Professional Documents
Culture Documents
Braun Philippines)
Case Study
Submitted to:
Prof. Nathaniel Samson
Submitted by:
Acedillo, Ma. Joanna
Aristoza, Ann Julienne
Table of Contents
I. INTRODUCTION/BACKGROUND............................................3
II. PROBLEMS........................................................................ 3
III. AREAS OF CONSIDERATION...............................................4
Strengths...................................................................................4
Weaknesses...............................................................................4
Opportunities.............................................................................5
Threats......................................................................................5
IV. COURSES OF ACTION........................................................5
Alternative 1..............................................................................5
Alternative 2..............................................................................5
V. ANALYSIS..........................................................................6
Alternative 1: Proceed with the one day workshop.......................6
Alternative 2: Elevate the corporate plan to the BOD....................6
VI. RECOMMENDATION..........................................................7
VII. IMPLEMENTATION............................................................7
Short-term.................................................................................7
Long-term..................................................................................8
VIII. CONCLUSION.................................................................8
2
I. INTRODUCTION/BACKGROUND
Ben Santos was an Accountancy graduate and an MBA degree
holder hired to be the assistant of the president of H. Braun Philippines.
He was needed to assist in the design and implementation of a formal
corporate planning system for the company. Following his appointment,
Santos had discussions with the president regarding the need for a
better planning system for the company. Subsequently, the president
formed a Strategic Planning Committee to coordinate the effort to
design the corporate planning system for HBP. Santos was the head of
the Indent Division and therefore the most senior of the division heads
in HBP, and the head of Finance and Accounting as members.
Through thorough preparation and review of the current planning
system of HBP and planning systems of the company he previously
worked on, Ben Santos Prepared and proposed a new planning strategy
which the president approved, with minor modifications. However, this
was opposed by the division managers who resisted change.
II. PROBLEMS
The main problem of the company (HBP) is with regard to it
adapting to the needed changes. The proposal of Ben Santos of a new
Corporate Planning Strategy has been met with manager dissent,
which needs to be properly addressed. Manager dissent in the face of
such a proposal would not only mean problems in the short-term but
could also be a foreshadowing of future uprising should these
managers encounter yet again something which they do not personally
favor. Their express resistance against change could be an indicator of
the company hierarchy not being well established. A poorly established
organization structure would cause the company to function
inefficiently and roughly. The main objective of the company, in the
face of this, should be in minimizing the division managers resistance
to change. Their adaptability and flexibility could prove beneficial to
the company especially in the face of an ever-changing external
environment and industry.
Upon addressing this dissent, the company also faces the
problem of how to properly and effectively employ the new Corporate
Planning Strategy. The company through its head officers and
managers should facilitate the assimilation of the corporate plan
throughout all five operations, making sure to saturate all aspects of
the company.
The addressing of all these problems through the acceptance of
the proposal and observation of the protocol, would lead to the
ultimate end-goal of the company gaining competitive edge in the
market.
Weaknesses
The current company president had no previous experience in
the Philippines
The companys guidelines were typically few. It only consisted of
prescribed budget formats and a target return on bound capital
The target ROE was uniformly set to 20%
The planning guidelines included sales growth objectives for
specific products only, which is sold by certain divisions
Bonuses for managers and employees were only paid when the
company made profits
If the employee failed to meet the profit targets, there were no
heavy sanctions enforced
Opportunities
Ben Santos compiled a set of macroeconomic indices which will
be very useful for the company
There are many hospitals and other medical institutions being
established nowadays
Increasing population in the country
Threats
The opposition of the division managers of the proposal
Changes in the economy of the Philippines
IV. COURSES OF ACTION
Alternative 1
Ben Santos and the company head could decide to proceed with the
one-day workshop, driving against manager protests and criticisms. In
the process of this one-day workshop, all they could do is hope the
managers change their mind in the face of Ben Santos explanations
regarding the Corporate Plan.
Alternative 2
An alternative course of action would be for the company to forge their
path and elevate the matter to the Board of Directors. Elevating the
matter to the BoD would leave it in the hands of those in power and
should this power be wielded, the managers have no choice but to
follow the mandate. There is also, however, the possibility that should
this plan (in form) be coming from the BoD themselves, that there be a
change in the mindset of the division managers. The plan coming from
the highest echelon of the company, may allow the division managers
to rethink their stance regarding the plan; in that, instead of thinking it
is futile and a waste of time, they may see that it could actually be
effective and may improve their operations. BoD participation would
also effectively, take the spotlight out of Ben and lessen the
antagonism against him. On top of all these, the BoD may have input
of their own regarding the plan, improving it through their experience
and deeper involvement with the company.
V. ANALYSIS
ADVANTAGES DISADVANTAGES
Provides an organizational
No flexibility
perspective
Provides knowledge in decision
Resistance to the decision
making
Enables measurement of progress Costly
ADVANTAGES DISADVANTAGES
Develop better communication High expectations
Gain control of operational
Risky
problems
Develop better internal
Costly
coordination activities
VI. RECOMMENDATION
VII. IMPLEMENTATION
Short-term
First, all materials needed to justify and defend the proposed corporate
planning system must be prepared, including general guidelines and
strategies that will help the company manage its resources and people.
Then, a consultation must be conducted in order to discuss the
proposal and receive suggestions and other concerns from the division
managers and employees. The proposed corporate planning system
shall then be reviewed and modified accordingly.
After which, a presentation shall be done to the Top Management for
the approval of the seminar and workshop, and the implementation of
the new corporate planning strategy. After the approval, the workshop
shall be conducted to tackle the implementation of the new corporate
planning system.
Long-term
After the implementation of the new corporate planning system, the
operations shall be monitored, including sales growth and return on
investment of the company. Corrective measures shall be applied if
needed.
VIII. CONCLUSION
In the face of a companys existence, it will experience multiple
problems: both external and internal. In this case, an internal problem
is encountered which may have a long-term encompassing effect on
the company. Internal problems could ultimately prove more dangerous
than external problems because conflicts, as demonstrated in this
case, are easily solved yet extremely underestimated. The division
managers fierce reaction against the corporate plan was not simply
begin and end as a negative reaction, it is an indication of a bigger
problem brewing in the company: line staff authority being ignored. In
any company, while it is a core value to bestow respect on every
position from the lowest to the highest, it is also very important to
establish authority. In the establishment of management authority
however, one must not forget to be open to employee input. Elevating
the plan to the director level is an effective manner of not only
employing the proposed plan but also of changing manager mindset
with regard to said plan. Over-all, this case shows that a well-
established organization structure, openness of a company to
employee input, and proper assimilation can help solve internal
conflicts.