LTG Company

New Era University
COLLEGE OF ACCOUNTANCY
#9 Central Ave., New Era, Quezon City, Philippines.
LT GROUP, INC.
INTERNATIONAL BUSINESS PLAN
PRESENTED BY:
DE GUZMAN, JEFFREY BRYAN
DELA CRUZ, ELAIZA FAYE (INACTIVE)
JUNTILLA, JYAN FILBERT
LIRIO, CLAUDETTE
MERCADER, ROLANDO II
OCAMPO, RAQUEL
POSTRANO, GEMIMA GLORY
RAMOS, KRISTINE ABEGAIL
SERVAN, FAITH JILLIANE
JULY 2021
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TABLE OF CONTENTS
Executive Summary 3
Introduction 5
Background Analysis 27
Internal Analysis 27
External Analysis 32
International Business Opportunity Analysis 35
Preliminary Assessment 45
Problem 47
Operation of the Proposed Business 49
Organization 49
Product/Service 55
Market and Marketing Strategy Plan 67
Financials 73
Key Metrics 89
Competitive Analysis 91
Conclusion 94
Bibliography 97
Appendix 100
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I. EXECUTIVE SUMMARY
LT Group of Company is involved in a variety of industries like food,
beverages, and services. They are now creating a new venture overseas to
increase their target markets and innovate or improve their products and
services. The company was introduced as The Manila Wine Merchants, and it
was first a Trading company. After years of success selling, they acquire
many subsidiaries to expand their business in the Philippines and our venture
in Spain.
In 1999, the Corporation acquired Twin Ace Holdings Corp. (now known
as “Tanduay Distillers, Inc.” and hereafter referred to as “TDI,” a producer of
distilled spirits) through a share swap with Tangent Holdings Corporation
(“Tangent” or the “Parent Company”) --the swap result on an increase of
shareholders ownership for the LTG. The Corporation after that changed its
corporate name to “Tanduay Holdings, Inc.” As the company expands its
business, they become diversified and invest in the industry of beverage,
tobacco, property development, and banking businesses.
The LTG wants to provide and create a new venture in the European
region, specifically in Spain. The company wants to start distributing their
product throughout the Spanish region, where we want to introduce our
products to a new set of consumers. This can start new ties to local
businesses that can provide them new distribution.
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LTG key metrics are First sales revenue as the Company will have a good
business and company image that will lead them to reach the top
manufacturers of cigarettes and beverages in Spain. Second, managing
customers and customer’s satisfaction because LTG Company will enter
Spain, they will provide customer needs and satisfaction. Expecting that it will
lead the success of their business as presented in projected income. Third,
business partnership because of having a successful run-in business field as
presented in projected income. This will be their key to have partnership to
other business companies in Spain and last Business expansion the following
years of LTG’s business operation, the company will start to have their
research and business plan for expansion of their business in other countries
in Southern Europe which result in their 3-year projected income of
€5,315,378,357.
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II. INTRODUCTION
MISSION AND VISION OF LT GROUP, INC
Anchored to its Mission and Vision, the LT Group commits:
 To increase stockholder values through long-term growth in its major business

groups.
 To continuously improve the value of its products and services and to provide
consumers with more and better choices.
 To build the largest, most effective distribution network and widest customer
reach in the Philippines.
 To leverage on synergies between its various businesses to continuously
improve revenues and cost structure.
 To enhance the welfare of its employees and the communities where it lives and
works.
ABOUT LT GROUP, INC
LT Group, Inc. (LTG), formerly Tanduay Holdings, Inc. (THI), was incorporated
on May 25, 1937 under the name The Manila Wine Merchants, Inc. to engage in the
trading business. After a series of restructuring activities in 2012 and 2013, LTG
expanded and diversified its investments to include the beverages; tobacco; property
development; and banking businesses. The Company's subsidiaries and associates are
Tanduay Distillers, Inc.; Asia Brewery, Incorporated; Fortune Tobacco Corporation;
Philippine National Bank; Saturn Holdings, Inc.; Paramount Landequities, Inc.; and Eton
Properties Philippines, Inc
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LT GROUP, INC COMPANY VENTURE
LT Group is a conglomerate business active in tobacco, through its Fortune

Tobacco unit, financial services, Philippine National Bank, and real estate development,
through Eton Properties Philippines. According to Investopedia, taking part in many
different businesses can help a conglomerate company diversify the risks posed by
being in a single market. Doing so may also help the parent lower total operating costs
and require fewer resources. But, there are also times when such a company grows too
large that it loses efficiency. Additionally, a business becomes successful not just on the
product and services provided, the quality, and all internal factors but also external
factors such as marketing strategy, advertisement, etc an example of this is their
Philippine National Bank's commercial model which is Marian Rivera and Dingdong
Dantes, on their distilled water Agua Vida they have Kuya Kim Atienza.
Aside from that, during 2018, the LT Group continued to gain momentum, as
reflected in its financial performance. Its attributable net profit grew by 50% to P16
billion on higher earnings across its banking, tobacco, liquor, and property businesses.
Its revenues also went up by 19% to P75.56 billion. “Our positive result was no
accident, nor was it achieved overnight. It was the product of years of planning, careful
execution, and hard work,” Mr. Tan was quoted as saying in the group’s 2018 Annual
Report.
LT GROUP, INC COMPANY DEVELOPMENT WORK
LT Group, Inc. was originally incorporated on 25 May 1937 as “The Manila Wine
Merchants, Inc.”, a trading company. It listed with the Philippine Stock Exchange
(“PSE”) sometime in 1947 and was granted an extension of its corporate life for another
50 years in 1987. In 1995, it changed its corporate name to “Asian Pacific Equity
Corporation” and its primary purpose to that of a holding company.
In 1999, the Corporation acquired Twin Ace Holdings Corp. (now known as
“Tanduay Distillers, Inc.” and hereafter referred to as “TDI”, a producer of distilled
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spirits) through a share swap with Tangent Holdings Corporation (“Tangent” or the
“Parent Company”) --the swap resulted in Tangent increasing its ownership in LTG to
97.0%. The Corporation thereafter changed its corporate name to “Tanduay Holdings,
Inc”.
LT GROUP, INC COMPANY PRODUCTS & SERVICES
In 2012, in preparation for the Corporation’s new role, it adopted the corporate
name “LT Group, Inc.”. A series of restructuring activities followed in 2012 through 2013
whereby LTG expanded and diversified its investments to include the beverage,
tobacco, property development, and banking businesses of Mr. Lucio C. Tan and his
family and assignees (collectively referred to as the “Controlling Shareholders” or the
“Tan Companies”), to wit:
 Distilled Spirits— The Corporation’s wholly-owned subsidiary, TDI, is the third-

largest distilled spirits producer in the Philippines according to Nielsen Philippines,
with an approximate 27% share of the Philippine spirits market in 2018.
 Beverages— The Corporation owns 99.9% of Asia Brewery, Incorporated (“ABI”),
one of the Philippines’ leading producers of non-alcoholic beverages which includes
energy drinks, bottled water, and soymilk. ABI conducts its alcoholic beverage
business through a 50% stake in AB Heineken Philippines, Inc. (“ABHP”), which
produces bear and alcopop.
 Tobacco— The Corporation owns 99.6% in Fortune Tobacco Corporation (“FTC”),
which, together with other Tan Companies, owns 50% of PMFTC, Inc. (“PMFTC”).
PMFTC is the leading tobacco manufacturer and distributor in the Philippines with
over 69.9% market share in 2018.
 Banking— The Corporation conducts it’s banking business through Philippine
National Bank (“PNB”), a universal bank currently listed in the Philippine Stock
Exchange (“PSE”). The Corporation’s indirect ownership in PNB is approximately
56.47%. In 2018, PNB is the Philippines’ fourth largest private commercial bank in
terms of total assets.
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 Property Development— The Corporation conducts its property development

business through Paramount Land equities, Inc. and Saturn Holdings, Inc., which in
turn, collectively own 99.6% in Eton Properties Philippines, Inc. (“Eton”). Eton has a
diverse portfolio of property development projects in various areas throughout the
Philippines, primarily in Metro Manila and surrounding areas, and access to the large
land bank of the Tan Companies. Eton’s project portfolio comprises mainly
residential real estate projects, including large-scale township projects. Eton also
develops and leases out commercial properties to retail and BPO tenants.
LT GROUP, INC THE PRODUCT(S) AND/OR SERVICE(S), INCLUDING PATENT,

COPYRIGHT, OR TRADEMARK STATUS.
• The Company’s primary purpose is to engage in the acquisition by purchase,

exchange, assignment, gift or otherwise; and to hold, own and use for investment or
otherwise; and to sell, assign, transfer, exchange, lease, let, develop, mortgage, enjoy
and dispose of, any and all properties of every kind and description and wherever
situated, as to and to the extent permitted by law.
• LTG expanded and diversified its investments to include the beverages; tobacco;
property development; and banking businesses. The Company's subsidiaries and
associates are Tanduay Distillers, Inc.; Asia Brewery, Incorporated; Fortune Tobacco
Corporation; Philippine National Bank; Saturn Holdings, Inc.; Paramount Landequities,
Inc.; and Eton Properties Philippines, Inc.
Patent, copyright, or trademark status.
• Distilled Spirits- All product names, devices and logos used by TDI are
registered with or are covered by a pending Application for Registration with the
Intellectual Property Office of the Philippines. The Group also has current
Environmental Compliance Certificate issued by the DENR and a license to operate
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from the Bureau of Food and Drugs. All products currently being produced are
registered with the Bureau of Food and Drugs and the BIR. TDI has an existing
agreement with London Birmingham Distillers, Ltd. London, England for the use of the
Barcelona and London Gin brands. TDI has existing labor supply contracts with two (2)
manpower agencies and one (1) labor cooperative covering its three plants
• Beverage- ABI has caused the registration with the Philippine Intellectual
Property Office (IPO) of a variety of marks including “Asia Brewery, Inc.,” the ABI logo,
Cobra Energy Drink, 100 Plus, Colt 45, Beer na Beer, Tanduay Ice, Manila Beer and
Manila Beer Light, Absolute Pure Distilled Drinking Water, Summit Water, Creamy
Delight, Brew Kettle, and Red Oak. These exclusive distribution licenses are registered
with the IPO and the equivalent regulatory agencies in various other countries.
• Tobacco- Under the terms of the business combination, both FTC and PMPMI
transferred the intellectual property rights to their local brands to PMFTC. PMI has
licensed its international trademarks to PMFTC for so long as the business combination
exists and for which PMFTC makes regular royalty payments.
• Banking- The Bank’s operations are not dependent on any patents, trademarks,
copyrights, franchises, concessions, and royalty agreements.
• Property Development- As of December 31, 2014, the Intellectual Property

Office (IPO) approved the Company’s application for the trademark of the following
names and devices: a.) in 2008, Eton City, Eton corporate name and device; The Eton
Residences Greenbelt; Eton Baypark Manila; Eton Centris; Eton Emerald Lofts; and the
Move-In Ready labels; b.) in 2009, IPO approved the trademark of The Makati of the
South; c.) in 2011 the IPO approved the trademarks of the following names and
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devices: Centris Walk, Eton Tower Makati, Riverbend, Eton Parkview Greenbelt, South
Lake Village, Eton Cyberpod, First Homes, Centris Station, 8 Adriatico, Belton Pace, E-
Life, West Wing Villas, Green Podium, Aurora Heights Residences, West Wing
Residences, One Archers Place and 68 Roces. These trademarks shall be valid for a
period of ten (10) years from notice of approval.
LT GROUP, INC COMPANY LOCATION
 The official business address of the head office is at 11th Floor, Unit 3 Bench
Tower, 30th St. Corner Rizal Drive Crescent Park West 5 Bonifacio Global City,
Taguig City
Company information. (n.d.). Retrieved April 19, 2021, from

https://edge.pse.com.ph/companyInformation/form.do?cmpy_id=12
IS THE BUILDING LEASED OR OWNED? (STATE THE TERMS.)
• LT Group, Inc., colloquially called as the Lucio Tan Group, is a publicly listed holding
company of Chinese Filipino business tycoon Lucio Tan in the Philippines. LT Group,
Inc. is majority-owned by Tangent Holdings Corporation, its ultimate parent company
(also controlled by Tan).
WHAT OFFICE EQUIPMENT WILL BE NEEDED?
• Computer technology, printer, scanner, photocopy, office furniture, telephone and

office supplies
WILL THIS EQUIPMENT BE PURCHASED OR LEASED?
• Purchased all the equipment needed.
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Proposed Country: Spain, Barcelona
 Has a Powerful Economy

- Spain has a powerful economy, the 14th largest economy in the world and
top 8th in OECD. Spain is a member of the European Union; Within the
EU, businesses and traders benefit from the free movement of goods,
services, capital, and people. They may also trade without tariffs and in a
strong, singular currency, the Euro.
 Supports new ventures in their countries
- The international business & trade hub helps new ventures to have
assistance in exporting internationally and having connections to other
countries. Spain remains an open and competitive market. The
government has seen consecutive growth in the foreign trade sector over
the last five years. This is mainly due to improvements in productivity and
the moderation of wages.
- On top of that, the main exports of Spain are crude oil, followed by
imported cars, auto parts and accessories, medications, petroleum gases,
and refined petroleum oils. Its numerous Free Trade Agreements also
boost trade in Spain. It is a member of both the WTO (World Trade
Organization) and the GATT (General Agreement on Tariffs & Trade)
since 29 August 1963. It has also been a Member State of the European
Union since 1986.
 Develops technological innovation and disruption.
- Barcelona is a headquarters for startup companies. Many tech scale-ups
have since made their mark overseas, attracting further interest in the
Spanish region for foreign investors and founders.
 The tax burden is lower and has an easy process.
- The Spanish Tax Agency has a computerized system where the Tax
agency can perform most procedures and arrangements online. The tax
burden supported by all the companies established in Spain is quite
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reduced and remains under the average burden of the UE-28 and the
Euro Zone.
New Products
1. Collaboration or partnership with well-known businesses.
It would be an excellent opportunity to achieve both internal and external goals

through sharing varied strengths possessed by the company or businesses. Also, to
reinforce each other's needs to maintain competitive advantage as they enter the
market to offer new goods and services. This collaboration also helps portfolio
management to extract best business practices through these alliances and spread
these internally.
Companies to collaborate:
1. FC Barcelona – is a football team that can be

