Business Strategies of Carinderias in Select Barangay in Ibaan Batangas in

Digital Era: A Basis for Business Development Plan

CHAPTER I

THE PROBLEM AND THE BACKGROUND

1.1 Background of the Study with Conceptual Framework

Digital transformation is a dynamic evolution of a business and its Organisational

processes, strategies, product development, and models (Yue, 2015). This

transformation allows a business to take full advantage of the many digital technologies

that seek to improve current Organisation systems and prepare for future shifts, to reap

long-term profitability. It is a strategic process where a company incorporates innovative

digital technologies that take into account the current and future shifts in the market to

redefine operational models for an improved outcome. Digital transformation is a part of

digital entrepreneurship that seeks to embrace a transformative approach to redefine

current business models using up-to-date digital technologies.

Today, any company needs to exploit the potential of this technology by

developing a digital strategy. Such a strategy consists in a combination of digital

technology, information and physical resources that allows raising human performance.

The pace of change continues to blur the boundaries of the physical and digital worlds.

It is redefining traditional industry sectors and the way we live and work. As stated in the

study of Russel (2018), emerging technologies, growing amounts of data and smarter
ways of getting insights are changing the way people, businesses and governments

interact.

Transformation is perpetual, regardless of your company’s size. In order to fulfil

growing and changing customer requirements, you need to take into account the

digitally transformative tools and processes that can bring about the necessary change

for improved productivity, reduced resource expenditure, and competitive advantage. It

doesn’t matter if you are a corporation or an enterprise; an online store or a brick and

mortar warehouse, digital transformation applies to all kinds of businesses.

According to Scholes (2021), knowing how complex the integration process can

be, organizations are increasingly on the hunt for top talent to help them meet their

digital goals. This partially explains why a degree in digital marketing is such a big deal

today. As more and more companies realize the importance of a digital marketing

strategy, the demand for graduates in the field will continue to rise.

Measuring results in marketing is important and crucial to ensure that the desired

goals are achieved when measuring the performance of your ad campaign. In traditional

advertising, it is very difficult and needs to have specialists in it, and the measurement

of results remains approximately. Excellence in digital marketing in general is important,

to increase your chances of success and participation, but reaching for excellence

requires a lot of time, effort and learning from the experiences of others, and testing

more than one form of content and channels published on the Internet to try to reach the

optimal mix that achieves the best access and influence in your target customers.
 Conceptual Framework

1.2 Statement of the Problem

1. Respondents Profile

A. Owner

A1. Age

A2. Income

5,000 - 10,000

10,001 - 15,000

15,001 - 20,000

20,001 - Above

A3. Months/Year in Business

B. Platforms

B1. Software
 B2. Hardware

2. What is an ideal platform in promoting Carinderias?

3. How software and hardware platforms improve the business strategies in starting

Carinderias?

4. Significant relationship between Business Strategies in Digital Era and a

respondents:

- Profile of Owner of Carinderias

5. How does the digital era influence business strategies in starting a business?

1.3 Significance of the Study

This research focuses on the business strategies of Carinderias in the digital era.

The study will help the readers to understand the use of technologies in business

strategies.

This study will be beneficial to the following:

Owner of Carinderias. This study serves as a guide for them to acquire techniques

and strategies in improvement of each Carinderias in the digital era.

Customer. This group may use this study to gain knowledge. They can use it as a

source of information related to business strategies in the digital era.

Future Researcher. This study serves as a guide for them to have knowledge about

the business strategies of Carinderias in the digital era.

The Researcher. This study will help the researcher to get additional information

related to marketing as the researcher is studying accountant and business

management.

1.4 Scope, Limitation, and Delimitation

The main purpose of the study is to provide information regarding the digital era

on business strategies and its impact in starting Carinderias’ business. The study

considers the peoples in Barangay’s personal information such as their name (optional),

and age.

The researcher limited the study to 30 carinderias’ owners in Barangay Lapu-

Lapu, Palindan, Salaban 1, Coliat, Bago, Lucsuhin, Poblacion, Talaibon, Bungahan,

Calamias, Quilo, Panghayaan, and Matala, each of the respondents was given a

questionnaire to answer. Afterwards, the researcher comes up with the assessment

procedures where the information gathered where analyzed and evaluated.

1.5 Hypothesis

Ho1: There is a significant impact of Software platforms in business strategies.

Ho2: There is a significant impact of Hardware platforms in business strategies.

 Definition of Terms

Digital transformation. The adoption of digital technology by a company. Common

goals for its implementation are to improve efficiency, value or innovation.

Industry. Economic activity concerned with the processing of raw materials and

manufacture of goods in factories.

Marketing. The action or business of promoting and selling products or services,

including market research and advertising.

Strategy. The art of planning and directing overall military operations and movements in

a war or battle.
 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Related Literature

Local Literature

Digital transformation is a dynamic evolution of a business and its Organisational

processes, strategies, product development, and models (Yue, 2015). This

transformation allows a business to take full advantage of the many digital technologies

that seek to improve current Organisation systems and prepare for future shifts, to reap

long-term profitability.

