RENOUVEAU Terminal Year End Report by kaycee.bautista

TERMI NAL YEAR END REPORT

REVOLUTIONIZING THE FASHION ACCESSORIES INDUSTRY

2014

SEPTEMBER

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CONTENT

HIGHLIGHTS OF PERFORMANCE

STRATEGY EVALUATION

BUSINESS STRATEGIES

Summary of Achievements

Strategies Implemented

Key Concepts of Business

MANAGEMENT HIGHLIGHTS

SUCCESS FACTORS

CHALLENGES & ACTIONS

PRCENT Highlights

Keys to the Success of Renouveau

Hurdles Faced and Overcome

SIGNIFICANT LEARNINGS

SOCIAL RESPONSIBILITY

PLANS FOR THE FUTURE

Learnings and Improvements

Giving Back to the Community

Renouveau Tomorrow

Brief Message Vision & Mission General Objectives Functional Objectives Renouveau Team Financial Highlights Financial Ratios Production Highlights Marketing Highlights Human Resource Highlights

4 10 10 11 14 16 17 17 19 19

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ACKNOWLEDGEMENTS

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ames Cash Penney once said, "growth is

never by mere chance; it is the result of forces working together." These forces are what contributed to the continuous growth of Renouveau and without which we would have never gained, learned, and attained this much in just 10 months. We would like to thank our mentors at the DSI Department, most especially our adviser Mr. Raymond Paderna, through their patience and vast knowledge in the craft such that it inspired us to never settle for anything less than what we knew could be better. To our parents and family for their undying support and understanding in our endeavors and for those weekends that we had to work in bazaars in varying locations, thank you for always being there. To our relatives and friends that showed their support from the very start by purchasing on what we would say were mere prototypes of our initial product, thank you for believing in us. To our customers, without you our business would not have gained such a market share and would not have grown this fast in just 10 months. To all the bloggers and writers that have featured our products, thank you! Your words have made our business grow and spread to a wider market and scope; those simple emails have helped us a lot. And of course, to Him for all great things shall always be done in His name and without Him faith and hope would not be possible. Thank You!

PHOTOGRAPHY Nicky Aureo CREATIVE DIRECTOR Thea Leong ARTISTIC DIRECTOR Casey Bautista WRITERS Casey Bautista Thea Leong

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BRIEF MESSAGE

It has been a great journey these past 10 months; Renouveau began as a mere inspiration for both Thea and I to provide fashion accessories that are fashionable but also affordable. We wanted our customers to be fashion forward but within a reasonable budget, such that they would eventually redefine the status quo of the industry.

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The development of these new products allowed us to have a wider market reach based on the customer's preferences. Our cloth necklaces are made by Thea and the vibrant colors are personally selected by both of us. As for the scarves, they were first introduced during the last quarter of 2013 and we had the vision of providing the market with infinity or circular cotton Our pioneer product, the Solace fit- scarves. They proved to be a big hit clip paved the way for our comduring the bazaar seasons. Through pany to secure a market within the continuous research we found a industry. The Solace fit-clip allows the way to make the scarves more innouser to alter or tighten their clothing vative and would be able to withwithout permanent change or alstand the summer climates. By the teration. The fact that Solace is a summer of 2014 we introduced our revival of an 80's accessory most of (in)finity scarves, these scarves can our buyers knew how the product be changed from the regular circuworked. As for those who were intro- lar scarves to the traditional rectanduced to the product, they found it gular ones. to be innovative and unique. During the beginning of the practicum pe- Currently, we are still researching riod, Solace was able to stand tall as and planning other fashion accessothe company's strongest selling ries to introduce to the market. Stay product. With that, Renouveau was tuned, we might just develop the able to research and develop other next big accessory for the year. fashion accessories among which are our cloth necklaces and Stay classy and fabulous, scarves.

Casey Bautista General Manager Renouveau

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HIGHLIGHTS OF PERFORMANCE

rom the beginning we already envisioned how Renouveau would make a mark in the fashion accessories industry. In the past 10 months, we were able to discover the many steps in reaching that goal. Through proper coordination and communication across the four main departments of the company each one has achieve several objectives towards the company's goal. MARKETING Renouveau’s objectives for marketing were not always written in stone. At the beginning of operations that company immediately noticed the change in target market based on its original one stated in the business plan. The perception of the market towards its products were positive however not enough to fully support the expansion of the business. Continuous product research and development were conducted in order for the company to always be the leader in revolutionizing the fashion accessories industry. The development of other variants of the Solace fit -clips did not push through because of the lack of available raw materials. Although some suppliers had the needed input in creating the other designs, there were not according to the standards that the company wanted. Renouveau did not want to release products that the owners themselves would not have wanted. A solution to the limited growth of the Solace fitclips was to develop other fashion accessories. This led to the production of cloth necklaces and two types of scarves, the infinity and the (in)finity scarves. The company also ventured to develop other products however they only reached the prototype and market test stages since there was

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not enough demand for these products. Renouveau’s image was known most during the Christmas bazaar season as most of the company’s selling efforts focused during these times. Direct selling was the primary mode of selling in bazaar, while it was supported with online selling. However during the latter part of operations due to the lack of big and well known summer bazaar the company shifted its efforts towards online selling. This prompted the company to develop its own company website and regular update it along with the company’s other social media accounts. OPERATIONS With the hopefulness and positive attitude of the company, it was envisioned that the demand for Solace fit-clips would be high and grand but this proved to be wrong. As the first three months of operations reflected a positive response of customers towards Solace the inventory of these clips was too high to offset the sales that were made. With that the company also developed other fashion accessories that also contributed to the growing number of inventory. As the company expanded its product lines, this required us to secure more suppliers and subcon-

HIGHLIGHTS OF PERFORMANCE

tractors. The new products proved to be less difficult compared to our pioneer product as the materials were only fabrics, jewelry chains, and other sewing materials. Immediately the company was able to locate other suppliers for its fabrics even if it were it farther locations. As for the jewelry chains this later on created conflict in the continuous production of the cloth necklaces. FINANCE Of the financial objectives set by the company, only one objective was successfully achieved. This objective was to earn more than Php 20,000 in sales for the first three months of operations. It became a challenge for the company to achieve the rest of the objectives originally set due to the different factors that has changed along the way. These changes and challenges will be further explained in another chapter of the report. Nevertheless, the company considers milestones in this particular function. This includes the full payment of the Achiever’s Fund Loan, which was the company’s main lifeline, as well as being able to submit financial requirements required of the program. The losses that the company incurred may also be a highlight since it implies the learnings and challenges overcome along the way--its all a matter of per-

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spective. HUMAN RESOURCE Since we, as a company, wanted our business to be about value creation, we made sure that we use part of our resources to participate in meaningful engagements in the form of CSR activities. At the end of the practicum period, we were surprised to have done more CSR activities compared to what we initially set out to do. Renouveau was able to conduct six CSR activities within the past 10 months. The Renouveau Team also had consistent and good attendance records in seminar hosted by the Young Entrepreneurs’ Society, even winning the Early Bird Award in one of the assemblies. Being only two members in the group, we find it important to be on top of all the activities and the necessary requirements that the practicum program demands from us. Regular meetings and correspondences with the practicum adviser was also observed all through out the practicum period.