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2. Banco Santander - Banco Santander is the 5th biggest bank in Europe with the
revenue at over $55 billion. This Spanish company handles financial services to
companies, corporations, institutions, universities and individual customers.
3. Repsol - Spanish oil company operating in oil and gas exploration, production,
distribution, and trading.
4. ACS - is an engineering industry – industrial and environmental services,
logistics, transport infrastructure concessions and different types of
constructions.
2. Produce new line of rubbing alcohol
During these times that safety is the most important thing to our daily lives, rubbing
alcohol is creating a trend worldwide. Rubbing alcohol is essential due to the effects of
Covid-19. LT group can make Rubbing alcohol due to the help of Tanduay distilleries
and absolute distilleries. People will use alcohol in this pandemic and lifetime since this
is an essential thing that rubbing alcohol must use to prevent viruses and bacteria.
Company supplier
1. Shell - is a specialist grade within our alcohols range of oxygenated chemical

solvents. Being produced according to Good Manufacturing Practices (GMP) for
pharmaceutical excipients, it has very high purity and can be used in a wide
range of pharmaceutical, medical and food contact applications.
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Price: € 2.00
3. Substitute e-cigarettes in regular cigarettes Or Add e-cigarettes in tobacco

products
E-cigarettes are sometimes called “e-cigs,” “vapes,” “e-hookahs,” “vape pens,”

and “electronic nicotine delivery systems (ENDS).” Some e-cigarettes look like regular
cigarettes, cigars, or pipes. Some look like USB flash drives, pens, and other everyday
items.
E-cigarettes typically have fewer chemicals than regular cigarettes. E-cigarettes are not
safe for youth, young adults, pregnant women, and adults who do not currently use
tobacco products. E-cigarettes can benefit some people and harm others, and scientists
still have a lot to learn about whether e-cigarettes effectively quit smoking. According to
the research shows there is limited evidence that e-cigarettes are effective for helping
smokers quit. There are other proven, safe, and effective methods for quitting smoking.
This product is intended for public health officials and healthcare providers. The devices
and brands used to highlight the different e-cigarette, vaping, product generations, and
substances used in these devices.
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Company Supplier
1. Bombo – for E liquid
2. Joyetech – for E Cigarette
Price
1. For eCigarette: € 6.50 – € 40.50
2. For eLiquid: € 4.50 – € 30.00
New Services
1. New air transport services and cheaper fares to Spain.
Air transport is essential in Spain's industry because it connects to other countries

that maintain the European Union's superiority from the airline market or industry.
However, establishing air transport by the LT Company offers affordable travel fees
considering social inclusion and promoting Philippine tourism.
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Company affiliated:
1. Vueling - is a Spanish low-cost airline whose headquarters are located at El Prat

de Llobregat, Barcelona. The company was created in 2004, merging later with
another low-cost company called Clickair.
Reference: (https://www.vueling.com/en)
Price: € 1,190 – € 2,000
WHAT ARE THE MAJOR ECONOMIC, TECHNOLOGICAL, LEGAL AND POLITICAL

TRENDS ON A NATIONAL AND AN INTERNATIONAL LEVEL?
Economic
Organizations such as LT Group of company are using Global Economic Trends

to make decisions on international competitiveness, new product launches, economic
efficiency options, and plans for improved economic efficiency and market competition.
Global Economic Trends, on the other hand, are for forward-thinking executives who
like to draw conclusions rather than forecast. We have a lot of expertise in executive
education and economic forecasts at the IMD World Competitiveness Center.
Technological
Several significant tech trends drive the Technological Revolution, the next
transformative era in business characterized by a combination of cyber-physical
systems. Businesses like the LT Group must pay attention and take advantage of the
technology to remain viable in the coming years. The first trend is the Artificial
Intelligence, machines can already do so much for us—read, write, see, hear, speak
and even be creative. AI is not just infiltrating our everyday lives; it is going to transform
our businesses and industries. This AI trend cannot afford to overlook by businesses or
companies. Companies use AI to develop more innovative products, services and make
business processes more intelligent. And lastly is Autonomous robots
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Legal
Many citizens find the legal profession to be beautiful. Law is another area that
has a direct effect on many people's lives. Lawyers are needed at various stages of life,
from marriage to work and beyond. Many aspects of the law and how it is applied are
likely to be affected by these developments. Retiring baby boomers, emerging
technologies, and global expansion will all continue to play a part in the life of lawyers
and their many customers, according to those who watch the industry closely. In this
sector, the only constant changes.
Political
According to IMD, The UN estimates that by 2050, 68% of the world’s population
will live in cities. Humans will truly be urbanized, clustered into powerhouses of
economic output. Cities will become focal points of transportation, trade and finance,
culture and social change, and their leaders will be more important than national
politicians, tackling global as well as local issues.
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WHAT ARE TOTAL INDUSTRY SALES OVER THE PAST 3 YEARS?
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WHAT IS ANTICIPATED GROWTH IN THIS INDUSTRY?
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HOW MANY NEW FIRMS HAVE ENTERED THIS INDUSTRY IN THE LAST 3
YEARS?
According to a Wikipedia report (January 2016), the number of companies or

firms that have entered the industry in the last three years is 16. Only a few companies
that were acquired to be multi-industry or diversified companies have entered since
2016. The LT group of companies is focusing on Beverages like Vitamilk, Absolute, and
Summit. Second is the Property Development or the Real Estate Business, and they
acquired the Eton Properties Philippines. The third is the tobacco industry; in this
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industry, they have the Fortune and Marlboro Company. Furthermore, Last is the
Banking Industry; They have The Philippine National Bank.
WHAT NEW PRODUCTS HAVE BEEN RECENTLY INTRODUCED IN THIS

INDUSTRY IN THE LAST 3 YEARS?
LT Group, Inc. is involved in various industries, including distilled spirits,

beverages, cigarettes, real estate production, and finance. Banking, Distilled Spirits,
Beverage, Tobacco, and Property Development are the company's five divisions. The
corporate, middle-market, and institutional clients are served by the Banking division,
which offers a wide range of banking and other financial services. Manufacturing,
compounding, bottling, sourcing, purchasing, and distributing rum, brandy, bourbon, gin,
and other alcoholic goods are also part of the Distilled Spirits segment. In the
Philippines, the Beverage segment manufactures brewing, soft beverages, and bottled
water. Cigarettes, casings, tobacco, containers, stickers, and filters are all supplied and
manufactured by the Tobacco segment. Residential property ownership, growth,
leasing, and management are also part of the Property Development section.
WHO ARE THE COMPETITIVE PRODUCTS OR SERVICES?
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WHAT ARE THE COMPETITIVE PRODUCTS OR SERVICES?
LT Group Inc (LT Group), a subsidiary of Tangent Holdings Corporation, is a

diversified company involved in beverages, banking and property development
businesses. The company offers alcoholic beverages, soft drinks, energy drinks, bottled
water and tobacco. LT Group also provides banking and financial services to corporate,
retail customers, the Filipino government units and agencies. It also provides leasing
and management of residential properties, including housing projects, industrial,
commercial, urban and other kinds of real property. The company operates through
various subsidiaries, including Asia Brewery Inc, Eton Properties Philippines Inc,
Philippine National Bank and Tanduay Distillers Inc.
ARE THE SALES OF EACH OF YOUR MAJOR COMPETITORS GROWING,

DECLINING OR STEADY?
The top 10 competitors in LTG's competitive set are RCBC, BDO, Emperador
Brandy, Bank of the Philippine Islands, Lakeland Bank, Security Bank Corporation,
Land Bank, SMC, Tanduay Distillers, Metropolitan Bank and Trust Company and
Destileria Limtuaco. Together they have raised over 1.1B between their estimated
154.7K employees. LTG has 12,390 employees and is ranked 4th among it's top 10
competitors. The top 10 competitors average 15,364. Over the last two quarters, LTG's
revenue has grown by 6.8%. Specifically, in Q3 2020's revenue was $471.7M; in Q2
2020, it was $441.9M
WHAT ARE THE STRENGTHS AND WEAKNESSES OF EACH OF YOUR

COMPETITORS?
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STRENGTHS WEAKNESSES
 Advantages of the  Improvement that
organization could be done.
 Activities of the  Activities that can
company better be avoided for
than competitors. RCBC Savings
 Unique resources Bank.
RCBC and low cost  Activities that can
resources company be determined as
have. your weakness in
the market.
 Factors that can
reduce the sales.
 Advanced  Limited international
technology, presence
Customer loyalty  Limited presence in
 Strong and the rural areas
competent  Inconsistencies in
BDO management customer services
 Diverse and
innovative services
 Extensive banking
hours
WHAT TRENDS ARE OCCURING IN YOUR SPECIFIC MARKET AREA?
- Beverages
Asia Brewery, Inc. started as a brewery in 1982. It offers non-alcoholic
beverages as well as packaging materials. It is a market leader in the energy
drinks and soymilk categories. It is ranked second in the bottled water segment.
Its alcoholic beverages, namely beer and alcopop, were spun off into AB
Heineken Philippines Inc. in 2016.
- Property Development
Eton Properties Philippines, Inc. is the real estate arm of the group. It has
a diversified portfolio of residential subdivisions, high-rise and mid-rise
condominiums, BPO office buildings and commercial centers.
- Tobacco
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PMFTC Inc. is the business combination of Philip Morris Philippines

Manufacturing Inc. and Fortune Tobacco Corp. It is the leading cigarette
manufacturer in the Philippines.
- Banking
Philippine National Bank is one of the largest private universal banks in
the country.
- Distilled Spirits
Tanduay Distillers, Inc. has a 99% market share of rum in the Philippines
and 27% market share of the distilled spirits industry in 2018. It is the world’s
number one rum in terms of volume. In 2016, Tanduay started selling ethanol
to fuel companies.
WHAT IS THE PROFILE OF YOUR CUSTOMERS?
LT Group has five segments which are; Banking, Distilled Spirit, Beverages,
Tobacco, and Property Development. The Banking segment provides full range of
banking and other financial services to corporate, middle market and retail customers.
The Distilled Spirits segment involves in manufacturing, compounding, bottling,
importing, buying and selling of rum, brandy, whiskey, gin, and other liquor products.
The Beverage segment engages in brewing and soft drinks and bottled water
manufacturing in the Philippines. The Tobacco segment supplies and manufactures of
cigarettes, casings, tobacco, packaging, labels and filters. The Property Development
segment engages in ownership, development, leasing and management of residential
properties.
HOW DOES YOUR CUSTOMER PROFILE DIFFER FROM THAT OF YOUR

COMPETITION?
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LTG's biggest advantage over its competitors is; it has many segments that are
well -known in the market. In that case they can attract more investors also
shareholders/ stakeholders.
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III. BACKGROUND ANALYSIS
A. Internal Analysis (Company) Classify the following competitive capacities of

your chosen company for international expansion; indicate those considered
as strengths (insert “S”) or as weaknesses (Insert “W”). In the case where
they are not affected significantly (insert “-“). With regards to the selected
capacities add two other strengths and weaknesses of the company that are
important for its international activity.
COMPETITIVE CAPACITIES S, W, or (-)
Geographical Location of the company S
Available production capacity S
Level of Technology S
Financial Resources for current capital S
Financial resources for foreign investments S
Foreign market information S
Commercial network and contacts abroad S
International experience of human resources S
Knowledge of languages S
Corporate and brand image S
Motivation towards going international S
Decision making S
Diversified products S
Product (liquor, tobacco etc.) health risks amid COVID-19 W
Line of business conglomerates are considered as “non-essential” W

during a pandemic
Presence of non-performing loans (NPLs) and slower demand for W

loans in the market
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STRENGTHS
First, Location assumes an immense part in drawing in and holding the best
employees, being accessible to workforce or being situated where the employees
streamline their lifestyle is an asset to increase production. The great area of LT can
essentially help their organization to increase performance. Thus, their area draws in a
huge client base to their association because it incurs conducive availability.
Second, Production capacity is another extreme strength of LT organization as

it continuously powers up the support to make an item, making logistical operations
efficient in executive cycle of liquors and tobacco. T
Third, technology influences LT Company’s capacity to speak with clients. This

is a strength because it bridges quick shipment alternatives which permit LT transport to
move items over an enormous geographic region. At the point when LT clients use
technology to collaborate, the business benefits are achieved with better
correspondence, which later makes a more grounded public picture. More so,
technology allows variety of data to be incorporated in both functional and hypothetical
information including virtual techniques, methods, experience, and actual gadgets and
gear which increased viability to develop and improve their products.
Fourth, a financial resource builds up LT Company because it assists them in

accomplishing the objectives they made in their monetary statement of purpose. Thus, it
can also diminish their incorporate pay and obligation for compensatory duty of
business.
Fifth, Foreign investments are fundamental for their stock to be viewed as a

wise venture. Along with this, income can increase in efficiency, strength, and quality.
This is a strength because it can impact LT Company with expanded worth added,
diminished expenses, bigger creation, and higher intensity of production. Thus, benefits
are required to be higher, as well. The worth over the long run of these advantages (and
benefits specifically) are contrasted with the investment costs.
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Sixth, global monetary factors and globalization in its essence, is another

