Management Consultancy

Project No. 2: CASE ANALYSIS

Submitted by: Kaye A. Garcia

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CASE 1: WORKPLACE DRUG ABUSE

 ANALYSIS:
The case is about an employee, an administrative assistant that is having drug abuse issues that
affects her workplace. In the beginning her works turned out well but she began to show signs
of change of behavior that affects the workplace. The managers failed to give attention and
resolution to the issue in its earlier stage, they happen to notice the changes to the employee
but does not take any action to resolve it, it takes too long for them to confront her. As a result,
the drug abuse issue of that single employee leave bigger damage to the company, the
employee just quit her job immediately, leaving the position empty, and leaving a hole in the
company.

 RECOMMENDATIONS:
The company should have policies or rules and regulations before accepting an applicant, they
should add as a requirement the drug test. The company also should address to its employees
the dos' and don'ts in the workplace. The managers should also have preliminary actions in
cases that they notice change of behaviors and actions of the employees. And in cases where an
employee is caught having drugs or taking illegal drugs, consider sending them to a
rehabilitation centers or some counseling, instead of kicking just firing them.

CASE 2: MALDEN MILLS

 ANALYSIS:
The case is about the factory that burned down, two weeks before Christmas. The employees
expected that they will be unemployed since that incident, but the CEO of the Malden Mills still
extended 90 days full pay and 180 days with benefits salary for his employees that cost $25
million to Malden Mills and right after the factory is rebuilt he rehired all of his previous
employees. As a result of his actions all his employees become more productive and their
productions increases, and more business opportunities opened for them but as a drawback
Malden Mills faces so much debts that lead to bankruptcy.

 RECOMMENDATIONS:
The CEO can continue his operations of the factory having the trend of increasing productions,
in time they can pay off all the debts. And they will be earning profit in the long run. Having
established good relationship with his employees, the productivity will be increasing as years
goes by and everything that the CEO did will all pay off.

CASE 3: A STARBUCKS ON EVERY CORNER

 ANALYSIS:
The case is about the 2008 crisis that Starbucks is facing. They announced that they would be
closing 600 US stores, the problem is they no longer attract consumers, factors are they have
too much Starbucks Cafe on every corner and since they do not earn much to spend on
maintaining every stores they have, they increase the prices of their coffees that results to the
decreased of numbers of their customers. And as a result of decreasing income they will be
 closing their 600 US stores , one of the problem also is managerial turnovers, the strategy they
are applying are no longer effective to apply given the emerging trend of the industry.

 RECOMMENDATIONS:
The solution to their first problem is to lower the price of their coffees to a reasonable price so
that consumers will find their coffee worth spending. The closing of some of their stores is a
good start to re-established their financial condition, it will help them focus on their remaining
stores. It will be some kind of help if they hire new manager that is fit for the job, it may be
costly but it will be beneficial in the long run.

CASE 4: SMALL CUSTOMERS, BIG PROFITS

 ANALYSIS:
The case is about Darren Robins of Big D Custom Screen Printing, they are originally offering
their services and catering only to large orders and their business is idle once their is no large
orders so they started accepting small orders, with proper scheduling and transparent pricing as
a result of this strategy they have they earn bigger profits compare to what they earned before
when they are only catering large orders. Aside from having bigger profits they are also able to
spread out the risk in their business that benefits the business big time.

 RECOMMENDATIONS:
The company should continue this strategy they have, the company should spent every idle time
they have to a profitable operations. The more the company will offer to both small and large
orders the more profit they earn. All they have to do is to make sure that their efficiency as
workers are still present in every services they offer. And they can also try other customization
offers for their small customers for them to have choices, at the same time it can be an
attraction to other target customers.

CASE 5: SUCCESSION PLANNING

 ANALYSIS:
The case is about a family business that is looking for a successor. The Carlson Companies have
their search for successor not only internally but also externally, they don't just consider a family
member to be the successor they also search silently from outside of their family line. This
succession planning is a smart way of knowing who really deserves the position and they do it
silently in order to prevent show offs and crab mentality from those possible candidates from
the position. The external searching is indeed silent because what they already expect is that
one of the family member will be the successor, so the observation of their work will be
transparent and they will clearly find who really deserve the position.

 RECOMMENDATIONS:
 The company already did the right way of choosing their successor all they need to do is choose
wisely and properly. They should not just consider the ability and intelligence but also the
attitude and values.

CASE 6: RETIRING EMPLOYEES, LOST KNOWLEDGE

 ANALYSIS:
The case is about the retirement issue, that together with the retirement of the employee is the
lost of knowledge in a company. The moment the employee retire from their job it is also the
moment where the company lost a leg. But they can avoid this case, by letting the retiree stay
for one year longer with salary and benefits past their traditional retirement age, so that as a
senior employee they can educate the existing workforce, so that they can avoid losing
knowledge instead they are able to transfer it to the existing workforce. This is indeed a good
way of keeping the stand of the company and the quality of service and works of every
employee.

