Case 4. JONA CAR RENTAL: Before the Next Teardrop Falls 666!"
(Page
For fourteen months, Mr. Jose Naguimbing acted as general manager of Jona Car Rental. The company has branches in Angeles City, Olongapo City and aguio City. The main o!ce is located in Ma"ati City. Jose succeeded his brother #edro $ho founded the company and $as $ell%li"ed by his subordinates. The car rental company $as &ery lucrati&e $hen #edro left it to establish another business. Jose $as &ery enthusiastic during the 'rst fe$ months of his ste$ardship. At the 'fth month, his sta( members began losing con'dence in his abilities to run the 'rm. One time, $hen a purchase order for three units of Toyota car $as presented to him by the o!ce manager for his signature, he signed it immediately. The manager 'led the order $ith a dealer on the same day. The ne)t morning, ho$e&er, Jose instructed the o!ce manager to cancel the order. *e also directed the manager to buy three units of Mitsubishi cars from a dealer. +hen the position of branch manager for Angeles City became &acant, he appointed someone $hom his immediate sta( thought to be the least deser&ing of the three candidates. After three months, his sta( members $ere pro&en right the re&enues of the branch $as drastically reduced. Compared $ith a competitor in the area, the performance of the branch $as dismal. +hen Jose decided to establish another branch he as"ed his sta( to identify three potential sites for him to choose from. *e pic"ed -aoag City. t turned out that -aoag has the $ea"est potential. n contrast, the competitor $ho put up a branch in /antiago City in the same year $as registering substantial re&enues. /antiago City $as one of the potential sites for$arded to Jose for consideration. #$E%T&ON%: 0.1 +hat $ould you suggest to Mr. Jose Naguimbing to impro&e his performance2
A'ser: suggest to Mr. Jose Naguimbing to follo$ the decision%ma"ing process to impro&e his performance. f he follo$s the right process he $ill ne&er failed again in ma"ing decisions for the company. For e)ample, in choosing the right place for his another branch, he $ill not going to pic" -aoag rather than /antiago City because in decision%ma"ing process it includes analy3ing the en&ironment. f he analy3es the en&ironment properly he $ill "no$ that -aoag has the $ea"est potential to ma"e his another branch to be successful.
4.1 s there anything that #edro missed $hen he allo$ed his brother Jose to succeed him2 +hat should ha&e been done by #edro before lea&ing the company2
A'ser: #edro missed to consider his brother5s capability in running the company. *e should5&e taught 'rst his brother about decision ma"ing and some techni6ues to do for the company5s bene't, before he lea&es the company.
Case ). CA*ELOT RECOR+%: Those ,ere the +a-s
(Page /4"
Mr. Miguelito /alde $or"ed &ery hard as salesman of recorded music. *e represented a company $hich distributes compact discs and cassette tapes $ith foreign labels. For about ten years, he personally called on dealers in Metro Manila and the pro&inces to con&ince them to buy his products. *is e)posure to the industry pro&ided him $ith the right mindset to establish his o$n recording out't. +ith his mind $or"ing, Miguelito hatched a plan on ho$ he $ill go about operating his o$n company the Camelot Records. n addition to his "no$ledge about the mar"et, he collected information on the production aspect of recording. The plan and the re6uired information $ere all stored in Miguelito5s memory. -ater, Miguelito mentally prepared a 'nancial plan, as $ell as a personnel recruitment program, no matter ho$ crude they are. +hen he thought that his business plan is complete, he began to implement it $ith the re6uired speed. *e $or"ed systematically by follo$ing a procedure he alone "no$s, and e)plaining to his recruits the e)act functions of each of them. +ithin a fe$ months of operating, the company $as able to produce t$o long playing cassette tapes and C7s $ith recordings of srcinal Filipino music. -ocal singers and composers $ere tapped. The mar"et recei&ed moderate response. Miguelito $ent on producing more recorded music until one of the 'rst ten albums became a commercial hit8 This feat catapulted the company to recognition by the industry. The company5s commercial hits $ere follo$ed by other hits in succession. All of the successful mo&es of the company $ere made $ithout the bene't of a $ritten plan. +hat Miguelito did $as to personally super&ise all acti&ities from hiring talents to pro&iding directions to salesmen. This he did &igorously $ith the company5s total $or"force of 90 employees. As the company gre$ $ith more productions and more than 4:: employees, Miguelito5s immediate subordinates are getting $orried that their boss must be feeling the burden of a $or"load that is getting hea&ier as the years pass.
