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UM Tagum College

Arellano St., Tagum City

In Partial Fulfillment of the Requirements in Mgt. 1B


[Principles of Management]

Submitted to:

Prof. Joane C. Montayre

Submitted by:

Karen Kaye A. Laurel


BSAT II

July 16, 2015

Case Analysis
Personal Collection

Mr. & Mrs. John Reyes, the managing director and owner of the
Personal Collection, Panabo Branch. The area is located at Crystal Plane,
Panabo City. The couples are the supplier of the homecare products. They
have more than 100 franchise dealers who will dispose the said item to their
customers.

They invested 60,000 in cash to buy the home care products to the
main office at Davao City, building rental and other office equipment.
Therefore, it was materialized and started its operation last September 2012.

During the start of business operation they bought a streamer to make


the customer more interested and every Saturday is recruiting of members.
They hired a secretary as to monitor the items, receive the orders and
payments and also to release the products to the dealers.

From the amount invested, the production was fast and the sales are
also great, even though it is a one-month payment. The dealers interested
and enjoyed of the benefits theyll get one item at 80% off discount of what
item they ordered. The great strategy of the couple was made to a rapid
grows of their business.

After 2 years of great income, but then the facilities are not constructed
well at the same time the location was not exposed to the city because it is
place in the narrow area. The dealers are not function well, they forget their
obligations to pay their due accounts, so it happened that the income of the
couple were decreasing and they are unhappy and disappointed with the
result of the operation,

Now, they are in deep thought considering what should be the next
move.

Statement of the Problem

1. The primary problem of Personal Collection, Panabo Branch is that the


dealers are not function well, due to the slow remittance of their customers.

2. Secondary problem
a. The business is located in a narrow area
b. Office Environment

There is a need to solve the problem and must show up again.

Alternative Course of Action

Marketing Strategies
(Publicity and good office environment)
It can make the customers to purchase the product.

Advantage

Disadvantage

Motivate the customers to purchase It is costly (streamer, pamphlets


the item
and catalogues)

Can get attentions and comfortable to Rental and Office renovation


the employees and customers

Increase the customers

Slow increase of income

Good Payers
Can make the sales abundant and it increases the production.

Advantage

Disadvantage

Can make the sales abundant

Make the supply stagnant

Can increase the production

Low production

More customers

Limited customers

Credit Machine

Advantage

Disadvantage

Increase number of customer in The business sustain


purchasing the machine
expense
in
purchasing
machine
It will be easy and convenient to
customer in paying tickets providing the Sales
credit machine
collectible
Providing the credit machine

will

be

charge

the
the

as

Additional expenses and may


cause delay the payment

Evaluate of Advantage and Disadvantage of Alternative Courses of


Action

Marketing Strategies

Advantage
It can interest the customers to purchase the item by streamers,
pamphlets and catalogues. This will get an attention from the dealers if
the office is well furnished. They feel comfortable and at ease not only
to the customers but also to the employee, through this it increases the
customers/dealers. To be known to the public, earn more profit and can
make dealers and employees to be comfortable and at ease.

Disadvantage
It is costly (streamer, pamphlets and catalogues). We cannot sure that
the customers will buy the product immediately. In this matter, it will
create a big expense.

Good Payers

Advantage
If the dealers are good payer it can make the sales abundant and it
increase the production. The accounts are no longer pending. The
receivables are reducing.

Disadvantage

Credit Machine

Advantage
It is simply easier for a consumer to swipe a card at a terminal than to
carry around cash or write a check. Most credit cards have some sort
of rewards program that gives the consumer money back or points to
redeem for prizes. This is in effect gives businesses free marketing
because the major credit companies will run specials and advertise
their cards. You can display the logos of any credit network you use
and piggyback off the issuer's ad campaigns.

Disadvantage
Every time a person uses his credit card, the card issuer and the
payment network receive a cut of the sales, called an interchange fee.
In the short term, taking credit cards will probably cost your business
money and extra time spent processing transactions.

Selection of the Best Alternative Courses of Action

The best alternative solution to solve the problems of the firm is to have
a good payer in the business. The supplier must aware of the dealers if
he/she is responsible and function actively in order to avoid losing profit. They
were meticulous in accepting the new members and should know the
background on it.

Recommendation

Personal Collection is a kind of business that having a one-month term.


In this firm it should have a good payer in order to improve or increase the
profit and at the same time it has a smooth relationship between the supplier
and the dealers.

I am recommending choosing a good payer as an action take in solving the


problem of Personal Collection, Panabo Branch.