 RECOMMENDATIONS:
The company with retiring employees should apply the said pilot program, having that phased
retirement can help them revolve the knowledge inside the company. They can also have
training programs for their newly hired employees as an alternative so that they do not need the
retiring employee stay another year. And having trained the employees at early phase can help
them develop the knowledge early.

CASE 7: STRATEGIC AD SPENDING

 ANALYSIS:
The case is about spending for advertising costs due to the company's declining sales. This case
discusses that advertisements are not always effective in rising up sales, it also depends on
timing and advertising techniques, it might work for other companies but that is not always the
case. The company in this case try to use their money from franchisees for local marketing fee,
but it does not work, then they decided to let the franchisees join the campaign to attract
consumers but they will have to pay double for the payment for local marketing fees,
fortunately it works they happen to increase their sales. That strategy is way too risky, they are
just lucky that the franchisees agree on paying double for the company to have money to pay
for the ads.

 RECOMMENDATIONS:
The company should normally have separate budget allocations for marketing purposes so that
they don't need to spend money from other sources that is not exactly for advertising. The
company also should spent the money wisely, think carefully the campaign ads so it will be
effective in its first pilot in the market, trial and error is not applicable in advertising because
you are spending money and in cases where the company is in crisis where sales is decreasing
taking high risks are not advisable. So what the company need to do is make sure the ads are
effective for marketing its product to avoid waste of money.
CASE 8: TYLENOL'S 1982 SCANDAL

 ANALYSIS:
The case is about the seven people in Chicago who died after taking Tylenol, because of the
remained unknown suspect who inject cyanide on the products while it is in the shelves and
resealed it again. As an immediate action to maintain their reputation Johnson & Johnson
employed remediation strategies by immediately offering both monetary and emotional
compensation to the victims of the product tampering. They also used rectification by producing
tamper-proof bottles and an inspection system to help ensure that a similar crisis would not
happen again. Utilizing the sympathy strategy, Tylenol portrayed themselves as the unfair victim
of a malicious outside entity deflecting responsibility of the crisis from the organization to the
perpetrators of the crime. By their immediate resolve the brand survived the crisis and have
now public relations with Johnson and Johnson.

 RECOMMENDATIONS:
The company to avoid this kind of tampering should make sure that all products in the shelves
are tampering free, take some time to make sure that packaging are safe and tightly sealed and
all products that is going outside the factory are safe and sound make sure all the factory
workers are trusted employees. Do daily inspections in the factory as well as in the shelves,
check every details especially cases where the products are left with broken seals in the shelves,
remove it immediately.

CASE 9: DAVID VS. GOLIATH

 ANALYSIS:
The case is about two entity offering same dry cleaning services in the same town, one is P & G
which is a huge company and Hangers Cleaners a small dry cleaner in town. Hangers Cleaners
happen to be its direct competitor the P&G, but the small company did not stumble, instead of
out- pricing or out-spending P&G, they differentiate themselves by having van delivery service,
funny t-shirts and hangers and they embrace their customers with excellent service, they offer
them services face to face. And as a result Hangers Cleaners increased their revenue compare to
its competitor who later on close their dry cleaning services in town.

 RECOMMENDATIONS:
The company used effective strategy on how to let their customer find value in their service, it
doesn't always have to be related to the competitor. What they did is they just stick to what
their company really do, embracing every customers with excellent services hand on hand. The
company may after developing good relationships to the customer expand its business in order
to be more strong in business industry, step by step they can expand it by adding other related
services that their customers can avail aside from dry cleaning, that way they can make use of
their good reputation to expand their business.
CASE 10: MARKET EXPANSION THROUGH PARTNERSHIP

 ANALYSIS:
The case is about having partnership with successful company to help the company's own
business reach a new level in the industry. Diagnostic Hybrids, specializing in medical diagnostics
did a partnership with Quidel, a market leader in rapid diagnostics tests, by partnering with
Quidel, Hybrid Diagnostics now enjoy larger market presence and expand their customer base,
they also take advantage of better research and development resources. A big advantage with
Hybrid Diagnostics is that despite the partnership they happen to have the same key elements
and same operations and President to their company they will act as a separate subsidiary of
Quidel. As a conclusion, Hybrid Diagnostics make a smart move to avail market expansion
through partnership with Quidel.

