Mitigating the decrease in business capital of Frequent Flyers Co.

• Main Author: Villanueva, Josephine M.
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Small business—Philippines > Finance; Capital > Philippines; Internet marketing > Philippines; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etdm_manorg/37; https://animorepository.dlsu.edu.ph/context/etdm_manorg/article/1067/viewcontent/villanueva2.pdf
• Institution: De La Salle University

The purpose of this integrative action research is to mitigate the depletion of the business capital of the Frequent Flyers Co. (FFC) to allow its continuous operation during and post-pandemic situation. With the uncertainty brought by the COVID-19 pandemic in the micro and small businesses, the researcher and collaborators determined that the business must adapt to the new normal set-up. In the 1st cycle of the research, it was observed that the business capital of the FFC was continuously decreasing due to the consistent expenses incurred by the company even it is not operating. The researcher and collaborators determined that an intervention must be conducted to minimize or mitigate the continuous decrease in business capital. Therefore, it was agreed to reopen the store and provide interventions that are focused on lowering the expenses incurred by the company and creating an effective marketing strategy to generate sales. However, these interventions did not translate to the expected outcome of the FFC partners. In the 2nd cycle, the researcher and collaborators agreed to reopen the store and focus on the delivery and marketing strategy improvement. Though the outcome of the sale generated is relatively higher compared to the 1st cycle. It was still determined to be lacking since the break-even point of the business was still not met. Further, it was determined that the continuous operation during the lockdown is not effective to mitigate the decrease in business capital. After the action research, it was understood that the approaches or interventions during the action research does not guarantee success for the micro and small businesses. Different factors such as location, product substitutes, and marketing reach plays a bigger role in the success of the business during the pandemic situation.