STATEMENT OF THE PROBLEM

This study aimed to investigate how the participants make decisions for efficient

and effective management of its funds to accomplish the objectives of the organization.

Specifically, it sought to answer the following questions:

1. What is the Profile of the business enterprise in terms of the following?

1.1 THE NATURE OF THE BUSINESS:

Firms have different strategies to survive in today’s challenging times. To

maintain the business running, careful planning and continuous improvement of

operational activities are needed.

Some countries have seen an enormous demand for face masks from the public,

with supplies being diminished and shortages reported. Even with lesser public

demand, the United States reported mask shortages among healthcare workers. As the

coronavirus is transmitted via droplets of fluid from the nose or mouth, face masks are

essential for health workers who are in direct contact with infected patients. They can

also play a role in preventing sick people from spreading the virus when coughing or

simply talking or breathing. While the recommendation initially was to wear masks only

when taking care of people suspected of COVID-19 infection, WHO issued new

guidance on the use of masks for healthy people in community settings on 6 April 2020

and health authorities are increasingly recommending the broader use of masks. It is

undeniable that the number of transactions online have risen. Face mask turned to be a

necessity today and the demand for it increased.

1.2 YEAR OF ESTABLISHMENT

The year of establishment was in 2020, month of August.

1.3 NUMBER OF EMPLOYEES

To properly handle the business and to avoid lapses among different processes, 7

employees were needed: General manager, Business strategist, Channel lead, Digital

marketer, Customer service, Software engineer and an Accountant.

1.4 CURRENT CAPITALIZATION

The owner had a starting capital of 500,000. She wanted to ensure that the inventory

level of 5,000 boxes with safety stock of 618 boxes were met.

2. What are the problems/ challenges encountered by the management during the

pandemic as to the following:

2.1 CASH MANAGEMENT

The Face Mask Business offered a Cash on Delivery (COD) mode of payment. This

triggered sales to increase, but customers tended to overuse it. The business, which

needed cash to maintain its liquidity and use the money to run its operations, needed to

be collected as soon as possible, thereby decreasing its collection float. This float is the

time or days the cash of the business is unavailable for use. However, with COD as the

mode of payment, cash was floating from the time inventory was delivered until

payment was collected from the customers. This is one of the drawbacks of using COD.
2.2 RECEIVABLES MANAGEMENT

Cash on Delivery is in substance selling on accounts. An item was reserved for a

specific customer, thereby you must wait for the payment until actual delivery has taken

place. The problem with this was the increase in uncollectible and increase in

transportation expense which led to decrease in revenues. There were many bogus

buyers who ordered bulk items giving the sellers the wrong address. This incurred

additional costs for sellers to bring these back to their office, thereby increased

expenses and decreasing revenue.

2.3 INVENTORY MANAGEMENT

The business tried to maximize sales of face masks by proper managing its inventory

from its purchase up to its disposal.

The business had problems regarding the arrival of purchases from suppliers. This is a

critical point in any business that need proper and enough safeguard. We have said that

face mask became a necessity today, and with the entrance of pandemic, gradual

increase in demand took place. With its increase in demand, many orders were not filled

on time, a lot of customers were not accommodated. As a result, there were customers’

dissatisfaction that yielded to loss of repeat sales and left stained reputation among

customers.

2.4 ASSET MANAGEMENT (FIXED ASSET)

Any facet of business comes a point where they will experience problems in managing

their assets. Fixed assets are a vital tool in growing a business. Asset management is
how attentive the business is in using assets to generate sales, retain customers and

improve their daily operation. Idle use of fixed assets will denote lost sales opportunity.

The Face Mask business had some problems in their fixed assets. Instead of using the

idle land, the business owners preferred to rent in the town area where most people go.

Aside from online transactions, this allowed them to earn additional sale from on-site

customers.

3. What are the strategies implemented by the management during the pandemic as to

the following:

3.1 CASH MANAGEMENT

Effective cash management is a strategy that allows companies or businesses to control

their cash and manage their business in an efficient and effective way. With this,

businesses can reduce operation disruptions that yields to smooth and efficient flow of

operation and provide for its ongoing growth and profitability.

Since the business is using COD as their customers’ primary mode of payment, they

were able to entice customers in paying online as well. The business shifted to online

modes of payment such as bank to bank transfer and GCash settlement. In other

words, only those that can settle their accounts online can avail the product. There are

lost sales in customers with no bank or GCash accounts but with this, uncollectible

accounts and collection float will be lessened. The outright inflow of payment to the

business’ account will increase liquidity that will be used in the furtherance of the

business’ operations and safety that cash will be collected on time.

3.2 RECEIVABLES MANAGEMENT

Receivables management is the proper management of receivable from wide range of

customers. This is how well the company is utilizing its receivables to generate higher

income. The higher the receivables turnover of the business, the better. This means that

with the proper management of receivables, the faster the time that investment placed

in receivables is cycled and collected.

Out of the several sellers online, each seller wants to be the center of the market.

Everyone then is finding ways to gain assurance of customers’ loyalty may it be in

repeat order or on-time payment of accounts. To attract customers, Face mask

business can offer discounts to all items purchased in bulk. They can also offer early

payment discounts so that after an order is placed, payment comes right away. Thus,

inflow of resources will be used to cycle inventory.

3.3 INVENTORY MANAGEMENT

Inventory management is putting confidence that the capital invested in inventory will

generate higher sales for the company. This shows how efficient it is handled and how

effective it is when offered in the market. Inventory management aims to have a low

cost in maintaining inventory available for disposal.

The Online Face Mask business aims to speed generating sales as well as ensuring

that quality and other aspects are not sacrificed. One problem that the business is

facing is the unexpected increase in demand. To stabilize the flow of inventory, the

business is putting BUFFER, allowance, or excess inventory to compensate the

increase in demand and in some circumstances, the delay in delivery by suppliers.

3.4 ASSET MANAGEMENT

Fixed assets management is an accounting process that seeks to track fixed assets for

the purposes of financial accounting, preventive maintenance, and theft deterrence. 

To maximize income while maximizing resources, the business took advantage of

expanding its business to accommodate higher demand. Since the land is idle, they put

up an extension of the business in their idle land. Indeed, this is an opportunity that will

cater needs of a wider market.

RECOMMENDATIONS

The researcher offers the following recommendations.

1. To continue the improvement of the business, internal control must be given full

emphasis. Personnel in charge of orders and collection of accounts must be separate.

This will deter connivance among employees that will negatively affect the interest of

the business.

2. Advertising has a big effect in inflating sales. With the surge of sellers during

pandemic, Face Mask Business may want to consider investing in Sales and

Advertising to rise above competition.

3. The business must have a daily monitoring of orders and proper and organized

accounting. This will help the business track orders and trace cash inflows and outflows.

This will also highlight if orders are being filled up on time because customers,

considered as assets, prefer faster delivery.

4. A business is not only aiming to exist in the short run but in the long run. The

business may want to take into consideration providing CONSISTENT quality products
and service. Some businesses are too much focused on gaining outright with the

expense of losing repeat orders. When you are CONSISTENT with the quality of

products and service you offer to customers, you will not beg them to stay since they

will always look after you.