strength. For example, cash trade rates, taxes, expenses and the costs of products are
moderated by the global market. Here and there, mass-created merchandise can
expand advertising methodology which can appreciate LT’s liquors and achieve wide
acceptance. More than that, globalization can allow LT’s administration to innovate in
cost and value, target market, transformation, fast reaction, speedy creation among
others. At the point when LT produces with less expense and sells less expensive, it
can expand its market share.
Seventh, a human resource with the right international abilities can guarantee
all cycles inside their business because this can oversee easily upgrades in the LT
organization's reputation. With Human resource embodying international skills, the
recruitment, training, preparing, remuneration, employer stability and advancement will
be critical and emphatically identified with worker performance. E
Eighth, as Language shape the manner in which individuals feel and think; LT
Company can utilize its strengths by talking the first language of their collaborators and
partners, and by building their expressions accurately. This will alleviate possible
misunderstanding which will keep business running more efficiently.
Ninth, the brand image that LT accomplishes is a useful asset for acquiring
market influence; since they have made a positive brand picture, it can impact their
intended interest group's purchasing habits. In such case, consumers will make an
impression of their business and brand dependent on an assortment of their popularity,
for example, the manner in which their representatives are dressed, their site, their
business cards, the neatness of their store and more will also constitute to their overall
impact in the market portfolio. With that saying, the solid brand name, logo/picture of LT
assists with their availability heuristic in the psyche of their likely clients.
Going international is the tenth strength for LT Group. For instance, LT can
lower their costs through obtaining cheaper supply from other sources which of course
can help the business economy towards extension in another revenue capacity or
cashflow. Going international and the motivation behind it concedes a genuine
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autonomy to LT as it can grants more opportune clienteles. This would extend their
worldwide impression past their own home-grown market customers onward foreign
clients abroad which may have various preferences or propensities. Eleventh,
decision making has a tremendous effect on LT. It is a strength because it pushes the
company forward into progress. Or on the other hand it can annihilate the organization's
worth. LT leaders understand that each significant choice leads unyieldingly to a chain
of events and their skills to produce fast and sound judgment, provide positive results.
LT Group of companies also allow clients and providers to be attended on their
consistent satisfaction and this influence their business to success. These main
administrative relations are wise strategies and a unique game-plan.
Twelfth, diversification of products allows the business to widen the channel of

revenue and having this made LT to gauge their strength and security. If a product fails,
then another will support. This strength is powerfully because it offers a characterized
interaction which additionally gives a chance to help the company regain loss.
WEAKNESSES
First, the pandemic of COVID-19 has influenced LT organizations and its liquor
or cigarette products across the globe. The scourge spread has been disturbing
production network of organizations and compelling the company to close their sites
and resort to their plan of action on going virtual—which is difficult because LT is a
production company. The COVID-19 pandemic and its related government measures to
restrict versatility also affected release of liquor consumption due to liquor ban. While
the way to recuperation stays long and troublesome, this emergency likewise builds the
weakness of LT as people take part in avoiding unsafe drinking to make themselves
healthy and their immune system stronger. This is also rooted from the fact that during
the COVID-19 pandemic, there has been an increment in aggressive behavior at home,
for which unsafe liquor consumption is a danger factor. Unsafe liquor consumption
harms wellbeing, causes illnesses and tragedies, which in return debilitates reaction of
LT Company because it prompts huge financial loss. Thorough arrangement bundles
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based on a PPPP approach including pricing strategies, Policing to counter drink-

driving, primary care-based advising for substantial consumers, and managing liquor
Promotion exercises, the business of LT is at risk.
Second is the weakness of Non-essentiality. Since the start of the pandemic,

the liquor industry was not fundamental as indicated by the World Health Organization,
this makes the demand to be diminished.
Finally, non-performing loans are hindrances. The primary driver of NPL are
high-financing cost, Low GDP, Poor credit evaluation, Inflation, joblessness and ill-
advised loaning payment. NPL adversely affect the LT Company because of the delay
in the contract credit supply, contort designation of credit, demolished market certainty
and moderate monetary development. Amid the crisis, LT is affected due to
unrecoverable principal, and decreased cash flow.
In totality, these weaknesses are necessitated in order to be combatted along the

strengths. Once LP determines both its powerhouses and loopholes, it can devise an
interventive plan to cope up and adapt.
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B. External Analysis (Industry) Classify the following factors of international

and industry environment by selecting the factors which have a positive
impact-opportunities, mark “O” or negative impact-threats mark “T”. In the
case where there is no significant effect mark (-). Also add two other
opportunities and threats of great importance for the international activity of
the company.
ENVIRONMENTAL AND SECTORAL FACTORS O, T, or (-)
Reduction of barriers (custom tariffs, quotas) to international O

trade
Technical barriers to international trade T
Economic integration of countries (EU, NAFTA, ASEAN, etc.) O
Use of internet for international business O
Improvement of the transport systems O
Level of maturity of the internal market O
Appearance of emerging markets as manufacturers O
Appearance of emerging markets as consumers O
Concentration of the ownership of the companies -
Increasing power of retail O
Appearance of new products O
Changes in consumer behavior T
OPPORTUNITIES
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First Reduction of barriers to international trade traditionally, tariffs were used

simply as a political tool to protect certain vested economic, social, and cultural
interests. The World Trade Organization (WTO) is committed to lowering barriers to
trade. The world’s nations meet through the WTO to negotiate how they can reduce
barriers to trade, such as tariffs by the LT Company easily reducing barriers to FDI in
parallel would amplify the positive impact of lower tariffs and reduced non-tariff barriers
on productivity. The productivity gains from trade liberalization may also benefit from
reforms in other areas, such as in labor or product markets.
Second, Economic integration of countries is an arrangement among nations

that typically includes the reduction or elimination of trade barriers and the coordination
of monetary and fiscal policies. Economic integration aims to reduce costs for both
consumers and producers and to increase trade between the countries involved in the
agreement. The level of integration of LT Company involved in an economic regionalist
project can vary enormously from loose association to a sophisticated, deeply
integrated, transnationalized economic space. It is in its political dimension that
economic integration differs from the broader idea of regionalism in general. Although
economic decisions go directly to the intrinsically political question of resource
allocation, an economic region can be deployed as a technocratic tool by the
participating government to advance a clearly defined and limited economic agenda
without requiring more than minimal political alignment or erosion of formal state
sovereignty. The unifying factor in the different forms of economic regionalism is thus
the desire by the participating states to use a wider, transnationalized sense of space to
advance national economic interests.
Third, Use of internet for international business one of the immediate impacts
of the use of the internet in international business was the expansion of market for
goods and services. It has been found out that as the use of internet spreads among
countries, an increase of ten percent in the number internet web sources leads to a
corresponding 0.2 percent increase in the amount of products that a particular country
exports. In view of that research outcome, it can be concluded that the development of
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internet usage together with its expansion across the globe has had the effect of
expanding international trade by increasing inter border business transactions.
Fourth, Improvement of the transport systems the program aims to improve

the urban quality of life, reduce economic losses due to time lost in travel, reduce health
costs and premature deaths, reduce greenhouse gas (GHG) emissions and improve
the economic situation of the operators and industry by improving service quality levels.
Fifth, Level of maturity of the internal market a maturity model is a tool that
helps people assess the current effectiveness of a person or group and supports
figuring out what capabilities they need to acquire next in order to improve their
performance. In many circles’ maturity models have gained a bad reputation, but
although they can easily be misused, in proper hands they can be helpful. Maturity
models are structured as a series of levels of effectiveness. It's assumed that anyone in
the field will pass through the levels in sequence as they become more capable.
Sixth, Appearance of emerging markets as manufacturers as emerging

markets progress, they often experience the rapid income growth they set out to create.
As more people within a country rise out of poverty, a consumer class develops that
leads to a marketplace full of consumers who are hungry for new products and services.
With the right offering combined with a strategically chosen market, a company can
expect to grow their revenue at a steady rate in the right market.
In addition, emerging markets have begun to drive global innovation. More and
more, companies are discovering that emerging markets allow them to innovate at a
lower cost, but with the potential to disrupt the status quo. It is important for companies
to keep in mind that if they hope to fuel innovation in emerging markets they need to be
aware of the potential pitfalls other businesses have faced, such as pricing product or
service offerings competitively and positioning their offering correctly in order to attract
their audience.
Seventh, Appearance of emerging markets as consumers as the paradigm

shift in the buying behaviour of the consumers has led the emerging markets mould
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their strategies positively. The market is emerging in a very faster pace with the
consumers being more aware and accepts the innovation of the products and/or
services on a regular basis. The market hence is facing variety of issues with the
sudden and rapid change in purchase behaviour
Eighth, increasing power of retail LT Company pushes, primarily, small and

medium-sized producers to associate in order to meet the requirements of large
retailers for developing long-term interrelations between them and, in this way, to
ensure their own survival in marketing channels.
And Last Appearance of new products is an opportunity to LT grp because a

product's appearance can have aesthetic and symbolic value for consumers, can
communicate functional characteristics and give a quality impression (functional value),
and can communicate ease of use (ergonomic value). In addition, it can draw attention
and can influence the ease of categorization of the product.
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THREATS
First, Technical barriers to international trade is any regulation, standard or

procedure that could make exporting goods to another country more difficult. TBTs are
often greater obstacles to exporters than tariffs (import fees). Testing or certification
procedures are examples of technical barriers to trade. For instance, a cigarette may
have a product certified by the Food and Drug Administration of the Philippines (FDA),
but that certification may not be valid in other countries. This forces the company to
recertify the product in the country where they wish to sell it—a potentially costly and
time-consuming procedure. The World Trade Organization’s Technical Barriers to Trade
Agreement aims to reduce these barriers to trade, as do most free trade agreements.
The goal in both cases is to create a more open and competitive marketplace.
Last, Changes in consumer behavior is always changing and evolving,

however the changes seen recently have altered the business world significantly. There
has been an acceleration in the shift to online shopping, an increased need for omni-
channel, and major changes in consumer shopping habits
B. Analysis of the potential location importance and requirements of each trade

document required by Spain.
Spain has been a member of the EU since 1986. The EU has free trade
agreements with other economic associations (e.g., the European Free Trade
Association or EFTA) and countries, providing a higher level of mutual market access.
Import Tariffs
Import tariffs do not apply within EU-member states as of January 1, 2003.
Thirdcountry goods, including those from the United States, are charged the EU's
Common External Tariff. U.S. goods are taxed according to the standard EU duty rate.
For agricultural products, import documentation and tariffs are similar to those of
other EU countries. While some agricultural commodities, such as soybeans, sunflower
seeds, corn by-products and lumber, are tariff free or subject to minimal tariffs, the great
majority of food and agricultural products covered by the EU's Common Agricultural
Policy (CAP) are subject to high tariffs, tariff rate quotas, and /or variable import levies
which significantly restrict access to the Spanish market.
Spanish customs values shipments at C.I.F. prices. For U.S. products, the tariff
rate averages five percent. A registered customs agent must clear all shipments through
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customs. Usually, total costs to clear customs are between 20 to 30 percent of the
shipment's C.I.F. value. This estimate includes tariffs, 16 percent value added tax
(VAT), plus customs agent and handling fees. Total costs are lower for goods assessed
at lower VAT levels (i.e. foodstuffs).
Import Requirements and Documentation

 Import Licenses
The Integrated Tariff of the Community, referred to as TARIC (acronym for "Tarif
Intégré de la Communauté"), includes rules applying to specific products being imported
into the customs territory of the EU or, in some cases, when exported from it. To
determine if a license is required for a particular product, check the TARIC.
It is important to note that the World Customs Organization has released the third
update to the HS Code. There are major production classification revisions to chapters
84 and 85. This affects not just the EU, but also all 121 contracting parties to the HS
starting January 2007.
Many EU member states maintain their own list of goods subject to import licensing.
While Spain does not enforce any quotas on U.S.-origin manufactured products, it still
requires import documents, which are described below. None of the following
documents constitutes a trade barrier for U.S.-origin goods.

