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CASE 4 (Module)

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  CASE 4: BITS AND PIECES INTERNATIONAL CORPORATION: Little Things Mean a Lot Background of the Problem The Bits and Pieces International Corporation is one company that is succeeding and is very fast growing in four years since its Certificate of Incorporation was approved. The company is producing various injection molded plastic products classified as consumer and industrial. Growth has been part of its agenda for the next few years. The company classified as a manufacturing corporation, operates on two activities: 1) production of stocks to be sold at the local market and 2) production as a subcontractor. At current output levels, the company was declared profitable. An analysis of the company’s market poten tial convinced the management to consider expansion. They still lack sound and well-thought business plan in order to achieve sustained growth. Statement of the Problem    What is the most effective organizational structure for the expansion of the company?    W hat could be the best way to make the company’s sales force?      What could be the most appropriate solution to easily distribute the labor in the company as it expands? Objectives      To comment on the on the proposed new solutions.    To review on the proposed organization chart.    To prevent the company from having too much pressure in dealing with the customers.    To adapt the changing environment as the company expands. SWOT Analysis Strengths    The company attains success and continues on growing in just few years.      The company added a new product line (tissue holder).      The company made provisions for improving its facilities including land, building, machinery and equipment.  Weaknesses    BPIC does not maintain a sales force.    The location of the plant and the office. Opportunities    If Engr. Lagayan, together with the key officers planned a new and effective organizational structure, then the company would have better workflow.    If the company added the new line product, then the profit of the company might increase.    If the company maintains sales force, then the company can transact business to their customers much faster and they can open more opportunities. Threats    If the company doesn’t have effective organizational structure, then the company’s success would messed u p.   o   There would be disarray amongst workers and employees, leading to inefficiency.      If the company doesn’t maintain sales force, then the company will have difficulties in dealing with their customer as it expands.    Alternative Courses of Action (ACA) ACA#1: Accept the proposed organization chart and new positions. The proposal needs to be reviewed first by the key company officers because the general manager might have some mistakes. If the key officers find it effective then the implementation of organizational structure must be done. Advantages:    There would have smooth workflow in the company.      The employees would know their respective leaders.  Disadvantage:    The cost for the salary of employees will increase.  ACA#2 Provide building for offices near the plant or vice versa. Since the location of the plant and the office of BPIC is quite far, it is better to build structures near each other. Advantage:    Faster transaction with the customers.  Disadvantage:    The cost of building the structures is needed.  ACA#3 Maintain a sales force. Hire a Sales Manager for the growing number of sales especially with the addition of tissue holders to the product line. To be able to be called managers, they must have subordinate officers to exercise their authority. Advantage:    The company can transact business to their customers much faster and more efficient. Disadvantage:    The cost for the salary of employees will increase.  Recommendation The organizational structure is very important in the company. It helps the company to have a smooth workflow. It is recommended to have a different organizational structure from the suggestion of Engr. Lagayan for the BPIC.  Fish Bone Work Plan Step 1: Research for the most appropriate and effective way to distribute labor. Step 2: Planning of organizational chart. Step 3: Presentation of proposed organizational chart, new positions and the planned provisions of the company. Step 4: Revision and evaluation of proposed organizational chart and positions. Step 5: Implementation of proposal. Step 6: Hiring of employees.  Gantt chart Note:  The hiring process will continue until qualified employees are hired.  References Medina, R., (1999) Engineering Management Injection Molding Machine. Available from (accessed 08/13/14) De Guzman, D., Organizing Technical Activities Case Study  . Available from (accessed 08/10/14) Brain Candy Quotations. Available from (accessed 08/10/14) Plan of Action 1 st  Week 2 nd  Week Research Planning of Org Chart Presentation of proposal Revision and Evaluation Implementation Hiring   Office and plant are far from each other. Lack of proper Organizational structure appropriate for expansion. ORG STRUCTURE PLACE Ineffective Production of the Company PEOPLE Lacking of sales force. Lacking a well-thought method of distributing labor to employees. METHOD
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