Baby Bloomers

Time Context The case under study covers the period of the 1980s (particularly 1987) wherein the Philippine economy is experiencing difficulty due to the political turmoil.Summary A family initiative known as the rape boxershorts specializing in floral arrangement was founded in 1977. It was inspired by the Three Flowers Florists which is considered as the leading supplier of inflorescence arrangements during the previous years. It became widely known floral trade to the food market because of the imported materials they use. Also, their standardized outlet, with luxuriant interior and overall air of quality, has a great contact to the customer. This led to a large amount of cash inflows incurred by the company, mainly because of its high price being charged in their high-quality products and services. With this tremendous success, owners take into devotion strain enlargement.They started establishing eaterys, automobile dealership, wine importation championship, cocktail l ounge, jewelry shop, European sporting goods dealership, and store specializing in remote-controlled toys. However, not all of the newly established businesses were doing in addition well, except the restaurant which was weakenly successful. Large amount of investments was incurred and much of the funds available were being use as working capital instead of run of the loans. During 1983, a consequential challenge was faced by the enterprise, when devaluation of the dollar exchange rate set in. Unfortunately, expenses increase because some of their businesses were import-oriented.It became a greater liability for the Baby shorts skin rash boutiques for it is the only enterprise generating high income. Many of its loans were defaulted, and since personal funds were not sufficient to meet the payment, troubled businesses were eventually sold to make up the problem, leaving only the flower boutiques and the restaurant.Mission StatementTo provide a high-quality floral products offe ring imported materials, and a standardized outlets for the convenience and satisfaction of our customers.To pursue business expansion of many unrelated ventures under the Baby Bloomers Commercial Corporation.Vision Statement To preserve the status of the company as the leading supplier of flower arrangements in the floral industry by providing good quality products and services.I. Statement of the Objective/s The primary objective of the study is to assist Baby Bloomers recall its success by devoting more time and effort in managing the money-generating flower boutiques, in order to recover the financial losses the company suffers.Specific Objectives To understand the compass of the company. To know the causes of troubled businesses. To suggest means of settling pending loan obligations. To identify businesses need to continue and discontinue operation.II. Central Problem How would Baby Bloomers bring back its normal condition and how would it recover from financial losses it suf fers to maintain business soundness?III. Areas of Consideration Strengths Prestige that came with Baby Bloomers discoloration name Sufficient experience in the florist trade High pricing power Standardized outlets Strong management of flower shops Weaknesses High debt interference Rapid sequence of expansion of unrelated businesses Weak management of other businesses Use of imported materials Opportunities International expansion New markets Baby Bloomers stain name serves as a goodwill to the newly-established businesses.Threats Volatile dollar exchange Intense competition in other established enterprises Government tax regulations stinking reputation brought by enterprises not doing too well Political risksIV. Alternative Courses of Action These are the possible solutions to the problem with the corresponding advantages and disadvantages1. Not to expand floral boutiques and focused first in managing existing ones.AdvantagesLesser expenses may incur because the company do not need to hire new employees.Mrs. Picache may have an swig time to train her daughters in order to continue the family business traditions. ImprovementDisadvantagesLetting go of the chance of successful business expansion where it can put the firm in a positive place when it comes to acquiring necessary financing.It cannot place the company in the forefront of many customers mind.Sacrificing the income coming from expansion of other boutiques.2. Foreclosed the restaurant with moderate earnings and continue to expand immensely profitable flower boutiques.AdvantagesThere will be more time can be devoted in well-management of the flower boutiques because the company will be focusing on one kind of business.Greater chance of improving and innovating their products and services because they will stick to business which the family knows best.DisadvantagesProducts of this kind of business are not necessaries which customers consumed almost everyday.In case demand for flower arrangements dec rease the company might suffer special losses because there will be no other sources of income.3. As the company regains its success, take into consideration expansion of unrelated ventures.AdvantagesAn opportunity to staff new businesses with qualified people. These people can table service streamline processes, bring fresh ideas to the organization.Exposing the brand name Baby Bloomers to a wider audience. This change magnitude pool of potential customers can improve sales, endpointing in increased profitability.DisadvantagesRapid sequence of business expansion can lead to declining quality of products and services.Expansion requires major financial investments that can turn sour if a company cannot keep up with the resulting obligations.May encounter the same problems faced before.V. Strategy Formulation/RecommendationWe therefore conclude that the best solution to the problem is alternative course of action no. 2, Foreclosed the restaurant with moderate earnings and continue to expand immensely profitable flower boutiques. Generally, expansion of unrelated ventures like the Baby Bloomers Restaurant is advantageous because of the additional income it may provide, but Picaches family area of expertise does not lie in managing that kind of business,they are specializing in floral arrangements. Foreclosure of restaurant may result to more time and effort to be spent on the preservation and improvement of the high-class quality products and services of flower boutiques which will ensure a much high profit, thus easily regaining its success.It is also advisable that as early as possible, daughters of Mrs. Picache mustiness(prenominal) be trained to continue the family business since she almost reached the age of seniority. As the company recovers, and plans to do expansion of unrelated ventures, by this time they need to be wiser, taking into consideration the past causes of their move down, also the future problems they may encounter. Expansion must not be in a rapid sequence because expansion does not always predicate additional profit because of the presence of economic and political risks. Additionally, there should be a defined reason for the expansion entering into new, potentially profitable market segments, for example.VI. Plan of Action1. Focus on incurring cash inflows to settle part of loan obligations still unpaid. 2. Devoting more time and effort in managing Baby Bloomers floral boutiques to recover from financial difficulties, thus maximizing profit. 3. Expand the number of money-generating floral boutiques and sell the restaurant. 4. Aid in first the assistance of business advisor when making expansion of unrelated ventures.VII. Potential Problems1. What if Mrs. Picache has no prolonged personal funds to cover the unpaid loan obligation? 2. What if Mrs. Picache can no longer devote much of her time to manage the flower boutiques because of her age? 3. What if prices of imported materials become doubled and Mrs. Pic ache could not offer its products in a much higher price than the usual because customers are also suffering financial difficulties? 4. What if the trend for floral arrangements enterprise decreases due to innovative culture?VIII. Contingency Plan1. The company may sell the restaurant, at the first place she hardly knows anything about restaurant management because her family is sticking to whatit knows best, the floral arrangements. 2. She may assign Mrs. Bengco to help her managing the flower shop, aft(prenominal) all Mrs. Bengco is one of her loyal employees, working for her for almost ten years. Furthermore, she has three daughters they can be trained to manage the business in the future. 3. The company must try to deal with local materials which will ensure her of the same quality products she is currently providing to her customer. Local materials are less costly than imported materials. 4. The company must try to come up with new ideas on how to improve its products and serv ices to preserve the loyalty and patronage of customers to their products.