STRAMA paper
STRAMA paper
I. Executive Summary
I. Executive Summary
Human Nature (Gandang Kalikasan, Inc.) is a pioneering social enterprise in the Philippines,
renowned for its commitment to producing natural and organic personal care products. Established
in 2008 by Anna Meloto-Wilk, Camille Meloto, and Dylan Wilk, the company operates on the
foundational principles of being Pro-Philippines, Pro-Poor, and Pro-Environment. This strategic
management paper provides an in-depth analysis of Human Nature's current strategic position and
offers recommendations for future growth and sustainability.
Company Overview
The research methodology employed in this paper combines both qualitative and quantitative
approaches. Data was gathered from primary sources, such as interviews with key stakeholders, and
secondary sources, including company reports, industry publications, and academic journals.
Analytical tools such as SWOT analysis, PESTEL analysis, and Porter’s Five Forces were utilized to
evaluate the company's strategic position and identify areas for improvement.
Environmental Analysis
The PESTEL analysis reveals that Human Nature operates in a favorable political environment, with
government support for social enterprises and sustainable practices. Economically, the growing
middle class and increasing consumer awareness of natural products present significant
opportunities. Social trends indicate a rising demand for eco-friendly and ethically produced goods.
Technological advancements in green chemistry and sustainable manufacturing benefit Human
Nature's product development. The company's commitment to environmental sustainability aligns
with global trends, and compliance with international standards enhances its reputation.
Industry Analysis
Porter’s Five Forces analysis indicates that the threat of new entrants is moderate due to high initial
investment and the need for sustainable sourcing. The bargaining power of suppliers is low, as
Human Nature sources raw materials from multiple local farmers. The bargaining power of buyers is
moderate, with increasing consumer choices in natural products. The threat of substitutes is high,
with numerous alternatives in the personal care market. Industry rivalry is high, with competition
from both local and international brands.
Company Analysis
The SWOT analysis highlights Human Nature's strengths, including a strong brand reputation, ethical
business model, diverse product range, and loyal customer base. However, the company faces
weaknesses such as limited international presence and dependency on local raw materials.
Opportunities for growth include expansion into international markets, product line diversification,
and partnerships with other social enterprises. Threats include intense competition, economic
fluctuations, and potential supply chain disruptions.
1. Market Expansion: Enter new international markets, particularly in ASEAN and North America.
2. Product Innovation: Develop new product lines that cater to emerging consumer trends.
Prioritizing these strategies involves focusing on market expansion and digital transformation to
enhance customer engagement and sales. Continuous product innovation and strengthening
sustainability efforts will help maintain the company’s ethical brand image.
Recommendations
Human Nature's mission is to be the leading social enterprise in the Philippines, providing high-
quality, natural products while uplifting communities and protecting the environment. The vision is a
world where businesses prioritize people and the planet, creating sustainable and inclusive growth.
Proposed strategies include expanding internationally, enhancing digital presence, innovating
product lines, and strengthening sustainability practices. Departmental programs should focus on
marketing, R&D, operations, and HR to support these strategies. Regular reviews and stakeholder
feedback will ensure the effectiveness of the strategies and continuous improvement.
Pamantasan ng Lungsod ng Muntinlupa
Brgy. Poblacion, Lungsod ng Muntinlupa
Graduate Studies
Research Design
The research design for this strategic management paper on Human Nature (Gandang Kalikasan, Inc.)
employs a mixed-methods approach, combining both qualitative and quantitative research methods.
This approach ensures a comprehensive analysis of the company's strategic position, internal and
external environments, and potential growth opportunities.
2. Surveys: Online surveys were distributed to a sample of Human Nature's customers and
employees to gather quantitative data on customer satisfaction, employee engagement, and
perceptions of the company's products and services.
Secondary Data
1. Company Reports: Annual reports, sustainability reports, and other official documents
published by Human Nature.
2. Industry Publications: Articles, market research reports, and industry analyses related to the
natural and organic personal care products sector.
