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Cases in Business

Policy Issues
Introduction
Gonzales and Lanestosa
Introduction:
Before tackling the cases, let us introduce
the products that have succeeded in
employing the strategies needed to make it
in a very competitive market.

◇ Apple introduced iPod


◇ LG Electronics: Chocolate Phone
Project Development
Team
◇ conceptualized the phone as not merely device but as part
of the consumer's life

◇ creates a sense of mystery

◇ maintains simple design concept while incorporating


functions that give it a competitive edge. e.g. multitasking
support

◇ Includes an all-out launching all over the world


*Adopted different strategies in different continents e.g.
Europe, North America
So, what really help
succeed LG's Chocolate
fone is...
◇ It enjoys total support from top management
coupled with the strong deternination and
trust of the head of mobile lab on the product

*The head compared and analyzed the would be


competitor to recognize and understand the
market better

*The customer's point of view provided a lot of


insights in developing the Chocolate Phone
Case Study
CASE #1: Pride
and Prosper ,
1 Inc.
Overview
◇ Pride and Prosper Inc, take pride in being a
pioneer in the manufacture of soaps. These soaps
have become household names, thus, makes the
company one of the more successful companies
today. This company made its first ever beauty
soap, Mild in the early ‘30s. Mild has become a
successful brand, thanks to the housewives to
have become hooked to daytime dramas on
national television, which were then sponsored by
Mild beauty soap. The success of Mild prompted
the Pride and Prosper, Inc, to manufacture
detergents, toothpaste, lotions, and shampoos.
The company gave importance to brand
Last few years the company's annual sales
growth has decline ranges from 2.6%-5% in the
last 5 years. Another 3 years of decline would
mean cutting off at least 30% of its 7,000 of its


workforce. It also means a complete
reorganization and alignment of jobs and
positions. Because of their problem, they hired
a third party consultants and the finding is that
the company's culture is conservative, slow-
moving and bureaucratic.
Management is also considering a joint venture
with a manufacturing company, Gilligan's Gum
Company, because of its massive distribution
structure. Gilligan manufacture gums, mint


candies, and breath fresheners. Pride and
Prosper believes it can give the company a
boost in the distribution of its product's. Soon,
the market will have a combined product from
Gilligan's breath freshener and Pride and
Prosper's toothpaste, fresh.
Viewpoint: Top Management
Main Problem: Conservative, slow-moving, and
bureaucratic corporate culture
resulting to decline in sales growth.

Objectives: To decide what action plan


should be done to stop sales
decline and increase its
products distribution and sales.
SWOT Analysis
Strength Weaknesses Opportunities Threats

◇ Pioneer in the ◇ Present ◇ Pride and ◇ Many new


corporate culture Prosper Inc, is an manufacturing
manufacture of companies are being
soap is conservative established
established in the
◇ Popular to and slow paced brand name
market
housewives ◇ Decreased in ◇ Possible joint ◇ Declining of the sales
sales growth venture with the of Pride and Prosper,
manufacturing Inc. continues, the
company which company would have
has a massive to cut off 30% of its
7000 of its workforce
distribution
structure. It may
widen their
Alternative Courses
of Action
1. Joint venture Gilligan’s Gum
Company
2. Change present corporate
culture into a fast-moving,
modern, more fast-paced
internet practical
understanding organizations
Joint Venture
Pros Cons
◇ It would give the ◇ Different culture and
company a boost in the management styles and
distribution of its product results in poor integration
◇ It increased market due and co-operation
to Gilligan’s present ◇ Success in Joint venture
consumers depends on the thorough
◇ Access to greater research and analysis of
resources objectives
Change present corporate culture
Pros Cons
◇ The company will be ◇ Cost-to-benefit ratio
more innovative ◇ Change might not equal
◇ Company will be more progress
accessible and open to
its customers
Recommendation
Based on the SWOT analysis, we recommend the ACA #1, pursue Joint Venture with
Gilligan’s Company.

It may them because it would give the company a boost in the distribution of
its products because of its massive distribution structure. It will be a great help for
the company not only for their products to be distributed widely but it can also give
them access to new markets and distribution networks. The Joint Venture can also
give the company a much greater resources, including specialized staff, technology,
and finance. The company may set up a sales incentive program and can results in
the increase of their sales. How? Company may give incentives to sales staff that
can sell their products greater than the others. It can motivate their people to do
their job with extra effort. The risk and cost can also be reduced because the
company will have a partner to shoulder them.
 
