LA CARLOTA CITY COLLEGE GRADUATE SCHOOL DEPARTMENT

BA 112

BUSINESS POLICY AND STRATEGY

CASE STUDY TITLE:

Bamboo Craft

Submitted To:
MR. NOEL T. TALAMAN, MBA

Submitted By:
Kirk Borgie T. de la Torre

March 24, 2018

Introduction

Bamboo Craft is a family business that manufactures bamboo torches for the export market. Half of its sales
went to the United States, which meant that its market risk was highly concentrated. This proves to be the
case when terrorist attacked the United States on September 11, 2001. Purchase orders were suspended, and
the company was suddenly found itself with no means to sustain its operations. So, with that unexpected
situation which could be considered as a dilemma, the Bamboo Craft’s management has to find or come up
with a new strategy that can be applied immediately in order to sustain or stabilize the company’s situation
until the time that their operation goes back to normal.

I. Point of View

I will consider the point of view of Philip, who have brilliant mind in business creativity through research.

II. Statement of the Problem

How would Bamboo craft conquer decrease in sales and income as they loss their 50% sales which comes
from United States?

III. Objectives

 To identify competitive measures and actions to sustain the market sales.

 To help the company recover through developing new market strategies.
 To expand market segments through concentration in marketing and product concept.
 To market the product locally.
 IV. TOWS Analysis

Threats

 Production of imitation of bamboo products.

 Entrance of competitors to markets.
 Terrorism attack to their remaining export areas/countries.
 Freight charges may increase.
 Shipment concerns like destruction or breakage of the product.

Opportunities

 Incorporation with other companies or accepts investors if there is.

 Penetration to the local market (Philippines).
 Adaptation of the product concept in business intervention.
 Expansion / Branch opening in international markets.

Weaknesses

 Product monopoly or limited product offer.

 Informal organization’s structure.
 Lack of skilled permanent employees.
 Limited capital investment.
 Limited market segments.

Strengths

 Cecilia’s Leadership
 Additional chemical to extend and prevent the rotting of bamboo products.
 Drying machine for faster completion of the product total quality.
 Uncertainty of bamboo plants in other countries.
 V. Alternative Courses of Action

“Alternative 1”

The Company should adapt the product concept in business, developing and innovating products
from time to time to meet the demands of the local markets and international markets.

“Alternative 2”
The Company should adapt the marketing concept in business, concerning to gathering information
to possible local and international penetration based on respondents’ response.

“Alternative 3”
The Company should adapt the selling concept in business, concerning to the strategic way of selling
of their bamboo product in different markets.

VI. Recommendation

I, hereby recommend alternative course of action number 2. The company definitely find it difficult to
conquer the challenge with the decrease in sales due to terrorism attack because they did not expect such
incidents and does not prepare contingency action and has a limited area of segments for sales and income.
They lack a marketing research and strategy wherein they did not expand their markets to some areas. I
firmly believe that market research is the option to stabilize sales and income growth. They did not even
consider the probability of growing locally due to narrow and monopolistic target markets.

VII. Conclusion

Therefore, this bamboo craft will definitely recover the decrease in sales and loses in income through
increase of clients and customers locally and globally. The start of the business penetration always comes
from reliable market research study with the proper leadership in management, accountability and
transparency to diminish anomaly.
 La Carlota City College

Graduate School Program

Master’s in Business Administration

In partial Fulfilment

to the subject

Business Policies and Strategies

Submitted by:

Jomar Jocson

Jason D. Jocame

Edelyn Felasor
 Evelyn Pabiania

Erico fidel

Submitted to:

NOEL TALAMAN, MBA

Professor

BABY BLOOMERS

Introduction
 Family enterprise known as Baby bloomers specializing in floral arrangement was
founded in 1977. It was inspired by the three flower florists who are considered as the
leading supplier of floral arrangements during the previous years. It became widely known
floral trade to the market because of the imported materials they use. Their innovative and
interior design captured customers’ heart. 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. Owners take into consideration for business expansion. They
started establishing restaurants, automobile leadership, 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 investment was
incurred and much of the funds available were being use as working capital instead of
servicing the loans.

Point of View

I will consider the opinion of Mrs. Picache.

Statement of the Problem

How would Baby Bloomers bring back its normal condition and how would it recover from
financial losses it suffers to maintain business’ soundness?

Objectives

 To understand the background of the company.

 To suggest means of settling pending loans obligations.
 To identify factors if the other business need to continue or discontinue.

TOWS Analysis
Threats

 Volatile dollar exchange

 Intense competition in other established enterprises
  Government tax regulations
 Bad reputation brought by enterprises not doing too well

Opportunities

 International Expansion
 New markets
 One stop shop store if run and manage carefully

Weaknesses

 High Debt burden

 Rapid sequence of expansion of unrelated business
 Weak management of the other business
 Used of imported materials
 Unpreparedness to other business venture

Strengths

 Prestige that came from baby bloomers brand name

 Sufficient experience in floral trade
 High pricing power
 Standardized outlets
 Strong management of flower shops

Alternative courses of action

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

2. Foreclosed the restaurant with moderate earning and continue to expand immensely
profitable flower boutiques.

3. As the company regains its success, take into consideration expansion of unrelated
ventures.

Recommendation

I, therefor recommend that the best solution to solve the problem is alternative course of
action no. 2. “Foreclosed the restaurant with moderate earnings and continue to expand
immensely profitable flower boutiques.
Undeniably, the reason of financial losses of Baby Bloomers was the expansion of unrelated
business ventures which is not doing too well. Lack of business concentration due to
unpreparedness of business ventures that affect the management of the other business also
plays a big role in the financial losses.

With this recommendation, focusing on one kind of business has a great impacts to its
success because there will be more time can be devoted in well managing the flower
boutiques.

Greater chance of improving and innovating the products and services wherein they are
expert in floral business.

Conclusion

I conclude that business expansion must not be in a rapid sequence because expansion does
not always connote additional profit due to presence of economic and political risks.
In doing business ventures there should be a valid and reliable reason that will be a basis for
its entire operation.

Stability of the floral boutique business requires management skills, innovation, product
development and focus of concentration that will be the ladder towards success. If ever, the
boutique is strongly stable then, that is the perfect time for the so called business ventures.