3. Academic Journals: Peer-reviewed articles and case studies on social enterprises, sustainable
business practices, and strategic management.
4. Websites and Online Databases: Information from reputable websites, such as the company's
official website, industry associations, and government agencies.
Analytical Tools
Several analytical tools were utilized to assess Human Nature's strategic position and identify areas for
improvement:
1. SWOT Analysis: This tool was used to identify the company's strengths, weaknesses,
opportunities, and threats.
2. PESTEL Analysis: This framework helped analyze the external environment, including political,
economic, social, technological, environmental, and legal factors.
3. Porter’s Five Forces: This model was employed to evaluate the competitive forces within the
industry and their impact on Human Nature's strategic position.
4. Quantitative Strategic Planning Matrix (QSPM): This tool was used to prioritize strategic
initiatives based on their attractiveness and feasibility.
Research Process
2. Data Collection: Primary and secondary data were collected using the methods outlined above.
3. Data Analysis: The collected data were analyzed using the analytical tools mentioned, and the
findings were synthesized to develop strategic recommendations.
4. Validation: The findings and recommendations were validated through feedback from industry
experts and key stakeholders within Human Nature.
Ethical Considerations
The research adhered to ethical guidelines to ensure the integrity and credibility of the study:
1. Informed Consent: Participants in interviews and surveys were informed about the purpose of
the study and provided their consent to participate.
2. Confidentiality: The confidentiality of participants' responses was maintained, and data were
anonymized to protect their identities.
3. Transparency: The research process and findings were transparently documented, and any
potential conflicts of interest were disclosed.
Limitations
1. Sample Size: The sample size for interviews and surveys may not be representative of the entire
population of stakeholders.
2. Data Availability: Access to certain proprietary information and internal documents may be
restricted.
3. Subjectivity: Qualitative data analysis may be subject to researcher bias, although efforts were
made to minimize this through triangulation and validation.
Pamantasan ng Lungsod ng Muntinlupa
Brgy. Poblacion, Lungsod ng Muntinlupa
Graduate Studies
Overview
Human Nature (Gandang Kalikasan, Inc.) is a leading social enterprise in the Philippines, renowned for its
commitment to producing natural and organic personal care products. The company was founded in
November 2008 by Anna Meloto-Wilk, Camille Meloto, and Dylan Wilk. Human Nature operates on the
principles of being Pro-Philippines, Pro-Poor, and Pro-Environment, aiming to uplift communities and
promote sustainable living
Human Nature traces its beginnings to a vision of creating high-quality, Philippine-made natural
products that would restore productivity to the land and impoverished communities. The founders were
inspired by the abundance of natural resources in the Philippines and the potential to transform the
quality of life for the poorest sectors through sustainable business practices
2
.
Product Range
Human Nature offers a diverse range of products, including skincare, haircare, and home care items. All
products are made from locally sourced, natural ingredients such as citronella, coconut oil, and
lemongrass. The company is committed to ensuring that its products are safe, effective, and
environmentally sustainable
Human Nature is dedicated to ethical business practices and social responsibility. The company sources
raw materials from rural low-income communities at above-market prices and provides livelihood
training, farming, and processing equipment. This approach not only supports local farmers but also
ensures the sustainability of the supply chain
In 2011, Human Nature became the first cosmetics brand in the Philippines to earn the Cruelty-Free seal
of approval from the People for the Ethical Treatment of Animals (PETA). The company has also received
numerous awards for its commitment to social entrepreneurship and sustainability
Since its inception, Human Nature has grown rapidly, expanding its product line and market reach. The
company has established a strong presence in the Philippines and has begun exploring international
markets. Human Nature's manufacturing plant in Canlubang, Laguna, upholds the highest standards in
production and quality control
Human Nature's dedication to its core advocacies has earned it recognition both locally and
internationally. The company was the first in Southeast Asia to win the Sustainability Pioneer Award in
Organic Monitor's 2016 Sustainable Beauty Awards
Current Status
As of 2025, Human Nature continues to lead the market in genuinely natural cosmetics and
personal/home care products in the Philippines. The company employs approximately 325 people and
generates an annual revenue of $9 million
. Human Nature remains committed to its mission of providing high-quality, natural products while
uplifting communities and protecting the environment.
