CASE 6: NORTHERN CONTAINER CORPORATION: Time to Cry

INTRODUCTION:
Northern Container Corporation (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.

The general manager of Northern Container Corporation (NCC) is Engineer

GodofredoMonsod Jr. His company has been operating for only five years and is in

need of new customers with potentials of doing business with them in a long-term

basis.

The companys various departments are manned by a personnel complement

of 323, growing by 5 percent annually. The increasing number of employees is a

result of the growing patronage of the companys products by customers.

EXHIBIT 1

RED RIBBON MANUFACTURING CORPORATION

1201 Putting Bato
Taytay, Rizal

27 January 1997

THE GENERAL MANAGER

Northern Container Corporation
1526 Amihan St.
Bakod Pare, Valenzuela
Metro Manila
Dear Sir:
This is in reply to your letter dated January 25, 1997 inquiring about whether
we still consider ordering tin cans from your company.
Please be informed that since we have placed our order with your marketing
department as early as December 1, 1996 and no reply was sent to us, we deemed
it wise to deal with another company as late as January 15, 1997.
Thank you for your interest and we hope to do business with you under other
circumstances.

Yours truly,
GODOFREDO TAPIADOR
General Manager

BODY:

In January 10, 1997, NCCs production manager informed Engineer Monsod

that unless new production orders are received by his department, he will be forced

to recommend the lay-off of 12 workers in the factory. Five days later, 12 workers

were laid off.

An effective and efficient communication system requires managerial

proficiency in delivering and receiving messages. In Engr. Monsods situation, he

must first discover various barriers to communication, and then after he ascertains

the barriers he must analyze the reasons for their occurrence and develop

preventive steps to avoid those barriers. Engr. Monsod must also analyze how he

will be going to make an efficient communication system.

Without good business communication, the internal and external structure of

a business can face numerous challenges that can ultimately lead to its demise.

When a business effectively communicates to prospects and customers how its

products and services can benefit them, it converts prospects into customers. Good

communication ultimately boosts the bottom line of a business.

CONCLUSION:

Based on the information I gathered fromPorter, Michael E.An efficient

communication structure system is very important to have a successful business.

Effective and efficient communication with the clients is vital to gain the success of

the company. Lack of communication with clients will affect the flow of the contract

negotiation which can lead to the failure of it. Responses to the clients demand are

also important to be a given in a short period of time for the assessment of the

client to the company.

Communication is an important factor even in the field of business. More

time, opportunities and money are our lost through miscommunication. Thus, good

communication makes people understand each other and it gives them the chance

to meet other people.

REFERENCE:

Porter, Michael E. Competitive Strategy: Techniques for Analyzing Industries

and Competitors. Free Press, 1998.