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Members: Inot, Kenny Angela A. Ladrera, Allan T. Jr. Macapaz, John Fred G. Sulla, Mae Concepcion Vallejo, Bernadeth A. Yanson, Yedda Mae

Eldashells Trading is a sole proprietorship in Cebu, Philippines that manufactures and sells shell crafts and ornaments. It sources high quality seashells from a local supplier and has employees manually wash and prepare the shells. Craftspeople then carefully attach the shells together using nylon wire and steel clips without heat to produce items like jewelry boxes, picture frames, necklaces, and furniture. Finished products are stored in a warehouse before distribution to stores and customers. Eldashells prices products by adding direct and indirect costs to the cost of materials plus a gross profit percentage. They produce around 1,000 items per day depending on design complexity but do not use formal forecasting techniques.

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54 views8 pages

Members: Inot, Kenny Angela A. Ladrera, Allan T. Jr. Macapaz, John Fred G. Sulla, Mae Concepcion Vallejo, Bernadeth A. Yanson, Yedda Mae

Eldashells Trading is a sole proprietorship in Cebu, Philippines that manufactures and sells shell crafts and ornaments. It sources high quality seashells from a local supplier and has employees manually wash and prepare the shells. Craftspeople then carefully attach the shells together using nylon wire and steel clips without heat to produce items like jewelry boxes, picture frames, necklaces, and furniture. Finished products are stored in a warehouse before distribution to stores and customers. Eldashells prices products by adding direct and indirect costs to the cost of materials plus a gross profit percentage. They produce around 1,000 items per day depending on design complexity but do not use formal forecasting techniques.

Uploaded by

jack9olorvida
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Members:

Inot, Kenny Angela A.


Ladrera, Allan T. Jr.
Macapaz, John Fred G.
Sulla, Mae Concepcion
Vallejo, Bernadeth A.
Yanson, Yedda Mae

Products

ELDASHELLS TRADING

In totality, the Philippine shell industry is a much overlooked industry. The


Philippines is very rich in sandy beaches, shallow waters, deep seas, coral reefs, rocks
and boulders that harbor several thousand species of sea shells. A conservative
estimate of 5,000 species of mollusks are found in the Philippines, which probably
represents the highest diversity of mollusks in any one country; and some 1,500 of
these species are involved in the shell trade. This remarkable diversity of mollusks
could be largely due to the vast number and complexity of habitats available among the
7,100 islands, which could lead to the isolation of organisms and subsequent
speciation, as well as being located on the Indo-Pacific, one of the worlds most diverse
ecosystems.
The number of species being found and recorded in the Philippines is still
increasing each year, and it is only in the Indo-Pacific region where the rarest and most
beautiful shells are found, most of them in great abundance. One particular island in the
Philippines where rare shells are primarily collected is Balicasag Island in Bohol. There
are few places in the world that can rival the Philippines as a shell country. Even the old
churches and houses in the country built during the Spanish colonization period were
constructed out of shells and corals. Its no wonder many people in the world regard the
Philippines as the Pearl of the Orient Seas.

Eldashells Trading, centered in Punta Engano, Lapu-Lapu City, Cebu, is a soleproprietorship type of company that deals in the trading of manufactured furniture and
ornaments made of shells, or in simpler words, they engage in shell crafts. Eldashells
started out as a simple act of kindness to finance a Japanese friends jewelry business

in Japan. She soon realized the industry of jewelry is an ideal place to start her own
business. The business first supplied jewelry boxes and picture frames but soon
expanded into necklace, ornaments and furniture. She had more shops and boutiques
built in various places to display her products. Her first stall/shop was across Blue Water
in Maribago, Lapu-Lapu City. Sooner than later, she had joined the shell jewelry exhibits
in Manila, Cebu, Bohol and Boracay. Elda is looking into expanding the business and is
therefore making huge upgrades in the quality of their products. She is eyeing markets
in U.S., Japan, Australia, Poland, Fiji Island, and Germany.

In the production process of the various ornaments, Eldashells Trading will be


getting their high-quality supply of seashells from SHELLS, a well known wholesaler of
high-quality seashells. It is all but implied that if the raw materials used in production are
of the highest quality that the finished product will be of good quality too, provided that
the process all shells go through are done properly. Despite the rise of the use of
machines, it has been proven that these machines are not infallible and that they cannot
operate on their own. The company hires shell washers who manually wash the shells
with Tide or Surf (they occasionally switch between the two bleaches). This is a very
tedious and time consuming process, the employees need to be very thorough because
negligence in proper cleaning will result to an unpleasant odor. They also need to be
very careful because using too much force and bleach will reduce the vibrancy of the
color of the shell. With manual labor, even with the usual human faults, the mistakes are

minimal in nature and can easily be remedied (e.g. faded color of shells can be replaced
since theres an abundance of seashells here in the Philippines). The company does not
take chances in making products that do not live up to its name of being high quality,
vibrant and durable and thus hires quality controllers who observe each product
meticulously to prevent the release of substandard products. Now, these shells are
carefully weaved together using a very thick, but still transparent, nylon wire. The
products do not make use of heat and loose ends are therefore fastened using steel Sclips.

Production
process

Unwashed raw shells


Washed raw shells

Finished Product

Work in

Cebu Beauty
Shells

Olive
Shells

Channel of Distribution

Production
Departmen
t

Conch
Shells

White Cowry
Shells

Distribution
Center/Stor
e

Warehous
e

Customer
s

Customer
s
Distribution
Center/
Store
Customer
s
Distribution
Center/Stor
e

Customer
s

Finished products are stored in a production warehouse where the


products are hung and placed in shells. The warehouse is an open-air structure so the
air does not become stagnant and produce strong odor.

Eldashells products and crafts compute the selling price of their products using
various formulas. The main formula they use is adding the Direct Costs incurred, plus
Indirect Costs and the Gross Profit percentage. Another computation for the Selling
Price would be Supplier Cost plus the Gross Profit Percentage.
Various factors will be considered in computing the prices are the ff.:

Direct Costs
Shells
Strings
Wage/Salary
Expenses
Wires
Packaging Costs

Indirect Costs
Cleaning Supplies
Utilities
Office Equipment Rentals
Desktop Computers
Cellular phones

Ways in computing SELLING PRICE:


=Direct Cost+ Indirect Cost+ GP%
=Supplier Cost+ GP%

Eldashells representative (whom we interviewed), has told us that they do not


adopt a specific forecasting technique, just that they use their transaction history
to predict their sales. And seeing as they do not have a forecasting technique, (or
that they deem it unnecessary), they do not care to check for the accuracy of
their predictions. She also supplied us with the reason why they do not use
specific forecasting techniques and that is, We dont do metrics since its an
informal family business. We put less focus on forecasting and more on
realization.

The number of products they produce in a day vary. She told us that it
depends on the production requirement for that day and that sometimes, they
would work on 20 different product designs, other times only 2. Quantity output
also varies because there are products that require more man hours than others.
Approximate average product would be 1000 in a day, probably more.

The products are segregated diversely. Taking for example, Mactan


which is a very popular tourist destination take precedence over all the other
locations since foreigners are more likely to get attracted by its vibrant colors and
great workmanship. Another factor they consider when it comes to shipping the
goods is the population in a certain location. Simply put, more people around
translates to more chance of people taking an interest in the products sold.

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