CHAPTER 4

ALTERNATIVE COURSES OF ACTION

This chapter presents the alternative courses of action to address the focal issue presented by

the researchers in the previous chapter.

Alternative Courses of Action

Various alternative courses of actions can be presented and proposed by the researchers to

determine the best possible ways on resolving the focal issue of the study. Discussions of

specific strategies for accomplishing the resolution of the issue are as follows:

1. Improvement of Business Policy regarding Price Mark-down. The researchers proposed

to improve the company’s business policy to be more precise in their regular rate.

 The company has an estimated 60 clients

The following data presented refers to the comparison between Revenue Based on

Unimproved Policy and Projected Revenue Based on Improved Policy:

Illustration 1.1 - Revenue Based on Unimproved Policy

No. of clients * Regular Rate

+ No. of clients (special) *lowered rate
Total Revenue
 Illustration 1.2 – Projected Revenue Based on Improved Policy

Total No. of clients * Regular Rate = Total Revenue

2. Fix Discount Rate. The researchers proposed to have fixed discount rate to prevent

them from giving a much lower rate to some clients than regular rate.

 From 10% to 20% discount would be the company’s limit on giving discount to

their clients, beyond that range it would be unfavorable for the company’s gross

receipts.

 Maximum of 15 clients are benefited from the lowered rate. Assuming those

clients would be given a 10% - 20% discount the company’s revenue will be:

Illustration 2 – Projected Revenue Based on Improved Policy

o Regular Rate * 80% = Discounted Rate

o No. of clients (reg.) * Regular Rate

+ No. of clients (disc.) *lowered rate
Total Revenue

3. Terms and Conditions. The researchers proposed that the clients must agree to the

terms and conditions of the company regarding payment duties.

 A memo will be sent to the clients who was not be able to settle their

accountabilities on the specified due date.

 20% penalty will be imposing to the client who still did not able to settle the

payables after receiving the memo.

If there are stated due dates on collection of payments and there are 20 clients that

normally do not comply to pay after the 2nd memo, is to be penalized by 20%, the

company’s revenue will be:

Illustration 3 – Projected Revenue Based on Improved Policy

o Regular rate * 1.20 = penalized rate

o No. of clients (reg.) * Regular Rate

+ No. of clients (pen.) *lowered rate
Total Revenue