CASE #2:
2 Hamburger Plus
Overview
Hamburger Plus has thousands of outlets all over the world.
It is planning to spend $1.5B on a system called “Creative”.
Creative is an ambitious multimillion dollar project which
would allow Hamburger Plus management to monitor and
actively see how many of its products are being consumed
at any of its stores at any time of day.
Viewpoint: Chief Executive Officer of Hamburger
Plus
Main Problem: Rapid decline in sales and a bulk of
customer complains.
Secondary Problem: To undertake or not the Creative
Project
Objectives: To improve its sales and to
come up with a decision to
solve its problems.
SWOT Analysis
Strength Weaknesses Opportunities Threats
◇ Brand Name ◇ Slow flipping of ◇ Regular ◇ Competitors
◇ Known burgers. Customers
Worldwide ◇ No new hit
◇ Financially product.
Capable
Alternative Courses
of Action
1. Undertake Creative Project
2. Improve customer service.
Undertake Creative Project
Pros Cons
◇ Real time monitoring of ◇ Costly
sales. ◇ Indirect solution to the
◇ Evaluate employee problem.
performance. ◇ 200% reduction of
shareholder’s shares.
◇ Closing down of its 300
outlets.
Improve Customer Service
Pros Cons
◇ Additional learning and ◇ Years may pass by before
skills improvement for the results can be seen.
the employees. ◇ Training cost
◇ Increased customer
satisfaction.
Recommendation
We recommend the ACA 2. Rapid decline in sales and bulk customer complains
could mean that the company’s customer service and products is already outdated.
The company should first solve its internal problems and the way it serve its
customers. Public image should be catered first since it is their primary source of
income. Losing its customers could lead to bankruptcy of the business.
 
CASE #3: Best
3 Engineering
Consultancy Inc.
Overview
◇ Best engineering consultancy, inc. Is an engineering firm who
made a partnership with a consulting firm through an
outsourcing arrangement to outsource some of its engineering
functions. The company's employees have been diminished
from 30 to 5. Also, for the customers, the engineering work was
of low quality but of high value and beyond schedule. Chief
engineer resigned. Because of resignations and terminations
only 5 employee remain at best. And it has been reflected in
best's billing the consultants overhead costs and profits. The
consultant charged the owner overhead costs to accommodate
the employees that were moved to the new partnership office.
The fixed cost of the project are not properly charged to the
project's budget, miscomputation and misappropriations of
costs occur. The CEO of best got so bothered about the contract
between the two companies will end this subsequent year.
There will be a Php 100,000 penalty if they will pre-terminate
the contract.
Viewpoint: Chief Executive Officer of Best
Engineering Consultancy, Inc.

Main Problem: Best Engineering Consultancy, Inc.


can no longer deliver the needs of
it's customers due to 5 employees
Objectives: left.
To establish a better workforce
and provide customers the
service they deserve.
SWOT Analysis
Strength Weaknesses Opportunities Threats
◇ Known in ◇ Miscomputation ◇ •Attract skilled ◇ Opportunity for
industry and applicant their competitors
◇ Have a misappropriation engineers to gain their old
numerous of old of costs and prospect
customers ◇ Ineffectivity of customers
consultation
Alternative Courses
of Action
1. Customer's Perspective
2. Financial Perspective
3. Work Redesign and People
Management
Customer's Perspective
Pros Cons
◇ focuses on the ◇ disregarding the employee's
customer's needs and value.
complaints.
Financial Perspective
Pros Cons
◇ can monitor and control ◇ focuses only on financial
the flow of funds inside aspect but doesn't guarantee
the company as well as the customer satisfaction of
the costs incurred their work.
Work Redesign and People
Management
Pros Cons
◇ Increase productivity ◇ These strategy will be
and better work more costly since
performance. additional benefit
packages will be given to
employees.
Recommendation
We recommend the ACA 3. Having work redesign and people management can
greatly contribute productivity of the company having minimal errors because
qualified employees will be recruited and trained to be more efficient and effective
in the workplace. Thus, providing customers a service no better than they deserve
 
CASE #4:
Jamieson Drugs,
4 Inc.
Overview
◇ Jamieson Dugs, Inc. is one of the top pharmaceutical companies in
the country and has been in the industry for more than 25 years.
Along with the company’s coping with the demands and expectations
from their customers to maintain its position in the industry is a
significant turnover of its sales personnel.

