Mama bear

A case study
 Statement of the
objective
To unravel a conclusion on how to continue
operating the business organization and to solve the
conflicts between the partners by providing a plan of
action that would satisfy the yearn of the business by
the end of the year.
2
CENTRAL PROBLEM
Disagreements occur due to different standpoints
among the original owners when the idea of increasing
the business potentials by incorporating the partnership
and other issues and concerns arise.

3
Areas of
consideration

4
 0 Institutional partners like PLDT,
Philippine Stock Exchange, CitiBank,
1
0 HSBC, and BPI
Tie-up agreements with St. Lukes
Hospital-Fort Bonifacio, Globe
2
0 Telecom, and SM Superstore
Expertise of Alalyn as special
education teacher and childcare
3
0 specialist

strengths Improved cash flow position

4
0 Access to sizeable credit line
5
0 Technology oriented being a child on
cam center
6
0 Affordable rates
 0 Lack of permanent space to use for

1
0
operations

Lack of bargaining power

2
0 Inadequate effort in forming the

weaknesse 3
0
partnership at the very beginning

Disagreements among partners

s 4
0 Fear or resistance to change
5
0 Inconsiderate attitude of the partners

6
0
towards their employees

Over management of Mylene

 0 Increasing demand due to the
growing number of women who
1 enter the workforce

0 Economic needs that force some

families to rely on two sources of
OPPORTU 2 salaries such as cost of living

NITIES 0 The significant changes in family

dynamics, such as dual and

3 single parenting which increase

the demand for quality childcare
0 Bigger market potentials as a

4 corporation
7
 0
Natural calamities
1
0 Rapidly growing number of
2
0
competitors

Technological innovations
THREATS 3
0
Changes in government policy
4
0
Economic fluctuations
5
0 The August 2010 carnage at
6 the Quirino Grandstand
8
Alternative
courses of
action 9
 Retain the business as a
0 advantages
partnership
disadvantages
1
Expertise in operating the business as a
partnership.
Existence of a high probability that the
competitors might surpass the partnership.
Owners are managing only few people in the Lower chance of future growth because of
company. lesser capital.
The organizational structure will remain the Narrow contribution of ideas and strategies
same and the partners will continue being because of few people involved in the
attached to children. management.
Running the business privately with no
pressure to grow and declare high dividends.
Agreements on making decisions are much
easier and faster when few people are
involved. 10
 Consult experts regarding the
0 present problems of the company
2 advantages
Solutions suggested by the experts are
disadvantages
Experts are not absolutely knowledgeable on
unbiased. how the company normally operates.
Strategies unknown among the partners will Consulting experts is costly.
be proposed by the experts. Misalignment of the experts opinion to the
Provision of efficient answers to the objectives of the business.
problems. The capability of the expert may be limited to
An expert has a lot of experiences which can a specific area of the company rather than as
help the company grasp about business a whole.
trends.

11
 interested buyers
0 advantages disadvantages
The business can be sold at the best price The partners will lose the full control since

3 where it can realize a gain from the sale

transaction.
there will be a transfer of ownership.
The partners lose chances to enhance their
It can enter a business combination wherein potentials as individuals.
the partnership will be absorbed by a more Their source of income would reduce
established and powerful company which has significantly.
the capabilities to expand the child care
centers target market.
Selling the business would relieve the partners
from the worries about losing to competitors.
The partners will be released from stress and
pressure brought by the problems of the
business. 12
 Cease the partnership and have
0 separate businesses
4 advantages
As the partnership close down, the problems
disadvantages
The purpose of Mama Bear child care center
inside the company will be eventually settled to help working parents will dissolve.
and end as well. Current customers will feel disappointed.
The partners may use their interest in the Opportunities of company growth will fall.
partnership as new investments for
establishing new business.
Independence in coming up with a decision.

13
 Expand the business to its great
0 potential

5 advantages
Forming
It will helpa to
creating
the company
corporation
increase the
morehires
funds
attracts
employees
employment
which would
investors,
to thehelp
ratethus
business.
finance
as
disadvantages
The company
Expanding
research
of
the business
money.and
The
may incurrequires
development
company to
high expenses
great amount
willcope
for
incurupcosts
with the
for
new projects.
There is a great chance of obtaining higher current trends
additional employees,
in technology.
facilities and legal
Expanding
returns as the
the
business
business
operates.
can build up new requirements.
There is a possibility of losing to the competitors
alliances
The which can
corporation will be
bea able
help to
forobtain
creating an
more There
if the company
is a highkeeps
risk ofonmismanagement
being blind and in
numb
the
ease
skilledenvironment in the
employees and company.
ensure their welfare. on significant
business whenmarket
the monitoring
data whichforis new
relevant
workers
and
Upgrading the business structure
would attract more important
is not strictly
to their
controlled
business.
by the supervisors. This
The new organizational will provide
clients in order of
to the
earnmanagement.
more profits. may lead to poor quality of service to the clients.
clear functions
Turning into a corporation makes the business Lengthy decision making will exist because of
more stable and less susceptible to dissolution. numerous individuals participating.

