Case Problems..MG1 Proj
Case Problems..MG1 Proj
Case Problems..MG1 Proj
For fourteen months, Mr. Jose Naguimbing acted as general manager of Jona
Car Rental. The company has branches in Angeles City, Olongapo City and
Baguio City. The main office is located in Makati City. Jose succeeded his
brother Pedro who founded the company and was well-liked by his
subordinates. The car rental company was very lucrative when Pedro left it to
establish another business. Jose was very enthusiastic during the first few
months of his stewardship. At the fifth month, his staff members began
losing confidence in his abilities to run the firm. One time, when a purchase
order for three units of Toyota car was presented to him by the office
manager for his signature, he signed it immediately. The manager filed the
order with a dealer on the same day. The next morning, however, Jose
instructed the office manager to cancel the order. He also directed the
manager to buy three units of Mitsubishi cars from a dealer. When the
position of branch manager for Angeles City became vacant, he appointed
someone whom his immediate staff thought to be the least deserving of the
three candidates. After three months, his staff members were proven right:
the revenues of the branch was drastically reduced. Compared with a
competitor in the area, the performance of the branch was dismal. When Jose
decided to establish another branch he asked his staff to identify three
potential sites for him to choose from. He picked Laoag City. It turned out
that Laoag has the weakest potential. In contrast, the competitor who put up
a branch in Santiago City in the same year was registering substantial
revenues. Santiago City was one of the potential sites forwarded to Jose for
consideration.
QUESTIONS:
1.) What would you suggest to Mr. Jose Naguimbing to improve his
performance?
QUESTIONS:
2.) Assuming that Miguelito will welcome suggestions, what will you say to
effectively counter his arguments?
Answer: Now that his company has grow, I think he should make a
written plan for his company to be fully organized because he cant control
and organized the company by himself, he need the help of a qualified
person to do it. He need to make a written plan so that his employees will
know their functions and obligations for the company. In a written plan all the
employees will also know what to do to achieve the desired situation of Mr.
Miguelito. So the written plan will really help Mr. Miguelito to continue
running successfully his company.
The adjoining towns of Gapan, San Isidro, and Cabiao in Nueva Ecija were
identified by Mr. Rodolfo Fajardo as the right area for the proposed company:
the Hillbilly Cable Company. Together with two other former classmates,
Efren Puyat and Lamberto Buluran, they were able to raise more than P1
million as initial capital. The trio initially determined the market and technical
feasibility of the project. They were satisfied with their findings. The last
aspect that they will have to work out is the organizational set-up of the firm.
The partners agreed that the structure will depend on the various activities
inherent to the firm. So, they sat down and prepare a list of the activities
involved which are as follows:
1. Soliciting subscriptions
2. Installing cable connections to the subscribers homes
3. Billing subscribers
4. Bookkeeping and related matters
5. Procurement of transmission rights
6. Actual operation of the network
7. Receiving payments from subscribers
8. Repair and maintenance of facilities
9. Disbursement of funds
10. Coordination of the various activities
11. Securing the office and transmission facilities
12. Typing and filing
13. Delivering subscribers bills
14. Driving the service vehicle of the company
QUESTIONS:
1.) If you were assigned to draw the organization chart of the firm, how
will it appear?
PRESIDE
Answer:
NT
QUESTIONS:
1.) If you were in Ms. Sorianos position, what will you do?
Answer: If I were in Mrs. Sorianos position I will open a big hiring for the
position of the branch managers to solve the problem. I will recruit and select
qualified persons for the job and before they work for the company I will train
them properly to have a consistent and productive employees/branch
managers.
Ms. Justina Concepcion has been working for the past three years as branch
manager of Jupiter Drug Corporation in Cabanatuan City. As branch manager,
she oversees the operations of five stores located in different parts of the
city. The stores open at 8:00A.M. Each store is manned by a store manager
plus nine other employees consisting of an inventory clerk, a cashier, a utility
boy, and six salespersons. Ms. Concepcion has the full authority to hire and
fire any employee within her branch except the store managers. It was one
morning when she was browsing on various documents forwarded to her,
that she noticed four letters of resignation. The letters were prepared by two
cashiers and two salespersons. She thought that she must act quickly on the
resignations. The letters indicated reasons that she finds hard to accept. One
employee stated that he is resigning because he would attend to the needs
of the family farm. With Ms. Concepcions experience with the company, one
resignation per year is considered normal, but four resignations in a month is
too much, she thought. She immediately contacted a trusted employee to
seek out the real reasons. She found out that the two cashiers made a
written request two months earlier about swapping assignments with one
another. They said that once approved, their new assignments will bring
them within walking distance of their residences. One of the salespersons
resigning indicated that she was confused in doing her job. Most of her time
is spent on entertaining customers, but at other times, she is ordered to
perform bookkeeping functions. When she was reprimanded by the store
manager for logging in the lowest sales records, she filed her resignation.
