Dwadaswdaws
Dwadaswdaws
Presented to the’
College of Business Administration and Accountancy
“ONESIMUS CORPORATION”
592 Cordillera st., Brgy. Malamig, Mandaluyong City, Philippines 1150
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
Background
Company Profile
City, Philippines 1150, with contact details such as, telephone number
(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
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”.
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
to the young generation, and is now being positioned to expand to new territories
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.
changed. Time became such a precious and very limited commodity; vehicular
clothes for men were a rare find that their rates have gone way above means of
ordinary man.
1991. Armed with a vision to meet this clear need in the RTW market, plus
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”.
Corporation was founded and since then has continuously adhered to the vision
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
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
Vision
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
prosperity not so much as a goal but a fruit of the conviction for which it stands.
Mission
in the choice of materials, design, and in craftsmanship; thus giving its client
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
By listening attentively to what its customers want and need, and working
customer loyalty;
objectives.
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
human person.
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
Core Values
Mr. Eduardo C. Canlas being the President and Chairman of the board.
Their Factory Outlet Head office was currently located in 592 Cordillera Street
Company Policies
achievement of excellence.
personal behaviour.
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
firm, fair and equitable, and all cases must respect the dignity of the individual
continuing quest for superiority in its products and services, and respect for the
Its success in its operations can be achieved through jointly operating and
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:
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
Documentation.
position to another belonging to the same job level for a higher job level like
4. Policy on Timekeeping
All employees in the general payroll are required to record their daily work
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
basis for the employee’s confirmation to the position, rewards, development and
and determine whether employees will be retained prior to the expiration for their
employment contracts.
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
Marketing
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
company’s image and visibility; differentiate the company from competitors and
also help develop closer relationships with current and prospective customers.
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
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
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,
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
positions were able get a trip abroad as an incentive last June 2019.
discerning and proactive in disseminating the voice of the customer, equip the
blower" program. Improve selling, customer service and listening skills thru
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,
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
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
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,
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
Finance
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
capitalization policy for fixed assets and Review and update Finance policies and
procedures.
December 31, 2017, the company has cumulative earning of P30, 006, 635. 00.
ONESIMUS CORPORATION
2017 2016
This chapter focus on the internal and external business environment that
development and forecasts the factors that will influence organizational success
and approach of operations and the company has need to control over these
Political / Legal how changes of government policies will affect the business
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
External Environment
The external environment, on the other hand is not controllable. The managers of
Economic
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
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
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
(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
employment rate of our country as well. Due to the inflation rates demands of
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
and firms in the retail as well as service sectors with at most 15 workers will earn
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
Inflation rate
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
while advocating for economic and environmental sustainability. The State shall
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
have engaged to collect, user, disclose or process personal data for their
purposes.
protect the right to security of tenure of all workers based on social justice in the
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
Technological
to directly buy goods or services from a seller over the Internet using a web
search engine, which displays the same product's availability and pricing at
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
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
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
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
their stores and using software like SAP ARP that enables accounting and the
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
Filing taxes to BIR is also done online by the company. Hence, payments made
people in their retail stores has been accessible and easy through Viber app.
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
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
Socio – Cultural
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
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
appreciate fashion and new trends. Onesimus is considered to be one of the best
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
Task Environment
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
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
for fashion; Bibingkinitan!, Chef Tony’s, Holy Kettle by Chef Tony, Fruit Magic,
and Goldilocks for food; and Oryspa for personal care solutions. Philippine
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
and Industry’s export promotions arm. CITEM brought the brands to the fair in
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
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
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.
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
attention and respect to the national attire, Barong Filipino has elevated the
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
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,
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
Products offered:
a. Home: decor, furniture, dining essentials, living room accents, bed and
bath accessories.
communities.
precious stones and silver; trendy fashion accessories, native and formal
Painted Jusi
Figure 5. Sample Products of Kultura
P2,999.75. And their high end formal barong starts from P4,999.75 to
P11,999.75.
