CASE ANALYSIS OF CONFETTI SHOES

Bien, Lorilyn S. Felipe, Judi Anne Lazo, Tom Suarez, Alvin Torre ampo, Ailla !arie F.

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I.

Point of View
T"e a#e o$ Con$e%%i S"oe# all# %"e a%%en%ion o$ Edna &erez. A $riend o$ !r#. Bello, #"e i# an in#%ru %or in a univer#i%y %ea "in' A oun%in'.

II.

Problem Statement
("a% #"ould Edna re ommend %o !r#. Bello %o minimize lo##e# in e$$i ien%ly in %erm# o$ %ime and o#%)

III.

Relevant Case Facts

A. External Environment

!r#. Bello i# plannin' %o open ano%"er *ran " a% S"oemar% E+SA. T"e *u#ine## $or %"e #"oe *ou%i,ue "a# *een 'ood and %"e *ran "e# are in rea#in'. T"ere i# a 'ro-in' populari%y and demand $or Con$e%%i S"oe#. .Oppor%uni%y/ Alon'#ide in rea#in' populari%y i# di$$i ul%y in mana'emen% due %o 'ro-in' *u% di#%an% *ran "e#. .T"rea%/ !r#. Bello i# in urrin' lo##e# $rom #%ore# #in e %"e inven%ory and #ale# do no% %ally .T"rea%/

B. Internal Environment

Bran "e# o$ Con$e%%i S"oe# are lo a%ed in 0reen*el%, S! Ed#a, !a1a%i and An'ele#, &ampan'a. T"e la%%er *ran " i# rela%ively di#%an% $rom %"e %"ree. .(ea1ne##/ !r#. Bello "ire 234 on%ra %ual #ale#'irl# per *ran " paid under minimum. T"e#e are repla ed every #i5 mon%"#. T"i# preven%# !r#. Bello %o "ave $ull a oun%a*ili%y over employee# on o%"er *ran "e#. .(ea1ne##/ T"e 6uadpar1 ou%le% "a# an a oun%a*le #%ore mana'er7 a#"ier -"i " i# !r#. Bello8# rela%ive. .S%ren'%"/

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A #ale# *oo1 i# u#ed in re ordin' only %"e produ % and %"e paymen% u#ed. T"ere i# no #y#%em $or re ordin' %"e #ale#per#on o$ %"e %ran#a %ion. .(ea1ne##/ In$orma%ion in %"e #ale# *oo1 i# manually %ran#$erred *y a #ale#'irl a##i'ned *y %"e #%ore mana'er. T"ere i# no $ormal #y#%em $or re ord3 1eepin'. .(ea1ne##/ +i# oun%# are no% re orded. .(ea1ne##/ Bran "e# $ind di$$i ul%ie# in main%ainin' inven%ory. .(ea1ne##/ 9e ordin' o$ #ale# i# ompromi#ed durin' pea1 "our#. Ca#"ierin' and mana'erial :o* i# "andled *y one per#on .(ea1ne##/ Bran "e# $ollo- %"e #ame pro edure# and pra %i e# .S%ren'%"#/

SWOT Anal sis S%ren'%"#

S;< S2<

oun%a*le a#"ier a% 6uadpar1.

Similar pro edure $or all *ran "e#

(ea1ne##e# (;< (2< +i#%an% *ran "e# =na oun%a*le employee#

(>< &oor re ord 1eepin' on di# oun%# and employee %ran#a %ion# and inven%ory (4< (?< (@< No $ormal re ord31eepin' #y#%em Compromi#ed re ordin' durin' pea1 "our#. S%ore mana'er doe# a#"ierin'

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Oppor%uni%ie# O;< In rea#in' demand $or Con$e%%i S"oe#

T"rea%# T;< In rea#in' num*er o$ *ran "e# and di$$i ul%y o$ mana'emen%

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IV.

Form!lation an" Eval!ation of Alternative Sol!tions to t#e I"entifie" Problem

A. Form!lation of Alternative Sol!tions OPPORT$%ITIES In rea#in' demand $or Con$e%%i S"oe# Openin' a ne*ran " a% S! E+SA STRE%'T&S SO STRATE'IES A##i'n #%ore A oun%a*le a#"ier a% SO(. mana'er7 a#"ier $rom 6uadpar1. 6uadpar1 %o An'ele# Similar pro edure# $or all *ran "e# WEA)%ESSES WO STRATE'IES WO(. E5pand #%ore in +i#%an% *ran "e# S! E+SA ra%"er %"an =na oun%a*le openin' ano%"er employee# WO*. 9e$rain "irin' &oor re ord 1eepin' on%ra %ual #ale#'irl# No $ormal re ord3 1eepin' Compromi#ed re ordin' durin' pea1 "our# S%ore mana'er doe# a#"ierin' T&REATS In rea#in' num*er o$ *ran "e# re#ul%in' %o di$$i ul%y in mana'emen% Lo##e# $rom *ran "e# ST STRATE'IES ST(. A##i'n #%ore mana'er7 a#"ier $rom 6uadpar1 %o An'ele# WT STRATE'IES WT(. E#%a*li#" $ormal re ord 1eepin' on #ale# *oo1 -"i " in lude# di# oun%# and %ran#a %ion #ale#per#on WT*. A##i'n %ran#$er o$ in$orma%ion $rom #ale#*oo1 %o #%o 1 ard %o #%ore mana'er or "ire a ler1 WT+. Hire a #upervi#or %"a% -ill "elp "er vi#i% %"e #%ore#. WT,. Separa%e Ca#"ierin' :o* $rom #%ore mana'er8# :o*.

