Professional Documents
Culture Documents
Edgar Lim
Time Context: July 10, 2014
I. Problem Statement
This Case Study will focus on the problem:
How Permex will address and resolve the scarcity of workforce they are experiencing after a three-
month fish ban?
STRENGTHS WEAKNESSES
Permex’s location was central to its access to Permex lacks of strong marketing
the fresh fish used in many of its products. capabilities and extensive
Permex’s facilities include its own landing pier for distribution networks as compared
the docking of local and foreign fishing boats. to its competitors.
Permex has its own complete canning machines
for the canned tuna and sardines.
Permex owned six separate warehouse
buildings, an ice plant and cold storage facility.
Permex’s modern facilities and resources
equipped the company to engage in deep sea
fishing.
Permex gives employment to 2,000 workers
during its production.
Permex satisfies higher demands to its retailer
and distributors.
Permex enjoys a price advantage over its
competitors.
OPPORTUNITIES THREATS
Permex’s “Double Triple A” award allowed Permex faced a strong competition
them to enjoy preferential status of its products from large sardine industry
in Canada. companies such as Mega Fishing
Permex is the first fish cannery recipient of the Corporation, Columbus Seafood
Golden Shell Award for export. Corporation, Universal Canning Inc.,
Permex has a greater customer satisfaction Ayala Seafood Corporation, Atlantic
due to the quality of their products. Foods Corporation, Century Pacific
Foods Inc., Seacoast Top Choice
Food Corporation, Aquatic Seafoods
Corporation and Southeast Asian
Canning Corporation.
No production can occur during the
three month fish ban.
IV. Assumption
The assumption in this case study is we believed that the Permex Producers and Exporters
Corporation does not provide alternative jobs and compensation benefits to their workers.
VI. Analysis
The following are the advantages and disadvantages of each alternative course of action:
Disadvantages:
1. Permex will have to incur additional expenses for Research and Development to produce the new
product.
2. Additional expenses for seminars and trainings for workers who are not familiar with the manufacturing
process of the new product.
3. These products will only be temporary which might not result in a not so good profitability.
4. Division of workers on producing both products.
Disadvantages:
1. Incentive plans can lead to disputes among workers since some earn more than others.
2. Hunger for money among the workers forces them to overwork, which may affect their health.
3. Significant costs will be incurred by the company.
4. For enhanced incentives, they may sacrifice quality.
Disadvantages:
1. When a candidate is selected from an external recruitment process, there is a possibility that the
candidate might have less chance of understanding the environment of the company.
2. There is a possibility that the candidate selected for the post is not worthy of the position offered and
he/she can take advantage of their position in the company.
3. It is time-consuming as most of the companies post an advertisement for their company recruitment and
will result to a higher number of applicants for the post which involves a number of processes for
selection.
4. The company needs to provide intense training for the candidates and screening a large number of
candidates consumes more money.
5. The new employee recruited may not adjust to the new environment and to the other employees in the
organization. By this way, the management may lose good employees and need to search for another.
Disadvantages:
1. The initial set up costs for fish farming may be expensive due to the installation of fish cages,
hatcheries and provision of processed fish food.
2. It requires costly excavations and channeling river water into and out of the fish ponds or tanks.
VII. Conclusion
Evaluation Criteria:
Period of Implementation – the ease of the process of implementing the alternative.
Cost – the amount incurred in the implementation of the alternative action.
Risk levels – the level of unwanted consequences that the company will suffer when implementing
this alternative.
Flexibility – the ability of the company to respond to unintended consequences and control the
outcomes once the alternative is implemented.
Feasibility – the alternatives may be accomplished with the resources currently available or
obtainable by the company.
Since we have the knowledge of which alternative course of actions are evaluated and which factors
that need to be taken into account during the evaluation, it allows us to assess the alternatives in order to
know what we need to implement as a solution. Based on the matrix above, offering employee benefits is
the best course of action in helping to address the labor scarcity experienced by Permex. Since employees
or workers are the backbone of a business entity, they have a great impact in the day to day production or
operations, appropriate compensation benefits will motivate them to stay in the company and ensuring that
they will not withdraw and transfer to another firm.
2. Designate an individual to oversee designing the employee benefits and incentives program.
Determine whether this position will be permanent or temporary.
Determine the cost of going outside versus looking inside.
Determine the cost of a consultant’s review.
4. Determine grades.
Establish the number of levels - senior, junior, intermediate, and beginner - for each job family and
assign a grade to each level.
Determine the number of pay grades, or monetary range of a position at a particular level, within
each department.
6. Develop an employee benefits and incentives administration policy. Develop and document the general
company policy.
Develop and document specific policies for selected groups.
Develop and document a strategy for merit raises and other pay increases, such as cost-of-living
adjustments, bonuses, annual reviews, and promotions.
Develop and document procedures to justify the policy (e.g. a merit raise schedule).
Meet with the employee benefits committee for review, adjustments, and approval.
7. Obtain top executives’ approval of the employee benefits and incentives program.
Develop and present cost impact studies that project the expense of bringing the present staff up
to the proposed levels.
Present data to the employee benefits committee for review, adjustment, and approval.
Present data to the executive operating committee (senior managers andofficers) for review and
approval.
Gordon College
Tapinac Sports Complex
Bachelor of Science in Accountancy
CASE STUDY:
Seasons with Work and Seasons without Pay
Members
Bugarin, Khryssa D.
Capistrano, Ricelle Jhoi S.
Dacoya, La Reigne V.
Guintu, Jewel Lloyd D.
Pasia, Jusmin Rosette M.
Quijano, Narissa Mae