Michel Andre
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
plus the economic and political crisis during the year 2004 the Management has
became the company’s subcontractors. But the support departments for Sales
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
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
improve lives in this ever-changing world. And their Mission is to provide the best
Fostering mutually beneficial alliances with our business partners; Ensuring a fair
Products offered:
Michel Andre work wear barong range from P1,799.85 to P2,499.75. And
basic clothes like Shirts and Linens from P599.75 to P1,499.75. And lastly the
Legend:
80% Kultura
17% Onesimus
3% Michel Andre
Figure 8. Market Share of Onesimus
Internal Environment
Financial Resources
Income Statement
ONESIMUS CORPORATION
2017 2016
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
ONESIMUS CORPORATION
ONESIMUS CORPORATION
STATEMENTS OF CASH FLOWS
For the Years ended December 31
2017 2016
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
Financial Instruments
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
what constitutes credit risk for the company, setting up exposure limits by each
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
segments
Liquidity Risk
Liquidity or funding risk is the risk that the entity will encounter difficulty in
Liquidity risk may result from either the inability to sell financial assets quickly at
determines what constitutes liquidity risk for the company; specific minimum
plans, specify the sources of funding and vents that would trigger the plan;
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
The fair value inters rate risk is the risk that the value of a financial
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
Number of Employees
company have over 124 retail stores across the country. Each store has an
personnel on their main office and over 100 personnel on their production.
Employee Benefits
entitled to a 5 paid days leave. Managerial positions receives incentives like rice
sss or sickness availment are being followed. 13 th month pay is also given to any
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
Product
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
Place
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
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.
store in a certain way to optimize space and sales. The way a store is set up can
Before establishing an Onesimus retail store, the place and the mall
should meet their standard, the management are really meticulous in checking
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
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
Price
With regards to the price range, Onesimus Corporation sell their Barongs
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
Promotion
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
The promotions given to each product is depends on its season. These are
The period in each season with progressive discounts aimed at selling 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
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
provide training programs for selected team members with potential for
promotion
Value Chain
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
consumption.
materials into intermediate and finished products, and the distribution of these
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
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
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
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
business and identifying the factors that support or hinder those objectives. This
threats) analysis.
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.
awareness and financial resources. Strengths are positive attributes, which can
Weaknesses are factors that may hinder the achievement of desired goals.
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
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
SWOT Analysis
Strengths
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
the market for 25 years and was able to open more than one hundred retail
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,
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
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
and proactive in disseminating the voice of the customer, equip the front liners
with superior selling skills. They also ensures proper handling of change
and listening skills thru training. Formulate Rewards and Recognition Program
of the employee’s effectiveness in the job and to provide a sound basis for the
whether employees will be retained prior to the expiration for their employment
contracts.
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.
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
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
Weaknesses
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
instruments and lack of income or cash deficiencies that keep them from
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
not only for mens’ apparel and accessories but for other products.
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
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,
P1,599.75. Different kinds and styles of shoes also available with price range of
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
Michel Andre work wear barong range from P1,799.85 to P2,499.75. And
basic clothes like Shirts and Linens from P599.75 to P1,499.75. And lastly the
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
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
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
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
W6 Some stores can be overwhelming to the customers to see all the products
The window displays, furnishings, lighting, flooring, music and store layout
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
displays/items.
Opportunities
over the past years and there is no sign of decline with almost 12 billion U.S
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
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
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
franchise deals that will make a highly visible on the large Middle East consumer
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
have begun during and after the Philippine participation in the recently-concluded
Department of Trade and Industry’s export promotions arm. CITEM brought the
brands to the fair in cooperation with the Philippine Franchise Association (PFA)
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
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
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
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
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
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
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
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
have engaged to collect, user, disclose or process personal data for their
purposes.
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
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
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
different stores such as Kultura Store, Inc. and Michel Andre may harm
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
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
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
goals.
S6O3 Affiliate with potential stakeholders that will provide investment in building
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,
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:
certainly isn’t short on confusing paperwork, as every country has its own tax and
considerations will quickly become more complicated with questions about how
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
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
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
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
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
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
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,
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
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)
can have a limited lifespan and only cover part of what you do, thus limiting the
Disadvantage
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
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
RECOMMENDATION
men’s shop the staple men’s apparel. Looking beyond its accomplishments and
new product lines responsive to the young generation and we highly recommend
innovate some clothing style that can compete to other competitors and get some
customers’ needs and preferences. And also expanding a product line can help
products enables companies to sell more to existing customers, without the effort
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
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
once, the market potential, customer requirements like, colour, silhouette, fabric
and design aspects are evaluated by the fashion forecasting process, 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
concrete. It describe the way researchers will use its strategies to meet its
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
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
strategies.
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.
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
President, Onesimus can really achieve all the listed programs above. Like the
Having an additional sale promotion and customer incentives can also help the
income to the company. Establishing new stores that will cater the unsold season
Department with the approval of Company President this will take around one to