Allera, Odessa Marie Dy, Jaecelle Manolong, John Anthony

Boeter, Joella Go, Shaun Anthony Marjadas, Jamaica

BA111 Strategic Management 12:00pm to 1:30 pm MW


Overview of the Problem
Baby Bloomers is a family enterprise owned by the Picaches, pioneering in floral arrangements with the use of imported materials.
Due to its immense profitability, the Picaches into considering programs of expansion, thereby forming the Baby Bloomers Commercial
Corporation (BBCC). To finance the expansion plans, BBCC sought loans from bank and placed their personal holdings as additional capital
into the company and used these as collateral to the debts. Large cash flows continued and Mr. Picache decided to put up other unrelated
ventures. Much of the funds available for servicing the debts were used as capital in the unrelated business ventures. Unfortunately, not all of
its ventures were doing fine, and the lack of debt management by the company led to cash flow problems aggravated by the devaluation of the
dollar exchange rate. To settle the debts, the mortgaged properties were foreclosed and the troubled businesses were sold off, leaving only the
flowers shops and the moderately successful restaurant. But the company, to finance its renewed expansion plans, is toying to sell the
restaurant business. Thus, the objective of this case study is to assist BBCC in recovering from financial difficulties it suffered by helping the
company look for ways to expand its business horizon in the hope of strengthening the its financial performance and condition.
Courses of Action
1. Penetrate deeply into the existing market
2. Offer new products to the existing market
3. Offer existing products to new markets

Analysis: Ansoff Matrix
Existing product New product
Existing market
Market Penetration
Increase sales to existing market by opening more
floral shops under the corporations name and reaching
out to competitors customers by increasing perceived
value of the companys product through increased
marketing efforts.
Product Development
BBCC currently offers flower arrangements.
The company can offer new products still in
line with the floral business, to its existing
market like fresh flowers, bouquets made
from cut flowers, foliages, herbs, ornamental
grasses and other plant materials, or even
wreaths and corsages.
New market
Market Development
Initially, the companys product is marketed to
housewives who love to stay at home staring at flowers
and who make floral arrangements as a hobby. The
company can rebrand its product to target schools,
hospitals, even funeral homes.
Diversification
Since Mrs. Picache and her children are
interested only in the floristry business,
diversification proves to be an improbable, if
not impossible, course of action.

Recommendation
Before recommending a course of action, it is an established rule in consultancy to take the inclinations and personal views of the
client into consideration. Factors such as the familys considerable experience in the floristy industry and its decision to stick expansion
plans in the said industry, and the desires of Mrs. Picaches daughters to open their flower shops under the Baby Bloomers family brand
name are taken into consideration. Citing our Ansoff matrix analysis, we recommend the company to penetrate deeply into its existing
market by pursuing its plans of opening new flower shops under the companys name and increase marketing efforts in order to gain the
competitors customer, securing dominance in the market.