Mama Bear Case Analysis

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Case Analysis:Mama Bear

Viewpoint:Mylene, Antonette, Mary Rose and Alalyn

Time Context:

I. Problem Statement
What is the best thing to do in their current business situation?

II. Objective
To determine whether they should expand, sell or maintain their business as it is

III. Areas of Consideration

Strengths:
1. Continuous growth of operations
2. Growing number of potential customers
3. They have a lot of institutional partners which are big and stable 4. They have a tie-up with the most reputable and well-known companies in the Philippines 5. Each of the partners are hardworking and frugal and has a positive attitude 6. Has referrals from satisfied clients by word of mouth

7. Advanced and quality childcare services that meet parent’s needs

Weaknesses:
1. Qualified employees leave the company after gaining experience and training 2. Employees left behind by resigned employees need to be teach again 3. Criticized by public commentator/media due to non-giving of overtime pay and meal allowances to their employees rendering overtime 4. Doesn’t have as much bargaining power with customers and suppliers as a big player do 5. Different viewpoint and conflicting opinions of all partners

Opportunities:
1. Opportunity to earn higher income if they will continue to expand and add another market segment 2. Opportunity to become a larger organization and have greater bargaining power with customers and suppliers as their other competitors have 3. Opportunity to further exploit and maximize their potentials 4. Opportunity to upgrade their technology to be above par with their competitors which could give them a greater competitive advantage Threats:

1. Wrong decisions could have a devastating impact on them specially if their decision on their current business situation doesn’t work well for them as expected 2. Radio commentator/media might continually put them into a bad image if they wouldn’t resolve their issues on their employees 3. Threat of losing some of their clients because of the event that happened in the country which threatened the security of foreigners and tourist comprising a large percentage of their customers 4. Threat of losing out to their competitors if it keeps itself numb of significant market data relevant to their business 5. Possible disagreement between each partners if they do not come up and agree on the specific and ideal solution that could have a detrimental effect on their business 6. Threat of having a higher turnover of employees due to the current work condition of their employees

IV. Assumptions
None

V. Alternative Courses of Action

Alternative Course 1:
Take advantage of the current business situation by expanding further

Alternative Course 2:
Sell out their business before their competitors outcompete them

Alternative Course 3:
Maintain a status quo on their current business situation

VI. Analysis

Alternative Course 1: Take advantage of their current business situation by expanding further

Advantages:
1. Opportunity to earn higher profit due to having a larger number of potential customers 2. Opportunity to gain a higher bargaining power with customers and suppliers 3. Opportunity for more market opportunities and further exploit the company’s potential 4. Each of the partners have the opportunity to share their innovative and creative ideas that might greatly help their business

Disadvantages:
1. Higher capitalization requirement(e.g. higher investment cost in capitalization in technology areas) 2. Possibility of losing out to their competitors if they keep numb of significant market data relevant to business 3. Might not work out well and generate higher profits as expected 4....
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