Baby Bloomers

Time Context The case beneath study covers the period of the 1980s (particularly 1987) wherein the Philippine economy is experiencing difficulty delinquent to the political turmoil.Summary A family enterprise cognize as the bungle breeches specializing in anthesised arrangement was founded in 1977. It was inspired by the trey Flowers Florists which is considered as the leading supplier of flower arrangements during the previous years. It became widely known floral trade to the market because of the imported materials they use. Also, their standardized outlet, with luxuriant national and overall air of feeling, has a great impact to the customer. This led to a large amount of currency inflows incurred by the play along, mainly because of its gamey expense being charged in their high-quality products and services. With this tremendous triumph, owners take into consideration dividing line working out.They started establishing eaterys, automobile dealership, wine importa tion business, cocktail lounge, jewelry shop, European sporting goods dealership, and stock specializing in remote-controlled toys. However, not all of the newlyly established businesses were doing withal well, except the restaurant which was moderately successful. Large amount of investments was incurred and untold of the cash in hand available were being use as working capital quite of servicing of the imparts. During 1983, a consequential challenge was faced by the enterprise, when devaluation of the sawhorse exchange rate set in. Unfortunately, expenses increase because some of their businesses were import-oriented.It became a greater liability for the nestling knickers flower 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, move businesses were eventually sold to settle the problem, leaving only the flower boutiques and the restaurant.Mission StatementTo leave behind a high-quality floral products offering imported materials, and a standardized outlets for the dodge and satisf work of our customers.To pursue business expansion of many orthogonal ventures on a lower floor the Baby Bloomers Commercial Corporation.Vision Statement To preserve the status of the company as the leading supplier of flower arrangements in the floral exertion by providing good quality products and services.I. Statement of the Objective/s The indigenous objective of the study is to assist Baby Bloomers regain its success by devoting more time and social movement in managing the money-generating flower boutiques, in order to recover the fiscal losses the company misplaces.Specific Objectives To understand the primer coat 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 bac k its normal condition and how would it recover from financial losses it suffers to maintain business soundness?III. Areas of Consideration Strengths Prestige that came with Baby Bloomers brand name Sufficient experience in the florist shop trade High pricing power Standardized outlets Strong watchfulness of flower shops Weaknesses High debt burden Rapid sequence of expansion of unrelated businesses Weak management of azoic(a) businesses Use of imported materials Opportunities International expansion New markets Baby Bloomers brand name serves as a good result to the newly-established businesses.Threats Volatile dollar exchange In hug drugse competition in new(prenominal) established enterprises Government tax regulations Bad reputation brought by enterprises not doing too well Political risksIV. Alternative Courses of Action These be the possible solutions to the problem with the corresponding advantages and disadvantages1. Not to expand floral boutiques and focussed first in managing existing ones.AdvantagesLesser expenses may incur because the company do not need to hire new employees.Mrs. Picache may have an calorie-free 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 tight in a positive order 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 lucrative flower boutiques.AdvantagesThere will be more time can be devoted in well-management of the flower boutiques because the company will be centre 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 no t necessaries which customers consumed nearly everyday.In case demand for flower arrangements decrease the company might suffer additional losses because in that respect will be no other sources of income.3. As the company regains its success, take into consideration expansion of unrelated ventures.AdvantagesAn hazard to staff new businesses with qualified people. These people can help streamline processes, bring fresh ideas to the organization.Exposing the brand name Baby Bloomers to a wider audience. This increase pool of potential customers can improve sales, resulting in increased profitability.DisadvantagesRapid sequence of business expansion can lead to declining quality of products and services.Expansion requires study financial investments that can turn sour if a company cannot march on up with the resulting obligations.May encounter the same problems faced before.V. Strategy Formulation/RecommendationWe thereof conclude that the best solution to the problem is alterna tive 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 orbit 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 cause to be spent on the preservation and improvement of the high-class quality products and services of flower boutiques which will determine a much high profit, therefrom easily regaining its success.It is also advisable that as early as possible, daughters of Mrs. Picache must be trained to continue the family business since she nearly 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 bloodline down, also the future problems they may encounter. Expansion must not be in a rapid sequence because expansion does not ever connote 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 outstanding. 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 consultant when making expansion of unrelated ventures.VII. Potential Problems1. What if Mrs. Picache has no longer 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 boutiq ues because of her age? 3. What if hurts of imported materials become doubled and Mrs. Picache 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, after 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 pricey than imported materials. 4. The company must try to come up with new ideas on how to improve its products and services to preserve the loyalty and patronage of customers to their products.