Challenges to the Entrepreneurship Elective Course

Angesono Rizal Philippines   |  Black Saturday

I took the chance of grading and correcting the papers of an entrep course this office handled early December to February.  There are  only a few of them and I am sure the school lost on the class because their number did not reach the break even.

The class was a great class they were lively and very dynamic and mostly middle to senior execs in their organization.  May be the rigors of teaching ie the assessment and grading makes the idea of teaching challenging.  If we could only be like Plato or Aristotle or the Chinese master whose only test is life/or a boxing match itself.... And if only students would not be grade conscious.  (It reminds me of a conversation from an MBA student I conversed in the elevator, who said she would enroll in entrep if it were an easy 4...)

 The comments I earlier made on BP early on may not have reached them

Comments on earlier business plans submitted

From Smartblog - Why some BP do not succeed

Pampering the poor can make them dependent - From a social entrepreneur

Rizal  Philippines   April 19, 2014

Today is Black Saturday.  The Lord is not with us today. Time to reflect.

Sometime early this week, Fr. Javy Alpasa spoke on TV about "pampering the poor" can make them dependent.

The social entrepreneurs from the Ashoka Foundation, advocate not only teaching those who have less in  life how to fish but even going one step further:  revolutionizing, innovating the fishing industry.  Giving him fish, gives him only a meal.  Teaching him how to fish gives him a lifetime.

Giving, pampering the poor is the way of the politicians.  It strengthens the politics of patronage and feudalism where the farmers/poor depend on the landlords.  Thus it is to the best interest of the landlords the powerful and rich to keep the masses poorer and ignorant.

A One-Page Business Plan in 5 Steps; start writing your vision and mission statement

 Entrepreneur.com

For rapid prototyping and business acceleration, you need rapid planning.  And really tycoons plan their businesses at the back of the envelope (at least the business model)  Why cant you.

But you really need a full blown business plan to flesh out details (especially the marketing and the operational processes. You cant afford not to have one.

This is very similar to the advice of Brian Tracy on how to be productive:  He said know your goal, write it down, write down your action plan.

This entrepreneur guide tells:

1.  Start with a vision

2.  Write your vision statement

Case analysis on 3 Entrep Clans of Asia by Grace Agustin MM at Spentrep class

---------- Forwarded message ----------
From: Gracey <la_mgya@yahoo.com>
Date: Tue, Apr 15, 2014 at 1:31 AM
Subject: case analysis on entrep clans, Grace Agustin
To: Jorge Saguinsin <profjorge.entrep@gmail.com>

Case Analysis On:

THREE   ENTREPRENEURIAL   CLANS   IN   ASIA

S&P

Case Facts:

Ø  Started as a small ice cream parlor in Bangkok.

Ø  Served a limited menu of ice cream, sandwiches and light snacks.

Ø  Hired a pizza chef that later turned out to be a baker, introduced the bakery products.

Ø  S&P's restaurant and bakery chain spread all over Thailand, known for its premium services, clean premises, tasteful décor and delicious food with a long offering of Thai, Japanese and Western fare.

Ø  In 1996, it had 40 full service branches, 50 smaller bakery shops, 6 fine dining restaurants, and expanded in Bangkok, London, Singapore and Taiwan.

Ø  S&P hired professional middle managers and developed risen-from-the-ranks and middle line managers, but top management was "all in the family".

Analysis:

                The S&P owners seem to have a focused in adding business units and expanding their business coverage.  Basically their line of business revolved with the restaurant and bakery.  They were able to identify their primary target market which is the middle and upper middle income classes.  The S&P is fully integrated, from the product lines of the restaurants, food processing, and central kitchen operations to distribution and franchising.  They expand in a more concentrated manner, focusing on their core restaurant and bakery operations. Since it's concentrated and more focused, it's hard to eliminate business units.  What they did was rationalized the organization to ensure effectiveness, efficiency, and economical running of the business. 

                One major problem that I can see is the lack of interest of at least one of the three sons in the S&P business.  Each of the three sons pursue a career different or outside their parent's business. With this known fact, the founders should be eyeing, training, and molding  successor/s to continue the business if the sons will not join the company later on.  The Raivas (owner of the S&P) will not forever be there to manage the company, so they should be training partners and disciples (per my report on Business and the Bible) that share same vision and passion with them to takeover on the company when the time comes.

