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Module 4

Module 4 focuses on case analysis, aiming to equip students with skills to understand, analyze, and prepare case studies, including strategic analysis. It outlines the components of a case analysis, such as identifying the central issue, setting objectives, and developing an action plan, while emphasizing the importance of systematic and logical approaches. The document also provides a practical example involving Eastern Bank, highlighting the need for efficient loan collection and branch reduction.
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0% found this document useful (0 votes)
3 views16 pages

Module 4

Module 4 focuses on case analysis, aiming to equip students with skills to understand, analyze, and prepare case studies, including strategic analysis. It outlines the components of a case analysis, such as identifying the central issue, setting objectives, and developing an action plan, while emphasizing the importance of systematic and logical approaches. The document also provides a practical example involving Eastern Bank, highlighting the need for efficient loan collection and branch reduction.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

MODULE 4

CASES ANALYSIS

INTENDED LEARNING OUTCOMES


Particularly at the end of this module, the students should be able to:

 understand the different parts of a case analysis;


 analyse and prepare a given case;
 understand the different parts of a strategic analysis;
 develop a strategic analysis paper; and
 analyse cases according to a given format.

LET’S LEARN

Conducting Case Analysis

Oftentimes, organizations are confronted with problems that need solutions.


There are different modes of handling such concerns, one of which is the case
method. Adopted by successful leaders and managers, the case method has gained
popularity for its versatility and functionality.

A case is essentially a situation that requires a decision. It may be business,


technical, or administrative in nature. Cases may be any of the following: an
enumeration of factual data, a presentation of interrelated information, a pointing out of
critical issues and urgent concerns, or an indication of pressing problems. To resolve
a case, a systematic, logical, and formal process is involved. This is the case method.
The case method consists of various cognitive activities like interpretation, analysis,
and synthesis of facts and situations. More specifically, the case method endeavours
to do the following:

1. develop in the individual the ability to investigate minute details that are
significant to the organization;

2. enhance the individual’s problem solving skills, analytical adeptness, and critical
thinking.

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3. Develop in the individual the ability to make important decisions based on
factual data in the context of the organizational, local, and global environments;
and

4. Provide the individual the opportunity to make proactive plans competently.

There are important considerations to remember in coming up with a good case


analysis. They are the following:

1. The individual has to clearly understand what the case is all about.
Identification of the basic issues, concerns, or problems is essential.

2. Supporting facts, exhibits, and appendices have to be carefully investigated.


The extent and degree of the impact of these details to the real issue at hand
have to be determined.

3. Analysis of the case has to be conducted in the context of the prevailing


situation.

4. Objectivity is required in the solution of a case.

5. Lastly, to help the individual understand and analyse the case, it is helpful to
underline important facts and take down notes.

Contents of a Case Analysis

A case analysis generally comprises the following components arranged in this


order:

1. Title of the Case


2. Time Context
3. Perspective
4. Central Issue
5. Statement of Objectives
6. Areas of Consideration: Internal Environment (Strengths/Weaknesses)
External Environment (Opportunities/Threats)
7. Alternative Courses of Action
8. Decision Matrix
9. Conclusions
10. Recommendations
11. Action Plan

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Time Context

Time context in the case method refers to the duration of the case. All cases have
to be studied and solved with time as an important consideration. In some instances,
what is considered as practical, advantageous, relevant, and best today may not have
been 30 years ago. Furthermore, certain decisions arrived at may have become moot
and academic due to changes and developments whether organizational, local, or
global. In other words, stating the specific period in solving a case is necessary.

Perspective

In analysing and solving the case, the individual states specifically from whose
point of view he/she is looking at the case. It is highly recommended that the
standpoint chosen by the individual be that someone credible, competent, and with the
rightful authority and power to make decisions. In short, it can be from the perspective
of the president, vice-president for operations, the marketing, finance, or human
resource manager or supervisor. The outlook of an outsider is never acceptable.

