POINT OF VIEW

Yolanda Puno, the founder and president of Cradle Top Learning School, was also
once a dreamer, dedicated, inspired, and, above all, passionate about her business. Her
unwavering enthusiasm for teaching shines brightly, which led to the decision to start her
own business, which is to establish the Cradle Top Learning School. However, as the
years went by, Yolanda experienced difficulty managing her business. Her employees’
salaries were at stake, wages were unpaid, and utility bills were unsettled. That’s why she
resorted to taking out a loan, for which she did not even consider its interest. Moreover,
the school’s extremely increasing amount of accounts receivable comes from the unpaid
tuition fees of students who decided to drop out in the middle of the school year. Yolanda
found herself grappling with a profound burden of debt that has significantly impacted
various aspects of her life. The weight of her financial obligations has led to a complex
and challenging situation that requires careful consideration and strategic planning to
navigate. While inspiration serves as a powerful catalyst for pursuing one's goals, it is
important to recognize that success is not solely reliant on inspiration alone. Alongside
inspiration, a wide range of factors must be carefully considered and integrated into the
journey towards the achievement or success of an establishment.

CENTRAL ISSUE

The Central Issue of the establishment was that Yolanda, herself, initially has only
a strong desire or passion for educating students, which is undoubtedly a valuable asset.
However, her lack of concrete business plans and preparation raises concerns about the
viability and sustainability of her educational venture. Without well-defined strategies,
financial projections, and a comprehensive understanding of the market, the chances of
encountering challenges increase significantly.

The absence of proper planning could lead to several potential effects. Financial
instability might arise due to inadequate budgeting, leading to difficulties in maintaining
the necessary resources for educational activities. Inconsistent or ineffective marketing
strategies or enrollment strategies could hinder the reach and enrollment of students,
limiting the impact of their educational efforts. Aside from that, the Cradle Top Learning
School also has 16 competitor schools. However, its primary competitors were
Melvinshire Learning Center and Mizrach, because these two schools were situated
within the same vicinity as that of Cradle Top Learning School. Additionally, the absence
of contingency plans could leave them vulnerable to unforeseen circumstances, such as
changes in student demand, increasing bills to maintain the establishment, the salaries
of the employees, and any other financial obligations that need to be paid close attention
for.

While her burning desire for educating students is commendable, it's crucial for her to
balance her passion with a solid business foundation. Seeking guidance from
experienced mentors, refining their business model, and developing a well-structured
plan can significantly enhance their chances of creating a successful and sustainable
educational endeavor that effectively serves the students and fulfills their goals.

The establishment grapples with a trio of pressing dilemmas that demand thoughtful
resolution. These are as follows:

To restructure and review the finances - meaning to say the founder will lie in the ability
of providing a clear financial roadmap, improve efficiency, enhance decision-making, and
foster a foundation of stability and growth for the establishment. She should also omit
those activities in school that are not necessarily helpful for the children in their early and
young age. She must consider the basic needs of the children. Perhaps, in that way, she
can manage the finances way more lightly and can increase the salary of the employees
since the prevailing minimum wage in the Region IV-A (CALABARZON) as determined
by the National Wages and Productivity Commission (NWPC) of the Department of Labor
and Employment (DOLE) was PHP 253.00 - PHP 337.006 (USD 5.78 – USD 7.70) per
day. However, the salary of Yolanda’s employees was way out of the minimum wage.

To strengthen enrollment strategy - A well-crafted enrollment strategy not only ensures

a steady influx of students but also shapes the institution's identity and influence in the
education landscape. To improve the enrollment strategy, the school can consider
implementing the following approaches:
 • Segmented Outreach: Identify different student segments based on
demographics, interests, and academic goals. Craft tailored messages and
outreach efforts for each segment to ensure personalized communication that
addresses their specific needs.
• Parent and Student Engagement: Create platforms for prospective parents and
students to interact with teachers, counselors, and administrators. Address their
concerns, answer questions, and provide insights into the school's educational
approach.

To conduct a Community Engagement and Outreach - Foster strong ties with the local
community by participating in community events, collaborating with local businesses, and
demonstrating the school's commitment to being a positive influence.

With the abovementioned pressing dilemmas, Yolanda Puno needs to meticulously come
up with a wise judgment on how to perform the appropriate actions to be made whether
to Restructure and Review the Finances, to Strengthen Enrollment strategy, or to conduct
a Community Engagement and Outreach.

The areas that are primarily to be considered prior making a decision are the ways on
how to manage the finances of the establishment, the effective strategic enrollment ways
to sustain and strengthen the parents’ choice of letting their children continue to be at the
Cradle Top Learning School in order to have an assurance of having a revenue and also
to have a more profound information regarding the school via Community Engagement
solidarity. In this way, the school establishment will persuade more parents of the
learners. Thus, making a profit out of it. These considerations were based on the facts
that the school establishment is still on the verge of figuring out how to properly manage
its finances.