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STRATEGY EVALUATION

Photograph by: Megann Jabola

STRATEGY EVALUATION

he table presented on the adjacent page is a summary of the identified internal and external strategies of the company. The internal strategies consist of the strengths and weaknesses of the company, while the external strategies are the opportunities and threats that company has identified in relation the business and the industry it belongs to.

STRENGHTS AND WEAKNESSES Marketing Renouveau began with its pioneer product the Solace fit-clips. The Solace fit-clips allows the user to alter her clothing without permanent change or alteration. At the beginning of operations that company was hopeful that Solace would be able to support the company single handedly. However, after drafting the company’s budget for the following months it was enough to admit that the unit price of Solace would not be enough to support the company. It was agreed that development of other fashion accessories would not only expand the product lines of the business, attract more market share, but also would generate enough cash flows to balance out the expenses of the company.

tractor of the company, Red Carpet of Gawad Kalinga, hindered further growth of the company as precious time was used just for travelling. A solution that was done was to locate a subcontractor that is near the place of business of Renouveau.

Operations Immediate promotional methods were applied by Renouveau in order to generate funds from its newest products. Hurdles faced in the development of these were limited suppliers and subcontractors. Also the distance of the primary subcon-

Human Resource Additional knowledge, training, and skill enhancement for all company positions were needed by the Renovueau Team. The DLSU organization Young Entrepreneurs’ Society was able to provide sufficient seminars to train the Team in

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Finance The company also secured financial assistance from the Achiever’s Fund Loan. The loan helped the company during the first quarter of operations as product development generated high costs. Although it was a challenge to set aside funds in order to repay the liability, the company was able to pay the principal and interest of the Achiever’s Fund Loan within the given time period.

STRATEGY EVALUATION

their respective positions. Due to liquidity issues the company faced delays in receiving their salaries during the first four months of operations, but this was resolved after the group’s adviser called their attention. OPPORTUNITIES AND THREATS Being part of the fashion accessories industry entails that there would be low barriers to entry but high barriers to entry. High barriers to entry can be explained by the presence of established brands within the said industry and that product replication can easily be done. Most especially with Renouveau’s additional product lines of cloth necklaces and infinity scarves as the inspiration of these prod-

STRENGHTS Marketing  The company was able to 

provide other fashion accessories to its customers. Marketing collaterals assisted the customers in finding out more information about the company and its products.

Operations  Renouveau was able to



widen its network of suppliers allowing it to develop more products. Securing more than one subcontractor allowed the company to have fall backs in cases of delayed production.

Finance  The Achiever’s Fund Loan was paid within the given period.

Human Resource  The members of the group are equipped with the necessary skills relative to their job descriptions. And despite the unlikely number of members in a group, their complementing work ethics enabled them to continue on with the business operations.

ucts can from various online sources. As for the Solace fit-clips, the company did not file any patents or other licenses for the design and structure of the product nor did it secure any contract with its supplier and subcontractor to not disclose any information about the product and/or company. However, the openness of Filipinos towards fashion allowed the company to properly identify its target market. Although this was different than what was in the original plan of the company, we were able to recover the sudden change by adjusting our selling methods to fit the properly identified target market. Product features from happy customers, fashion bloggers and writers also assisted the company in promoting its brand and market share.

WEAKNESSES

OPPORTUNTIES

Marketing Buyers  Delayed production of online  The change in target market



marketing collaterals and there were instances that social media accounts were not updated regularly. No permanent distribution channel for direct-selling since online-selling isn’t as successful compared to the former.

Operations  Limited sources of several

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

opened a new market reach for the company. Features from bloggers and writers expanded company market and industry share.

THREATS Substitutes & New Entrants  The products may easily be replicated most especially since there are no licensed patents or copyrights over the products.

Suppliers  Bargaining power of suppliers is high and some of the raw materials are subject to availability.

raw materials to produce other varieties of Solace fitclips.

Finance  The company had a limited amount of financial resources which compromised the expansion of distribution channels and selling opportunities.

Human Resource  Regular release of salaries of the employees were not consistently observed.

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VISION & MISSION Photograph by: Erika Rosales

Renouveau envisions revolutionizing the fashion industry through providing high quality accessories and apparel. The company primarily aims to defy the status quo in the fashion industry, where fashion will no longer cater to only a few who considers it essential. Where it should be able to change how people see society instead of further creating social divides, which may be addressed through reasonable yet competitive prices as well as flexible and innovative designs. The company believes that people should change their perspective and see how fashion is beyond the superficial and that it can ultimately transcend to how an individual exudes confidence in his or her personality and character.

The company takes pride in establishing connection with customers by changing their perspective on fashion through what the company offers. With this, the company is easily able to innovate fashion accessories and apparel that ensures value for customers as well as quality service. In a globalizing world, the company sees the role of technology in today’s society as a necessity -- most especially for the fashion accessories industry. Maximizing technology for both product development and market strategy the company will be able to deliver innovative products as easy as a click of a mouse button. Renouveau aims to create a sustainable competitive growth by seizing opportunities and development both within and beyond the fashion accessories industry. The company believes in creating structural changes in order to effect social change. Choosing to change the culture and the mindset of customers towards the fashion industry would hopefully breakdown the perception that fashion is only limited to the fashion-forwards. The company sees the importance and need of community and Philippine development; it planned that services such as operations and production will be outsourced to communities in order to provide employment and a source of livelihood to its members.

OBJECTIVES GENERAL OBJECTIVES

To get increased customer referrals The company started within their own network in promoting the business. During the Christmas season the company began joining bazaars and this is where Its presence in the industry was started to increase. There were times that former customers would bring their friends to the company’s booth and showcase its products.

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To be featured in a fashion magazine/editorial The company may not have specifically been featured in any fashion magazine or editorial, it was however featured in several fashion blogs and in a fashion show. Although some of these features incurred marketing expenses and are considered to be promotional advertisements, there was still a few customers who loved the products and willingly featured them in their blog and other social media platforms.

