Les Miz Shoes Case Study
LES MIZ SHOES
Case Study
I. PROBLEM
The capacity of Les Miz Shoes to exist as a corporate entity
II. ANALYSIS
1. Management
Ownership is not open for others outside the family, thus limiting the managing power to one person.
2. Exportation
Mr. Ducot’s attempt to establish market in Europe was unsuccessful.
3. Strategy
Mr. Ducot wanted an expansion of the company. He will use earnings from merchandising of Les Miz shoes in Philippines.
4. Local Sales
Sales of Les Miz Shoes are low. It cannot sustain regular operations.
5. Machinery
The German equipment bought out of loans was not been used in operations.
6. Importation
Almost all of raw materials used for shoe manufacturing are imported, and are costly.
7. Les Miz Shoes is the only company in Philippines that pursues exportation of shoe products.
8. Debt and equity
Les Miz Shoes has no more long-term indebtedness. Its capital has increased, and its financial problem was minimized.
9. Vision for the company
Vision of Mr. Ducot is unlikely to happen due to struggles of Mrs. Espandaña.
III. CONCLUSION
We therefore conclude that Les Miz Shoes is unable to continually operate as a corporate entity.
IV. RECOMMENDATIONS
1. Les Miz should change its mission and strategy from exporting into local selling.
2. Manufacture own raw materials for shoe manufacturing.
3. Hire / train people to operate the stagnant machinery.
4. Improve sales in local market by developing new strategies:
Sell only products that are most profitable.
Manufacture shoes that are suitable for Filipino market in terms of price, style and trends.
Advertise through newspapers, banners, brochures, etc.
5. Les Miz may acquire loans to support its operations.
6. Utilize the foreclosed properties that were redeemed.
V. ALTERNATIVES
1. Change the form of ownership from sole proprietorship into partnership or corporation.
2. Sell the machinery and use the proceeds for financing manpower.
3. Sell a portion of Les Miz Shoes’ net
Case Study
I. PROBLEM
The capacity of Les Miz Shoes to exist as a corporate entity
II. ANALYSIS
1. Management
Ownership is not open for others outside the family, thus limiting the managing power to one person.
2. Exportation
Mr. Ducot’s attempt to establish market in Europe was unsuccessful.
3. Strategy
Mr. Ducot wanted an expansion of the company. He will use earnings from merchandising of Les Miz shoes in Philippines.
4. Local Sales
Sales of Les Miz Shoes are low. It cannot sustain regular operations.
5. Machinery
The German equipment bought out of loans was not been used in operations.
6. Importation
Almost all of raw materials used for shoe manufacturing are imported, and are costly.
7. Les Miz Shoes is the only company in Philippines that pursues exportation of shoe products.
8. Debt and equity
Les Miz Shoes has no more long-term indebtedness. Its capital has increased, and its financial problem was minimized.
9. Vision for the company
Vision of Mr. Ducot is unlikely to happen due to struggles of Mrs. Espandaña.
III. CONCLUSION
We therefore conclude that Les Miz Shoes is unable to continually operate as a corporate entity.
IV. RECOMMENDATIONS
1. Les Miz should change its mission and strategy from exporting into local selling.
2. Manufacture own raw materials for shoe manufacturing.
3. Hire / train people to operate the stagnant machinery.
4. Improve sales in local market by developing new strategies:
Sell only products that are most profitable.
Manufacture shoes that are suitable for Filipino market in terms of price, style and trends.
Advertise through newspapers, banners, brochures, etc.
5. Les Miz may acquire loans to support its operations.
6. Utilize the foreclosed properties that were redeemed.
V. ALTERNATIVES
1. Change the form of ownership from sole proprietorship into partnership or corporation.
2. Sell the machinery and use the proceeds for financing manpower.
3. Sell a portion of Les Miz Shoes’ net