Franchising and Mama Bear

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  • Topic: Franchising, Pamantasan ng Lungsod ng Maynila, Manila
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  • Published : March 12, 2013
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Pamantasan ng Lungsod ng Maynila
(University of the City of Manila)
Intramuros, Manila

GRADUATE SCHOOL OF MANAGEMENT
PRINCIPLES OF MARKETING
MAMA BEAR – CASE ANALYSIS

VIEWPOINT
Mama Bear Child Care Center – Mylene Bartolome, Antonette Evangelista, Mary Rose Ang and Alalyn Ramos. TIME CONTEXT
Last quarter of year 2010.
I. PROBLEM STATEMENT

How can “MAMA BEAR” strategically expand their customer reach?

II. STATEMENT OF THE OBJECTIVE

To gain additional market segment in less than 1 year period.

III. AREAS OF CONSIDERATION

Strengths
* Mama Bear’s services are customized, with affordable rates * The company runs the business privately that is not under pressure to grow at a certain pace or to declare dividends. * The company has already a winning formula and team in running the business * Has the highest standard in dealing with childcare that provides safe environment for children ages three months to four years. * With access to a sizable credit line

* They offer a unique way of connecting parents and kids using the Web and Internet –based in. * Has the values of educational excellence, unwavering dedication and outstanding child care to promote child’s development using appropriate mix academic and recreational activities. * They had developed an advance quality childcare services and approaches that made their center as a dwelling place in enhancing the social and emotional growth as well as the development of both physical and intellectual skills. * Their business ventures becomes a success story for they have increased their institutional partners, increase of the number in the workforce as well as they have started to earned six figure salaries and bonuses. * Each partner has their own field of expertise contributing to “Mama Bear’s success. * One of the partners has extra condominium unit that can be used as additional venue.

Weaknesses
* Not all partners have enough money to contribute in expanding the business * With no bargaining power with suppliers and customers as compared with the big players * Partners’ dileneation of duties and responsibilities

* Not looking at the concern of employees’ welfare (No overtime pay and meal allowance given for the extra hours)

Opportunities
* Family set-up dual income.
* With hundreds of working parents as prospects
* Challenge of upgrading its new technology to be above par with competitors * Can help resolve the problem of unemployment
* More companies, such as PLDT, Phil. Stock Exchange, Citibank, HSBC, BPI, St. Luke’s Hospital, became their institutional partners through Collective Bargaining Agreement and Memorandum of Agreement.

Threats
* Copycats/competitors trying to imitate their approach
* Quirino Grandstand carnage incident that might result to 30 % foreign client loss. * Criticism from public media due to poor employee welfare management.

IV. ASSUMPTIONS

NONE.

V. ALTERNATIVE COURSES OF ACTION

1. Extend the Age range of kids from 3 months old to 8 years old, and provide additional services such as tutorials, recreational activities & workshops (e.g.Personality Development). 2. Engage into a franchising ventures, preferably in Non-Makati areas. 3. Provide promotional schemes by offering discounts, vouchers and coupons online.

VI. ANALYSIS
Alternative Course of Action No. 1 Extend the Age range of kids from 3 months old to 8 years old, and provide additional services such as tutorials, recreational activities & workshops (e.g.Personality Development). Advantages| Disadvantages|

* Value-added extra/variety of service * Be able to acquire new knowledge * Improving the quality of existing services| * Will entail additional time, cost on manpower and facilities, reasearch and studies * Inaccesssible to all potential customers|

Alternative Course of Action No. 2: Engage into a...
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