MGT 202: BUSINESS ORGANIZATION AND MANAGEMENT

CAPITOL UNIVERSITY
Cagayan de Oro
First Semester, S.Y. 2019-2020

RISTORANTE FILIPINO: More

Case # 3

After finishing the course in Hotel and Restaurant Management at St. Michael’s College, Ms. Claudia
Moser immediately went to assist her mother in operating “Ristorante Filipino”, a big restaurant in San Jose,
Bulacan. The firm has a total personnel complement of 30 which include her mother a proprietor and manager,
waiters, cooks, a cashier, a security guard, utility boy, technician, and a supervisor. A five-piece band plays
middle-of-the-road music every evening. By all indications, the business appears to be succeeding!

As a consequence of favorable results, Claudia was requested by her mother to prepare a plan for
expanding the business. The first move will be to open a branch within San Jose. The ten-year target will be to
establish branches in Tarlac, Pampanga, Nueva Ecija, Bataan, and Zambales.

Claudia has a sister who is an accountant, another is an industrial engineer, a brother is a chemist, and
another is the training director of a company. All of them, except Claudia, are employed outside of the family
business, with an average job experience of five years. If given the opportunity, all of them indicated that they
prefer working with their mother.

All the parts of expansion plan appear to be manageable tasks for Claudia, except that part which
identifies the source of funding for the expansion. Even if the restaurant is owned by the family, their mother does
not want to rely on banks loans as source of capital.

Claudia knows that the family’s assets are not sufficient to finance even a branch. However, her mother
was insistent on opening new branches within two years. “Timing”, according to her mother, “is very important
in business. The next two years is very crucial to our continued success.” To finance the proposed expansion,
Claudia is considering a change in ownership form as an option. She must think hard, however, on the type of
ownership form that will suit their family’s business.

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