CONFETTI SHOES

I. FACTS OF THE CASE

Confetti Shoes sells ladies’ shoes designed by the owner-manager,

Mrs. Maria Isabel Bello. The designs of the shoes are executed by shoe
manufacturers in Marikina.

In 1983, Confetti Shoes opened a shoe boutique at Greenbelt Square

in Makati, Metro Manila. Mrs. Bello employed a cashier and eight
salesgirls for the Greenbelt outlet. Out of the eight salesgirls, four are
student trainees whose employment contracts are for a maximum of six
months only. The cashier, who is also the store manager, is paid a
monthly salary while the four salesgirls with permanent or regular
employment status are paid the minimum wage. The Greenbelt outlet was
an instant success that Mrs. Bello decided to open another branch at
Quadpark Mall (also in Makati) in 1984. The size of the floor area in this
outlet is smaller such that Mrs. Bello hired only one cashier/store
manager, two student trainees and two regular salesgirls.

In 1987, Confetti Shoes decided to open at Shoemart Edsa and in

Angeles, Pampanga. Mrs. Bello called on her friend, Edna Perez, an
Accounting teacher, and expressed her concern on the control system for
the new outlets. Edna promised Mrs. Bello that she will look into the
problem herself.

For the outlets, store procedures and practices were the same. Edna
noticed that the postings to the stockcards are current for the Greenbelt
store but for the other outlets the postings are one week behind. She also
noticed that cash deposits do not always tally with the sales notebook.

II. STATEMENT OF THE PROBLEM

How will Confetti Shoes improved its control system as to minimize

losses while demanding minimum time visits and less expense?
 III. OBJECTIVES

1) To devise a control system that would stabilize the current problem

arising in the company, all the while maintaining profitability and low
cost.
2) To come up with a control system that would satisfy Mrs. Bello’s
concern and also a control system approved by the employees.
3) To plan possible alternative systems that would minimize losses in the
company.
4) To ensure a procedure that will be strictly followed by the employees
as to avoid miscalculations and unequal tallies.

IV. ALTERNATIVE COURSES OF ACTION

HIRE ANOTHER PERSON TO ACT AS THE MANAGER

ADVANTAGES

 This would mean separate responsibilities for the cashier and the
manager, separate persons doing separate jobs. This would ensure
that the entire focus of the employees are on a specific task and
not diverted, thus having more efficiency in the work area.
 This would lessen the tasks of the cashier.
 It will promote a better organizational chart for the company and
the distribution of tasks will be equated properly.

DISADVANTAGE

 This will add to the expense of the company.

MAKE IT A MANDATORY PROCEDURE TO HAVE CURRENT
POSTINGS FOR STOCKCARDS

ADVANTAGES

 This would lessen the problem of having late postings for

stockcards. Having current records will avoid the method of
physical counting of styles which can carry manual errors done by
employees.
 This would promote an updated record for the company and will
be a great help in replenishing stocks.

DISADVANTAGES

 The possibility that the employees would not follow the said
procedure, thus making it ineffective.
 Errors done by employees in the postings can be a source of
problem for the company.

FIRE EMPLOYEES WHO ARE ABSENT-MINDED; HIRE

WORKERS WHO ARE ATTENTIVE

ADVANTAGES

 This would lessen the problems with regards to keeping cash

receipts and inventory management. Having skilled workers will
lead to a great job efficiency, thus avoiding problems along the
way.
 This would solve the company’s current problem of not having an
effective control system. The able workers will promote a better
system.
DISADVANTAGES

 An increase in employee turnover rate.

 Firing workers will lessen productivity in the company.
 Additional expense for the hiring and the training of new employees.

CONDUCT AN ORIENTATION FOR EMPLOYEES REGARDING

THE BASIC OPERATIONS AND STORE PROCEDURES THAT
SHOULD BE FOLLOWED IN THE COMPANY

ADVANTAGES

 This would orient the employees about the procedures to be done

in the company and would ensure proper methods will be
followed.
 Gives employees knowledge about the store operations to be
conducted.
 Promotes better productivity in the workplace because of the
introduction of tasks to the workers.

DISADVANTAGES

 Additional expense for the seminar or orientation.

 The probability that the workers will not listen, thus making it
ineffective.
 Time-consuming method of development.

RECOMMENDATION:
 I recommend doing the orientation first. This would ensure that the
employees are aware of the basic store procedures to be followed and are
taught the operations needed in the company. They would gain
knowledge and firsthand experience in handling their respective tasks and
responsibilities, thus promoting efficiency and specialization in the
workplace.

Second, the company should make it a policy or rule that the postings
in the stockcards should be current. This would help in the replenishing of
styles that comes afterward. This would avoid miscalculation or
misinformation in the part of the owner because the cards represent
updated versions or records, as to have a much better system of reviewing
the stocks.

Lastly, the management should hire another person to act as the

manager. This would ensure that the tasks are distributed properly. The
cashier will focus on her assigned job as well as the manager will focus
on hers. There will be no crossing over of responsibilities, making it
efficient in the workplace because of a much better organizational
structure in the company.

CONCLUSION:

It is important to have an effective method of control in the company,

as to avoid losses in the future and also to lessen the cost. Having
problems with regards to inventory and cash receipts will lead to the
downfall of the business due to the fact that records are not properly
written and cash balances are not equated efficiently. A company that has
a good control system will work with cohesiveness and preciseness in
terms of basic operations and store procedures.