International Business and E-commerce

Case Study on International Business and E-Commerce

Case Background

The Santos family opened its first outlet for selling a line of handmade gold and other jewelry in Quezon City in 1968 . The company offered a wide assortment of lady 's gold ornaments including several lines for the B , C and D markets . For more than ten years , it remained a small single store business managed directly by the four members of the Santos family and a few trusted employees . In the early and later part of the eighties , however , the family took

advantage of the establishment of new shopping malls in Metro Manila and opened four new outlets located in the different part of the city . It added new lines of jewelry as sales expanded . Among the new lines were gold medallions that could be made in different sizes and /or images using specialized imported equipment

The increase in the number of the stores necessitated a major expansion of the stores necessitated a major expansion of the store staff and the division of work among the owners in managing the sales outlets . The nature of the company 's merchandise required that a member of the family directly supervised the day to day operations of the outlet . In addition , expansion created a host of new problems in operations which necessitated the design of new store systems and procedures , for example for inventory taking and for ensuring the secure storage of the store merchandise after working hours . During this expansion , the four members of the family actively involved in the business for example the Santos couple and their two eldest sons , found it increasingly difficult to effectively supervise the five company outlets . As a result , the family decided in 1989 to close the original store located in Quezon City and defer the new opening in the market

Elizabeth Santos , the youngest among the Santos children decided to join her parents and brothers in the management of Gintong Hiyas after completing her bachelors ' degree in Commerce in 1992 . She is very computer and IT literate that can help her family to solve their problem in inventory and security

Case Analysis

Point of View

Elizabeth as new joined member in the business of her family knew the business ' weakness . She knows that her family is left behind in term of technology , adapting into the new systems make their work easy especially in inventory and in security . Using advanced technology can make their monitoring , controlling and supervising to the business

Statement of Problem

-The increase in number of store leads to increase of store staff and division of work among the owners of the store in managing the sales outlet

-The owner needs to directly supervise the day to day stores ' operation -The expansion of stores requires the design of new systems and procedures foe example inventory taking and for ensuring the secure storage of the store merchandise after working hours

-Supervising , controlling and monitoring become to difficult for the owners

-Expansion results to closing...