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B. Eval!ation of Alternative Sol!tions

Alternative Sol!tions
SO(-ST(. A##i'n mana'er7 a#"ier 6uadpar1 %o An'ele#

PROs

CO%s
3#%ore mana'er mi'"% no% a'ree even -i%" "i'"er ompen#a%ion 3doe# no% #olve o%"er *ran "e#8 i##ue 3may no% a%er %"e demand# 3may in orpora%e a di$$eren% pro edure# and pra %i e 3re,uire# more $und# $or *ene$i%#

#%ore 3improve# a oun%a*ili%y o$ $rom %"e #%ore 3#ave# %ime $rom %ravellin' 3redu e# 'rea%er %"rea% o$ lo##e# 3improve# a *ran "e# oun%a*ili%y on

WO(. E5pand #%ore in S! E+SA ra%"er %"an openin' ano%"er WO*. 9e$rain "irin' on%ra %ual #ale#'irl# WT(. E#%a*li#" $ormal re ord 1eepin' on #ale# *oo1 -"i " in lude# di# oun%# and %ran#a %ion #ale#per#on

3involve# all *ran "e# 3ine5pen#ive, pra %i al 3provide# %ran#paren y o$ re ord# 3di# oura'e# #ale#'irl# %o "ea% on #ale# 3improved moni%orin' o$ #ale# and inven%ory

3mana'emen% a% *ran "e# may di#re'ard %"e nepra %i e

WT*. A##i'n %ran#$er o$ 3redu e# error in %ran#$er o$ in$orma%ion $rom #ale#*oo1 re ord# %o #%o 1 ard %o #%ore 3preven%# anomalie# in mana'er or a ler1 re ord 1eepin' WT+. Hire a #upervi#or %"a% 3redu e# demand in !r#. -ill "elp "er vi#i% %"e #%ore#. Bello8# %ime WT,. Separa%e Ca#"ierin' :o* $rom #%ore mana'er8# 3improve# re ord 1eepin' :o*. durin' pea1 "our#

3"irin' a ler1 an *e more e5pen#ive in %"e lon' run 3e$$i ien% *u% doe# no% dire %ly #olve %"e pro*lem o$ lo##e# 3re,uire# "irin' ano%"er employee

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V.

.ecision-Recommen"ation

A. Recommen"ation

Edna &erez mu#% re ommend !r#. Bello %o modi$y %"e #ale# no%e*oo1 u#ed in "er ou%le%#. T"e #ale# no%e*oo1 mu#% in lude a olumn $or di# oun%# rea%ed and %"e #ale#'irl7employee. T"i# provide# %ran#paren y %o #ale# and di# oun%# and poin%# ou% %"e #ale#'irl re#pon#i*le $or %"e %ran#a %ion. T"i# #y#%em involve# lo- o#% and -ould no% re,uire in%en#ive moni%orin'. +i# repan ie# $rom #ale# and inven%ory -ould no% *e po##i*le anymore #in e di# oun%# are re orded.

B. Im/lementation

;. !r#. Bello mu#% vi#i% every *ran ", repla e %"e #ale# *oo1 and upda%e employee# a*ou% %"e "an'e#. 2. !r#. Bello mu#% moni%or %"e #ale# o$ *ran "e# %"rou'" %"e improved #ale# *oo1 every %ime #"e vi#i%# %"e #"op. >. I$ di$$eren e# e5i#% in %"e #ale# and inven%orie#, !r#. Bello mu#% revie- %"e #ale# *oo1 and %"e #%o 1 ard %o poin% ou% %"e employee re#pon#i*le. 4. &enal%ie# mu#% *e de#i'ned $or employee# ommi%%in' error# in %"e re ord#.

C. Contin0enc Plan

I$ %"i# doe#n8% #olve %"e pro*lem, Edna &erez an re ommend %o !r#. Bello %o "an'e %"e -ay #%ore mana'er# main%ain #%o 1 ard#. !r#. Bello mu#% a##i'n a ler1 or %"e #%o 1 mana'er in "ar'e o$ %ran#$errin' in$orma%ion $rom %"e #ale#*oo1 %o %"e #%o 1 ard. S"e may al#o op% %o #epara%e %"e

Page 8 of 8 a#"ierin' $rom %"e re#pon#i*ili%y o$ %"e #%ore mana'er. T"i# -ay, %"e re ord3 1eepin' o$ %"e *ran "e# i# improved -i%" minimal o#%.