Tunku Abdullah and His Royal Brood

Case Facts:

Ø  In 1963, Tunku (Prince) Abdullah established the Binaan Nasional Sdn. Bhd (BINA), one of Malaysia's leading Construction Company at that time.

Ø  Set-up a company engaged in blending and bottling beverages for the lower end market.

Ø  Abdullah got involved in the selling of defense equipment.

Ø  In 1970, invested in the travel industry.  Organized a tour and travel agency.

Ø  Established the Melewar Corporation, a family holding company to unify, enhance, and strengthen the many and varied virtues of the different business groups and companies within the  Melewar Corporation.

Ø  Created a general trading company involved in selling of arms, computers and other products.

Ø  In 1974, entered the leasing and insurance industry.

Ø  In 1975, entered the transport business, the company had a fleet of trucks and low-loader equipment for oil and other general cargo.

Ø  In 1976, formed a partnership to venture into the advertising, marketing, and communication business.

Ø  In 1981, formed the investment holding company.

Ø  In 1982, entered the computers industry, then in 1985, decided to put up its own manufacturing company of personal computers.

Ø  In the 80's, ventured into Communications industry and involved in the growing and marketing of fruits and vegetables for the local market as well as for export.

Ø  In 1987, established a school specializing in management education.

Ø  In the same year, put up a company that manufactured and marketed wooden household wares, knock-down furniture, gifts and toys.

Ø  Also in 1987, involved in the quarrying, processing and marketing of granite.

Ø  In 1993, got a licensed in television broadcasting company.

Ø  Tunku Abdullah dreamed of linkaging yacht clubs that would set as naval modes of a seafaring route from Indochina to Indonesia.

Analysis:

                Tunku Abdullah's group of company adds businesses using a shotgun approach, whereby opportunities were seized as they came.  Some started as business propositions from foreign firms, while others were home-grown ideas coming from members of the family and from their corporate executives.  The Melewar entered into diversified into different industries but when the various enterprises were lumped into industry groupings under separate siblings, each of the groupings expanded their respective group through acquisitions and natural growth.  Because of Abdullah's aggressiveness in entering one business to another, it resulted to some failed projects that forced in selling and closing down some of his enterprises.  He succeeded in the construction and the service industries where his organizational and deal-making capabilities as a mobilizer and politician became very useful.  He excelled in putting people together and motivating them to sell and supervise projects without the need for high technology. 

Three Generations of Entrepreneurs: From Ibu Mutiara to her Grandchildren

Case Facts:

Ø  Ibu Mutiara Djokosoetono established Blue Bird in 1972, with an initial fleet of 25 taxis.  Renting out her cars in Jakarta's hotels.

Ø  Blue Bird expanded its taxi operation to 4,000 units, added an executive cars and chauffeur-driven luxury sedans.

Ø  Invested I Big Bird, a wide range of service buses for tour groups, office workers and prime movers.

Ø  Organized a bus manufacturing company and fire truck assembly plant.

Ø  Produced efficient, clean-burning CNG (natural gas fuel) to service its cars, trucks and buses.

Ø  Opened a network of petroleum and CNG pumping stations.

Ø  Blue Bird invested in Holiday Inn Resort Lombok, a prime tourist destination.

Ø  Ventured in cargo forwarding, warehousing, container depot, repair and service center.

Ø  Manufactured clutch and brake assemblies and spare parts of her transport business.

Ø  Envisioned of entering the airplane/airlines industry.

Analysis:

                Blue Bird claimed that its focus is on taxi business, it actually has gone into all sorts of land transport businesses ranging from taxis, buses to trucks.  It has also added resorts as its passenger destinations. It also added spare parts to supply for their transport needs.  Blue Bird strategy is finding the common denominator…transport and whatever gets attached to it, increasing their supply chain in the process. 