Import Authorization: (Autorización Administrativa de Importación, AAI) is used to
control imports subject to quotas. Although there are no quotas against U.S. goods, this
document may still be required if part of the shipment contains goods produced or
manufactured in a third country. For U.S.-origin goods, the document is used essentially
for statistical purposes or national security.
Prior notice of imports: (Notificación previa de importación) is used for merchandise that
circulates in the EU Customs Union Area, but is controlled for statistical purposes. The
importer must obtain the document and present it to the General Register.
Importers may apply for import licenses at the Register of Spain's Secretariat of
Commerce or at any of its regional offices. A commercial invoice that includes freight
and insurance, C.I.F. price, net and gross weight, and an invoice number must
accompany the license application. Customs accepts commercial invoices by fax. The
license, once granted, is normally valid for six months, but may be extended if
adequately justified.
Goods shipped to a Spanish customs area without proper import licenses or
declarations are usually subject to considerable delay and may run up substantial
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demurrage charges. Prior to making shipments, U.S. exporters should ensure that the
importing party has obtained the necessary licenses. Also, U.S. exporters should have
their importer confirm with Spanish customs whether any product approvals or other
special certificates will be required for the shipment to pass customs.
Import Documentation
 Non-agricultural Documentation
The official model for written declarations to customs under "normal procedure" is
the Single Administrative Document (SAD). European Free Trade Association (EFTA)
countries including Norway, Iceland, Switzerland, and Liechtenstein also use the SAD.
Goods brought into the customs territory of the Community are, from the time of entry,
subject to customs supervision until customs formalities are completed.
Goods presented to customs are covered by a summary declaration, which is lodged
once the goods have been presented to customs.
The summary declaration is to be lodged by:

• The person who brought the goods into the customs territory of the Community or by
any person who assumes responsibility for carriage of the goods following such entry;
or
• The person in whose name the person referred to above acted.
Non-EU goods presented to customs must be assigned a customs-approved treatment
or use authorized for such non-Community goods. Where goods are covered by a
summary declaration, the formalities for them to be assigned a customs-approved
treatment or use must be carried out:
• 45 days from the date on which the summary declaration is lodged in the case of
goods carried by sea;
• 20 days from the date on which the summary declaration is lodged in the case of
goods carried other than by sea.
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C. International Business Opportunity Analysis
1. Economic, Political and Legal Analysis of the Trading Country

Spain’s economic freedom score is 69.9, making its economy the 39th
freest in the 2021 Index. Its overall score has increased by 3.0 points, primarily
because of an improvement in government integrity. Spain is ranked 24th among
45 countries in the Europe region, and its overall score is below the regional
average but above the world average.
The Spanish economy remained only moderately free again this year. To
make the jump back into the mostly free category from which it fell nine years
ago, Spain needs to concentrate on reducing the size and cost of government. If
government spending and related sovereign borrowing were cut, and if the labor
market were liberalized, the private sector would have a good chance to boost
growth and employment.
IMPACT OF COVID-19: As of December 1, 2020, 45,511 deaths had been

attributed to the pandemic in Spain, and the economy was forecast to contract by
12.8 percent for the year.
Rule of Law
Property rights are protected by law. The property registration system functions
efficiently. The judicial system is independent, open, and transparent but sometimes
overburdened and slow. Case backlogs are often long. Concerns about official
corruption often center on party financing. Spain is ranked 30th out of 180 countries in
Transparency International’s 2019 Corruption Perceptions Index, but its overall score
(62) is one of the lowest in Western Europe.
Government Size
The top individual income tax rate is 45 percent, and the top corporate tax rate is
25 percent. Other taxes include a value-added tax. The overall tax burden equals 34.4
percent of total domestic income. Government spending has amounted to 41.6 percent
of total output (GDP) over the past three years, and budget deficits have averaged 2.7
percent of GDP. Public debt is equivalent to 95.5 percent of GDP.
Regulatory Efficiency
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Spain lags in development of business freedom compared to many other

countries, continuing a downward trend that began in 2014. The duality of the labor
market, composed of permanent workers with full benefits and temporary workers with
fewer benefits, is an economic risk. According to the World Bank, subsidies and
transfers account for about two-thirds of the government’s annual budget.
Open Markets
As a member of the EU, Spain has 45 preferential trade agreements in force.
The trade-weighted average tariff rate (common among EU members) is 3 percent, with
639 EU-mandated nontariff measures in force. Most sectors are open to foreign
investment, and capital movements have been liberalized. The financial sector’s overall
condition continues to improve. Use of banking services is nearly universal in the adult
population.
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There are five products of LT Group and these are beverage, tobacco, distilled
spirits, banking, and real estate. Below are the economic information on the five
industries in Spain:
• Beverage
In Spain, as evidenced by the 2020 Economic Report of the Spanish Federation of Food
and Beverage Industries (FIAB), the food and beverage sector has shown great
resilience to the impact of the pandemic, demonstrating that it can lead change for the
economic and social recovery of the country. The real production of the sector, despite
being affected by the tourism blockade, amounted to 129,854 million euros with a
decrease of -5.3% compared to 2019, lower than that of the Spanish economy as a
whole (-11%). On the other hand, household consumption increased sharply, which for
confinement measures recorded a rebound of 16.15% with an average per capita
expenditure of approximately 1,610 euros.
• Tobacco (Cigarette)
In Spain, an average of 24 percent of the population reported to smoke in 2020, with 22
percent of them being daily smokers. Former smokers accounted for a quarter of the
population, whereas slightly over half of Spaniards represented the non-smoking
community of the Mediterranean country. Over 8.6 million people were daily smokers in
Spain as of 2020, of which approximately 3.8 million were women and about 4.9 million
were men.
• Banking
The Spanish banking sector was composed, as of December 2019, of twelve banking
groups, the same as the year before, representing more than 90% of the industry.
These groups include 52 private banks, two saving banks and 61 cooperative banks.
During this year, Spanish banks have continued going deeper in the cleaning up of
balance sheets and in the construction of a strong CET1 on a fully loaded basis. As far
as the Spanish banks’ balance sheet is concerned, the total volume of both loans and
deposits has increased more than 4.7% since December of last year, including an
increase in fresh credit operations up to €446 billion for SMEs and households.
• Distilled Spirits
The distilled and spirits sector has been experiencing a slight decline in domestic sales
of between 2.5% and 3% in 2019, but exports are becoming increasingly important.
Within consumption in Spain, and according to IWSR data, whisky is the one that
reaches the highest level of premium thanks to American whisky, Irish whiskies and
Japanese whiskies. Gin is the next most important distillate in Spanish consumption,
followed by vodka, dark rum and, in last place, brandy.
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• Property Development
After five consecutive years of modest house price increases, Spain’s housing market is
cooling rapidly again, amidst an economic slump caused by the COVID-19 pandemic.
Nevertheless Spain is once again looking like a possible investment destination, as
yields rise. Spanish house prices rose slightly by 1.68% during the year to Q3 2020
(2.2% inflation-adjusted), a sharp slowdown from the previous year’s 4.68% rise,
according to the Instituto Nacional de Estadistica (INE). On a quarterly basis, house
prices increased 1.15% in Q3 2020 (1.67% inflation-adjusted).
• Level of Foreign Investments
After falling as a result of the financial crisis, Spanish FDIs recovered in recent years
due to an increase in competitiveness and investor confidence in the country. However,
according to the 2020 World Investment Report published by UNCTAD, FDI inflows
dropped to USD 12.4 billion in 2019, a decrease of 72% compared to the previous year
(USD 45 billion in 2018). Nonetheless, FDI stocks increased in 2019 to reach USD
751.5 billion. The latest figures from UNCTAD show that in 2020 FDI inflows rose by
52% compared to the year before, mostly thanks to several acquisitions (including the
U.S. private equity companies Cinven, KKR and Providence acquiring 86% of the
telecommunication company Masmovil), despite the COVID-19 pandemic outbreak
(which prompted a 69% decrease in investment inflows towards developed countries).
According to a survey from "Multinacionales por la Marca España" (an association of
multinational companies active in Spain), three-quarters of FDIs registered in the first
half of 2020 were directed towards the region of Madrid. Investments in Spain are
mainly oriented towards financial and insurance services, real estate, manufacturing,
scientific, professional, technical, administrative support service activities, wholesale
and retail trade, transportation and storage, and the energy sector. The Netherlands,
Luxembourg, the United Kingdom, France, Germany and Italy represent nearly 70% of
the FDI stock of Spain.
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2. Trade Area and Cultural Analysis

Geographic
 Southern Europe, Spain
Demographic
 Age – 18-65 years’ old
 Race – Filipinos and Spaniards
 Gender – Male and Female
 Income – 7,750 EUR – 39,000 EUR per month
 Employment – part-time to full time
Asia Brewery Inc Competitive Advantage Competitive

Products Disadvantage
Absolute Distilled Drinking Absolute brand lives up to
Water the expectation of its
customers, it is for one,
cheaper than other distilled
water brands, it is also
very much available in all
supermarkets, and even in
convenient stores
Summit Natural Drinking It is one of the most trusted
Water packaged water brands by
athletes because it boosts
concentration and athletic
edge by upping the
hydration level. In fact, in
support of the country’s
most promising
sportspersons, it is the
official bottled water of the
Philippine National
Athletes.
Cobra Energy Drink Cobra is currently the top Cobra energy drink can be
local energy drink with a considered beneficial in
50% market share and the terms
growing demand for of muscle contraction
energy drinks definitely led when given in 100%
to the emergence of concentration.
competitors both local and However, since there was
imported. no significant difference
among
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the means of fatigue time,

it can be concurred that
Cobra
energy drink is not
necessarily beneficial in
terms of muscle
fatigability. With that being
said, higher concentrations
of Cobra energy drink are
preferred since it increases
the force
of contraction.
Pascual yogurt Currently, the Company
imports yogurt from Spain
and distributes it in the
Philippine market under
the
Pascual Creamy Delight
Brand. Different variants
cater to a wide array
of customers, from
Original, Non-fat, Thick
and Creamy to Greek
Style.
As of end 2019, Pascual
Yogurt has a market share
of 36%, based on
AC Nielsen estimates and
internal data.
Vitamilk Vitamilk continued to Vitamilk and Lactasoy
dominate the soymilk focus on similar strategy,
market with 77% market like they provide many
share and has maintained types of packaging for
its position as the #2 brand same customer segments.
in the ready-todrink milk They have same product
category. With the “Pagud- type as soymilk
tom, Fills Good” campaign, distributing, in similar
Vitamilk. channels like supermarket
positions itself as the or convenient stores.
healthy and energizing
drink for the youth market.
Commencement of the
local production of Vitamilk
in one-way glass
format helped fuel brand
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growth by 22% while

controlling product costs.
The firm has used the
glass bottle for their
primary product, which is
targeting men and
secondary to women. The
firm’s product is
environmental
D. PRELIMINARY ASSESSMENT
Most important aspect that LT Group Inc. has to take into account in order to carry out
this process of internationalization:
❖ LT Group must have the right trading psychology, mindset and personality
- Trading is around 90% psychology and the rest system.
❖ And shower risk management is in place.

- View your portfolio as a whole, don't focus on an individual position and
then risk way too much on a single idea.
❖ Have a great trading system

- Psychology and mindset and even risk management amounts to nothing if
LPG have either taken onboard or developed their own trading system
that has a negative expectancy.
❖ Make sure the market is safe to trade

- Take the time to assess the market and based upon your assessment,
decide if you should even be participating in the first place.
These are some conclusions and at the same time description of actions that can wish
to proceed successfully within the foreign market.
Technical barriers to international trade
- By lowering trade barriers through negotiations among member governments,
the LTG's system also breaks down other barriers between peoples and trading
economies.
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Changes in consumer behavior

- Pandemics are not exactly a novel phenomenon strictly related to the current
modern societies as they were recorded since ancient times. Each pandemic
triggered major changes in economics, regional and global policies, social
behavior, and citizens’ mentalities as well.
Before the pandemic, consumer expectations were changing, and through digital
and technology transformation programs, banks were shifting the way they
delivered products and services to consumers. LTG should support their
customers through the crisis, both in their role transmitting government stimulus
measures, offering forbearance and emergency funding to clients and donating
to relief efforts.
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IV. PROBLEM
Faced with the COVID-19 pandemic, the world was forced to adopt strong public
health measures, such as travel restrictions, physical distancing, and self-isolation.
Prolonged periods of self-isolation, like the one imposed by the ongoing pandemic, may
have serious repercussions on people's mental health. For example, these restrictive
measures could potentially lead to an increase in the incidence of risky behaviors, like
smoking or excessive alcohol use and medical conditions due to increasing smoking
and alcohol use, as well as an increased risk of domestic violence. Furthermore,
harmful patterns of substance use, including hazardous patterns of drinking and
smoking, represent a risk during lockdowns due to the prolonged periods of self-
isolation necessary to control the transmission of the virus. Unfortunately, despite
ongoing research efforts, there is still sparse information about the impact of the
COVID-19 pandemic on substance use patterns.
The conglomerate LT Group, Inc. (LTG) is keeping a “guarded outlook” for this
year due to the projected lingering effects of the coronavirus disease 2019 (Covid-19)
pandemic. In a statement, LTG president Michael Tan said he hopes LTG’s strong 2019
results would give the conglomerate a strong foundation to weather the current crisis.
“Even as the economy restarts under different permutations of the quarantine thereafter,
LTG believes it will take a while before the Philippine economy goes back to the normal,
or to what it used to be. The key to faster recovery would be the availability of a vaccine
for Covid-19, which it hopes will be sooner than later,” Tan said during the firm’s annual
stockholders’ meeting on Tuesday. He said the effects of Covid-19 were already felt in
the first quarter of 2020, starting mid-March when the government declared an
enhanced community quarantine (ECQ), particularly by the bank, tobacco, and the
alcoholic and non-alcoholic beverage businesses. “Some plants were not allowed to
operate when ECQ was declared as the products were considered non-essential. Sari-
sari stores that play a big role in reaching consumers, were closed in some areas.
There were also liquor bans declared by some local government units,” Tan said. In
2019, LTG’s attributable net income reached PHP23.12 billion or 43 percent higher than
the PHP16.19 billion reported for 2018. Meanwhile, for the first quarter of 2020, its
attributable net income amounted to PHP6.21 billion, 41 percent more than the
PHP4.42 billion reported for the first three months of 2019. (PR)
Restrictions on alcohol sales as a response to the pandemic vary among
countries represented in our team, within a continuum that goes from total alcohol ban
to no restrictions besides those caused by physical distancing. In India, for example,
there was a nationwide alcohol ban during initial stages of lockdown, which seemed to
have led to an increased incidence of cases of alcohol withdrawal syndrome during that
time. In later stages, some states, like Delhi, implemented a “special corona fee” on all
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categories of liquor, a fee currently withdrawn. Iran had banned the marketing and
consumption of alcoholic beverages decades before the pandemic. However, rumors
about alcohol consumption as a protective factor against the virus were reported to
have led to more than 700 deaths due to methanol intoxication in that country, a
common adverse event that follows drinking homemade contaminated alcoholic
beverages. In Tunisia, a few local governors closed liquor stores in their regions.
The pandemic has led the world to recognize the need for global action in order
to support people's health and well-being. It is necessary for all countries to develop
measures that will support the entire population during this time of crisis, including
people with a substance use disorder. These measures should incorporate effective
demand, supply, and harm reduction strategies to reduce risky substance use and
substance-related harm. In regard to alcohol and tobacco, potential ways forward
include revising local alcohol and tobacco licensing systems and reducing hours of sale,
reducing availability via carry out and delivery services, promoting help seeking and
reducing stigma around it, providing sustained public health promotion campaigns, and
fostering diversion initiatives that could be conducted while observing physical
distancing. It is of the utmost importance for any strategy to be evidence informed,
locally relevant, culturally appropriate, and equitable. In other words, it is relevant and
necessary local actions that would lead to global impact, and the time for action is now.
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V. OPERATION OF THE PROPOSED BUSINESS
Organization. This is the part of the business plan that describes the following:
Type of ownership and rationale;