Central Issue

Every case involves a problem or a situation that requires a corresponding


solution or course of action. Care should be taken in clearly identifying the real or root
issue because many of these issues may be insignificant or trivial. A central issue is a
condition that necessitates a resolution. It may be dilemma, an uncertainty, or simply
a major concern that needs to be addressed, but not necessarily to be corrected.
Sometimes, only improvements, enhancements, or realignments are needed. When
taking a course of action, here are the steps to follow:

a. Analyse the central issue. Look into the facts that brought about this concern.
One way of doing this is to discover obvious signs that are worth analysing like
decrease in sales and number of customers, increase in the number of rejects
and complaints, low market share, outmoded equipment and facilities,
inefficiency of employees, lack of financial resources, and other organizational
concerns. In fact, all of these can be categorized into five major aspects: Are
the concerns related to labor, materials, methodology, machinery, or money?
Here, labor refers to human resources; materials refer to raw materials and
other supplies; methodology refers to process; machinery refers to equipment
and facilities; and money refers to compensation, benefits, and incentives.

b. Look for other related details. Who are the people involved? What are the cost
considerations? What is the degree of gravity of the problem? What are the
managerial, operational, financial, human resources, technological, or
environmental implications?

c. Prioritize these problems according to impact on the organization and according


to the degree of importance, urgency, and criticality. Impact can be classified
into: (5) to a very great extent, (4) to a great extent, (3) to a moderate extent, (2)
to a least extent, and (1) to a very least extent. Problems are considered

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important because they have to be solved. Concerns are urgent when there is
a need to attend to them immediately. Finally, they are considered critical if the
individual, department, or organization has little or no capability to address them
all.

Statement of Objectives

The statement of objectives enumerates the specific goals to be achieved. It


helps to determine which alternative courses of action can be taken to solve the case.
Set objectives should essentially possess the following features: specific, attainable,
realistic, and time-bound (SMART).

Areas of Consideration

Having identified the central issue and having set the specific objectives, the next
step is to look into the areas of consideration. The areas of consideration are the facts
of the case. They are dominant variables in the organizational, local, and even global
environments that may have contributed to the problem or may have been the root
cause of the central issue itself. These areas of consideration are related in one way
or another to any of the different functional areas of the organization like finance,
production, operations, marketing, or human resource. To make the analysis more
comprehensive and complete, a SWOT analysis is recommended. The term, SWOT
stands for strengths, weaknesses, opportunities, and threats. Both strengths and
weaknesses are internal to the organization while opportunities and threats are
external.

Alternative Courses of Action

Once the areas of consideration have been analysed, the individual comes up
with alternative courses of action. An alternative is an option to take or a choice to
make. Alternative courses of action possess the following characteristics:

a. They are mutually exclusive with no redundancies or overlaps; they are


independent of each other.

b. They specify the period.

c. They are realistic, relevant, and appropriate.

Decision Matrix

Having enumerated the alternative courses of action, the individual comes up with
a decision matrix. A decision is a judgment, a resolution, or a conclusion to make. In
competently arriving at a decision, a standardized point of reference can be applied to
justify the conclusion. A good criterion is a combination of important measures like the
risk involved if one were to choose a particular course of action, the costs entailed to
implement the decision, the benefits derived, and the ease of implementation. In
assessing each alternative course of action, a rating scale from 1 to 5 is used with five
being the highest and one, the lowest.

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a. For risks, 5 is the least risky and 1 is the most risky.

b. For costs, 5 is the least costly and 1 is the most costly.


c. For benefits derived, 5 is the most beneficial and 1 is the least beneficial.

d. For ease of implementation, 5 is the easiest to implement and 1 is the most


difficult to implement.

Table 12.1 Decision Matrix Table

Alternatives 1 2 3
Variables
Risks Involved
Costs Incurred
Benefits Derived
Ease of Implementation
Total

Conclusions

The one that yields the highest accumulated point score is the recommended
conclusion. Take note that one can choose not to agree with it.

Recommendations

Once the evaluation has been completed and the conclusion has been arrived at,
the corresponding recommendations can be given. Clearly state your
recommendations.

Action Plan (Gantt Chart)

An action plan should accompany your recommendations. It is a program of


activities that includes the following: the activities to be implemented, the objectives to
be attained, the department, division, or unit involved, the persons responsible, the
costs involved and other resources needed, and a timetable. The Gantt chart is an
operational calendar of activities that shows the specific periods of each activity.
These activities are expressed in terms of number of days, weeks, months, and years.
Gantt charts allow for concrete evaluation and time-bound monitoring of progress
and/or completion of stated activities. It specifically pinpoints the bottlenecks and
inefficiencies that cause non-completion. On the other hand, it shows the successful
advancement and conclusion of jobs well done. Using the case method, the following
organization development case can be analysed.