According to Scholes (2021), knowing how complex the integration process can

be, organizations are increasingly on the hunt for top talent to help them meet their

digital goals. This partially explains why a degree in digital marketing is such a big deal

today. As more and more companies realize the importance of a digital marketing

strategy, the demand for graduates in the field will continue to rise.

Small business (SB) owners are utilizing social media for marketing, advertising,

employee recruitment, and communications with clients, partners, and employees

(Schaupp & Belanger, 2014). Achieving marketing objectives has become difficult for

business owners because of media fragmentation and the increasing number of daily

media exposures (Lapido, Nwagwu, & Alarpe, 2013). In particular, restaurant owners

struggle with understanding how to best utilize social media for marketing (Bilgihan,

Cheng, & Kandampully, 2014).

 A family-style restaurant is a casual dining restaurant where a customer sits at a

table and receives table service from waitstaff as opposed to over-the-counter service at

a fast-food restaurant where a customer receives their meal to go (National Restaurant

Association, 2014). Riehle, Grindy, Bruce, and Stensson (2014) reported that 32% of

consumers utilize information from social media when choosing a restaurant.

Implementing social media strategies to increase net sales for small family-style

restaurants will ultimately increase the demand for employment.

Yun (2013) noted small 11 businesses make economic growth more sustainable

through job creation. Increasing the demand for employment can have a direct impact

on decreasing the unemployment rate within the United States, particularly in the state

of Maryland. Increasing net sales does not only influence individuals who need

employment, but also those interested in opening a small business.

Foreign Literature

According to the study made by Bhagwat and Goutem (2013) is in line with the

study done by Jati and Mchanty (2012) where they assert the need for social networking

sites in a business. They highlight that social technology is connecting people in ways to

share information and other things to each other, from their study They found Facebook

to be the leading social media networking site. They also provided statistical data which

shows that social media sites are growing and providing facilities to both business

organizations and the people.

Bajpai et.al (2012) social media marketing: strategies and its impact highlights on

the various social media marketing strategies for small businesses that can take this
viral marketing from beyond the present social media to build the community powerful

enough to make an initiative buying and marketing effective. They also compare it with

the implications of traditional means of marketing.

The question of how foreign companies enter and adapt strategies to host

country environments has been a popular area of research in international business. On

the other hand there is a growing body of literature establishing that market orientation

leads to better performance in organizations (Im and Workman, 2014).

Social media is an online platform that individuals use to communicate or share

information (Taneja & Toombs, 2014). The usage of social media platforms changed the

way organization members directly communicate with their consumers and the way

consumers perceive organizations (Taneja & Toombs, 2014). Xu, Ryan, Prybutok, and

Wen (2012) noted that social media users utilize forums to build connections between 2

other users. Thorough and sophisticated preparation occurs when marketers use social

media platforms for marketing as compared to traditional and mass-marketing

techniques (Svatosová, 2012). The power of social media lies in the abilities of one

consumer to communicate with many consumers simultaneously (Xu et al., 2012).

Consumers are also able to give instant feedback to businesses through social

media (Marshall, Moncrief, Rudd, & Lee, 2012). Social media use can alter the level of

communication and interaction between SB owners and consumers (Pookulangara &

Koesler, 2011). Consumers of small family-style restaurants can communicate through

social media their questions or concerns, and family-style small restaurant owners can

directly respond to the consumers’ questions. Small family-style restaurant owners

could use the results of this study to increase sales using social media marketing

strategies.

2.2 Related Studies

Local Studies

The goal of an effective marketing campaign is to surround the customers with

messages. With the right mix, the customer can read the ad in the morning paper, see

the company’s billboard while driving to work and hear radio spot on the way home. Out

of home media provide all the options the company needs to round out a campaign.

This kind of advertising works best when it is used to communicate a single message so

it’s the perfect medium for building awareness for a store, product, service or brand

(Gordon, 2014).

Advertising and publicity reach customers and prospects less effectively than a

salesperson’s visit. However, with the exception of e-mail and the internet, advertising

and publicity are one sided forms of communication. A salesperson can answer a user’s

question and clarify benefits, whereas an advertisement does not allow feedback.

Moreover, much advertising and publicity fall on deaf ears, readers or listeners who are

not part of the target market. Only a small portion of advertising actually reaches the

target audience (Calvin, 2013).

Pricing is one of the most important factors one must consider when putting up a

business. The idea is not to price your product or service too high or too low. If the price

is too high, not too many people will be able to afford your product or service. On the
other hand, if it’s too low, customers will not buy it because they think what you are

offering is of inferior quality (Chuapoco-Remedio, 2015).

Soriano (2018) revealed in his study that the most notable among the problems

in marketing management of the small and medium businesses in Western Tarlac is low

price, followed by unresponsiveness of the products to customer needs, no customer,

high promotional cost, stiff competition, and declining demand because of the presence

of many firms and continuous increase in prices of products.

Beery (2010) concluded that some firms will still require long term capital

financing to undertake investments as they did in The Old Economy. Some will require

venture capital to start up a new business because of the size and risk of the business.

Some will still require the availability of short term loans to continue their operations.