LTG or Lucio Tan Group is a publicly listed holding company. LT Group, Inc. is
majority-owned by Tangent Holdings Corporation that also controlled by Tan, its
ultimate parent company.
Start-up steps to form the business;
LTG Company must follow the rules for registering a Spanish subsidiary first
before proceeding to the steps to start in order to open a subsidiary in Spain, the
representatives of the parent company have to take a decision on the matter
during the general meeting of the shareholders. The resolution must be legally
translated into Spanish and must be accompanied by the certification from the
specific Spanish consulate that the foreign company really exists and it’s legally
constituted. The founders must check the subsidiary name at the Central
Mercantile Register and reserve the available name, following the standard
requirements imposed to other types of businesses that are registered in this
country and our team of consultants in company registration in Spain can offer
advice on this procedure.
With regards to the registration of a company name, which is done through the
Central Mercantile Register, one has to know that the institution will charge
specific fees. In 2021, the application for a trading name certificate will cost EUR
6, and the issuance of the certificate will cost EUR 6 as well. Parties interested in
obtaining a proof of the trade name certificate will be charged with EUR 1.5. Any
other information that is of interest to a third party on a given company will be
charged with various fees.
The step and requirements for its incorporation are the same and it takes
from 4 to 7 weeks to complete all of them:
Steps for company formation in Spain

The steps for company formation in Spain for a foreign citizen are presented below,
but foreigners can obtain in-depth information concerning these aspects from our team
of consultants:

1. Obtain an identification number for non-Spanish citizens (NIE), a step which will allow
the investors to perform the incorporation procedures;
2. Select one of the legal entities available under the Spanish commercial legislation;
3. Prepare the documents for obtaining a certification on the company’s name (investors
can provide three different possible company names);
4. Open a corporate bank account at a local bank in Spain, which will be used for
depositing the company’s minimum share capital;
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5. Draft the statutory documents of the future company and sign them in front of a public
notary;
6. Sign the public deed of incorporation; this document has to be signed by all the persons
who have the quality of shareholders in the company;
7. Apply for a tax identification number with the Spanish Tax Agency.
Procedure for Company Registration in Spain
The following procedure is considered for company registration in Spain:
Branch Office
 For opening a branch office in Spain, first the registered parent company must
take a resolution to open a branch office in Spain. This resolution has to be
supported by the board. After the board resolution is passed, then the resolution
would be followed up in the general meeting.
 Once of the agendas in the general meeting would be to open a branch office in
Spain. After this the process of opening the branch office in Spain would take
place.
 After the resolution is taken by the principal office, then the documents along with
the application have to be submitted. These documents would be notarised and
registered in the official commercial registry.
 Finally, the registration requirement would be published in the Official Gazette of
the Commercial Registry.
Limited Liability Company
 The process of company registration in Spain for registering a branch office is

different from the limited liability company.
 First and foremost, the applicant for company registration in Spain would have to
apply to the name registry for registering the name of the company. The name
registry would ensure that all the formalities are carried out with respect to
securing the name of the company. The name of the company must be unique
and not taken by any other form of company.
 After this the applicant would have to open a corporate bank account. This would
be required so that the minimum capital can be deposited in the bank account.
 Once the above step is carried out, the deed of incorporation and drafting the bye
laws of the company has to take place.
 Finally all the incorporation deed, bye laws and other documents would be filed
with the registry. The documents have to be notarised and filed with the registry
to complete the incorporation process.
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Joint Stock Company
 First and foremost, the applicant for company registration in Spain would have to
apply to the name registry for registering the name of the company. The name
registry would ensure that all the formalities are carried out with respect to
securing the name of the company. The name of the company must be unique
and not taken by any other form of company.
 After this the applicant would have to open a corporate bank account. This would
be required so that the minimum capital can be deposited in the bank account.
 Once the above step is carried out, the deed of incorporation and drafting the bye
laws of the company has to take place.
 Finally all the incorporation deed, bye laws and other documents would be filed
with the registry. The documents have to be notarised and filed with the registry
to complete the incorporation process.
 This company is allowed to issue securities to the public. This process is formally
known as an IPO.
Compliances required for Company Registration in Spain
Once the company registration process is carried out, there are several compliances
which have to be adhered. The following are the compliances which have to be
followed:
 Shareholders Meeting
Private Limited Companies and Joint Stock Companies are required to hold
shareholder meeting within the first six months of the financial year. This meeting
is carried out to vote on specific matters related to the company. This would be
approval of the accounts and voting.
 Board Meetings
Board Meetings have to be mandatorily held quarterly. In some cases, the board
meeting would be called by the members. Branch offices do not mandatorily
require to have board meetings.
 Taxes
Branch offices would have to pay corporate tax and VAT. Private limited
companies and joint stock companies would have to mandatorily pay respective
taxes. Other annual filing requirements have to be carried out by the company.
 Other registration
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Branch offices would have to register with the Commercial registry and tax
authorities. A tax identification number (NIF) would be provided to the branch
office to file the requirements related to tax. Joint Stock Companies and Private
Limited Companies would also have similar compliances, but they would also
have to secure respective business licenses. Branch offices have to annual
accounts with the commercial registry. Such annual accounts have to be
separate from the foreign entity.
Documents Required
The following documents are required for company registration in Spain:
 Deed of Incorporation
 Bye Laws of the Company
 Articles of Association and Memorandum of Association of the Company
 Information on the shareholders and directors of the company
 Organizational structure of the company.
Personnel (or functional) needs;

LT Group, Inc. engages in diversified business activities, including distilled spirits,
beverages, tobacco, property development and banking. It operates through five
segments: Banking, Distilled Spirits, Beverage, Tobacco, and Property
Development.
LT Group function is to hold the controlling stock or membership interests in

other companies, such provides banking and financial services to corporate,
retail customers, the Filipino government units and agencies. It also provides
leasing and management of residential properties, including housing projects,
industrial, commercial, urban and other kinds of real property.
Proposed staffing to handle & Brief job description

Managerial
 Chief executive Officer (CEO) - A chief executive officer (CEO) is
the highest-ranking executive in a company, whose primary
responsibilities include making major corporate decisions,
managing the overall operations and resources of a company,
acting as the main point of communication between the board of
directors (the board) and corporate operations and being the public
face of the company. A CEO is elected by the board and its
shareholders.
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 Managing Director - The managing director's responsibilities

include developing and implementing strategic plans and company
policies, maintaining an open dialogue with stakeholders, and
driving organizational success. To be successful as a managing
director you should be able to manage and advance a business's
strategic objectives.
 Executive Director - Duties for the executive director will include
managing company assets, optimizing financial operations,
providing leadership to all staff, establishing business goals,
ensuring tax compliance, advising the board of directors on
organizational activities, overseeing and streamlining daily
operations, improving staff performance, and executing special
business projects.
 Chief Financial Officer - A chief financial officer (CFO) is the senior
executive responsible for managing the financial actions of a
company. The CFO's duties include tracking cash flow and financial
planning as well as analyzing the company's financial strengths and
weaknesses and proposing corrective actions.
 Manager - Managers are the people in charge of employees and
the facilities they work for. As a manager, your job is to plan and
promote the daily schedule of employees and the business,
interview, hire, and coordinate employees, create and maintain
budgets, and coordinate with and report to senior management in
the company.
 Company Secretary - company secretary's tasks as an
administrative staff: scheduling and taking minutes in meetings,
liaising with other offices, and providing general secretarial support.
 Whole-Time Director - A whole-time director is a director rendering
his services on whole time basis to the company. Further, a whole-
time employee, when appointed as a director of the company, will
be occupying the position as the whole-time director.
Financial
 Chief Audit Executive - The chief audit executive is ultimately
responsible for the performance of the audit activity. The CAE is
obligated to the audit committee to lead the internal audit activity in
accomplishing internal audit's goals. Assessing Competency in
Internal Auditing: Structures and Methodologies.
 Deputy Chief Financial Officer - The Deputy Chief Financial Officer
will provide the leadership and direction to ensure the development
of relevant financial information, and timely financial budgeting and
planning and financial reporting for senior leadership, the WVI
board, and key stakeholders around the partnership. The Deputy
CFO will assist the CFO in managing and controlling the
organization’s financial processes, making the necessary changes
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to upgrade and improve process, policies or procedures, and

develop his/her team.
 Treasurer - is responsible for overseeing the company's budget and
investments. They also manage and work to minimize financial risk
for the company. A treasurer will supervise cash management and
support proper expenditure to promote the growth of the business.
Marketing
 Product managers - The Product Manager is responsible for the
product planning and execution throughout the Product Lifecycle,
including: gathering and prioritizing product and customer
requirements, defining the product vision, and working closely with
engineering, sales, marketing and support to ensure revenue and
customer satisfaction goals are met. The Product Manager also
ensures that the product supports the company’s overall strategy
and goals.
 Marketing researchers - A market researcher is responsible for
collecting and analyzing data information to make informed political,
social and economic decisions. Market researchers may be
employed by a company (known as client-side), where they collect
information on customer opinions, investment, and marketing
trends.
 Sales representatives - Sales representatives are responsible for
selling a company's products by identifying leads, educating
prospects on products through calls, trainings, and presentations,
and providing existing customers with exceptional support. Sales
representatives are either inside or outside sales reps. Inside sales
reps sell products over the phone and online, while outside sales
reps sell products through face-to-face meetings. Sales reps span
almost every industry.
 Pricing specialists - Pricing specialists, also known as market
research analysts, work for retail stores, determining both regular
and promotional prices for their store's products. They also address
pricing-related inquiries from a number of sources, such as buyers
and marketers.
Legal
 Chief Legal Officer - A chief legal officer (CLO) is often a publicly-
traded company's most powerful legal executive. The chief legal
officer (CLO) is an expert and leader who helps the company
minimize its legal risks by advising the company's other officers and
board members on any major legal and regulatory issues the
company confronts, such as litigation risks.
 Legal Executive - researching and preparing cases. writing legal
documents. High Court or county court work. dealing with legal
matters such as writing wills, property conveyancing, custody cases
and divorce settlements.
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 Entry Level Legal Assistant - A Legal Assistant, or Paralegal, is

someone who supports both Lawyers and Solicitors. They undergo
training and education that enables them to prepare legal
documents, handle evidence and prepare briefs. A Legal Assistant
can also work as a Licenced Practitioner and offer legal advice to
private clients.
B. Product/service. This section should include the following information:

1. Product/Service details include potential suppliers, manufacturing plans, and
inventory policies.
Heineken Group, the subsidiary in Spain has presented its contribution to the
Spanish market in figures. Specifically, from the brewery they have highlighted
that practically 100% of the more than 1 billion liters of beer that are produced in Spain
are marketed.
In tax matters, the brewery has estimated that in terms of taxes it pays 340 million
euros in Spain. While it also contributes to the wealth of the country with 1,500 jobs and
more than 109,500 indirect jobs.
The company has also ensured that 91% of raw materials and purchases from
suppliers of its four factories in Spain (Seville, Madrid, Valencia and Jaén) originate
from the local market.
A commitment to local markets, which has been guaranteed by the Director of
Corporate Relations of Heineken Carmen POnce, who has assured that will continue to
trust local suppliers and using ingredients of Spanish origin in order to continue making
beers that the world likes: society and the planet.
Philip Morris International Inc. (PMI) The Marlboro brand ranked first among
the most valuable tobacco brands of 2017 on Brand Finance's website, which uses
the royalty relief method of brand valuation.
Cigarette taxation has recently been modified in Spain. The process took place over six
months, and may be relevant for other countries. In September 2005, as financial
provisions for the National Health System were reviewed, a modest rise in tobacco
taxes was approved, bringing the ad valorem component from 54% to 54.95% and the
specific component from €3.99 to €4.20/1000 cigarettes. This was mainly due to the
2011 smoking ban, which restricted smoking in all indoor public places as well as near
to hospital or school facilities.
AB Pascual Holdings Pte. Ltd. is a 50-50 joint venture between Asia Brewery,
Inc. and Corporacion Empresarial Pascual SL of Spain. Different variants cater to a
wide array of customers, from Original, Non-fat, Thick and Creamy to Greek Style. The
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continuous success of Pascual Yogurt has paved the way for a new product launch of
yet another revolutionary product- Bifrutas.
CALIDAD PASCUAL infrastructures enable us to satisfy the needs of our clients
and consumers, favouring a strategy of sustainable growth. Based on proximity and
passion, we create a differentiating value that has a direct impact on the satisfaction of
our clients and consumers.
Potential suppliers
 ASIA BREWERY INC.
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 Heineken International
 Philip Morris International
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 Calidad Pascual
Product
CRUZCAMPO
Special gluten-free lager bottle 33 cl
Price: 1.02 €
Alcohol content: 5.6%
Ingredients:
Water, barley malt, corn, hops and hop extract. This
product does not contain gluten.
CRUZCAMPO
Spanish lager tin 33 cl
Price: 0.59 €
Ingredients
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Water, barley malt, corn, hops and hop extract. This product is made from barley malt. It
contains gluten.
CRUZCAMPO
Andalusian IPA beer bottle 33 cl
Price: 1.06 €
Ingredients:
Water, barley malt, hops and yeast. It contains fewer
calories and carbs.
Heineken
Lager beer
Price: €3 / 750ml

