BEN SANTOS

Submitted by:
Coronel, Charlyn May C.
Eusebio, Elaine B.
Fernandez, Russell O Neal U.
Garcia, Janeza F.
Geque, Exequiel S.
Historia, Marion M.
Ocial, Gwendolyn Mae B.

I. Time Context: 1985

II. Viewpoint: President of H. Braun Philippines (HBP)
III. Major Policy Statement:
H. Braun Philippines (HBP) was a wholly-owned subsidiary of a West German
multinational corporation which manufactured a line of medical and chemical products in
Europe, Asia, and Latin America.
IV. Current Operational Plans
1. Management
HBP is a manufacturing company
Multi-divisional firm
Centralized form of organization
Ben Santos is assistant to the president and head of indent division
2. Marketing
Not mentioned in the case
3. Financial
Target return on investment (ROE) had uniformly been set at 20%
The system consisted of a two year revenue and cost budgets for each
division
4. Operations
Manufactured a line of medical and chemical products
Has five (5) operating division manager
5. Human Resource
HBP gives incentives and/or bonuses to their employees and even to
their managers
V. Social Responsibility Applications

HBP contributed to the Philippine government by paying taxes and help the
economy by investing in the Philippines and helping to circulate the money in the
economy.
VI. Statement of the Problem
How will the president of HBP implement the new corporate planning system
designed by Ben Santos to the company?
VII. Statement of Objectives
Long- term objectives

To have a corporate planning system for the next five (5) years
To have a vision and mission statement of the company
To have a competitive advantage in a certain industry

Short- term Objectives

To monitor day-to-day activity and see if the new corporate planning is properly

enforced
To eliminate resistance from the division managers about the new corporate

planning system
To have a implementation program inside the organization

VIII. SWOT Analysis

Strengths

HBP is a wholly-owned subsidiary

of a multinational corporation
Has five (5) operating managers
Target return equity has been

uniformly set at 20%

Ben Santos was an accountancy

Weaknesses

HBP has no clear planning system

The companys president has no

experience in the Philippine market

Strong resistance of division
managers on the proposed

graduate and obtained his MBA

degree in 1982

corporate planning system

Unofficial indices of Neda data
Lack of policies in terms of
employees incentives

Opportunities

Threats
2

Removal of all export taxes except

Increase in

that of logging
Gradual phase out of 15% tax on

interest earnings from 17.5-20%

Elimination of marginal deposit

dividend at 5% reduction yearly

Elimination of 10% tax

requirements on import LCs

Central bank plan to overhaul its

intracorporate dividends
Elimination of 1.5% turnover sales

on

tax on

rules in importation as part of the

trade liberation program of the

tax and lowering sales tax on non

withholding

government

essentials articles from 50%-30%

Reduction of sales taxes on
pesticides and fertilizers

IX. Alternative Courses of Action

ACA 1: Present Ben Santos proposed corporate planning system to the whole
company.
ACA 2: Convince or seek the approval of the board of directors through their power and
authority to implement the new corporate planning system.
ACA 3: Design an implementation program, workshops and/or seminars about the new
corporate planning system.
X. Analysis of Alternatives
ACA 1: Present Ben Santos proposed corporate planning system to the whole
company.

Advantages
Develop better communication
Identify possible opportunities and

potential threats
Strategic issues can be brought up

for top management review

Disadvantages
High expectation
Costly
Risky

ACA 2: Convince or seek the approval of the board of directors through their power and
authority to implement the new corporate planning system.

Advantages
Develop better communication
Gain control of operational

problems
Develop better internal coordination

Disadvantages
High expectation
Risky
Costly

of activities
ACA 3: Design an implementation program, workshops and/or seminars about the new
corporate planning system.

Advantages
Provides an organizational
perspective
Provides knowledge in decisionmaking
Enables measurement of progress
and growth can be accelerated and
improved

Disadvantages
No flexibility
Resistance to the decision
Expensive or costly

XI. Decision Statement

Our group decided to choose ACA 3 which is to design an implementation
program, workshops, and/or seminars about the new corporate planning system
because this corporate planning system, within the environment, is both feasible and
necessary and it can also provide a organization a clearer picture of the direction of the
company is headed to and a wider understanding of the companys problems.
ACA 1 was not chosen because it might have confrontation between Ben Santos
and those who are not in favor on his proposed corporate planning system. ACA 2 was
not chosen because it is not necessary to use power and authority of the top
management to convince and seek the approval by those who are not accepting Ben
Santos proposal.
4

XII. Implementation Program

Long-term

To have a harmonious relationship within the operations of the company.

The new corporate planning system must always have a control by the top

management.
Top management must always raise their concerns about planning also to the
middle and lower management.

Short-term

Review the companys new corporate planning system and present it formally.
Run through the new corporate planning system to see the effect to the company.
Quarterly monitor the companys performance and see if the new planning
system is working favorably to the organization.

XIII. Proposed Operational Plans

1. Management
Every decision must finalized by the top management
Conduct meetings
Top management must implement strong rules and regulations
2. Marketing
Advertise their chemical and medical products
Must have cheaper price compare to their competitors
Find business partners or investors in the Philippines
3. Finance
They must maintain their target return on equity at 20%
Must have company budget for their marketing campaigns
Draw a feasible financial plan that includes forecasting and target sales
4. Operations
Must have good machineries for their products
Must have quality and production control
Monitoring and evaluating the new corporate planning system
5. Human Resource
Organization must have seminars and trainings
Hire potential and credible employees
Have enough rewards and benefits for the employees
XIV. Other Problems and Recommendations

Other problems
There is disagreement among division
heads regarding the proposed corporate
planning system.

Recommendations
Organize a sit-down meeting with the
division heads and Ben Santos to clearly
discuss the corporate planning system to
know the reason why they disagree to the
plan.
Seek first the approval or the decisions of
the Board of Directors or present also to
them about the corporate planning system.

There is a compromise in the chain of

command of the company regarding the
decision and implementation of the
proposed corporate planning system.
Ben Santos issue about plagiarism.

Part of the agenda of the sit-down

meeting, Ben Santos should prove that his
corporate planning system is authentic.
Ben Santos must orient the president so
that he/she is aware on the business
culture in the Philippines.

The president of HBP does not have an

experience to the Philippine market.
XV. Management Lessons Learned

It is always important or essential to have a clear corporate planning system.

The process and flow of decision making in the chain of command in the

company should be clear in all respective departments.

All the members of the organization, from top to bottom, must be a positive

thinker to motivate them to go further in the business.

Make a thorough investigation of the subject matter before jumping into

conclusions.
Be open minded in changing things inside the organization and every plan must

work together corporately not only individually.

Communication from top to bottom is always important to gain insights and
thoughts about concerned things inside the organization.