All of these dilemmas were triggered by the parents’ inconsistency of enrolling their
children, insufficient educational materials, and, above all, the Cradle Top Learning
School was understaffed. According to the article, in the school year 2015-2016, the
school had receivables amounting to Php100,000 (USD 2,004) because some parents
withdrew their children’s enrollment in the middle of the school year. Therefore, Yolanda
Puno was forced to write off these receivables as bad debt because there was no way for
her to collect from these parents. In this school year, Yolanda could hardly pay the
salaries of the school teachers. The unpaid utility bills also piled up, along with other
payables. To settle all her obligations, Yolanda was forced to secure funds from loan
sharks who were charging skyrocketing interest as high as 15%-20% per month. In short,
Yolanda’s business was definitely sinking.

Situational Analysis: “WHAT IF” scenarios.

1. What if Yolanda Puno made a well-concrete plan before establishing the school?
2. What if Yolanda Puno made a partnership with an influential organization to help
her foster the Cradle Top Learning School?
3. What if she did not resort to the marketing strategy of “enrollment with zero
payment”?
4. What if some of the children’s parents did not withdraw their children’s enrollment
in the middle of the school year?
5. What if Yolanda was not only driven by her burning desire but also considers the
multifactorial circumstances in establishing a school?
ALTERNATIVE COURSES OF ACTION

These are the proposed alternative courses of action that the Mrs. Puno can
choose from.

Alternative Pro’s Con’s

Action

Restructuring and • Will identify areas that • Affects the reputation of the
reviewing of are ineffective that school regarding the
finances doesn’t bring profit. availability of the services
• Explore new method offered.
to increase revenue. • Additional job & obligation.
• Introduce and • Takes time to learn and
practice better practice.
financial • Payment will be obtained
management from payments from
method. enrollees.
• Negotiate payment
terms with creditors.

Strengthen • Attracts new students • It may cause either good or

Enrollment and keep enrolled bad impression with people
Strategy students. depending on the new
• To set the school policies implemented.
apart with the others
• Gain more exposure
and expand
audience.
 Community • Strengthen the ties • Will take a lot of time and
Engagement and with the community. effort
Outreach • Develop partnership
with organization.

These proposed alternative courses of action can resolve the central issue through:

Restructuring and reviewing of finances - It would help the organization to identify

areas of inefficiency and will be able to implement reduce of expenses and improve
profitability. Explore more methods to increase revenue by offering services such as
tutoring and special programs. Will be able to decide wisely about the organization based
on its financial status. Through detailed financial stability, Mrs. Puno will be able to
negotiate with the creditors with payment terms according to the financial flow of the
organization.

Strengthen Enrollment Strategy - This will help in terms of attracting more students to
be able to keep up with the competitors. You can set the school apart with others and will
be able to highlight certain differences in terms of facilities and services.

Community Engagement and Outreach - This will also help the company maintaining
its value within the community. It may also lead to sponsorship or could refer potential
students.

EVALUATION

The considered evaluation of the case was based on the SMART (Specific,
Measurable, Achievable, Relevant, Time-bound) performance metrics for a school
founder of a school confronting the difficulty of no increase in enrollment and bad debt
due to unpaid tuition and other school expenses.

Specific: Reduce Bad Debt by 10% in the Next Academic Year.

Targeting the objective of lowering bad debt brought on by unpaid tuition and other
expenses. To be able to finally have profit from the business.

Measurable: Increase Student Retention Rate to 10% within 6 Months.

To track the development in enrolling students' retention over a given period.

Achievable: Generate 5% Increase in Revenue through Non-Tuition Sources within 12

Months.
Establishes a sensible target for boosting income through special program activities.

Relevant: Implement Financial Aid Packages to Address Enrollment Challenges within 3

Months.
Focuses on addressing the enrollment challenge by offering financial aid options to
attract more students.

Time-bound: Achieve a 10% Increase in New Enrollments by the End of the Next
Enrollment Period.
Establishes a specific timeline for achieving the goal of boosting new enrollments.

RECOMMENDATION

Our ultimate recommendations are that Mrs. Puno review the financial stability of
the organization. Diversify revenue streams and be smart with its allocation. Strengthen
the enrollment Strategy to be able to attract new students and retain enrolled students.
Remove unnecessary expenses as much as possible. Clearly communicate tuition fees,
payment deadlines, and financial policies to parents during the admission process and
improved billing and collection processes. Negotiate payment terms with the creditors.
And have exposure to strengthen the ties and to development partnership with the other
organizations and the communities.