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To earn at least PhP 21,363.94 for the first three months of operations The company was able to generate a total of Php 22,067.50 during the first three months of operations. Compared to the latter months in the practicum period, the first three months generated the most sales, with the Solace fit clips and cotton infinity scarves as the fast moving products. Since it was Christmas season, bazaars that the company joined were crowded with “buyers” who had disposable income. The specific target market that the company intended to penetrate was included in the mix of people that the bazaar organizers planned for. In addition to this, being a start up company also helped since people were curious of the new products available in the market.

OBJECTIVES

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FUNCTIONAL OBJECTIVES MARKETING To launch at least 1 collection, with 2-4 colors/designs, of Solace per month The company initially had two designs of Solace fit-clips during the beginning of the practicum period, leopard print and maroon both of which were 3/4" in size. The following month, the black Solace fit-clips were reproduced. The group noticed that the black clips were the fast moving in inventory. Customers mentioned that they prefer the black clip since it was a basic color, therefore production efforts were concentrated in that particular color. Limited pieces of teal Solace cloth clips were released in June as a market test on future product expansion. To expand product depth of Solace after two months. The release of the first collection included the maroon, leopard print and two sizes of the black clips (1.5” and 3/4"). It was later followed by the release of another size (1”) of the black clip a month after and the teal clip 7 months after. Although the company originally planned to produce other Solace clips using different materials it did not push through due to the lack of affordable quality materials needed for its production. To launch a new product line at the least every two months Overall the company was able to produce seven product lines throughout the practicum period. These product lines include the cloth necklaces, both infinity and (in)finity scarves, bowties and neckties, and the blouses and pullovers. However not all of the products received raved reviews from customers and some are currently on sale, the company was able to follow the idealize schedule of releasing new product lines every two months. To join at least 8 bazaars during the whole practicum period Renouveau was able to join a total of eight bazaars during the whole practicum period. These bazaars were located both within and outside the University. A total of four bazaars under the practicum program where the company joined. While another four are bazaars located around the Metro.

OPERATIONS To order at least 450 units of Solace cloth clips for the first 3 months of operations in the whole practicum period The company was not able to achieve its objective to order at least 450 units of Solace fit-clips for the first 3 months of operation, only 150 units were ordered from GK Red Carpet during this period. Although Solace was the most fast moving and selling product for the company during this period, it was still not enough for the company to order that much number of units.

FINANCE To achieve the target net profit of PhP 60,688.42 set for the whole practicum period The company was not able to achieve this objective due to the challenges faced in attempting to increase sales. At the end of the practicum period, the company incurred a loss amounting to Php 8,988.90. To achieve break-even of units for Solace 385.53 units (PhP 42,408.62) of Solace in approximately 4 months New break even computation, given the actual fixed costs and average monthly sales, amounts to Php 35,783.10 for Solace in approximately 25 months. Sales from Solace has amounted to Php 12,760.00 which is one third of the newly computed break even amount given 9 months of business operations.

HUMAN RESOURCE To observe a payroll schedule every 15th and 30th of the month for the management team During the first three months of operations, the employees didn’t receive their salaries as the company wanted to focus on product development. The group's adviser called their attention and by the end of January 2014 the group received 4 months worth of salaries, and Thea also received her salary for production of cloth necklaces. To have at least 3-4 corporate social responsibility activities during the whole practicum The company was able to conduct a total of 6 corporate social responsibility activities during the whole practicum. These activities were able to support the Gawad Kalinga movement to end poverty by 2014; sponsor an outreach activity through the donation of old clothes to the St. James the Great Parish; donate and participate in the Yolanda relief operations; and lastly, partnered with the Black Pencil Project and Project Pearls by setting up a satellite location for donation of stuffed toys and school supplies to children.

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BUSINESS STRATEGIES

MAJOR BUSINESS STRATEGIES

asic business concepts can turn into strategies through proper implementation and understanding. We at Renouveau applied these concepts and turned them into strategies that led to opportunities.

MARKET PENETRATION Initially, the company assessed that the fashion accessories industry had low barriers to entry since accessories are relatively easy to manufacture and produce. But what offsets this is the high level of competition and substitutes already existing in the market. Being a new brand in a growing industry, it is difficult to position the company in such a way that would create sustainable competitive advantage over other industry players. In writing the business plan, we have established a target market according to the market test conducted. But when the business operations started, we noticed a slight change in the target market. We were able narrow down our target market into a more identified group. This enabled us to assess distribution channels better (which bazaars to participate in relative to its target buyers, which product to sell to a specific age group, what would attract our current market more to our products). We found that it was easier to sell products in bazaars where customer interaction was

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required. This not only helps sell the product (and increase the chances of the customer purchasing the product since we’re talking to them in person) but it also helps to build a brand that customers recognize. At present, the company has been putting their efforts in building and getting the brand out in the market. Although additional marketing expenses were incurred, it resulted to customer referrals, repeat customers and expansion in customer base.

PRODUCT DEVELOPMENT Renouveau is the French word for “revival”. The brand in itself envisions resurrecting fashion accessories from the past eras (and those in the present as well) with modifications and developments that would catch the attention of its current target market. In the world of fashion, trends come and go but it is the way it is presented that decides how long it stays. What the company brings in the revival of fashion accessories is the added innovative factor that makes accessories

BUSINESS STRATEGIES

more functional--when most competitors focus on just style. This strategy requires more than a keen eye for aesthetics but it also must be coupled with a critical mind. By presenting fashion accessories in a way that people are not usually acquainted to (i.e. function of Solace and (in) finity scarves), it gives another dimension to what people may think is just another fashion accessory.

PRODUCT DIVERSIFICATION Initially, diversifying into men’s accessories was part of the future plans. But given the limited amount of resources and the lack of research in the profiles of fashion forward males, the group, and as advised by the practicum adviser, decided to forgo the production of the men’s line. The company has yet to develop a product that would significantly be considered as penetrating a different market. As aforementioned, establishing brand recognition to the identified target group is one of the primary strategies of the company as to strengthen and increase its customer base.

MARKET DEVELOPMENT Putting a prime on an accessory’s functionality, the company conducts constant research on trends in order to look for new ways to market products to its current customer base and most especially non-buying customers. This strategy was specifically used for selling the pullovers. Initially, the pullovers were produced as a bundle promo for the Solace fit clip. But since it was slow moving in the inventory, the group decided to market it as part of an “after sports wear”, specifically to those females who work out or who does yoga. It was also employed in the clearance sale for the bowties. The bowties were marketed as a hair accessory ribbon.

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Market development strategies are employed by the company specifically to slow moving inventory products. This is to entice customers to see the products in different perspectives given the possible uses that the brand sells it for. It also adds a factor of versatility in the mix of products offered. This strategy also works with the seasonality factor of some products, especially the scarves. Renouveau initially offered chiffon scarves during the cooler Christmas seasons and eventually introduced its lighter weight chiffon scarves for the accessorizing summer staples.

