Mama Bear Case Analysis Essay Sample

9 September 2017

Strengths:
1. Continuous growing of operations
2. Turning figure of possible clients
3. They have a batch of institutional spouses which are large and stable
4. They have a affiliation with the most reputable and well-known companies in the Philippines
5. Each of the spouses are hardworking and economical and has a positive attitude
6. Has referrals from satisfied clients by word of oral cavity
7. Advanced and quality child care services that meet parent’s demands






Failings:
1. Qualified employees leave the company after deriving experience and preparation 2. Employees left behind by resigned employees need to be teach once more 3. Criticized by public commentator/media due to non-giving of overtime wage and repast allowances to their employees rendering overtime 4. Doesn’t have every bit much bargaining power with clients and providers as a large participant do 5. Different point of view and conflicting sentiments of all spouses

Opportunities:
1. Opportunity to gain higher income if they will go on to spread out and add another market section 2. Opportunity to go a larger organisation and have greater dickering power with clients and providers as their other rivals have 3. Opportunity to foster feat and maximise their potencies 4. Opportunity to upgrade their engineering to be above par with their rivals which could give them a greater competitory advantage Menaces:

1. Incorrect determinations could hold a annihilating impact on them specially if their determination on their current concern state of affairs doesn’t work good for them as expected 2. Radio commentator/media might continually set them into a bad image if they wouldn’t resolve their issues on their employees 3. Menace of losing some of their clients because of the event that happened in the state which threatened the security of aliens and tourer consisting a big per centum of their clients 4. Menace of losing out to their rivals if it keeps itself asleep of important market informations relevant to their concern 5. Possible dissension between each spouses if they do non come up and hold on the particular and ideal solution that could hold a damaging consequence on their concern 6. Menace of holding a higher turnover of employees due to the current work status of their employees

IV. Assumptions None

V. Alternative Courses of Action

Alternate Course 1:
Take advantage of the current concern state of affairs by spread outing farther

Alternate Course 2:
Sell out their concern before their rivals outcompete them

Alternate Course 3:
Keep a position quo on their current concern state of affairs

VI. Analysis

Alternate Course 1: Take advantage of their current concern state of affairs by spread outing farther

Advantages:
1. Opportunity to gain higher net income due to holding a larger figure of possible clients 2. Opportunity to derive a higher bargaining power with clients and providers 3. Opportunity for more market chances and farther work the company’s possible 4. Each of the spouses have the chance to portion their advanced and originative thoughts that might greatly assist their concern

Disadvantages:
1. Higher capitalisation demand ( e. g. higher investing cost in capitalisation in engineering countries ) 2. Possibility of losing out to their rivals if they keep numb of important market informations relevant to concern 3. Might non work out good and bring forth higher net incomes as expected 4. Requires uninterrupted invention & A ; research and developments costs to maintain up with the current concern tendencies particularly in the countries of engineering 5. Possibility of losing some of their clients as a effect of holding a higher engineering as a privilege in their concern enlargement which includes fiting latest crazes that the kids are playing ( parents might make up one’s mind non to inscribe their childs because they would believe that more playday will go on inside the child care centre alternatively of analyzing )

Alternate Course 2: Sell out their concern before their rivals outcompete them

Advantages:

1. Relieve the spouses from emphasis. concerns and tenseness with respects to the uncertainnesss and hazards built-in in their concern. Besides saves them the
attempt required in pull offing their concern 2. Each of them will bask more clip for relaxation since their engagement in their concern is taking much of their clip

Disadvantages:
1. Losing chance to gain higher net income
2. Significant decrease of income on each of the spouses 3. Losing the chance to turn and the possibility of operating on a larger scale 4. Numerous paperworks involved and things to carry through and complete as a consequence of selling out their concern 5. High cost associated with the effects of selling their business- settlement cost. distribution cost to spouses and colony of answerabilities with assorted providers 6. Losing chance of each spouses to turn and work their ain potency

Alternate Course of Action 3: Keep a position quo on their current concern state of affairs

Advantages:
1. Lesser hazard of doing hazardous determinations
2. Lesser emphasis and attempt to continually introduce particularly in countries of engineering 3. Lesser cost

Disadvantages:
1. Losing chance to turn and spread out and no chance to derive higher dickering power 2. Losing chance to gain higher income
3. Becoming stagnant or being left buttocks and possibility of losing out to their rivals in the close hereafter

VII. Decision

Variables: clip. attempt. energy. resources

Alternate Course 1: Expanding further

Business enlargement will typically take more clip. energy. attempt and extra resources but even though it is hazardous and dearly-won. the wagess associated with it are besides much higher. The riskier the determinations. the higher the returns. Hazard is built-in in every concern and if we don’t have the bravery to make it. we wouldn’t be basking the wagess and benefits associated with it.

Alternate Course 2: Sell out their concern

Selling out their concern will salvage them the clip. attempt. energy and resources needed but they will lose the chance to turn and gain a higher net income. Even though it means stress free and hazards free. it besides means losing net incomes and a losing a batch of market chances. In concern. you should ne’er give up and keep a positive attitude and mentality to pull positive energy

Alternate Course 3: Keep a position quo on their current concern state of affairs

Keeping a position quo means lesser hazard. lesser energy and attempt. lesser resources and duty but so once more. you lose the chance to turn and gain higher net income. You become dead of relevant market informations needed to be successful in pull offing the concern which in the close hereafter can hold a negative impact on the company because they have no room for betterment. Change is changeless and every concern must continually endeavor to introduce to derive a competitory advantage.

All in all. the Alternate Course of action to be adopted is Alternate Course No. 1 because you have to take advantage of the current concern state of affairs by spread outing farther and this might be riskier for them but the wagess and benefits associated with it could be more good to them in the long tally since they will hold a batch of market chances ensuing to deriving higher net incomes.

VIII. Plan of Action

1. Raise adequate money for capitalisation demand by selling 40 % of their stock to a venture capitalist or to the public 2. Take advantage of their recognition line. borrow extra financess needed for enlargement 3. Use some of the financess to ship on the new engineering needed for enlargement and betterment of child care services 4. They could engage a fiscal adviser to maintain them updated of current concern tendencies and give them a good advice on where to put the other financess for profitable investings 5. Look for a venture capitalist who has a meaningful and relevant experience that can greatly lend originative and indispensable thoughts that is of great aid to the concern for farther success 6. Broaden outside contacts with your clients and providers. select dependable providers to fulfill clients. Establish good relationship with them by giving value added services to them.

For illustration. you can offer dropping their childs to their houses for less fuss and added convenience for the parents who wouldn’t need to bring their childs from child care centre specially if they are coming home tardily from work 7. Adopting a selling scheme to keep and increase your current clients. Example. you can give price reduction to your long clip clients specially if they will inscribe all of their childs in your day care centre 8. Using qualified forces which are closely attached to the childs and has echt concern for the childs 9. Giving extra inducements and overtime wage and allowances for the employees rendering work overtime and demoing good public presentation.

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