PESTEL Analysis
Political Factors
1. Government Support: The Philippine government has implemented various reforms to support
social enterprises and sustainable practices. This creates a favorable regulatory environment for
Human Nature, allowing the company to thrive and expand its operations
Economic Factors
1. Economic Growth: The Philippine economy has shown resilience and growth despite global
economic challenges. This growth provides a stable market for Human Nature's products
2. Consumer Spending: Increasing disposable income among the middle class has led to higher
demand for natural and organic products, benefiting Human Nature
3. Pandemic Impact: The COVID-19 pandemic initially disrupted supply chains and reduced
consumer spending. However, the demand for health and wellness products, including natural
personal care items, has since increased
Social Factors
1. Consumer Awareness: There is a growing awareness and preference for eco-friendly and
ethically produced goods among consumers. Human Nature's commitment to natural and
sustainable products aligns well with these consumer trends
1
2. Community Engagement: Human Nature actively engages with local communities, providing
livelihood opportunities and supporting social development. This strengthens the company's
social impact and brand loyalty
Technological Factors
1. Digital Transformation: Advances in digital technology have enabled Human Nature to enhance
its online presence and e-commerce capabilities. This has improved customer reach and
convenience
Environmental Factors
1. Climate Change: Climate change poses a significant risk to agricultural production, which can
affect the supply of raw materials for Human Nature's products. The company mitigates this risk
by working with resilient farming practices and diverse sourcing
Legal Factors
1. Intellectual Property: Human Nature ensures the protection of its intellectual property,
including trademarks and product formulations, to maintain its competitive edge
1
.
2. Compliance: The company complies with international standards, such as PETA’s cruelty-free
certification, which enhances its credibility and marketability
V. Industry Analysis
The threat of new entrants in the natural and organic personal care products industry is moderate.
While the market is attractive due to increasing consumer demand for eco-friendly and sustainable
products, there are significant barriers to entry:
High Initial Investment: Establishing a brand in this industry requires substantial investment in
research and development, marketing, and sustainable sourcing
Brand Loyalty: Established brands like Human Nature have built strong customer loyalty through
their commitment to quality and sustainability, making it challenging for new entrants to gain
market share
Diverse Sourcing: Human Nature sources raw materials from multiple local farmers, reducing
dependency on any single supplier
Partnerships: The company has established strong partnerships with farming communities,
providing them with training and fair trade practices, which helps in maintaining a stable supply
chain
Brand Differentiation: Human Nature's strong brand reputation and commitment to ethical
practices help in retaining customers and reducing price sensitivity
4. Threat of Substitutes
Alternative Products: There are numerous alternatives in the personal care market, including
synthetic products and other natural brands
Consumer Preferences: Shifts in consumer preferences towards different types of personal care
products can impact demand for Human Nature's offerings
5. Industry Rivalry
Competitive Market: The natural and organic personal care products market is highly
competitive, with both local and international brands vying for market share
1. Growing Demand for Natural Products: There is a rising consumer preference for natural and
organic personal care products, driven by increased awareness of health and environmental
issues
1
2. Sustainability Focus: Consumers are increasingly looking for brands that prioritize sustainability
and ethical practices. Human Nature's commitment to these values positions it well to capitalize
on this trend
3. Digital Transformation: The shift towards online shopping and digital marketing presents
opportunities for Human Nature to expand its reach and enhance customer engagement
through e-commerce platforms
4. International Expansion: Expanding into international markets, particularly in ASEAN and North
America, offers significant growth potential for Human Nature
Challenges
1. Supply Chain Disruptions: Climate change and other environmental factors can impact the
availability and quality of raw materials
3. Intense Competition: The presence of well-established international brands and new entrants
increases competitive pressure
.
