Republic of the Philippines

BATANGAS STATE UNIVERSITY

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND
INTERNATIONAL HOSPITALITY MANAGEMENT
Pablo Borbon
Rizal Avenue, Batangas City

MGT 305 – ENTREPRENEURIAL MANAGEMENT

Second Semester AY 2021-2022

CASE STUDY

Names: SR Codes:
Greem Lloyd Corachea 21-59152
Princess Mae L. Genese 21-52543

Section: BSCA 1106 Date: October 20, 2021

“ROSE RESTAURANT: WHAT NOW MY LOVE”

I. Executive Summary
Rose Restaurant is perceptible of becoming successful in the food business industry. This restaurant
is well known for its Chinese specialties wherein they have gained a lot of customers, especially that it is
located in the central commercial zone of Santiago City. On the other side, Ms. Rosemarie’s husband is a
resident of San Jose City, who is an heir of a large palay trading enterprise with ten available trucks that are
used for their business. Unfortunately, her mother-in-law died and as a result, her husband had to go to his
hometown to manage the inherited business. This created a dilemma for the married couple because they
find it difficult to have time with each other due to the distance of their businesses’ locations. Ms.
Rosemarie had plans on opening another branch in Cauyan City, however, she got a report from her
assistant that they obtained an almost half percentage increase in their year’s profit. This factor have
affected Ms. Rosemarie in deciding whether he will stop operating her Rose Restaurant or not. In a
business, decision-making is very much important and cannot be prevented. Such as problems that are
needed to be addressed while considering the pros and cons the business owner might obtain. As a growing
food business, it became difficult for the couple to decide whether they will stop operating it due to the

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other business that her husband inherited from his mother. Such factors are that the distance between the
two businesses have 4 hours travel, so the couple find it arduous to travel back and forth, especially that
they are managing those away from each other. Aside from that, in deeper assessments, it will be noticed
that the Rose Restaurant has the potential to become successful if they continue operating it in a proper
way. Time management can be considered as a factor in the success of maintaining their business, in order
to do that, they must stay disciplined on the tasks they need to do. Also, having a contingency plan on
possible risks they might encounter on keeping their two businesses operating despite the distance. As a
married couple, it is important for them to decide considering the situation of each other and other things
that will be affected such as their business. In order to do so, roots of the problem must be addressed and
they must talk accordingly to the best strategies or alternative solutions on handling the business together.
Hiring a productive and efficient team will help the business to operate smoothly even if the couple are not
present in the location of the business. Lastly, they can also compromise on each other’s time so that it will
be easy for them to communicate and maximize their time equally.

II. Statement of the Problem

It is an accomplishment for many entrepreneurs if they successfully create or start their own
business. However, before an entrepreneur achieves that, there are many struggles or problems that he/she
have to encounter. It is similar with Ms. Rosemarie’s situation as she has difficulties in decision making like
whether she will continue to operate her restaurant in Santiago City or she will join her husband to manage
the Palay Trading Firm of her deceased mother-in-law in San Jose City. Her mother-in-law died causing her
husband to go to San Jose City to manage the inherited firm. This also created an issue to the couple in
spending time to each other because of the distance of their businesses' locations. It is said that it is four
hours away by travel from each businesses' location causing the two of them to miss each other for days
every week, if they decided to manage or kept operating both businesses. Furthermore, the struggle that she
is facing became more challenging when her assistant reported that there is a 49% increase in the income of
the restaurant from the previous year so she is confused if she should sacrifice her restaurant or keep
managing both businesses. As concluded, the study also find or look for the root causes of the problems:
The obligations between work and personal life
For Ms. Ginez, it is hard for her to do her duties between her work and her personal life as a wife. It
is a pressure to her if she pays more attention to the work or to her personal wife, it will be unbalanced and
it is possible that the other one will be affected.
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Location of the two business
The location of the firm is very essential to catch customer's attention and also to shrink or decrease
your travel time. In Ms. Rosemarie's situation, both of their businesses are far away from each other
because it is four hours away by car from each other. So it is a struggle for them to spend time with each
other.
Business Operations
Ms. Ginez became more pressured in making decisions if she continues to manage her restaurant
and the palay trading firm or sacrifice her dream which is the restaurant when her assistant reported that her
restaurant had a 49% increase in income from previous year. It means that her managerial skills in business
operations are good.