The sta( feels that their leader must begin to delegate some of the responsibilities to 6uali'ed persons. They thought that to be fully organi3ed, a $ritten plan must be de&ised so e&ery employee could e(ecti&ely assist in implementing the &arious pro;ects of the company. +hen the sta( mentioned to Miguelito about the importance of a $ritten plan, Miguelito replied by saying
#$E%T&ON%: 0.1 *o$ sound is Miguelito5s arguments2
A'ser: thin" Miguelito5s arguments has a point too because it is true that the company $as organi3ed $ithout a $ritten plan and it became successful. /o there5s a chance that he can still continue running the company $ithout a $ritten plan, but his perspecti&e should only implement if he has a small company. 4.1 Assuming that Miguelito $ill $elcome suggestions, $hat $ill you say to e(ecti&ely counter his arguments2
A'ser: No$ that his company has gro$, thin" he should ma"e a $ritten plan for his company to be fully organi3ed because he can5t control and organi3ed the company by himself, he need the help of a 6uali'ed person to do it. *e need to ma"e a $ritten plan so that his employees $ill "no$ their functions and obligations for the company. n a $ritten plan all the employees $ill also "no$ $hat to do to achie&e the desired situation of Mr. Miguelito. /o the $ritten plan $ill really help Mr. Miguelito to continue running successfully his company.
Case 6. 0&LLB&LL1 CABLE CO*PAN1: All 23'ds of Eer-th3'g 5!5"
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The ad;oining to$ns of ?apan, /an sidro, and Cabiao in Nue&a @ci;a $ere identi'ed by Mr. Rodolfo Fa;ardo as the right area for the proposed company the *illbilly Cable Company. Together $ith t$o other former classmates, @fren #uyat and -amberto uluran, they $ere able to raise more than #0 million as initial capital. The trio initially determined the mar"et and technical feasibility of the pro;ect. They $ere satis'ed $ith their 'ndings. The last aspect that they $ill ha&e to $or" out is the organi3ational set%up of the 'rm.
The partners agreed that the structure $ill depend on the &arious acti&ities inherent to the 'rm. /o, they sat do$n and prepare a list of the acti&ities in&ol&ed $hich are as follo$s 0. /oliciting subscriptions 4. nstalling cable connections to the subscriber5s homes . illing subscribers B. oo""eeping and related matters 9. #rocurement of transmission rights . Actual operation of the net$or" D. Recei&ing payments from subscribers E. Repair and maintenance of facilities . 7isbursement of funds 0:. Coordination of the &arious acti&ities 00. /ecuring the o!ce and transmission facilities 04. Typing and 'ling 0. 7eli&ering subscribers5 bills 0B. 7ri&ing the ser&ice &ehicle of the company The partners $ant to produce an organi3ation chart and ;ob descriptions of the &arious positions that $ill e identi'ed. *o$e&er, they 'nd it little di!cult to begin dra$ing the chart.
#$E%T&ON%: 0.1 f you $ere assigned to dra$ the organi3ation chart of the 'rm, ho$ $ill it appear2 #R@/7@ NT
A'ser:
%R@C@IN? #AKM@NT/ FROM /G/CR@ R/%
%#ROCGR@M@ NT OF TRAN/M//O
%OO@@# N? AN7
%7/GR/@M@N T OF FGN7/% %--N?