 RECOMMENDATIONS:
The company while they are inside the partnership should learn everything they learn in the
bigger industry they belong, they should learn new strategies to adopt to the environment and
maintain good operations as one company despite being a subsidiary. Having part of a
partnership can be a advantage or disadvantage, it is either you became known or you will be
drag behind the partner company, so they have to make sure to have their own image intact to
their company, make use of the bigger market presence and larger customer base.

CASE 11: TESCO'S INTERNATIONAL EXPANSION

 ANALYSIS:
The case is about Tesco's Korean Expansion, partnering with Samsung, the leading conglomerate
in Korea. Tesco aims to build market share internationally and they become successful to build
it. Tesco make a very smart move of having expansion in rhe Korea and hiring almost 100%
Korean staffs and only 4 British employees out of 23, 000 staffs. As a result, Tesco immediately
won over shoppers in Seoul with 25% of Koreans signing up for loyalty cards and their sales
boom even in its early years of starting compare to his competitors Carrefour and Wal- Mart.
Tesco make an intelligent move of hiring Korean staffs, because his customers are Koreans so
the customers should find comfort while shopping and they can find that if they are comfortable
to approach the staffs in the store, they can easily talk to them and alproach them because they
are Korean, Tesco really made a smart move.

 RECOMMENDATIONS:
The company can maintain their good strategy, they can just add other related services taking
advantage of the customers loyalty they have. They should also maintain good relationships
with their staffs, because good quality services comes from experience, from excellent
treatment. So the more they treat the staffs nicely, the more their staffs care for their
customers. It will be a win win situation.
CASE 12: TRIUMPH IN NICHE EXPORTS

 ANALYSIS:
The case is about a bike manufacturer who finds its life by manufacturing and selling overseas.
Triumph continuously stumble in its home bases, but earn so much in its sales worldwide, its
local factories closed up but his overseas factories remained open and continuously booming. In
India, Triumph have so many demands that they struggle to meet it, because in India the middle
class find their brand as an affordable commodity. As a result Triumph become more successful
internationally than locally, concluded that their brands maybe a ghost locally but can meet the
spotlight in the other country, it maybe wasn't a need locally but may be the need in other
country.

 RECOMMENDATIONS:
The company should take advantage of the booming sales internationally and should focus on
expanding its business by exports so that they can meet their demands. Having good strategy of
focusing on those who embrace your brand can be a good move to prevent yourself losing
money on investing on places where you do not earn.

CASE 13:. BACKGROUND CHECKS FOR JOB CANDIDATES

 ANALYSIS:
The case is about background checking for job candidates. Office Drop owner is critical about his
employees, he want them to be background checked to make sure they are trustworthy because
if they happen to be accepted in the job they will be handling documents discreetly. So the
owner of the company is looking for a company who can do the background checking for him,
but some of the company just advice him to make use of his own resources for the purpose.

 RECOMMENDATIONS:
The company should put a division for Human Resource. Wherein this division will be the one
responsible for the background check of every job candidates. They will be handling the
candidates documents and requirements and they should have thorough checking process of
their documents. The company should set strict requirements and make sure they are not fake
documents, they should also assign personnel to do the background check of job candidates
through social media. That way the company don't need to outsource background checking
services from the outside.

CASE 14: EMPLOYEE ENGAGEMENT IN TOUGH TIMES

 ANALYSIS:
The case is about the top quality services that the employee of MGM Grand Hotel & Casino is
offering to its guests under the supervision of the hotel's President, Gamal Aziz. He being the
President does not work only from top, he became hands on to his employees, he asked his
employees about their insights to the whole hotel and he happen to know that the staffs are not
well informed of the happenings in the hotel every now and then so the staffs can't relate their
guest to the happenings. So what Aziz did is, he always conduct a short meeting before the start
of every shift of the staffs about daily happenings so that staff could offer more to their guest.
 As a result, the hotel improve their customer loyalty and have more return visits from their
guest.

 RECOMMENDATIONS:
The company should employ to every staff the values and thinking that their President has, that
way they can continuously improve their services that will make their guests continue loving
them and might as well those guests can recommend the hotel to their other friends and
acquaintances. That way the hotel do not need any advertising campaign the excellent services
they offer is already their key element to succession of the hotel. And also the excellent
management.

CASE 15: SOCIAL MEDIA SERVES UP CREME BRULEE

 ANALYSIS:
The case is about a man who sells his Creme Brulee through twitter. Without any marketing
budget he was able to make his business known and popular, he earn income and grow his
sales. It is because he develop customer relationships through reaching up to them asking what
flavor they want and the likes only through twitter, a very wise move he has on his pocket. As a
result he enjoys having huge amount of sales while spending $0 on marketing.

