Case analysis:
AZUCARERA
DE
SAN LUIS.
Submitted to:
Professor Benjamin Sandoval
BA 101, Instructor
Submitted by:
Alonzo, John Vincent
Corpuz, MabelleZinah
Cruz, Jonas Miguelito
Karunungan, Francis Louie
[AZUCARERA DE SAN LUIS ]
BA 101 Case Analysis
Morales, Ralph Paulo
Turano, Nikki Marie
Vinzon, Ramon Ma.
I.
STATEMENT OF THE PROBLEM
How will Carlo implement the said plan without negatively affecting the company’s relationship with
its employees?
*to be rephrased
II.
POINT OF VIEW
Carlo Fortunato, the newly appointed president of Azucarera de San Luis.
III.
ASSUMPTIONS
(1) Carlo is new in his position. Hence, having no influence over major changes in the company.
(2) The Board of Directors’ decision is final.
(3) All modernization proposals will be taken as is.
(4) –
(5) –
(6) --
IV.
SWOT ANALYSIS
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[AZUCARERA DE SAN LUIS ]
BA 101 Case Analysis
Strengths
Weaknesses
(1) Became president of a big multinational
(1) No actual experience in laying off employees.
(2) Newly appointed in his position.
household manufacturer.
(2) Has experienced crises in his previous
company.
(3) Executive MBA at London Business School
(4) Grew up in the place where the Azucarera
sugar mill is located.
(5) No
sentimental
attachment
with
the
employees.
V.
Opportunities
Threats
(1) Innovation in technology in the industry.
(1) Rising and highly competitive market in the
(2) Industry is very profitable.
(3)
sugar manufacturing industry.
(2) E.O #313 – Doubling the out-quota tariff
CRITICAL FACTORS OF SUCCESS
(1) Increased efficiency and lower costs of production (via ROI)
(2) Morale of employees (via productivity and evaluation)
VI.
AREAS OF CONSIDERATION
(1) Family-owned nature of the company.
(2) Employee bonds.
(3) Financing plan and findings given by the external consultants.
VII.
ALTERNATIVES
ALTERNATIVES
a. Immediate
Layoff
PROS
CONS
EXPECTED OUTCOME
-Attain all benefits of
- High risk of employee
Best: Operations will continue; All savings
reduced cost immediately
strikes and low morale
from investments will be fully realized
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[AZUCARERA DE SAN LUIS ]
BA 101 Case Analysis
b. Gradual Layoff
(Based on ROI)
- Get the highest amount
of ROI among the
proposed investments
c. Gradual Layoff
(Based on no. of
workers)
d. Gradual Layoff
(Based on
complexity of
implementation)
VIII.
- Has least effect on
employees’ morale
- The first layoff will serve
as an efficiency test on
the planned course of
action
- Ease of implementation
implementation
because of less distortion
in production process
- Bad image and
company standing
- High risk of employee
strikes and low morale,
especially from
workers in transport
t ransport
sector
- Will not immediately
reap the benefits of
proposed
modernization
Worst: Occurre
Occurrence
nce of strikes; Halt in
operations
Best: Highest savings and profits
Worst: Inefficiency in transport sector,
which would result to slowdown or
possibly a halt in operations
Best: Employees would easily accept the
change; No employee strikes
Worst: Slowdown production processes
RECOMMENDATIONS
ALTERNATIVES
(Programs)
DECISION
(Y/N/Modify)
a. Profit
Sharing
No
N/A
N/A
b. Dialogue
Modify
Were the clamors of the employees
addressed fairly by management?
Were the goals initially set by
management (profit, teamwork,
Push through with the Basic and Topmanagement level forums but modify the
one-on-one interviews into Direct
Leader-Subordinate
Leader-Subor
dinate performance
performance and
c. Casual Day
Yes
d. “Bayanihan
Awards”
Modify
e. Reverse
Mentoring
Yes
f.
Modify
leadership, etc.) achieved?
Is the project implemented
effectively?
Is the project implemented fairly?
Does it empower the employees, or
hinder their development?
Does the added knowledge
knowledge on
technology really aid in top
management decision-making?
Do the seminars improve well
roundedness?
satisfaction evaluation.
Implementation should be executed even
to the top-management.
top-management.
Budget should be lessened and prizes
should not be non-monetary (e.g. travel
packages).
Optimal scheduling should be made so as
to compromise the time for work of both
manager and employee.
Surveying should
should be done to be able to
to
know which topics would be value-adding
Other
Innovative
Training
Seminars
OBJECTIVES
RECOMMENDATIONS
and interesting to the employees
employees
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BA 101 Case Analysis
[AZUCARERA DE SAN LUIS ]
There are a number of ways Patricia Lim can tackle her problem. The first is to really convince the
Board of the effectiveness and the necessity of her proposed programs - as they have the potential to lessen
the problems that the company is experiencing as she sees them. The company is, without a doubt, strong in
terms of the size of its workforce, but its high employee turnover rate and the weakening of its manager’s
morale will prove to be detrimental to the company. Her programs are necessary to give employees
additional incentives to stay in the company. They will help keep the hardworking employees in the company
rather than them making it only a springboard to other companies. Programs like the Bayanihan award can
give employees the idea that they do have a future in the company. Reverse Mentoring and Dialogue will
improve the company’s internal communication, and in turn, foster equality, efficient relay of information
and reform the company’s hierarchic nature. If Patricia can find that ‘perfect
‘ perfect balance between introducing
groundbreaking innovation and keeping
k eeping the company’s well-kept
well-kept tradition, she will surely be able to convince
the board to implement her proposal.
Patricia will be able to sell her ideas to the Board by striking the idea of expansion. Since she knows
about the current status of the company as well as the rapidly-changing industry environment, she can tell
the board about the opportunities of using technology in the increase of competitive advantage of the firm. If
this opportunity would be capitalized upon, the firm will be left in the dust by the emerging firms who are
employing technological innovations.
One main problem in Patricia Lim’s case,
case , though, is that the outcomes of her proposed projects
normally cannot be measured quantitatively. Her projects are aimed not on increasing profits per se, but
rather, on improving employee relationships to lower employment turnover and increase productivity to
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[AZUCARERA DE SAN LUIS ]
BA 101 Case Analysis
properly utilize the employees’
employees’ capabilities. Investments should therefore be in the people, in the technology
and in arising opportunities.
The best way to quantify the results of her projects is by setting initial goals and objectives (see
chart above), then measuring its success by conducting surveys at the basic level and evaluations at top
management level. From this evaluation, Patricia could then pick out the programs that are most effective,
alter them when necessary and implement them fully.
RECOMMENDATIONS
- Highest ROI change: regarding transportation (26.8%), next is increasing boiler capacity (19%), last
is milling and steam (17.5%). Based also on complexity of task, of decreasing complexity: (1)
Transportation; (2) Milling and steam; (3) Boiling House.
- How to lessen the chances of union?
- Criteria for retaining employees:
a. Productivity measured thru evaluation
b. At least one person to be retained per family
- Diamond framework on how to buffer before you say something chever
- Attractive retirement benefits coupled with livelihood programs
- Salami method on how to separate by groups your audience
- Pre-wiring: introduce the topic before speaking to a larger audience
FURTHER RECOMMENDATION
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