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Saturday, September 29, 2012

Pranav Case - Hannah Abellera

Hannah Rhuelle B. Abellera
S10-ENTREP
Pranav Case:

1.    1. Since what Mark and Karlo missed before putting up Pranav New York was to study the pros and cons of the location they have chosen in a detailed manner, the problem of the case is strategic. They felt the need to start up the business so they decided to do further location study, simultaneously. Later, in their study, foot traffic is distributed on its key entrances was a good number. Sadly, the location of Pranav New York was not an area where an incidental traffic, especially for male, would occur. Body Senses section inside the mall must be passed by first before Pranav can be accessed by mall-goers. A customer must intend to reach the place, located on the 3rd floor of Robinsons Galleria. Still, they looked at the situation wherein there would be possibility that Pranav would be noticed if a mall-goer would enter the Body Senses section. Generally, the mall has a larger percentage of female mall-goers, about 60%. This demographic should have been considered before, since their target market were males, and men seldom go to 3rd floor just to get a haircut. The professors were correct in stating the fact that men would preferably go to a more accessible area, like the ground floor for a fast service like haircut. Having weak sales, to sustain the operations and gain profit became the result of the non-strategic location of Pranav, because of its poor accessibility. Chairs that were not fit for the customers and spas with a condition that was not preferable for men, contributed to its failure also. If Pranav is building a male image, they should have hired skilled and artistic straight men to facilitate some service, especially hair cutting, so as men would be comfortable in going to Pranav. They should have also stood by the promotion of "macho" image for the establishment.
2.  2.   It was determined that in the analysis of Mark and Karlo of unprofitability of Pranav New York, the spa section had a big contribution. Discontinuing of the spa service was practical, because it would only incur further cost to the business. By this action, they could facilitate and concentrate in the salon wherein they were gaining money like in haircut, hot oil and hair color services. These services were acquired more by men rather than the spa. Probably, they could sell the equipment and unused materials of the spa to recover from losing money.

Friday, September 28, 2012

Marta Freitheim's Pranav case analysis


Pranav New York
Strategic or functional?
The main problem of Pranav is that they are not aggregating enough customers, not even to cover the minimum costs. Though an increasing number of males went to the salon for contemporary hair styling services the mall had mostly females. As well as the location inside the mall did not have enough foot traffic. The mall has more than 60% females and they spend more money in the salons. Targeting both genders is a strategic decision. The question about discontinuing the Spa is also a strategic decision as it affects the target market. I will discuss this further below.
This being said, I also think there are operational actions to be made. Like getting barber chairs in order to increase efficiency (research shows that the price leaders in Robinson`s are also the ones with the highest market shares). And changing the cost structure to a commission based salary in order to constrain fewer resources and motivate the staff to sell more of their products.

Split salon and spa?
Pranav NY is experiencing losses and is struggling to make ends meet. They are out of cash and in a hurry to gain profit for their graduation. The Spa is tying up a lot of capital and has the highest negative variance with 241 customers compared to the minimum monthly break even of 308. According to the research done post-opening, the Spa users are also the ones getting the classic cut. They do not see the need to spend additional money for the styling services. But spend money on basic grooming and wellness needs for men. So they do not leave much money in the salon and compromise a significantly smaller percentage of Pranav NY`s customers. Since they are lacking time and the Spa service is costing more than it is earning as well as there is a lack of critical mass, I would advise them to discontinue their Spa service and reduce their lease. This way they can focus on their salon services in order to post positive returns.