%TK#N? AN7
AR@A 0
AR@A 4
AR@A
AR@A B
AR@A 9
%ACTGAO#@RATON OF T*@ N@T+OR% % N/TA--N? CA-@ CONN@CTO N/ TO T*@ /G/CR@ R5/ *OM@%
%/O-CTN? /G/CR#TON/,R@ #AR HMANT@NANC@ OF FAC-T@/,COOR7 NATON OF T*@ IAROG/ ACTIT@/,/@CGR N? T*@ OFFC@HTRAN/M/ /ON FAC-T@/,7@-I@R N? /G/CR@R5/
4.1 *o$ $ould you di&ide the organi3ation into units2 +hat units $ill be formed2
A'ser: di&ided it using the *ybrid 7esign, combination of di&isional units and functional departments located at corporate head6uarters. The units that formed are /ales, -egal, Audit, Finance, #roduction, and *uman Resources.
Case !. L&70T0O$%E &N%$RANCE CO*PAN1: 0elp *e *a8e &t Thro9gh the N3ght (Page 5/)" The -ighthouse nsurance Company $as founded in 0D:. t is engaged in selling non%life policies speci'cally those related to 're and allied lines, motor car, marine, personal accident, bonds, and miscellaneous lines. The company is a stoc" corporation $ith 90 branches all o&er the #hilippines from Northern -u3on to /outhern Mindanao. t employs a total of :9 employees manning the head o!ce in Ma"ati City and all the branches. The company5s *uman Resource 7epartment is composed of '&e employees including its head, Ms. @merenciana /oriano. The department maintains a 'le of the company5s record of personnel $ho are trained at the head o!ce from one $ee" to one month. +hen the position of branch manager LM1 becomes &acant, the general manager pulls someone out from the Mar"eting 7epartment to 'll the &acancy. The performance of ne$ branch managers is lac"luster in the 'rst fe$ months. After a year, either their performance impro&es, or they fail totally. +hen a M5s position becomes &acant, the *R7 immediately coordinates $ith the Iice #resident for Mar"eting and $ithout much fuss, facilitates the transfer of the most senior of the eligibles to assume the M5s post. This year, the &acancies for the M5s $as unusually higher than last year. -ast year5s &acancy for M consists of only one and it $as immediately 'lled up. At the beginning of the third 6uarter of this year, si) &acancies ha&e already occurred of $hich only three could be 'lled up. After '&e months, still no suitable replacements could 'll the other three &acancies. Ms. /oriano is no$ thin"ing of the best mo&e to sol&e the problem.
#$E%T&ON%: 0.1 f you $ere in Ms. /oriano5s position, $hat $ill you do2
A'ser: f $ere in Mrs. /oriano5s position $ill open a big hiring for the position of the branch managers to sol&e the problem. $ill recruit and select 6uali'ed persons for the ;ob and before they $or" for the company $ill train
them properly to ha&e a consistent and producti&e employeesbranch managers. 4.1 *o$ could such embarrassing situations be pre&ented from happening2
A'ser:
To pre&ent such embarrassing situations from happening, Mrs.
/oriano should gi&e monetary re$ards or promotions to the branch managers and other employees if they did a good performance. n such $ay she can moti&ate the persons to ha&e a good performance and to stay longer $ith the company.