COMPETITIVE PRICING STRATEGY For the conducted focused group discussions, the group decided to use customer perception to help identify the price that would account for the cost of goods and earn profit on the product. The perceived price was decided on its average and used for the market testing. The market responded greatly which established the pricing strategy employed by the company. But at the same time, the company compared the prices of similar products existing in the industry. Relative to its rivals and competitors, the company positioned itself to be a low-cost industry player. This complements the perceived pricing strategy since it was “decided” by the customers and mitigating the costs to a minimum helps increase the profit margin earned in every product. Since the brand carries numerous products in different varieties and materials, cost of production is not constant. Therefore, it is a going concern to address the pricing strategy that would yield the optimal profit margin.

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RENOUVEAU TEAM

Pamela Anthea C. Leong â&#x20AC;&#x153;Theaâ&#x20AC;? FINANCE MANAGER Responsible for overseeing the financial activities of the company. In-charge of generating monthly financial accounting, monitoring and reporting systems. Monitors sales and production projections to properly appropriate financial resources.

HUMAN RESOURCE MANAGER Monitors attendance and employee behavior. Ensures appropriate job-skill match supplemented by employee training. Administers payroll of employees with proper compensation. Liaises with external organizations for CSR activities of the company. Generates monthly assessment reports of HR activities.

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au Team

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Cassandra M. Bautista “Casey” GENERAL MANAGER Directs the company’s overall performance. Provides the direction of the business according to the general and functional objectives. Oversees functional tasks among departments. Conducts regular assessment of all departments’ progress. In-charge of coordinating with the practicum adviser.

MARKETING MANAGER Handles all advertising and promotional activities of the company. Produces all promotional and marketing collaterals. Schedules product releases and bazaars. Manages company website and all social networking accounts and sites. Coordinates company promotions and networks. In-charge of product research and development.

OPERATIONS MANAGER In-charge of procurement of raw materials and canvass of new suppliers. Ensures smooth communication to all subcontractors of the company. Manages inventory from raw materials, work in process, to finished goods. Conducts regular quality and inventory control of all products.

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FINANCIAL HIGHLIGHTS

inancial highlights compares three periods of the practicum period-- BUSPLA2 forecasts were the forecasts submitted before the practicum period, PRCENT2 forecasts were made during the assessment (not all of which were computed, which explains missing data in some graphs) and the actual figures. It is evident that there is a huge variance between the figures from BUSPLA2, PRCENT2 and the actual. Numerous factors contributed to the variance over time. The first factor is the start up capital invested by the group. Initially, the group computed Php 57,675.00 as the start up capital needed to fund the business operations but the group only used Php 20,000.00 in the beginning. Although the group invested additional capital in the middle of the practicum period, it was already to mitigate the effect of heavy spending on expenses. Another factor was the change in product mix, which affected the costs and expenses incurred. Values shown in the graphs are accumulated values from October 2013 to December 2013 and January 2014 to June 2014. SALES Sales during the months of October to December were relatively higher from those of January to June. This may be attributed to the higher spending capacity of individuals during the Christmas Season. Also, distribution channels available at that time captured more sure buyers. Sales from January to June were mostly online and direct sales. Although there were two bazaars outside campus and several bazaars in campus, it did not necessarily capture the market for the products which translates into lower sales. NET INCOME In relation with the graph presentation for sales, the losses incurred by the company during the first three months of operations were minimal compared to the

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FINANCIAL RATIOS

rest of the months. Relatively higher sales were able to cover majority of the expenses incurred then and otherwise for the latter months. A similar relationship to amount of sales may be established to explain the graph presentation of cash. OTHER ASSETS Other assets in the graph are assets other than cash, specifically inventory of Raw Materials and Finished Goods. The increase in inventory during the period of January to June may be attributed to the new collections of products released by the company. Different styles of scarves and another variation of the Solace fit clip were introduced. At present, the company has higher inventory for Finished Goods.

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profit and 0.49 of net profit. On the other hand, Php 0.29 was lost in dividends on the invested capital for every Php 1.00 earned on Return on Investment.

PLANNED

ACTUAL

Gross Margin

74.06

51.15

Net Margin

89.22

49.37

Return on Investment

105.22

-29.96

FINANCIAL RATIOS

ASSET MANAGEMENT Asset Management Ratios show a variance of -2.9 and -0.54 for Inventory Turnover and Total Asset Turnover, respectively. In the duration of the 10-month practicum period, the comLIQUIDITY RATIOS pany was only able to sell and replace the inventory in a During the initial writing of the business plan, no computalimited amount and earned less than a peso for every Php tions for liquidity ratios were done. Based on actual figures, the Current Assets Ratio is interpreted as the ability of the firm 1.00 of the total assets owned. to cover short-term liabilities and shows the proportion of the PLANNED ACTUAL firms current assetâ&#x20AC;&#x2122;s to its current liabilities. A Current Asset

PLANNED

ACTUAL

Current Assets Ratio

N/A

1.14

Quick Assets Ratio

N/A

0.05

Inventory Turnover

3.25

0.35

Total Asset Turnover

1.20

0.66

OVERALL ASSESSMENT Ratio of 1.14 means that the companyâ&#x20AC;&#x2122;s assets were not suffi- The overall financial health of the company may be assessed as poor based on the actual figures and computacient to cover its short term liabilities. Moreover, the Quick tions made. The lack of sales translated to the limited Assets Ratio shows that the company is not liquid enough to amount of money generated and circulated for business cover its current liabilities. operations This puts the company in a compromising position since financial resources are scarce. But because this is a PROFITABILITY RATIOS Profitability ratios show variance of -22.91 percent, -39.85 per- going concern, the current financial health of the company may be considered as a driver to recuperate the resources cent and -135.18 percent for Gross Profit Margin, Net Profit Margin and Return on Investment, respectively. Actual values used and earn profit more than enough to sustain the business. Future plans would be discussed in another chapter to show that every Php 1.00 of sales only earned 0.51 of gross help materialize this goal.

PERFORMANCE HIGHLIGHTS PRODUCTION AREA

he variety of products that Renouveau has delivered during the past 10 months have either strayed away from the initial plans laid out in the Business Plan or have somewhat modified them.

RAW MATERIALS AND LABOR COSTS Our pioneer product, Solace, has been present all throughout the practicum period. The table below summarizes the production costs of Solace fit-clips based on what was written in the business plan and what turned out to be the actual cost of the product once practicum started. The first table represents that cost of production of the Solace fit-clips by Red Carpet. Red Carpet was our initial subcontractor for

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MANAGEMENT HIGHLIGHTS

Carpet was with a Georgette fabric, the company wanted to use cotton and Chiffon once the product was settled. Currently, the scarves are made by Aling Celia at a lower labor cost, and since the materials are hand selected and purchased by the company the overall costs in producing them has also lowered by twofold.

