TIME CONTEXT Casa Angela was a family-owned corporation engaged in production of ladies fans. It was established and registered in SEC in 1951.
VIEWPOINT Mrs. Morato the president of the company felt that the cash management was deficient. At times she found herself having to put up personal funds because the company could no longer finance its internal requirements.
CENTRAL PROBLEM Symptom:Casa Angela Corporation was suffering from an abnormal sales decline. Cause:The fixed salary method of compensation affecting morale of the sales force.
STATEMENT OF OBJECTIVES Must Objective: To increase in three months time the abnormal sales decline by at least 5%. Want Objective: To reduce production costs in non-worker related areas by 10%.
AREAS OF CONSIDERATION
Strength: Casa Angela offered about 50 different types of fans which were distributed throughout the country in 30 stores and small botiques. Major buyers were the large departments stores including shoemart (40% of sales), Rusrtan’s (30%),Manila COD (10%), and Tesoro’s (10%).
Weaknesses: Majority of the credit policy was to grant 30-day credit period to customers. Collection had been difficult and often, the collection period reached 60-120 days.
Opportunities: Casa Angela will acquire two machines that will double the volume of production with less error and would lower the labor cost.
Threats: If the decline of sales continues it would result to increase the deficit and lot of employees would be laid off.
CONCLUSION
Mrs. Morato should not just focus on the projected sales forecast because it would not help her out to increase the sales. She can also use that as basis on how she arrives with a better solution about the problem. She must cut down the labor cost since some of them are not productive. In order for her to minimize the cost of the entire operation she must decrease her administrative staff since she can perform some of the task of her subordinates.
