Dmm Case Study Hart Venture Capital
This presentation is in the point of view of the manager-owner.
In this case, it is in the point of view of Miss Rose Malabanan, the proprietress of ROMA Bakery – a bakeshop that started in 1970 and until now, is still in the business after 38 years of continuous operation. Due to increase in demands, the owner is planning to expand the business by opening another branch. III. CENTRAL PROBLEM Does the plan of the owner-manager to open another branch in San Pablo a sound and wise decision at this point of time?IV. SECONDARY/SUB-PROBLEMS a.
Does the business has enough resources and capability to expand given its financial records and its present size and market performance? b. Is the owner-manager assured that she has the managerial capability to open and manage another bakery? V. OBJECTIVES To prepare all factors both internal and external in order to fast track the opening of another branch and minimize any unforeseen impediments relative to this activity. VI. AREAS OF CONSIDERATION (SWOT ANALYSIS) STRENGTHS |WEAKNESSESS |OPPORTUNITIES |THREATS | |Ms. Malabanan, the owner-manager|Despite of being an Accountancy |The change in eating habit and |Rising cost of ingredients used | |is an Accountancy graduate with |graduate, Ms.
Malabanan has no |lifestyle of Filipinos is |to manufacture bread especially | |a Cum Laude distinction in one |solid background in business |somehow favorable to the bakery |flour and sugar. | |of the well-known universities |management and product |industry.Many workers are too | | |in the country. |innovations. |busy to prepare a full meal | | | | |specifically breakfast and | | | | |eating a full breakfast meal is | | | | |sometimes considered a luxury.
| |The business has a solid |The business has no clear and |The rising cost of rice forced |Rise in utility expenses | |financial background and a |specific goals and values |average and below average | | |steady growth in terms of the |although it has been in the |Filipino families to look for | | |number of its loyal customers |business for quite sometime. |other alternatives for rice. | | |and bread dealers. |Pandesal and other bread | | | | |products are popular especially | | | | |among the masses. | | |The number of trusted skilled |The number of workers the |Advantage of large network of |Rising labor cost.
Likewise, | |employees likewise increased as |business are having indicates |dealers in the area. employees tend to look for | |the business grew. |that it is considerably big. | |greener pastures elsewhere given| | |Miss Malabanan did not formally | |the opportunity and thereafter | | |appoint somebody beside herself | |leaving the business. | | |that would manage the business | | | | |in case of her absence. | | |Ms.
Malabanan has been with the |The amount of depreciations in |Government is supportive for |Presence of competitors | |bakery business for almost four |the fixed assets are |small and medium-scale | | |(4) decades and indications |considerably big which gradually|enterprise through “soft” loans,| | |suggest that the business is a |ate up large portion of the |technical and other financial | | |success. assets. |assistance which ROMA Bakery is | | | | |qualified to avail. | | VII. COURSE OF ACTION |COURSE OF ACTION |ADVANTAGE |DISADVANTAGE | |Continue with the business expansion |The establishment of the new branch at the |Less time to prepare and the risk is higher| |through the establishment of the new branch|soonest possible time could likewise mean |since it is made out of a hasty decision.
|using the available resources of the |an earlier income. | | |business. | | | |Temporarily delay the establishment of the |Owner-manager would have enhanced |Possible delay in additional income and | |new branch while owner-manager seek for |managerial skill and knowledge that will |possible loss of target customers that | |formal education in business managerial |better equip her in her operation of the |might go to competitors who could cater and| |courses. business and decision-making process. This |accommodate them.
| | |will also help boost her confidence. | | |Make a feasibility study of the new branch |Owner-manager will have a credible and more|May require additional financial expense | |and evaluate the financial records of the |scientific basis to aide her in the |and a possible resistance to change by | |business including its system, business |over-all decision-making process. employees. | |resources and business beliefs, practices | | | |and philosophy and possible introduction of| | | |innovations. | | | VIII. RECOMMENDATIONWith the courses of action previously given, the team recommends that the third option should be adopted, that is, ” to make a feasibility study of the new branch and evaluate the financial records of the current business including its system, resources and business beliefs, practices and philosophy and introduction of innovations.
” It is true that the conduct of feasibility study may require additional financial cost. However, this must be considered as an investment rather than an expense.In the long run, this would be a great help in determining the success or failure of the business. IX. IMPLEMENTATION PLAN Step 1.
Connect with selected networks, informal organizations and trusted friends to ask for advices and recommendations relative to the plan. Step 2. Research for companies with good reputation that will conduct the feasibility study. Step 3. Make a time frame for this activity ensuring that everything is within the time frame.Step 4.
Start the feasibility study the soonest time possible. Step 5. Evaluate the result of the feasibility study and consider options. Step 6. Adopt recommendations.
Step 7. Start advertising. Step 8. Come up with “gimmicks” and promotional offers. Step 9. Invite prominent personalities during the opening of the new branch.
Step 10. Evaluate everything and accept feedbacks.