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Case Analysis: NORTHERN CONTAINER CORPORATION: Time to Cry

I. Case Background
Engineer Godofredo Monsod, Jr., General Manager of Northern Container Corporation
(NCC), was taken aback by a letter-reply from a prospective new customer. His company has
been operating for only five years and is in need of new costumers with potentials of doing
business with them in a long-term basis.
NCC is engaged in the manufacture of general and sanitary tin cans, cooking oil filling
facilities and moulds and dies fabrication. Its factory and administrative office is located at
Valenzuela, Metro Manila.
Since its first year of operation, Engineer Monsod worked hard to make NCCs operation
at full capacity. The companys various departments are manned by a personnel complement of
323, growing by five percent annually.
The increasing number of employees is a result of the growing patronage of the
companys products by the costumers. Engineer Monsod felt, however, that the company needs
one more good costumer and their operation will be at full capacity. It was an October 1996 that
Engineer Monsod came in contact with the general manager of a newly established company, Mr.
Godofredo Tapiador, Engineer Monsod was able to convince Mr. Tapiador to order his tin can
requirements from NCC.
In January 10, 1997, NCCs production manager informs Engineer Monsod that unless
new production orders are received by his department, he will be forced to recommend the layoff of 12 workers of the factory. Five days later. 12 workers were indeed laid off.
It was January 25 that Engineer Monsod thought of making a follow-up of the agreement
between him and Mr. Tapiador. A letter was send to Mr. Tapiador on the same day. On January 28
Engineer Monsod read the reply of Mr. Tapiador. After a while, Engineer Monsod composed
himself and prepared to think hard about what happened and what possible remedies could be
worked out.
Sources: (Medina, R. G. (1999). Engineering Management. Manila, Philippines: Rex Bookstore.)

II. Environmental Scanning


External:

Opportunities

Threats

Economic

Product sales will increase with


the business new client(s).

More demand meaning there is a


chance the business will lack of
stock or employees.

Socio Cultural

More clients will recognize


Northern Container
Corporation and it will mean
more demand from other clients
to follow.

A lot of other companies already


sell containers which makes
plenty of competition for Northern
Container Corporation.

Internal:
Strengths

Weakness

Labor

Less people working for NCC


will be laid off because of the
business new clients.

The rate of product or supply may


not meet the demand because of
lack of workers.

Marketing

More income and investments


will come to NCC by means of
recommendations to other
companies.

False recommendations will


spread if Engr. Monsod does not
fix the situation with the other
company.

III. Statement of the Problem


Engineer Monsod is struggling on how to fix the agreement between his company
(Northern Container Corporation) and a newly target customer. If Engineer Monsod does not
convince to patch up the agreement between him and the other company then it means he will
have to let employees be laid off the company.

IV. Alternative Courses of Actions (ACA)


1. Arrange a meeting with the Gen. Manager of Red Ribbon Corporation to convince him to
take Northern Container Company as their supplier.

2. Find another client.


3. Seek clients of competitors.
V. Evaluation of ACA
Value (40%)

Cost (30%)

Risk (30%)

Total (100%)

ACA 1

13

25 (2)

ACA 2

25

20

54 (1)

ACA 3

15

21 (3)