Pest Analysis

PEST

POLITICAL

ECONOMIC

Over the years, the Philippines has gone from being one of the richest countries in Asia to being one of the poorest. It has experienced growth and development since World War II. The current administration under President Gloria Macapagal-Arroyo is aiming for a more rapid growth in the coming years. In 2004, the Philippine economy grew by 6.1% surprising everyone. In 2005, the Philippine peso appreciated by 6%, the fastest in the Asian region for that year. At present, the administration is meeting its expected target growth and is continually looking positive for the future.

With its tropical climate, heavy rainfall, and naturally fertile soil, the Philippines is predominantly agricultural. It also has other industries that help boosts its economy: textiles, pharmaceuticals, chemicals, wood products, food processing, electronics assembly, petroleum refining, and fishing.

Consumption pattern in the Philippines is shifting over time. Once, the main priority for expenditure is on food, then education and health. Now, part of the expenditure pattern of an average Filipino is to spend a portion of their income on leisure and relaxation. Part of leisure expenditures are the buying of alcoholic beverages. And one of the newest entrants in this commerce is the wine industry. It has posted the fastest growth rate of 15% in 2005 among the alcoholic drinks. The population now has increasingly warmed to wine. It has shifted from the mass spirits (beer) to the more sophisticated, affordable and healthier alcoholic beverage.

SOCIAL

One of the most familiar characteristics of the Filipinos is close family ties. An individual's decision will most likely be influenced by his/her family. A Filipino derives his/her inspiration from the family and this is where one's efforts will go. In typical homes, members of the extended family live under one roof. They have this notion of 'the more, the merrier'. Holiday celebrations and feasts are typically spent by the family and relatives together.

The Philippine society is also typified by the strong influence of its colonization. It has imbibed certain customs and habits from its past colonizers. The Spanish has taught Filipinos to be religious and this is still manifested in today's rich tradition of fiestas. Filipinos are a bit extravagant when spending for fiestas and holidays. This is because they want to conform to the social norms regarding these events. They are concerned with their self-image. They would rather spend more than they can afford rather than be shamed by making their real economic condition known. This is also true for celebrations such as birthdays, weddings and the like.

Another typical trait of the Filipino is pakikisama or getting along with others. This is depicted by his/her inability to say no to friends or barkada. Even against one's own free will, a Filipino would still accept an invitation or a favor just for the sake of pakikisama. Friends are second to family as to influence to an individual. Filipinos would resort to friends in times of problems and similarly in times of merrymaking. A typical sitting with friends is often enjoyed with liquor, since Filipinos are fond of it. The most popular among their drinks are beer, gin, and local counterparts like lambanog.

TECHNOLOGICAL

Wine making is an ancient art. Its roots parallel that of civilization, wine was believed to be made as early as 6000 BC. It was spread throughout the world especially in the Caucasian regions. As we all know wines come from grape vineyards -- such vineyards that were already present way centuries ago.

Until the early years of the 17th century, wine was considered to be the only wholesome readily storable (to a point) beverage, accounting for the rapid global increase of wine fermentation technology. Today, wine is synonymous with culture and a convivial