by Marta Fretheim



PDQ and micromarket observation by Group 1



Catherine Chua's reflection on Pranav case


Catherine Chua
Case: Pranav New York
The Pranav New York case is a strategic problem not a financial or marketing problem. Here are the following reason that support that it is a strategic problem.
  • ·      Pranav New York was in wrong location. At first Karlo and Mark's decision to establish their first male salon and spa in the Philippines were in Ortigas Center in San Juan and Makati Central Business District. But Ortigas Center and Makati Central Business District did not approve their new venture, only Robinson Galleria. When their mentor heard about the Robinson Galleria's approval and Karlo and Mark pursue their venture in Robinson Galleria, Karlo and Mark had a major wrong decision on locating their venture in Robinson Galleria. In their survey, Robinson Galleria is a female dominant customer.  
  • ·      Even Karlo and Mark decide to venture their first male salon and spa in Robinson Galleria, the location inside the mall which is in 3rd floor west wing is also wrong.  
  • ·      Aside from this, Pranav New York can change their target customers. They can provide a female salon and spa not just male salon and spa. Because female spend more in salon and spa than male customers.
  Pranav New York should split the salon and spa service if they really want to concentrate or their target market is male customer. They should venture more on salon than spa if they decide to split the two. But if they change their target market into unisex salon, they should not split the salon and spa.
The following are the reason why Pranav New York should split their salon and spa.
  • ·      Spa consumes more on rental space. Pranav New York lease a 153 square meter for both salon and spa, while their competitor Roberto Barber Shop occupied 75 square meters only. For me, Karlo and Mark's decision to put-up a salon and spa is wrong. At first they should put-up a salon only and if their business growth and improve that's the time to add more services.
  • ·      Spa service has a little percentage of Pranav's sales. Base on table 7 (service offerings availment distribution/ salon vs. spa package) there is only 4% to 7% from November to December that customers avail a spa service.
The following are the reasons why Pranav should not split their salon and spa if they venture on both female and male:
  • ·      Female segment spend more on hair services, such as hair color and hot oil. They are willing to pay more than male segment.
  • ·      Female segment consumes 9.83% on foot spa alone plus the 4% to 7% of spa service by male segment.

Tuesday, September 18, 2012

I met the BSP Loan Officer Last night

                                 

Last night, I discussed with the entrep class:  the value of money, money vs currency, money creation of central bank, and the QE activities of US Fed Bank under Ben Bernanke. Massive liquidity infusion:  printing of money, buying back securities/Treasuries injects liquidity to the system.  They may be harmful to the economy.  This causes inflation and currency devaluation.

The QE in the US has resulted in stock market rally;  but not in creation of businesses and jobs.

Last night also, in the wake of a classmate in college who succumbed to a stroke, I met a former colleague in the college paper who is now a Managing Director for Loan operations.  He says he reports to a Deputy Governor who we both know, comes from the same school and was involved in activism. 

Those who sympathized with the family were mostly lawyers and bankers.  Our classmate was a lawyer, and the wife is a senior officer of PDIC.  Bank CEOs I heard visited the wake.

                        

I met Mr. Chito Sobrepena President of Metrobank Foundation

 

I met Mr. Chito Sobrepena, the EVP of Metrobank  and President of Metrobank Foundation last night at the wake of my late classmate at AdeMU, Atty Cesar Singzon who succumbed to  CVA.

He was glad to hear that:  I am an entrep professor, did probono work for Go Negosyo. He said that Metrobank Foundation adopts communities and doing work with the community on:   livelihood, microfinance, and others.  I said would be glad to collaborate.  


Group creative activity - fishball Group 1



On the case analysis of Jose Lontoc

Here are my comments on Jose Lontoc case analysis:

l.  Lei Pichay and Daniel Berroya recited well on the case analysis last night;

2.  The case analysis should be like a thread on comments portion of website;  we pick up from the comments of others:   agree or disagree;

3.  Go direct to the facts;  the relevant facts

4.  Have a hypothesis and define the problem;

5.  Support your allegations with facts;   therefore read the case at least 5 times;  do no come unprepared for the case analysis;

6.   Be SMART;  be clear and specific on your statements as "the piggery is losing"  What of the piggery business is losing money?  Why are they losing money?  Be sure the case facts bear this out

7.  Do not go out of the case.  Avoid injecting facts/allegations in the case from the web, your or similar experiences.

8.  Remember relevance;  relations, conclusions, relevant facts.

Friday, September 14, 2012

PDQ Report on Barbecue Group 5



---------- Forwarded message ----------
From: leia pichay <leia_pich@yahoo.com>
Date: Tue, Sep 11, 2012 at 12:21 PM
Subject: PDQ Report on Barbecue Group 5



Good Day, Sir!

Here is the link of our PDQ Report on BBQ: http://www.slideshare.net/lrp315/pdq-report-group-5

Thank you.