Case . J$P&TER +R$7 CORPORAT&ON: Cr-3'g T3e
(Page 54/54;"
Ms. Justina Concepcion has been $or"ing for the past three years as branch manager of Jupiter 7rug Corporation in Cabanatuan City. As branch manager, she o&ersees the operations of '&e stores located in di(erent parts of the city. The stores open at E::A.M. @ach store is manned by a store manager plus nine other employees consisting of an in&entory cler", a cashier, a utility boy, and si) salespersons. Ms. Concepcion has the full authority to hire and 're any employee $ithin her branch e)cept the store managers. t $as one morning $hen she $as bro$sing on &arious documents for$arded to her, that she noticed four letters of resignation. The letters $ere prepared by t$o cashiers and t$o salespersons. /he thought that she must act 6uic"ly on the resignations. The letters indicated reasons that she 'nds hard to accept. One employee stated that he is resigning because he $ould attend to the needs of the family farm. +ith Ms. Concepcion5s e)perience $ith the company, one resignation per year is considered normal, but four resignations in a month is too she thought. /he immediately contacted a trusted see"much, out the real reasons. /he found out that the t$o cashiersemployee made a to $ritten re6uest t$o months earlier about s$apping assignments $ith one another. They said that once appro&ed, their ne$ assignments $ill bring them $ithin $al"ing distance of their residences. One of the salespersons resigning indicated that she $as confused in doing her ;ob. Most of her time is spent on entertaining customers, but at other times, she is ordered to perform boo""eeping functions. +hen she $as reprimanded by the store manager for logging in the lo$est sales records, she 'led her resignation. The other salesperson resigned because he thought the store manager $as unfair to him $hen an amount e6ui&alent to three days absence $as deducted from his $ee"ly earnings. The salesperson ob;ected by saying he
only made one day absence on account of illness. The store manager, ho$e&er, $as not con&inced. Ms. Concepcion is no$ considering the mo&es she $ill ha&e to ma"e.
#$E%T&ON%: 0.1 +hat possible communication errors may ha&e been committed by the branch manager2 y the concerned store managers2
A'ser: The possible communication error that may ha&e been committed by the branch manager is that she did not properly communicated and e)plain $ell the responsibilities and obligations of her employees, that5s $hy one of the salesperson $as confused in doing her ;ob. A proper understanding of responsibilities is a function of e(ecti&e communication. A person $ill perform according to $hat she percei&es she is supposed to do. There are also physical barrier bet$een the branch manager and the t$o cashiers because Mrs. Concepcion found out that the t$o cashiers made a $ritten re6uest T+O MONT*/ @AR-@R about s$apping assignments $ith one another. /he didn5t able to pro&ide feedbac" maybe because of physical barrier. A communication channel that is o&erload may also pre&ent important information to reach the intended user. +hile, the possible communication error that may ha&e been committed by the concerned store manager is that there is a personal barrier bet$een the store manager and the other salesperson. #eople $ith di(erent &alues $ill 'nd it hard to communicate $ith each other. #oor listening habits of a recei&er Lstore manager1 frustrate the communication e(orts of the sender Lsalesperson1 that5s $hy the salesperson decided to resign. 4.1 +hat measures must be instituted to pre&ent the recurrence of such problem2
A'ser: To pre&ent the recurrence of such problems the branch manager and the store manager should learn from their errors. They should also do the follo$ing •
•
Gse feedbac" to facilitate understanding and increased the potential for appropriate action Repeat messages in order to pro&ide assurance that they are properly recei&ed.
•
•
Gse multiple channels so that the accuracy of the information may be enhanced. Gse simpli'ed language that is easily understandable and $hich eliminates the possibility of people getting mi)ed%up meanings.
Case <. &N+&ANA %ALE%: %8-l3'e P3geo'
(Page 56565"
