Case Study 1 Entre 3

Topics: Rice, Management, City Pages: 14 (887 words) Published: August 1, 2015
Entrepreneurship 3
Case 1
Rose Restaurant:
What Now My Love?

Presentation of the
Case
Rose Restaurant is full of customers. It is not surprising because of two factors: first, its location in the center of the commercial district of Santiago City, and second, the dynamism of its owner and

manager, Ms. Rosemarie Ginez.

She is more than happy because she was able to realize her
dream of becoming successful in the food business. She now
owns the building and the lot she used to rent. Served in its large air-conditioned function hall are native and Chinese delicacies. The place has ample parking space for 20 cars.

It was in the restaurant where she first met her future
husband. He is a government employee and is
assigned to work in a nearby town. Rose’s husband is
a native of San Jose City and his widowed mother is
operating a big palay trading firm.

Apart from owning 10 cargo trucks, his mother also
owns one and a half hectares of commercial land in the
city’s business district. Just as Rose was considering
opening a branch of her restaurant in Cauayan City, her
mother–in–law died.

Two weeks later, her husband informed her that being
the heir, he needs to move quickly to San Jose City and
manage his mother’s business and other properties.
Even if her husband operates her mother’s business,
Rose could still continue managing her restaurant. Both
of them, however, are aware of the difficulty of
maintaining the two businesses which are four hours
away by car from each other.
They will miss each other for days every week if they
decide to keep both businesses. Her husband is
indifferent, however, on whatever Rose’s decision will
be.

Rose is now mulling over her family’s chances in
succeeding in business if she decides on maintaining
only the palay trading firm. Her decision–making is
made more complicated when her assistant reported a
49% increase in last year’s profits of her restaurant.

Statement of the Problem
1. Should Rose stop her restaurant?
2. If you were Rose, what additional
information would you need before making a
decision?

1. Should Rose stop her restaurant?
No, Rose should not stop her restaurant business. Why?
Because first, her restaurant is a source of daily income
and the palay trading firm’s income is generated around
once or twice a year because “palay” is a seasonal crop. So considering the income derived from both businesses,
we think that giving up the restaurant business is crucial
since she is mulling over the chances of success in the
business.

Another is that she is happy with the business because
she was able to realize her dream and managing the
restaurant is her forte.
Keeping the restaurant business will be an everyday
source of income with less risk of losses because the
location is perfect so the public have an easy access to
the place and there are many customers patronizing their
cuisine.
Meanwhile, the Palay Trading Firm will give them annual
or semi-annual income since rice is seasonal and they
have a bigger risk of loss because rice crops can be
destroyed by natural calamities and/or pests.

So, we suggest that she continue her business and hire a
manager instead. She could train the manager for a
month and then she could be with her husband after that.
She can visit the restaurant once or twice a week to
check the performance of the business and the
employees as well.
And considering her plans to put up a new branch of the
restaurant, we suggest that she try to conduct a feasibility project of her restaurant in San Jose City so that she can
just put up the restaurant there in her husband’s native
town instead of putting it in Cauayan City.

Her mother-in-law owns one and a half hectare of
commercial land in the city’s business district so she can open her restaurant there. Plus, her husband can also be
the supplier of rice in her restaurant.

If she can be able to put her restaurant in...
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