The other salesperson resigned because he thought the store manager was
unfair to him when an amount equivalent to three days absence was
deducted from his weekly earnings. The salesperson objected by saying he
only made one day absence on account of illness. The store manager,
however, was not convinced. Ms. Concepcion is now considering the moves
she will have to make.
QUESTIONS:
1.) What possible communication errors may have been committed by the
branch manager? By the concerned store managers?
There are also physical barrier between the branch manager and the two
cashiers because Mrs. Concepcion found out that the two cashiers made a
written request TWO MONTHS EARLIER about swapping assignments with
one another. She didnt able to provide feedback maybe because of physical
barrier. A communication channel that is overload may also prevent
important information to reach the intended user. While, the possible
communication error that may have been committed by the concerned store
manager is that there is a personal barrier between the store manager and
the other salesperson. People with different values will find it hard to
communicate with each other. Poor listening habits of a receiver (store
manager) frustrate the communication efforts of the sender (salesperson)
thats why the salesperson decided to resign.
Five years ago, Mr. Narciso Cortes was hired as salesclerk by Indiana Sales, a
firm engaged in retailing and financing motorcycle sales. He was the first
employee recruited by the newly assigned manager of Santiago City branch.
When Mr. Cortes was hired, the branch was only one week old. Within five
years, the branch has a full complement of twenty persons including the
branch manager, a cashier, a credit and collection supervisor, a sales
supervisor, and a parts and services supervisor. Mr. Cortes record as
salesclerk was commendable and the branch manager was considering him
for promotion as sales supervisor. The salesclerks job consist of entertaining
inquiries from prospective customers. If a sale is made, he prepares the
various documents required including the deed sale, invoice, and receipt.
The sales supervisor, on the other hand, is responsible for overseeing the
activities of the salesclerk, the utility boy, the driver, the records clerk, the
documents clerk, and the stock clerk. Oftentimes, the sales supervisor has to
leave office at 8:00 PM due to the requirements of the job. Mr. Cortes
indicated to the branch manager that he is happy with his job as salesclerk
and he does not aspire to have bigger responsibility. The branch manager,
however, was very insistent, and he informed Mr. Cortes that next month, he
will be replacing the current sales supervisor who will be promoted as branch
manager and will be assigned to another area. Since the announcement of
the impending promotion, Mr. Cortes behavior began to change. Although
the reports he previously prepared were error-free, the ones he is currently
accomplishing are filled with some mistakes in computation. His perfect
attendance record is now marked with a few absences. He easily gets
irritated when customers ask a lot of questions. The branch manager is
perplexed and is now pondering on the wisdom of pushing through with the
promotion of Mr. Cortes.
QUESTIONS:
1.) What could be the reason for the change of behavior of Mr. Cortes?
Answer: I think the reason why Mr. Cortes suddenly change his behavior
is because he doesnt want to be promoted as a sales supervisor. If he
disappoint the branch manager about his change of behavior the branch
manager might change his decision about the promotion of Mr. Cortes.
2.) If you are the branch manager, what would you do?
When the Clark Special Economic Zone in Pampanga opened its gates for
investors in light and medium industries, the Kookaboora Container
Corporation (KCC) was among the first ten companies to locate in the zones
premises. KCC manufactures containers of various shapes and sizes which
are used by manufacturers of industrial chemicals, food products, cooking
oil, motor oil, and others. The production department of KCC is headed by
Engineer Nicolas Aisporna, a licensed mechanical engineer. He is a tickler for
discipline. When even small mistakes happen in his department, he
personally calls the offending employees and metes the appropriate penalty.
As a result, his department was judged best in efficiency. Very minimal
wastages in materials and time were recorded by the department. Under the
direct supervision of Engineer Aisporna are 10 supervisors who are graduates
of engineering courses and with an average of three years work experience.