Fi&e years ago, Mr. Narciso Cortes $as hired as salescler" by ndiana /ales, a 'rm engaged in retailing and 'nancing motorcycle sales. *e $as the 'rst employee recruited by the ne$ly assigned manager of /antiago City branch. +hen Mr. Cortes $as hired, the branch $as only one $ee" old. +ithin '&e years, the branch has a full complement of t$enty persons including the branch manager, a cashier, a credit and collection super&isor, a sales super&isor, and a parts and ser&ices super&isor. Mr. Cortes5 record as salescler" $as commendable and the branch manager $as considering him for promotion as sales super&isor. The salescler"5s ;ob consist of entertaining in6uiries from prospecti&e customers. f a sale made, he prepares the &arious documents re6uired including the deedissale, in&oice, and receipt. The sales super&isor, on the other hand, is responsible for o&erseeing the acti&ities of the salescler", the utility boy, the dri&er, the records cler", the documents cler", and the stoc" cler". Oftentimes, the sales super&isor has to lea&e o!ce at E:: #M due to the re6uirements of the ;ob. Mr. Cortes indicated to the branch manager that he is happy $ith his ;ob as salescler" and he does not aspire to ha&e bigger responsibility. The branch manager, ho$e&er, $as &ery insistent, and he informed Mr. Cortes that ne)t month, he $ill be replacing the current sales super&isor $ho $ill be promoted as branch manager and $ill be assigned to another area. /ince the announcement of the impending promotion, Mr. Cortes5 beha&ior began to change. Although the reports he pre&iously prepared $ere error%free, the ones he is currently accomplishing are 'lled $ith some mista"es in computation. *is perfect attendance record is no$ mar"ed $ith a fe$ absences. *e easily gets irritated $hen customers as" a lot of 6uestions. The branch manager is perple)ed and is no$ pondering on the $isdom of pushing through $ith the promotion of Mr. Cortes. #$E%T&ON%: 0.1 +hat could be the reason for the change of beha&ior of Mr. Cortes2
A'ser:
thin" the reason $hy Mr. Cortes suddenly change his beha&ior
is because he doesn5t $ant to be promoted as a sales super&isor. f he
disappoint the branch manager about his change of beha&ior the branch manager might change his decision about the promotion of Mr. Cortes. 4.1 f you are the branch manager, $hat $ould you do2
A'ser: f $ere the branch manager, $ill try to con&incemoti&ate Mr. Cortes to accept the promotion by gi&ing him re$ards to impro&e his performance, but if he still insist to re;ect the promotion, $ill respect his decision. $ill not pursue to promote him as a sales super&isor because if do, he might not perform $ell as a sales super&isor and it $ill a(ect the 'rm. n order to ha&e a good performance Mr. Cortes should ha&e the $illingness to do the ;ob, unfortunately he doesn5t ha&e that $illingness= so as a branch manager, $ill not continue to con&ince him if he really don5t $ant the promotion.
Case 5. 2OO2ABOORA CONTA&&NER CORPORAT&ON: *a-=e Toorro (Page 5!!5!" +hen the Clar" /pecial @conomic one in #ampanga opened its gates for in&estors in light and medium industries, the oo"aboora Container Corporation LCC1 $as among the 'rst ten companies to locate in the 3one5s premises. CC manufactures containers of &arious shapes and si3es $hich are used by manufacturers of industrial chemicals, food products, coo"ing oil, motor oil, and others. The production department of CC is headed by @ngineer Nicolas Aisporna, a licensed mechanical engineer. *e is a tic"ler for discipline. +hen e&en small mista"es happen in his department, he personally calls the o(ending employees and metes the appropriate penalty. As a result, his department $as ;udged best in e!ciency. Iery minimal $astages in materials and time $ere recorded by the department. the direct super&ision of @ngineer Aisporna are 0: super&isors $ho are Gnder graduates of engineering courses and $ith an a&erage of three years $or" e)perience. Ten $or"ers report to a super&isor. All of the $or"ers are high school graduates. All employees including the super&isors and the $or"ers are paid on a monthly basis. The $or"ers, ho$e&er, are re6uired to produce a minimum number of units per day. 7uring slac"%seasons, $or"ers are engaged only from 9:P to D9P of their normal $or"ing hours due to lac" of su!cient ;ob orders. No $or"er is laid o( by the company and e&eryone recei&es full pay. This is so because of the strong recommendation made by @ngineer Aisporna to the top management. /lac" seasons last up to three months. At the fourth month, ;ob orders begin to pour in and e&erybody
starts to co&er 0:: P of their $or"ing time. On the se&enth month of the current year, orders $ere recei&ed at more than the normal capacity of the company. For the 'rst time since the company began operating , the department $ill be re6uired to $or" o&ertime. No additional compensation $ill be gi&en e)cept for free meals in the e&ening. +hen @ngineer Aisporma called the department5s entire $or"force to a meeting, he e)plained the importance of accepting the additional orders and $or"ing on them on o&ertime. *e said he is e)pecting e&erybody to lend a hand in the additional e(ort. +hen he as"ed for comments, only one indicated his a&ailability. @ngineer Aisporna could not belie&e the cold response of his subordinates. As the hours pass by, the anger felt by @ngineer Aisporna gets deeper and deeper and he thin"s he can no longer contain it. *e $as thin"ing aloud <+hat "ind of people are these2 7uring periods of less $or", they are not laid o(= and they don5t thin" of it as a fa&or8 They could not reciprocate management "indness8>
