CW2 Bayani Case

8/16/2019 CW2 Bayani Case

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Bayani CaseDela Rea, Kimmi F.

Navales, Reihnier J.


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Jose Bonifacio, the majority stockholder and chairman of the board ofdirectors of Bayani Company, as dissatis!ed ith the top e"ec#tive of thecompany, a man#fact#rer of $%D screens. &he stockholders had invested'() million and the ret#rn on their investment had been poor for the past *years. +n the last meetin of the Board at the start of the year, Bonifacio

!red the chief e"ec#tive o-cer and ith Board approval/ appointedhimself as the ne C%0. 1t the !rst manaement meetin, he asked to ofthe manaers to stand #p and then !red them on the spot. 1t the b#detrevie meetin that folloed, he ripped #p the departmental b#dets thathad been s#bmitted for his revie and yelled at the manaers fors#bmittin eak tarets. 2e then ordered everyone to s#bmit ne b#dets

callin for at least 3*4 increase in sales and anno#nced that he o#ld notaccept e"c#ses for res#lts that fell belo taret.

1ndres 5abini, an %C% enineer orkin for the prod#ction manaer,discovered toard the end of the year that his boss, 5an#el Ri6al, had notbeen scrappin defective $%D screens that had been ret#rned by

c#stomers. +nstead he had been shippin them repaired/ as nec#stomers in order to avoid bookin losses and increase prod#ction o#tp#t.7#ality control had detoriorated d#rin the year as a res#lt of the hiherprod#ction rate and ret#rns of defective screens ere r#nnin as hih as384 previo#sly *4/ of the ne screens shipped. 5abini even manaed toderive an e9#ation shoin linear relationship beteen prod#ction vol#me

and ret#rns. :hen he confronted his boss ith his discovery, 5an#el toldhim to mind his on b#siness. 1nd then, in the ay of a rationali6ation for


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JoseBonifacio

1ndres 5an#el Ri6al

>majoritystockholder and

chairman of theBoard of Directorsof Bayani Company.

>%C% enineer

orkin for theprod#ctionmanaer

>%C%

enineer,boss of1ndres5abini


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5ajor 'roblems

• The stockholders had invested P50 million and the returnon their investment had been poor for the past 3 years ?the main str#le is that the !nancial capability of the companyis lo and as a res#lt it cannot compensate to the ret#rn ofinvestment that the investors sho#ld received.

• Large increase in sales is demanded. – 1s the ne C%0 of

the company Jose Bonifacio demanded an immediate b#detcallin hich re9#ires at least 3*4 increase in sales. &his problemres#lts to a str#le beteen the manaers, in fear of bein !red.

• Quality ontrol had deteriorated – this is d#e to the hiherprod#ction rate and ret#rn of defective screen ere r#nnin ashih from *4 to 384.


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'roblem

:hat ill Jose Bonifacio, 1ndres5abini, and 5an#el Ri6al do to ret#rnthe investment for the company and

stockholders itho#t aAectin theservice to their c#stomers


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Point of vie! and personal analysis of maincharacters

• "ose #onifacio$ 1s the ne C%0, he is oblied to prod#ce a better stratey inorder for the company to compensate ith the loss and satisfy the rate of ret#rnof investment amon the investors. =ince he is s#ccessf#l in dethronin thepresent C%0 he #sed his poer in order to raise the aareness of his membersthat he is the one in chare and he have a poer to do hat he think is riht for

the company. 2e acknoledes his on strenth and he doesnt acknoledeothers eaknesses.

• %ndres &abini – an ideal enineer hich as the case describe brins lory tothe company by ivin hat is d#e to the c#stomer. 2e is the one hoconfronted 5an#el Ri6al hich happen to be his boss, abo#t its ron doin ofnot scrappin defected material that as ret#rn by c#stomer b#t instead

repairin it and event#ally ship it to the c#stomer.

• &anuel 'i(al$ +n order for him as a manaer to reach the taret salescond#cted by the C%0 he does hat it takes to increase the sale and conceal theloss. By this doin he is deprivin the c#stomer to et hat is d#e to them.


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%thics

+++. 'rofessional 0bliations

%nineers shall be #ided in all their relations by the hihest standards of honesty andinterity.

**. 2e shall #phold the honor and dinity of his profession and avoid association inresponsibility for ork ith enineers ho do not conform to ethical practices.

*(. 2e shall cooperate in e"tendin the eAectiveness of the enineerin profession and

endeavor to be ell>informed of the latest development in the profession by sharin or

e"chanin information and e"perience ith other enineers, other professionals and

st#dents and by contrib#tin to enineerin p#blications and schools and by participatin

in the activities of enineerin societies.

Relation ith Client, %mployer and laborer.

2e shall inform his client or employer of any !nancial interest on inventions, devices,

e9#ipment or any other thin, before #ndertakin any enaement in hich he may be

called #pon to decide on the #se thereof.


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)ption *E Contin#es to press#re his employees especially manaers to haveat least 3*4 increase in sales.

'rosE his company ill ret#rn the investments comin from the stockholdersithin a short period of time.

ConsE his manaers ill copy 5an#el Ri6als ron doins j#st to reach the3*4 sales of $%D screens and some ill resin from the company for thepress#re their C%0 as iven to them

)ption +E talk to his employees that there is an alternative ay to ret#rn theinvestment to the stockholder like ho#se to ho#se sell of $%Ds and avoidscrappin defective $%D screens.

'rosE the company ill have the tr#st of their c#stomers aain.

ConsE the ret#rn of investment from the $%D screen ill take lon period of

time.,olutionE +n every company, the c#stomers are their n#mber 3 priority. :e

Jose Bonifacio


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)ption *E if confrontation is not eno#h, a report to the hiher personnel ithin thecompany sho#ld be considered.

'rosE proper service and e9#ipment ere bein iven to the c#stomers and he canachieve a reard for bein honest.

ConsE +f the hiher personnel consider the ay of 5an#el Ri6al in solvin problems. &hereis a possibility that 1ndres 5abini ill lose his job.

)ption +E inore the problem and s#pport hat his boss are doin abo#t the problem.

'rosE 2e ill maintain his job

ConsE the 7#ality control ill contin#e to deteriorate.

,olutionE %ven tho#h there is a possibility that he ill lose his job e ill o for 0ption3. 1ndres mabini is an enineer he is f#lly aare that %nineers shall be #ided in all theirrelations by the hihest standards of honesty and interity. C#stomers sho#ld be the mainpriority of their company if more c#stomers ill be #nsatis!ed it can r#in the rep#tation ofthe company and as the present sit#ation of the company they ill never be compensate

ith the ret#rn of investment. &he orst is the company ill fall.

1ndres 5abini


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)ption *E Contin#e to implement his stratey and !re 1ndres 5abini.

'rosE he ill maintain his job and achieve the taret oal. 2e ill et rid of 1ndres5abini bein hindrance ith his plan.

ConsE the company ill lose one honest enineer.

)ption +E 2e ill make #p his mind and do hat is j#st.

'rosE the c#stomers ill et hat is d#e to them.

ConsE if he ill not achieve the iven taret sales. 2e ill lose his job.

,olutionE :e ill o for 0ption it is ood to start doin the riht thin early.5an#el sho#ld instead think of a better stratey that ill not harm the riht of thec#stomer maybe he can ask help to his collea#e. &here is alays another ay.1nd also if he contin#e to do his stratey more problem ill occ#r ith thec#stomers and event#ally he ill also lose his job so he better take the risk.

5an#el Ri6al

Documents

CW2 Bayani Case