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The document provides background information on Onesimus Corporation, a men's formal wear company located in the Philippines. It details the company's profile, history, vision, mission, core values, organizational structure, and policies. Onesimus was established in 1991 and has grown from 3 employees to over 500 employees with 130 store locations. The company aims to be the leading distributor of men's apparel and accessories while upholding Christian values of excellence, accountability, teamwork, and customer satisfaction.
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0% found this document useful (0 votes)
867 views76 pages

Dwadaswdaws

The document provides background information on Onesimus Corporation, a men's formal wear company located in the Philippines. It details the company's profile, history, vision, mission, core values, organizational structure, and policies. Onesimus was established in 1991 and has grown from 3 employees to over 500 employees with 130 store locations. The company aims to be the leading distributor of men's apparel and accessories while upholding Christian values of excellence, accountability, teamwork, and customer satisfaction.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 76

JOSE RIZAL UNIVERSITY

A Business Policy Proposal

Presented to the’
College of Business Administration and Accountancy

“ONESIMUS CORPORATION”
592 Cordillera st., Brgy. Malamig, Mandaluyong City, Philippines 1150

In Particular Fullfilment of Requirements for the Degree of


Bachelor of Science in Business Administration
Major in Management

SUBMITTED TO:
Professor Miller Mercado

SUBMITTED BY:
Ambus, Ma. Judelyn G.
Arcilla, Arbie C.
Coronado, Nikkei Rose C.
Villavelez, Glydel W.
Bantayan, Rheza Mae C.
Alabado, Ladyleen
CHAPTER I

INTRODUCTION

This chapter presents information gathered from Onesimus Corporation.

It’s Company Profile, Visions, Missions, Company Policies, Organizational

Structure and Company History.

Also in here will be stated their strategies in every department of the

company especially in the four areas of management namely; finance, marketing.

human resource and production.

Background

Company Profile

Onesimus is located in 592 Cordillera st., Brgy. Malamig, Mandaluyong

City, Philippines 1150, with contact details such as, telephone number

(+632)533-1166, 533-1110, 533-1153, 717-0661, 717-0600), fax number (533-

1184 & 717-0090) and the official facebook page

(www.facebook.com/onesimusph).
Onesimus, the Philippines’ leader in men’s formal wear, is a brand that

has been innovating men’s formal and office wear since the early

’90s.Established in 1991, Onesimus has been consistent in pursuing its passion

to blend in men’s apparel of the West like suits and shirts, with the unique

heritage apparel of the East, which in the Philippines is known as the “Barong

Tagalog”.

Innovation, especially in its Barong line, has carved an enviable reputation

for Onesimus as the Philippines’ trendsetter in formal and office wear, redefining

the way they are designed and worn.As a result, from its humble beginnings of 3

employees and 2 store locations, Onesimus has grown into a major fashion

brand with over 500 employees and over 130 stores spread across the most

prestigious mall in the country.

Looking beyond its accomplishments and ever-alert to adapt to new

market challenges, Onesimus continues to develop new product lines responsive

to the young generation, and is now being positioned to expand to new territories

through overseas expansion.

History of the Firm

Onesimus, greek name for “useful”.There was once a time in the

Philippine clothing industry when a man had to go out of his way to go to his

favorite tailor shop in order to have a decent suit or a Barong Tagalog made. It
worked just fine way back then when people were fewer, traffic was a breeze,

time was abundant, and made-to-order rates where within every man’s reach.

In the 70’s or 90’s however, the scenario gradually but progressively

changed. Time became such a precious and very limited commodity; vehicular

traffic became daily nightmares; and people who specialized in tailor-made

clothes for men were a rare find that their rates have gone way above means of

ordinary man.

These observations crystallized in the minds of a young married couple in

1991. Armed with a vision to meet this clear need in the RTW market, plus

childhood and teenage experience of helping manage a family-owned tailor shop,

they launched a garments manufacturing and retail company, which was later

registered under the existing laws of the Securities and Exchange Commission.

The company was named after a Biblical character in the New Testament

(from the letter of St. Paul to Philemon). Who was once a runaway, useless slave

but was dramatically transformed by Christ to live a life befitting his beautiful

name- “useful”.

Inspired by the beautiful sound and meaning of this name, Onesimus

Corporation was founded and since then has continuously adhered to the vision

of useful elegance in Filipino men’s Formal Wear.

Innovation, particularly in its Barong line, has made Onesimus stand out

from the racks the very first time its first collection was launched. Dyed and
beaded barongs, geometric and abstract designs, loose and comfortable fit, and

prices that are very reasonable for its quality. These are just some of the

hallmark of Onesimus Suits and Barongs which have made them the talk of the

crowds in weddings, conference, and other formal occasions.

Consequently, even without any advertising budget for many years,

Onesimus has spread out into all major department stores and now has over fifty

retail stores in Metro Manila, Visayas and Mindanao areas. At present, there are

three hundred fifty (350) employees from three(3) it started with in 1991.

With profound thanks to God and faith in Him, plus a firm commitment to

the principles it has been founded on, Onesimus Corporation intends to say and

to continue being positive force in the Philippine apparel industry.

Vision

Onesimus Corporation will shine in the industry as a model of Christian

enterprise that integrates business into the Body of Christ.True to its name

which, in Greek, means “useful”, supply the needsof the church - the Body of

Christ – and of the Philippines society where it also belongs.

Having this foundation, Onesimus Corporation aims to excel in all its

business undertakings, its products, and its services. It manifest financial

prosperity not so much as a goal but a fruit of the conviction for which it stands.
Mission

Onesimus Corporation has been established to be a leading distributor of

ready-to-wear and custom-made apparel and accessories for men with

discriminating taste.This shall be achieved in the following ways:

By retailing clothes and accessories that reflect high standards of quality

in the choice of materials, design, and in craftsmanship; thus giving its client

value for their money;

By carefully studying industry trends and practices in the local and

international retail markets, and developing plans of action that will enable the

organization to adapt to changes and other forces in the market; thus maintaining

a strong foothold in this dynamic, volatile, and highly competitive field.

By listening attentively to what its customers want and need, and working

diligently to deliver total customer satisfaction; thus gaining ever increasing

customer loyalty;

By utilizing efficiently all available resources, including the employment of

innovative technology, as means for the organization to realize it long-term

objectives.

By earning profits and maintaining healthy and robust financial condition at

all times so that other goals and programs of the company may be supported.
By nurturing an organization where work and worship exist in harmony;

where all types of work are respected and performed as expressions of oneself

unto the Creator.

By fostering a people-sensitive organization which encourages self-

discovery and self- enhancement as it believes in the great potential in every

human person.

It acknowledged that the Almighty God is the True Owner of Onesimus

Corporation. All the people in the organization working as a team are valued as

managers and stewards who are duty-bound to abide by His Principles as they

accomplished the mission of the organization.

Core Values

God Centeredness in all our motives and aspirations


Reliability in out behavior
Excellence in our work, products and services.
Accountability in all that we do, create and decide on.
Teamwork & Timeliness in our work relationship

Foresight and Flexibility in our plans and implementation


Open Communication across levels in our organization
Responsiveness to our Customer's needs.

Honesty in our speech and our reporting


Innovativeness in our approach to challenges
Manpower Development is important to us.
Organizational structure

Mr. Eduardo C. Canlas being the President and Chairman of the board.

Their Factory Outlet Head office was currently located in 592 Cordillera Street

Barangay Malamig, Mandaluyong City. Given below is the Organizational

Chart of Onesimus Corporation

Company Policies

Statement of Policy. It is the policy of the Company:

a) To recognize and reward an employee’s performance and

achievement of excellence.

b) To ensure or enforce compliance at all time with the Company’s

standards of job performance and personal behaviour and;


c) To penalize or punish wrongdoing, violation of rules, or the non-

compliance with the Company’s standards of job performance and

personal behaviour.

Onesimus Corporation’s primary concern is customer satisfaction for

profit, and all aspects of its operations must be directed towards that goal.

Discipline is a necessary condition for achieving that gal and for the effective and

efficient performance of the organization. The administration of discipline must be

firm, fair and equitable, and all cases must respect the dignity of the individual

whose offense is being investigated and penalized.

The company’s business concept is inwardly driven by three ideals:

dedication to conscientious work and accountability over one’s work. A

continuing quest for superiority in its products and services, and respect for the

human person and for teams.

Onesimus supports two systems: a social system (people inside

organization, the customers, and the stakeholders) and a technical system

(physical equipment, technical know-how, materials, resources and processes).

Its success in its operations can be achieved through jointly operating and

nourishing these two systems.

The industrial environment where Onesimus Corporation operates is

highly competitive and subject to rapid change in customer taste and preference,

in style, in ways of doing things. Therefore, the organization and its people must
be rapidly flexible and untiring adaptable to the variable requirements of the

market.

Some of the policies that the company has established and implement are:

1. General Recruitment Policy

The company establish and implement a system of recruitment and hiring

designed to tap all possible sources of desired manpower to secure the best

recruits. It will be based on Age Limit (for meritorious reasons but can be waived

by the management), Educational Background, Employment / Character /

Reference Check, Pre – Employment Physical Exams, Job Postingand

Documentation.

2. Personnel Movement Policy

This policy aims to set guidelines in transferring employees from one

position to another belonging to the same job level for a higher job level like

lateral transfer and promotions.

3. Policy on Identification Card

All Onesimusemployees and visitors are required to wear the company

prescribed identification card while inside the company premises.

4. Policy on Timekeeping

All employees in the general payroll are required to record their daily work

attendance on a prescribed timecard.


5. Policy on Overtime, Premium Pay and Holidays

Employees are entitled to overtime compensation, when due to

operational requirements, they are required to work in excess of eight hours

during their regular workday and/or rest day. On the other hand. They will be

entitled to premium pay when they are required to work during their days-off

and/or during company-observed holidays.