#$E%T&ON%: 0.1 +hat is it that @ngineer Aisporna failed to recogni3e in this case2
A'ser: thin" @ngineer Aisporna failed to recogni3e in this case is employee orientation. A leader is said to be employee%oriented $hen he consider employees as human beings of intrinsic importance and $ith indi&idual and personal needs to satisfy. There5s a reason $hy only one of his employees indicated his a&ailability, maybe the other employees sa&e their time for personal reasons. 4.1 +hat immediate solutions may be used to sol&e the problem2 +hat long%term solutions must be put in place2
A'ser: An immediate solution compensation to sol&e the problem is that @ngineer Aisporna should gi&e an additional to the employees to ma"e them agree for the o&ertime and also moti&ate them to $or" hard. +hile, the long%term solution that must be put in place is that @ngineer Aisporna should change his style of leadership, for him to ha&e the support of his subordinates. *e should use the supporti&e leadership style, so the ne)t time he as" fa&or from his employees, they $ill help him.
Case 55. T0&R%T F&R%T BOTTL&N7 CO*PAN1: %.O.%
(Page 5<65
Competition in the soft drin"s industry is &ery intense that e&ery means to impro&e a company5s sales position is e)plored. Ad&ertising and promotional e(orts are hea&ily relied upon by Thirst First ottling Company to drum up customers5 interest in the company5s products. The company is engaged in the production and mar"eting of soft drin"s. t operates plants, $arehouses, and sales o!ces throughout the #hilippines. The company has been ser&ing the #hilippine mar"et for more than 9: years. The manager in charge of ad&ertising and promotion is Mr. Rolando Calanday, a graduate of a mar"eting course in the College of the mmaculate Conception in Cabanatuan City. The ad&ertising and promotion unit coordinates $ith ad&ertising 'rms in the design and production of ad&ertising materials li"e billboards, posters, and streamers. The unit often produces t%shirts printed $ith ad&ertising messages $hich are used as promotional items. The company spend more than #4: million annually for the purpose. #eriodically, the ad and promo unit sends the ad&ertising and promotional materials to managers of the &arious sales o!ces of the company. The managers, in turn, hand o&er the materials to their respecti&e sales teams for proper disposal. The dri&ers the deli&ery $ith on theappropriate assistance of helpers directed to install theofbillboards andtruc"s streamers places andare paste the posters in conspicuous corners of retail establishments. At the beginning, the dri&ers appropriate for themsel&es a small portion of the ad&ertisement and promotional materials. /ome of the billboards are used as partitions in the houses of the dri&ers. The posters are used to reinforce the $alls. The t%shirts are not handed o&er to customers but to family members and friends. The materials are clearly not used as intended but nobody in the sales o!ces 6uestions the practice or e&en care to "no$. One day, the general manager of the company, Mr. Marcelino de Iega, recei&ed a letter from a concerned employee reporting about the unethical practice. mmediately, the general manager called Mr. Calanday and in6uired on ho$ he $as getting about his responsibility of promoting the company5s products. Mr. Calanday5s reply did not satisfy the general manager. On the same day, Mr. Calanday recei&ed an order from the general manager to clear up the problem regarding the unethical practice or he $ill be replaced as head of his unit.
#$E%T&ON%: 0.1 +hat important management function $as neglected by the company2
A'ser: The important management function that $as neglected by the company is Controlling. They also failed to chec" of their ad&ertising products $ere properly distributed. Mr. Rolando Calanday didn5t super&ise
the ad&ertising products that5s $hy he didn5t "no$ $hat happened to the ad&ertisements. 4.1 f you $ere Mr. Calanday, $hat $ill be your 'rst mo&e2
A'ser: f $ere Mr. Calanday my 'rst mo&e $ill be is to 'red the dri&ers, because if didn5t 're them, they might continue their unethical practice. And also $ill ma"e them pay for the portion of ad&ertising products they ta"e.
