Les Miz Shoes Essay Sample
Les MIz is a household endeavor that was established in 1984 by the late Don Bienvenido Ducor. The endeavor has its mission to supply high quality ladies leather places for the export market. Don Ducor dreamt of going the premiere Filipino exporter of high quality footwear to Europe.
In 1990. Mrs. Espanada. Don Ducor’s girl. took over the direction of the company after her male parent died. Mrs. Espanada had problem running the company because it was saddled with low gross revenues. debt load. and operational jobs.
I. Time Context and Setting: 1992. Philippines
II. Statement of Objective
To measure the feasibleness of Les Miz Shoes’ long-run mission and to develop an overall scheme to achieve it
III. Central Problem
What strategic program is most appropriate so that Les Miz Shoes will be able to achieve its aim?
IV. Areas of Consideration
STRENGTHS| WEAKNESSES|
1. Ability to last and go on its operations despite of repeating losingss through the old ages. | 1. Unable to develop and implement definite pricing scheme. | 2. Ability to manage production even without the new machineries. | 2. Inability to see advertisement and selling scheme to increase gross revenues. | 3. Ability to make export-quality places. | 3. Keep a contract with Rustom’s that states Les Miz could non sell its places through distribution mercantile establishments other than Rustom’s subdivisions. which limits the company’s distribution scheme. |
OPPORTUNITIES| THREATS|
1. Soaring gross revenues in Les Miz’s low-cost line of places. | 1. The fluctuating dollar rates have led to unstable importing costs along with higher involvement rates brought approximately by the instability of the political environment. | 2. The hard currency colony released Les Miz from its long-run debts and freed the company from its tremendous involvement payments from such loans which had been made to purchase non-performing assets. | 2. Les Miz imports 100 per centum of its natural stuffs that is excessively dearly-won which leads the company to increase the shoes’ monetary value that consequences to take down gross revenues. | 3. Have the ability to administer its merchandises through set uping its ain mercantile establishments. | 3. Importers preferred to cover with cobblers who already had established local markets. |
V. Alternative Courses of Action
Action| Pro/s| Con/s|
1. Develop and implement selling and pricing schemes. | * There will be a higher chance for stable gross revenues addition. increased market portion. and decreased stiff competition. * The company will able to measure and be after definite monetary values that are sufficient to cover the costs incurred. * The company will be able to hold more frequenters. | * Lack of budget to develop and implement such schemes. * The direction doesn’t have the cognition to do such schemes. | 2. Cancel the contract with Rustan’s and develops its ain distribution scheme. | * The company’s distribution scheme will non be limited to Rustan’s. * There will be an addition in market portion. | * It will be hard for the company to administer on its ain because they are non a outstanding company unlike Rustan’s. * It is hard to seek for good market locations. * Lack of budget to set up subdivisions. | 3. Establish prominence in the local market prior to the export market. | * Importers prefer to cover with companies who already had established local markets. * The company will hold to confront lesser hazards in fluctuating dollar rates which have lead to unstable importing costs and higher involvement rates * The company will bring forth higher returns due to take down production costs and likely higher gross revenues. | * It will take ample clip for the company to achieve its primary aim. |
VI. Strategy Formulation
I therefore conclude that the best solution to the job is alternate class of action no. 3 which is to set up prominence in the local market prior to the export market. Because with this program of action is most appropriate so that Les Miz Shoes will be able to achieve its aim. although in a longer period of clip. Furthermore. the company can anticipate that there will be lesser hazards and higher returns.
VII. Plan of Action
1. Alternatively of utilizing imported natural stuffs that are excessively dearly-won. which leads the company to increase the shoes’ monetary value that consequences to take down gross revenues. the company may take to utilize stuffs that can be found locally that are of the same quality. 2. Develop schemes that are necessary for the company to achieve company’s nonsubjective such as marketing scheme to increase gross revenues and measure stiff competition. and pricing scheme to stabilise production planning. 3. By the clip the company is able to bring forth high plenty returns ; they can be after on administering its merchandises on its ain established mercantile establishments on good market locations and increase the company’s market portion. 4. After set uping prominence in the local market. the company can now able to be after it on the export market and achieve its primary aim.
VIII. Potential Problems
1. What if the company is non able to happen suited natural stuffs locally? 2. What if the company is non able to bring forth adequate returns locally due to stiff competition? 3. What if the direction is non willing and doesn’t like the thought of the suggested program of action?
IX. Eventuality Plan
1. This will least likely to go on because Philippines is well-known for its high quality merchandises which are made from stuffs that are found locally. But in such instance. the company can measure the job by looking for stuffs in states that the company will be best benefited sing both the costs that will be incurred and its quality. 2. The job will be least likely happen sing that Les Miz is able to bring forth export-quality merchandises and that selling. distribution and pricing schemes development and execution are included in the program of action. 3. The company may take to see program of action figure 1 or 2. although the overall job of the company will non be assessed.
