NATIONAL COLLEGE OF BUSINESS AND ARTS

GRADUATE STUDIES
Master in Business Administration
Cubao Campus, Quezon City

Rianne Karisa V. Lumabao Entrepreneurship & Cooperatives

2019-10323 DR. Mojica

CASE STUDY: Goldilocks Bakeshop Inc.

I. Name of Company: Goldilocks Bakeshop Inc.

II. Point of View: Richard L. Yee
III. Time Context: 2019

IV. Background History

 Goldilocks was founded by sisters Milagros Leelin Yee, Clarita Leelin Go and
their sister-in-law, Doris Wilson Leelin.
 On May 15, 1966, the sisters together with their sister-in-law, opened
Goldilocks on a 70-sqm space on the ground floor of a three-story building at
Pasong Tamo, Makati. Their products were made in their family kitchen. The
store offered freshly-made cakes and pastries which were sold out every day.

 “The name Goldilocks was chosen because of two very important words
embedded in the name—gold and luck, which suggest fortune and success.”

 Richard Yee, son of Milagros, is now leading the company to greater heights.
And the fairytale continues 50 years after.

V. Statement of the Problem:

Situation: According to its latest financial statement, Goldilocks posted net sales
of P7.86 billion in 2015, up from P6.85 billion the previous 2017. Net profit
attributable to equity holders of parent firm stood at P225.07 million compared to
a restated net profit of P947,267 in 2014.

The fast-food chain had P2.89 billion in total assets as of 2015. Goldilocks’ net
profit margin of 2.8 percent is relatively low versus market leader Jollibee Foods
Corp.’s margin of 5.6 percent.

Question: How to achieve continual improvement, rapid growth,

and strengthen brand of Goldilocks Bakeshop Inc. amidst the transition
towards massive growth and the pressures of stiff competition?

Entrepreneurship & Cooperatives

VI. Areas of Consideration

Strengths Weaknesses
 Value proposition  Lack of “core competence”
 Customer oriented  Huge variety may be intimidating &
 Ability to add themes for all confusing to some customers
occasions
 Convenient
 Future - proofing

Opportunities Threats
 High level of investment  High costs of food & supplies may
opportunities squeeze profit margins
 Attractive idea for joint ventures  Economy (recession)
to increase market coverage  Unsupportive local communities for
this type of a business

VII. Alternative Course of Action

ACA #1: To seek partnership or joint venture to highly

motivated entrepreneurs
Pros:
► Shared cost lessens the required financial burden.
► Increased capacity or number of stores
► Sharing of risks and costs
► Access to greater resources, including specialized staff, technology and
finance

Cons:
► The objectives of the venture are not clear and communicated to everyone
involved
► Different cultures and management styles result in poor integration and co-
operation

ACA #2: Innovate product and facilities to best out other competitors
Pros:
► Greater responsiveness to customer demands

Entrepreneurship & Cooperatives

 ► Streamlined relationships with suppliers and customers
► Greater potential for a wider product range

Cons:
► Uncertain commercial returns
► Availability of finance
► Innovative products and processes are hard to protect
► Opportunity cost of investing in R&D can be very high.

ACA #3: Put the best people in the right roles because of ability,
not lineage
Pros:
► Sharing the higher knowledge
► Minimal Supervision
► Keep up with industry changes
Cons:
► Inconsistency
► Time requirements
► Loss of interest
► Uncontrollable

VIII. Recommendation and Conclusion

I recommend ACA #1 To seek partnership or joint venture to highly

motivated entrepreneurs.

In order to achieve rapid growth, more competitive, and strengthen

the brand, Goldilocks should joint venture with other companies like SM Group for
best strategic alliance to make Goldilocks stronger in another next 50 years.

Entrepreneurship & Cooperatives