Honey Donuts

Page 1 of 5

Honey Donuts

By | Jan. 2011
Page 1 of 5
HONEY DONUTS, INC.
A Case Analysis

CASE ANALYSIS: Santos Timber Company

I. Point of View
The point of view of Mr. Mark Honrado will be taken because he is the general manager and he is assigned in monitoring the purchasing and production.

II. Analysis of the Case Situation
a. Macro-environment analysis
i. Demographic Environment
1. The main branch is located in Makati.
2. There is a large shopping mall in EDSA.
b. Task Environment
i. Competitors
1. There is a possibility of having competitors in the locations where Mr. Honrado plans to put up branches. ii. Clients
1. Aside from the current customers of Honey Donuts, Inc. in Makati, the company will be opening its market to students. c. Company Analysis
Honey Donuts, Inc. is a corporation, owned and controlled by Honrado family, which sells 26 varieties of doughnuts. Its operations started in Makati in 1989. The owner, Mr. Mark Honrado, served as the general manager and was in charge of the purchasing and production functions; while his wife, Mrs. Honrado, assumed the management on sales and the Coffee Shop. Some of their employees include saleslady, who assists Mrs. Honrado, and a part-time accountant that reports to the office every Saturday to keep the books of the corporation.

III. Problem Analysis
a. Problem Discussion
Considering the success of Honey Donuts, Inc.’s operations on its first year, Mr. Honrado thought of putting up 2 more outlets- one in Katipunan Road where students are the target market and another in a large shopping mall (Shoemart, EDSA). Although he was confident that he can still manage to do the purchasing function for the three outlets, he was concerned about the controlling costs and the quality of the products if baking would be done at each branch. And so, he thought of retaining the baking operations in Makati.

Likewise, Mrs. Honrado was thinking about keeping the policy of the company which is “Never to sell tomorrow today’s unsold donuts!”....