PASSION FOR EDUCATION: BUT AT WHAT COST?

Written Case Analysis

Presented by
Group – 1

Mark Christian Butaya

Rosella Apuya

Trisha Eve Balbuena

Jan Daryl Alonso

Keeben Badoy
 Written Analysis of the Case

INTRODUCTION

Each person has our own passion, good or bad, for better or for worse, for yourself or for
the sake of the others. Passion gives us the motivation to keep trying, even if you fail time after
time. Even if it means to sacrifice something. Sometimes, it is not always the passion that our
hearts desires will always to be followed. We should learn from the mistakes of others.

ISSUE

Mrs. Yolanda engaged in a business without proper and adequate planning, thus; she only
considers her passion of educating the young minds of the children on which she was determined.
She has imposed marketing strategies but some of it are not effective which has a major impact
on her business operations.
There are also minor issues that we have identified:

 No Capital
 Increasing Accounts Receivables due to dropouts
 Aggressive Expansion
 Debt Loan Sharks
 No investors
 Payment-policy
 Geographical Location

POINT-OF-VIEW OF THE CASE

It is the case wherein Mrs. Yolanda Puno is the main issue of it. Her passion and heart-
burning desire to provide a second home for children who are innocent in their minds. She is
motivated and objectively oriented when it comes to her goal. We have cited this problem of her
is her lack of capital to make the business operational in the initial stages. She was driven to a
fault and this resulted in a rushed and series of ill-advised decisions.
It is that time when the school begins to operate and her dream becomes into reality, the
moment that she awaits has come. Marketing strategies have been implemented for these stages.
However, challenges begin to knock on her door when the money that they have been collecting
cannot cover all the expenses of the school.
Our point-of-view of the case of Mrs. Yolanda regarding to the bankruptcy of her business
is that we think that the root cause of the failure is due to her negligence of proper planning and
formulating long-term strategies to make her business successful. She was focused only on her
passion and not considering what would be the result thereof.

AREAS OF CONSIDERATION

There are number of areas that should be considered in this case. One of which is about
the business’ payment and receivables policy. A well thought payment and receivables policy is
needed in a business so that it would ensure that the business will remain “above water” base on
the terms of receivables. Another one is that the school’s competitors and its environment. The
number of students should also be considered in this case.

ALTERNATIVE COURSES OF ACTION

We have concluded that the need of capital is the major factor in starting a business for it
to be operational. The initial stages of the business sometimes need cash to cover-up deficit of
the expenditures. Decision-making is very important for us to be more careful of our financing and
investing decision. We need to find credit agreements that is reasonable for the business. Also,
in order to procure additional capital, she should find potential investors to increase her capital.
In addition, in marketing strategies, Mrs. Yolanda Puno should have implemented effective
but less risky marketing scheme. Marketing strategy plays a big role to attract the parents or
guardians to enroll their children.
Mrs. Puno should consider changing the school policies regarding the payment and
collection of school fees.

RECOMMENDATION
Here are the recommendations that we have agreed-upon we think that is effective in order for
the business to operate in the long run:

 In order to generate additional capital, Mrs. Puno should inform and convince interested
parties to invest into her school like her colleagues, friends and relatives.

 She should reconsider her investment decisions since the population of the school is not
growing.

 She should consider reusing the per account collection basis and stop implementing the
enrollment with zero payment since it is not effective based on the historical data.

 She should think about establishing a parent-teacher association so that they may
establish a school canteen to generate additional income.
 Cost cutting method should be implemented by selling the air conditioning units and
replacing it with ceiling fans.

 Applying effective yet cheap marketing strategies vital to the population growth of the
school such as social media advertising and joining inter-school competitions and inter-
school organization.

 Maintain harmonious relationship with their neighbors.