Case Study: Filipro, Inc. Essay

I. Viewpoint Mr. Delfin Castillejos II. Time Frame July 24, 1984 III. Statement of the Problem What will Filipro, Inc. do regarding the on-going strike at Alabang and Cabuyao plants because of unfair labor practices? IV. Statement of the Objectives To resolve the problem between the management and the workers of the company To make a good relationship with some potential sources of funds such as commercial bankers and investors by giving the demands of the striking workers To develop a good employer-employee relationship V. Areas of consideration It is a company of nutritional products (milk, coffee, soya-based products, infant dietetics) The products are in demand in the market The company is steady and gainful Unfair labor practices by company management On-going strike by workers Low sales when it comes to infant formulas or baby foods (10%) Competitors in the market, the CFC and Commonwealth Foods, Inc. Well-known products Market acceptance abroad The company can introduce more health based products The company might lose the possible sources of funds due to on-going strike VI. Alternative Courses of Action Alternative 1: Improve the policies as well as the human behavior and human resource management of the company Alternative 2: Give or supplement the demand of the workers (UFE- Union of the Filipro Employees) VII. Evaluation of the Alternative Courses of Action Alternative 1: Improve the policies as well as the human behavior and human resource management for the of the company The advantages are the ff. Harmonious relationship among the management and the workers will build More investors will easily encourage to invest The disadvantages are the ff. Slow to adopt the new sets of policies and procedures More time will consume in orienting them the new management Alternative 2: Give or supplement the demand of the workers The advantages are the ff. The workers may stop from striking Workers can add more good reputation to the company by giving them their demands Rebuild good relationships between the management and the employees The disadvantages are the ff. Time consuming because it will take time to convince the striking workers Additional expenses for the company VIII. Recommendation I choose to recommend the Alternative 2. Give the demands of the workers – the Union of the Filipro Employees (UFE) concerning about the union affairs and labor practices. The management will give the right and fair treatment among the employees in Alabang and Cabuyao plants like in the other plants financially and morally. Discuss with them the workers about giving the CBA (Collective Bargaining Agreement). Although this alternative is additional to the expenses of the company, they can afford to give the demands of the workers and the members of the union. Since it is stable and profitable organization, workers can demand more financial assistance and more  benefits. They can cover up the expenses for Filipro, Inc BALANCE SHEETS December 31, 1983 and 1982 1983 1982 Increase or (Decrease) ASSETS Amount Percent Current Assets â‚ ±1,091,564,748 â‚ ±886,120,318 205,444,430 23.18% Investment in Shares of Stock 3,487,120 3,487,120 – – Property, Plant and Equipment 468,763,650 344,537,676 124,225,974 36.06% TOTAL ASSETS 1,563,815,518 1,234,145,114 329,670,404 26.71% LIABILITIES Current Liabilities â‚ ±898,609,980 â‚ ±643,186,565 Deferred Income Tax 13,147,827 5,815,718 Total Liabilities SHAREHOLDERS’ EQUITY Capital Stock 379,450,000 270,000,000 Advance Payments on stock subscriptions 3,170,657 46,250,788 Retained Earnings 269,437,054 268,892,043 TOTAL SHE 652,057,711 585,142,831 TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY â‚ ±1,563,815,518 â‚ ±1,234,145,114 IX. Action Plan Specific Activity Time Frame Person Responsible Budget Meet and discuss with the union and management the demands of the striking workers 1 week Mr. Delfin Castillejos and the union – Evaluate the financial statements of the company 1 week Mr. Jose Asperilla – Supply the demands of the workers September 1984 up to present Management – Facts of Case Description Strength Weakness Opportunities Threats Stable and profitable organization Nutritional Products Products are in demand in the market Unfair labor practices Competitors in the market (CFC and Commonwealth Foods, Inc.) Well-known products Market acceptance abroad Might lose the possible sources of funds More health based products to advertise