Submitted by: Oguis, Froebel A. Rebleza, Jessa C. Salomsom, Lorema S. Tinoy, Mary Grace D. Ugmad, Rodel
Submitted to: Engr. Maria Socorro Decierdo
Background of the Problem:
Engineer Godofredo Monsod, Jr., General Manager of Northern Container Corporation (NCC), was taken aback by a letter-reply from a prospective new customer. His company has been operating for only five years and is in need of new costumers with potentials of doing business with them in a long-term basis. NCC is engaged in the manufacture of general and sanitary tin cans, cooking oil filling facilities and moulds and dies fabrication. Its factory and administrative office is located at Valenzuela, Metro Manila. Since its first year of operation, Engineer Monson worked hard to make NCCs operation at full capacity. The companys various departments are manned by a personnel complement of 323, growing by five percent annually. The increasing number of employees is a result of the growing patronage of the companys products by the costumers. Engineer Monsod felt, however, that the company needs one more good costumer and their operation will be at full capacity. It was an October 1996 that Engineer Monsod came in contact with the general manager of a newly established company, Mr. Godofredo Tapiador, Engineer Monsod was able to convince Mr. Tapiador to order his tin can requirements from NCC. In January 10, 1997, NCCs production manager informs Engineer Monsod that unless new production orders are received by his department, he will be forced to recommend the lay-off of 12 workers of the factory. Five days later. 12 workers were indeed laid off. It was January 25 that Engineer Monsod thought of making a followup of the agreement between him and Mr. Tapiador. A letter was send to Mr. Tapiador on the same day. On January 28 Engineer Monsod read the
reply of Mr. Tapiador. After a while, Engineer Monsod composed himself
and prepared to think hard about what happened and what possible remedies could be worked out. Statement of the Problem: What was the shortcoming of Northern Container Corporation to the Red Ribbon Manufacturing Corporation and