Decorative Ceramic Manufacturers

A. Time Context

The case started when Janna Marie Company batch of decorative tiles got burned and the damage set her back financially.

B. Perspective / Viewpoint

The case will be from the perspective of Janna Marie, The owner of Decorative Ceramic Manufacturer.

C. Central Issue / Statement of the Problem

Janna Marie owns Decorative Ceramic Manufacturers where in 3 months ago she assured her client that the company will be able to deliver on the time however weeks ago a batch of decorative tiles got burned and the damage would set her back financially considering that she had almost reached the ends of her ropes. Also, Janna did not have a heart to charge the expense to the operator involved knowing that he was a working student.

D. Statement of Objectives

To be able to improve the financial position of the company
To be able to improve productivity of her company’s contractual workers To be able to improve the marketing of the company’s product.

E. Areas of consideration (SWOT ANALYSIS)

Strengths:
70% of raw materials can be sourced locally.
Ceramics manufacturing is already partly mechanized.
ISLA has been their loyal customer
Weaknesses:
Production workers has no definite job description
No standard procedure for firing or hiring workers
No organization set up
No sub functional departments
No clear purchasing policies
Quality control is not recognized
Machineries are fabricated locally.
Opportunities
Expansion of market retail stores
Products could be exported to other countries
No direct competitors
Increased productivity
Threats
Exports of ceramic products/stoneware have been steadily declining. Ceramic production is an energy intensive industry thus Power usage or cost of electricity accounts for almost 70% of the production cost. Environmental hazards

Other competitors
Quality of Products
Legal issues
Calamities

F. Conclusions

After analyzing the areas to be considered it is therefore concluded that Janna Marie Company has a poor management thus resulting to, decrease in performance, high levels of stress. Janna Marie does not a formal hiring procedures and her workers lack on the job training that will enhance their skills so as they will be well versed in the company’s operational procedures. Quality control is also not recognized and the machineries and equipments have a low maintenance. Accidents occur because of lack or absence of safety precautions and formal policies, procedures and guidelines that will control traffic of personnel and materials to and from the production site. G. Recommendations

It is recommended that Janna Marie Company should establish an organizational structure that has sub functional departments that would help manage her growing business such as: Marketing / Advertising department, financial department, Production department and Human Resource Department etc. An organizational structure would help increase the productivity of the company Workshops and trainings are also recommended to enhance the skills of the workers and avoid mishandling of machineries and accidents. The workers should also be knowledgeable about the safety precautions of the in case of emergencies and unexpected dilemmas. Giving Incentives is also necessary to boosts the morale of the workers.

References:
Learning from Small Businesses

QUALIMEATS FOODS, INC.
(Case 8)

A. Time Context

The case started in the January 2005 when deliveries to the regions had rapidly slowed down

B. Perspective / Viewpoint

The case will be from the perspective of Jerry Quitaquita the owner of Qualimeats Foods Inc.

C. Central Issue / Statement of the Problem

It’s been a year since he last met his salesman. The previous meetings were only updating sessions that lasted for 30mins or less. Beginning January 2005, deliveries to the regions had rapidly slowed down. Metro manila and Regional clients have been reducing their orders.

D. Statement of Objectives

To be able to improve the financial performance of the company To be able to think of strategies that the company can adopt to increase market share

E. Areas of consideration (SWOT ANALYSIS)

Strengths:
Demand for meat products is upswing during school terms.
The company sets its sights of wet markets
Home based business
No taxes
Low prices of products

Weaknesses:
The demand for meat products is downswing during summer
Lack of employees
Poor Organizational Structure
No regular meetings or follow ups regarding the company’s sales Lack of Marketing strategies
None exclusive dealers
Opportunities
Expansion of product distribution
Increase sales through advertising
Increasing demand for meat products

Threats
Other known competitors (Pure foods, Holiday, DO)
Animal Diseases (Ebola Virus, Hog’s Disease etc.)