WASTE DISPOSAL As all of our products are made from fabrics, there have been times that there would be excess fabrics during proSolace as we envisioned to partner with Gawad Kalinga duction of the company’s main products. The excess or since the introductory Phase. However, due to meeting loca- scrap fabrics are set aside along with other raw materials of tions and production area of Red Carpet the company dethe company. Later on, we research on other ways that the cided to have a secondary subcontractor that is nearer to scrap fabrics can be used. A great example would be our Renouveau’s business location. The second table reflects the limited edition Teal Solace fit-clips. The fabric that was used cost of Solace fit-clip production with Aling Celia, secondary to produced the Teal Solace fit-clips came from the scrap subcontractor, based on the production of the limited edition fabric of the Teal Cloth Necklaces. Costing may have been Teal Solace fit-clip. difficult for us to determine, but this product served as an inspiration for us to look for other ways that our scrap fabrics Other products that the company has made are bowties can be used. Currently, all scrap fabrics are stored in the and neckties, however production of these never occurred company’s business location and are all being assessed for during the practicum period as these products were refuture product development. moved from the original plan of the company. The products that were sold were part of the first batch of prototypes that PRODUCTION PERFORMANCE were made by Red Carpet. With the changes that the company has implemented in terms of product costs and subcontractor. The planning of For the cloth necklaces, they were not included in the busiproduction of Solace fit-clips was also dependent on the deness plan but was produced by the company through its remand or the sales of previous months. Presented in the folsearch and development phase. The raw materials that were lowing tables are the planned production of Solace fit-clips used to produced the necklaces were cotton spandex fabboth from BUSPLA and PRCENT as well as its respective actual rics, glue gun, and gold necklace chains. These were prounits produced. Following that is the summarized costs of produced by the company’s own Thea Leong, and her labor duction of Solace fit-clips from both subcontractors. was based on every 4 necklaces made. Although the scarves were originally part of the business plan, the materials and labor that Red Carpet drafted for the company were not within the budget plan that was allotted for the product. During the research and development phase the company sought out a new subcontractor and preferred to purchase their own materials. The initial material that was used in making the infinity scarf by Red

As for the other products of Renouveau, since majority were not included in the business plan no changes were observed for these products. The production of cloth necklaces were done in-house and Thea was received her respective wage for every 4 necklaces produced. As for the scarves, the cost in producing one unit was dependent on the type and design of fabric while the labor cost for such was at a steady price of PhP 100.00 per unit.

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MANAGEMENT HIGHLIGHTS

RENOUVEAU

For the following months, Solace had a hard time being sold online. The company noticed that Solace sales were higher the previous months because they were able to demonstrate the functions and uses of the products personally to its customers. Online selling limited the demonstration process that the company utilized beforehand. The company had to settle with just two dimensional photos to show how the product can be used.

PESO SALES In terms of unit price, Solace’s initial price of PhP 110.00 remained the same throughout the practicum period. There were no other production activities for the product, so no additional costs were added.

PERFORMANCE HIGHLIGHTS MARKETING AREA

ven if changes in production occurred, the company’s target sales did not change. During the first few months of operations that company was being hopeful that it would achieve TARGET MARKET its target sales both in units and Pesos. The original target market for Solace was within the ages of 1627 years old, as what was stated in the business plan. Once operations commenced, the company noticed that the acSales for Solace during the first quarter of operations were high tual target market for the product proved to be 20-35 years due to the fact that the company participated in several old; these customers showed that they had enough disposal Christmas bazaars. Customers who saw the product were eiincome allotted for personal accessories. As for the other ther aware of the product’s presence back in the 80’s or were products of Renouveau, they also fall within the same age new ones that were fascinated with the features it has to offer. bracket as Solace. For those who knew about the revival of the product they were surprised to see it again in the market and that people HUMAN RESOURCE AREA would still remember it. As for the others, they found the prodNo changes in the organizational chart was made throughout uct to be unique and innovative. Most of the customers that the practicum period. The main problem encountered within purchased the product decided to give them as Christmas Human Resources which was the inconsistent release dates of gifts to their relatives and friends. employee salaries, was not a problem of skills mismatch relative to the job description.

UNIT SALES

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RENOUVEAU

SUCCESS FACTORS

he company’s position in the fashion accessories industry can be attributed to how all the different departments of the company were able to function collective towards one goal - to revolutionize the fashion accessories industry.

MARKETING Product Feature The company was able to have five product features throughout the practicum period. Although two of these incurred marketing expenses, the returns were enough to cover for them. The biggest and first product feature was from Ms. Laureen Uy, she modeled and showcased our Chiffon Aqua (in)finity Scarf within minutes after she posted a photo of the product our social networking site, Instagram, received 100 new followers and we had around twenty inquiries about the product. Within days the Chiffon Aqua (in)finity scarf was sold out, and other scarves received inquiries as well. Another feature was from Ms. Megann Monday of Style Surgery, she featured the company’s product bundle of Solace fit-clip with a pullover. A Solace maroon 3/4" and an off-white pullover was sent to her, and she featured the products in her Instagram account, Facebook page, and the Style Surgery blog. Inquiries and sales for Solace also increased after the feature; and her friends also purchased other products of the company in a bazaar the following week.

of the Day) to her followers and readers showcasing our products. Her first post consisted the Solace fit-clips and how she found it to be very useful for her loose skirt; her second post also presented a feature of the clip. Her most recent post was from her Seoul trip last May where she wore our Chiffon Gray (in)finity scarf as she toured around Korea. Most recently the company was featured in the When in Manila under the Fashion and Beauty category. Contributing writer Ms. Amanda Arambulo featured both the Solace fit-clips and the (in)finity scarves of the company. She also shared our vision in becoming a social enterprise. Social Media The company noticed that the amount of time spent or being visible online reflects a lot to its customers. We consistently update our social networking sites and company website in order for customers to be kept updated with the latest products and announcements of the company. Regular product posts on Instagram not only promotes the product but also increases the likelihood of gaining new followers.

Product Research and Development We wanted Renouveau to the be leader in revolutionizing the fashion accessories industry, in order for us to achieve that we had to continuous place all our efforts in providing our customers products that are in line with our vision. Throughout the practicum period Renouveau conducted several product research and development, this allowed the company to learn more about the various fashion acMs. Erika Rosales became one of our avid customers by purchasing our Solace fit-clips and (in)finity scarves. A new cessories in the market and how these can be updated, blogger in the scene she has shared several #ootd’s (Outfit revived, or innovate. During the BMS: Attic Bazaar Renouveau’s cloth necklaces were featured in the event’s fashion show. The organizers of the event along with their style and fashion team approached the company during the bazaar proper and asked if they could feature the necklaces in the upcoming show for that night.