Pamantasan ng Lungsod ng Muntinlupa
Brgy. Poblacion, Lungsod ng Muntinlupa
Graduate Studies
SWOT Analysis
Strengths
1. Strong Brand Reputation: Human Nature is well-known for its commitment to producing high-
quality, natural, and organic personal care products. The brand's reputation for ethical practices
and sustainability has garnered a loyal customer base
3. Diverse Product Range: Human Nature offers a wide variety of products, including skincare,
haircare, and home care items, all made from locally sourced, natural ingredients
5. Awards and Recognition: Human Nature has received numerous awards for its commitment to
social entrepreneurship and sustainability, including the Sustainability Pioneer Award in Organic
Monitor's 2016 Sustainable Beauty Awards
Weaknesses
1. Limited International Presence: While Human Nature has a strong presence in the Philippines,
its international market reach is still limited
2. Dependency on Local Raw Materials: The company's reliance on locally sourced raw materials
can be a vulnerability, especially in the face of supply chain disruptions due to environmental
factors
.
3. High Production Costs: Producing natural and organic products often involves higher costs
compared to synthetic alternatives, which can impact pricing and profitability
Opportunities
1. Expansion into International Markets: There is significant potential for growth by entering new
international markets, particularly in ASEAN and North America
2. Increasing Consumer Demand for Natural Products: The rising consumer preference for natural
and organic personal care products presents a growing market opportunity
3. Product Line Diversification: Developing new product lines that cater to emerging consumer
trends, such as wellness and eco-friendly products, can drive growth
4. Digital Transformation: Investing in e-commerce and digital marketing can enhance customer
engagement and expand the company's reach
Threats
1. Intense Competition: The natural and organic personal care products market is highly
competitive, with both local and international brands vying for market share
3. Supply Chain Disruptions: Environmental factors, such as climate change, can disrupt the supply
of raw materials, impacting production
3
Financial Performance
Human Nature has demonstrated steady financial growth over the years. As of 2025, the company
generates an annual revenue of $9 million and employs approximately 325 people
. The company's focus on sustainability and ethical practices has not only enhanced its brand reputation
but also contributed to its financial success.
Competitive Position
Human Nature holds a strong competitive position in the natural and organic personal care products
market in the Philippines. The company's commitment to quality, sustainability, and social responsibility
differentiates it from competitors. However, to maintain and enhance its competitive edge, Human
Nature must continue to innovate and expand its market reach.
Strategic Initiatives
To capitalize on its strengths and opportunities while addressing its weaknesses and threats, Human
Nature should focus on the following strategic initiatives:
1. Market Expansion: Enter new international markets to increase brand presence and revenue.
2. Product Innovation: Develop new product lines that cater to emerging consumer trends and
preferences.
Human Nature (Gandang Kalikasan, Inc.) should focus on the following strategic initiatives to strengthen
its market position, drive growth, and continue fulfilling its mission of promoting sustainable and ethical
business practices:
1. Market Expansion
Objective
Expand Human Nature's presence in international markets, particularly in ASEAN and North America, to
increase brand awareness and revenue.
Strategies
Identify Target Markets: Conduct market research to identify high-potential markets with a
strong demand for natural and organic personal care products.
Establish Distribution Channels: Develop partnerships with local distributors and retailers in
target markets to ensure efficient product distribution.
Open Flagship Stores: Consider opening flagship stores in key international cities to enhance
brand visibility and provide a direct consumer experience.
Leverage E-commerce: Utilize online platforms and digital marketing to reach international
customers and facilitate cross-border sales
2. Product Innovation
Objective
Develop new product lines that cater to emerging consumer trends and preferences, ensuring
continuous growth and market relevance.
Strategies
Research and Development: Invest in R&D to create innovative products that meet consumer
needs, such as wellness and eco-friendly items.
Consumer Feedback: Gather and analyze consumer feedback to identify gaps in the product
portfolio and areas for improvement.