Ten workers report to a supervisor. All of the workers are high school
graduates. All employees including the supervisors and the workers are paid
on a monthly basis. The workers, however, are required to produce a
minimum number of units per day. During slack-seasons, workers are
engaged only from 50% to 75% of their normal working hours due to lack of
sufficient job orders. No worker is laid off by the company and everyone
receives full pay. This is so because of the strong recommendation made by
Engineer Aisporna to the top management. Slack seasons last up to three
months. At the fourth month, job orders begin to pour in and everybody
starts to cover 100 % of their working time. On the seventh month of the
current year, orders were received at more than the normal capacity of the
company. For the first time since the company began operating , the
department will be required to work overtime. No additional compensation
will be given except for free meals in the evening. When Engineer Aisporma
called the departments entire workforce to a meeting, he explained the
importance of accepting the additional orders and working on them on
overtime. He said he is expecting everybody to lend a hand in the additional
effort. When he asked for comments, only one indicated his availability.
Engineer Aisporna could not believe the cold response of his subordinates. As
the hours pass by, the anger felt by Engineer Aisporna gets deeper and
deeper and he thinks he can no longer contain it. He was thinking aloud:
What kind of people are these? During periods of less work, they are not laid
off; and they dont think of it as a favor! They could not reciprocate
management kindness!
QUESTIONS:
2.) What immediate solutions may be used to solve the problem? What
long-term solutions must be put in place?
QUESTIONS:
2.) If you were Mr. Calanday, what will be your first move?
Answer: If I were Mr. Calanday my first move will be is to fired the drivers,
because if I didnt fire them, they might continue their unethical practice.
And also I will make them pay for the portion of advertising products they
take.
QUESTIONS:
1.) If you were asked to help Mr. Angeles to solve his problem, what would
you advise?
Answer: The disadvantage of this problem is that Mr. Angeles might not
finish all the works on time, during Saturdays because of the loads of work.
Also, the quality of his work might lessen because he was hurrying to finish
the work.
Case 13. CUTIE PIE FOODSHOPPE: The Name of the Game (Page
232)
After thirty years of serving the Metro Manila market, the management of
Cutie Pie Foodshoppe (CPF) decided to open branches in provincial cities.
CPFs traditional products consist of bread and cakes. After so many years of
operation, the original shop expanded its store to accommodate fast food
customers. The company also expanded its assortment of products by
adding more options in terms of variety and price. The original shop located
in Quezon City became the model for all branches. The original shop is well
patronized by customers who are either Metro Manila residents or transients.
The branches within Metro Manila are moderately successful, but most of
those in the provinces could not duplicate the performance of the original
shop. Miss Teodora Payumo, a resident of Malolos, Bulacan often dines at the
CPFs original shop. This she does whenever she goes to Manila. She has
been a faithful customer since she was a college student in one of the well-
known universities of Metro Manila. When CPF opened a shop in Malolos, Miss
Payumo anticipated the delicious meals she used to have at CPF Quezon City.
She was surprised, however, when she found out that the quality of the food
served cannot be compared favorably with those served at the original shop.
After five months of operation, the Malolos branch of CPF could not generate
enough sales to justify its continued existence. The branch manager, Isidro
Castillo, is not even aware of the case of Miss Payumo. Mr. Castillo keeps on
producing advertising posters to stimulate demand. He even hired a person
to distribute leaflets to prospective customers. The effort, however, do not
seem to produce the desired effect. Mr. Castillo sought the opinion of the
general manager in Quezon City but he could not get the insights he needed.
He was told to observe the original shop and duplicate its activities. He
thought that this will be difficult for him to do because he cannot afford to
leave even for a day his shop in Malolos.
QUESTIONS:
1.) What do you think is the problem with the Malolos branch?
Answer: The problem with the Malolos Branch is that the quality of the
foods served cannot be compared favorably with those served at the original
shop. The taste of the products might changed by the Chef of the Malolos
branch, thats why it is not good enough compared to the ones served at the
original shop.
If Miss Soriano chooses to seek additional funds from her siblings, only P30
million will be available immediately, the rest will be handed over after 12
months. If inviting new investors becomes the choice, it will take five months
of good financial work before the cash requirement comes in, assuming that
there will be a sufficient number of investors interested in buying the
companys stocks. Borrowing from banks will take a few months of
paperwork before the loaned amount is actually delivered to the company.
Miss Soriano is preparing her list of criteria before she submits her
recommendation to the board of directors.
QUESTIONS:
1.) What factors must Miss Soriano consider before she submits her
recommendation to the board?
Answer: The factors that Miss Soriano must consider before she submits
her recommendation to the board is that the various fund sources have their
own individual strengths and limitations, it is wise to find out through
analysis which will benefit the business firm most.
Answer: The other possible sources of funding are cash sales, collection
of accounts receivable, loans and credits, sales of assets, ownership
contribution and advances from customers.
CASES IN
MANAGEM
ENT1
Submitted By:
IRISH T. BARCELON
Submitted To:
Mrs. Evangeline P. Dayao