Likewise, the study have implied the short term and long term problems:
Long term
● Keeping up with market trends
● Competitors
Short term
● Inventory management and menu pricing
● Hiring and training staffs
● Growth Management
Short term problems are the problems in business which can be solved immediately in a short
period of time while long term problems are the problems faced by a firm which can be solved in a long
period of time and it is necessary to have proper planning prepared by the business to give solutions to this
kind of problem.

III. Causes of the Problem

In connection with the problems stated, the couple were experiencing a dilemma between the two
succeeding businesses they were operating. This has become a problem due to the distance of the two
businesses wherein it affects their relationship and the difficulty of maintaining the stability of operating the
business alone and away from each other. To address it well, they need to assess the main roots of their
problems so that they can find better alternatives and solutions.

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 As they are aware of their situation, it is very visible that there is a predicament on how they will
simultaneously manage their businesses. First of all, it is tiring for the both of them to travel back and forth
for four hours to spend quality time with each other. As the business itself is time and physically
consuming, it will be hard for them to find time to meet. Furthermore, they have a hard time deciding if it is
ethical to stop operating the restaurant knowing that it runs well in their city, as Rose is very dedicated in
managing her restaurant and there are a lot of opportunities in the place where it was built. As well as they
are both aware that the two businesses are both succeeding, they are equivocal in deciding if they will
sacrifice the other one or not. As a married couple, spending time together is very important. However, it is
not the only thing that builds a healthy relationship as it also requires good communication and respect.
In relation to this, according to Timmerman (2001), the satisfaction levels in a married couple that
are in a long-distance relationship has no significant differences in people who are in the situation of a
geographically proximate relationship. To prove this assertion, social exchange theory by George Homans,
a sociologist, predicts that people in long-distance relationships will be less content than people in intimate
relationships. Because long-distance relationships have higher emotional, social, logistical, financial, and
trust costs. However, much research has demonstrated that long-distance relationships are equally as
gratifying as those with people who live close by.
The contingency management theory by Fred Fiedler, a scientist, tackles the role of real life
situations in which it is stated that there is no consistent solution that will work in every circumstance. In
this concept, there are internal and external determinants that affect running a business. In the middle of the
process, theories and approaches must be assessed through a given situation. However, it varies in certain
situations and conditions. In simple understanding, there is no best approach as it is dependent on the
internal and external situation. (Gordon, 2021)

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 It is important to assess your purpose of running your business to continue the operations with
efficiency. This model is associated with the problems stated as they have second thoughts if they will
continue operating the Rose Restaurant. The married couple must assess their purpose and reason on why
they ran their business to evaluate and proceed to the second step which is taking and considering the
process.
In conclusion, to know the main cause of the problem and how it will affect their decision making,
they must know first the determinants in order to decide and take measures in making the right choices. It is
very essential for the couple to consider a lot of things that affect them personally and in connection with
their businesses. First, they must communicate with each other on how they will handle the situation
together, as they agreed upon what they talked about. The distance of their two businesses affected the
proximity they have as a married couple in their daily life and it is a big determinant on how they reached a
possible decision of closing the Rose restaurant. Second, stated in the Contingency Management Theory
that there are no consistent solutions to every situation. In order to do so, those external factors must be
assessed and the present situation the couple are experiencing must be considered, not only for their
personal matters but also for the success of their business. Lastly, in the model shown above wherein
purpose beyond profit, it is necessary to know what will be the benefits and the risks they might get if they
sacrificed a successful restaurant.

IV. Decision Criteria and Alternative Solutions

The case study aims to make decisions criteria. Below are the decisions criteria together with the
alternative solutions proposed:

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 All in all, the business will not be closed down because of the alternative solutions that were
proposed. It will surely give more profit to the couple if they both operate the two businesses. However,
they have to face the struggles in order to make these things work. They have to endure the difficulties of
having two business firms so that they can attain great rewards because we all know that the harder the
problem, the greater the rewards you can get.

