JEMALYN D.

TURINGAN MBA 208

In the light of the theories discussed and of the findings of the different researches presented in class, discuss
extensively each of the following:

1. How is employee performance affected when the Head Office is the one that usually forecast sales and
simply cascaded to the different units as targets?
 When everything is dictated by the head office, problems may arise. Since the head office does not
have the on hand experience what is really happening in the branch, they tend to forecast based on
theory. There is no assurance that this was really the target needed. Besides, there is no other
opportunity for the employee to share what is on his / her mind. Every decision was made by the
head office and employees may feel so much pressure. There is a possibility that they’ll feel like they
aren’t really needed and tend to transfer to another organization. It may also result to being
unproductive especially when the targets aren’t really easy to achieve.

2. Discuss the implications of the principle “zero mistake, zero delay’ in the planning for profit of a business
enterprise.
 The principle zero mistake zero delays implies that to have a good profit planning, production must be
on time, in order to satisfy the customer. The more the customer is satisfied and delighted, repeat
business is observed. With this the operation of the business will be smoother and well organized,
therefore results to a better performance of the entity.

3. If you were the manager of a retail business where products are seasonal, how can profit be maximized,
and how can the entity safeguard itself from further losses?
 Throwing balance out the window, you must put your foot to the pedal in peak seasonal buying
periods to ensure you maximize sales. Align Your Selling Season with the Customer’s Buying Season.
The most common season referenced frequently in business is during holiday season where in there
is high demand for products like ham, queso de bola and etc. There are seasons of demand that
don’t necessarily align with when you should actually sell your services to maximize revenue. Your
buyers may be impacted by a season of their own. There may be a few seasons at play impacting
your ability to sell and secure future growth. For example during a new start of school year. Back to
school triggers a tremendous amount of buyers purchases from youth and families in which you
should promote and actively selling them from April to May. In case of perishable goods which are
only in season, forecast accurately what really is the demand. Have a proper storage for it to avoid
spoilage and wastage.

4. Discuss the ways in which an entity can be able to keep customer’s loyalty in the midst of changing
tastes/preferences/mindset.
 It used to be that people needed products to survive. Now products need people to survive. To achieve
it, the entity must stay close to the customers. With the changing behavior of the customers, you
must adhere to what the customers really needed. They tend to be picky and trendy nowadays,
that’s why you need to study your customers. Most organizations measure customer satisfaction by
how well they avoid customer dissatisfaction. Their common mistake is that they think if a few
customers complain, most are happy. This may seem simple, but you need to give customers what
they want, not what you think they want. And, if you do this, people will keep coming back.
5. Which strategy/ies adopted by SMEs do you think need upgrading? Why?
 Market penetration strategy: focus on current products and current markets in order to increase
market share. It requires strong execution in pricing, promotion, and distribution in order to grow
market share. It is very cliché. Every entity has always been using the same strategy when it comes
to penetrating the market. Aside from this it is very costly.
 Market penetration pricing: is a pricing strategy that sets a low initial price for a product. The goal is
to quickly attract new customers based on the low cost. The strategy is most effective for increasing
market share and sales volume while discouraging competition. This is usually done by new
enterprises or established enterprise who introduced new produced. The duration of the low price
offer is during the start only. After its promotion activities, the price will be higher compared to its
start. With this, customers may look for another industry that offers lower price for the same
product.
 Discrimination pricing: a selling strategy that charges customers different prices for the same product
or service based on what the seller thinks they can get the customer to agree to. It can build good
relationship with your customers but there are customers who are taking advantage of it.

6. Identify three risks of a business that you believe is difficult to manage. Why do you say so? Discuss your
answers.
 Inflation: it is a phenomenon in the business cycle where the entity cannot do anything about it. It is
very unpredictable. When the inflation rate is too high, prices of products tend to be pricy. With
prices of goods being high, the purchasing power of the customers tends to be too little.
 Natural disaster: for example during summer season, dry spell may occur. Crops will be affected. With
little supply, price tends to be high and demand would stay the same in case of basic goods like rice
but their purchases are limited. To ensure the safety of the products a warehouse or good storage is
needed.
 Live stock diseases: it is really hard to control because you don’t know when it will end. Customers
tend to panic that’s why the demand for it is decreasing.

7. From the case of Coke [case given below]: Which of the strategies adopted do you think are applicable
in the current times? If this happened today, what do you think is the expected result?
 Innovation, that’s what the coca- cola did, to gain advantage with Pepsi. Blind testing is done to tests
whether the new formula of coke would love by the market. Innovation is a good strategy, however
in the case, this innovation results to failure. If the same case was done, I think it would click in the
market. We are in the 21st century already where trends and new are important. Customers taste
and preferences changes from time to time. This strategy is usually done by Electronics Company
when there is a new model of gadgets to test whether the demand is high. They are conducting pre-
launching to test if the public would love it before distributing to the market. Because customers is
our boss we tend to give what they wanted.