Baby Bloomers

Time Context The suit of clothes under take on covers the period of the 1980s (particularly 1987) wherein the Philippine eco noney is experiencing difficulty due to the political turmoil.Summary A family enterprise contendn as the bollocks breeches specializing in patterned arrangement was founded in 1977. It was inspired by the Three Flowers Florists which is considered as the leading supplier of outpouring arrangements during the previous years. It became widely known patterned business deal to the market because of the merchandise materials they use. Also, their standardized outlet, with luxuriant interior and general air of quality, has a great impact to the customer. This led to a sizable amount of cash inflows incurred by the lodge, mainly because of its high price be charged in their high-quality products and work. With this tremendous success, owners take into consideration business expansion.They started establishing eaterys, railroad car dealership, wine imp ortation business, cocktail lounge, jewelry shop, European sporting goods dealership, and store specializing in remote-controlled toys. However, non all of the newly established businesses were doing too well, only the restaurant which was moderately successful. Large amount of investments was incurred and much of the funds for sale were being use as working capital instead of go of the brings. During 1983, a consequential challenge was faced by the enterprise, when devaluation of the dollar diversify rate set in. Unfortunately, expenses increase because some of their businesses were import-oriented.It became a greater liability for the Baby underdrawers unfold boutiques for it is the only enterprise generating high income. many a(prenominal) of its loans were defaulted, and since personal funds were not sufficient to meet the payment, troubled businesses were lastly sold to place the problem, leaving only the flower boutiques and the restaurant.Mission StatementTo provid e a high-quality floral products offering imported materials, and a standardized outlets for the convenience and pleasure 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 keep 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 physical object of the study is to assist Baby Bloomers regain its success by devoting more measure and effort in managing the money-generating flower boutiques, in aver to recover the financial losings the company suffers.Specific Objectives To understand the background of the company. To know the causes of troubled businesses. To suggest means of settling pending loan obligations. To signalize businesses need to continue and discontinue operation.II. Central Problem How would Baby Bloomers withdraw back its normal co ndition 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 trade High pricing power Standardized outlets Strong man historic periodment of flower shops feeblenesses High debt burden Rapid rank of expansion of unrelated businesses Weak worry of opposite businesses Use of imported materials Opportunities International expansion innovative markets Baby Bloomers brand name serves as a grace of God to the newly-established businesses.Threats Volatile dollar exchange Intense competition in other established enterprises Government tax regulations Bad reputation brought by enterprises not doing too well Political risksIV. Alternative Courses of Action These are the likely solutions to the problem with the corresponding advantages and disadvantages1. Not to expand floral boutiques and focused foremost in managing existing on es.AdvantagesLesser expenses may incur because the company do not need to hire new employees.Mrs. Picache may have an idle clipping to train her daughters in order to continue the family business traditions. ImprovementDisadvantagesLetting go of the notice 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 paid flower boutiques.AdvantagesThere will be more time can be use 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 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 decrease the company might suffer excess 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 mental faculty 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 major financial investments that can turn sour if a company cannot keep up with the resulting obligations.May encounter the homogeneous problems faced before.V. Strategy Formulation/RecommendationWe therefore cogitate 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 paid flower boutiques. Generally, expansion of unrelated ventures like the Baby Bloomers eatery is advantageous because of the additional income it may provide, but Picaches family area of expertness 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 higher profit, frankincense easily regaining its success.It is excessively advisable that as early as possible, daughters of Mrs. Picache must 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 fall down, also the fut ure problems they may encounter. Expansion must not be in a rapid sequence because expansion does not always 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 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 deceive the restaurant. 4. Aid in commencement the assistance of business consultant when making expansion of unrelated ventures.VII. authorization 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 boutiques because of her age? 3 . What if prices of imported materials become doubled and Mrs. Picache could not offer its products in a much higher price than the chronic 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, by and by all Mrs. Bengco is one of her loyal employees, working for her for almost ten years. Furthermore, she has triplet 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 services to preserve the loyalty and patronage of customers to their products.