Strategy Case: Eastern Bank

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Eastern Bank is a young universal bank in the country. Managed by qualified
bankers, the bank can be proud of its roster of top and middle managers who are
competent, business-oriented, and non-politicized. For the past few years, they have
embarked on a mass computerization program. Each branch is equipped with a state of
the art computerization infrastructure. Hence, their processes and operations are
efficient and accurate. Moreover, Eastern Bank has a dynamic human resource
program. Their employees are approachable and accommodating. Given the changing
environment and stiff competition in the universal banking industry, the top, and middle
managers of Eastern Bank are characteristically proactive. They review their strategic
plans periodically and as the need arises. In fact, they have set aside a percentage of
their quota for agribusiness loans.

To capture a bigger slice of the market, Eastern Bank established branches in many
locations that were oftentimes redundant and unprofitable. Because of this aggressive
stance, Eastern Bank today is confronted with problems arising from over-expansion.
These concerns include non-collection of overdue loans and unethical behaviour
displayed by a few of its employees. Analyze the facts presented in this case. What
solution can you propose to address the issue/issues at hand? Use the case method.

Title of the Case: Eastern Bank


Time Context: January 2015
Perspective: Executive Vice-President

Central Issue: Although Eastern Bank is managed by competent bank officials and
employees, non-collection of loans is major problem. It has to be
prioritized and urgently addressed by the bank. A minor issue, although
as important, is the existence of too many branches of Eastern Bank.

Statement of Objectives:
1. To address non-collection of loans
2. To solve the existence of too many branches

Areas of Consideration:
1. Non-collection of loans: Eastern Bank has many outstanding loans due to non-
collection.
2. Too many branches: Eastern Bank over expanded itself by establishing too
many satellite branches.

Decision Matrix:
Alternatives
Variables
Efficient collections of loans Reduction of branches
Risks 4 3
Costs 3 1
Benefits 5 4
Ease of Implementation 1 2
Total 13 (highest) 12

6|Page
Conclusions: The main problem of Eastern Bank is inefficient collection of loans,
followed by the presence of many satellite branches.

Recommendation: At the moment, Eastern Bank should prioritize efficient collection of


loans. An action plan or Gantt chart can be prepared. Second,
Eastern Bank should study seriously the strategy to undertake
structural changes in the form of reduction of its satellite branches.

Action Plan: Efficient collection of loans


Persons
Activities Objectives Division Costs Time
Responsible
Formation of To form dynamic Finance
regional collection and result Finance Officer, Estimated
2 weeks
teams. oriented Department Collection Pxxxx
collection teams Department
Review existing To review Finance
loans that are due existing loans Finance Officer, Estimated
2 months
for collection that are overdue Department Collection Pxxxx
for collections Department
Strategize To design Collection
collection of different ways to Collection team leaders
Estimated
loans. collect Project 6 months
Pxxxx
outstanding Team
loans
Periodic To review Collection
evaluation of monthly the Collection team leaders
Estimated
collection extent of Project Monthly
Pxxxx
progress collection Team
undertaken

Gantt Chart Year 20____

Activities Jan Feb Ma Apr May June Jul Aug Sept Oct Nov Dec
r
Formation of x
regional collection
teams
Review existing x x x
loans that are due x
for collection
Strategize collection x x x x x x x xx x x x x
of loans
Periodic evaluation
of collection x x x x x x x x x
progress

Having studied the factors existing in the environment, namely, social, political,
legal, economic, technological, and environmental, and having understood the effects

7|Page
of these factors, the change in organizations and the need to pursue organization
development are to be studied next.

LET’S SEE WHAT YOU HAVE LEARNED

Activities

Cases

Directions: Study each case in the succeeding pages. Apply the case method
for each using the table below as a guide.