F. Conclusions

After analyzing the areas to be considered, it is therefore concluded that Qualimeats Products Inc. has been experiencing a decrease in sales because of the invasion of other giant meat processing companies in towns and wet markets offering better terms to the dealers at prices way below than them. They also lack strategies on how they will market their products. Lastly Mr. Quilquita fails to conduct regular meetings in order to monitor its market sales and daily operations.

G. Recommendations

It is therefore concluded that Mr. Quilquita should start to have management improvements in his company thus making an organizational structure that has different departments such as Marketing/Advertising and Production etc. Through this he will be able to monitor the operations of the business.

ACHIEVERS’ BAG COMPANY
(Case 9)

A. Time Context

The case started over the past 3 years when the the firm has been experiencing declining sales and registered its first loss.

B. Perspective / Viewpoint

The case will be from the perspective of Mrs. Lyn Ravel, the Provincial Director of the Department of Trade and Industry of the CALABARZON and the consultant of achiever’s Bag Company.

C. Central Issue / Statement of the Problem

Over the past three years, the firm has been experiencing declining sales and registered its first loss.

D. Statement of Objectives

To be able to come up with new marketing strategies to improve the sales performance of the company To be able to think of strategies that will
improve the production system of the company

E. Areas of consideration (SWOT ANALYSIS)

Strengths:
The company’s productions are in demand in the market especially in the month of May-June, October – December. Has a consistent dealer ( Super Mall, Ever Mega Store, Macro Dealers) Attractive Brand Name

SM displays their product in an appropriate location in the store

Weaknesses:
Mr. Pino is the only salesman of the company
Has no record of the reasons for returning items
No media advertisements
No material management for procedure
The Company has not established production standard in terms of time and motion for producing each product Low maintenance for sewing machines
No written documents or manuals
Opportunities
Increase of sales when advertised
Increase in production
Expanding SM Stores
Wider range of dealers
Cheaper but high quality raw materials
Other alternative materials used for productions (cloth, canvas, artificial polyvinyl leather

Threats
Other competitors
Decrease demand of company’s products
Breakdown of Sewing machines
Legal issues

F. Conclusions

After analyzing the areas to be considered, it is therefore concluded that Achiever’s Bag Company though producing products which is in demand in the markets, has a poor management in terms of marketing and production. It is clearly stated in the SWOT Analysis that the company has only relatively simple management. As such, there have been situations when roles and responsibilities overlap. New hired workers get only one day on the job trainings. The quality of their products is based on the visual matching of the product and not on the accuracy of the work done. The Company does not advertise their products on media. They lack marketing strategies in order to promote their products to the public. Disorganization of raw materials and supplies are practiced by the company. Materials in the process are left in work area at the end of the day, at the finished goods storage area the products are not also segregated.

G. Recommendations

It is therefore recommended that enough knowledge regarding efficient and effective use of resources is needed in order to have a maximum outcome on your production. Here are some ways to help optimize your business resources: Steps 1 – Be familiar with everything you have to know about your resources o you could utilize them fully. Gaining a full understanding of the product, service or person at your disposal helps you gain more value from your investment. For instance, if you purchase business equipment and don’t read the manual to learn that a few features can cut your production time in half, you’re wasting time and money. Step 2 – Treat your human business resources, your employees, with respect, admiration and recognition. When an employer shows respect, compassion and gratefulness for the work of the employees, it helps increase worker morale and productivity. Host an occasional party to remind employees that you value them.

Step 3 – Handle your tangible business resources with care to ensure that you have them for as long as possible and get maximum use out of each item before having to get a replacement. Take care of your computers and perform regular maintenance activities to keep them running at top capacity. Do the same with business vehicles and heavy equipment. Step 4 – Turn off business machines or place them on standby when not in use to increase the operational life of the equipment. Step 5- Negotiate all business agreements to get the best price possible and shop around to make optimum use of your company’s financial resources. Inquire at banks for the best deals for accounts and business credit cards. Step 6 – Analyze how you use your office supplies as another way to make optimum use of bus (Balle: “How do I Make Optimum Use of Business Resources?”)

