Case Study – Sweeties’ Magic

Sweeties’ Magic is a company engaged in the manufacture of dolls, pillows and stuffed toys:
teddy bears, digs, rabbits, elephants, whales and others. Founded 40 years ago, the company
started simply as a hobby of the owner who was then fond of sewing and making handcrafted
giveaways. From then on, Sweeties’ Magic expanded to what it is today. The company has so
far grown, having withstood the economic ups and downs that the country experienced in the
past.

The vision of Sweeties’ Magic is to see that its stuffed toys are cuddled in the arms of young
children while feeling comfort and security. Thus, the company continues to manufacture
stuffed toys that are smooth, soft, and safe to touch. As a result, Sweeties’ Magic products are
intricately sewn in mellow and calming colors like soft blue, pink, white, beige, mint green and
others. So far, the company has successfully created this market niche.

A sole proprietorship, Sweeties’ Magic has no less than 95 sewers, including designers, cutters,
hand-crafters, cleaners, packers, salespeople and delivery personnel. Except for the sewers and
hand-crafters who are paid by piece, the others are paid weekly or monthly. In addition,
Sweeties’ Magic sells its stuffed toys through its own specialty stores. So far, the company
manages 12 outlets each located in one of the leading malls in the country. Good sales are
particularly generated during special occasions like Christmas and Valentine’s Day.

Although Sweeties’ Magic stuffed toys are considered popular birthday gifts, maintaining 12
stores have become very challenging for the company, considering the seasonality of its
products. During the company’s lean months, monetary obligations in terms of rental
payments, utilities, and salary wages have become a burden to the company.

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