ACTIVIDAD 1 EVIDENCIA 24

THE LPQ BUILDERS COMPANY CASE ANALYSIS

PRESENTADOS POR:
LUZ MARINA PULGARIN ARANGO
CC 42014319

PRESENTADO A.
TUTORA
AMPARO HINCAPIE BOLAOS

CENTRO DE APRENDIZAJE SENA PEREIRA / RDA

19 de febrero de 2016

CONTENIDO

The LPQ Builders is a leader company in production and distribution of building

materials. The company has a logistics network for the marketing of its products
that has been
structured based on Colombias geographical
Conditions. Its main headquarter is in Bogota city and it also has branch offices
in Buenaventura, Cartagena and Armenia. The LPQ Builders was faced to
changes in the organizational structure, which led to a redistribution of its
business units and changing its business model. In the following management
report the results of the processes carried out will be discussed, taking into
account the objectives and plans of the organization specifying in each case the
level and percentage of goals achieved by the use of indicators to display the
information provided by responsible.

ANALYSIS AND RESULTS

Therefore, from the general direction, dissemination and training processes are
led on the new strategic direction which is oriented towards the
internationalization of the products in order to encourage commitment to them.
STRATEGIC BUSINESS UNITS
1.

Administration
Detailed analysis of each case
The administration is the social science that focuses on the study of
organizations, where the planning, organization, direction and control of the
resources of an organization are developed. In LPQ Builders leads
management the board of administration, headed by general manager therefore
their work is based on meeting the aforementioned steps. The general manager
should constantly evaluate all functional areas, conducting follow-up meetings
of the management of each manager business unit, hence the difficulty
presented in LPQ was due to a problem of segregation of duties. Where there

was a failure in internal control, what the administration could not prevent or
reduce the risk of errors and irregularities presented.
Solution to problems
Management should be in constant communication with other functional areas,
shall establishing processes and procedures to control the management of the
business units. The proposed solution aims to create manuals, processes and
procedures to facilitate the activities of business units, allowing the achievement
of proper management, seeking the fulfillment of their objectives.

2.

Internationalization
Detailed analysis of each case
LPQ Builders decides to implement its internationalization processes facing
competitive challenges with foreign markets.
The business unit decided to hire a professional with 10 years exper
ience in international trade and the specific processes in the construction sector.
The new manager of internationalization hired a customs agency Level 1, for
the execution of the processes of import and export of LPQ Builders. However,
in such employment, LPQ Builders not clearly specified instructions regarding
production processes, which generated an incorrect tariff classification of
imported goods. by error the company must pay penalty customs for branch
operations in Buenaventura. As to purchase supplies that are imported by LPQ
are obtained from import goods with 5 international suppliers; however 2 of
those suppliers fail to deliver the goods with the specifications required quality,
which generates returns to the supplier. To overcome these problems the
company decided to implement the contractual clauses which indicates the
increase of the payment period from 90 days to 120 days, in order that suppliers
remedied the aforementioned drawbacks.
The manager stated that area internationalization has been in a constant search
for international suppliers to enable it to cut costs in your portfolio with mainly
Chinese suppliers. Below is presented the list of suppliers.

15 domestic suppliers

5 international suppliers

3 outsourcing companies that manage input imported processes for the

construction, distribution and international transportation of goods and the fiscal
and financial review of the organization respectively
Solution to problems
The solution in terms of business unit internationalization, must go hand in hand
with the search for products or goods quality, because not only is a lower cost, it
depends on a product of lower cost but quality.
The internationalization manager should have a broader briefcase of suppliers,
allowing to meet the needs of production, on several fronts. In addition must
select certified suppliers through a study or risk analysis, in order to ensure
effective deliveries and quality products.

3-)Human resource management

Detailed analysis of each case
This business unit planned to run two processes of training for operational staff,
in order to encourage the promotion of operational positions in different
business units. When the change in organizational structure began, the CEO
asked the department of human management, will initiate a process of training
for group business unit managers, coordinators and staff processes. This
request I cause that processes operating personnel training was postponed.
With Organizational changes, management director of LPQ demanded that staff
were qualified. Wherefore human management department conducted a review
of the professional staff, identifying 10 people in the administrative that area
have not completed career.

The management decision was without the services of five administrative

departments having less than 50% of their training. But the problem was that
the focus of training is open only to senior executives training. So operating
personnel and lower ranges aside. For example the person responsible for
verifying the load before being put into units and accommodated in the transport

vehicle, is professional but has no knowledge about the essential characteristics

that must be taken into account in an export, implying an empty in the process.
At the meeting of managers, the unit manager of Human Business says that the
department has focused on an extensive recruitment and selection process,
which has led to qualified personnel. But insists it is vital for the company to
maintain ongoing training for all staff. Then, relationship of employees is
presented.

LPQ Builders Company, human resource:

-A general manager
6 business unit managers.
area coordinators.
21 process leaders.
20 process assistants.
150 workers in storage roles, distribution, loading, unloading, inventory,
enrollment, tracking, shipping and receiving and filling out documents,
distributed in the brach offices as follows:
60 operators in Buenaventura
40 workers in Bogota
30 workers in Cartagena
20 workers in Cali
100 workers distributed in marketing, sales, administrative, financial and human
development activities.
50 people in administrative management.