14
 Recommendation
We therefore conclude that the best solution to the problem is alternative course of action
no. 5 which is to incorporate the existing partnership. Indeed, expanding into a corporation is risky
to any company which requires a great amount of money, time, effort, and patience. But despite of
all these requirements, the owners will be able to experience a great deal of benefits in the long
run based on the principle of, the higher the risk, the higher can be the return. Getting more
clients than usual leading to higher revenues for the company as well as contracting with a large
number of investors resulting to huge amount of capital to fund new projects are the main
advantages of this alternative course of action. In addition, it will help the economy as a whole by
reducing the unemployment rate. By having a new and greater venture, management issues and
employment concerns will be cleared because policies in a corporation will be given more attention
in the by-laws. While the company is doing the expansion, it is essential to monitor the operations
of the business so that there will be an assurance for the rising of a successful corporation from a
thriving partnership.
The Power of PowerPoint | thepopp.com 15
Plan of action
16
0
1 Since
partners are
majority
in
expanding the business, they
of
favor
the
of

should convince the opposing

partner to change her
perspective into wider views. It
is better to start a new greater
venture with a solid and
harmonious relationship
between co-owners.
 After eliminating the
conflict of disagreements,
experts should also be
consulted in order to have the
assistance in evaluating

0 financial investment. Also, a

business plan that will include

2
the budgets, future objective
and strategies of the new
venture must be drawn. 18
 0
3
Review the partnership
agreement and prepare
winding up the affairs of the
partnership. Invite interested
investors to join the
arrangement.
19
0
4 Reserve and register the name of the business
in Securities and Exchange Commission (SEC),
Bureau of Internal Revenue (BIR) and acquire other
related business permits and requirements. Submit
the Articles of Incorporation to the appropriate state
office.
20
0
5
Draft the corporate by-laws
that will define how the
corporation will operate and
make significant decisions.

21
 In the by-laws, settle
and lay emphasis on

0 employment concerns
well as management issue
as

6 which is another problem of

the company.
22
0
7 Appoint the Board
Directors that will manage the
of

affairs of the business

organization. The organizational
structure must fit the members
capabilities and credentials.

23
Allow potential shareholders
to buy share of stocks by
trading through the stock

0
exchange and have initial
public offering.

8
24
0
9
Develop marketing
strategy to increase
public image and
reputation

25
 Improve programs
and create more
advanced curricula for

1 the child care center and

provide satisfactory
trainings and seminars to

0 enhance
abilities.
employees

26
1
1 Intensify resources
acquiring more investments
by

and strengthening connection

with other institutions.

27
 Build the proposed center that will focus on
working mothers who are MRT users as target

12 customers having SM as the venue and branch out for

more feasible locations for additional child care centers
in order to answer the emerging needs of working
parents.
28
 What if the number of shareholders,
Potential considering their aggregate capital

problems contributions, is not enough to operate the

corporation?
What if the number of competitors increase
rapidly?
What if the tax is very expensive that it
decreases the profit significantly?
What if there is a lot of economic
fluctuations affecting the industry?
What if there is an increasing number of
people giving false testimonies against the
corporation? 29
 What if the trend of the corporations business
Potential decrease?

problems What if a certain child got injured because of

workers negligence and there is a possibility
that the parents will broadcast what happened?
What if the revenue generated will not outweigh
the cost of expansion?
What if the appointed managers do not perform
their duties and responsibilities accordingly?
What if the workers still performed their
respective jobs inadequately despite of the
training provided?
30
Contingency
plans

31
What if the number of
shareholders,
considering their
aggregate capital
contributions, is not The original owners of the
enough to operate the company should be the first to
Contingency
corporation?
contribute additional capital to

plan cover-up the lack of fund.

Consider financing by means of

borrowing.
 Identify and analyze the
What if the number of
competitors increase competitors strength and
rapidly? weaknesses which will serve
Contingency as basis for the innovation to

plan be made.

Formulate strategies and

plans that will result to unique
services.
 Since it is already provided that
What if the tax is very
expensive that it corporations tax is high, the
decreases the profit company should focus on
significantly? revenue generating.
Contingency
plan Increase employees salaries and
allowances, provide trainings for
employees, and give discounts to
customers in order to increase the
expenses thus resulting to a lower
taxable income.
What if there is a lot of
economic fluctuations
affecting the industry?
Contingency Sufficient retained earnings
should be appropriated to serve
plan as savings of the company in
case of lack of funds.
What if there is an
increasing number of
people giving false
testimonies against the A boosting company always has
corporation?
Contingency envious people around it. The
management should have a

plan perspective of continuously

improving the quality of services
in order to cover those false
testimonies.
What if the trend of the
corporations business
decrease?
Contingency The corporation should make

plan innovations regarding the services

being offered.
What if a certain child got Medical expenses should be paid
injured because of by the corporation in partnership
workers negligence and with St. Lukes Hospital and
there is a possibility that
the parents will broadcast additional benefits should be
Contingency
what happened? remunerated.

plan Employees at fault should be

reprimanded for what happened.

Strict monitoring inside the center

should be implemented.
What if the revenue
generated will not
outweigh the cost of
expansion?
Contingency Perform a cost-benefit analysis.

plan Have a regular goal-setting for

the revenue department.
What if the appointed
managers do not perform
their duties and
responsibilities A boosting company always has
accordingly?
Contingency envious people around it. The
management should have a

plan perspective of continuously

improving the quality of services
in order to lower the taxable
income.
What if the workers still
performed their respective
jobs inadequately despite a. Empower the human resource
of the training provided? department.
Contingency b. If the benefits and compensation
received by the employees are not
plan sufficient, an increase should be
implemented.
c. Association of McGregors Theory
Y in the management of employees.
Thank you for listening!
Any questions?

Presented by:
Borral, Seth Joshua C
Dayrit, Rosslyn A
De La Cruz, Grace I.
Delos Santos, Albert F.
42