6. Policy on Performance Appraisal

A performance appraisal system is established for the systematic

assessment of the employee’s effectiveness in the job and to provide a sound

basis for the employee’s confirmation to the position, rewards, development and

growth in the organization. The objective of performance appraisal is to help

supervisors and managers review the performance of their employees, select

and determine whether employees will be retained prior to the expiration for their

employment contracts.

7. Policy on Wage and Salary Administration

The company will maintain a salary structure that will serve as a guide in

determining how much pay to be given to every employee. The pay must be

commensurate to the value that an employee gives back to the company, by the

way of performance and actual results.


Current Corporate Strategy

Marketing

Onesimus Corporation has made used in billboards and getting talents,

mostly modelsand some celebrities for them to showcase their products in such a

way that their customers feel an affinity towards their products. They also do

sponsorshipfor events. Through this, Onesimus Corporation enhance their

company’s image and visibility; differentiate the company from competitors and

also help develop closer relationships with current and prospective customers.

The company also encourage empowered loyal and dependable barong

contractors to produce their own designs. Create independent sales promotion

mechanics per store. Part of their marketing strategy is to offer wider options as

to material and pricing. Pursuing top 100 corporate clients by tapping sales

agents who are non-employee. They are pursuing and targeting to open stores in

ASEAN regions and develop new concepts stores.

They also attend different events like Onésimus Corporation went to the

most prestigious night of the 65th Miss Universe “Governor’s Ball” held at SMX

Convention Center in Pasay City. The 86 candidates from different countries

allured our business tycoons, celebrities and other well-known people. The

Governor’s Ball filled with glitz and glamour as the 86 candidates gave their

grand walk with elegance and grace. the said event reminded them to achieve

organizational and individual objectives. They are also major sponsors in event,

“Special Collection 2017: Travel in Style” at U.P AngBahayng Alumni. Special


Collection is annual event presented by San Miguel Corporation. It is a workshop

culminating in a fashion show featuring teens with a disability.

Human Resources

Onesimus Corporation has five hundred twenty four (524) employees with

over one hundred twenty four (124) retail stores in Metro Manila, Visayas and

Mindanao areas. Each store has 8 to 15 employees depending on the size of the

stores. As they are in the retail industry, sales persons were able to get special

incentives and commission base on their performance. In fact, some managerial

positions were able get a trip abroad as an incentive last June 2019.

The Human Resources Department (HRD) of Onesimus Corporation

ensures smooth transitioning of functions to be outsourced (legal, change

management). They provide manpower pool in anticipation of additional

personnel (buying/procurement/importation), empower the frontliners to be more

discerning and proactive in disseminating the voice of the customer, equip the

frontliners with superior selling skills.

They also ensures proper handling of change management program on

personnel affected by automation, spearhead the implementation of "whistle

blower" program. Improve selling, customer service and listening skills thru

training. Formulate Rewards and Recognition Program.

Production

Most of Onesimus raw materials are imports from China and some are

from local suppliers from Laguna and Divisoria. The products are being produce

locally and some are for importation. Onesimus Corporation acquire necessary
machines such as pattern making, coat sleeve attachment, waistband machine,

feed-of-the-arm, welt machine, fusing, etc. They also develop dependable

subcontractors that can handle MTO (including artisan craftsmen). In lessening

dependence on China market supply, the company is developing local

subcontractors as alternate supplier of executive and casual shirts.

Also accuracy and timeliness in serving store replenishment to increase

the efficiency of Supply Chain thru shorter lead time. It is also a must to conduct

periodic self p-count of major raw materials and finished goods and conduct

periodic review of Group’s Table of Organization. Onesimus Corporation also

provide training programs for selected team members with potential for

promotion.

Products

The Onesimus Corporation continue to give the newest trend and style

when it comes to clothing. They creates different kind of clothes from formal suit

and barong tagalog to casual, up to the accessories that Men are going to wear.

Onesimus also have its fall winter to spring summer clothing collections. Even

the basic clothes that all Filipino men would love to wear, and never run out of

fashion. With regards to the company’s demographics: All range of men from

ages 2 to 65 years old, class A to upper C, young gentlemen or kids line, young

man or teens to young professionals up to premium or man ages 30 to 65 years

of age can have their own Onesimus merchandise which could be a

contemporary, modern or with traditional designs and accessories. In terms of

sizes, they have regular fit, slim fit, tailored fit, and Asian max fit. And with
regards to the price range, they sell their Barongs from P1,299.75 to P11,999.75,

Coats is around P2,999.75 to P6,999.75, Pants is from P899.75 to P1,599.75.

They also have basic clothes like Shirts or weekend shirts from P599.75 to

P1,599.75. Different kinds and styles of shoes also available with price range of

P898.00 to P3,898.00 and lastly the accessories price is from P198.00 to

P1,198.00. The below are some of the sample products of Onesimus.

Finance

Finance department Conduct cost-benefit analyses on all functions to be

outsourced. Pursuing possibility of outsourcing the ff. functions: payroll

processing and sales capturing and validation. They also implement monitoring

system for expenses and collections on: MTO per store and Per DCUM Client.

They are the main department who process and provides funds related to

company expenses and purchases. They make and provide profitability reports

per product per category for Mancom. They also ensure the timeliness and
accuracy in the processing of payables and completeness of supporting

documents. They validate incentive rewards to all employees.

Ensure period release of Financial Reports for Management Consumption.

Simplify procedures for the immediate closure of Finance-related issues. Review

capitalization policy for fixed assets and Review and update Finance policies and

procedures.

Based on the income statements provided by the company date as of

December 31, 2017, the company has cumulative earning of P30, 006, 635. 00.

Below is the computation:

ONESIMUS CORPORATION

STATEMENTS OF INCOME AND CUMULATIVE EARNING

For the Years Ended December 31

2017 2016

REVENUE 365,566,170 36,758,968

COST OF SALES AND GOODS SOLD 210,305,505 210,802,731

GROSS INCOME 155,260,665 156,787,237

SELLING, GENERAL AND OTHER EXPENSES 144,773,080 146,766,172

INCOME BEFORE INCOME TAX 10,487,585 10,021,065

PROVISION FOR INCOME TAX 3,146,276 3,006,320

NET INCOME FOR THE YEAR 7,341,310 7,014,746

CUMULATIVE EARNINGS, BALANCE BEG. 22,665,325 15,650,580

STOCK DIVIDENDS DECLARED

CUMULATIVE ERANINGS, BALANCE END 30,006,635 22,665,325


CHAPTER II

INDUSTRY AND FIRMS ENVIRONMENT

This chapter focus on the internal and external business environment that

comprises the factors within the Onesimus Corporation so as to determine the

development and forecasts the factors that will influence organizational success

and approach of operations and the company has need to control over these

factors. Through scanning of the external environment, the company is able to

recognize potential opportunities and threats existing outside company

operations. Some of these outside factors are Economic, Sociocultural,

Political/Legal and Technological. An economic factor is where the company

reacts to its changes. Sociocultural includes how buyers or consumers behave.

Political / Legal how changes of government policies will affect the business

spending and behaviour. While in technological factors determine how the

company keep up with innovations and system upgrading .Each of this factor

affects how the business will operate. Internal factors however include the

company’s flow of work, the nature of sales and marketing, the number of

employees and systems being followed within the company.

External Environment

Businesses are also influenced by the environment in which they operate.

The external environment, on the other hand is not controllable. The managers of

a business have no control over business competitors, or changes to law, or

general economic conditions. However the managers of a business or


organisation do have some measure of control as to how the business reacts to

changes in its external environment.

Economic

Economic conditions have a great impact on the Management practices in

an organization. Different economic factors such as GDP growth rate,

unemployment rate, inflation rate, taxation rate, stock market fluctuation and

change in per capita income can really affect the profitability and success of the

organization.

GDP Trends

Philippine economy grows by 5.6% in first quarter of 2019. This is slower

than 6.5% growth in 2018. Among the major industries, services recorded the

fastest growth of 7.0%, followed by Industry with 4.4% and Agriculture, Hunting,

Forestry and Fishing (AHFF) with 0.8%. In terms of Gross Domestic Product

(GDP), services accounted for 58.7% of the total GDP. Industry recorded a share

of 3four. 1% while AHFF comprised 8.1% of the national economy.

Philippines holds an interest rate of 4.5% on its Jun 20 th 2019 meeting.

While inflation rate as of May 2019 is 3.2%. The Gross Domestic Product capita

in the Philippines was recorded at 3022 US dollars in 2018 reaching it’s all time

high. It is equivalent to 24 of the world’s average.


Unemployment Rates

Unemployment rate as of January 2019 was estimated at 5.2% with NCR

(6.4%). ARMM (6.3%) and CALABARZON (6.1%) as the regions with highest

unemployment rates.

With all the economic factors given, Onesimus Corporation, this year have

done cost reconstructing of their items especially those with raw materials

imported from other country. They have hired sub-contractors that gives small

entrepreneurs opportunity to gain, in this way they can help decreasing

employment rate of our country as well. Due to the inflation rates demands of

their products has lessen resulting to decreasing of sales as of 2018.

Increasing Labor Cost

Disposable incomes are growing for a reason: laborers are earning more

money these days. On the whole, the cost of hiring workers is increasing across

all industries. This is caused by not only a growing demand for employees, but

also higher and higher government expectations for minimum wages. As in many

other industries, the effect of increasing labor costs is simple: fewer margins for

the owner of the business, and thus less profit. New minimum wage rates for

agricultural workers, firms in the manufacturing sector with at most 10 workers,

and firms in the retail as well as service sectors with at most 15 workers will earn

at least P500 daily, from the previous P475. Non-agricultural workers,

meanwhile, will soon have a daily minimum wage of P537 from P512. Under

Wage Order No. 22, the P10 cost of living allowance (COLA) will also become
part of the basic pay. Previously, the minimum basic pay ranged from P465 to

P502, with an additional P10 COLA.