Sustainable Ingredients: Focus on using sustainable and locally sourced ingredients to maintain
product quality and support local communities.
Collaborations: Partner with research institutions and industry experts to stay ahead of market
trends and technological advancements
3. Sustainability Initiatives
Objective
Enhance Human Nature's sustainability efforts to reduce environmental impact and strengthen its
ethical brand image.
Strategies
Eco-friendly Packaging: Develop and implement eco-friendly packaging solutions to minimize
waste and reduce the company's carbon footprint.
Waste Reduction: Implement waste reduction programs, including recycling and composting, to
minimize environmental impact.
Community Engagement: Continue to support local communities through fair trade practices,
training programs, and sustainable farming initiatives
4. Digital Transformation
Objective
Leverage digital technologies to enhance customer engagement, streamline operations, and expand
market reach.
Strategies
E-commerce Platform: Develop a robust e-commerce platform to facilitate online sales and
provide a seamless shopping experience for customers.
Digital Marketing: Utilize digital marketing strategies, including social media, email marketing,
and search engine optimization, to reach a broader audience.
Data Analytics: Use data analytics to gain insights into consumer behavior, optimize marketing
campaigns, and make informed business decisions
Implementation Plan
To ensure the successful implementation of these strategies, Human Nature should follow a structured
approach:
1. Set Clear Objectives: Define specific, measurable, achievable, relevant, and time-bound
(SMART) objectives for each strategic initiative.
2. Allocate Resources: Allocate the necessary financial, human, and technological resources to
support the implementation of the strategies.
3. Develop Action Plans: Create detailed action plans outlining the steps, timelines, and
responsibilities for each strategy.
4. Monitor Progress: Establish key performance indicators (KPIs) to track progress and measure
the effectiveness of the strategies.
5. Adjust as Needed: Regularly review and adjust the strategies based on performance data and
changing market conditions.
Pamantasan ng Lungsod ng Muntinlupa
Brgy. Poblacion, Lungsod ng Muntinlupa
Graduate Studies
To ensure the successful implementation of the strategic initiatives for Human Nature (Gandang
Kalikasan, Inc.), it is essential to prioritize the strategies based on their potential impact and feasibility.
The following prioritization framework will help in identifying which strategies to focus on first:
1. Market Expansion
Priority: High
Rationale
Growth Potential: Expanding into international markets, particularly in ASEAN and North
America, offers significant growth opportunities and can substantially increase revenue.
Brand Visibility: Establishing a presence in new markets will enhance brand visibility and
recognition on a global scale.
Feasibility: With the company's strong brand reputation and existing product portfolio, entering
new markets is a feasible strategy.
2. Digital Transformation
Priority: High
Rationale
Customer Reach: Leveraging digital technologies and e-commerce platforms will expand Human
Nature's reach and improve customer engagement.
Operational Efficiency: Implementing digital tools and systems will streamline operations and
enhance efficiency.
Market Trends: The shift towards online shopping and digital marketing aligns with current
consumer behavior and market trends.
3. Product Innovation
Priority: Medium
Rationale
Consumer Demand: Developing new product lines that cater to emerging consumer trends will
meet the growing demand for wellness and eco-friendly products.
Competitive Advantage: Continuous innovation will help Human Nature stay ahead of
competitors and maintain its market leadership.
4. Sustainability Initiatives
Priority: Medium
Rationale
Brand Image: Enhancing sustainability efforts will strengthen Human Nature's ethical brand
image and appeal to environmentally conscious consumers.
Implementation Timeline
Market Expansion: Conduct market research, identify target markets, and establish initial
distribution channels.
Market Expansion: Open flagship stores in key international cities and strengthen partnerships
with local distributors.
Digital Transformation: Enhance data analytics capabilities and optimize digital marketing
campaigns.
Product Innovation: Invest in R&D, gather consumer feedback, and launch new product lines.
