Instruction: Read this case study entitled: Plastics Products and answer questions that followstheMiss Jovina Buenaarte was thirty-six years old way back 2003 when she first started plastic products. She made up her mind to operate this kind of business when her friend, a plastic maker, complained about the unavailability of plastic products in the area which are standard quality. Those that are locally made do not conform to the requirements set by various users.With a 50,000 starting capital, Miss Buenaarte proceeded to produce plastic products as bags kitchen utensils. She personally supervised the mixing of the necessary materials for productions. Because of good quality control, her products surpassed the requirements of buyers. Her sales increased considerably even if her selling prices are little higher than those of competitors.The firm soon grew into a multi-million pesos operations. The number of her employees increased to about a hundred with five assigned to administration and the rest eithers as drivers or laborers. Her market covered the entire province of LagunaMiss Buenaarte's success happened right before the eyes of her administrative staff, which since then, had the impression that success is not a hard thing to achieve.It was at this time that Miss Buenaarte tried her hand in the appliance business, where she became quite successful. However, she neglected her plastic product business and soon her employees resigned after the other. After leaving the firm, her production assistant, Mr. Noel Dela Cruz, made attempts to duplicate the feat of his former boss in the plastic products manufacturingMs, Buenaarte was not successful, however, and she is now in deep thought considering what her next move should be.Processing Questions: Instruction: Write your answers on the space provided.1. What are the problems or challenges encountered by Miss Buenaarte on her business?122. What are the steps that she can do in order to solve the business problem?3. What lesson in the story that could help us to become effective in planning and decision-making in an organization?08:25 PM
Question
Instruction: Read this case study entitled: Plastics Products and answer questions that followstheMiss Jovina Buenaarte was thirty-six years old way back 2003 when she first started plastic products. She made up her mind to operate this kind of business when her friend, a plastic maker, complained about the unavailability of plastic products in the area which are standard quality. Those that are locally made do not conform to the requirements set by various users.With a 50,000 starting capital, Miss Buenaarte proceeded to produce plastic products as bags kitchen utensils. She personally supervised the mixing of the necessary materials for productions. Because of good quality control, her products surpassed the requirements of buyers. Her sales increased considerably even if her selling prices are little higher than those of competitors.The firm soon grew into a multi-million pesos operations. The number of her employees increased to about a hundred with five assigned to administration and the rest eithers as drivers or laborers. Her market covered the entire province of LagunaMiss Buenaarte's success happened right before the eyes of her administrative staff, which since then, had the impression that success is not a hard thing to achieve.It was at this time that Miss Buenaarte tried her hand in the appliance business, where she became quite successful. However, she neglected her plastic product business and soon her employees resigned after the other. After leaving the firm, her production assistant, Mr. Noel Dela Cruz, made attempts to duplicate the feat of his former boss in the plastic products manufacturingMs, Buenaarte was not successful, however, and she is now in deep thought considering what her next move should be.Processing Questions: Instruction: Write your answers on the space provided.1. What are the problems or challenges encountered by Miss Buenaarte on her business?122. What are the steps that she can do in order to solve the business problem?3. What lesson in the story that could help us to become effective in planning and decision-making in an organization?08:25 PM
Solution
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The problems or challenges encountered by Miss Buenaarte in her business include neglecting her plastic product business when she ventured into the appliance business. This led to a decrease in the quality of her products and subsequently, her employees started resigning one after the other.
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To solve the business problem, Miss Buenaarte can take the following steps:
- Re-focus on her plastic products business: She needs to pay attention to the business that brought her initial success.
- Re-hire competent staff: She needs to replace the employees who resigned and ensure that they are well-trained to maintain the quality of her products.
- Diversify cautiously: If she wants to venture into other businesses, she should ensure that her existing business is not neglected. She could hire competent managers to oversee the operations of each business.
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The lesson in the story that could help us to become effective in planning and decision-making in an organization is that diversification should be done cautiously. Before venturing into a new business, it is important to ensure that the existing business can run smoothly without constant supervision. Also, quality control is key in any business. Once the quality of products starts to decline, customers will start to look elsewhere.
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