Inflation rate

Philippine inflation rose to 3.2 percent in May according the Philippine

Statistics Authority. This is the first time that the inflation rate increased from the

previous month after six months of going lower. However, after suffering through

last year’s steady jump in prices, 2019 is turning out much more favorable. While

they take issue with the target range of a 2 to 4 percent inflation rate offered by

the government, the administration can take some satisfaction that their target is

being achieved. The press and media dutifully and responsibly report the internal

inflation rate numbers. The pundits and other “self-proclaimed” experts prefer to

cast at least in some small measure a political shade to virtually anything to do

with the Philippine economy.

Political and Legal

Philippine Design Competitiveness Act of 2013

It is the declared policy of the State to enhance the competitiveness and

innovation of Philippine products, create market-responsive design services,

while advocating for economic and environmental sustainability. The State shall

also endeavour to promote an economy and society driven by design and

creativity responsive to our fast-changing times and reflective of the Filipino

culture and identity, while concurrently advocating the protection of intellectual

property rights to these ideas and innovations.


Data privacy policy for customers

This Data Privacy Policy (“Policy”) sets out the basis which Onésimus

Corporation (‘we”, “us”, or “our”) may collect, use, disclose or otherwise process

personal data of our customers in accordance with the Data Privacy Act of 2012

(“DPA”). This Policy applies to personal data in the posession or under the

control, including personal data in the possession of organizations which we

have engaged to collect, user, disclose or process personal data for their

purposes.

No contractualization law 2018

Implementing article 106 of the labor code of the Philippines, as amended, to

protect the right to security of tenure of all workers based on social justice in the

1987 Philippine constitution.

Onesimus Corporation is trying their best to abide the rules and regulation

of the government bodies concerning. In fact, they have follow the no contractual

policy mandated by the government.

Technological

Online shopping is a form of electronic commerce which allows consumers

to directly buy goods or services from a seller over the Internet using a web

browser. Consumers find a product of interest by visiting the website of the

retailer directly or by searching among alternative vendors using a shopping

search engine, which displays the same product's availability and pricing at

different e-retailers. As of 2016, customers can shop online using a range of


different computers and devices, including desktop computers, laptops, tablet

computers and smartphones. Online shopping is one of the businesses right now

who really shows growth. With the use of intranet, businesses can advertise their

product, and it will only cost them less rather than doing it on the television. This

is an opportunity on the retail business because people who are not be able to go

to the store and shop, all they need to do is to browse the site and place their

order. That’s how easy to process or purchase product on using an online sites.A

local retailer in the Philippines, Onesimus Official Store is known as a trendsetter

fashion store for men’s formal and office wear. Expanding its reach to more

customers, the seller has now made its men’s clothing range available on one of

the top online stores in the Philippines.

Technological advancement is one of the indication of innovation in the

organization. Employing or upgrading of current Point of Sale (POS) software is

very essential. Majority of commercial food service company’s nowadays make

use of the POS technology in the location where transaction occurs. A “checkout”

refers to POS terminal or more generally to the hardware and software used for

checkouts, the equivalent of an electronic cash register. The POS makes

everything easier for a store/company to audit the track records of its inventory,

which stores won’t need any more to worry regarding lost inventories and

changes in prices, because everything is updated and would be able to change

as long as database is available.


POS – As of this year, Onesimus Corporation has shift to POS in almost of

their stores and using software like SAP ARP that enables accounting and the

management to monitor their stores daily transactions.

On the other hand it is internet is also a part of innovation. Where most of

the companies post their products on their website and make it available online.

The use of the internet is also one of the advancement of most of the global

company’s enjoying today. Through the use of intranet, franchisee from different

countries can easily replenish stocks, or can easily make orders to their mother

company. This is more advantageous in company’s who has global branches.

Filing taxes to BIR is also done online by the company. Hence, payments made

via online banking transactions as well. Communication of the management to its

people in their retail stores has been accessible and easy through Viber app.

The upgrading of technology like the POS is a big help in smooth

operation. It gives a detailed report of day to day sales, sales revenue, most

especially it was a big help in the inventory. Through the POS you can be able to

see the number of clothes sold, including the product specification. Through the

POS, you can also be able to compare what are saleable product from each and

every branch, also what are the available product on this particular store.

The POS can provide you a more accurate, on time report, rather than

doing it manually and it is more prone to mistake. Intranet is another

breakthrough in the retail industry. Through the intranet you can have a private

communication with your mother company. People from mother company can

give their se of instruction through the intranet, and on the same manner, people
from different branches can post their orders, or update them with anything

without the hassle of using the phone or worse case scenario is going to the

mother company or head office physically.

Socio – Cultural

Demographics is the study of a population based on factors such as age,

race and sex, among others. Governments, corporations and non-government

organizations use demographics to learn more about a population's

characteristics for many purposes, including policy development and economic

market research.

Lifestyle Changes

Our country is known for its diverse people, having different dialects,

belief, traditions among other elements. Changes in social trends can impact on

the demand for a firm’s products and the availability and willingness of individuals

to work. The population here has been ageing in which the cost for firms who are

committed to cater all the necessary payments for their employees are living and

staying longer. This matter also has an impact on demand, like demand for

transportation, accommodations and medicines have increased whereas demand

for some stuffs like toys is falling. In the same manner men especially the young

ones are more sophisticated, fashionable and more experimental and attuned to

the latest trends nowadays. With that case, there would be a higher demand for

fast clothing and accessories like Onesimus.


We all know that Filipinos is one of the Asian country who knows to

appreciate fashion and new trends. Onesimus is considered to be one of the best

brand in terms of Men’s clothing.

They have the most number of branches that have opened and most of

them are really showing up some sales. It only shows that Filipino men loves

fashion. They never left out of trend if they speak of the latest style. Most young

Filipino men wanted to look good and presentable every time they go out. From

clothes, shoes, accessories they never ran out of style.

Task Environment

Philippine Retailers Association

As the country’s recognized organization ‘of the retailers and for the

retailers’ it is their goal at the PRA to provide Filipino retailers vital and latest

updates in the industry to help them advance their business strategy. Onésimus

is proud to be recognized as the Most Outstanding Retailer in Fashion Apparel –

Medium Category for two consecutive years by the Philippine Retailers

Association. They are honored to have made such an impact in the industry and

are now committed more than ever to create more innovations, to achieve

operational excellence and to promote exceptional customer service as they

strive to continue to be the brand of choice in Men’s Formal Wear.

International Brand Licensing Fair

Prominently exhibited by CITEM and Joining the PFA (Philippine

Franchise Association) were eleven of the country’s top homegrown brands —


Anemone Swim, Karimadon, Onésimus, Shirt Bar by Onésimus, and Periwinkle

for fashion; Bibingkinitan!, Chef Tony’s, Holy Kettle by Chef Tony, Fruit Magic,

and Goldilocks for food; and Oryspa for personal care solutions. Philippine

Franchise Association described Onésimus as a brand committed to providing

quality formal wear for men and specializes in original, refined, and comfortable-

fitting suits. Also, that the brand is a leading distributor of ready-to-wear and

custom-made apparel and accessories for men with discriminating taste. At least

five Philippine brands are about to clinch franchise deals that will make them

highly visible on the large Middle East consumer market.

Franchise negotiations, largely involving distributorship, have begun

during and after the Philippine participation in the recently-concluded Dubai

International Brand Licensing Fair, according to the Center for International

Trade Expositions and Missions (CITEM), the Philippine Department of Trade

and Industry’s export promotions arm. CITEM brought the brands to the fair in

cooperation with the Philippine Franchise Association (PFA) and showcased

them in an eye-catching BrandPhilippines pavilion, whose design dazzled both

visitors and fellow exhibitors.


Competitors

Kultura Store, Inc. (En Barong Filipino)

Figure 4. Sample Store of Kultura

Kultura Filipino began as a small Filipino handicraft store during the late

1950’s, quickly gaining a reputation for creating world class products sold at

reasonable prices. Over the years it evolved into a lifestyle retail store

showcasing a wide range of furniture, house ware, home decor, wearable

fashion, souvenir items and food. In 2003, Kultura Filipino became an affiliate of

SM Incorporated.

Today, it is the largest Filipino lifestyle retail chain in the country offering a

definitive shopping experience for Philippine culture and crafts. Serving both local

and international markets, the company continues to expand with a total of 26

branches in Luzon, Visayas, and Mindanao. It is located in major mall outlets –

SM Megamall, SM Makati Annex, SM Mall of Asia Mall, SM North EdsaThe

Block, SM Cebu North Wing, and selected department stores.


Kultura Filipino aims to provide local and foreign customers with a high –

quality yet affordable man – made Filipino crafts (furniture, house ware, home

décor, wearable fashion, souvenir items and food) that are environment friendly.

As a company that sells Filipino crafts, we want others to appreciate the Filipino

culture and creativity of the Filipino people by presenting the company’s product.

EN Barong Filipino, Inc. is partnered with Kultura Store, Inc. It is a family-

owned enterprise established in 1961 in Quezon City. For more than 50 years, it

has built a reputation for creating high-quality men's apparel and for

distinguishing itself among makers of the Barong Tagalog. In devoting meticulous

attention and respect to the national attire, Barong Filipino has elevated the

design and creation of the barong to an art form. Moreover, by ensuring

continued supply and distribution of its products through popular outlets, Barong

Filipino has also made its line of formal, office, and casual wear very accessible

to a growing market nationwide. Starting out as a barong supplier to SM

Department Stores, Barong Filipino was invited in 1991 to retail its own products

in two of the chain's major malls – SM Megamall and SM City North Edsa. Today,

Barong Filipino's brand is present in over 30 SM malls throughout the country.