Case 5/. %ER>&#$&C2 *OTOR REPA&R: &t?s J9st a *atter of T3e (Page /5/5<" Mr. Apolonio Angeles is a highly s"illed mechanic $ho is patroni3ed by discriminating car o$ners for the repair of their &ehicles. The hea&y demand of his ser&ices prompted him to open a shop in a 9:: s6uare meter lot. *e $as able to con&ince a sister in the Gnited /tates to 'nance the construction of a suitable building and the purchase of needed e6uipment. The shop $as patroni3ed by customers so he hired '&e e)perienced mechanics, a specialist in electricals, and t$el&e assistants. Apolonio too" care of super&ising the $or" of the mechanics and the specialist. *e pro&ided them $ith direction and e)pert ad&ise $hene&er re6uired. For the past t$o years, Mr. Angeles $as able to attend e&ery important training sessions in motor car repair and maintenance handled by e)perts along the line. *e shared $ith his subordinates the "no$ledge he ac6uired. The facilities of the shop are updated e&ery no$ and then. The tools used are the latest models a&ailable and are "ept in tip%top condition. The shop is e&en e6uipped $ith computeri3ed engine analy3er. Ma;or repairs li"e engine o&erhaul are accepted. of the malfunctioning electronic systems of cars are also accepted. Repair ecause shop5s ser&ices are &aried and speciali3ed, customers ;ust "eep coming in. The shop is open from Monday to /aturday, :: A.M to :: #.M. Customer tra!c is hea&iest on /aturdays and lightest on +ednesdays. +hen Mr. Angeles dre$ a graph of the demand for ser&ices pro&ided by the shop, he did not li"e $hat he sa$. Mr. Angeles feels that if only 9 of the 49 units ser&ed during /aturdays could be mo&ed to +ednesdays, his subordinates and facilities $ill not be o&erburdened during /aturdays. *e really $ants to impro&e the situation but he is at a loss on $hat to do.
#$E%T&ON%:
0.1 f you $ere as"ed to help Mr. Angeles to sol&e his problem, $hat $ould you ad&ise2
A'ser: suggest to Mr. Angeles, if he really $ants to lessen the $or"s on /aturdays thin" he should change and lessen his time schedule during /aturdays, or he can do some discounts during +ednesdays. Also, he can hire more employees to be not o&erburdened during /aturdays. 4.1 +ill there be other disad&antages if nothing is done about the problem2
A'ser: The disad&antage of this problem is that Mr. Angeles might not 'nish all the $or"s on time, during /aturdays because of the loads of $or". Also, the 6uality of his $or" might lessen because he $as hurrying to 'nish the $or".
Case 5;. C$T&E P&E FOO+%0OPPE: The Nae of the 7ae
(Page
/;/" After thirty years of ser&ing the Metro Manila mar"et, the management of Cutie #ie Foodshoppe LC#F1 decided to open branches in pro&incial cities. C#F5s traditional products consist of bread and ca"es. After so many years of operation, the srcinal shop e)panded its store to accommodate fast food customers. The company also e)panded its assortment of products by adding more options in terms of &ariety and price. The srcinal shop located in Que3on City became the model for all branches. The srcinal shop is $ell patroni3ed by customers $ho are either Metro Manila residents or transients. The branches $ithin Metro Manila are moderately successful, but most of those in the pro&inces could not duplicate the performance of the srcinal shop. Miss Teodora #ayumo, a resident of Malolos, ulacan often dines at the C#F5s srcinal shop. This she does $hene&er she goes to Manila. /he has been a faithful customer since she $as a college student in one of the $ell% "no$n uni&ersities of Metro Manila. +hen C#F opened a shop in Malolos, Miss #ayumo anticipated the delicious meals she used to ha&e at C#F Que3on City. /he $as surprised, ho$e&er, $hen she found out that the 6uality of the food ser&ed cannot be compared fa&orably $ith those ser&ed at the srcinal shop. After '&e months of operation, the Malolos branch of C#F could not generate enough sales to ;ustify its continued e)istence. The branch manager, sidro Castillo, is not e&en a$are of the case of Miss #ayumo. Mr. Castillo "eeps on producing ad&ertising posters to stimulate demand. *e e&en hired a person
to distribute leaets to prospecti&e customers. The e(ort, ho$e&er, do not seem to produce the desired e(ect. Mr. Castillo sought the opinion of the general manager in Que3on City but he could not get the insights he needed. *e $as told to obser&e the srcinal shop and duplicate its acti&ities. *e thought that this $ill be di!cult for him to do because he cannot a(ord to lea&e e&en for a day his shop in Malolos.