Alcohol content: 5%
Ingredients:
Barley, hops, water, and yeast
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Marlboro Gold 100's

Price 48.00 €
200 cigarette
Ingredient
• Tobacco • Water
• Sugars (Sucrose and/or Invert Sugar and/or High Fructose Corn Syrup)
• Propylene Glycol • Glycerol
• Licorice Extract • Diammonium Phosphate • Ammonium Hydroxide
• Cocoa and Cocoa Products • Carob Bean and Extract
• Natural and Artificial Flavors
Marlboro Gold Touch

Price 46.00 €
200 cigarette
Ingredients
• Sugars (Sucrose and/or Invert Sugar and/or
High Fructose Corn Syrup)
• Propylene Glycol • Glycerol • Menthol
• Licorice Extract • Cocoa and Cocoa Products
• Carob Bean and Extract
• Natural and Artificial Flavors
Marlboro Red
Price 50.00 €
200 cigarette
Ingredients
• Sugars (Sucrose and/or Invert Sugar and/or High
Fructose Corn Syrup)
• Propylene Glycol • Glycerol • Licorice Extract
• Diammonium Phosphate • Ammonium Hydroxide
• Cocoa and Cocoa Products • Carob Bean and
Extract
• Natural
and Artificial Flavors
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PASCUAL BI FRUTAS
Tropical fruit juice and skimmed milk drink
from concentrate carton 1 l
Price: 1.89 €
Net Quantity: 1000 Milliliters
Ingredients:
Water, Skimmed milk (10%), Fruit juice 7%
(pineapple and mango from concentrate), Sugar,
Stabilizer (Pectin), Flavor, Acidulant (Citric acid),
Vitamins C, E and A, Sweetener (Sucralose) and
Colorant (E-160a i).
PASCUAL BI FRUTAS
Ibiza Zero Fat fruit juice with milk and
vitamins, gluten-free 3-pack cartons 330 ml
Gluten-Free
Price: 2 €
Number of servings per container: 3
Ingredients
Water, Fruit juice 15% (Melon and Watermelon
from concentrate), Skimmed milk (10%),
Stabilizer (Pectin), Acidulant (Citric Acid),
Aroma, Vitamins C, E and A, Colors (E-160a i )
and Sweetener (Sucralose).
PASCUAL BI FRUTAS
Mediterranean fruit juice and skimmed milk
drink from concentrate bottle 240 ml
Price: 0.75 €
Ingredients:
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Water, Fruit and vegetable juices from concentrates (41%) (orange, peach, apple,
grape, carrot and lemon), Skimmed milk (15%), Sugar, Vegetable fibers, Carrot extract,
Natural flavors and Vitamin C Contains food allergen: milk. Allergens in bold.
2. Transportation information: costs, benefits, risks of the transportation method,

documents needed to transport the product.
Spain has a well-developed trade sector that

accounts for more than half of the country's GDP, and the
import/export sector is a vital component of the economy.
The Companies operating in the import/export sector are
required to obtain a set of permits, depending on their
specific activities.
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Value Added Tax

The standard VAT rate for importing products in Spain is 21 %, but in certain
products, a reduced VAT rate of 10% or a reduction of 4% tax apply. The VAT is
calculated on the value of the goods plus the costs of international shipping and
insurance, in addition to import tariffs.
Minimum thresholds for paying import duties and taxes
Import duties of goods in Spain are not the same than for an individual if the total
value of goods (excluding shipping and insurance) does not exceed 150 € . If the total
value of goods (excluding shipping and insurance) is not more than 22 € duties and
taxes are not paid.
[1] These percentages will be applied if its not indicated the classification that
applies to the goods
[2] Not applicable to shipments constituting commercial expeditions
Exceptions
The exception to the duty and taxes payment on import shipments are for
personal effects (clothes, books, computers , furniture … ) by reason of change of
residence . They are nontaxable and no need to pay duties and taxes if you provide that
the age of each is equal or greater than 6 months, we recommend to include invoices to
prove this to the inspections agents and avoid surprises.
Other taxes and special fees
A special tax for example to pay snuff and alcohol.
Some extra customs charges will be applied to cover the costs of conducting the
required tests and / or verification testing of imported goods.
Requirements of customs procedures in Spain
Importing to Spain various goods and products need to provide a set of legal
documents, which attest the quality of the products, their country of origin and
numerous others. When importing in Spain, companies must provide:
 A pro-forma invoice
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 A brief declaration concerning the products

 Single administrative document (SAD).
This type of document can be obtained from the Chambers of

Commerce. Companies that import goods in Spain should know that the country
applies import limitations for certain categories of products, such as weapons and other
defense equipment, farm products and iron. In order to safely import products in the
country (depending on their nature), the import company should provide
specific licenses; if such documents are not present, the import of products will not be
allowed.
Limitations of Spanish exports
A corporation completing export activities in Spain should be aware that the
country puts various restrictions on certain product categories. Any sort of war
equipment is prohibited from export, as are cultural goods and flora and wildlife on the
endangered species list.
Several taxes will be charged when products are traded from one country to another.
The customs duty, which is levied under specified criteria, is one of the taxes imposed
in this instance (depending on the tax residency of the company, as well as the types of
products that are imported into the country)
One of the most essential aspects of the customs duty is that it does not apply to
enterprises located in the European Economic Area (EEA). Customs duty is imposed on
products arriving from outside the EU and the EEA, and the tax rates might change, as
previously indicated.
In the case of industrial products, the customs duty is imposed at a rate of 4.2%, while
in the case of imports of processed food or textiles, the tax rate can increase up to
17.3%. However, companies should be aware of the fact that the tax rates can be
lowered in the situation in which they are tax residents of a country with
which Spain has signed a trade agreement.
The benefits of importing and exporting include:
 Opening new domestic markets
 Offering new products
 Reducing raw material costs
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3. Features. What are the top three features of your product/service?
 Cruzcampo
This statistic displays the leading four beer brands ranked by consumer reach in
Spain as of 2020. During this year, Mahou held the highest number of consumer reach
points with 35 million, followed by the brand San Miguel and Cruzcampo.
 Marlboro
Marlboro is the top-selling tobacco brand in Spain, with a sales value of more than
1.4 billion euros in 2020. The American brand has remained in this position while its top
competitor in the market, the Spanish brand Fortuna, dropped. Marlboro, ranked as
Spain’s favorite cigarette brand in 2020, taking up approximately 15.2 percent of
the tobacco market share that year.
 Heineken Lager Premium
The top-selling beers in Spain, according to a recent survey by consumer rights

organisation OCU, the most popular beers sold in this country have very little character,
and more or less all taste the same. There isn’t one that really stands out above any of
the others. Heineken Lager Premium is the top 10 selling beer in Spain.
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C. MARKET AND MARKETING STRATEGY PLAN.
1. Customer Segments. Who are the target customers? Describe the target market
(age, income level, population estimate, other specific demographic and economic
information), customer buying behavior related to the proposed product and/or service.
According to Armstrong and Kotler (2006) market segmentation is a process of

subdividing a market into buyers’ distinct groups with different characteristics, needs, or
behavior that required marketing programs or separate products. LT Group's main
approach to gain greater market share in the industry is by paying close attention to its
market segments. The demographic segmentation by LT Group is between 18 to 65
years of age since it is a conglomerate that offers products and services namely distilled
spirits, beverages, tobacco, banking, and property development. They belong to an
average to middle-class family that has an income level of 7,750 to 39,000 euros. Who
are students and employees in Barcelona, Spain. Behavioral segmentation shows that
price is a key determining factor of Spanish consumer behavior – and it’s changed the
way they shop. Because of the recent economic crash, they’re visiting retail stores and
supermarkets more frequently but making smaller purchases. Spanish consumer
behavior is straightforward. Brand loyalty is not a key market driver, so don’t get lost in
grandiose brand building. Instead, give the Spanish what they want: value for money
and a personal connection with what you’re selling. Achieve that and the rest will follow
(Evans, 2019). Geographically, LT Group will provide products and services
internationally in Barcelona, Spain. Ninety percent of the 5,000 foreign companies in
Catalonia are in the Barcelona area and more than half of the companies in Spain are in
Catalonia. These companies are mainly Japanese, Italian, North American, French,
Austrian, and Swiss (Barcelona. cat).
There are two products and one service that the LT Group will offer in Barcelona, Spain
and these are rubbing alcohol, e-cigarettes, and air transport service. The first one is
rubbing alcohol, during this pandemic, one of the weapons to help people prevent from
covid-19 is rubbing alcohol, many people use it and alcohol could be considered
essential during the COVID-19 pandemic, namely the diversion of beverage alcohol to
be used as a disinfectant in response to the increased demand for such products (e.g.,
hand sanitizers and household cleaning agents). Next is an e-cigarette, in Spain,
an average of 24 percent of the population reported smoking in 2020, with 22 percent of
them being daily smokers. Former smokers accounted for a quarter of the population,
whereas slightly over half of Spaniards represented the non-smoking community of the
Mediterranean country. Over 8.6 million people were daily smokers in Spain as of 2020,
of which approximately 3.8 million were women and about 4.9 million were men
(Statista, 2020). Air transport is essential in Spain's industry because it connects to
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other countries that maintain the European Union's superiority over the airline market or
industry. However, establishing air transport by the LT Company offers affordable travel
fees considering social inclusion and promoting Philippine tourism.
2. Flow of goods and services from production to the customer. It might include
inventory or storage of manufactured products, shipping, inventory control procedures,
and customer support services.
The inventory or storage manufactured products are located in the Philippines for
rubbing alcohol and e-cigarette. For e-cigarettes, the suppliers are Bombo for e liquid
and Joyetech for e-cigarette. While the rubbing alcohol is supplied by Shell, is a
specialist grade within our alcohols range of oxygenated chemical solvents. Being
produced according to Good Manufacturing Practices (GMP) for pharmaceutical
excipients, it has very high purity and can be used in a wide range of pharmaceutical,
medical and food contact applications. And for airport transportation is affiliated with
Vueling a Spanish low-cost airline whose headquarters are located at El Prat de
Llobregat, Barcelona. The shipping will be carried by Philippine Airlines since LT Group
is the parent company of PAL.
The Inventory Control Procedure outlines guidelines for controlling inventory stock for
ultimate salability, usability and traceability, and ensuring efficient selection and delivery
of products. This Inventory Control Procedure should be utilized by purchasing,
shipping, receiving, warehouse and accounting personnel.
Inventory Control Responsibilities:
 The Purchasing Manager is responsible for maintaining the investment in
inventory at the lowest level, consistent with operating requirements, economy of
procurement, financial plan requirements and sound business practices.
 The Shipping Manager, the Receiving Manager, and Warehouse Personnel are
responsible for the custody and safekeeping of inventory. This includes ensuring
that all items in inventory are properly accounted for, that proper procedures are
followed for the movement of all inventory, and that all paperwork is forwarded to
the Accounting Manager in a timely manner for the proper recording of all
inventory transactions.
 The Accounting Manager is responsible for processing all paperwork received in
a timely manner in order to maintain an accurate inventory status.
 The Controller is responsible for revaluing certain inventory items to their Net
Realizable Value and for ensuring proper inventory control.
Lastly, the customer service and customer support. The difference between customer
service and customer support is that a customer support team can fix a technical issue
in the short term, but providing good customer service helps build relationships and
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establish a true partnership in the long term. LT Group will have a customer service in
Barcelona, Spain to establish a great relationship with potential loyal customers from
the said country since it will be a new foreign company there. LT Group will also provide
customer support to help customers with installation, training, maintenance, upgrading
service, or ending service.
3. Pricing policies: what currency will be used, costs, markups, markdowns, relation to
competition, factors that could affect the price of the product such as competition,
political conditions, taxes, tariffs, and transportation costs.
A pricing policy is a standing answer to the recurring question. A systematic approach to
pricing requires the decision that an individual pricing situation is generalized and
codified into a policy coverage of all the principal pricing problems. Policies can and
should be tailored to various competitive situations. A policy approach that is becoming
normal for sales activities is comparatively rare in pricing. The currency that will be used
is euros since the international plan is in Barcelona, Spain. A markup is a difference
between the market price of security personally held by a broker-dealer and the price
paid by a customer. A markdown, on the other hand, occurs when a broker purchases a
security from a customer at a price lower than its market value. In terms of e-cigarettes,
they probably have a markup, According to Blázquez, the prevalence of electronic
cigarette consumption in Spain in 2019, broken down by type and age. The survey
concluded that 63.3 percent of the age group 35 to 44 years old electronic cigarette
smokers consumed it with nicotine. In contrast, some 45.3 percent of the age group 15
to 24-year-old electronic cigarette consumers used it with nicotine in 2019. There is also
a possibility that there will be a markup on rubbing alcohol due to the current situation.
While on the other hand, airport transport services may have a markdown due to the
pandemic. Factors that could affect the price of the product:
 The tax burden is lower and has an easy process.
The Spanish Tax Agency has a computerized system where the Tax agency can
perform most procedures and arrangements online. The tax burden supported by
all the companies established in Spain is quite reduced and remains under the
average burden of the UE-28 and the Euro Zone.
 Has a Powerful Economy
Spain has a powerful economy, the 14th largest economy in the world and top
8th in OECD. Spain is a member of the European Union; Within EU, businesses
and traders benefit from the free movement of goods, services, capital, and
people. They may also trade without tariffs and in a strong, singular currency, the
Euro.
 Competition in Spain
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“If Spain has such low levels of competitiveness, it is because its growth is
based on tourism and falling interest rates, which has allowed for reducing the
debt, the risk premium, and the indebtedness of companies, but which has not
had repercussions on productivity,” points out Gay de Liébana.
4. Promotional program: promotional activities, media availability, costs, and 1-year

promotional plan outline.
For e-cigarette
 The Internet and social media tools are used to display attractive price
promotions, competitions, and group discount vouchers;
Price is an important determinant in purchasing behavior, particularly amongst young

people, 15 and the internet presents a direct route of communication to such
audiences.16
 Celebrity endorsements and celebrity-inspired styling;

