Charlyn O. Sulad Mngt.

3 MTH 7:30-9:00 pm

Pamela Mennet Llorente March 16, 2017

Case Analysis

Case Study: Violet Dreams

Violet Dreams is a company engaged in the manufacture of dolls, pillows, and

stuffed toys, teddy bears, dogs, rabbits, elephants, whales, and others. Founded 40
years ago, the company stared simply as a hobby of the owner who was then fond of
sewing and making small handcrafted giveaways. From then on, Violet Dreams
expanded to what it is today. The company has so far grown, having withstood the
economic ups and downs that the country experienced in the past.

The vision of Violet Dreams is to see that its stuffed toys are cuddled in the arms
of young children while feeling comfort and security. Thus, the company continues to
manufacture stuffed toys that are smooth, soft, and safe to touch. As a result, Violet
Dream’s products are intricately sewn in mellow and calming colors like soft blue, pink,
white, beige, light, green, and others. So far, the company has successfully created this
market niche.

A sole proprietorship, Violet Dreams has no less than 95 sewers, including

designers, cutters, handcrafters, cleaners, packers, salespeople, and delivery
personnel. Except for the sewers and handcrafters who are paid by piece, the others
are paid weekly or monthly. In addition, Violet Dreams sell its stuffed toys through its
own specialty stores. So far, the company manages 12 outlets each located in one of
the leading malls in the country. Good sales are particularly generated during special
occasions like Christmas and Valentine’s Day.

Although Violet Dreams’ stuffed toys are considered popular birthday gifts,
maintaining 12 stores have become very challenging for the company, considering the
seasonality of its products. During the company’s lean months, monetary obligations in
terms of rental payments, utilities and salary wages have become a burden to the
company.

Hired as a Consultant, how can you help the owners of Violet Dreams given the
challenges confronting them? Using case analysis, what strategies can you propose to
help keep them financially afloat and in time profitable? Prepare an action plan.