Reason of resignation % Sales Rep Total


Better prospects outside 20
New Hires 170
the country
Will apply as call center 25 Tenured 80
agents Total 250
Tires and will try other 30
fields
Leading a family life 25
Heavy workloads for the
percent
remaining sales personnel
Decreased in sales by 2

Effect of significant
turnover of its sales
personnel
Newly hired employees were
hired for the sake of keeping
Manpower Magnate
up its manpower without
recruitment process to
complete regard to the
Opting on outsourcing its
qualifications demanded by
its position
Viewpoint: HR Head
Main Problem: Massive turnover of Sales
Personnel
Secondary Problem:
 Inefficient Recruitment
 Consideration of
Outsourcing to Manpower
Magnate
Objective:
To find sales personnel who will
fit the job.
SWOT Analysis
Strength Weaknesses Opportunities Threats
◇ One of the top ◇ Inefficient ◇ Outsourcing ◇ Opportunities of
pharmaceutical recruitment and employees outside
companies in the hiring the company
world ◇ Continued low
◇ Meticulous sales rate
marketing
department in
hiring
salesperson
Alternative Courses
of Action
1. Outsourcing to Magnate
Manpower
2. Improve employee
recruitment and hiring
3. Retention of employees
Outsourcing to Magnate Power
Pros Cons
◇ Reduction of cost of ◇ MM relatively new in the
recruitment and hiring recruitment function
◇ Availability of sales ◇ Excellent track record
personnel anytime unsupported
◇ Hired sales personnel might
not fit the standards of the
sales supervisor
◇ Threat to security and
confidentiality
Improve Employee Recruitment
and Hiring
Screen all potential hires carefully, taking into consideration
the work experience, educational background and skills. A
series of skills test should also be outlined.
Pros Cons
◇ Only qualified applicants ◇ Cost of recruitment and
will be employed hiring
◇ Time consuming
Retention of Employees
◇ Create an inclusive workplace in which employees
will have the sense of belongingness
◇ Adequate compensation
◇ Keep communication lines open and build trust

Pros Cons
◇ Low cost solution to high ◇ Greater efforts for each
turnover department to maintain
◇ Improved employee relationship with the
performance employees
Recommendation
ACA #3 is recommended because employees should feel that they are valuable to
the company. Current employees must be prioritized first and should always be
because they drive the company towards success or failure.

• They should be given trainings, development programs,


to further enhance their technical skills and abilities to
produce better performance.
• Keep their job interesting and fresh to avoid boredom and
lose their interest.
• Provide compensation benefits that would satisfy them.
• Support career growth and development among
employees.
 
CASE #5: Carlo
5 Recio
Overview
◇ Carlo Recio has been maintenance crew for eight years.
Carlo's uncle was a national sales manager for the infant
formula plant and arranged a part time job for Carlo, who then
finished vocational school and went on a full-time job from
janitorial to maintenance. However, the maintenance supervisor
suffered a heat stroke recently and decided to take an early
retirement at 55 years old. The plant manager told Carlo that he
is highly recommended by the maintenance supervisor. Later
on, Carlo decided to accept the position. At first, the crew likes
his supervision and respected him as a supervisor. Until, Carlo
noticed some horsing around on the job. When he pointed out
this attitude, the crew displayed certain coolness. Later on, he
sensed resentment whenever he tried to help a crew member
about a particular assignment. When it is now the time to make
important strategies that would be helpful for the plant, these
strategies to be implemented need the cooperation of the crew.
Carlo is uncertain of their support and cooperation and these
Viewpoint: Carlo Recio/ Maintenance
Supervisor
Main Problem: Horsing around the job and
unnecessary attitudes of the
maintenance crew.
Objectives: 1. To gather support and
cooperation of the crew.
2. To become more efficient
and effective supervisor.
3. To establish good supervisor-
crew relationship.
SWOT Analysis
Strength Weaknesses Opportunities Threats
◇ learns quickly ◇ lack of confidence ◇ capability to do ◇ Al who relieved
and has variety and exercise of other jobs the supervisor
of skills authority several times
◇ his uncle who is
the national sales
manager
Alternative Courses
of Action
1. Talk with the members about
their queries/ concerns/
problems.
2. More strict implementation of
sanctions/punishments.
3. Change the pattern of
supervisor's performance to a
more effective way.
Talk with the members about their
queries/ concerns/ problems.

Pros Cons
◇ Establishment of honest ◇ Some may still not support
and open and cooperate.
communication. ◇ Continuous display of
◇ Sharp perception unnecessary attitudes.
More strict implementation of sanctions/
punishments.
Pros Cons
◇ lessen the occurence of ◇ Bad relationship w/
such cases colleagues
◇ more disciplined ◇ Lesser chance for the
attitudes of members member's cooperation and
support
Change the pattern of supervisor’s
performance to a more effective way.
Pros Cons
◇ Allowing for both ◇ adjustment of the
sustained relationships maintenance crew
and sustained results.
◇ Express more authority
as supervisor
◇ win-win situation for the
company
Recommendation
We recommend the ACA# 3. The betterment of relationship between Carlo and his
crew is needed for the implementation of the strategies which will then benefit the
plant. Ample channels for two-way communication between crews and supervisor
must be established to ensure that every employee can communicate their
problems and concerns about their supervisor, at the same time, leading and
exercising authority by the supervisor for his crews. Effective supervision help the
team focus on their objectives and implements necessary strategies to achieve the
company's goal or vision.
Thanks!

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