Best Regards,
Lei
Anne
Ana
Jen
Hicham







Business Plan writing results; guidelines for the curren class


---------- Forwarded message ----------
From: Michael Ligayo <michael_ligayo@yahoo.com>


Michael Ligayo


From: Jorge Saguinsin <profjorge.entrep@gmail.com>
To: Michael Ligayo <michael_ligayo@yahoo.com>
Sent: Friday, September 14, 2012 12:49 PM
Subject: Business Plan writing results

Hi Mike:

I would like to update you on the results of business plan writing final requirements of the subject:

I should be able to submit grades tomorrow.  Those who got INC have one month to submit;  otherwise, the INC becomes F.

l.  Stats:

     Of the __ or so who enrolled;  __ did not continue, 19 submitted business plan;  __ did not meet deadlines for the business plan submission.

2.  There were only 4 who got respectable grades:   Trisha, you, John Ng and Ed Duenas.  For those who submitted drafts before the deadlines, they were awarded 5 points or 0.20 for the total grades0

3.  Comments:  I am writing this so that the class will be properly guided in writing their next major paper:   the strama.

 l.  Completeness:   Many suffered from completeness difficulties.  The requirement was that if you must submit a decent and complete business plan, it should be at least 40 pages.

2.  Minimum contents:

       l.  Business concept:  one to 60 words description of the business (N.B. not the product although in some cases the business = product) 5 pts.  The id exercise and menus should have thoroughly trained us on this and NU 12 too.

       2.  Business model canvass:  10 pts  Most lacked the financial:   revenue vs cost;  unit selling price vs cost

            MVP   -  must be compelling and differentiating;   only the main value proposition must be highlighted.  There are other value propositions;  but mention the main.

            The id exercise and the iron chef menu should have prepared well us for this;  and also Pranav and Jose Lontoc

     3.  Business objectives:  I gave  hand out and there is in the pages:   Teaching resources a long article on business objectives:  VMOKRAPI.  The other objectives were dismissed and lack figures for  the KRAPI

     4.  Sales projections:20 pts  should include MACRO:   PESTEL etc and the MICRO.  The very important things I am looking for in this chapters are:    Size of the market, your market share.  The observation, foot traffic (see {Pranav case again) should be a guide on how markets can deduced from observation   Our micromarket observations likewise should enable us to guessestimate how the sales should like in the next 3 years or so.

The sales projection should be the basis of the FS projections.

Many lacked the numbers for sales projection and fs was divorced from this chapter, and the proving of the sales projection is thus week and disconnected.

     5.  Product:   some papers do no have product chapter:   Minimum content: (10 pts)

        l.  Product description/concept/logic, what problems does the product serve?  Is in an answer to what pissed off people?

       2. PTM (demographics/psychographics)

        3.  COGS/BOM

        4.  How it is made;

       5.  Competitive analysis on 4Ps or other criteria

       6.  Alpha and beta testing.

5,  Enterprise delivery system:     SPATRES  20 pts

A very detailed strategy on how the the objectives (stipulated at number 3,3 ) are to be met:   Sales objectives, financials, customer impact, job generation are to be met.

TO BE DISCUSSED IN GREAT DETAILS ARE:

       1.  INPUTS (the 4ms)

       2.  THROUGHPUTS (PROCESSES, CONTROLS, JOB DESCRIPTIONS, QUALITY INITIATIVES, COUNTERMEASURES) . tHEY SHOULD COVER THE  FUNCTIONAL AREAS:    FINANCE, HR, OPERATIONS,

      3.  OUTPUTS:  PRODUCT  (PRICE, DELIVERY QUALITY)

     4.   MATCHING (MARKETING)

     5.  OUTCOMES (the business objectives)  

The case for this is MICO.  The creative activity for this is PDQ.

6.  FS there must be 3 FS:

     l.  Balance sheet

     2.  PNL

     3.  Cash flow

In previous classes, I  gave f to papers without FS.  I gave consideration today not to fail students without FS.  I gave a spreadsheet for FS and should have been studied by groups.

7. Exit:   how do you exit:  sell, go on IPO, or close the business.  Some did not discuss this at depth.) succession

8.  Compliance with regulations:    local, national international  rules:  waste disposal, health and environmental issues.

       7 and 8 are worth 5 pts.

This is a lowdown on my teaching career. It meant that the students did not understand the lessons/course or that the ampitheater was not conducive to learning.  We had groups so that they could help one another create the business plan.

Is it possible too that they did not read or were no very much engaged?

