Professional Documents
Culture Documents
(Strat) - Chapter 3
(Strat) - Chapter 3
2020: The year 2020 marked a significant turning point as the COVID-19 pandemic
struck globally. In response to the challenges posed by the pandemic, the venture
shifted its operations predominantly to an online platform. This decision allowed the
business to continue reaching its audience despite the limitations imposed by the
pandemic.
2021: Despite the challenges of the previous year, 2021 became a successful period for
Calista Finds Davao. The business experiences positive sales outcomes, affirming the
resilience of its online platform strategy. This success prompted the continuation of the
online business model, solidifying its position as a reliable source for stylish accessories.
2022: The Year 2022 brought new challenges as the company faced a stagnation in
sales. To address this, the business diversified its approach by initiating participation in
various bazaars. This strategic move aimed to tap into different market segments and
revitalize sales growth.
2023: With the lifting of COVID-19 protocols in 2023, Calista Finds Davao seized the
opportunity to shift back to face-to-face interactions. The business actively participated in
local events and bazaars, reconnecting with the community and fostering a more direct
engagement with customers. This approach aligned with their commitment to inclusivity,
authenticity, and social responsibility., allowing the business to further prosper and
develop. The adaptation to changing circumstances and commitment to core
philosophies positioned Calista Finds Davao for continued success in the evolving
market landscape.
The internal assessment of Calista Finds Davao extends to its management approach,
characterized by a collaborative philosophy. Embracing the Collaborative Management
Approach involves actively engaging with employees, fostering an environment of inspiration,
teamwork, and shared goal achievement. By working closely with the workforce, Calista Finds
Davao cultivates high employee morale, recognizing the direct correlation between positive
morale and an efficient, effective workforce.
This collaborative ethos not only encourages open communication and idea exchange
but also instills a sense of ownership and commitment among employees. (add citations) The
emphasis on collaboration aligns with contemporary business principles that acknowledge the
value of collective intelligence and diverse perspectives. In the context of a small enterprise like
Calista Finds Davao, a collaborative management approach contributes to a more agile and
adaptive organization, better positioned to navigate the dynamic landscape of the fashion and
accessories market. The commitment to employee well-being and engagement is not only a
strategic advantage but also reflects the company's dedication to sustaining a positive internal
culture conducive to long-term success.
(source: https://www.indeed.com/career-advice/career-development/management-styles)
Horizontal Analysis
-change in total assets( T.A last year - T.A current year)
-Change in sales(annual percentage in total sales) (net sales or prev. Period -
current period then divide the answer to the total sales of current period x 100)
Profitability Ratio
-Return on Equity (N.I / T.S.E)
- Net Profit Margin (N.I / SALES)
- Return on Asset ( N. I / T.A)
Activity Ratio
-Fixed Asset Turnover (SALES / F.A)
-Total Asset Turnover (SALES / T.A)
-Days sales of Inventory (ave. Inventory / COGS X 365 days)
Liquidity Ratio
-Quick Ratio (C.A - INV. / C.L)
-Current Ratio (C.A / C.L)
Strengths
Weaknesses
The Internal Factor Evaluation Matrix (IFE) performed for the internal analysis of the
company reveals several key factors influencing its current state. The company demonstrates
strengths in its adept utilization of social media for marketing, offering a diverse range of
products, active participation in local events, and fostering a positive company culture. These
strengths, assigned respective weights and ratings, collectively contribute to a total weighted
score of 2.48 out of 1.00. On the downside, weaknesses such as stagnant sales, the absence of
physical stores, a low labor workforce, and limited financial resources have been identified.
While the absence of physical stores and limited financial resources pose challenges, the
stagnant sales and low labor workforce underscore areas that may require immediate attention.
The overall analysis sets the stage for strategic decision-making, emphasizing the need to
leverage strengths and address weaknesses to position the company for sustained growth and
success. The IFE matrix reveals a total weighted score of 2.48 which can be interpreted that the
business is on the average level when it comes to dealing with the internal factors of business.