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SUCCESS FACTORS

RENOUVEAU

The cloth necklaces updated the know braided necklaces back in our younger years; we used cotton spandex fabrics which allowed the necklace to be stretch. Also, the colors that we provided were within two shades the neon's and bright as well as the jeweled tones. The development of the (in)finity scarves along side the infinity scarves allowed our customers to try different styles of scarves versus the more traditional ones such as square and rectangle.

uct has been agreed by the members of the company it is later sent to production and a quality control is conducted later on as to ensure that each product is free of damages and it within the standard set by the company. Regular inventory control measures were also done by the company in order to identify which products are already limited in stock and which ones are slow or fast moving. Inventory is either conducted bi-monthly and/or before and after bazaars.

OPERATIONS

FINANCE

Accessibility to Subcontractor As the company secured a second subcontractor for the other products, it was able to control the quantity that was produced. The second subcontractor did not require the company to have a minimum order quantity for the production of scarves. Another aspect that helped the company was that this subcontractor was easily accessible to the company’s business location, and both the members’ place of residence. There was also effective and clear communication between the company and the subcontractor.

Achiever’s Fund Loan The company decided to apply for the Achiever’s Fund Loan. The loan was granted which gave the company Php 30,000.00 to use as initial capital for the business, where Php 10,000.00 was deposited in the bank. During the first three months of operations, the company was able to earn a profit from the Php 20,000.00. A contributing factor to the success during the first three months is the timeliness. Since it was Christmas season, there was an increase in the purchasing rate of people due to disposable income they have probably set aside especially for the occasion. After the Quality and Inventory Control Christmas season, looking for reasonable distribution chanEach time a new product is researched and conceptualized nels became a challenge. Bazaars became more expensive the company made sure to produce prototypes first in order and so the company decided to put their financial reto determine the much needed changes to improve the sources into other marketing strategies. Although it was product/s before releasing it to its customers. Once a prod- costly, it was foreseen to produce great returns in the long run. The company invested in building the brand and getting it out on the market. Additional Investment In the middle of the practicum period, the members decided to invest additional capital in January and July. These additional investments were allocated to product development, marketing expenses and payment of the loan. At the end of the practicum period, the company incurred a loss but they were able to pay the principal amount and the interest on the loan within the given time frame.

HUMAN RESOURCE Human Capital The group only had limited human capital. The General Manager, Casey Bautista, was also the Operations Manager and the Marketing Manager while the Financial Manager, Thea Leong, was also the Human Resources Manager. Despite having their hands full, both individuals were able to fulfill their roles in the company because they understood the demands of their respective positions. They also understood their areas of strengths and weaknesses as individuals which made it easier to do specific tasks fit to their job descriptions. In addition to this, regular meetings as a company and with the practicum adviser were conducted. Attendance was also consistent and complete during bazaars, seminars and meetings.

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RENOUVEAU

CHALLENGES AND ACTIONS

Challenges & Actions

MARKETING Research and development of new products The company realized that its initial product, Solace, may not be able to sustain the much needed cash flow that the company would need. During the beginning of the practicum program, the company decided to put all efforts towards product research and development. For the whole of October the company focused its attention in creating cloth necklaces and infinity scarves. The allotment of effort towards these two products showed success once they were released during the different Christmas bazaars. Not only were they able to support the company's cash flows they also enhanced the identity of the brand as specifically catering to fashion accessories. Lack of distribution channels A contributing factor to the cost to entry in a specific industry is the availability and accessibility of distribution channels. For start ups, the most accessible and less

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Drawing by: Raizza Mae Tan

unning a start-up is no easy task; that’s why when Renouveau first started there were obstacles that needed to be hurdled. New things needed to be learned, and learned quick. Right now, it is still a learning process for us but we won’t have it in any other way.

costly method of distribution is through establishing social media platforms that would help advertise the product, but it’s not the main distribution part per se. The distribution channel given this strategy is through courier deliveries. In the experience of the company, online sales can only get so far especially if the network is limited. Direct sales and person-to-person encounters in bazaars or through referrals were still preferred as it earns greater returns. But it is usually more expensive and due to the limited financial resources that the company has, renting booths in bazaars was a tedious decision as we have to factor in the market it serves, the location, rental terms and foot traffic.

OPERATIONS Lack of raw materials available There were some products that were delayed in production or were merely left in the planning phase. Due to the limited number if supplies that we were able to find and contact some products were left as ideas. An

CHALLENGES AND ACTIONS

RENOUVEAU

example would be the chain version of the Solace fitclips. The original gold clips that we were able to purchase were sufficient to produce the product, however the available gold chains from several of our suppliers were not the same shade of gold as the clips. Further, the gold clips ended up tarnishing so the quality of gold and the overall quality of the product did not meet the standards of the company.

Liquidity Initially, the company only had the Achiever’s Fund Loan as its financial resources. A third of the money was deposited in the bank while the remaining was used for production and for distribution channels, specifically in joining bazaars. During the first three months of operations, the company was able to earn an amount from ⅔ of the loaned amount. But because of the loan amortizations and the need to spend for regular business operations, Changes in subcontractor the company was not always liquid. Access to distribution Initially, the production of the Solace fit clips were done channels were limited and highly costly which left the through Red Carpet of Gawad Kalinga. The first three company trapped in a vicious cycle. The members, then, batches were produced by the said organization but in decided to invest additional capital in order to sustain the assessment, the group noticed inconsistencies in the business operations. Cost cutting and better allocation of quality of the fit clips. The group decided to search for a resources and efforts were done by the group in order to new subcontractor for the fit clips but it appeared to be minimize the expenses but the profits could only help so more expensive than that of the previous subcontractor. much as to fully finance the activities needed to increase The current subcontractor for the fit clips is also the one in sales. -charge of the scarves production. Although the production of scarves is fast and enables just in time production, HUMAN RESOURCE the other costs incurred are still relatively high. At present, Payroll the company is searching for new subcontractors that In the beginning, the members of the group agreed to would help sustain the low cost strategy that the comcollect the payroll at the end of the practicum period pany employs. since it would be invested back for business operations anyway. During one of the meetings with the practicum High inventory adviser, the members disclosed this internal arrangement A downfall to towards the company's research and deand the practicum adviser suggested to do otherwise in velopment of products was the introduction of so many order to observe better business practice. The group folproducts at one given time. During the introductory lowed through, paid the first 3 months of salaries and phase the company aimed to sell all twenty prototypes started to implement the 15th and 30th as the release of the bowties which were carried over from its planning dates of employee salary. Although the compensation of phase. These bowties were originally part of the men's the employees throughout the practicum period was line of the company but they decided for forego the line given, it was not always observed consistently. Release of upon the beginning of operations. As of the moment the the compensation was heavily dependent n the liquidity company still has around ten units of bowties. of the company. Product development, production and the payment of the Achiever’s Fund Loan were always Another product that the company is facing problems prioritized since these activities had a direct effect and with are the pullovers. Initially, the pullovers served as a greater bearing to the future earnings of the company. complimentary product to Solace as a way to showcase Salaries payable were recorded in the books of the comthe latter's use. Only a handful of this product bundle was pany as to take note of the salaries foregone at the sold as Solace proved to be independent in sales. dates implemented and these salaries are given to the employees as soon as the company is liquid enough. Currently, both bowties and pullovers are on-sale and will continue to drop prices in order to decrease inventory CSR Activities and to instill product movement within the company. Majority of the CSR activities of the company were considered resource generation. The group participated in FINANCE DSWD-COSCA relief operations and in Project Life Achiever's Fund Loan Visayas. Although CSR activities were done during the During the writing of the business plan, the members of practicum period, the group believes that they could the group agreed to take advantage of the Achiever’s have had more meaningful CSR engagements. The proFund Loan available in the program due to personal rea- duction of the Solace fit clips may be considered as ensons. In the middle of the practicum period, problems terprise development but the company eventually rewere encountered regarding the computation of the sorted to looking for another subcontractor for the proamount to be paid to the University. It was soon adduction of the last batch of Solace fit clips due to probdressed by convening with the practicum coordinator. lems encountered with the aforementioned subcontracThe principal amount and interest was paid in full within the bor- tor. rowing terms of the Achiever’s Fund Loan.

