The Santosfamilyopened its first outlet for selling a line of handmade gold and other jewelry in Quezon City in 1968. The company offered a wide assortment of lady’s gold ornaments including several lines for the B, C and D markets. For more than ten years, it remained a small single store business managed directly by the four members of the Santos family and a few trusted employees. In the early and later part of the eighties, however, the family took advantage of the establishment of new shopping malls in Metro Manila and opened four new outlets located in the different part of the city.
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It added new lines of jewelry as sales expanded. Among the new lines were gold medallions that could be made in different sizes and/or images using specialized imported equipment. The increase in the number of the stores necessitated a major expansion of the stores necessitated a major expansion of the store staff and the division of work among the owners in managing the sales outlets. The nature of the company’s merchandise required that a member of the family directly supervised the day to day operations of the outlet.
In addition, expansion created a host of new problems in operations which necessitated the design of new store systems and procedures, for example for inventory taking and for ensuring the secure storage of the store merchandise after working hours. During this expansion, the four members of the family actively involved in the business for example the Santos couple and their two eldest sons, found it increasingly difficult to effectively supervise the five company outlets.
As a result, the family decided in 1989 to close the original store located in Quezon City and defer the new opening in the market. Elizabeth Santos, the youngest among the Santos children decided to join her parents and brothers in the management of Gintong Hiyas after completing her bachelors’ degree in Commerce in 1992. She is very computer and IT literate that can help her family to solve their problem in inventory and security. Case Analysis • Point of View Elizabeth as new joined member in the business of her family knew the business’ weakness.
She knows that her family is left behind in term oftechnology, adapting into the new systems make their work easy especially in inventory and in security. Using advanced technology can make their monitoring, controlling and supervising to the business • Statement of Problem -The increase in number of store leads to increase of store staff and division of work among the owners of the store in managing the sales outlet. -The owner needs to directly supervise the day to day stores’ operation
-The expansion of stores requires the design of new systems and procedures foe example inventory taking and for ensuring the secure storage of the store merchandise after working hours -Supervising, controlling and monitoring become to difficult for the owners -Expansion results to closing of the original store located in Quezon City and defer to the new opening in the market. SWOT Analysis • Strength -Wide assortments of lady’s gold ornaments including several lines for the A, B, C, D markets offer by the company – It is a family business.
The four stores is control by Mr. and Ms. Santos and their two sons and one daughter – Mr. and Ms. Santos’ daughter finished the study of Bachelors’ of Commerce. She is IT and computer literate. -Mr. and Mrs. Santos have few trusted employees -The family gain advantage when the new shopping malls establish in Metro Manila. -They have four stores located in the different part of the city -They added new lines of jewelry as sales expanded for example gold medallions that could be made in different sizes and/or images
-They use specialized imported equipment – They are in ten years of service so the people very known them in jewelry industry • Weaknesses -The Santos’ family tries to operate the business very manually and in a traditional way. They directly controlling, monitoring and supervising which required so much effort and very time consuming. -There are only four members of them who manage the business and they all agreed that they cannot continue their set up because it is very difficult, which lead to decide to close the original branch.
-They have no specific or advanced system that can help them to do the inventory and improve their securities • Opportunities -Elizabeth who finished the B. S. Commerce, deciding to join her family business can help her family a lot in monitoring, controlling and supervising the business -Her knowledge about IT, computer and advanced technology can minimize her family problem about monitoring, controlling and supervising – The problem in too much effort and very time consuming can also be minimize -Elizabeth can introduce new system that makes the inventory and systems work simple to handle
-They have four outlet stores which make them very accessible to the consumer of jewelry and make them very competitive. • Threats -Theenvironmentof the business of the Santos family are undergo changing in internal and external aspect, not coping to the changes will result to a problem that soon be hard to handle – The technology of now are advancing if the Santos family do not use this opportunity, their competitors may superior them and get their costumer if they know how to adapt to this technology.