Ways on how to market your products:
Network. Meeting professionals from other, related businesses is an effective form of business promotion, as it provides you with opportunities to learn about your competitors, ask for referrals, form mutually beneficial partnerships in complementary industries and spread awareness about your business throughout a group of like-minded people. Advertise

Signs. You may opt for storefront signs, billboards, marquee boards or street-side yard signs. Print. Place print ads in magazines, newspapers, coupon books, trade journals and industry magazines. Choose print mediums that are suited to your business. For example, if you run a technology parts recycling warehouse, then you may consider placing ads in computer classifieds and technology magazines. Commercials. Television and radio commercials are effective ways to promote your business to a broad audience, but they are relatively costly forms of advertising. Advertisements. You may opt to pass out promotional materials at trade shows, at store fronts, in parking lots or in any other highly-populated areas. Some businesses, like nightclubs and entertainment venues, hire street crews to hand out advertisements and attract new customers.

Direct mail. You may purchase mailing lists targeted to your segment of the consumer market, then mail out letters, brochures, catalogs or postcards. This method is effective when you want to provide potential customers with paper coupons, vouchers, business cards or promotional merchandising. Public relations (PR) firms. You may hire a PR firm to create publicity for you in the form of news write-ups and press releases. Internet. Promoting a business online involves setting up a business website, participating in industry/trade forum discussions, running a blog , setting up accounts on social networking sites, using pay-per-click and banner ads, listing your business information in business directories and employing search engine optimization (SEO) techniques.

Every business, regardless of its size or scope, could benefit from Internet marketing, and many Internet marketing mediums are free to use. Rely on the power of social networks. Social networks have become the new darling of advertising because much of the legwork is being done by dedicated fans, for free. You could pay someone to advertise for you, or you could establish a social community of fans who advertise by word of mouth, at little or no cost. Develop relationships with your customers. Customers are people — not numbers — and it is important that you put consideration and effort into building personal relationships with them. For example, when you send out Christmas cards each year, you not only gain customer loyalty but you also inspire customers to promote your business to the people they know. (Anonymous, “How to promote your business”)

References:
By Louise Balle, Demand Media

JUAN DELA CRUZ PUBLISHING HOUSE
(Case 10)

A. Time Context

The case started 2 years ago when Juan de la Cruz Publishing House has been experiencing problems with its cash flow.

B. Perspective / Viewpoint

The case will be from the perspective of Don de la Cruz, owner of the Juan De La Cruz Publishing House.

C. Central Issue / Statement of the Problem

The owner of Juan de la Cruz Publishing House has been experiencing problems with its cash flow for the past two years therefore he decided to decrease the firm’s sales force promising each account officers strong recommendations to prospective employers and giving all remuneration due to retrenched employees, including severance pay. The company is now challenged by the growing competition in the printing industry from the local and foreign publishing firms with newer machinery, better technology and cheaper services.

D. Statement of Objectives

To be able to think of new marketing strategies in order for the company to cope up with the growing competition in the printing industry and will sustain the company not only in the short run but also for next 10-15 years. To be able to identify new products and services to be offered by Juan Della Cruz Publishing house to increase their sales and attract other customers.

E. Areas of consideration (SWOT ANALYSIS)

Strengths:
Juan Della Cruz Publishing House belongs to the Commercial Printers sector of the Philippines Broker publication rights agreements and support overseas business development Strong working relationships with well known clients like National Bookstore, University of the Philippines, National Power Corporation, Ateneo de Manila University, De LaSalle University, Asian Institute for Management etc.

