CASE 4: RISTORANTE FILIPINO: MORE

After finishing a course in Hotel and Restaurant Management at St. Paul’s College, Ms.
Remedios Espiritu immediately starts to assist her mother in operating “Ristorante Filipino,” a big
restaurant in San Fernando, Pampanga. The firm’s total personnel complement of 30, which
includes her mother as proprietor and manager, consists of waiters, cooks, cashier, a security guard,
utility boy, technician, and a supervisor. A five-piece band plays middle-of-the-road music every
evening. By all indicators, the business appears to be succeeding.
As a consequence of favorable results, Remedios is requested by her mother to prepare a plan
for expanding the business. The first move will be to open a branch within San Fernando. The ten-
year target will be to establish branches in Tarlac, Bulacan, Nueva Ecija, Bataan, and Zambales.
Remedios has a sister who is accountant, another is an industrial engineer, a brother is a
chemist, and another is the training director of a company. All of them, except Remedios are
employed outside of the family business, with an average job experience of five years. All of them
have indicated that they prefer working with their mother, if given the opportunity.
All the parts of the expansion plan appear to be manageable tasks for Remedios, except that
part which identifies the source of funding for the expansion. Even if the family owns the
restaurant, their mother does not want to rely on bank loans as source of capital.
Remedios knows that the family’s asset are not sufficient to finance even a branch. However,
her mother insist on opening new branches within two years. According to her mother, “Timing is
very important in business.” The next two years is very crucial to our continued success. To finance
the proposed expansion, Remedios is considering a change in ownership form as an opinion.
However, she must think hard on type of ownership that will suit their family’s business.

•Evaluate possible 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.
•Prepare a cost-benefit analysis for each of the possible form of ownership other than its current
business.
•“Ristorante Filipino” in San Fernando, Pampanga. Owned by the mother of Remedios, she is the
manager and a proprietor of this big restaurant. So, Remedios take charge on this matter because
her mother plans for expanding the business in order to maintain the popularity and the succession
of the business. The main reason why their business is cannot raise funds to expand it because
there is the difficulty in raising capital and the owner has lack of ability and experience because
the firm will need a generalist with sufficient grasps of various specialized functions like
marketing, production, finance, accounting, personnel and research to expand the business In this
case it is just owned and operated by a single person (sole proprietorship). To finance the proposed
expansion, Remedios will consider to change an ownership form and that will be a “partnership”
type of the business. A partnership is a legal association of two or more persons as co-owners of
an unincorporated business. Partnership provide opportunities for additional sources of capital but
power has to be shared among the partners. It has its advantages and disadvantages. The
advantages of partnership are the ease of formation, pooling knowledge and skills, it has more
funds available that combined resources of the partners provide a bigger source of funds. The
resource potentials of the partners combined with a high credit rating result in the financial
capability for partnership, it has the ability to attract and retain employees and the income of the
partnership is not tax separately from the partner’s incomes which is a tax advantage. But its
disadvantages are the unlimited liability, limited life, potential conflict between partners and the
difficulty in dissolving the business.
CASE 5. JONA CAR RENTAL: Before the Next Teardrop Falls

For fourteen months, Mr. Jose Naguimbing acted as general manager of Jona Car Rental.
The company had branches in Angeles City, Olongapo City, and Baguio City. The main office
was located in Makati City.
Jose succeeded his brother Pedro who founded the company and was well-liked by his
subordinates. The car rental company was very lucrative when Pedro left it establish another
business. Jose was very enthusiastic during the first few months of his stewardship. At the fifth
month, his staff members began losing confidence in his abilities to run the firm. One time, when
a purchase order for three units of Toyota car was presented to him by the office manager for his
signature, he signed it immediately. The manager filed the order with the dealer on the same day.
The next morning, however, Jose instructed the office manager to cancel the order. He also
instructed the manager to buy three units of Mitsubishi cars from a dealer.
When the position of branch manager for Angeles City became vacant, he appointed someone
whom his immediate staff thought to be the least deserving of the three candidates. After three
months, his staff members were proven right: the revenues of the branch were drastically reduced.
Compared with a competitor in the area, the performance of the branch was dismal.
When Jose decided to establish another branch, he asked his staff to identify three potential
sites for him to choose from. He picked Laoag City. It turned out that Laoag had the weakest
potential. After a few months of operation, the branch had not shown any sign of promise. In
contrast, the competitor who put up a branch in Santiago City in the same year was registering
substantial revenues, Santiago City was one of the potential sites forwarded to Jose for
consideration.

•Examine and discuss which of the steps in decision making was not done properly by Jose and
caused the kind of output his decision has brought.
•Propose a decision tool or model that Jose can use to improve his performance. Use either
qualitative or quantitative.
CASE 6. CAMELOT RECORDS: Those Were the Days

Mr. Miguelito Salde worked very hard as salesman of recorded music. He represented a
company, which distributes compact discs (VCDs and DVDs) of foreign labels. For about ten
years, he personally called on dealers in Metro Manila and the provinces to convince them to buy
his products. His exposure to the industry provided him with the right mindset to establish his
own recording outfit.
With his mind working, Miguelito hatched a plan on how he would go about operating his
own company: the Camelot Records. In addition to his knowledge about the market, he collected
information on the production aspect of recording. The plan and the required information were
all stored in Miguelito’s memory.
Later, Miguelito mentally prepared a financial plan, as well as personnel recruitment
program, no matter how crude they were. When he thought that his business plan was complete,
he began to implement it with the required speed. He worked systematically by following
procedures he alone knew and explaining to his recruits the exact functions of each of them.
Within a few months of operating, the company was able to produce two CDs of original
Filipino music. Local singers and composers were tapped. The market received the products with
moderate response. Miguelito went on producing more recorded music until one of the first the
CDs became a commercial hit! This feat catapulted the company to recognition by the industry.
The company’s commercial hits were followed by other hits of succession.
All of the successful efforts of the company were made without the benefit of a written plan.
What Miguelito did was to personally supervise all activities from hiring talents to providing
directions to salesman. He did his vigorously with the company’s total workforce of 51
employees.
As the company grew with more productions and more than 200 employees, Miguelito’s
immediate subordinated started to worry that their boss must be feeling the burden of a workload
that was getting heavier as the years passed. The staff felt that their leader must begin to delegate
some of the responsibilities to qualified persons. They thought that had to be fully organized, a
written plan must be devised so every employee could effectively assist in implementing the
various projects of the company.
When the staff mentioned to Miguelito about the importance of a written plan, Miguelito
replied by saying:
“This company was organized without a written plan; it became successful without a written
plan; it will continue to be so without a written plan.”|

•Create a list of possible adverse effect top business of Miguelito’s no written plan strategy.
•Explain the value of shared planning as a requisite to strategic business growth.