Mercado, Alyza Noeri A.

Risk Management
SBENT30 Mam Marjorie Daganas

BUSINESS CASE ANALYSIS

I. Time constraint By April of 2020, Foodpanda of Spas (Sparadic) had to
slow down their operations and turned their focus on
development. Impacted by the pandemic, many of their
partner providers have closed due to the lack of
business. Spa services are not essential at this time, and
their company relies only on these providers.
II. View Point In my point of view, I think the CEO of the company
will be the one who make a decision because the CEO
is ultimately responsible for the company’s major
decisions. That’s the job of the CEO, who can and
should have access to the best possible advice.
III. Statement of the problem Negative cash flow was the major problem of
Sparadic, a non-essential business. The core of the
business is wellness and physical interaction is
required. That is why due to the pandemic in April
2020 on-demand spa mobile app Sparadic, decided to
close. Another problem is that Closing a business
requires a considerable amount of legwork and
consumes a lot of resources.
IV Statement of Objectives  The company make sure that they could afford
. to compensate their employees that is why for
me it is better if they decided to close their
business for the company and its employees
 For them to be able to legally close their
business as closing the business is more
expensive than opening one.
V. Areas of Consideration/ The significant ones are the support that they have
Analysis or SWOT been receive from other startup businesses. It helps
Analysis them out to survive in their problem in closing the
business. The insignificant fact in their case is the truth
that they did not done any research regarding the
closing of the business.

Strengths Weaknesses
1. Sparadic has many partner providers 1. Founders are unable to fix things in the
which they can rely. barangay and city where the business
2. Many startups reached them out and is registered.
 gave them great advice.
Opportunities
1. Support from members of the
Startup PH Facebook group and
LegalTree
2. They should not have done some
research on business closure.
Threats
1. Business closing
2. Factor in the pandemic, government
offices are not working at full
capacity.
3. BIR, slapped them with penalties
they’re not expecting.

VI. Alternative Courses Action 1.Sparadic must seek advice to their business providers
or other business experts how to start a new small
business that is in-demand for this time of pandemic.
2.They must look for angel investors who are willing
to provide capital for their new business start-up.
3. Sell business instead of closing it.
VII Decision Matrix This is presented in the table below.
.

Legend 1- Good 2- Better 3- Best

Criteria Alternative Course of Alternative Course of Alternative Course of
Action 1 Action 2 Action 3
Reliability 2 3 3
Ease to solve 2 2 3
Practicality 2 3 3

VIII Recomendation Based in the decision matrix, It is the best solution if

. Sparadic sells their spa service business. As they have a
financial problem in legally closing their business, they
should sell it instead.
IX. Conclusion/Detailed Action Plan In this analysis, The right resolution is by selling the Spa
Service Business “Sparadic”. to make it detailed, they
need to Prepare their documents like gathering their
financial statements and tax returns dating back three to
four years and review them with an accountant. In
addition, develop a list of equipment that's being sold
with the business. Also, create a list of contacts related
to sales transactions and supplies, and dig up any
relevant paperwork such as your current lease. Create
copies of these documents to distribute to financially
qualified potential buyers. Lastly, they should Get two to
 three potential buyers and stay in contact with them.

Activity Time Period Person Responsible Budget

Requirements, if any
Prepare for the sale  A year or two ahead Business owner
of time.
Preparing Documents 2-3 Months Business Analyst

Finding a Buyer 1 Month Owner