Weaknesses:
Highly diversified port-folio of businesses
The Predominantly an electronics business now
Limited global penetration compared to global leaders
Low maintenance on machineries
No standard pricing formula
Opportunities
Domestic demand for printed materials has been consistently increasing Exports of printed matter have been increasing
New markets for printing services have yet to be fully realized like the
potentials in the advertising sector Expand and strengthen overseas businesses & operations
Acquisitions and mergers in other publishing & printing companies Working on core competencies and strengthen the brand image
Threats
Fast Advancing and cheaper photocopying technology
Price wars
Better machines of higher technology
Pre-press technologies
Design and graphic service companies
Upsurge in the usage of e-magazines and high value add supplements With an atmosphere of broad-based change, the publishing industry is reaching beyond traditional boundaries from other full scale printing and publications competitors

G. Conclusions

After analyzing the areas to be considered Juan Dela Cruz Publishing house has been challenged by the fast by the growing competition in the printing industry from the local and foreign publishing firms with newer machinery, better technology and cheaper services. They should start offering other printing services in order to gain more employees and also there is a need to develop their machineries to cope up with the new technology. They should also set up a standard pricing formula to be able to have a stable basis for increase and decrease of profit.

H. Recommendations

It is therefore recommended that to meet goals of higher sales and earnings the company must make use of improved forecasting tools and printing machines. Lower production costs could be achieved by implementing more efficient publishing and editorial processes. It is also necessary to reduce warehouse liability and costs by implementing systems that improve speed and efficiency of distribution and returns processing. Ability to handle the supply chain model of ’just-in-time‘delivery in line with current customer expectations should be developed. Lastly, to gain improved consumer level visibility and better response to market demands, the company should develop strong relationship with their customers. New services to be offered:

Laminating – it prolongs the life of your printed projects.
Increases durability
Preserves colors
Enables your projects to withstand moisture
And protects your projects from fingerprints, abrasions, and smudges. In addition to the many ways it preserves your projects, laminating also has the power to revolutionize your presentations by allowing for hassle-free display of your documents under a variety of conditions. Plus, the glossy finish gives your projects a professional look that you can be proud of. Collating – Collating is the process of gathering individual sheets and other elements of your printing project and assembling those elements into a final product. Paper Cutting / Stitching – Did you know that “stitching” is another word for stapling? The only difference is that the phrase stapling is generally used when you’re trying to bind together no more than 40 pages. Stapling is done with lightweight desktop equipment. Archiving& Duplication – Diligent business people make backups of everything. But after years, months, or even days of diligence, it can be difficult to find a place for all of those CD’s full of copies!

Digital Price Books – Price books are an effective way to keep vendors, prospects, customers, salespeople, and staff up-to-date on the current prices for all of your various products and services. If you have a large selection of products or services- professionally trained graphic designers are computer artists who know how to use their creative abilities to improve the look of your printed projects.

Creative use of color, typography, photos, and illustration can dramatically improve the effectiveness of your project. Good design can help create a favorable impression that makes your company and its products stand out in the crowd. Logo design – company’s logo communicates with your customers and prospects in a silent but extremely powerful way. In many cases, your logo is the first thing people will notice about your company, and the impression they get at first glance may determine their future interest in your company. Proofreading – Misspelled words, poor punctuation, and glaring grammatical errors can damage your credibility and hurt your professional image. Mailing Services- When your printed project is finished; we can also manage your mailing services to save you time and energy. We offer a full-service, turn-key mailing solution.

To learn more, follow the links in the Mailing section above Litigation Copies -In the courtroom, a single case can require thousands of individual documents, all carefully reproduced and painstakingly organized. Whether its paper originals or computer files, we can copy, enlarge, mount, and laminate your court materials to look their best when you need them the most. Invitations – In recent years, letterpress printing has become the method of choice for wedding and event planners looking to make their invitations as memorable as the occasions themselves. Known for producing rich textures, beautiful lines, and crisp, clear typography, the centuries-old process delivers elegant, distinctive results every time ( Printing Press Inc.)

