Task)

Subject: Organization and Management

Topic: SWOT and PEST Analysis
Date Given: ______________________
Due Date: ______________________
Partners: ________________________
Points: ___/ 50
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Learning Competencies:

Analyze various forces/elements influencing local and international business environment using PEST and
SWOT strategies

Instructions: Read and analyze the selection below. Conduct the analysis based on the succeeding instructions.

Bench is recognized as one of the leading local clothing companies in the Philippines. The Bench brand
has distinguished itself because of its versatile product line, its diverse chain of stores and franchises, and its
strong marketing campaign.
Initially established as a boutique that offered men's T-shirts and jeans, Bench has branched off and
diversified its product line to include a variety of men's and women's clothing, apparel, intimate wear, footwear,
fragrance, and cosmetics. It has also established other brands and franchises which include popular foreign
brands such as Celio, Charles & Keith, and Aldo, as well as local brands such as Human and Kashieca. At
present, there are hundreds of Bench outlets, franchises, and retailers which give the company a wide and
enduring presence in the market. Additionally, Bench has gained renown for its advertisement campaigns. The
company is known to tap the best talents and most recognizable celebrities to be its endorsers and image
models. It has also employed a variety of effective media campaigns on television, print media, and billboards.
Bench advertisements and billboards are among the most recognizable ad campaigns in the industry.

Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: [email protected] [website: www.liceo.edu.ph)
 Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City

Notwithstanding its stature as an industry leader in the clothing business, Bench and other local clothing
companies continue to face various challenges in the market. One of these challenges is the cost of production
and operations. Frequent changes in prices of raw materials result in increased production costs. Clothing
companies can decide to pass on the cost to their consumers, but that would result in increased prices for their
products. Top clothing brands such as Bench have decided to absorb the cost of production in order to maintain
competitive prices in the market. Another challenge is the high cost of renting commercial space in malls. Many
mall operators require tenants to give an advance payment equivalent to several months of rent, apart from the
expenses for renovating and improving the space. Finally, the high cost of labor is also a challenge to clothing
companies, particularly for Bench, which uses local manufacturers and suppliers for majority of its products.
Another challenge to clothing companies and retailers is the often-changing consumption patterns of
buyers. Changes in preferences among consumers often follow a pattern. For instance, during the holiday
season sales of clothing and apparel are expected to increase. However, consumers nowadays tend to be more
price-conscious and opt for less expensive items. This is also evident in the behavior of consumers during mall
sales. People take advantage of the lower prices and malls are often crowded with buyers during sale seasons.
Ordinarily, these result in an increase in the number of sold items for clothing companies. However, this does
not necessarily mean an increase in profit since the products on sale are "off season" items and those left unsold
from previous stocks that have to be sold to avoid losses for the company.
The entry of foreign clothing brands in the Philippines is a major challenge which has affected sales of
local clothing companies. Clothing stores such as Forever21 from the US, Uniqlo of Japan, and Swedish brand
H&M have entered the Philippine market. Despite the entry of these foreign brands, Bench has maintained a
steady footing in sales and even steadily increases its sales.
The influx of foreign clothing brands into the Philippines has motivated Bench to take the opportunity
and establish its brand internationally. At present, Bench has made significant strides in establishing itself as a
global brand. Bench stores have opened in the Middle East, the United States, Canada, Singapore, and China.
Overseas Filipinos form a large portion of Bench's international clientele, but the company plans to cater to a
more international audience. A big limitation to the expansion of Bench and other clothing brands is that foreign
clothing companies are often heavily supported by their respective governments. Incentives and subsidies
enable the foreign companies to make cheaper products due to decreased manufacturing costs. In the

Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: [email protected] [website: www.liceo.edu.ph)
 Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City

Philippines, there is little support for clothing manufacturers and retailers. Another challenge for Bench is to
come up with local clothing lines that will capture the interest of foreign markets. Since Bench primarily caters
to a clientele in a tropical country, it has limited options with regard to clothing for colder seasons such as
winter and fall.
Sources: John Ong, "The tangled state of the Philippine garments industry" SGU&Co., 1 October 2012;
"Bench: 25 years, 28 brands and counting," The Philippine Star, 22 July 2012

A. Conduct a SWOT analysis of Bench using the table below. Fill in the table with the appropriate
information. (25 pts)

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: [email protected] [website: www.liceo.edu.ph)
 Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City

B. Perform a PEST analysis of the company. List all the different factors mentioned in the selection in the
table below, then briefly explain its impact on the company. (25 pts)

POLITICAL ECONOMIC

Impact on the company: Impact on the company:

SOCIAL TECHNOLOGICAL

Impact on the company: Impact on the company:

Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: [email protected] [website: www.liceo.edu.ph)