Solution to problems For proper management of human talent, it is essential to

analyze the opportunities for staff development, thus LPQ should invest in the
training of its staff. Additionally occupational health helps maintain dynamically
active staff in the functional areas of the organization, in order to maintain an
adequate organizational climate. So another important point is to invest in
occupational health activities and leisure activities and organizational culture.

4.

Production
Detailed analysis of each case
The director of internationalization also directs the production area, in the
company of logistics coordinator. In this area of production are reflected in the
decisions business unit of internationalization, because the manager in order to
reduce costs, hired a specialist in international transport of goods, seeking to
centralize freight since Bogot. Due to this fact the sale of two company
vehicles is performed in order to buy software for inventory control, because it
does not have any software in the cellar document management, to control
shipments to customers national and international, which causes problems
between the branches of LPQ. The international shipping company will share
the loss percentages returned orders when showing of improper handling of
merchandise, allowing LPQ assume 50% of the costs of return in the imperfect
orders.

We used raw material in low density polyethylene in the packaging of the

goods, which has caused damage to the goods which causes devolutions by
customers. The decision of hiring international carrier, monthly 40% reduced
transport costs, which in December 2012 were $ 100 million per month. LPQ
assumes 50% of the costs of return in orders due to imperfect transport,
involving 5% of international orders and 10% of all domestic orders. Monthly,
the requested orders for finished products are 1,000 tons for the international
market and 400 tons for domestic. Returns for orders shipped internationally
from 4% of goods for damage and break the package.
Solution to problems
It is important that management believes area processes and procedures for
immediate hiring suppliers, where make a study of potential suppliers, taking
into account the risk analysis that can generate such transaction.
It must implement the application software, which allow you to do all the
document management procedures of import and export values, into shipments
and shipments of merchandise account in all venues of LPQ.
5. Marketing
Detailed analysis of each case

Market demands have required metal cutting saw, LPQ thus began a process of
market research, which seeks with a potential supplier in three countries.
However the provider was chosen, is in the nearest country to Colombia,
because that country signed a free trade agreement with Colombia. But at that
time the recruitment was done without executing a process of competitive
analysis, experience and certification provider. The reduction in transportation
costs allowed the cost of the final product had a lower cost for LPQ, which
generated most competitive prices in the international market. The marketing
manager said LPQ presented a 5% loss of customers for domestic sales, a loss
of 1% of sales from international customers. However receives a monthly value
of 10 million pesos in sales, generating 2% of the net profits per month and 6%
per year
Below is presented the list of clients.
Customers in the international market
10 clients in the European Economic Community.
10 clients in the Andean area community.
15 clients in the Americas.
2 clients in Asia
Customers in the domestic market
50clients in the Atlantic region.
50 clients in the Pacific region.
100 customers in the Andean region.
30 clients in the eastern plains region.
150 customers in the Bogots savannah.

Solution to problems
LPQ should conduct market research, where it achieves strategic decisions that
provide business opportunities, taking into account processes and procedures.
6. Finance
Detailed analysis of each case
The company decided to sell two of the four vehicles in its national fleet of
transport, because the buyer provided payment in cash, equivalent to $ 500

million, which was immediately invested in the acquisition of software to

improve the information systems of the company. The defective merchandise
that LPQ receives causes delays in delivery to customers. Additionally
generates overruns in the shipment of goods. Monthly the purchases these
providers are equal to one billion pesos, therefore when it make effective
contractual clause to the supplier you will be sanctioned with term a wider 90
days to 120 days period of
payment. Such resources are used by the company to cover late delivery orders
to customers. The manager of the financial business unit, said that in his area,
the processes have been properly handled and warned when dangerous
situations are detected.
Solution to problems
The financial problems of the area do not originate in the same, however it is
important that the financial area support, to the internationalization area,
advising on processes, procedures and strategies, financial analysis, allowing
them to meet appropriate financial indicators.
Most indicators used in organizations are:
Indicators for supply rea : Indicators for human resources rea :

Indicators for human resources rea :

financial structure : Output Indicators: The above indicators could be

used by LPQ to obtain a comprehensive and detailed analysis of the
effectiveness, efficiency, management audit and profitability, in each
functional area.

CONCLUSIONS

Looking for a proper execution of economic activity LPQ, it is suggested to use

the following indicators, which could be: Strategic Management: develops in the
direction, and its main characteristic influence the actions and decisions is
generally corporate and long term. It has to do with the definition of macro
business. Includes the company's relationship with the environment. Tactical
Management: is developed based on strategic management. The impact of
decisions and actions, medium-term, includes strategic business units. It has to
do with the initial operations of strategic decisions. Framed functions of
organization and coordination. Operations Management: developed based on
tactical management. The impact of decisions and actions is short term and
includes natural work teams and individuals. It basically has to do with the
functions of implementation and control.