Foreign Studies

Social media played an important role in having firms engaged customers

(Cabiddu, De Carla, & Piccoli, 2014). Firms relied more on social media than traditional

marketing strategies to engage customers (Kumar, Bezawada, Kishika, Janakiraman, &

Kannan, 2016).

Consumers and business leaders used social media to share and receive

information about each other, brands, products, and services via web-based and mobile

technologies (bahnil et al., 2014). Social media were often less expensive marketing

platforms than print and television marketing and had the potential to reach wider

audiences (Boling et al., 2014; Hassan et.al.,2015).

 According to eMarketer (2013), firms have increasingly adopted social media for

various marketing activities such as branding, market research, customer relationship

management, service provision, and sale promotion alongside various studies that are

putting forward evidence of the positive implications of deploying social media in

marketing strategies.

Likewise, Kumar and Singh (2013) makes the case that social media as a

marketing communication tool helps in building brand equity and customer relationship.

It found that using social media strategy became the most successful campaign by the

company and was capable of building a strong brand and strengthening its customer

relationship through social media networks.

As stated in the study of Russel (2018), emerging technologies, growing

amounts of data and smarter ways of getting insights are changing the way people,

businesses and governments interact. Transformation is perpetual, regardless of your

company’s size. In order to fulfil growing and changing customer requirements, you

need to take into account the digitally transformative tools and processes that can bring

about the necessary change for improved productivity, reduced resource expenditure,

and competitive advantage.

2.3 Synthesis

The different studies presented above contributed to the development of the

presented study. Discussion of differences as well as similarities with the present

research were presented below.

 Cited in the study of Gordon that is similar to the study in a way that home

media provides all the options the company needs to round out a campaign. This kind of

advertising works best when it is used to communicate a single message so it’s the

perfect medium for building awareness for a store, product, service or brand.

According to the study of Calvin that is similar to the study in a way that a

salesperson can answer a user’s question and clarify benefits, whereas an

advertisement does not allow feedback.

The study of Chuapoco-Remedio was similar to the study in a way that pricing is

one of the most important factors one must consider when putting up a business. The

idea is not to price your product or service too high or too low.

In the study of Soriano that is related to the study, it was revealed in his study

that the low price, followed by unresponsiveness of the products to customer needs, no

customer, high promotional cost, stiff competition, and declining demand.

According to the study of Beery that is similar to the study that the firms will still

require long term capital financing to undertake investments.

The studies of Cabiddu, De Carla, & Piccoli were similar to the current study in a

way that social media played an important role in having firms engage customers.

In the study of Bahnil that is similar to the current study in a way that consumers

and business leaders used social media to share and receiver information about each

other, brands, products, and services via web-based and mobile technologies.
 According to the study of eMarketer that is similar to the current study in a way

that firms have increasingly adopted social media for various marketing activities.

Cited in the studies of Kumar and Singh that is similar to the current study in a

way that they have examined the strategy “Live the moment” used in a social media

campaign by Maruti Suzuki for its Ritz car to create awareness and preference for its

car. They found that using social media strategy became a most successful campaign

by the company and was capable of building a strong brand and strengthening its

customer relationship through social media networks.

As stated in the study of Russel which is similar to the present study, emerging

technologies, growing amounts of data and smarter ways of getting insights are

changing the way people, businesses and governments interact. In that case,

transformation is perpetual, regardless of your company’s size. In order to fulfil growing

and changing customer requirements.

 CHAPTER III

RESEARCH METHODOLOGY

1.1 Research Design

This study will use the descriptive research design, the subject of a topic can be

examined and represented by researchers without affecting it in any way. The

characteristics of a person, circumstances or group and the frequency with which such

phenomena occurred are also represented in this research design. In this design,

researchers used an online questionnaire using google forms to gather information

about a topic. The type of research I used is Quantitative research because it

determines data that are measurable and standardize data collection and generalize

findings.

1.2 Research Environment

The researcher will conduct a study in Lapu-Lapu, Palindan, Salaban 1, Coliat,

Bago, Lucsuhin, Poblacion, Talaibon, Bungahan, Calamias, Quilo, Panghayaan, and

Matala.

1.3 Respondents/Subject of the Study

The selected people of Lapu-Lapu, Palindan, Salaban 1, Coliat, Bago, Lucsuhin,

Poblacion, Talaibon, Bungahan, Calamias, Quilo, Panghayaan, and Matala were the

participants in this research study. In Barangay Lapu-Lapu there are 6 persons and 2

persons each in Palindan, Salaban 1, Coliat, Bago, Lucsuhin, Poblacion, Talaibon,

Bungahan, Calamias, Quilo, Panghayaan, and Matala will be involved in answering the

questionnaire which would be given and provided by the researchers.

1.4 Data Gathering Procedure

This study will use stratified sampling in determining the participants of the study.

Similar to quota sampling, stratified sampling involves selecting people from different

subgroups from the target population. The difference is that random methods are not

being employed and the selection from each subgroup is solely based on the

researcher’s decision. After the discussion about the topic and objectives of the

researcher, the distribution of questionnaires to the participants will be performed. The

questionnaires that the researcher will use are properly studied to ensure its reliability.