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Case Study Pan de Sal

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Charles Lyndon Dulos

on 5 May 2013

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Transcript of Case Study Pan de Sal

Presented by
Group 3 Case Analysis titled:
"Hot Pandesal" Introduction/Overview Pan de Sal is a Spanish term which
literally means bread made with salt
has been a part of Filipino breakfast.
It is oven-fresh baked bread sold by
small neighborhood bakers handed to
the customers while still hot, that is
where the Filipinos derived the term
“Hot Pan de Sal”. Many small time entrepreneurs became
attracted to this business due to its
low capital and high profit. In view thereof,
the development of the business rose abruptly
in 1974. This paved the way to the development
of ovens – a product of Filipino ingenuity –
which was invented in 1970. Eventually, the business was brought to the provinces. Time Frame: Early 1970`s up to present. The Point of View In a manufacturing company,
the marketing department serves
as the decision maker concerning
the materials for production. They
decide whether they will purchase
local or imported materials such
as flour. Statement of the Problem Determine which is more profitable,
to purchase locally produce raw
materials or imported raw materials. Objectives: To be able to find a way to decrease the capital and material cost and to increase profit rate by 100% per day. SWOT Analysis Strength – The department
has the right to decide on
what to purchase for the
production of a certain output. Weakness – Production
maybe stalled by having
poor management support
such as budgetary constraint
and etc. Opportunities – Could explore variety of processes to be able to produce or discover new kinds of products using local ingredients. Threats – Occurrence of poor
quality products that is made
by local materials. Alternative Course Action (ACA) A) Increase output by reducing the size of the product in order to use the same amount of imported material. B) Purchase native materials instead of imported materials to be used in producing outputs. C)Export finished products to gain break-even profit to cover the expenses for importing materials used in production. Recommendation: Solution B is the best and the most strategic among the ACA`s. it could help to minimize expenses and gain more profit by purchasing local materials. Wide selections of suppliers of locally induced raw material are always available around the market. So, you may have a lot of alternatives. Though, it may affect the quality of the produced output that would give way in producing or discovering another kind of product. Conclusion: Therefore, using locally produced raw material would not hinder in producing output not far from producing it by using imported materials. We recommend this in order to decrease the cost of capital and materials and to increase profit by
100% per day. Fin That's All! Fundamentals of Management Advantage: It will increase the
quantity of the output without
assurance in profit increment. Disadvantage: Consumers may
not avail the product due to its
physical change. Advantage: Able to purchase raw materials in minimal value and at the same time to patronize our country`s products. Disadvantage: May decrease the quality of the output due to the difference in quality between the imported materials and native materials. Advantage: Products may have
high quality because of the
imported materials and may be
popularized worldwide. Disadvantage: The profit will not be
certain to increase because of the
exporting fees. (Using Imported Materials)
1 bag of flour=60php
Other expenses=30php
Selling Price=0.10php/pc

In 1200 pcs there will
be a profit of 33% per day (Using Local Materials)
1 bag of flour=40php
Other expenses=20php
Selling Price=0.10php/pc

In 1200 pcs there will
be a profit of 100% per day
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