#$E%T&ON%: 0.1 +hat do you thin" is the problem $ith the Malolos branch2
A'ser: The problem $ith the Malolos ranch is that the 6uality of the foods ser&ed cannot be compared fa&orably $ith those ser&ed at the srcinal shop. The taste of the products might changed by the Chef of the Malolos branch, that5s $hy it is not good enough compared to the one5s ser&ed at the srcinal shop. 4.1 +hat $ould you ad&ise Mr. Castillo2
A'ser: suggest to Mr. Castillo to follo$ the opinion of the general manager because if he follo$s that opinion he might notice the problem about the change of 6uality of the foods ser&ed at his branch and also he should sought some opinions from the customers about the taste of his foods ser&ed from his branch.
Case 54. #$E %ERA CERA*&C% CO*PAN1: &? Lea3'g &t All $p to 1o9 (Page /)5" The sales generated by Que /era Ceramics Company is gro$ing at a steady rate of 09P annually. The 'rm has been in e)istence for 49 years and its products consist of plain and decorati&e $all tiles, oor tiles, cement tiles, cappings and 'ttings. The company maintains a net$or" of dealers in Metro Manila and the pro&inces. Ma;ority of the company5s stoc"s are o$ned by the /oriano family. /peci'cally, 'fty one percent L90P1 of the company5s total capitali3ation of #49 million is ;ointly o$ned by the /oriano sisters and brothers. The president and general manager of the company is Miss 7alisay /oriano. The 09P sales gro$th of the company is limited only by the a&ailable capital. A gro$th rate of 49P can be achie&ed if an additional #9: million is added to the company5s 'nances. Miss /oriano 'gured out that the company has three options
0. To re6uire her siblings to in&est more money= 4. To in&ite ne$ in&estors through the sale of additional shares of stoc"s= . To borro$ from ban"s. f Miss /oriano chooses to see" additional funds from her siblings, only #: million $ill be a&ailable immediately, the rest $ill be handed o&er after 04 months. f in&iting ne$ in&estors becomes the choice, it $ill ta"e '&e months of good 'nancial $or" before the cash re6uirement comes in, assuming that there $ill be a su!cient number of in&estors interested in buying the company5s stoc"s. orro$ing from ban"s $ill ta"e a fe$ months of paper$or" before the loaned amount is actually deli&ered to the company. Miss /oriano is preparing her list of criteria before she submits her recommendation to the board of directors.
#$E%T&ON%: 0.1 +hat factors must Miss /oriano consider before she submits her recommendation to the board2
A'ser: The factors that Miss /oriano must consider before she submits her recommendation to the board is that the &arious fund sources ha&e their o$n indi&idual strengths and limitations, it is $ise to 'nd out through analysis $hich $ill bene't the business 'rm most. 4.1 +hat other possible sources of funding must be in&estigated 'rst before a decision is made2
A'ser: The other possible sources of funding are cash sales, collection of accounts recei&able, loans and credits, sales of assets, o$nership contribution and ad&ances from customers.
CA/@/ N MANA?@M @NT0 /ubmitted y
R/* T. ARC@-ON
/ubmitted To
Mrs. @&angeline #. 7ayao