Tradition and innovation – these values take shape in every product that is

designed and crafted under the Barong Filipino brand. While paying homage to

the proud national history that gave birth to such a delicate and distinctive attire,

the company continues to find new expressions that keep the barong fresh,

current, and unique. The barong, though intertwined with the national identity, is
not confined to the past. For Barong Filipino, it is always evolving, keeping pace

with every generation of leaders who wear it with pride.

Products offered:

Kultura offers a wide selection of homespun products:

a. Home: decor, furniture, dining essentials, living room accents, bed and

bath accessories.

b. Souvenirs: delicacies, wines, novelties, t-shirts, jackets, caps and bags.

c. Crafts for a Cause: various products sourced from foundations. Products

under this advocacy line are made by beneficiaries from various

communities.

d. Fashion: Formal Filipiniana: Barong Tagalog, kimona, ternos;

Resort wear: smocking dresses, skirts, tops: jewelry in pearls, semi-

precious stones and silver; trendy fashion accessories, native and formal

bags, hats & footwear.

e. Fashion: Barong Tagalog

1. Pure Pina 6. Monochromatic Jusi

2. Pina Silk 7. PinaJusi

3. Cocoon Silk 8. Natural Jusi

4. Dyed Cocoon Silk 9. Polyester Linen

5. Hand-Dyed&Hand- 10. Ramie

Painted Jusi
Figure 5. Sample Products of Kultura

Price Range for Barong Tagalog:


Kultura offers their classic traditional barong range from P1,999.75 to

P2,999.75. And their high end formal barong starts from P4,999.75 to

P11,999.75.

Michel Andre

Figure 6. Company Logo of Michel Andre


Started out in March of 1987 as a single proprietorship tailoring shop with

Michael Martinez as owner (M2 Needlecraft). The business came up with five (5)

sewing machines with equivalent number of sewers. Made quality pants, woven

long sleeved/short sleeved polo, coats, and Barongs. The company did seasonal

business with Japanese contractor who exported to Asia – Pacific. During the

1990’s, manufactured for brands like Bench, Attitudes, UOMO. After year goes

by in the industry, the management has been decided to expand operations and

became a corporation. They added more than forty (40) machines to achieve the

consumers demand.

M5 Mart Inc, introduced to the market the Michael Andre’ Men’s Apparel

brand, and immediately accepted by SM Malls. Due to high costs of production,

plus the economic and political crisis during the year 2004 the Management has

been forced to retrench its Production Personnel. Former skilled employees

became the company’s subcontractors. But the support departments for Sales

have been added like MIS, Accounting, Merchandising, Logistics/Warehouse,

HRD, Marketing/Creative to keep the business alive and continue to make the

production and operation grow to meet the company’s status in good position.

Currently, Michael Andre is made from only the finest local fibers and is

the product of over a century of clothing evolution. Look your best in the Filipino

man’s classic fashion statement. Michel Andre became competitive in the

market, the company opens a lot of branches and Retail outlets/Boutiques. They

are found in almost all SM Dept. Stores, Landmark, Robinson’s, and other

provincial retail outlets like Gaisano’s, Robertson’s,Crossings, Kcc, Ne Emporia.


The company’s vision is to pursue excellence in all the company’s

endeavors to fulfill the worthy aspirations of society and a testament to GOD’s

greatness. By mastering innovation, aggressively implementing solutions to

improve lives in this ever-changing world. And their Mission is to provide the best

traditional, basic, formal, corporate, and evening wear by ensuring superiority in

merchandise design, workmanship, and quality customer service; Maintaining a

highly-trained, motivated workforce in an empowered working environment;

Fostering mutually beneficial alliances with our business partners; Ensuring a fair

return to our shareholders. Together, we are committed to work as one proactive

team, and with God’s guidance, we shall achieve.

Products offered:

1. Men’s Suits 4. Neckties


2. Men’s Barongs 5. Jackets
3. Linens 6. Shirts

Figure 7. Sample Products of Michel Andre


Price Range:

Michel Andre work wear barong range from P1,799.85 to P2,499.75. And

the formal barong starts from P6,999.75 to P9,999.75. Coats is around

P2,999.75 to P6,999.75, Pants is from P699.75 to P1,99.75. They also have

basic clothes like Shirts and Linens from P599.75 to P1,499.75. And lastly the

accessories like neckties price is from P499.75 to P1,199.75

Market Share Figure of Three Competing Firms

Legend:

80% Kultura
17% Onesimus
3% Michel Andre
Figure 8. Market Share of Onesimus
Internal Environment

The internal environment is very much associated with the human

resource of the business or organisation, and the manner in which people

undertake work in accordance with the mission of the organisation. To some

extent, the internal environment is controllable and changeable through planning

and management processes.

Financial Resources

Income Statement

ONESIMUS CORPORATION

STATEMENTS OF INCOME AND CUMULATIVE EARNING

For the Years Ended December 31

2017 2016

REVENUE 365,566,170 36,758,968

COST OF SALES AND GOODS SOLD 210,305,505 210,802,731

GROSS INCOME 155,260,665 156,787,237

SELLING, GENERAL AND OTHER EXPENSES 144,773,080 146,766,172

INCOME BEFORE INCOME TAX 10,487,585 10,021,065

PROVISION FOR INCOME TAX 3,146,276 3,006,320

NET INCOME FOR THE YEAR 7,341,310 7,014,746

CUMULATIVE EARNINGS, BALANCE BEG. 22,665,325 15,650,580

STOCK DIVIDENDS DECLARED

CUMULATIVE ERANINGS, BALANCE END 30,006,635 22,665,325


Statement of Financial Position

ONESIMUS CORPORATION
STATEMENTS OF FINANCIAL POSITION
As of December 31
Notes 2017 2016
ASSETS
Current Assets
Cash 2,3,5 P 13,653,875 14,819,652
Trade receivable 2,6 14,041,747 16,312,879
Inventories 2,7 207,918,842 215,068,133
Other current assets 1,832,054 1,553,262
Total Current Assets 237,446,518 247,753,926
Non-Current Assets
Property and Equipment 2,3,9 48,317,593 47,514,292
Other non current assets 10 3,921,739 3,325,189
Total Non-Current Assets P 52,239,332 50,819,481

TOTAL ASSETS P 289,685,850 298,593,407

LIABILITIES AND EQUITY


Current Liabilities
Trade and other payable 2,11 P 139,138,116 162,354,452
Income tax payable 12 91,009 73,630
Total Current Liabilities 139,229,215 162,428,082
Non Current Liabilities
Loans Payable 13 44,950,000 38,000,000
Stock Dividends Payable 14 43,500,000 43,500,000
Due to shareholders P 28,000,000 28,000,000
116,450,000 109,500,000
Equity
Share capital 14 2,000,000 2,000,000
Cumulative earnings December 31
Reserves 15 30,500,000 23,000,000
Unappropriated 1,506,635 1,665,326
Total Equity P 340,006,635 26,665,326

TOTAL LIABILITIES AND EQUITY P 289,685,850 298,593,407


Statements of Income and Cumulative Earning

ONESIMUS CORPORATION

STATEMENTS OF INCOME AND CUMULATIVE EARNING

For the Years Ended December 31

Notes 2017 2016

REVENUE 16 P 365,566,170 367,589,968

COST OF SALES AND GOODS SOLD 17,18 210,305,505 210,802,731

GROSS INCOME 155,260,665 156,787,237

SELLING, GENERAL AND OTHER EXPENSES 19 144,773,080 146,766,172

INCOME BEFORE INCOME TAX P 10,487,585 10,021,065

PROVISION FOR INCOME TAX 3,146,276 3,006,320

NET INCOME FOR THE YEAR P 7,341,310 7,014,746

CUMULATIVE EARNINGS, BALANCE BEG. P 22,665,325 15,650,580

STOCK DIVIDENDS DECLARED P

CUMULATIVE EARNINGS, BALANCE END P 30,006,635 22,665,325

ERANING PER SHARE 20 367 351


Statement of Cash Flows

ONESIMUS CORPORATION
STATEMENTS OF CASH FLOWS
For the Years ended December 31
2017 2016

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax 10,487,585 10,021,065


Adjustment for:
Depreciation and amortization 4,403,086 4,640,470

Operating income before working capital changes 14,899,671 14,661,535

Decrease (increase) in:


Receivables 2,271,132 (2,282,804)
Inventories 7,149,291 6,078,302
Other current assets (278,792) 1,290,025
Increase (decrease) in:
Trade and other payables (23,198,867) (7,946,131)

Cash generated from (used for) operations 833,435 11,800,927

Increase ‘decrease in other assets (596,550) 2,167,160


Prior period adjustment
Income tax paid (3,146,276) (3,006,320)

Net cash generated from operating activities (2,909,391) 10,961,767

CASH FLOWS FROM INVESTMENT ACTIVITIES

Acquisition of/Additions to Property and Equipment (5,206,386) (5,935,676)

Net cash provided by (used in) investing activities (5,206,386) (5,935,676)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds of Loan payable 6,950,000 2,450,000

Net cash provided by (used in) financing activities 6,950,000 2,450,000

NET INCREASE (DECREASE) IN CASH (1,165,777) 7,476,091


CASH AT BEGINNING OF THE YEAR 14,819,652 7,343,561
CASH AT END OF YEAR 13,653,875 14,819,652
Statement of Changes in Equity

ONESIMUS CORPORATION
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2017 & 2016
Share Cumulative
Capital earning Reserves
BALANCES DECEMBER 2016 14 P 2,000,000 58,137,309
Authorized share capital 20,000
shares @P100
per value per share P 2,000,000

Prior period adjustment


Net income for the year 7,014,746
BALANCES DECEMBER 2017 2,000,000 65,152,055
Net income for the year (43,500,000)
Stock Dividends (30,500,000) 30,500,000
Reserves
Additional Share Capital 435,000 shares
@ P100.00 par
value per share P 43,500,000 (Stock
43,500,000
Dividends payable)
BALANCES DECEMBER 2017 P 45,500,000 (1,506,636) 30,500,000

Financial Instruments

Financial Risk: Management Policies and Objectives

The company’s principal financial instruments comprise of cash,

receivables and accounts payable. The main purpose of these instruments is to

raise finances for the company’s operations The risks arising from the use of

financial instruments are interest risk, liquidity risk and credit risk. The BOD

reviews and approves the policies for managing each of these risks.
Credit Risk

The company’s credit risk is primarily attribute to its trade and other

receivables: The company has adopted stringent procedure in extending credit

terms to customers and in monitoring its credit risk.