CASE's TAKEAWAY

                Do not venture in a business that goes beyond the competency, strength and leadership of its leaders/founders/owners.  In seeking new opportunities for the business, make sure that the partners can handle it properly.  Contingency plan (exit plan) is very important in putting up a business, learn when to cut losses to be able for other business units to survive and energize.  Owners and founders will not be forever in the business handle and take control of; it's wise to train successors that share same vision of that of the founder.  Lastly for the business to be sustainable,  next-in-line generation should be well equipped in handling the business, proper education and professional independence is very important for the company to be sustainable amidst new ideas and technology of the future.

--

PRANAV Case Analysis

Hi Sir,

respectfully passing my PRANAV. Thank you.

Case Analysis: Pranav New York

Submitted by: Eduardo Y.Tuazon

SITUATION: Students Karlo and Mark of the Asian Institute of Management had an assignment in Development of Enterprise and their project was a male spa. The concept was introduced to Karlo by a friend who experienced several male spas in New York. They opened the shop on the third floor of the Robinsons Galleria Mall.

PROBLEM: In the few month operations of the male spa, the main problem was financial. Losses incurred amounted to P825,568.00. Analyzing the source of the problem systematically through SWOT ANALYSIS: 1. Strengths: a. the original idea of the business that is to be introduced to the Philippine market, b. the owners also had some capital to start the business and c. they also had good professors who can advise them with their project. 2. Weakness: The core competency of the owners was weak for they are not experts in their chosen  business, hence this weakness translated to many wrong decisions or mistakes like the shop's location, choice of shop's layout and  furniture,  specifically the barber's chair that are not the standard of the industry. In addition, they probably focused on the "macho psychographic target customer idea" by employing female barbers which are not the norm for male haircut and shave services. The misalignment of this strategy translated probably to the awkwardness of services towards the customers. The location or place of the male spa was not strategic; it was located on the third floor of the mall, where foot traffic was poor with regards to their target male customers. 3. Opportunity: The new idea of a male spa was exciting and an innovative business concept and doable. The ever increasing population of males who are conscious of their grooming, the business looked attractive. 4. Threats or competitors who also offered some of their services were more strategically positioned in their chosen place of business.

ALTERNATIVES: The owners are new players in the business hence they must increase their marketing efforts to penetrate the market as their strategy.

1. Product/Service: The main service of the business must be improved by having experts in the field of grooming. The existing staff must be retrained, or hire more male barbers and lay-off some female barbers and possibly retrain them for the spa services. Their competitors have experts and stylist who were trained abroad, hence they were more patronized.
2. Price must be competitive to add more value for money. They must be aware of price-     sensitive customers.
3. People or their employees must be in sync with the company's mission vision. The service staff must be knowledgeable of the ins and outs of their grooming business.
4. Place and physical evidence must be improved in terms of lay-out and the internal temperature of the spa area must be pleasant to customers who are almost naked when undergoing the therapy. The barber's chairs must be changed to the standard ones, though pricey.
5. Processes concerning proper use of the spa and barber's supply will decrease wastage and also incentives must be given to the staff to make them more proactive. These measures will translate to decrease in expenses and increase in revenues.
6. Promotion and advertising must be enhanced and with a good location, store layout and excellent services will bring in more sales.
   They can also take into consideration Michael Porter's Five Generic Strategies:
   TYPE 1:  Low Cost Strategy. Are the owners ready to offer low cost for their main service, the haircut and shave?
   TYPE 2: Best-value strategy where they must offer a wide range of services to a wide range of customers at the best price-value available on the market.
   TYPE 3: Differentiation aimed at producing services considered unique industry wide and directed at consumers who are relatively price-insensitive. Special spa treatments can be offered to their high end customers.
   TYPE 4: Low-cost focus strategy that offers products or services to a small range (niche group) of customers at the lowest price available on the market.
   TYPE 5: Best value focus strategy (focused differentiation) that offers products or services to a small range of customers at the best price-value available on the market. For their case, these are the salaried workers ages 30's and above who are willing to avail more specialized and stylized spa treatments.
                       