DON KARLO SHOE: COMPANY’S MISSION AND VISION
(Case 11)

A. Time Context

The case started when Rusty Lopez asked Mr. Mariano if he could still commit more orders for them and if he is interested to export.

B. Perspective / Viewpoint

The case will be from the perspective of Mr. Mariano, the owner of Don Karlo Shoes’ Company.

C. Central Issue / Statement of the Problem

Don Karlo Shoes is a stable and flourishing small company. The owners have decided to have only one sub-contractor which is the Rusty Lopez. During the last delivery of DKS to Rusty Lopez for their orders, Rusty Lopez asked Mr. Mariano if he could still commit more orders for them and if he is interested to export.

D. Statement of Objectives

To be able to come up with a decision regarding committing more orders and exporting. To be able to identify areas for improvement in order to optimize and maximize productivity

E. Areas of consideration (SWOT ANALYSIS)

Strengths:
Rusty Lopez is a well known Manufacturer and retailer of high – end men’s & women’s shoes. Comfortable availability of raw materials and other inputs.
Stability in Manufacturing Operations
Stability in financial management
Maximized profitability
Weaknesses:
Lack or absence of appropriate fire detectors, alarms and suppressors Shops lacks ventilation
No formal and published procedures, policies or guidelines that would control traffic of personnel and materials to and from the site. Do duly constituted fire brigade
Poor housekeeping
NO personal protective gears for the workers
Working area is crowd
No formal mission and vision statement
Opportunities
Increase sales when exporting
Dollar value increasing
Increasing number of consumers
Growing fashion consciousness globally.
Retain customers through quality supplies and timely deliveries Aim to present the customer with new designs, infrastructure, and country & company
profiles. Use of modern technology
Exhibit strengths in manufacturing, for example, strengths in classic shoe manufacturing, hand crafting etc. Threats
Manufacturing Capacity
Variety of competition both local and foreign industry
Entry of multinationals in domestic market.
Stiff competition from other countries.
Improving quality to adapt the stricter international standards. Fast changing fashion trends are difficult to adapt

G. Conclusions

After analyzing the areas to be considered it is therefore concluded that Don Karlo Shoes could be capable to export and commit to more orders provided that it will establish it’s company’s procedures, policies and guidelines that would control traffic of personnel’s and materials. Also DKS Company does not practice proper housekeeping and lack safety equipments and precautions.

H. Recommendations

Many manufacturers increase capacity through expensive and time consuming new equipment purchase however reducing downtime, improving performance or improving quality is enough to regain lost capacity. Start by measuring your current process, analyze the source of efficiency loss and develop a plan to improve. DKS being a profitable supplier could also improve their equipments by purchasing new machines or having a regular maintenance on their machineries. EXPORTATION

Exporting gives your business many benefits, including a wider customer base and increased sales and productivity, which a singular market may not be able to deliver. (“The Benefits of Exporting”)

Here are four main advantages of exporting your goods and services. Increased profitability
On average, businesses that export are more profitable than those who do not export, according to some business studies. This is largely because foreign markets are more diverse, with consumer habits and needs different in each country, and thus can offer increase opportunities for certain products or services that don’t currently elicit any demand at home. Spreading risks

Exporting is a good way of balancing your growth as you can target new markets when there is low demand at home due to seasonal fluctuations. Economies of scale
Exporting allows you to take advantage of economies of scale, which refers to lowered average costs as a result of expanded operations, hence leading to increased productivity and efficiency. This usually works better if you have a ‘universal’ product or service that can be sold to most other parts of the world without significant modification. Enhanced innovation

Exposure to various working environments – and coming up with new strategies to circumvent any obstacles – will allow your business to become more innovative, competitive and poised to cope with changing circumstances.

References:

The Case of the Marikina Shoe Industry by Mayor Osmundo de Guzman, De La Salle University, 1983 A shoe Industry’s Slow Death by Maritess D. Vitug. Newsweek: Sep 03, 2001