The company manages the level of credit it accepts through

comprehensive credit risk policy setting out assessment and determination of

what constitutes credit risk for the company, setting up exposure limits by each

counter party or group of counter parties, geographical and industry segments,

guidelines on obtaining collateral and guarantees, reporting of credit risk

exposures and breaches to the monitoring authority, monitoring compliance with

credit risk policy and review of credit risk policy for pertinence and changing

environment.

The company does not have any significant concentrations of credit risk

with a single counterparty or group of counterparties, geographical and industry

segments

Liquidity Risk

Liquidity or funding risk is the risk that the entity will encounter difficulty in

raising funds to meet commitments associated with financial instruments.

Liquidity risk may result from either the inability to sell financial assets quickly at

their fair values; or counterparty failing on repayment of contractual obligation; or

inability to generate cash inflows as anticipated.


The company maintains adequate highly liquid assets in the form of cash

and casg equivalents to assure necessary liquidity.

The company manages liquidity through a liquidity risk policy which

determines what constitutes liquidity risk for the company; specific minimum

proportion of funds to meet emergency calls; setting up contingency funding

plans, specify the sources of funding and vents that would trigger the plan;

concentration of funding sources; reporting of liquidity risk exposures and

breaches the monitoring authority; monitoring compliance with liquidity risk policy

and review of liquidity risk policy for pertinence and changing environment.

Market Risk

Market risk is the risk of change in fair value of financial instruments from

fluctuation in foreign exchange rates (rate risks), market rates ( interest rate

risks) and market prices (prices risk).

Fair Value Interest Rate Risk

The fair value inters rate risk is the risk that the value of a financial

instrument will fluctuate because of changes in market interest rates. The

company’s fixed rate investments and receivables in particular are exposed to

such risk.

The company’s market risk policy requires the management of interest risk

by maintaining appropriate mix of fixed and variable rate instruments. The policy

also requires it to manage the maturities of interest bearing financial assets and

interest bearing financial liabilities.


Human Resources

Number of Employees

Onesimus Corporation has currently 535 employees in their company. The

company have over 124 retail stores across the country. Each store has an

employee ranging from 2 to 4 depending on its location and that includes

employee from the boutique and department store display/rack. Over 60

personnel on their main office and over 100 personnel on their production.

Employee Benefits

The company has a policy on performance appraisal. It assess

employees’ effectiveness in the job and a bases for employee’s position

promotion, rewards, development and growth in the company. Each employee is

entitled to a 5 paid days leave. Managerial positions receives incentives like rice

allowance and wellness benefits.

All government mandated benefits like maternity leave, paternity leave,

sss or sickness availment are being followed. 13 th month pay is also given to any

employee who rendered at least one month service in the company.

Sales Incentives

Sales incentives are also being given to store employees whenever they

hit their target quota for the month. They incentives ranges on the items being

sold and the gross sales they make every month.


Marketing Mix

Product

Figure 9. Sample Products of Onesimus Corporation

The Onesimus Corporation continue to give the newest trend and style

when it comes to clothing. They creates different kind of clothes from formal suit

and barong tagalog to casual, up to the accessories that Men are going to wear.

Onesimus also have its fall winter to spring summer clothing collections. Even

the basic clothes that all Filipino men would love to wear, and never run out of

fashion. In terms of sizes, they have regular fit, slim fit, tailored fit, and Asian max

fit.The clothing collection for the Filipino men from Onesimus consists of uniquely

designed and fashionable barongs, suits, shirts, pants, jackets, and blazers. It
also includes a wide variety of men’s accessories such as belts, bowties, hats,

neckties, shoes, and bags making the seller a great one-stop destination for

men. Innovative and creative designs have led this seller to stand out apart from

others and have successfully brought about its vision of useful elegance in

Filipino man’s formal wear

Place

Figure 10. Sample Stores of Onesimus Corporation

The company established their first branch in SM Fairview, due to the

overwhelming response of their customers they immediately opened their second

branch in SM Megamall. Having started the business in 1991, Onesimus

Corporation is currently in the market for 25 years and was able to open more

than one hundred retail stores nationwide. Consequently, even without any

advertising budget for many years, Onesimus has spread out into all major
department stores and now has over one hundred eighteen (118) retail stores in

Metro Manila, Visayas and Mindanao areas.

Retail store design is a branch of marketing and considered part of the

overall brand of the store. Retail store design factors into window displays,

furnishings, lighting, flooring, music and store layout to create a brand or specific

appeal.

Beyond just creating a good-looking store with aesthetically pleasing

displays, Onesimus retail store design is a well-thought-out strategy to set up a

store in a certain way to optimize space and sales. The way a store is set up can

help establish brand identity as well as serve a practical purpose, such as

protecting against shoplifting.

Before establishing an Onesimus retail store, the place and the mall

should meet their standard, the management are really meticulous in checking

the location, it should be wide and must be a strategically located. A

representative from the creative team is designated to check the whole area.

This person needs to ensure that the place meets the qualification and standard

of the company, and if it passes the said qualifications, the construction of the

stores will start to build on that place.

The materials from tiles of the floor up to the ceiling, even the furniture’s

was all being supplied locally and some are from other country. This is to ensure

that the uniformity of the stores are aligned to each other. The management
wanted to have the same ambiance, maintaining the classic and elegance of the

store even the prestige of the items.

Price

With regards to the price range, Onesimus Corporation sell their Barongs

from P1,299.75 to P11,999.75, Coats is around P2,999.75 to P6,999.75, Pants is

from P899.75 to P1,599.75. They also have basic clothes like Shirts or weekend

shirts from P599.75 to P1,599.75. Different kinds and styles of shoes also

available with price range of P898.00 to P3,898.00 and lastly the accessories

price is from P198.00 to P1,198.00.

Promotion

Onesimus Corporation has a regular promotion and sales on their factory

outlet. Variety of items were price reduced as low as 50%. It has a wide selection

as well from Barong, suits and accessories like belts. On the other hand, the

retail outlets usually have a promotion whenever the mall had its sale and a

company initiated 3 days sale. They also have a grand barong sale on which all

there barong lines are part of this promotion.

Specific discounts that are applied each season to specific collections.

The promotions given to each product is depends on its season. These are

determined each season according to requirements.

The period in each season with progressive discounts aimed at selling the

remainder of the collection. Onesimus Corporation sales promotion was at the

end of the season sale, wherein huge discount was given to the customers. That
is from 20% to 50% discounts on selected items. They also have the midyear

sale, wherein they also give customers 30% to 50% discounts on all items. One

thing that is lacking on the company is a promotion. They need to have a pull

strategy in order to attract customers. Maybe they need to have a promotion like

loyalty card. For the customers, for continue buying their product they will be

earning points and a corresponding reward will be given for every accumulated

points. This will lead for a continues purchase of the customer, they will leads to

customer loyalty.

Production

Most of Onesimus raw materials are imports from China and some are

from local suppliers from Laguna and Divisoria. The products are being produce

locally and some are for importation. Onesimus Corporation acquire necessary

machines such as pattern making, coat sleeve attachment, waistband machine,

feed-of-the-arm, welt machine, fusing, etc. They also develop dependable

subcontractors that can handle MTO (including artisan craftsmen).

In lessening dependence on China market supply, the company is

developing local subcontractors as alternate supplier of executive and casual

shirts. Also accuracy and timeliness in serving store replenishment to increase

the efficiency of Supply Chain thru shorter lead time. It is also a must to conduct

periodic self p-count of major raw materials and finished goods and conduct

periodic review of Group’s Table of Organization. Onesimus Corporation also

provide training programs for selected team members with potential for

promotion
Value Chain

A company’s value chain consists of two broad categories. The primary

activities that are foremost in creating value for customers. The activities involve

here are the physical creation of the product and its sale and transfer to the

buyer as well as after sale assistance, and the requisite support activities that

facilitate and enhance the performance of the primary activities by providing

purchased inputs, technology, human resources, and various firm wide-functions.

Supply Chain Management and Logistics

Supply Chain Management is the management of the flow of goods and

services, involves the movement and storage of raw materials, of work-in-

process inventory, and of finished goods from point of origin to point of

consumption.

A supply chain is a network of facilities and distribution options that

performs the functions of procurement of materials, transformation of these

materials into intermediate and finished products, and the distribution of these

finished products to customers. Supply chains exist in both service and

manufacturing organizations, although the complexity of the chain may vary

greatly from industry to industry and firm to firm.


Figure 11. Delivery Process System

There are two basis for delivery in Onesimus, first is for allocation from

MPIC (for new merchandise) and the second is the store order slip (SOS) which

is the request is coming from stores. Aside from this, there are also two kinds of

delivery, the direct delivery (In-house) using the company vehicle (L300 Van) and

the delivery using third party provider which include Air speed and doorway for

the forwarder and the distribution center in SM and Robinson.

Figure 12. Pull out Process System


There are three reasons of pull out process; first is for repair and damage

items, second is for customer’s order and third is for items that are slow moving,

broken sizes and over stock. This process also has a schedule of request to be

sent for encoding; 1st week of the month falls for National Capital Region (North

and South), 2nd week is for South Luzon, 3rd week is for North Luzon and 4th

week is for Visayas and Mindanao area.

