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

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.