   DECISION:  The owners must do a strategy for their business. An application of a quantitative process like decision trees must be employed to make an intelligent solution to their problem. Some of the possibilities are:
   1. Whether to transfer their business to a new location or not.
   2. Whether to cater to women and children.
   3. Whether to offer volume and value driven packages or services to increase sales and improve margins.
   ACTION: The owners must also benchmark to improve their business but in the end the owners have two actions to contemplate; 1. To continue the business and infuse more capital into it like inviting new investors (which would be a big challenge for the owners and investors) or taking up a loan, or source out money from their "deep pockets". Should they continue, proper strategies are a must. The option to close the shop is not distant and they can simply charge it to experience and as an "expensive tuition fee in the business school of life".
   CONCLUSION: A conclusion of the case reveals that from the start, the business idea was flawed because the idea and experiences of the male spa business was not from one of the owners; hence the execution of the business plan was incomparable to the New York male spa business models.   The owners also did not heed their mentor's advice about the location of their business. The owner's weak core competency led to the series of unsatisfactory business operations and activities and decisions that fuelled the vicious cycle of financial loss.
   Bibliography:
   David, Fred. Strategic Management: CONCEPTS AND CASES 13^th Edition. Philippines, Pearson Education South Asia Pte. Ltd., 2012.
   www.yomarketin.blogspot.com/2012/12/service-marketing-7ps.html. Yo Cool Marketing, December 5, 2012

Doc Edu

Special Report by Dr. Edu Tuazon AGSB Clark Entrep - Idea Spotting

Hi Sir,

Respectfully forwarding you the link from slide share my book review "Idea Spotting" by Sam Harrison.

http://www.slideshare.net/koji_tako/idea-spotting-by

Thank you.

Doc Edu

Hi Dr Edu:

This should be a guide for students who are finding difficulty in finding new ideas.  For businessman, it will help them spot opportunity

Idea spotting by Sam Harrison (Book Review) from koji_tako

Can you describe Strategic Thinking in one sentence?

As an entrep student, and one who knows the strategic thinking process, can you answer this one:  
Subject: Can you describe Strategic Thinking in one sentence?

It should be easy;   it is choice of resources and activities (processes) to reach an objective (strategic)  That is it. Nothing more nothing less

ENTREP Francis Butiong Relfection Paper "Empowering Juan"

Sir,

Resending my reaction paper for "Empowering Juan." Just in case you weren't able to open the Word file I sent earlier.

Thanks,

Francis Butiong

Francis Matt Antonio Butiong

Entrep

Prof. Jorge

Reflection Paper

The forum "Empowering Juan" was very informative and eye opening. We had great speakers that contributed to the knowledge shared during the forum. The secretary of DOE, Carlos Jericho L. Petilla, shared a lot of his knowledge. He talked about the power consumption in the Philippines. He also talked about the nuclear plant that we have in Bataan. Most of us think that if we use that power plant, we would pay less than what we pay for electricity. But he clearly discussed how money is not the issue anymore when it comes to switching to nuclear energy. He also emphasized on how the change in the bill won't be significant enough to consider switching to nuclear energy. And that ethics will play a huge part if ever. All of the speakers shared information regarding the energy sector of the Philippines. I only hope that soon, we'll find a better way of getting power and totally abandoning the fuels that are bad for the environment.

The forum was a success. They managed to get a lot of sponsors and giveaways. I like how they made the students stay by making us wait for the much anticipated final prize which was a macbook air. <Be more do more>

Case Analysis for 3 Entrep Clans by Rocky Gabatin Spentrep

Rocky Gabatin
SPENTREP – S09

Case analysis: Three Entrepreneurial Clans in Asia

THE ADDITION PROCESS

Raiva Siblings and Spouses

     Adding significant complementary businesses to the core business entails maximization or monopolization of the supply chain. Using the by-product (egg yolk) of the bakery business, for example, Raiva siblings and spouses were able to come up with another product line for their business as they are able to produce Thai desserts. What seemingly is a “waste” of another business function becomes a profitable venture for the company. Furthermore, the group was also able to implement forward integration by distributing finished goods as well as raw materials to other businesses. This approach enabled the Raivas to expand and grow very rapidly because they are able to exercise more control over the supply and value chain. They have better command of the prices because the raw materials are also within their control. As a result, this allows the company to be more cost-effective by eliminating excessive markups generated by resellers or suppliers. Eliminating the “middle-man” entails huge cost savings. More importantly, the company is able to generate profits from each point in the supply chain—upstream, core business, and downstream. The Raivas, in effect, expand its core competency.

