Question

1. Write a proposal addressing the concern in the given situation. Do note that you are already in the situation. You are not allowed to make precautionary measure before the situation happens.  

1. Explain as to why you come up with your answers. It is best that you provide basis as your support.

Situation 1 – You are part of the board of directors of H&M based in the Philippines. Revenue is dropping in the first quarter of the year due to high production costs.

Your task is to come up with a solution to lower the cost of production while simultaneously maintaining the same price point and expanding other markets all over the country.

You may want to take into consideration the following themes:

1. Branch location B) Worker compensation C) Consumer location

Situation 2 – You are part of the board of directors of Jollibee in the Philippines. You are under pressure from the head office, as the price of raw materials is rising, and they plan on opening more branches abroad (following Italy).

Your task is to come up with a solution to lower the cost of production while simultaneously maintaining your price point and providing manpower in all branches.

You may want to take into consideration the following themes:

1. Branch location B) Worker compensation C) Consumer location

Answer 1

Answer :

Suggested Solutions for Both situation 1 & Situation 2 :

1. Exit from Higher rented Mall locations to Medium-sized locations to higher footfall upmarket streets.

2. Franchise model to reduce cost.

3. Local tase must be introduced in products for increased sales

4. E-commerce presence with both Mobile and website stores.

5. Compensation of workers must be based on an Incentive-based system.

6. Search for more local suppliers for raw material.

7. Sub brands must be launched along with flagship brands.

8. Reduction in advertising cost by the focus on social media ( Instagram, Facebook )

9. Endorsement must shift highly paid Movie stars, sportsmen, singers to lower-paid social media influencers.