Title of the Case:


Time Context: State the period of the study
Perspective: From whose point of view are you looking at the problem?
Central Issue: What is the MAIN PROBLEM?
Statement of Objectives: Write your set objectives
Areas of Consideration: Based on your set objectives, what are your areas
of consideration?
Alternative courses of Action: Having determined your major areas of
consideration, what are your alternative
courses of action?
Decision Matrix: In assessing each alternative course of action, a rating
scale from 1 to 5 is used (with 5 being the highest and 1, the
lowest). For risks involved, 5 is the least risky and 1 is the
most risky; for costs to be incurred, 5 is the least costly and
1 is the most costly; for benefits derived, 5 is the most
beneficial and 1 is the least beneficial; and for ease of
implementation, 5 is the easiest to implement and 1 is the
most difficult to implement. Add to get the total and the one
that yields the highest accumulated point score determines
your final decision. Your final decision is your conclusion.
Alternatives
Variables
1 2 3
Risks
Costs
Benefits
Ease of Implementation
Total
Conclusions:
Recommendations: What suggestions can you give?

8|Page
Action Plan: Make an action plan. It should include separate columns for
activities to be implemented, objectives to be attained, the
department, division, or unit involved, the persons responsible,
the costs involved and other resources needed, and the time
frame.
Persons
Objective
Activities Division Responsibl Costs Time
s
e
1.
2.
3.
Gantt Chart: Another alternative is to prepare a Gantt chart. This includes
the operational time frame of your activities.
Activitie Jan Fe Mar Ap Ma Jun Jul Au Sep Oc No Dec
s b r y e g t t v
1.
2.

Case 1. St. George University

St. George University is a prestigious institution of higher learning in the


country. It offers preschool, secondary, and tertiary education. Its
undergraduate programs include business courses like accounting, marketing,
economics, and management; science courses like biology, nursing, medical
technology, chemistry, mathematics, zoology, and botany; and liberal arts
courses like psychology, communication arts, foreign service, interdisciplinary
studies, and political science. In existence for more than a hundred years, the
university has created its own quality brand image. Although conservative in its
management outlook, it has successfully sustained its enrolment figures.
Situated in a large city, it lies in a four-hectare land. Its rooms are all air-
conditioned and its laboratory facilities are complete. Its campus has been
given a lift to provide an atmosphere conducive to learning. Tuition fees are
competitive. Moreover, the university has dormitories to accommodate students
from the provinces.

Recognized by both the commission on Higher Education (CHED) with an


autonomous status, and the Philippine Accrediting Association of Schools,
Colleges, and Universities (PAASCU) with level III accreditation level, it is
considered one of the best universities in the country. St. George University
has every reason to be proud of its accomplishments. Its roster of successful
alumni is impressive. They are all over the world – doctors, lawyers,
accountants, engineers, scientists, educators, executives, government officials,
community leaders, ambassadors; name it and the University can proudly call
them its own.

9|Page
However, the past few years turned out to be the most challenging
moments in the history of St. George University. With the worsening economic
conditions in the country, the University is seeing a slow consistent decrease in
enrolment. A number of students are transferring to other universities good and
professionally competent faculty members are ”moonlighting” in other
institutions of higher learning; salary rates are uncompetitive and its once
modern facilities have aged with time. Furthermore, there is low morale among
teachers and students and the leadership of top and middle school
administrators appears to be “wanting,” thus causing relationships to turn sour.
As a result, one or two course programs were removed from the university
brochure. These precarious concerns cause administrators, faculty, staff, and
alumni grave trepidations.

As University President, what strategies will you undertake to deal with the
situation? Use the case method to come up with an action plan.

Case 2: Fresh Choice

Fresh Choice is a family-owned corporation engaged in multifaceted fishing


business activities. Among these related businesses are commercial fishing, cargo
freight forwarding, cold storage, and tuna processing.

For commercial fishing, Fresh Choice catches fishes and other seafood for profit.
With 35 small vessels and 15 ships used for this purpose, the company fishes in the
sea and far into the ocean. Fresh Choice hires a total of 580 employees: fishermen,
staff, supervisors, and managers. Some of these personnel conduct researches and
develop improved techniques on how to catch only their targeted marine animals to
avoid catching unwanted and endangered species, and to likewise study the marine
conditions of the waters to ensure that marine ecosystems are not destroyed. The
company harvests a wide variety of marine animals from tuna, salmon, cod, carp,
mackerel, to crabs, shrimps, squids, lobsters, and other fish and seafood species.
Fishing methods range from hand-casting nets, few pot traps to a huge fleet of
trawlers, dredges, hooks, lift nets, and others.

