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CASE

ANALY
SIS
TRICIA ASHLEY QUIJANO
ABM 11 – ST. JAMES

CASE ANALYSIS 2

Summary
Ms. Remedios Espiritu started assisting her mother in operating Ristorante Filipino after she
finished a course in Hotel and Restaurant Management. It is a big restaurant located in San Fernando,
Pampanga that seems to be succeeding. She was requested by her mother to prepare a plan for the
expansion of the business. Her mother plans to open a branch within San Fernando and branches in
Tarlac, Bulacan, Nueva Ecija, Bataan, and Zambales after. Remedios has an accountant sister, an industrial
engineer sibling, a chemist brother, and another sibling who is a training director of a company. They are
all employed outside of the family business with a five-year job experience. They all prefer to work with
their mother, if given the opportunity.

Remedios finds it hard to manage the part of the plan wherein the identification of the source of
funding is needed. In addition, their mother does not want to rely on bank loans. Their assets are not
enough to finance a single branch but their mother still insists on opening new branches within two years.
Remedios is considering a change in ownership form to finance the proposed expansion.

LEARNING ASSESSMENT
1. Evaluate proposed re-organization to suit for the planned expansion. Present various pros and
cons for each of the proposed form of ownership that may serve as basis for decision-making.
SOLE PROPRIETORSHIP PARTNERSHIP CORPORATION
PROS: PROS: PROS:
 If Mrs. Espiritu chose to stick with  Assuming that Remedios and Mrs.  Assuming that the shareholders
a sole proprietorship form of Espiritu would be partners, this would be the Espiritu siblings
business, there would be no partnership would result to a more whom according to the given
increase in expenses. Sole stabilized business since Remedios information are stable when it
proprietorships are least costly is a fresh graduate of HRM course comes to wealth, there wouldn’t
unlike other forms of business which is directly related to the job, be a problem in the source of
ownership. making her the most suitable funding for the proposed
 A change in form of business
relative for the job. expansion.
ownership would take a lot of  The decision-making wouldn’t be  Being a shareholder doesn’t
adjustment. If they decided not to complicated because the business require direct management. Even
change the form of ownership of only involves two owners. In though they are already contented
their business, the adjustment addition, they have a mother- with their jobs and doesn’t have
wouldn’t even take place. daughter relationship where flexible time, it wouldn’t matter.
respect is present which The business only needs their
contributes to the feasibility of invested money.
 There would be a lot of individuals
having a harmonious agreement
involved in the business but
between partners.
 Mrs. Espiritu was able to handle because the other siblings would
the business by herself even only act as the investors aside from
without the help of her Remedios, the latter and Mrs.
daughters/sons. With the Espiritu would be the only handlers
assistance of her fresh graduate —resulting to a lot of pros that the
daughter, the business would be partnership form also possesses.
 The formation of a corporation is a
more well-managed.
 One of the general advantages of long process with lawyers involved
having a partnership form of but since the business is already
ownership is the ease of arriving at succeeding and has multiple
a desired decision when it comes employees, it wouldn’t be that
to the proposed expansion. hard to register the business.
 Having a partnership form of  Even though it is costly to form a
ownership would be less costly corporation, it wouldn’t be a
than a corporation form, making problem because there would be
the owners save money for the five professionals including Mrs.
expansion. Espiritu to fund the change in form
of ownership.
 Decision-making wouldn’t be hard
because the future shareholders
are relatives, therefore resulting to
a possibility that the business
would be successful.
 All of Mrs. Espiritu’s sons and
daughters are professionals so I
assume that they are all properly
educated when it comes to this
type of task.
CONS: CONS: CONS:
 There wouldn’t be a change at all  With only Mrs. Espiritu and Changing the ownership form of the business
in the regulation of the business Remedios managing the business, to corporation is costly because there’s a lot
generally and in the flow of it would be hard to accumulate of administrative fees, complex tax, and legal
income particularly which would adequate funds for the expansion requirements to settle. Their existing fund
be a disadvantage for the because Remedios is only a fresh would decrease in cost and it would be hard
proposed expansion. graduate. having only two years left to expand.
 Mrs. Espiritu and Remedios need  Remedios doesn’t have enough
to think of a better way to attract experience in managing a
more customers in order to restaurant because she’s only a
improve the flow of income and fresh graduate.
we all know that this is one of the
hardest parts of having a
business.

REFLECTION
Operating a business is complicated because there is a lot of different factors to consider. In this case, the
owner of the business is a professional and the newly assigned person to assist the owner is her own
daughter. It is hard for the Remedios to disagree with what her mother wants because respect should be
taken into account and she should consider the fact that Mrs. Espiritu is already an expert when it comes
to this job. Even though there are some conflicts, it wouldn’t matter because if you really are a good
handler of business, everything would be in place.