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RENOUVEAU

SIGNIFICANT LEARNINGS

SIGNI

FICAN

T LEAR

NING

OVERALL MANAGEMENT tarting a business with pany. As just two people was being the peopleideal for us since we person that she is, both she and I were able to widen the network for Reknew each other’s strengths nouveau by continuously finding new and weaknesses well enough bazaar organizers and booth partners. through our years of friendAnother aspect that she has helped me was in updating the company’s different ship. I admit that there were platforms of social media. The company times that the amount of has accounts in Facebook, Instagram, work for of us was too much and Twitter along with it’s own website and company email. All of these acto handle, but it takes pracCase counts are easily accessed by the both tice and time to find the per- Ge y Bauti of us, so that whenever I finished designsta neral ing a marketing collateral either of us fect rhythm to achieve great Mana Manage ger, a r, Ma can easily share it to our customers. r k n e d Op measures. Let’s just say that eratio ting n s Man until now it is still a learning Handling all those tasks were no easy ager feat, I knew that I needed help and I process for us but we’re asked for it whenever I can. Knowing managing well about it. your capabilities does not really mean that one is weak, rather one

MARKETING Being able to conceptualize an idea is one thing, but actually producing it is another. As the Marketing Manager of Renouveau I assumed that the position would give me the chance to enhance my photo editing and marketing collateral design skills but I was proven wrong when I was informed that the tasks under my department also included research and development of new products and monitoring of sales were also a part of it. Not only that, I also had to do networking for the company whether it would be about product features or joining bazaars and also constantly update the company’s website and its other forms of social media. Those were a lot to handle while balancing two other positions in the company. Thankfully Thea was there to help me manage other tasks under this department. Editing and design has always been an interested of mine, however it would always be a challenge for me to produce them outside my head. To me my ideas were perfect already but that is because they were all in my head, the problem arrived whenever I had to actually create them. Since I didn’t have any skills in drawing I always resorted to designing them using Adobe Photoshop. It took me a lot of patience to get the results that I wanted, along with putting in odd hours since those were the times that my creative juices and patience would come out. The results were always beyond what I truly imagined, I learned a lot from different sources such as my friends who taught me other techniques that I didn’t know about or even the online community that taught me the other features of the program. For the research and development of new products, I had Thea to help me. We always conducted meetings so that our ideas would always be in sync in researching for new designs of our products. Since I handled Marketing and Operations this became an easy discussion for us. She also assisted me in networking for the com-

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accepts that he/she cannot always be perfect. Being a Marketing Manager would not have been easy if I didn’t ask for help, and that would always be the highlight of this position for me (aside of course designing all of our awesome marketing collaterals).

OPERATIONS Tinkering with things has always made me a curious bee, learning something new was a drive that stayed with me as the Operations Manager. Taking this task came with the understanding on how our products were made, as well as the materials that are needed in making the final product. Knowing how the product started as a set of simple raw materials to become the finished good that we sell to our customers was the highlight of this position. With each product that the company designed several raw materials need to be researched. Availability of materials through accessible suppliers was the first task that I always did. This position made me exhaust all possible resources and contacts that I can manage in order to find suppliers. Once the materials were secured, I needed to find subcontractors to make the products. Each subcontractor needs to have the needed skill and equipment to produce the product (it would also be an added benefit to the company if its business location was close to ours as well). As each product gets released from the subcontractors I always had to make sure that its quality were within the standards of the company. Each unit of product is assessed personally, and handled with care once they are stored in inventory. Regular inventory measures were always done for us to know if certain products need to be replenished. Overall, the Operations Department is the real heart of the company since without it there would be nothing that he company will be able to sell. But the real story behind this is that whichever your position in the company might be, at the end of the day it will always be a connection with people.

SIGNIFICANT LEARNINGS

FINANCE

RENOUVEAU

knowledge that although it may be a skill needed for the job (being a people-person), it demands more than that. It requires understanding the vision of the company and taking measures to ensure that the employees would contribute and be part of that vision. It requires attention to the details of business operations. It requires the knowledge of each job description as to be able to give respective training. It requires creative and strategic thinking in promoting activities that would help the company see greater things than business itself. And most importantly, it requires a consistent and regular release of employee salaries-- one of the challenges encountered early in the practicum period. Although we are a small scale enterprise and being the only employees of our company, it was pointed out by our adviser that at the early stages of a business, we must already know and perform good business practices. Throughout the rest of the practicum period, the release of salaries on the 15th and the 30th was observed but sometimes still encountered delays due to liquidity.