If the pull out process is through forwarder, a Sale Associate (SA) should

send to Logistics Supervisor the corresponding data of pull out like reference

number (ITS number), Dimension, Quantity, Declared Value and the total

amount. Then the Logistics Supervisor makes pull out ‘Authorization To Pull Out

(ATP) with the approval of Logistics Manager and send to forwarders two days

before pull out schedule. Forwarder pick up pull out one to two days upon

receiving of ATP. In case of pick up delayed, SA should call the Logistics

Depatment for follow up. Then SA calls the Logistics Office to confirm if pull out

was picked up by a Forwarder for the purpose of validation. There are usual

discrepancies and problems in pull out; Sold out, wrong encoding of RPO, no

hang tag, wrong hang tag against actual items (color, item code and size), over

and under in quantity pulled out, not properly packed and uncaptured items.

Onesimus also has this Stock Keeping Unit (SKU) which refers to a unique

identifier or code that refers to the particular item to monitor inventory and sales

as well.
CHAPTER III

SITUATIONAL ANALYSIS

This chapter is a situational analysis defines potential customers,

evaluates projected growth, assesses competitors and makes a realistic

assessment of the business. It involves targeting the specific objectives in the

business and identifying the factors that support or hinder those objectives. This

assessment often is called a SWOT (strengths, weaknesses, opportunities and

threats) analysis.

Strengths and weaknesses involve an internal evaluation of the company,

while opportunities and threats are derived from an external review. A SWOT

analysis usually is presented as a list of information but can also fit into a matrix

model.

An internal analysis is a thorough review of the strengths and weaknesses

within an organization, usually by evaluating the company's culture and image,

organizational structure, staff, operational efficiency and capacity, brand

awareness and financial resources. Strengths are positive attributes, which can

be tangible or intangible, and are within the control of the organization.

Weaknesses are factors that may hinder the achievement of desired goals.

Opportunities and threats are measured as part of an external analysis.

Both can occur when things happen in the external environment that may require

a change within the business. These external factors may include market trends,
supplier or partner changes, customer flows, increasing competition, new

technology, and economic upturns or downturns.

Opportunities present themselves as attractive factors that can propel or

positively influence the company in some way. Threats are external factors that

could place the organization's goals at risk. These often are classified by their

level of severity and probability of occurrence.

SWOT Analysis

Strengths

S1 Strong brand name locally

Onesimus is proud to be recognized as the Most Outstanding Retailer in

Fashion Apparel – Medium Category for two consecutive years by the Philippines

Retailers Association. They are honored to have made such an impact in the

industry and are now committed more than ever to creating more innovations, to

achieving operational excellence and to promoting exceptional customer service

as they strive to continue to be the brand of choice in Men’s Formal Wear.

S2 Consistently increase profit


Having started the business in 1991, Onesimus Corporation is currently in

the market for 25 years and was able to open more than one hundred retail

stores nationwide and consistently increases its profit. At present, Onesimus

Corporation has a total revenue of P362,731,903.00 operating with one hundred

eighteen retail stores. Onesimus was one of the largest Men’s Fashion Company
today.The cost of starting a business is P3,000,000. This is just a rough estimate,

the merchandise is not yet included.Consequently, even without any advertising

for many years, Onesimus has spread out into all major department stores and

now has over one hundred eighteen (118) retail stores in Metro Manila, Visayas

and Mindanao areas

S3 High standard to services and quality


Onesimus is engage in dealing in retail of consumer products,

merchandise, including garments. They carry all the majority of products that the

man needs in his everyday life. Onesimus men’s clothing line is very reasonably

priced and they are in high quality items for an affordable amount. Compared the

cost to other similar brands, Onesimus is one of the affordable clothing line in the

market. The fashion style is updated. The reasonable price of this particular

men’s clothing line and that of others in the same market is a positive trend for

consumers.

Most of Onesimus raw materials are imports from China and some are

from local suppliers from Laguna and Divisoria. The products are being produce

locally and some are for importation. Onesimus Corporation acquire necessary

machines such as pattern making, coat sleeve attachment, waistband machine,

feed-of-the-arm, welt machine, fusing, etc. They also develop dependable

subcontractors that can handle MTO (including artisan craftsmen). In lessening

dependence on China market supply, the company is developing local

subcontractors as alternate supplier of executive and casual shirts. The quality of


onesimus product is totally better that other competitors and their service are

more likely satisfying their clients.

S4 Excellent and well trained staff

The Human Resources Department (HRD) of Onesimus Corporation ensures

smooth transitioning of functions to be outsourced (legal, change management).

They provide manpower pool in anticipation of additional personnel

(buying/procurement/importation), empower the front liners to be more discerning

and proactive in disseminating the voice of the customer, equip the front liners

with superior selling skills. They also ensures proper handling of change

management program on personnel affected by automation, spearhead the

implementation of “whistle blower" program. Improve selling, customer service

and listening skills thru training. Formulate Rewards and Recognition Program

A performance appraisal system is established for the systematic assessment

of the employee’s effectiveness in the job and to provide a sound basis for the

employee’s confirmation to the position, rewards, development and growth in the

organization. The objective of performance appraisal is to help supervisors and

managers review the performance of their employees, select and determine

whether employees will be retained prior to the expiration for their employment

contracts.

S5 All stores are strategically located

Onesimus chooses where to locate their stores carefully because they are

aiming for a direct communication strategy to promote their products. They have
a unique approach in locating their store here in Philippines. For example in

Mindanao, Onesimus locates their stores in almost every big shopping mall

because it has a high traffic everyday and it is the main place for people to go

shopping.

S6 The long years of existence

Established in 1991, Onesimus has been consistent in pursuing its

passion to blend in men’s apparel of the West like suits and shirts, with the

unique heritage apparel of the East, which in the Philippines is known as the

“Barong Tagalog” and since then has continuously adhered to the vision of useful

elegance in Filipino Men’s Formal Wear. They are one of the best local company

which designs, manufactures and markets men’s clothing and men’s

accessories. Innovation particularly in its Barong line, has made Onesimus stand

out from the racks the very first time its first collection was launched. Dyed and

beaded Barongs, geometric and abstract design, lodge and comfortable fit, and

prices that are very reasonable for its quality. These are just some of the

hallmarks of Suits and Barongs which made then a talk of the crowds in

weddings, conferences and other formal occasions.

Weaknesses

W1 Limited financial resources

Onesimus has it’s own risk factor to allocated financial resources such as,

credit risk; the company does not have any significant concentrations of credit

risk with single counterparty or group of counterparties, geographical and


industry segments, and liquidity risk; the risk that the entity will encounter

difficulty in raising funds to meet commitments associated with financial

instruments and lack of income or cash deficiencies that keep them from

competing at the same level as their competitors.

W2 Limited product selection (only for men)

Onesimus Corporation is known as Philippine’s leader in Men’s Formal

Wear, focuses their design for all types of Men. With the intensity of rivalry

among firms and other rising competitors it becomes tough for Onesimus to

outnumbered its competitors due to the competitor’s wider selection of products -

not only for mens’ apparel and accessories but for other products.

W3 Product selling price are expensive compare to other competing brand


The Onesimus Corporation creates different kind of clothes from formal

suit and barong tagalog to casual, up to the accessories that Men are going to

wear. Onesimus also have its fall winter to spring summer clothing collections.

Even the basic clothes that all Filipino men would love to wear, and never run out

of fashion. With regards to the company’s demographics: All range of men from

ages 2 to 65 years old, class A to upper C, young gentlemen or kids line, young

man or teens to young professionals up to premium or man ages 30 to 65 years

of age can have their own Onesimus merchandise which could be a

contemporary, modern or with traditional designs and accessories. In terms of

sizes, they have regular fit, slim fit, tailored fit, and Asian max fit. And with

regards to the price range, they sell their Barongs from P1,299.75 to P11,999.75,

Coats is around P2,999.75 to P6,999.75, Pants is from P899.75 to P1,599.75.


They also have basic clothes like Shirts or weekend shirts from P599.75 to

P1,599.75. Different kinds and styles of shoes also available with price range of

P898.00 to P3,898.00 and lastly the accessories price is from P198.00 to

P1,198.00. While other competitor like Kultura offers their classic traditional

barong range from P1,999.75 to P2,999.75. And their high end formal barong

starts from P4,999.75 to P11,999.75.

Michel Andre work wear barong range from P1,799.85 to P2,499.75. And

the formal barong starts from P6,999.75 to P9,999.75. Coats is around

P2,999.75 to P6,999.75, Pants is from P699.75 to P1,99.75. They also have

basic clothes like Shirts and Linens from P599.75 to P1,499.75. And lastly the

accessories like neckties price is from P499.75 to P1,199.75.

W4 Competitive market share among to its competitors

Market share tends to be a driving force within the Onesimus corporation that

has a compounding effect. The larger the company, the more efficiently it can

offer products; thus, the more effective that company is in capturing market

share. As it captures more market share, this cycle starts again. With rising

competition in the apparel industry where new brands keep coming, it gets

difficult to maintain their market share. The brand Onesimus faces competition

from brands like Kultura and Michael Andre.


Market Share Figure of Three Competing Firms

Legends:

80% Kultura
17% Onesimus
3% Michel Andre

Show above was the distribution of market share among the three

competitors. Kultura Store, Inc. holds the highest share of 80% due to its wider

selection of products - not only for mens’ apparel and accessories but for other

products and outnumbering Onesimus and Michel Andre when it comes to

number of branches. Onesimus has a total share of 17% while Michel Andre

having only 3%. Onesimus has also diversified by catering all of the man’s

clothing need, they have clothes from kids to adults men, even accessories and

other merchandise. They also has a lot of branches within the country similarly

with Kultura. Michel Andre only has a limited product and few stores that is why it

gives them a lower sales, and a lower market share.


