Case Study Confettti Shoes Essay

Confettti Shoes located at Greenbelt Square , Makati , Metro Manila has brought to Mrs. Bello an instant success since it was opened in the year 1983.It wasoperated by Mrs.Bello and her employees ( salesgirl) which composed of cashier and a storemanager that is paid of fixed month salary, four regular employees paid a daily wage and four students trainees that are paid less than the minimum wage requirement with a maximum six-month contract. Because of this she op0ened another branch Quardpark mall also in Makati, during the year 1984 that is composed of a cashier, two regular and two student trainees because of it’s small size area.

In Angeles Pampangan another branch of Confitti Shoes was opened in the year 1983. Mrs. Edna Perez a friend of Mrs Bello who is skilled in Accountancy was called by Mrs. Bello to get some more opinions about the system of controlling the inventory,unrecorded sales and also about the new outlets in Pampanga and EDSA . Mrs. Edna Perez promised Mrs. Bello that she will conduct a survey about the current shoes and dates for the control.

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After the visits, interviews and ways of operations. Mrs. Edna Perez figured out the following sales book and it’s format, the posting of stocks cards that do not matched from the Greenbelt store to the other outlets. Lastly the daily cash deposits that do not tally with the sales book. It is because according to the cashier also the storemanager it is about the discounts from 10% to 20% that is given to customer which are to friends of Mrs. Bello and the busy of the employees.

Consequently another meeting between Mrs. Edna Perez and Mrs. Bello she asked the owner some question about what she has been doing when she visit the outlets. and after receiving the answer from Mrs. Bello, the owner asked her friend if there are an alternative ways for the system in order to minimize the loss incured.

In order to solve the issue regarding to the system ot the other outlet of confetti shoes, what alternative way to control the operation activities of
the store in handling cash and recording sale?


Success of the business in the passed years.
Confetti Shoes has different outlets.
Designs are executed by shoe manufacturers from Marikina.

The recording system was not systematic because the stockcards are not up to date. She trusted 100% her cashier without systematic records of the sales OPPORTUNITIES
Their location is in the malls.
Increase in demand for shoes because of the improvements of fashion.

Their competitors are those big company and most likely are the popular brands.


1. The custody of cash and the recorded of sales in the ecash register should be different persons. ADVANTAGE: There will be more effective and efficient job because there is a distribution of job and the employees can focus. DISADVANTAGE: The management should employ another employee and there is more expenses.

2. Mrs. Bello should implement the use of cash receipts in all the Confetti shoes outlets. ADVANTAGE: The recording of sales will become easier because the cash receipts will serve as reference so every sales will be record in the tally with the sales notebook. DISADVANTAGE: The employees will have more work to do.

3. Mrs. Bello should be strict in implementing that the stock cards or the
recording of sales in the stockcards should be done every closing of every outlet, everyday. ADVANTAGE: It will become easier to Mrs. Bello to know about the stock that are need to be replenish on time . Through thisb, the job of the employees will be more organize rather than counting individually to replenish . DISADVANTAGE: More jobs on the side of the employees / salesgirls

4. Mrs. Bello should control the company by having the Merchandise Claim Counter System and Economic Order Quantiity ADVANTAGE: Using these controls , the recording sales will be monitored , and will be equal to the cash at hand . This control also protect the stocks from shoplifters. The economic order quantity helps the company to know the right number of stocks needed to be order . It lessen the chance of having so much stocks that can loss sales and having little expenses regarding to the storage/ stock rooms. DISADVANTAGE: There is no disadvantage.


In order to solve the issue regarding to the system of the other outlet of confetti shoes, Mrs. Bello must assign different person who is responsible for recording of sales and handling the cash it is to prevent when error is made the owner can identify who is accountable for that mistake. Mrs. Bello need to maintain adequate records in order for that every cash receipt is properly deposited.

It must also must apply some technological control like for example whenever inventory is out it is recorded automatically and it also reduces some time in recording sales manually, she also must evaluate it’s purchase of invetory properly time to time, by computing it’s economic order quantity, reorder point and by having it’s merchandise claim counter system. to identify the number of order is needed for the outlets.

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