 RECOMMENDATIONS:
Having good popularity, Curtis Kimball can now asked his customers what other food they want
aside from creme brulee, so his customers can have choices and same wwith what he did with
creme brulee, he can sell it through twitter. Expansion of business can also be done with social
media that's how powerful it is now, not to think that it is FREE OF CHARGE.

CASE 16: OVERREACHING PRODUCTS, SUFFERING SALES

 ANALYSIS:
The case is about a company who offers too many variety of products in a single market that
results in a loss of favor with customers. Hickory Farms started out offering 2,500 different
products, but ended up bad. So, Hickory Farms lessen its offerings of products to 300 from 2,500
, with modern visuals, descriptions and other features, including less packaging and more
recycled content. Decreasing their products make it easier for the customers to shop, even from
online website. As a result, Hickory Farms regain its reputation and his customers with his
effective rebranding of his products.

 RECOMMENDATIONS:
The company should always maintain balance in its offering to reduce costs and gain income
from sales. Minimum product offerings can save a lot of manufacturing costs from containers to
packaging designs and in that way also they can focus on improving every product features,
instead of having so many products that they can't handle each carefully resulting to a great
loss. In business, the businessman should always take into consideration his target customers,
 what they want and how they want it to be. That way they can be wise on their business
strategies.

CASE 17: MAINTAINING CONSISTENTLY GOOD EMPLOYEES

 ANALYSIS:
The case is about a once a good employee who gets a promotion then started to slack off. Della,
the cleaner turned to be the assistant manager then a manager, the moment she become the
manager she started arriving late and other inappropriate actions happened. But instead of
confronting Della, they hired an assistant manager to clean up and compensate for the
manager's mess. When Della, never cleaned up for her act, it was just then she was fired. As a
result, the company let the problem surround the company instead of resolving it immediately
they just find some alternative to cover it up.

 RECOMMENDATIONS:
The company should make immediate resolve for this kind of cases, the situation can be avoided
by doing daily inspections and direct resolve to the issue before they become real problem to
the company. The company should always remind every employees of their duties in accordance
to their position, having higher position is not a reason to slack off.

CASE 18: RECALL CRISIS MANAGEMENT

 ANALYSIS:
The case is about the recall of every stroller sold in the US for the purpose of installing a cover
for the stroller's hinge mechanism which is sharp enough to cut through baby's finger , should
they happen to be in the wrong spot as the stroller is opened. As a luxury brand this event has
brought big damage to the brands reputation even having the fact that the recall is for the
misuse and not necessarily because of inherent defect of the stroller. But the brand happen to
escape the incident by embracing their new mission of child safety. As a result the brand, use as
an advantage their immediate recalls of the stroller to promote their new embraced mission,
the child safety.

 RECOMMENDATIONS:
The company, before launching every product should test the overall safety from every possible
incidents that may happen. Because not at all times they can escape from their negligence, even
if it is a issue of misuse and not defect, safety always comes first and manufacturers should
always consider it specially when it is a stroller which is for a baby, who's not old enough to
understand where he should put himself inside the stroller.

CASE 19: DEALING WITH LATE PAYING CLIENTS

 ANALYSIS:
The case is about a web developer who thinks that his clients is months past due of paying him
for his service, but the truth is the client have been delivering the checks to the wrong address.
 If the developer address to his client early when it is in early stage that the payment is past due
it could’ve been earlier that the issue is resolve. This case is about dealing with your clients
when they happen to be paying you late. As a result of the developers action in to the incident
the issue is resolve later than needed.

 RECOMMENDATIONS:
For the business to avoid or atleast lessen the case of late paying clients they should approach
them the moment their payment is past due so that you can remind them of their dues, and
clear any issues if their is like the incident in the case. The company can also offer discounts like
2/10;0/30, meaning they will be able to avail 2% discount if they pay within 10 days and no
discount if within 30 day period, they can also put charges for late payments. That way they can
lessen late payments and can easily deal with them with proper communications.

CASE 20: SUPPLY CHAIN DISRUPTION

 ANALYSIS:
The case is about the supply chain disruption between Nokia and Erickson when their primary
supplier of microchip, Philips plant caught to a fire. After this incident, Nokia acted swiftly and
consult every other microchip supplier of Philips and even re-engineered some of their phones
to maintain their number of supply in the market. Erickson on the other hand planned to wait
out the problem with the fire with the expectation that it wont lasts long. But Erickson loss
many months of production and many sales in the market which is now dominated by Nokia.
This resulted to a great loss of billions for Erickson and they end up just partnering with Sony to
save themselves.

 RECOMMENDATIONS:
Erickson should've apply the Supply Chain Resilience which Nokia happen to apply. Having the
knowledge of supply chain risk management is a necessity for every businesses it is a necessary
component of any supply chain. A well-handled supply chain disruption equals business
continuity.