Melawar Group

     Melawar Group’s strategy revolves around acquiring as many businesses as possible. It adds businesses regardless of the industry—making the group as diverse as possible. Diversity is an important component in risk management, so the more companies it acquires and the broader the range of industries, Melawar Group effectively reduces risks from unexpected events, economic downturns, and even the losses from bankruptcies. Adding different companies from different industries to the mix also allows Melawar Group to flex its muscle in terms of sheer size. Economies of scale reduces the cost of production by adopting a larger scale of production. Melawar Group now has the capability to develop the added companies in order to maximize their profitability.

Blue Bird

     Blue Bird implements both the supply chain integration of the Raivas and the establishment of a business different from the core business. The Holiday Inn nicely complements the taxi business of Blue Bird because it ensures a steady stream of customers. That is, taxis can drive people to the hotel, for example, from an airport. Meanwhile, adding brake and clutch assembly manufacturing to the business allows Blue Bird to reap the benefits of cost-effectiveness because it takes care of the maintenance of the taxis.

THE MULTIPLICATION PROCESS

Raiva Siblings and Spouses

     Since the Raivas were able to vertically integrate their supply chain, they have the capabilities to multiply their numbers in terms of branches and bakery shops. This entails broader geographical reach, and thus would improve overall profitability of the business by establishing its presence on a much wider scale. This multiplication process can result to penetrating new markets and even acquiring customers from competitors.

Melawar Group

     Melawar Group’s multiplication process came into play when it clustered similar industries into groups. This way, each industry can grow substantially through economies of scale, but more importantly, through synergy. The businesses can enjoy natural growth by combining best practices of each “company.” It is also effective in acquiring a larger market share because the customers of the each company are consolidated under Melawar Group.

Blue Bird

     There is one key element for Blue Bird in implementing the multiplication process—achieve economies of scale. Multiplying the number of taxis would ensure that the business will generate more income, and thus, allow them to purchase more vehicles. More importantly, this has a dramatic effect on the bargaining power of Blue Bird because it can negotiate for lower prices for raw materials, and this is particularly beneficial for the clutch and brake assembly line of the business: It can further reduce cost on maintenance of the vehicles and maximize both profit and market share.

THE SUBTRACTION PROCESS

Raiva Siblings and Spouses

     Holding back on the idea of franchising the business maintains the quality of operations. This means that the Raivas remains in control of the entire business. Furthermore, rather than adding potential outside ownerships through public offerings, the S&P Group effectively avoids “contamination” of the business when “new blood” comes into the mix. The sheer success of its addition and multiplication strategies, there is no pressure on the business to remove anything.

Melawar Group

     The aggressiveness of the Melawar Group in acquiring companies will eventually result to failed businesses. These failed projects had to be subtracted from the entire conglomerate. However, subtraction does not necessarily mean a disadvantage because selling the business can also yield profits, just as when Melawar sold the TV broadcasting company.

Blue Bird

     Similar to Melawar, the subtraction process made by Blue Bird entails removing businesses that do not complement its core competency. The agribusiness venture did not last long because it does not seem to be relevant to the taxi business of the family. Divesting this venture is important in mitigating losses for the entire business before it can damage it further.

THE DIVISION PROCESS

     This process is virtually the same for the three family conglomerates. The theme revolves around prevention of conflict among the family members in the future.

Raiva Siblings and Spouses

     It becomes an important element in business to place executives or managers where they can exercise their core strengths or capabilities. It can be in a form of a skill, a geographical location, or even a specific product line. The Raivas implemented this very well, so there is very little room for organizational conflict among the family members—because they are where they belong.

Melawar Group

     In this case, the division approach is necessary for the Melawar Group to be able to multiply. It divided the entire company into industry groupings, a move which also complements the fact that the members of the family are coming from different marriages. This division also acts as a precaution if any family dispute arise in the future: The company can be split simply among the siblings.  

Blue Bird

     Ibu Mutiara is working towards being able to provide her children and grandchildren with a “fair piece of the pie.” This ensures that there will be no conflict that will arise from each member of the family.   3

Pranav New York Case Analysis by: Rophele Ocampo

Prof Jorge,

Please see my assigment on the Pranav New York case analysis SPADA.

