View Point: Management Consultant Time Frame: January 1993 Statement of the Problem: The Les Miz Shoes

was dealing with low sales, debt burden, marketing and operational problem. What strategy will be used to increase sales and improve the companys business performance? Objectives: To come up with a strategy that will help the company to increase their sales and improve the companys business performance. Areas of Consideration: A. External Environment: Opportunities: Threats: Political or Legal: Higher interest rate cause by the instability of the political environment. Economic Condition: Dollar fluctuations. Comments:

Leads to unstable importation cost.

Macro Technology: Machineries and Equipment.

Supplier: Materials are 100% imported.

Supplier: Materials are 100% imported.

Micro

Les Miz Shoes has lots of machinery and equipment to use for production. Both of them are opportunity to the company because of the thinking of the Filipinos that anything imported is tons better than local products. (colonial mentality) and it is also a threat because of high cost of the materials needed causes the companys product cost to increase and results to lower sales.

Marketing Intermediaries: Rustoms set its own SRP (lower price).

Marketing Intermediaries: Rustoms set its own SRP (lower price).

Marketing Intermediaries: Rustoms has lot of subcontractors.

Opportunity because lower price shoes does excellent performance in terms of sales. Yet it is also a threat because it is risky and did not leave Les Miz with much profit. Since rustoms has lots of subcontractors who are filling their orders, it helped the company to achieve higher sales.

Competitors: top of the line Italian dress shoes.

B. Internal Environment: Strengths: Les Miz Vission by Mr. Ducot. Product of Les Miz shoes Weaknesses: Comments:

Price of Les Miz shoes

Internal

Organization structure of the Company: Companys Leader. Marketing: Advertise and promotion

They produced a high quality product. High price of their product results there sales to decrease. Lack of experience in handling the business. They are not considering promotions and advertising strategies in increasing their sales. They have high-tech machineries and equipments for the companys production. Les Miz shoes has money to support and continue their business in spite of the losses they occurred in the past years.

Production: The Machine and Equipments they are using. Finance: Companys money.

Alternative Courses of Action: PROS 1. They could establish their shoes in the local market. 1. They will have additional market to cater. 1. Will help the business to grow. 2. It will help the business to have well planned business strategies that focuses on the new vision of the company. CONS

Concentration on their lowpriced line of shoes

Diversification (Turnaround Strategy) Change their vision and product positioning.

1. Risky because of the changes.

Recommendation: Diversification. Les Miz Shoes should also provide mens shoes and start to consider advertising and promotion strategies. Action Plan: ACTIVITIES Create Plan and analyze the situations. Reduce the skilled workers Do some advertisement and promotions for the new and old products. Evaluate the performance of the products that were advertised and promoted. Start creating plans for business expansions. TIME CONTEXT January 1993 April 1993 May 1993 Production and Marketing Department. President PERSON RESPONSIBLE Management Consultant Human Resources Manager Advertising Manager

December 1993 June 1994

Contingency: As a Contingency plan, it is recommended for the company to start from the top again by targeting the domestic market first and should focus on establishing their companys name in our country then make it stable before entering and expanding their business in the European market.