BUSINESS PROCESS ANALYSIS

KE and ES GENERAL MARKETING

IS115-8_AM1

Submitted by
De Guzman, Danielle
Mirasol, Samuel Reiyu
Mandario, Dion Karl
Landingin, Justin

Submitted to:
Grace Lorraine Intal

2019

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 TABLE OF CONTENTS

I. Company Background

II. Organizational Structure

2.1 Discussion of the Function of each Departments

2.2 Determining the issues of each Department

2.3 Selection of the priority department to be subjected to improvement

III. Business Process Analysis

3.1 Swimlane Diagram

3.2 Discussion for Swimlane Diagram
3.3 Flow Process Chart
3.4 Discussion for Flow Process Chart
IV. Root-Cause Analysis

4.1 Diagram
4.2 Discussion
V. Business Process Re-design

5.1 Swimlane Diagram

5.2 Discussion for Swimlane Diagram
5.3 Flow Process Chart
5.4 Discussion for Flow Process Chart
VI. Conclusion

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 I. Company Background

Company: KE and ES Marketing

How did the company start?

The company started as a small marketing business. Since there are families that

centered around marketing who prospered, the founding personnel thought about that

business which was the alternative to the initial idea of painting and dying shirts. They took

clients whose main business revolves around product supplying, particularly those who are

catered in hotel management. They acquire products straight from manufacturers, which are

then distributed to the buyers, a process similar to a merchandising business. Depending on

the client’s request, they would get the needed stocks from the manufacturers in order to

provide their needs.

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 The company was founded by Mrs. Salve Perez. Being the founder, she’s tasked to

handle the receipts, as well as the stocks needed to be ordered. She also manages every

miscellaneous business task needed to be accomplished. Most transactions from client to

manager are done through actual, real-time conversations or through the company’s hotline.

They distribute this contact information via calling-cards, handed directly to their client’s

facilities.

The other founding personnel, Mr. Elmer Perez, who’s the husband of Mrs. Salve

Perez, is in charge of the delivery. He handles the signing and verification of receipts as a

part of the delivery process. He also instigates the proper retail pricing of the commodities

as part of the company’s marketing strategy, in a way which would be a boon to both them

and their clients.

What is the name of the business?

KE and ES Marketing. The marketing was founded upon the acronyms (Salve Perez

and Elmer Perez). As of now, they aim to promote a vision and mission, despite being the

proprietor business.

The company aims to focus internationally, since a lot of products originate from

there (Spain and Italy). The restaurants and bistros which are affiliated to the business

requires products from these countries, so the organization handles the task of purchasing it.

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II. Organizational Structure

2.1 Discussion of the Function of each Departments

Marketing department

The marketing department is in charge of the presentation and introduction of the company

in order to garner sales. The department heads the company by allowing the company to

have a steady growth by transaction within select employers.

In the case of the company, the marketing department is in charge of dealing with select

dealers, knowing that the selected company functions by pre-ordering goods (from another

company) and sending it to the customer (which, in essence, is another company).

Sales department

The sales department is in charge of trading and reselling by the company. The sales

department takes charge of the various acquisitions by the seller to the buyer, while also

taking note of the goods resold. The sales department of the given company is the one who

takes note on the quantity and specificity on the discussed terms acc. to the marketing

company.

Delivery department

The delivery department works by being the main mode of transport for selected goods to

be sold. The delivery department receives the pre-ordered goods and loads them, awaiting

and taking charge of distribution.

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2.2 Determining the issues of each Department

Marketing Department

As of now, the chosen company transacts with a select range of dealers and customers.

Being in charge of international purchases for the most part, assuring that the dealer would

send the products as per request of the client ensures a certain date for the products’ arrival.

In this case, potential problems would arise based on two scenarios:

 The customer did not receive the product on time of said delivery,

 The company did not facilitate communication between the two departments, and

 The source for pre-ordering did not guarantee the aforementioned date of delivery

and product condition, which leads to the customer not accepting the product.

Sales Department

Assuring responses from both sides give the chosen company the credit and assurance of its

reliability in determining its purpose. If not accomplished, the sales department would

encounter issues based on communication between the parties. The sales department

functions in a way that the broker does- it takes note of the relationship between the

customer and source company. Without the right questions, intentions, and logical data, the

company cannot assure that a certain mission would be accomplished.

Delivery Department

The delivery department can encounter problems in relation to the:

 Condition before and after delivery while handling,

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  Not taking count of product quantity along with the possibility of loss,

 Not delivering the right product, and

 Scheduled time of delivery.

2.3 Selection of the priority department to be subjected to improvement

Since the issues have repeatedly revolved around client and source relationships, the

department to be focused on should be the one who would be the most adaptable in

changing the strategic position of the company for the benefit of expanding its range.

Considerably, the Marketing department puts focus on a given audience, with a few

limitations. The Marketing department oversees management and customers, but it can be

said to lack short into bolstering sales due to the specificity involved. The marketing

department would then guarantee the resolution on issues on the products to be accounted

for.

The Sales department takes note of the revenue, but the Marketing department functions as

the primary reason for company increases.

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 III. Business Process Analysis

3.1 Swimlane Diagram

Prepared by: De Guzman, Mirasol, Mandario, and Landingin

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 3.2 Discussion for Swimlane Diagram

The swimlane diagram provides a descriptive portrayal of the multiple process behind

the organization, from how it starts in the market office to how it ends in the distribution of

the items.