This strategy is a marketing technique, 17, and also a public relations activity to
promote trust in a product.18
 Sports Sponsorship
The research found that corporate sponsorship of sports teams leads children to
absorb corporate marketing messages and influence purchasing decisions.
For airport transportation:

 Advertisement
Having a tv commercial and hiring a celebrity model such as Enrique Iglesias, a
Spanish-Filipino singer, songwriter, record producer, and actor.
 Tourism
Spain’s impressive tourism industry has, of course, played an important role. 2018
was a record-breaking year, with over 82.6 million tourist visits – 0.9% more than in
2017 – bringing in €89,678 million. The tourism industry is the largest employer in
the country, recently surpassing the construction sector to employ 13.7% of the
working population. The sector has produced big names such as Amadeus, a travel-
oriented technology company, which was named one of Forbes's top-10 global
software companies.
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For Rubbing Alcohol:

 TV Commercial
Have tv commercial and hire a celebrity or famous doctor in Spain.
 Sponsoring tv dramas in Spain
Television has the strongest advertising impact (nearly 90% penetration), as virtually
every Spanish home has a television (99.7%). But the very many channels,
especially regional channels, make its use very expensive and only affordable to the
powerful brands relying on an excellent distribution network. Peak viewing hours are
between 2:00-4:00 p.m. and 9:00- 11:30 p.m. Dramas, reality shows, and soap
operas are especially popular.
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Have social media accounts. Social media usage is a regular daily activity for many
people in Spain. Therefore, this social media guide for Spain can be used as a helpful
tool while managing your different social media platforms. This in order to reach out to
your desired audience. This platform will hook the attention of people from Spain since
numerous Spaniards uses Facebook and other social media platforms.
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FINANCIALS
NOTES
SALES
Products Price Number of Sold Products
June July August September
Cigarette
Marlboro Red 50.00 € 1,510 2,060 5,000 4,000
Marlboro Gold 48.00 € 3,000 1,500 15,000 2,000
Marlboro Gold Touch 46.00 € 1,500 2,000 6,000 5,000
Alcoholic Beer
CRUZCAMPO
 Special gluten-
free lager bottle 1.02 € 250 250 120 250
33 cl
 Spanish lager tin 0.59 € 200 150 100 150
33 cl 1.06 € 200 180 110 200
 Andalusian IPA
beer bottle 33 cl
Heineken 3€ / 750ml 205 150 150 150
 Lager beer
Beverages 1.89 € 100 100 150

PASCUAL BI FRUTAS 250
 Tropical fruit juice
and skimmed milk 2 € 500 400 500
drink from 550
concentrate carto
n
 Ibiza Zero Fat fruit
juice with milk and 0.75 € 1,500 750 1,000
vitamins, gluten- 1,250
free 3-
pack cartons 330
ml Gluten-Free
 Mediterranean
fruit juice and
skimmed milk
drink from
concentrate bottle
240 ml
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SALES
October November December January
Cigarette
Marlboro Red 50.00 € 2,000 1,000 2,000 10,000
Marlboro Gold 48.00 € 5,000 4,000 15,000 3,000
Marlboro Gold Touch 46.00 € 3,000 5,000 1,000 4,000
Alcoholic Beer
CRUZCAMPO
 Special gluten-
33 cl
33 cl 1.06 € 200 180 110 200
 Andalusian IPA
beer bottle 33 cl
Heineken 3€ / 750ml 150 150 150 150
 Lager beer
Beverages 1.89 € 50 200 150

drink from 180
concentrate carto
n
juice with milk and 0.75 € 700 550 1,500
vitamins, gluten- 1,000
free 3-
pack cartons 330
ml Gluten-Free
 Mediterranean
fruit juice and
skimmed milk
drink from
concentrate bottle
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240 ml
SALES
February March April May
Cigarette
Marlboro Red 50.00 € 5,000 2,000 3,500 1,000
Marlboro Gold 48.00 € 2,500 1,000 5,000 500
Marlboro Gold Touch 46.00 € 5,000 500 7,000 1,200
Alcoholic Beer
CRUZCAMPO
 Special gluten-
33 cl
33 cl 1.06 € 150 180 110 125
 Andalusian IPA
beer bottle 33 cl
Heineken 3€ / 750ml 150 100 75 125
 Lager beer
Beverages 1.89 € 75 100 150

drink from 400
concentrate carton
juice with milk and
vitamins, gluten- 0.75 € 1,500 1,000
free 3- 1,400
pack cartons 330 1,750
ml Gluten-Free
 Mediterranean
fruit juice and
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skimmed milk
drink from
concentrate bottle
240 ml
SALARIES EXPENSE
Personnel Per month
Manager 4,860€
Company Secretary 1,440€
Chief Audit Executive 5,480€
Deputy Chief Financial Officer 5,360€
Treasurer 3,880€
Product managers 3,810€
Marketing researchers 1,710€
Sales representatives 1,860€
Chief Legal Officer 3,398€
Legal Executive 2,080€
Entry Level Legal Assistant 790€
TOTAL 34,668€
UTILITIES EXPENSE
Name Per month
ELECTRIC BILL 15,000€
WATER BILL 10,00€
WIFI WITH LANDLINE 1,800€
TOTAL 26,800€
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RENT EXPENSE
Per Month
Shop 1,500€
Office & Warehouse 9,200€
Total 10,700€
MARKETING EXPENSE
Time Duration Total Cost Per
Type Price Quantity
Month
MINI-POSTER 74€ 100 3 months 74€
ONLINE ADS 7585€ 6 months 7585€
FLYERS 75€ 1,000 1 month 75€
TOTAL 7734€
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Projected income statements by month for the first year’s operation

(sales, expenses, profit/loss)
Income Statement
June July August September
Sales
Cigarette 288,500€ 267,000€ 1,246,000€ 526,000€
Alcoholic- 1200.5 984.3 748 1,006
Beverage
Beverage 2,314 1,552 2,511 2,034
Total Sales 292,014.5€ 269,536.3€ 1,249,259€ 529,040€
Revenue
Expenses
Salaries 34,668€ 34,668€ 34,668€ 34,668€
Utilities 26,800€ 26,800€ 26,800€ 26,800€
Rent 10,700€ 10,700€ 10,700€ 10,700€
Marketing 7734€ 7659€ 7659€ 7659€
Total 79,902€ 79827€ 79,827€ 79,827€
Expenses
Income Before 212,112.5 197,368.3 1,169,432 449,213
Tax
Income 44,543.52 41,447.343 245,580.72 94,334.73
Tax(21%)
Net Income 167,56.98€ 155,920.957€ 923,851.28€ 354,878.27€
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Income Statement
October November December January
Sales
Cigarette 478,000€ 472,000€ 866,000€ 828,000€
Alcoholic- 1,005.5 984.3 748 1,005.5
Beverage
Beverage 1,219.5 1,190.5 1,393.5 2,408.5
Total Sales 480,225€ 474,174.8€ 868,141.5€ 831,414€
Revenue
Expense
Salaries 34,668 34,668 34,668 34,668
Utilities 26,800 26,800 26,800 26,800
Rent 10,700 10,700 10,700 10,700
Marketing 7659 7659 - -
Total 79,827€ 79,827€ 72,168€ 72,168€
Expenses
Income Before 400,398 394,347.8 795,973.5 759,246
Tax
Income 84,083.58 82,813.038 167,154.435 159,462.66
Tax(21%)
Net Income 316,314.42€ 311,534.762€ 628,819.065€ 599,783.34€
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Income Statement
February March April May
Sales
Cigarette 600,000€ 171,000€ 737,000€ 129,200€
Alcoholic- 799.5 701.7 534.8 827.4
Beverage
Beverage 1,766.75 1,339 2,433.8 1,833.5
Total Sales 602,566.25 173,040.7 739,968.6 131,860.9
Revenue
Expense
Salaries 34,668 34,668 34,668 34,668
Utilities 26,800 26,800 26,800 26,800
Rent 10,700 10,700 10,700 10,700
Marketing - - - -
Total 72,168€ 72,168€ 72,168€ 72,168€
Expenses
Income Before 602,566.25 100,872.7 667,800.6 59,692.9
Tax
Income Tax 126,538.9125 21,183.267 140,238.126 12,535.509
(21%)
Net Income 476,027.3375 79,689.433 527,562.44 47,157.391
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PROJECTED CASH FLOW BY MONTH FOR THE FIRST YEAR’S

OPERATION
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PROJECTED BALANCE SHEET, END OF THE FIRST YEAR
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PROJECTED THREE – YEAR PLAN
Year 1 Year 2 Year 3
Net Income € € €
2,655,288,900 3,723,921,530 5,315,378,35
7
Total Assets € € € 64,422,294

48,500,000.00 48,500,000.00
Total Shareholders’ € € €
Equity 48,257,500.00 620,653,588.3 498,316,720
3
Debt Liabilities € 242,500.00 € 538,117 € 526,393
Total Liabilities € € €
485,000.00
4,137,690 4,526,393
Total Assets € € €
48,500,000.00 53,769,058.88
65,526,393
Total Shareholders’ € € €
Equity 48,257,500.00 620,653,588.3
332,211,147
3
Long Term Debt € € € 6,633,441

48,500,000.00 13,769,058.88
DEBIT € € 27,538,117 € 99,633,441

25,777,052.26
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Interest Expense
Operating Cash € € €
Flow 2,655,288,900 3,723,921,530 5,315,378,35
7
A brief narrative description of the planned growth of the proposed business,

including financial resources and needs
The first year is deem to be the lowest point since the jumpstart expenses are relegated
to liabilities but as years transcend, the projected growth will escalate. The needs are
limited to the raw materials needed for the kit of each products and other miscellaneous
costs for maintenance brought by increase of product demand and changes in the
manufacture throughout the years. In ten years, the business is expected to clear debts
and other credit expenses and for following years, the business is expected to thrive as
per the probable supply and demand.
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Proposed plan to meet capital needs (The following are recommended items for
inclusion. You may select the appropriate items for your business.)
The materials for capital will be supplicated from the following internal/personal sources
and external sources:
1. Personal and internal sources
Sources of Financing
Sources of
Financing Amount
₱
Personal Investment 17,008,752,058
Owner’s capital 22,678,336,077
₱
Selling Assets 11,339,168,038
Total Financing ₱
Amount 51,026,256,173
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2. Long-term borrowing
Long-term borrowing
Sources of
Financing Amount
₱
bank loan 8,504,376,029
₱
Annual Interest for
10 years 425,218,801.45 (5%)
₱
Annual Payment 892,959,483.045
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3. External sources
Sources of Financing
Sources of
Financing Amount
₱
bank loan 8,504,376,029
Angels 11,339,168,038
₱
Leasing 5,669,584,019
Total Financing ₱
Amount 25,513,128,086
4. Repayment plans
The repayment plans is for us to borrow or loan to World Bank at 5% rate of
interest. Our estimates for revenue are an average of 1,000,000 per month
over 11 operational months for a total revenue stream of 5,000,000 a year.
After factoring in staff costs per year and operational expenses, we are left
with adequate money to securely reimburse a loan under those terms.
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Plan to repay borrowed funds or provide return on investment to equity funds
As LT Group Inc. look for value financing from financial backers to fund long
term needs, they have a drawn-out objective and expectation of assets to put
resources into development. LT Group Inc. will successfully be selling
proprietorship in their organization as a trade-off for cash. Financial debts will
be taken care of corresponding to their value in the organization, or the
measure of the business that they own dependent on venture. This can be
reimbursed rigorously dependent on the sum that they own, or it very well
may be finished by what is alluded to as favored installments.
For financial investors who gave an advance, they can just reimburse the
advance premium owed, either through planned month to month
reimbursements or as a single amount.
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VI. KEY METRICS

The key activities that must be measured are:
1. Sales Revenue
Business Goals:
 In the first three years of LTG in Spain, it will be one of the top
manufacturer of cigarettes and beverages.
 LTG Company will have a good business and company image that
will lead them to reach the top manufacturers of cigarettes and
beverages in Spain.
 As LTG Company reach their third year business operation in

Spain, their net income increases by 30%-50% comparing to their
first 2 years.
2. Managing Customers and Customer’s Satisfaction

Business Goal:
 As LTG Company will enter Spain, they will provide customer
needs and satisfaction. Expecting that it will lead the success of
their business as presented in projected income.
 LTG Company will use different platforms such as; social media,
blogs and billboards in advertising their products.
 In the 3rd year of LTG’s operation, the company will attract new
customers in different countries in Southern Europe.
3. Business Partnership
Business Goals:
 LTG Company have a successful run in business field as presented
in projected income. This will be their key to have partnership to
other business companies in Spain.
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 In the 2nd year of LTG’s operation in Spain, they will start to have
their first partnership to Repsol.
 In the 3rd year of LTG’s operation in Spain, they will have several
partnerships and looking forward to expand their business in other
countries in Southern Europe.
4. Business Expansion
Business Goal:
 In the following years of LTG’s business operation, the company
will start to have their research and business plan for expansion of
their business in other countries in Southern Europe.
 Presented in the projected income, the business will have a huge

capital that will fit in their business expansion.
 LTG Company will continue to have a partnership in every country

in Southern Europe which they choose to expand their business.