W5 Lack of aggressiveness when it comes to advertisement

Onesimus is lack of marketing such as promotion and advertisement. It is

very rare to see Onesimus logo and advertisement outside the store and in public

area. In fact, Onesimus in different cities also does not have that much of

advertisement. They only depend on the strong brand image that they already

have. This can be a tough weakness if the competitors keep on increasing their

marketing strategy, especially in emerging cities.

W6 Some stores can be overwhelming to the customers to see all the products

The window displays, furnishings, lighting, flooring, music and store layout

that makes a good-looking store with aesthetically pleasing displays is part of

the Onesimus retail store design but this can sometimes overwhelm a customer

to look or to check products inside the store. Sometimes, customers think that all

their products are expensive because of the way they dress their stores. This is

sometimes the reason customers had a hesitation in checking out their

displays/items.

Opportunities

O1 The demand for fast fashion is increasing

The market demand of clothing in the Philippines has continued to rise

over the past years and there is no sign of decline with almost 12 billion U.S

dollars in forecasted volume for 2018. The household consumption expenditure

for clothing and footwear was valued at 77.2 billion Philippine pesos in 2018.
Figure 13: Market demand of Clothing in the Philippines from 2011 to 2018

O2 The employment rate for the country is increasing.

The employment rate in July 2018 was estimated at 94.6 percent. In July

2017, the employment rate was 94.4 percent. At the moment, there are available

jobs listed in the Build, Build, Build portal which is one reason why employment

rate increases. The income of the people who play as a consumer in the market

or customer in the store increases, their purchasing power will also increases.

People have more money to spend on goods and services when they have of

work. High employment strengthens consumers’ purchasing power, the driver of

local economies. In which will higher the demand for goods and services. And

due to the higher demand, prices will rise up and the company’s profit will also

climb higher.
O3 International expansion opportunities

Onesimus is one of the five Philippine brands that about to clinch

franchise deals that will make a highly visible on the large Middle East consumer

market. Philippine Franchise Association described Onésimus as a

brand committed to providing quality formal wear for men and specializes in

original, refined, and comfortable-fitting suits. Also, that the brand is a leading

distributor of ready-to-wear and custom-made apparel and accessories for men

with discriminating taste. Franchise negotiations, largely involving distributorship,

have begun during and after the Philippine participation in the recently-concluded

Dubai International Brand Licensing Fair, according to the Center for

International Trade Expositions and Missions (CITEM), the Philippine

Department of Trade and Industry’s export promotions arm. CITEM brought the

brands to the fair in cooperation with the Philippine Franchise Association (PFA)

and showcased them in an eye-catching BrandPhilippines pavilion, whose design

dazzled both visitors and fellow exhibitors.

O4 Male are becoming fashion conscious and experimental with their clothes

The fashion statement in glamour world changes with the season. Fashion
being a trend setter and unpredictable, the Onesimus Corporation continue to

give the newest trend and style when it comes to clothing. They creates different

kind of clothes from formal suit and barong tagalog to casual, up to the

accessories that Men are going to wear. Onesimus also have its fall winter to

spring summer clothing collections. Even the basic clothes that all Filipino men

would love to wear, and never run out of fashion. Innovative and creative designs

have led this seller to stand out apart from others and have successfully brought

about its vision of useful elegance in Filipino man’s formal wear.

O5 Growth rate of retail industry in the country

The upgrading of technology like the POS is a big help in smooth

operation. It gives a detailed report of day to day sales, sales revenue, most

especially it was a big help in the inventory. Through the POS you can be able to

see the number of clothes sold, including the product specification. Through the

POS, you can also be able to compare what are saleable product from each and

every branch, also what are the available product on this particular store.

The POS can provide you a more accurate, on time report, rather than

doing it manually and it is more prone to mistake. Intranet is another

breakthrough in the retail industry. Through the intranet you can have a private

communication with your mother company. People from mother company can

give their set of instruction through the intranet, and on the same manner, people

from different branches can post their orders, or update them with anything
without the hassle of using the phone or worse case scenario is going to the

mother company or head office physically.

Online shopping is one of the business right now who really shows growth.

With the use of intranet, businesses can advertise their product, and it will only

cost them less rather than doing it on the television. This is an opportunity on the

retail business because people who are not be able to go to the store and shop,

all they need to do is to browse the site and place their order. That’s how easy to

process or purchase product on using an online sites.

O6 The online shoppers are increasing

Online shopping is one of the business right now who really shows growth.

With the use of intranet, businesses can advertise their product, and it will only

cost them less rather than doing it on the television. This is an opportunity on the

retail business because people who are not be able to go to the store and shop,

all they need to do is to browse the site and place their order. That’s how easy to

process or purchase product on using an online sites.

Onesimus has venture on online shopping website to be able to compete

as well as to be able to reach more clients. Shopping made easy with their

website with almost all kinds of their products are being offered as well just like in

their retails shops. This way the customer can shop in their comfort whatever

time available.
Threats

T1 Price War among its competitor

Comparing prices have become easy these days and hence companies

are fighting each other over price. This is not a good sign for the industry as a

whole.

T2 Increasing competition

E-commerce and mobile shopping has allowed various new brands to

enter the market easily, increasing the already intense competition.

T3 Product leakage or imitation of the product


This Data Privacy Policy (“Policy”) sets out the basis which Onésimus

Corporation (‘we”, “us”, or “our”) may collect, use, disclose or otherwise process

personal data of our customers in accordance with the Data Privacy Act of 2012

(“DPA”). This Policy applies to personal data in the posession or under the

control, including personal data in the possession of organizations which we

have engaged to collect, user, disclose or process personal data for their

purposes.

Philippine Design Competitiveness Act of 2013 It is the declared policy of the

State to enhance the competitiveness and innovation of Philippine products,

create market-responsive design services, while advocating for economic and

environmental sustainability. The State shall also endeavour to promote an

economy and society driven by design and creativity responsive to our fast-

changing times and reflective of the Filipino culture and identity, while
concurrently advocating the protection of intellectual property rights to these

ideas and innovations.

Most of the competitors of Onesimus has the same products, the difference

of onesimus to their competitors is the quality of their product and can not be

imitate as it is, because the material they used are imports and have a loyal

suppliers that given the raw materials to onesimus corporation.

T4 Higher number of unemployment in the country

Because of high rate of unemployment, Onesimus Company can’t find

workers at the level of talent needed for their open positions and find itself having

to dip into the less talented work pool, thus reducing the productivity of

employees and creating an output gap where each additional job added does not

create enough productivity to cover their cost. People have less money to spend

on goods and services when they’re out of work. High unemployment weakens

consumers’ purchasing power, the driver of local economies. While lower wages

and high unemployment may make labor more docile and reduce business costs,

they also reduce the demand for business output. Thus, while costs may fall,

profits don’t necessarily rise because sales don’t increase since potential

consumers have no money to spend due to low wages and high unemployment.
Philippines Unemployment Rate

T5 Additional product selection sold by the competitors

One of the biggest threats because of new affordable products from

different stores such as Kultura Store, Inc. and Michel Andre may harm

Onesimus in terms of consumers loyalty. There is a risk of Onesimus products

being copied, either by their competitor (the designs) or by irresponsible people

that practice counterfeiting. However, since Onesimus is targeting the middle-

upper class, therefore, it is not of concern .Moreover, Onesimus consumers are

popularly known as loyal consumers to the brand.

T6 Numerous number of retailers having the same level

Just like any other industry, the world of retail has been greatly impacted

by technology today. Most retail business today run their game in terms of

levelling up the quality of their products and services, as well as their business

operations. Numerous number of retailers are having the same level of quality

products that is why customers opted for other products that at the same time

provides same quality as the Onesimus products with lower prices.


TOWS Matrix Table

Strengths (S) Weaknesses (W)

S1 Strong brand name locally W1 Limited financial resources


S2 Consistently increase profit W2 Limited product selection (only for

Internal S3 High standard to service and men)

Factors quality W3 Product selling price are


S4 Excellent and well trained staff expensive compare to other
S5 All stores are strategically located competing brand
S6 The long years of existence W4 Competitive market share among
External to its competitors
Factors W5 Lack of aggressiveness when it
comes to advertisement
W6 Some stores can be
overwhelming to the customers to
see all products.
Opportunities (O) SO Strategies WO Strategies

O1 The demand for fast fashion is S6O3 Affiliate with potential W1O3 Provide enough material for
increasing stakeholders that will provide potential stakeholders
O2 The employment rate for the investment in building new business
country is increasing overseas. W5O6 Partner with online shopping
O3 International expansion S4O2 Gain more trainings that related apps (i.e. lazada, shoppe and etc.) to
opportunities to people’s professional development include the availability of the
O4 Male are becoming fashion and expose employee’s to new products in the market.
conscious and experimental with area/different role for new skill set.
their clothes W4O4 Join/attend a convention and
O5 Growth rate of retail industry in S2O1 Promote fashion-related gathering together with the same
the country activities in the market by creating an service like for new learnings.
O6 The online shoppers are event to showcase fashion style on
increasing ramp modelling.
Threats (T) ST Strategies WT Strategies

T1 Price war among competitors S5T6 Make a strong in-store visuals W3T1 Promote discount on the
T2 Increasing rivalry among selected items that gives special
competitors S1T3 Legally protect the idea of the offers and pricing deals
T3 Product leakage or imitation of the product or in the business that build
product brand loyalty W1T2 Join venture with other clothing
T4 Higher number of unemployment brand company
in the country S2T5 Create alternative variety of
T5 Additional product selection sold product line and innovate some W1T6 Tie up with potential
by the competitors clothing style that can compete to stakeholders for investment
T6 Numerous number of retailers other competitors and get some of
having the same level their market share
CHAPTER IV
ALTERNATIVE COURSES OF ACTION

This chapter will discuss the alternative strategies based on TOWS

matrix table. Possible strategies that Onesimus develops to set a direction, for

which human and material resources will be applied, for a greater chance of

achieving selected goals.

