BABY BLOOMERS

Time Context
The case under study covers the period of the 1980’s
(particularly 1987) wherein the Philippine economy is
experiencing difficulty due to the political turmoil.

Summary
A family enterprise known as the Baby Bloomers specializing in
floral arrangement was founded in 1977. It was inspired by the
Three 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 interior and overall air of quality, has a great impact to
the customer. This led to a large amount of cash inflows incurred
by the company, mainly because of its high price being charged
in their high-quality products and services. With this tremendous
success, owners take into consideration business expansion.
They started establishing restaurants, automobile dealership,
wine importation business, cocktail lounge, jewelry shop,
European sporting goods dealership, and store specializing in
remote-controlled toys. However, not all of the newly established
businesses were doing too well, except the restaurant which was
moderately successful. Large amount of investments was
incurred and much of the funds available were being use as
working capital instead of servicing of the loans. During 1983, a
consequential challenge was faced by the enterprise, when
devaluation of the dollar exchange rate set in. Unfortunately,
expenses increase because some of their businesses were
import-oriented. It became a greater liability for the Baby
Bloomers 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, troubled
businesses were eventually sold to settle the problem, leaving
only the flower boutiques and the restaurant. Mission Statement
To provide a high-quality floral products offering imported
materials, and a standardized outlets for the convenience and
satisfaction 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 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 objective of the study is to assist Baby Bloomers
regain its success by devoting more time and effort in managing
the money-generating flower boutiques, in order to recover the
financial losses 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 identify businesses need to continue and discontinue
operation.

II. Central Problem

How would Baby Bloomers bring back 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 trade
High pricing power
Standardized outlets
Strong management of flower shops
Weaknesses
High debt burden
Rapid sequence of expansion of unrelated businesses
Weak management of other businesses
Use of imported materials
Opportunities
International expansion
New markets
Baby Bloomers’ brand name serves as a goodwill 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 risks

IV. Alternative Courses of Action

These are the possible solutions to the problem with the
corresponding advantages and disadvantages:

1. Not to expand floral boutiques and focused first in managing

existing ones. Advantages...