In existence for the last 45 years, Fresh Choice has been enjoying good business.
Its profits have consistently increased for the last 28 years. Aside from fishing, their
incomes come from other related businesses. For example, the company rents out
cold storage services to other companies that need space to hold their marine
harvests. This business activity has been lucrative for Fresh Choice. In addition, the
company is into cargo freight forwarding. Fresh Choice provides services by
organizing shipments for individuals or other companies to get their harvested fishes
and seafood to their point of destination. Lastly, Fresh Choice is a tuna processing

10 | P a g e
company. It cleans the tuna, then packs and freezes them or cabs them for sale in
supermarkets.

Some of the problems encountered by Fresh Choice Fishing Company include the
constant threat and dangers to the fishermen's lives. The variability of weather due to
climate changes poses hazards to the business. Fatalities and injuries are high in the
fishing business during severe weather conditions.

Extreme fatigue, vessel instability, flooding, ship malfunctioning, captain's


inefficiency, and other related vessel or ship disasters present occupational hazards to
fishermen. Secondly, although the fishing business provides an abundance of jobs,
security of compensation is largely dependent on whether one joins a vessel or a ship.
Pays also vary from season to season. Thirdly, increasing energy fees unpredictably
add to the operational expenses of Fresh Choice's cold storage and tuna processing
businesses. This is also true for the fluctuating gasoline prices that the company
needs to consider in their cargo freight forwarding business.

As the Vice-President of Operations of Fresh Choice Fishing Company, what


strategies will you undertake to minimize the occupational hazards confronting
fishermen and improve their compensation security? Use the case method to come up
with an action plan.

Case 3: Vifel Cooperative Bank

Vifel Cooperative Bank is a financial entity wherein its members are also the
owners and customers of the bank. Initially, a group of 35 incorporators bound
themselves to meet their common goals, objectives, and aspirations. Inspired by the
need to propagate the values of trust, self-help, self-responsibility, respect, community
spirit, equity, integrity, self-regulation, and harmony, Vifel Cooperative Bank was
founded. Vifel Cooperative Bank espouses the seven cooperative principles of
voluntary and open membership, democratic member control, member economic
participation, autonomy and independence, education, training and information, co-
operation among co-operatives, and concern for community. Today, the bank provides
a wide range of banking and financial services to its customers. This includes savings
and credit facilities like deposits, salary, teacher, housing, and auto loans, banking
accounts, and other related financial services. Membership is so far pegged at 898
and the number continues to increase.

Vifel Cooperative Bank is competently managed by an aggressive and dynamic


bank manager. Supported by a pool of financial people who are qualified and
knowledgeable in banking, trusted and responsible in handling monetary, and imbued
with involvement and commitment, the Bank has been successful in serving its
customers who happen to be its stakeholders. Through the Bank, more members are

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able to build their own homes. The opportunity to own one has been appreciably
welcomed by the members.

This has given them a sense of security and safety and more than that, a sense of
self-pride and self-respect. Auto loans likewise allow the members to purchase cars.
For parents sending their children to school, credit facilities have helped members pay
their children's tuition fees. In addition, Vifel Cooperative Bank has supported its
members in their entrepreneurial ventures. From their borrowings, some members
were able to put up their own businesses: baking and selling different types of breads,
cakes, cookies, and other pastries; selling vegetables, meat products, and fishes and
seafoods; opening franchises in mineral water, milk teas, and ice creams; and sewing
t-shirts, shorts, and dusters.

Given the successes of Vifel Cooperative Bank, debt collection has been difficult.
A number of its members have defaulted in the payment of their loans. Reasons like
lack of income and the reality of lack of knowledge in handling one's finances have
been common responses from these delinquent payers.

As branch Manager of Vifel Cooperative Bank, what strategies will you carry out to
make sure that loans are paid on time, thus decreasing significantly the percentage of
defaulted loans? Use the case method to come up with an action plan.