Market Expansion: Continue to expand into additional international markets and increase
market share.
Sustainability Initiatives: Strengthen community engagement programs and further enhance
sustainable practices.
To ensure the successful implementation of the prioritized strategies, Human Nature should establish a
robust monitoring and evaluation framework:
1. Key Performance Indicators (KPIs): Define KPIs for each strategy to measure progress and
effectiveness. Examples include market share, revenue growth, customer satisfaction, and
sustainability metrics.
2. Regular Reviews: Conduct quarterly reviews to assess the progress of each strategy and make
necessary adjustments.
IX. Recommendations
A. Mission/Vision
B. Proposed Strategies
C. Departmental Programs
D. Strategy Evaluation and Control
A. Mission/Vision
Mission
To be the leading social enterprise in the Philippines, providing high-quality, natural products
while uplifting communities and protecting the environment.
Vision
A world where businesses prioritize people and the planet, creating sustainable and inclusive
growth.
B. Proposed Strategies
1. Market Expansion
Objective: Increase brand presence and revenue by entering new international markets,
particularly in ASEAN and North America.
Actions:
Conduct market research to identify high-potential markets.
Establish partnerships with local distributors and retailers.
Open flagship stores in key international cities.
Leverage e-commerce platforms for cross-border sales.
2. Digital Transformation
Objective: Enhance customer engagement, streamline operations, and expand market
reach through digital technologies.
Actions:
Develop a robust e-commerce platform.
Implement digital marketing strategies, including social media and email
marketing.
Set up a Customer Relationship Management (CRM) system.
Utilize data analytics to optimize marketing campaigns and make informed
business decisions.
3. Product Innovation
Objective: Develop new product lines that cater to emerging consumer trends and
preferences.
Actions:
Invest in research and development (R&D) to create innovative products.
Gather and analyze consumer feedback to identify gaps in the product portfolio.
Focus on using sustainable and locally sourced ingredients.
Partner with research institutions and industry experts.
4. Sustainability Initiatives
Objective: Enhance sustainability efforts to reduce environmental impact and
strengthen the ethical brand image.
Actions:
Develop and implement eco-friendly packaging solutions.
Invest in energy-efficient technologies and practices.
Implement waste reduction programs, including recycling and composting.
Continue supporting local communities through fair trade practices and training
programs.
C. Departmental Programs
1. Marketing
Launch targeted campaigns to raise brand awareness in new markets.
Utilize digital marketing strategies to reach a broader audience.
Conduct market research to identify consumer trends and preferences.
2. Research and Development (R&D)
Invest in innovative product development.
Focus on sustainable and locally sourced ingredients.
Collaborate with research institutions and industry experts.
3. Operations
Optimize supply chain management to ensure efficiency and sustainability.
Implement energy-efficient technologies and practices.
Develop eco-friendly packaging solutions.
4. Human Resources (HR)
Provide training and development programs to enhance employee skills and
engagement.
Foster a culture of sustainability and social responsibility.
Implement programs to attract and retain top talent.
D. Strategy Evaluation and Control
1. Key Performance Indicators (KPIs)
Market share
Revenue growth
Customer satisfaction
Sustainability metrics (e.g., waste reduction, energy efficiency)
2. Regular Reviews
Conduct quarterly reviews to assess the progress of each strategy.
Adjust strategies based on performance data and changing market conditions.
3. Stakeholder Feedback
Gather feedback from customers, employees, and partners to continuously improve the
strategies.
Use feedback to address any challenges and make necessary adjustments.
4. Monitoring and Reporting
Establish a monitoring and reporting system to track the implementation of strategies.
Provide regular updates to senior management and stakeholders on the progress and
outcomes of the strategies.
Pamantasan ng Lungsod ng Muntinlupa
Brgy. Poblacion, Lungsod ng Muntinlupa
Graduate Studies
X. References
Pamantasan ng Lungsod ng Muntinlupa
Brgy. Poblacion, Lungsod ng Muntinlupa
Graduate Studies