First and foremost, which is the prerequisite for the business to function, is finding

the clients who will subscribe to their services who are usually from large to medium

institutions such as restaurants and hotels. The first decision point, which would be if whether

the client they found already has a supplier for the goods they need or not, would decide if

they would be having a guaranteed business subscriber or not. If it leads to them answering

that they do have a supplier, a calling card would be given, but possible transactions have

already been expected to be cut-off, marking the whole process as ended. On the other hand,

if the client does not have any suppliers, the marketing business would then offer their contact

information and thus allowing the process to move on to its next phase.

Proceeding onwards, client to owner transactions would proceed as discussed, with

the client requesting for product supply. The marketing company is now then tasked to sort

out their list of manufacturers for the specific stock that is required and contact each to secure

the items. In the operations procedure, once the items had been delivered to the storage

facility of the company, it’s now up to the managers to decide how the pricing of the

commodities would go, with consideration to market value and competition. Once done with

the price assignment, each product would then be sorted and labeled, and would undergo a

process of defect inspection. If the product has any unwanted properties or its quality is

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lacking, it would immediately be complained, and a request for replacement would be issued

to the manufacturer. If the product is good, then its well on its way to being delivered to the

clients.

Off to distribution, the highlight of the process. Here, all specific items ordered by

the clients are shipped from storage to the respective target facilities. Here they are given the

choice if they are willing to pay the check to the company right off the bat or schedule it for

a later date and have it delivered directly to the business account. And this officially closes

the process of KE and ES marketing and continues the cycle.

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3.3 Flow Process Chart
3.4 Discussion for Flow Process Chart

The Flow Process Chart is a symbolic representation of the sequence of actions

within a process, and for the business of KE and ES Marketing, they are operation,
transport, inspection, delay and storage. This chart also includes the estimated time and
distance of the process and the value of it, whether its Value Adding activity, Non-value
Adding activity and Essential Non-Value Adding activity.

For the business Flow process, it all starts by searching available clients and
restaurants, which is a Value Adding Activity, and through this, the next steps are inquiry,
and dealing with settled price rates agreeable to both business, and settling terms with
managers for the benefit of transaction and establishment to stabilize, which are Essential
Non-Value Adding Activity, that can be further changed and shortened. Next, the client can
request for a product through the business and make order, which is a Value Adding
Activity. Then, the business will contact the manufacturer for the supply and request of the
product/s, which is a Value Adding Activity. And what follows next is the receiving and
scheduling for payment completion, which are also Value Adding Activity.

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IV. Root-cause Analysis

4.1 Diagram

4.2 Discussion
Problem: Limited Market Range

The KE and ES marketing business is not yet a full-blown large organization and

since the marketing strategies are limited, this hampers the progress of the company to

extend its scopes. With limited to no advertising methods, the list of potential clients to

acquire is quite a challenge to receive, and the company is forced to find them instead of

the other way around.

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Sub problems

Specificity

The nature of the business concentrates around a specific client product, limiting the
number of customers available.

Irregular Client Rate

The number of clients fluctuates and increases over time; this results in the
irregularity of management deals.

Inefficient Communication

The mode of communication for the business is dealt with through phone calls most
of the time.

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V. Business Process Re-design
5.1 Swimlane Diagram

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5.2 Discussion for Swimlane Diagram

Starting off the transaction between the three parties (the supplier, business, and

customer) originates from finding out an ideal source and from establishing a standardized

customer relationship in order to ensure a steady flow and increased reliability to accelerate

income and revenue for the business. Contacting new clients, in this case, would allow

allotment on whether a company has an existing supplier or not; it is up to the given business

to choose if it would like to work either as a temporary supplier or not. In some cases, the

business has the option if it would like to work as a source for the client within a designated

time frame. If the client has another supplier, the business has the opportunity to work with

the clients and/or to find new ones (In order to further understand the business flowchart, the

given scenario can be based upon the case of a new company).

As soon as the case for setting product details, price, and delivery is agreed upon, the

product can be brought to the delivery location upon arrival. The given product will be

inspected for the benefit of the supplier. In some cases, there are instances of product damage.

Since a rescheduled target date is requested for refunds and replacement, the delivery process

must start over at that point. Once done, the product is brought back to the office for client

delivery.

The final part would be delivering the goods to the client. Most clients are

considerably located for easier delivery rate. The client would be issued an official receipt.

If the client has the option to pre-pay goods, transaction would be acknowledged – in cases

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in which the client is not, the client has predetermined the option whether to pay in full or

not. A schedule would be allotted to fully pay the business.

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5.3 Flow Process Chart
5.4 Discussion for Flow Process Chart

Based on the objective of allowing efficiency within the KE and ES Marketing

business, the recommend flow process chart show the following options:

 Issuing the choice for prepaid payment (notably via credit card/check).
 The option to allot a rescheduled date and/or refund (in case of damaging via
transport).
 The option to receive payment if not fully completed.

Specifically, the business will reduce the need for contacting various suppliers since
the given clients would have partial to total dependency when it comes to resupplying their
needed products. It is in order to improve the steady flow of customers, inquiring in terms
of availability that ensures the amount of supplies needed to be garnered.

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 VI. Conclusion

Overall, the group have learned the problems of KE and ES Marketing business with the
help of visual representations of Diagrams, and have created a recommendation for business
process improvement based from the group observations, thus the group recommends the
following procedures to be done in order to simplify the flow of the business:

 Investing in long-term customers

 Allowing various modes of payment to settle cash
 Setting up substitute delivery dates in case of damage/refund
 Growing the scale of the business
 Investing the presence in the market for the long run.

With the practice of the following procedures, the business will be able to attain more
operation efficiency, less cost on expenses and a secured list of clientele.

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