Case 4: Gretchen Hotel

Gretchen Hotel is a five-star upscale hotel situated in Manila. Being one of the
most popular hotels in the city, tourists and professionals frequent the place. The hotel
boasts of its historicity as shown in the delicate architecture of the past while
complemented by pieces of furniture that harmonize the entire mood. Strategically well
placed, there is an intense but gentle ambiance of artistry and national pride. This
hotel was named after the lady owner, Gretchen, who passionately worked hard to
bring the best in the domicile service.

Today, Gretchen Hotel houses 375 cleanly maintained rooms of different sizes
and three restaurants: one for fine dining, another one serves exclusively Japanese
food, and the other for casual dining. Two swimming pools invite guests (children and
adults) to relax and feel the cool water. It is supplemented by a gym for physical and
health aficionados.

On the ground floor are boutiques that sell antique items, shirts, bags, imported
cookies, medicine, and other items for casual needs. At night, one can hear a string of
soft music that soothes the otherwise tired travelers and professionals. The bar is
suitable for quiet conversations while one sips the relaxing mellow taste of the wines
served. There are rooms for meetings and other business discussions, equipped with

12 | P a g e
technology gadgets and other communication requirements. In every respect,
Gretchen Hotel is proud of its complete and state-of-the-art facilities.

Gretchen Hotel has a total of 188 employees who are stationed in various service
offices, starting with administration, front desk to concierge, bellboys, restaurants,
housekeeping, maintenance, and other service offices. They render quality services to
their customers and evidently, they are delighted with how the staff, supervisors, and
managers perform their jobs. Similarly, the daily room rates of Gretchen Hotel are
affordable, including food and other facility prices. Note that the Hotel does not impose
extra or hidden charges. They are transparent and this makes their customers happy.
While the old and current customers of Gretchen Hotel generally come back and
patronize the Hotel, it is confronted with a great challenge. Its average monthly
occupancy rate is only 48.9%.

As the Manager of Gretchen Hotel, devise strategies to help increase the Hotel's
occupancy rate. Prepare an action plan.

Case 5: Violet Dreams

Violet Dreams is a company engaged in the manufacture of dolls, pillows, and


stuffed toys: teddy bears, dogs, rabbits, elephants, whales, and others. Founded 40
years ago, the company started simply as a hobby of the owner who was then fond of
sewing and making small handcrafted giveaways. From then on, Violet Dreams
expanded to what it is today. The company has so far grown, having withstood the
economic ups and downs that the country experienced in the past.

The vision of Violet Dreams is to see that its stuffed toys are cuddled in the arms
of young children while feeling comfort and security. Thus, the company continues to
manufacture stuffed toys that are smooth, soft, and safe to touch. As a result, Violet
Dreams' products are intricately sewn in mellow and calming colors like soft blue, pink,
white, beige, light green, and others. So far, the company has successfully created this
market niche.

A sole proprietorship, Violet Dreams has no less than 95 sewers, including


designers, cutters, handcrafters, cleaners, packers, salespeople, and delivery
personnel. Except for the sewers and handcrafters who are paid by piece, the others
are paid weekly or monthly. In addition, Violet Dreams sells its stuffed toys through its
own specialty stores. So far, the company manages 12 outlets each located in one of
the leading malls in the country. Good sales are particularly generated during special
occasions like Christmas and Valentine's Day.

Although Violet Dreams' stuffed toys are considered popular birthday gifts,
maintaining 12 stores have become very challenging for the company, considering the

13 | P a g e
seasonality of its products. During the company's lean months, monetary obligations in
terms of rental payments, utilities, and salary wages have become a burden to the
company.

Hired as a Consultant, how can you help the owners of Violet Dreams given the
challenges confronting them? Using case analysis, what strategies can you propose to
help keep them financially afloat and in time profitable? Prepare an action plan.

Case 6: Rosewater Hospital

Rosewater Hospital is a medium-sized institution that provides health care and


other treatment services to patients. Situated in Manila, it was founded by a group of
professional physicians who joined hands to work for the community and the sick by
providing medical care, therapy, and other forms of medical intervention.

