Thesis (Master in Management) -- University of the Philippines Mindanao, April 2019

Coffee for Peace (CFP) is a social enterprise to protect and enhance the environment, journey with farmers toward sustainable livelihood, and support peacebuilders working in conflict-afflicted areas. CFP sells locally grown and roasted coffee beans for fair-trade prices and operate a small street-front café where coffee brewed from those beans is served. As a business entity with constrained resources, CFP is facing challenges that affect the efficiency and sustainability of its coffee business. The creation of this paper aims to determine the optimal strategic option for Coffee for Peace to help it achieve its social and corporate objectives. Throughout this study, the proponent was guided by Fred David?s Strategic Management Model (2011). Strategic planning focuses on integrating human resources management, marketing, finance, operations, and information systems to achieve organizational objectives. It is a process in which organization assess themselves and their environment, devise plans, implement these plans, and monitor the strategies formulated. Towards this end, the proponent was able to determine that the organization has a slightly below average ability to respond to external factors. The organization has yet to respond to market opportunities such as the increasing coffee expenditure of Filipinos, unique coffee consumption behavior of young people and business process outsourcing employees, and adaptation to technologies available to small businesses. More so, CFP responds poorly to the threats posed by its competitors. Furthermore, CFP has below average internal position in maximizing its strengths and minimizing its weaknesses. Despite its exceptional advocacy and reputation and high customer satisfaction, the organization lacks promotional activities to increase its revenue. Also, it operates with a high cost of sales and operating expenses, which negatively affects its profitability. To identify the strategic alternatives for CFP, Internal-External (IE), the Strengths, Weaknesses, Opportunities, and Threats (SWOT), and Strategic Position and Action Evaluation (SPACE) matrices were used. The optimal strategy was selected using the Quantitative Strategic Planning Matrix (QSPM). This strategic plan recommends market penetration as CFP?s man strategy. To support this major strategy, sub-strategies are also recommended ?Backward Integration and Operational Efficiency Improvement. The implementation of phased strategies will significantly increase sales performance and brand image of the business. Within 2020-2022, it is expected that CFP will achieve the proposed goals ? ensure sustainability and market reach, fulfill its social responsibility, increase its profitability, ensure FDA compliance, and migrate processes into paperless platforms, allowing CFP to gain a competitive advantage. Successful implementation of these strategies is expected to bring in a net income of PhP1.35 million by the end of 2022 driven by a substantial increase in revenue