V. Recommended Solutions, Implementation and Justification

In the success of strengthening the suggested alternative solutions that were stated in the previous
section, it is also important to take into consideration the detailed information in order to finally take place
in the plan of action. Ms. Rosemarie and her husband should first consider their situation as a marriage
couple wherein they will talk about each other’s side, pertaining to their needs and wants. As a couple, they
need to decide together and not by their own selfness. We recommend continuing the operations of Rose
Restaurant and in relation to this, there will be a lot of people involved as it will help them to manage their
time with the help of a productive team that can handle the business while they are in the other one. If time
management will be considered in the middle of thinking on how they will spend time with each other, they
can set a schedule wherein they will compromise.
For example, during weekdays, Ms. Rosemarie and her husband can stay in Santiago City to manage
the restaurant and if agreed upon, during weekends, they will go together in San Jose to check the trading
farm. Opening a business is not all about an individual, as this requires to gain trusted employees who will
help your business to improve and grow more on becoming a successful and well known in the industry. In

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order to do that, they must find people through screening and recruiting who will help them to manage the
two businesses while they are not present in the area. That is also the reason why there is a management
team. According to Lindberg (2021), a management team is a group of people hired by a business owner
that have their own acquired skills and knowledge in which they have the responsibility in managing the
business through their own specializations in different areas of the business such as accounting, operations
and marketing. It might cost their business more in hiring personnels but in the long run, they will not only
gain time but also on how to maintain the success of their business. As proven, wise business owners
usually hire employees to provide profitability and company’s productivity through the help of the hired
trusted employees. According to Mooney (2019), in order to ensure the proper screening of their
management team, they must consider the education and credentials wherein it provides the ability of your
potential employee in completing an educational program. Also, work experience is a very important factor
to be considered especially that the Rose Restaurant is a business under the food industry. Experience is
very much essential as it provides a good work ethic for the specific position you are recruiting. Their
personalities they are holding are also necessary to be considered as it provides on how they will handle
situations in human relations. Lastly, having a specific set of skills is very important in finding the qualities
of a potential employee as it will help the business to operate well in the long run.

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 Furthermore, the couple can take into consideration an action plan that contains their schedule on
what they agreed upon their availability. They can make a planner that indicates the date that they can go to
the other business in San Juan or in Santiago City. It also includes the specific tasks they must accomplish
so that they can maximize their time while they are both present to the business and to still find quality time
for their family. The theory of Economist Vilfredo Pareto which is the 80/20 Rule can help the couple on
time management through consuming 80% of their time where they can obtain greater benefits. Pareto’s
theory has a concept of prioritizing to do tasks that will give you benefits or rewards. (Tardi, 2020) In
relation to the couple’s time management, they can assess what is more important in terms of managing
their time in their business. In which they will find what needs to be done ahead of time and what they need
to accomplish in order to maintain their business. Through concentrating on what’s more important, they
can maximize their time and prevent wasting their time and effort on things that are not necessary.
To back up the ideal course of action, a contingency plan must be imposed so that the risks will be
assessed and such threats may be prevented. It outlines the response and strategies a business will take upon
when there is an unforeseen occurrence or business crisis. They are very necessary to the overall success of
your business in the process of determining whether you are well prepared for any circumstances that might
happen. In addition, this guarantees that overseeing situations that may occur will help the business provide
proactive solutions and strategies. Long (2018)

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 Provided above is the contingency plan wherein the Rose Restaurant may encounter on a daily basis
or in the long run. In order to prevent the risks from happening, they must be attentive and stay prepared on
taking measures on the success of their strategic plan.

In relation to their decision-making process, it is very important to assess the problems through
considering the impacts of it to their business and relationship. Simon Herbert, an American economist and
popular scientist who was known for his multiple contributions in the fields of psychology, statistics and
mathematics, suggests that there is never one best course of action or decision. It’s because one can’t have
complete information about something, therefore, there will always be a better course of action or decision.
In simple understanding of this theory, it has the concept that states a more realistic view of our situations in
life wherein our decisions play an important role in connection to its outcome. However, in Herbert’s
argument, decision making is also making choices between alternative courses of actions. As well as
choosing between taking actions or not. According to an internet article, Harappa (2021) stated that Simon's
Decision Making Theory also helps determine psychological factors that traditional economists have missed
or underestimated. Internal factors such as stress and motivation, among others, hinder a person's ability to
withstand complicated problems. As a result, courses of action are made on the basis of constrained
rationality—humans act differently when faced with risks and uncertainty. The concept of “satisficing”. a
combination of satisfying and sufficing, has been the basis of the idea. It implies that rather than focusing
on maximizing profits, one should pursue objectives or make decisions that involve the fewest risks and
difficulties. This theory will help the couple in the process of their decision making, in a way that they will
assess or list first the positive and negative impacts of closing the Rose Restaurant. However, they will not