SPADA Case Analysis: Pranav New York

Situation:

Karlo Nisce and Mark Orbos, MBA students at AIM opened a first male spa business (inspired in New York) in the Philippines last quarter of 2004 at Robinsons Galleria as part of their course requirement for graduation.

Problem:

The business incurred immense losses after its 3 months of operations due to the following:

A. Wrong Location

·         The spa's stall is located in the body senses section at the 3^rd floor where mostly females' market concept stores are open and is not an easy access.

·         The body senses section is located at the opposite of the foot traffic.

·         The mall's demographic mix is dominated by the female segment.

B. Poor Quality of Service

·         Employees are all females where needs of men are not properly delivered such as shaving and strength/pressure for massage.  

·         Chairs used are not barber's chairs which the effect is that simultaneous service process is suffered.

·         Spacing of chairs is too narrow and not conducive for working.

·         Air conditioning of the spa is too cold which customers might not like the experience of shivering while having a massage.

C. Poor Marketing

·         Due to net loss, marketing was taken for granted and was removed from their solutions since it they have considered it as an additional expense.

D. Business was not systematically studied

·         The partners rushed in opening the business due to their considerations of rent expense, season's demand, excitement of their venture concept, and requirement for their graduation without carefully studying it.

Alternatives:

A.  Close the Shop

·         Since the business is not profitable and to further not incur additional losses and waste money.

B.  Re-locate

·         Since the location is a mistake, better find another location to which the business is more suitable. Location preferably on the Fort area or Makati CBD area since these area is also a good marketplace. Place should be of easy access preferably not a stall in the mall but in a standalone commercial establishment which is dominated by their primary target market.

C. Re-position

·         Remove the spa services since this is the service that occupies a lot of space and has the lowest revenue and focus on the strength of the business which is their salon services.

D. Improve Quality of Service/Re-branding

·         Undergo employees with an intensive training to produce quality service. With quality service brings word of mouth advertising which is the most powerful promotional marketing.

·         Consider male crew to create additional market and address other needs of the customers which also understands the male segment needs.

·         If to maintain the all female crew strategy, make sure to train and delight the service that the men segment needs.

·         Chairs to be changed to the appropriate barber's chair.

·         Temperature of the spa room should be suitable for massage.

·         Interior of the spa and spacing should be conducive to working and favourable for their primary target market.

E. Re-positioning

·         Changing the concept from an all male spa to a unisex spa to widen the market and generate more income. Revenues over anything else.

F. Marketing

·         Strengthen the Marketing of the business, Pranav has remove its marketing since the business

Decision:

With the alternatives mentioned, alternative B and D will be the most recommended in my opinion. Maintaining the concept of an all male spa is a very appropriate move since this concept creates originality and uniqueness. This is actually one of the strengths of the business but the wrong location and quality of service is the reason why the outcome of revenues is not what is expected.

A good Location is a very important consideration when opening a business because it is where the need and demand is being conceptualized. Improving the quality of service on the other hand also plays an important role in generating customers, maintaining their loyalty and loyal customers to help you market new customers.

Action:

The business is really feasible. As indicated in the study and as mentioned by the professors at AIM, the concept is actually a good business venture.  Applying the recommended alternative decisions with an excellent marketing strategy will help the business eradicate its losses and incur profit; the business will eventually have its place in the market. Marketing has always been an essential tool in having the business become profitable.  As Marketing major, you see to it that in every business you always analyse the SWOT (Strength, Weakness, Opportunities, Threat) of the company, turn the Weakness and Threat to Strength and Opportunities.

Submitted By:

Rophele Louie C. Ocampo

AGSB – Clark Campus

Pranav case analysis by Roman Cruz AGSB Clark Entrep

Good evening Sir!

Sending you my case analysis on the PRANAV CASE

ROMS

PRANAV CASE STUDY

by: Roman M. Cruz

SITUATION

Pranav New York was envisioned as the first male spa in the Philippines and the fulfillment of the need of the Filipino market for an integrated grooming and wellness services for men. It is situated at the third level, west wing of Robinsons Galleria. Something that is uniquely different from its direct competitor, Roberto’s barbershop who is located at the ground floor of the mall.