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VII. COMPETITIVE ADVANTAGE
 ASIA BREWERY INC.
The organization likewise distinguishes and assesses its rivals. These are considered
as the dangers in obtaining high portion of the overall industry and market development.
The investigation incorporates the distinguishing of the organization's real or possible
contenders, additionally its immediate and backhanded contenders, their items,
situating, portion of the overall industry and development. It likewise attempts to
discover the strength and shortcomings of their rivals. Strength-the organization needs
to know its rivals' solidarity since this data could assist the organization with
accomplishing more or if it's a technique or qualities, they may embrace it for better
improvement and acquire benefit. Shortcomings the organization has likewise to know
the contenders' shortcomings for them to make a benefit by assaulting their rivals in that
feeble part of theirs.
 Heineken International
Inside the worldwide lager market today, Heineken International (or in Dutch: N.V.) is
one of the genuine pioneers, ruling the business through key worldwide marking. The
ramifications of making a worldwide brand rise above to something other than items,
and can be found in the buying conduct of shoppers. In a market where there are many
close substitutes and various related dangers, Heineken has fabricated a solid stage
with which it utilizes Corporate Social Responsibility (CSR) as a moderation instrument
and as brand protection. Like other solid worldwide brands, the Dutch fermenting
organization uses a multi-brand portfolio with more than 250 brew and juice brands.
This has been the consequence of longer than a hundred years of firm extension and
obtaining methodologies. With an enormous interest in celebration sponsorship,
altruistic occasions, and wearing rivalries, the Heineken brand name has created
numerous and vital optional brand affiliations. Through the organization's worldwide
presence in pretty much every mainland, the brand has accomplished first mover
benefits and subsequently upper hands. Making and keeping a worldwide brand is no
simple accomplishment, including numerous administrative ramifications like expenses
of a worldwide versus neighborhood direction. In any case, Heineken N.V. has
effectively settled its worldwide image to cover uncountable business sectors, utilizing
CSR as a danger moderation apparatus, making it an expert of the global brew industry.
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 Philip Morris International
For Philip Morris International, the Competitive Advantage is measured with the
following five factors and a rating from -6(worst) to -1(best):
• Product Quality
• Market Share
• Brand and Image
• Customer Loyalty
• Product Lifecycle
Philip Morris International spotlights on giving top notch items. The firm is known for
selling the absolute best tobacco items on the planet. PMI acquired a score of - 1 on the
Product Quality factor. Having the most noteworthy income and benefit of the top level
transnational firms (this rejects CNTC who sells practically the entirety of their items in
China), a score of - 1 is given to PMI on the Market Share factor. The Brand and Image
factor is scored as - 1 since the Marlboro brand is perhaps the most unmistakable
brands on the planet and Philip Morris is the most conspicuous organization of "The Big
Five". PMI additionally acquired a - 1 on the Customer Loyalty factor as clients are
happy with the item quality, consistency, wellbeing and, eventually, are faithful to the
PMI brand they smoke. The easing back of income development and the age of the
show more substance.
• Return on Assets
• Leverage
• Liquidity
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• Revenue
• Profit
Philip Morris International spotlights on giving excellent items. The firm is known for
selling the absolute best tobacco items on the planet. PMI procured a score of - 1 on the
Product Quality factor. Having the most noteworthy income and benefit of the top level
transnational firms (this prohibits CNTC who sells virtually the entirety of their items in
China), a score of - 1 is given to PMI on the Market Share factor. The Brand and Image
factor is scored as - 1 since the Marlboro brand is perhaps the most unmistakable
brands on the planet and Philip Morris is the most conspicuous organization of "The Big
Five". PMI additionally acquired a - 1 on the Customer Loyalty factor as clients are
happy with the item quality, consistency, and well-being and, at last, are faithful to the
PMI brand they smoke. The easing back of income development and the age of the.
Show more substance.
 Calidad Pascual
Quality Pascual shared with leaders from various sectors in Madrid, how the
implementation of sdgEagle solution has enabled them to improve the analysis of
business indicators to gain competitive advantage in the marketplace.
 Flexible and disruptive information analysis to generate knowledge and value,

improving decision -making at all levels of the organization.
 Empowers sales teams with ease of use, performance and access via mobile
devices.
 Reduces time spent on tasks of information processing that do not add value to
the business.
 Improving the process of monitoring and detection of areas for improvement in
key lever and brand customers.
 Increase transparency in the systematic analysis of the business, improving
collaboration between different profiles of the organization.
 Optimizes the effectiveness and commercial efficiency through the anticipation of
opportunities.
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VIII. CONCLUSION
In Conclusion, LT Group has grown and expanded to include businesses in different

industries with different challenges. In the journey of LT Group to sustainability, LT Group
recognizes these unique challenges as opportunities for them to show their skill and
capability in meeting these challenges and create long-term value for their stakeholders.
The journey of LT Group to creating value would not be complete without customers. The
way a business communicates to its customer is an important aspect of doing business and
by listening to them, it will be able to understand its businesses better and be able to move
forward and grow in unprecedented ways. Learn about the changing market, developing
preferences, and recurring new trends by listening to do business and create products and
services that LT group customers need. Some of their products have become homegrown
brands that they can truly be proud of, like the Tanduay that became the number 1 best
rum.
The LT Group plan is to start a new business venture in an international setting. As a Holding
Company, LT Group was going to offer two products and services in Barcelona Spain, these
are rubbing alcohol, e-cigarettes, and air transport service. Since Spain has the strengths
that possessed for LT Group. LT Group is a very profitable business and successfully
maintains a strong presence and dominant position in industry here in the Philippines, it will
be a great foundation for LT Group company to introduce themselves internationally.
Over the years, the LT Group remained true of excellence to look for innovative ways to
provide quality products and services that satisfy more of their customers and they will
continue to create new and better value to offer for their customers.
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FUNDING REQUEST
LT Group Company
11th Fl Unit 3, Bench Twr, 30t Corner Rizal Dr, Crescent Prk Taguig, 1634 Philippines
1630
July 05, 2021
International Finance Corporation

World Bank Group
26th Floor, One Global Place
Taguig City, Kalakhang Maynila 1634
Re: Business loan request for € 750,000
Dear World Bank Group
The aim of this letter is to request a business loan in the amount of € 750,000 for the
purpose of new venture in Barcelona, Spain. Our business, LT Group, Inc. is a successful and
well-established company, which is part of the food and beverages industry.
LT Group, Inc. began operation in May 27, 1937 and has shown consistent growth over the
years. Our business is structured as a publicly listed Holding Company.
We have completed preliminary market research, and we have seen increased demand for
beverages and affordable products. Most of its products are energy drinks. We want to
produce more and ensure that products have good quality that gives more satisfaction to
our customers. These are made possible by the company's strong internal research and
development, marketing team, and supply chain. As a result, we're looking for funds to help
us expand our company.
This business growth opportunity is immediate but will require more funding up front than
our cash flow can currently accommodate. We do not currently have access to a lump sum
large enough to make the initial purchase, despite the fact that making monthly installments
with interest over time will fit comfortably into our budget. This loan in the amount of €
750,000 will allow us to purchase our company's needs right away, allowing us to start
generating revenue and repaying the debt right away.
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PROJECTED CASH FLOW BY MONTH FOR THE FIRST YEAR’S OPERATION
Based on strong financial documents and our equally strong credit score, we feel that LT
Group, Inc. will be a safe credit risk for your bank.
Please take a moment to review this request letter and the accompanying financial
documents. If you feel that you can help our company, we would love to hear from you.
Sincerely,
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IX. Bibliography
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Joaquin, J. J., Biana, H. T., & Dacela, M. A. (2020, October 22). The Philippine Higher
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Agarwal, S., & Dewan, J. (2020). An Analysis of the Effectiveness of Online Learning in
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Scagnoli, N. I., Choo, J., & Tian, J. (2019, August 31). Students' insights on the use of
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Mallillin, L. L. D., Carag, E. A., Mallillin, J. B., & Laurel, R. D. (2020, November 1).
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students. European Journal of Open Education and E-learning Studies, 5(1).

https://oapub.org/edu/index.php/ejoe/article/view/3117
Enkin, E., & Mejías‐Bikandi, E. (2017, June 02). The effectiveness of online teaching in
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Fabito, B. S., Trillanes, A. O., & Sarmiento, J. R. (2020, November 20). Barriers and
challenges of computing students in an online learning environment: Insights from one
private university in the Philippines. arXiv preprint arXiv:2012.02121.
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Francisco, C. (2020, November 11). Effectiveness of an online classroom for flexible

learning. International Journal of Academic Multidisciplinary Research (IJAMR), 4(8),
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Baticulon, R. E., Sy, J. J., Alberto, N. R. I., Baron, M. B. C., Mabulay, R. E. C., Rizada,
L. G. T., ... & Reyes, J. C. B. (2021, February 24). Barriers to online learning in the time
of COVID-19: A national survey of medical students in the Philippines. Medical science
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Resurreccion, P. F. (2018). Understanding the blended learning readiness of students

of a State University in Southern Philippines. Editorial Staff, 367.
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327828853_Satisfaction_of_Website_Visitors_about_Mushrooms_Products_Website_in
_Community_Enterprise_at_Prachaupkirikhan_Province/links/
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Products-Website-in-Community-Enterprise-at-Prachaupkirikhan-
Province.pdf#page=386
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X. APPENDIX
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New Era University
Jeffrey Bryan R. De Guzman Rolando Mercader II Jyan Filbert D. Juntilla
Gemima Glory Postrano Raquel S. Ocampo Claudette Q. Lirio
Kristine Abigail E. Ramos Faith Jilliane P. Servan
102
New Era University
The day we’ve been grouped, we started to choose a company that will give us
an advantage specially in gathering information. It was hard for us to choose a company
knowing that the first companies that we chose have been taken already by other
groups. The group decided to choose the LTG Company and later on that day, the
group leader assigned each part of the first two chapters of the business proposal to the
group members. We faced a lot of difficulties in doing our proposal because of the
restrictions and problems of the group. Some of us has a problem in internet connection
and electricity interruption that’s why we’re not able to finish the assigned task to us. At
the time of consultation, there are parts that needs a revision because of the insufficient
information. We decided to set a meeting to check our proposal, eventually, most of the
group cannot attend the meeting because of their personal and church duties. Another
problem of our group was, one of our group mate didn't do the part that was given to her
and give us an invalid reasons. It was unfair to us because we did our best to finish our
parts while she wasn't doing what was assigned to her so we decided to remove her
from the group. But before we decide to remove her, we ask to our monitor to tell to our
professor and what we should do in our case. Gratefully, we are able to finish our
business proposal and we are ready to present.
103
New Era University
104

LTG Company

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New Era University

INTERNATIONAL BUSINESS PLAN

DE GUZMAN, JEFFREY BRYAN

DELA CRUZ, ELAIZA FAYE (INACTIVE)

JUNTILLA, JYAN FILBERT

POSTRANO, GEMIMA GLORY

RAMOS, KRISTINE ABEGAIL

SERVAN, FAITH JILLIANE

International Business Opportunity Analysis 35

Operation of the Proposed Business 49

Market and Marketing Strategy Plan 67

LT Group of Company is involved in a variety of industries like food,

as “Tanduay Distillers, Inc.” and hereafter referred to as “TDI,” a producer of

distilled spirits) through a share swap with Tangent Holdings Corporation

(“Tangent” or the “Parent Company”) --the swap result on an increase of

corporate name to “Tanduay Holdings, Inc.” As the company expands its

business, they become diversified and invest in the industry of beverage,

tobacco, property development, and banking businesses.

region, specifically in Spain. The company wants to start distributing their

product throughout the Spanish region, where we want to introduce our

businesses that can provide them new distribution.

manufacturers of cigarettes and beverages in Spain. Second, managing

customers and customer’s satisfaction because LTG Company will enter

lead the success of their business as presented in projected income. Third,

business partnership because of having a successful run-in business field as

presented in projected income. This will be their key to have partnership to

in Southern Europe which result in their 3-year projected income of

MISSION AND VISION OF LT GROUP, INC

Anchored to its Mission and Vision, the LT Group commits:

 To increase stockholder values through long-term growth in its major business

ABOUT LT GROUP, INC

LT GROUP, INC COMPANY VENTURE

LT Group is a conglomerate business active in tobacco, through its Fortune

LT GROUP, INC COMPANY DEVELOPMENT WORK

LT GROUP, INC COMPANY PRODUCTS & SERVICES

 Distilled Spirits— The Corporation’s wholly-owned subsidiary, TDI, is the third-

 Property Development— The Corporation conducts its property development

LT GROUP, INC THE PRODUCT(S) AND/OR SERVICE(S), INCLUDING PATENT,

• The Company’s primary purpose is to engage in the acquisition by purchase,

Patent, copyright, or trademark status.

• Property Development- As of December 31, 2014, the Intellectual Property

LT GROUP, INC COMPANY LOCATION

Company information. (n.d.). Retrieved April 19, 2021, from

IS THE BUILDING LEASED OR OWNED? (STATE THE TERMS.)

WHAT OFFICE EQUIPMENT WILL BE NEEDED?

• Computer technology, printer, scanner, photocopy, office furniture, telephone and

WILL THIS EQUIPMENT BE PURCHASED OR LEASED?

• Purchased all the equipment needed.

Proposed Country: Spain, Barcelona

 Has a Powerful Economy

1. Collaboration or partnership with well-known businesses.

It would be an excellent opportunity to achieve both internal and external goals

1. FC Barcelona – is a football team that can be

2. Produce new line of rubbing alcohol

1. Shell - is a specialist grade within our alcohols range of oxygenated chemical

3. Substitute e-cigarettes in regular cigarettes Or Add e-cigarettes in tobacco

E-cigarettes are sometimes called “e-cigs,” “vapes,” “e-hookahs,” “vape pens,”