The advantages and disadvantages of these possible strategies are also

be discuss. Advantages of each strategies will define if this has a relevant

benefits to the development of the company which is Onesimus, while the

disadvantages of each strategies will define the possible unfavorable

circumstances or condition that reduces the chances of success to achieve the

goals.

Alternative Course of Action #1

S6O3 Affiliate with potential stakeholders that will provide investment in building

new business overseas.

Advantage:

Doing business overseas can Reach new customers; the available pool of

prospects will expand dramatically, and may even have an enthusiasm for the

products and services that outmatches the customers, Spreading business risk;

the more countries in which Onesimus have a presence, the more the ups and
downs of business fortune will become smoothed out and easier to manage,

Accessing new talent; expanding to an international location could give access to

talented, invaluable new employees and business partners who could take

enterprise to the next level, Amplifying the brand: expanding the business out

from its home country will have the effect of increasing the visibility and therefore

brand equity of the name, logo and culture, and Increased immunity to trend;

having a presence in more than one country can help Onesimus to ride out the

winds of trends, fashions and fads – a product or service that has become dated

in one location may still be going strong in another, buying the time to rethink

their approach.

Disadvantage:

Expanding the business overseas will encounter some circumstances

such as, Foreign rules and regulations; international business expansion

certainly isn’t short on confusing paperwork, as every country has its own tax and

employment laws as well as business registration and trademark considerations

and papers that must be filed in a foreign language, Handling logistics; an

unavoidable consequence of any business expansion is that many logistical

considerations will quickly become more complicated with questions about how

to efficiently handle communication and organize shipping of physical good

between sites, of course, shipping from one country to another can take a long

time and another consideration is that not every country has the same resources

and infrastructure, and it may be best not to make any assumptions about the

things they need to operate in the new country, Speaking the language; 195
countries don’t speak English as their primary language, but if expanding to one

of the many nations that speaks it as a secondary language they will need to get

to grips with the local tongue if they intend to communicate properly with their

new customers, Coordinating time zones; another consequence of expanding

internationally is that they can introduce a time zone disconnect between your

sites, if each site has to wait until the following morning for a reply to an important

email, everything slows to crawl, Monitoring currency fluctuations; the value of

home currency relative to the target location at any given moment can have

significance for the success of the business, and Gathering market research;

they may find it necessary to rebrand their company or rethink their products for

best results. This could potentially involve expensive market research to discover

what the locals in the new country respond to best and to understand the needs

of a completely different culture.

Alternative Course of Action #2

S2T5 Create alternative variety of product line and innovate some clothing style

that can compete to other competitors and get some of their market share.

Advantage

It can be Seizing opportunities; as consumer tastes and interests evolve, a

product development strategy can help Onesimus leverage opoortunities to

market to these new preferences which put the company in the position of

potentially sparking a fad or riding the wave of one that has already been set in
motion, Providing opportunities; the business will have an easier time attracting

and keeping talent while building a reputation as an operation where creative

individuals have the space to innovate, and building a strong and vital team not

only puts in a strong position to develop and introduce exciting new products, it

also gives you personnel who can approach day to day challenges with fresh

eyes, and Being newsworthy; media coverage garners more attention for the

business than advertising pesos can buy. A strong product development strategy

and can introduce new offerings that people want to hear about, reporters and

bloggers will be eager to help spread the world.

Disadvantage

It can be Riskiness; it’s safer to stick with something that you and your

customers already known than to venture into untested territory which is new

products come with a world of uncertainly, from ironing out familiar production

processes to introducing customers to offerings that they may or may not want,

Extra cost; a product maker and development strategy can be expensive,

especially if Onesimus are thorough and invest in processes such as market

research and advertising, Evolving market; although new product development

is a proactive response to a continually changing landscape of customer tastes,

those same tastes will continue to evolve even as they’re developing new

product, and Competition; at the same time the business is scrambling to come

up with the next exciting product that your customer will embrace, your

competition is also working hard to solve the same problems.


Alternative course of action #3

W1T2: Joint ventures with other clothing brand company

Advantage

It can help the business grow faster, increase productivity and generate

greater profits. Benefits of joint ventures include: access to new markets and

distribution networks, increased capacity, sharing of risks and cost (i.e. liability)

with a partner and access to greater resources, including specialised staff,

technology and finance. Another advantage of a joint venture is its flexibility, it

can have a limited lifespan and only cover part of what you do, thus limiting the

commitment for both parties and the business’ exposure.

Disadvantage

Partnering with another business can be complex. It can be significant ,

especially if they form relationship with a business whose abilities or resources

don’t match or complement their business such as, Vague objectives; the

objectives of a joint venture are not 100 percent clear and rarely communicated

clearly to all people involved, Great imbalance; because different companies are

working together, there is a great imbalance of expertise, assets, and investment,

which this can have a negative impact on the effectiveness of the joint venture,

and Clash of cultures; a clash cultures and management styles may result in

poor co-operation and integration. People with different beliefs, tastes, and

preferences can get in the way big time if left unchecked


CHAPTER 5

RECOMMENDATION

Onesimus has been consistent in pursuing its passion to blend in one

men’s shop the staple men’s apparel. Looking beyond its accomplishments and

ever-alert to adapt to new market challenges, Onesimus continues to develop

new product lines responsive to the young generation and we highly recommend

alternative course #2 which is creating alternative variety of product line and

innovate some clothing style that can compete to other competitors and get some

of their market share. Expanding a product line is an important growth strategy

for Onesimus corporation that want to increase revenue or market share.

Product-line expansion can take a number of forms, including new versions of an

existing product, upgrades to existing products or completely new products. By

introducing products that meet changing customer needs can be an important

driver of product-line expansion. Encouraging feedback through surveys or

monitoring customer comments on social networks provides valuable insight into

customers’ needs and preferences. And also expanding a product line can help

to increase customer loyalty. Adding new products or variants of existing

products enables companies to sell more to existing customers, without the effort

and cost of acquiring new customers. Product expansion requires intensive

planning for the company to ensure that the expected returns outweigh the costs

and risks involved. Onesimus goals are likely to include an expanded customer

base, increased revenue and higher profits. The resources that go into product
expansion include human resources, physical resources such as raw materials

and manufacturing facilities, intangible resources such as brand names and

goodwill, and money (or access to capital) to fund the process.

By creating the next product in a company’s product line, a design team

goes through product development process steps. Starting with a product idea,

the team moves through several stages to generate all the details and

documents needed to get the product built. A new product development process

goes through the same steps, however, as this product has not been developed

by the team before, new risks and uncertainties are introduced and often

additional information is documented and shared with manufacturing. The flow of

typical product development process in apparel industry is provided in figure, this

remains common for all categories of product development. In apparel industry,

once, the market potential, customer requirements like, colour, silhouette, fabric

and design aspects are evaluated by the fashion forecasting process, the

conceptual design is developed by the designer in paper as a 2D form. Once the

designs are finalised, the designers and merchandiser will sit together to finalise

the specifications and technical aspects of the garment. Here, they will use their

knowledge from their previous experience with their market and product.
CHAPTER 6

PLAN OF ACTION

A plan of action is an way to make sure the company’s vision is made

concrete. It describe the way researchers will use its strategies to meet its

objective. An action plan consists of a number of action steps or changes to be

brought about the organization or company.

Objectives Programs/Plans Person Responsible Timeframe


Promote some product developer to
Last quarter of
create new product line and innovate
the year
To assigned new product some clothing style Human Resource
developer Department
Orient and train the new assigned First quarter of
product developer the year

Hire someone who is capable of Last quarter of


To hire new staff for doing marketing and advertising skills the year
Human Resource
Marketing and Research
Department
Department First quarter of
Orient and train the new hire staff
the year

Hire someone who is capable of


Last quarter of
doing an online marketing and
To hire new staff the year
advertising management skills Human Resource
responsible for Company
Department
Website Management
First quarter of
Orient and train the new hire staff
the year

Company President,
Create an advertisement on national
Marketing Dept, Finance Every six months
television
Dept

Company President,
Make some celebrity sponsorship Marketing Dept, Finance Continuous
Dept
To increase its market
share
IT Dept, Creative and
Update and maintain the store
Design Dept, Marketing Continuous
website for online business
Dept, Sales Dept

Company President,
Additional Sale promotion and
Marketing Dept, Finance Continuous
customer incentives
Dept

To increase the capital Deal with mall or establishment


Company President,
by seeking for additional owners, business minded
Marketing Dept, Finance 1 to 3 years
investors or business professionals who are interested in
Dept
partners the products and merchandise
The plan of actions that listed above for Onesimus Corporation will help to

outline to outline the different programs and step by step action plans that will be

undertaken to progress the implementation of the strategic plan. The action plan

has been classified by strategic programs and by departments. In this part also

shows the specific milestone and expected output, timetable, person or units

responsible and resource requirements in order to achieve goals of the said

strategies.

Having an additional employees for Sales Department and Marketing and

Research Department should be taken care of by the Human Resource

Department since they are the unit who are responsible in recruitment and

training programs. They should hire the people who will fit on the said positions.

Hiring should be on the last quarter of the year in preparation for upcoming year.

This will be immediately followed by corresponding training and orientation once

the new additional employees will be hired.

And to increase the company’s market share, there are many different

ways and proposed program have been given in order to achieve this. The

Marketing and Advertising Department, Creative and Deign Department, Finance

Department, Sales Department together with the approval of the Company

President, Onesimus can really achieve all the listed programs above. Like the

media marketing advertisements which is the most effective means of

advertisement because of its capability to reach the wider range of people.

Having an additional sale promotion and customer incentives can also help the

company to boost and increase its market share and profit.


For the benefit of the additional distribution channel, this will give another

income to the company. Establishing new stores that will cater the unsold season

collections leftover clothes. The HR Department, Sales Department, Finance

Department with the approval of Company President this will take around one to

three years in materializing this proposed program.

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