Rosewater Hospital is a four-storey building with 85 beds. The hospital offers


varying services in different departments. The Emergency Room is situated on the
ground floor; the Trauma Room provides acute services, including a Resuscitation
Room Bed; the Cardiology Room takes care of heart patients; while newborn babies
are in the Nursery Room. In addition, Rosewater Hospital has an Intensive Care Unit,
a Laboratory Room, other specialized wards, and outpatient departments that serve
patients who are not admitted in the hospital. Common support units include a
pharmacy, pathology, and radiology units, the Admission, Records, Information
Technology, and Accounting Offices, a canteen for dining services, and the
Maintenance, Facilities, and Security Departments. It likewise has a Doctors' Ward
where freelance physicians treat their patients in their own clinics. In other words,
Rosewater Hospital is a complete hospital.

The Hospital has 289 employees: physicians, nurses, assistants, managers, staff,
maintenance, guards, and other personnel with specialized functions. Some work for
eight hours while others work on a 12-hour shift. In a nutshell, the employees are
highly competent, approachable, and patient; hospital charges are reasonable with
quality service. Furthermore, the admission rate vis-à-vis the number of available
hospital beds is 58%.

Given this admission rate of 58%. Rosewater Hospital has to deal with high
electrical bills, considering that all rooms are air-conditioned. Secondly, the wages and
salaries of their employees are fixed costs regardless of the number of patients
admitted. Thirdly, Rosewater Hospital is compelled by law to admit any patient even if
the person is not able to make a deposit payment.

14 | P a g e
Hired as a Consultant, what suggestions can you give the Chief Executive Officer
of Rosewater Hospital to deal with these financial challenges? Prepare an action plan.

Case 7: Security Agency Philippines Security

Agency Philippines is a privately owned and operated business enterprise aimed


at providing safety and security to individuals, premises and buildings, and
businesses. It hires professional investigators, security guards, and security personnel
— their roles being to undertake reconnaissance for cases that need careful scrutiny
and to protect their persons or points of interest against theft, fire, kidnapping,
carjacking, vandalism, and other unwanted and illegal activities. These security
personnel can be unarmed or armed. However, most of them are armed. The bulk of
the business of Security Agency Philippines is placing security guards in different
establishments.

To work for the security agency, one has to have acquired a degree in the military,
criminology, or public safety, or a non-degree certificate that will assure that the
individual is equipped with the training expected of said career. In addition, the work
hour schedule of security guards is standardized at 12 hours (one shift), or eight
(hours shift + four (4) hours overtime. They are generally not allowed to sleep and sit
down, having to stand all the time unless they are on break. In many instances,
security guards work straight 24 hours and if a fellow employee is absent or not
available, they may have to work for an additional 12 hours or 36 hours in all.

Currently, Security Agency Philippines is performing well. 'It has 320 security
employees supplying the needs of 50 customers. Its clientele base is significantly
increasing. Demand is high. Its patrons are satisfied with the security services the
agency provides. However due to these pressing business opportunities and
obligations, there is a need to hire more security employees. Given the very specific
security employment requirements, availability of manpower continuously poses a
challenge to the agency.

As the Security Consultant of Security Agency Philippines, what strategies can


you suggest to address the issues confronting the company? Prepare an action plan.

Case 8: Royal Airlines

Royal Airlines is a local budget airline company. With 22 small fleets serving
domestic routes in the country, the airline company continues to enjoy open sky
privileges. Compared to regular airlines, Royal Airlines charges lower rates as typical
of budget airlines. No food is served on board unless one desires to order and pay for
it.

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The goal of Royal Airlines is to attract as many travelers as possible, thinking that
volume or higher seat rate can compensate for the low prices being charged. So far,
the company has gone into aggressive marketing. Promotions are printed in leading
daily newspapers and website booking has been highly encouraged. In fact, Royal
Airlines has its own membership club. It is their effective way of continuously touching
base with its customers while informing them of great travel discounts. Patronized by
many customers, Royal Airlines has been relatively successful. The seats are almost
always filled up; their pilots are efficient and very capable; their stewards and
stewardesses are friendly and service-oriented; the planes are clean and in good
working conditions.

However, Royal Airlines has significant customer problem. In many instances, the
planes of Royal Airlines are late in taking off and in landing. This has created great
dissatisfaction among its traveling public.

As the Marketing Manager, how do you intend to solve this problem? Recommend
strategies to tackle this issue by preparing an action plan:

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