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just focus on the concept of maximizing profits but also the assets Rose has due to her restaurant. They
must consider the fact that Rose Restaurant has gained a lot of customers and this simply means that people
have been fond and familiar with their food. In addition, the dreams of Ms. Rosemarie is becoming
successful in the food industry. Lastly, the fact that she already owns the building and it is noticed that it has
also a big space for a place that is located in a commercial district of their city. In taking a decision, Ms.
Rosemarie and her husband must be mindful of the reality view of the opportunity she has in maintaining
her Rose Restaurant due to the fact that it might be for long term success as it is well known and growing.
Finding alternatives in continuing the operations of the restaurant such as building a productive and
trusted team can also be considered. If the couple have decided to continue operating the two businesses,
they can hire a trusted people or team wherein they are ones who will manage the restaurant temporarily
whenever Ms. Rosemarie is accompanying her husband with their other business. In correspondence, the
assertion of George Elton Mayo who is well known as the progenitor of the human relations movement in
management has the concept that based on deep observations in human relations, the productivity of
employees in their workplace varies from environmental factors wherein they are more motivated when
they are treated well. In terms of approach in various teams and dynamics, Mayo asserted that relational
factors such as paying attention and giving importance to employees play a vital role in relation to their
motivation to stay efficient in their work. (Dininni, 2010) This theory will help the couple to be aware that
having a good relationship and environment with their employees will also help them to maintain their
business runs smoothly.

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 Furthermore, Mayo also introduced the Motivation Theory in which it has a concept that is also
connected in human relations. He believed that social needs are also a big factor in maintaining a productive
team in your business as he concluded that workers are much more motivated when there is good
communication and has a greater manager involvement in terms of employees. (Kukreja, 2021) When the
couple has ensured the efficiency of their employees through good relationships, they are able to have more
time in handling their two businesses simultaneously without sacrificing the other one. Particularly, they
can have more time handling personal situations in relation to them because they have a trusted and
productive team that will work together for their business to run smoothly and efficiently.
In terms of their relationship wherein it is also considered as a big factor in terms of
decision-making, there can be assertions that can aid in the process. Such as taking into consideration the
theory of Dr. Chapman, a well known marriage counselor and director of marriage seminars. In an online
article written by Gordon (2020), Dr. Chapman found that there are five primary love languages that
humans have. These include acts of service, words of affirmation, physical touch, quality time and receiving
gifts. In simple understanding, it is how people feel loved through each of them. Through these love
languages, it would be beneficial in terms of understanding the differences of couples and on how it can
make a greater impact on their relationship. As Dr. Chapman stated, one of the easiest ways to improve a
relationship is to assess and keep communications with your partner. Maintaining a healthy relationship is
important especially that they are both too caught up in handling their businesses. For this reason, they need
to have open communication so that they can address each other’s strengths and weaknesses to help
maintain their quality time as a couple. Knowing each other more will help them to decide and agree upon
each other in such situations like this.
Through the theories stated above, the married couple can continue managing their two businesses
with the help of each other. With their strong foundation and good communication, addressing their
strengths and weaknesses will help in maintaining a business. Also, success equals sacrifice because there
will be times that they might find themselves experiencing difficulties in sustaining their relationship with
enough time. However, success requires doing things that don’t give us ephemeral pleasure but benefit us in
the long run. So it is important to take control and assess it to experience the fruit of your success in
ampleness.

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VI. External Sourcing

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Herbert Simon's decision making theory. Harappa. (2021, June 21). Retrieved October 20, 2021, from
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Lindberg, C. (2021, September 13). What is a management team? What is its purpose, structure and
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Nightingale, J. (2019, September 17). 7 surprisingly common problems that restaurants face.
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Management Theory of Elton Mayo. business.com. (n.d.). Retrieved October 20, 2021, from
https://www.business.com/articles/management-theory-of-elton-mayo/.

Mooney, L. (2019, March 9). What factors would you consider most important in recruiting
employees? Small Business - Chron.com. Retrieved October 20, 2021, from
https://smallbusiness.chron.com/factors-would-consider-important-recruiting-employees-45486.html.

Nightingale, J. (2019, September 17). 7 surprisingly common problems that restaurants face.
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Purpose Beyond Profit. Stocker Partnership. (2019, August 22). Retrieved October 20, 2021, from
https://www.stockerpartnership.com/resources/articles/purpose-beyond-profit/.

Tardi, C. (2021, July 28). How to apply the 80-20 rule. Investopedia. Retrieved October 20, 2021,
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