Sincerely                                                                                                      













Wednesday, September 12, 2012

Business Plan Concepts by J.Labarrete & M. Freitheim

By Jane Labarrete

I. Topic. Online Clothing Line: Sophisticada

"Who says being sophisticated is expensive?"

 Since, E-Marketing is the next big thing to reach your target market; the idea is to put up an online clothing shop that features latest trends in clothes, shoes and accessories primarily sourced from Thailand, Hong Kong and China which are relatively affordable and sophisticated in taste. Other than that, my differentiating element would be they can have the change to customize it for elaborate beads to make it look unique, in shoes or in clothes, accessories. I plan to tie it up with jobless women in Happy Land Tondo or Women from Prison to personalize the products which would take 3-5 days to be delivered if personalized.

The reason why I wouldn't put up a store yet or situate it near Greenhills I believe that an online component would be enough to sustain enough traffic for customers. Since I'm too customization of clothes I would like to tag the company to tie up with other clothing company for bulk bead projects in clothes that are usually outsourced. The reason why I'd like to open this up to do bead projects for my indirect competitors, I believe mass produce products are not the market that I cater. I'd like to be there third party partner to attain my vision to help a give hope to jobless women in Tondo and prison.
 

By Marta Freitheim – "Charlie does"

2.1 Introduction:

Baler is the capitol of the Province Aurora with its location on the east coast of Luzon. This is the place where surfing was first discovered in the Philippines and is renowned for its world-class breaks. The surfing part from the film "apocalypse now" was in fact filmed in Baler, at Charlie's point. When the film crew left they also left behind some surfboards for the locals to play with and this was how it all started. Now there are hundreds of surfers in Baler and thousands of surfing visitors every year. Charlie does has its name from one of the most popular breaks, Charlie's point. At the moment the shop is only a small surf shack on the beach

2.2 Baler attractions

2.2.1 SURFING IN BALER:
The community here is small still surfing is by far the most popular sport. Baler has surf all year around though the peak season is from September/October to February. There are many surf spots surrounding Baler, the only limitation is your accessibility. Though one does not need to look far for world-class waves, hiring a banka would and hunting the waves would also be a nice experience and no crowd in the water.  
  
2.2.2 Tourism in baler:
 


Baler has more to offer than surfing, the province of aurora is given an abundance of attractions. It has historical sights such as catholic churches and home of former president Quezon. The nature is absolutely stunning, with the green volcanic mountains, picturesque waterfalls, and panoramic beaches. This year Baler is expecting 400 000 visitors. Investors have acknowledged the need for further development in order to meet the new demand and accommodate the travellers/tourists.

2.3 Arising challenges
2.3.1 Competition and innovation

There are already many surf schools on the beach some also selling used boards. Though they are only small shacks and can not handle big groups. The shacks are only 5-8 square meters and have limited offers. There are no advertisements for the surf schools and they have limited resources. There is no real surf shop in the town with several boards and surf apparel, just maybe a board or two for sale in the different surf shacks. 

As Baler is in heavy development and potentials are really good. There is a good chance of other surf shops arising. The surf shop will be connected to four of the local hotels/resort and they will be promoting to the guests staying there.

2.3.2 Off-season challenges
Like indicated the peak season for surfing is from October to February and for tourism it is from November to March. From April through September the town is rather quiet, leaving us with a challenge; how to aggregate income?  As the weather is nice until June there should still be possible to attract tourists when offering an irresistible Product/tour. Even during the rainy months from July – October the weather is normally better than in Manila and the west coast. 

2.4 Business concept innovation:
Charlie does is a start-up branch of an already existing surf school in Baler, Aurora. Charlie does was based upon the famous surfing spot Charlie's point and will promote their self produced surf wear clothing line, surfboards, surf school and activity operator. It will be the only surf shop in Baler and the biggest surf school and activity operator. Charlie does will also be the exclusive tour/surf operator to some of the most picturesque beaches in the area. With top knowledge from the local surf team the services offered will have surf instruction and tours will have high quality spots, instructions and service to a reasonable price. Having a great deal of contacts in the area Charlie does will gain the competitive advantage being able to access private beaches and customers staying at many of the local hotels. Charlie does will provide the

Charlie does will me managed by two executives in the Philippines, with support from the local surfers in baler, a design team in UK and local hotels/resorts. This combination will bring the company a wide range of experience within surfing, design, manufacturing, marketing, public relations and sales. They have acknowledged an opportunity to gain considerable markets shares and competitive advantages to possible emerging shops by focusing on the specific needs of surfers and by providing greater service and support to their customers than their competitors. The company will be organized as a closely held corporation with the shares being divided by two principle executives.