I would have never thought of myself as someone who would be capable in the lines of Finance. Numbers were not really my thing. To be honest, the Finance Manager position was handed to me since the Casey couldn’t be both the General Manager and the Finance Manager. Amongst other things, an numbers was her strength as ong er, and Hum e L a well. And since we had no The e Manag c er choice (being only two in Finan e Manag c r the group) and with the Resou promise that she’d help me get through, I became the Finance Manager. In the middle of the practicum period, especially Another realization I had was that it takes more than just will to do CSR activities. I acknowledge --through my experience in the practiwhen it was time to crunch the numbers, I found a sense of fulfillment every time I balanced the books. It was thrilling, being outside cum period-- that it is not easy to have truly meaningful CSR engagements given a limited amount of resources. We initially wanted of your comfort zone. After all, that’s what being in business is like-to conduct enterprise development activities as it would have taking risks and pushing yourself to expand your skills and knowledge to create something more valuable (and maybe in this case, greater social contribution. It was done only to the extent of the production of Solace clips by the nanays of Red Carpet but it was my experience in Finance made me more “valuable”). not sustained as problems were encountered, so most of the CSR activities conducted were resource generation in nature. In hindAll of these though is not to say that I didn’t experience challenges sight, I guess I would have given more attention to this since it helps along the way. The technicalities of it--balancing entries, preparing value creation in more than just a business level. financial statements, etc.-- were only a fraction of the challenge. That was easier to overcome, though, since I eventually got the hang of it (after a few sleepless nights and crazy outbursts). The harder part was doing it habitually and in good business practice. At first, I would put it off and let the work pile on but obviously that wasn’t a wise decision. I also learned a trick that worked for me in the process, aside from stretching my patience and persevering to get things finished, is to learn when my brain says “enough”. It’s not necessarily my forte so I could only do so much in a day. I learned that when I’ve worked up in the morning until late afternoon, numbers start to get cluttered with the other thoughts in my head and things start to get counterproductive so I would stop working for the day and carry on the next day. It surprisingly gets more work done. Of course, all these made me recognize the true value of money in the business. Surely, money isn’t everything and it’s not all about making profit but it’s almost the only means to the end--just make sure it doesn’t blind you though.

HUMAN RESOURCE One of the best things I can say I took with me from college is learning how to deal with people. I have been active in several organizations since I was in third year college and I have learned to deal with different personalities in different working environments. I believe that may somehow qualify me to be a Human Resource Manager. But having performed the function for 10 months now, I ac-

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RENOUVEAU

SOCIAL RESPONSIBILITY

SOCIAL RESPONSIBILITY #ProjectLIFEVisayas November 13, 2013 Type: Resource Generation Location: Alabang, Muntinlupa City Beneficiary: Community Brief Description: Project Life Visayas is an organized relief operation project in response to the aftermath of Typhoon Yolanda. It was mobilized in Alabang, Makati and Las Pinas. The relief operations were in the form of donations in cash or in kind. Renouveau donated old clothes and food to the beneficiaries of the project. Student Name

Involvement

Cassandra Bautista

Donated old clothes and food

Pamela Leong

Donated old clothes and food

DSWD-COSCA Relief Operations 4th week of November Type: Resource Generation Location: North Conservatory, DLSU Beneficiary: Community Brief Description: The Department of Social Welfare and Development opened a satellite relief operations center in De La Salle University - Manila. It was open to students and staff of the university and relief operations were in the form of donation of goods or repacking of goods. Renouveau joined the relief operations and repacked goods to be sent to Tacloban. Student Name Cassandra Bautista

Repacked relief goods

Pamela Leong

Repacked relief goods

1000 Hugs 4th week of November - 2nd week of December Type: Resource Generation Location: DSI Incubator, DLSU Beneficiary: Community Brief Description: 1000 Hugs was a project spearheaded by The Black Pencil Project and Project Pearls. The company, in coordination with the Incub Store, set up a drop off site where people may donate old toys and useable school supplies to be packed as Christmas gifts for the children affected by Typhoon Yolanda. Student Name

Involvement

Cassandra Bautista

Collected donations for the project

Pamela Leong

Collected donations for the project

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Involvement

SOCIAL RESPONSIBILITY

RENOUVEAU

DSWD-COSCA Relief Operations 2nd week of December Type: Resource Generation Location: North Conservatory, DLSU Beneficiary: Community Brief Description: The Department of Social Welfare and Development opened a satellite relief operations center in De La Salle University - Manila. It was open to students and staff of the university and relief operations were in the form of donation of goods or repacking of goods. Renouveau joined the relief operations and repacked goods to be sent to Tacloban. Student Name

Involvement

Cassandra Bautista

Repacked relief goods

Pamela Leong

Repacked relief goods

Production of Solace 2nd week of December Type: Enterprise Development Location: GK Enchanted Farm, Bulacan Beneficiary: Community Brief Description: The flagship product, Solace fit clips, are made by the nanays in the community of Gawad Kalinga in Bulacan. These nanays usually make bags and baby clothes and are only earn a living based on these projects. Since the fit clips are the main product of the company, it provides a sustainable livelihood for the nanays in the Gawad Kalinga community. These nanays not only earn from making these fit clips, but they also explore their abilities through making a different type of accessory compared to what they accustomed to making. Student Name

Involvement

Cassandra Bautista

Coordinated with Red Carpet Gawad Kalinga

Pamela Leong

Coordinated with Red Carpet Gawad Kalinga

Clothes Donation Drive 2nd week of January Type: Resource Generation Location: Ayala Alabang Village Beneficiary: Community Brief Description: The company donated old clothes to the Church of the Poor Apostolate of St. James the Great Parish Church. Student Name

Involvement

Cassandra Bautista

Donated old clothes

Pamela Leong

Donated old clothes

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PLANS FOR THE FUTURE

Plans for the Future It has always been a topic of discussion for us on what will happen with Renouveau after the practicum period and graduation. We both see the potential for it to grow more than what it is today, although baby steps will be taken we would want to continue the business even after graduation. It would take some time for us to break the barrier between the established brands, but we want to take that challenge. With the fast pace of the fashion accessories industry we plan to continue researching and developing quality fashion accessories and providing them to our customers within a reasonable price range. Further knowledge of our craft would also benefit the company, we both plan to take short courses in various aspects of the business. Simple sewing skills will assist us in understanding the product development process and would also widen our knowledge of the available raw materials in the market. Learning know about fashion trends would also allow us to broaden our knowledge about the industry and properly plan our next products.

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Drawing by: Raizza Mae Tan

Another reason that pushes us to continue the business is that it is legally registered with various government organizations such as the Department of Trade and Industry, Ayala Alabang Village Association, Barangay Ayala Alabang, City Government of Muntinlupa, and the Bureau of Internal Revenue. The amount of capital investment by the both of us would seem pointless if we discontinue the business that has just been running for 10 months. As basic business knowledge tells us, it would take at least 5 years before grand positive results would be reflected in the companyâ&#x20AC;&#x2122;s finances; at this moment we are willing to take that risk because at the end of the day itâ&#x20AC;&#x2122;s not just profits that drives us to pursue this business. What began 1 1/2 years ago as mere ideas put together for a class homework, today stands as a legitimate business which we cannot imagine closing at the moment. And truthfully, we are aware that Renouveau is not enough to secure us financially for the future but that is the risk that comes with being an entrepreneur.