The business was a product of Mark Orbos and Karlo Nisce inspiration of their own experiences as patrons of barber shops, salons and spas, to which they are convinced that there should be one stop shop that will cater all these needs of the male population for grooming and wellness services. In starting the business concept, they had made their homework in conducting different market study to test the potentiality and success rate of their new venture. However, some data gathered were left unstudied and or unfinished, even their professor has noted disparaging comments on  their ventured idea. In effect, after the third month of operation, the business is losing money.

PROBLEMS AND ANALYSIS

Identifying these data that were left unstudied by the two budding entrepreneurs are the following:

1.     Demographics- though their conviction ofestablishing the first all male one stop shop that provides grooming services and wellness to the male populace is good, it has been noted that for theirselected location, the Robinsons Galleria, the foot traffic are skewed towards female segment which comprised about 60% of the mall goers. More so, this was further highlighted when they had found out thru the gender composition andmarket share, there was a dominant incidence of the female market in Robinson’s unisex salon, while only an average of 13.28 % of females was observed at Pranav. This should had been greatly considered during the initial stages of the business concept to which the wrong market reading as created a spiral effect on the output and structure of the business. In essence, there is lack of critical mass ( male segments ) that will be crucial in sustaining the business in which taking into consideration their Mission and Vision which is concentrated as the first all male one stop shop in the Philippines.

2.     Location- the selection of the location of Pranav was a result of eagerness and without proper planning and study. Initially, Robinsons Galleria itself has a great potential in terms of having a big chunk on the catchment rate considering its high foot traffic characteristic. But locating Pranav at the 3^rd level of the west wing of the mall is totally slashing its business potential because from the study itself by the leasing department, most male traffic are coming in from the east wing and on the center floor of the mall. Infact, its main competitor, Roberto’s barbershop is located at the ground level. Male segments will not exert a lot of effort on going in the third level only for Pranav especially if they are with their female partners, wives or girlfriends.

3.     Price sensitivity- basing on the results of their further study, it has been revealed the leaders in the industry are those with a fairly affordable and competitive pricing. On the other hand, those high-end position brands are lagging behind. Pranav pricing is categorized in this set of high-end positioned brand.

4.     Dominance of the female segment and higher spending level- on their study, female spent on the average, 91% more than the males. Thus females were certainly a market that was too profitable to exclude and overlook in the micro market of Robinson’s Galleria. Consequently, these female markets are often seen on unisex salons.

5.     Structure and processes failure- as noted by their professors, there are all female crew that were to attend and appeal to the “macho” psychographic target customer of Pranav. Training was also an issue. Example of which is that the owners had failed to realize that these all female crew were not taught on shaving men. The choice of chairs were confined on immovable black lounge chairs rather than a barber’s chair which limits the potentiality to offer other services to its clients because, customers would always feel uncomfortable on hopping in to different chairs/area while availing of the services. The spaces between chairs are too narrow. The Spa was too cold. Air conditioning units could not be adjusted to a higher temperature. The office space block some of the frontal window which can contribute a negatively in the store visibility.

RECCOMENDATIONS AND ACTION PLANS

After identifying the problems, it has highlighted that the problem of the business was largely concentrated on the failure of proper strategic study before conducting the business.In effect, a weaker top line has been achieved that has causing the bleeding in the bottom line of the business PnL. The thought of being the first in the country in their offerings overshadowed the science of market study and interpretation, which is so much critical in putting up a business. However, in order to solve the problem and trouble shoot Pranav and realign it to make it a profitable business, here are the following recommendations:

1.     Revision of its business objectives and realigning it to accommodate the female market in which it has a promising great potential for sales and market share growth just like of the industryleaders, which are commonly unisex salons.

2.     Rationalize service offerings by removing services that are not contributing much but covers a bigger space in the salon. Instead, focus on its core services that are driving sales and attracting customers.

3.     In relation to the rationalizing of service offerings, realigning of the structure of the salon is needed to accommodate the entry of the new market segment, which are female. This means also leveraging on their strength of having a large floor area that could handlelarge capacity or volume of customers in a given period of time.

4.     Relocate the business into high traffic areas if its possible catering to both male and female market.