Goals---

Vision:
To be the company that best understands and satisfies the products and service needs of surfers in the Philippines.

Mission:

Charlie Does is focused on fulfilling the local need of surfers in Baler. The market has been identified by the significant increase of surfers and tourism in the area as well as the Philippines the last 15 years.    

Charlie does will be able to adopt their product line to the locals in Baler, it will be inspired by recreational activities including sports, leisure and casual lifestyles.

-          Focus the product line to be a top seller in baler and eventually in the Philippines. Would be preferred to international companies such as Billabong, quicksilver, reef etc.

-          Focus on the surfing industry experience to identify products that attract consumers to specialty stores. 

Key success factors:

1.      Seek out feedback from our customers (Kids, teens and young adults) to develop a successful clothing line that meets their needs and tastes.

2.      Develop a niche market for our unique apparel

3.      Maintain low overhead costs by monitoring and scheduling production

4.      Implement a successful marketing campaign to inform the existing clientele and the public of our new image

5.      Build brand image and brand equity through marketing

3. Products:

3.1: Surf shop:
The first real surf shop in Baler. Will be a modern up to date surf shop providing high quality clothing and the first surfboards made in the Philippines.

3.2 Surf school
With local and trained instructors performing high service instructions and guided surf tours. Charlie does will be a professional yet personal surf school. Security comes first and customers will feel well taken care off. The school will also be the only one in Baler able to handle bigger groups, enabling for instance teambuilding or similar. The location of the shop will be at the beginning of the beach road. All the travelers going to Baler and staying at the beach would have to pass by the shop and therefor get acquainted with it.

3.3 Tours and activities
Charlie does is a surf based company, however when the sea is flat there will be a demand for other activities for both surfers and non-surfers. Some come for fun and some comes just to hunt the waves, that's why it is important to have a backup if it is not possible to surf.

- Nature adventures: Baler has stunning nature, with its beautiful mountains, pristine beaches and majestic waterfalls there's is plenty to see. Charlie does even has the exclusive access to some of the most beautiful white-sanded beaches.

- SUP – Stand Up Paddle: is getting more and more popular, this is an activity for everyone whether you are 50 or 12 years old, you can even go to people on one SUP. And is a great activity when the sea is almost flat, one can paddle out to the islands by cement have swim and maybe even a snorkel, play around in some miniature waves (the stand up paddle gets you going even when its too small for normal surfboards).

- Yoga: At the top of the floor there will be yoga lessons. Surfers are normally very conscious about their health as well as their flexibility and Yoga is the perfect activity.
-Local market:  for foreigners the local market can also be of interest.

3.4 Combined tour packages
This product is full tour package including the trip from manila, accommodation, surf instruction or guiding and food if wanted. This product is customized for the cash rich customer, representing approximately 30% of the surf tourism. Charlie does will organize and book the bus ticket, pickup at bus station, accommodation and surfing. The surfers can relax and does not have to worry about their planning and transportation, everything is set. Public transportation in the Philippines is not so easy to get, few operators have online schedules (and they might be out dated), and this especially goes for foreigners. 

Other ideas for products are under development.

Group 5 PDQ report at Slideshare

Group 5 PDQ report on bar B Q


Monday, September 3, 2012

Ms Elma Arboleras, TOSP 1989, British Invention Awardee Visits Class

Our class in entrepreneurship was honored today with the visit by Ms. Elma Arboleras, 1989 Ten Oustanding Student of the Philippines, MBA AGSB, and British Invention Society Gold Medalist -  A Phil. pride.

She distributed brochures and motivated the class to join the PLDT, Go Negosyo, TOSP joint project  "PAGSULONG" - a poverty alleviation (social entrep project)  Total prizes amount to one million pesos:    PHP 500,000 to first prize,  300,000 to second prize, and 200,000 to third prize.  The deadline for the submission is on August 31, 2012 but will be extended to September 15, 2012.  Forms can be downloaded from www.projectpagsulong.ph.  I suppose additional information can be obtained there too.