TOP STAR BAKERY

BUMANGLAG | DEL CAMPO | PASCUAL

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Overview
Problem Statement
SWOT Analysis
PESTLE Analysis
Alternatives & Analysis
Solution Recommended
Plan of Action
KPIs
Contingency Plans
Compa n y Ba ckground

Top Star Bakery was established.

Company Background

The company agreed to have a

medium-term contract with a local
hamburger chain.
Company Background

Top Star continued to grow with the

hamburger chain which had a total
of 20 stores.
Company Background

total number of personnel

Compa n y Ba ckground
production personnel

delivery personnel

packers

office staff
 MANAGEMENT-LABOR
RELATIONS
paternalistic company management
low labor turnover
higher salaries
various benefits
 MANAGEMENT-LABOR
RELATIONS
benefits:
free snacks for night -shift workers
emergency loan
free uniforms
free medical checkup
Overtime-sharing scheme

When a worker absented himself, his

pay for that day will be equally
distributed among all those present.
Manny bautista
PROBLEM STATEMENT
PROBLEM STATEMENT

He needs to plan how his new

scheme could effectively control
direct labor cost.
PROBLEM STATEMENT

He has to find the optimal way

of introducing his planned
changes.
s • A good relationship with
hamburger chain business partner
• More than enough workers to
reach quotas
• Low Labor turnover
• Manny’s willingness to implement
changes to better production
 • Overtime - sharing scheme
• Manny’s inexperience in the
production line

W
• Close interpersonal relationship
between employees
• External Growth of hamburger
chain business partner
O
• Family ties present an opportunity
to gain workers easily
• High dependence on the burger
chain partner
• The company’s family ties become

T
hindrances to changes
 POLITICAL
• Cory Aquino’s election
• Volatile political waters
ECONOMIC SOCIAL
• Most bakers are small • Same trends and
scale demands
• Major competitors
• Recovering economy
• Rise of Fast Food Industry
 TECHNOLOGY ENVIRONMENTAL LEGAL

• No significant innovations • Machinery, vehicles • Labor laws

• Traditional Methods
• No significant mechanical
automation
generate carbon footprint • Agricultural laws (e.g.
or sorts CARP)
• Energy crisis • Future changes in
legislation (e.g. Herrera
Law)
ALTERNATIVES
AND
ANALYSIS
 pros cons
• Opportunity to desaturate the • Will be costly
production line with non- • Will also open the company to
family related employees risks
• Opportunity to gain more
partnerships
• Opportunity to restructure the
company and implement new
systems
 pros cons
• Swift implementation of • May endanger some

changes relationships

• Cost efficient • May lead to the formation of a

union
 pros cons
• Will strengthen relationships • Separation pay for employees

through communication will be an added expense

process • Stakeholders’ bargains may

• Will ensure that laid off not align with plan

employees leave without

negative prejudice
• Plan will be carried out
eventually
 Resignation Plan
AttendancePolicies
NewOvertimeScheme
Incentive System
EmployeeSelectionProcess
 termination pay based on
Philippine Labor criteria + 10%

• standard sick leave and vacation

leave options
• AWOLmay lead to probation or
termination
 Standard overtime rate: 125%

Overtime will only be offered by the

management when necessary and
will be accommodated with a first-
come-first-serve basis to fill up
slots.
 top performing employees for
each month will be recognized

implementation of an anti-nepotism
policy
possible establishment of HR department
PLAN OF ACTION
1 Discussion with stakeholders

2 Check previous year’s attendance

3 Termination of employees
 4 Evaluation

5-11 Gradual integration of changes

12 Reevaluation
kpi • Attendance
• Overtime
• Average task completion rate
• Cycle time/ Time to Completion
• Quality of work
kpi • Direct labor costs
• Overall productivity
• Consistency
• Employee satisfaction
• Client satisfactio n
Contingency plans
In the event that an employee rejects
the offer of resignation, then Mr.
Bautista can then use his authority to
dismiss the employee.
Contingency plans
In the event that an employee rejects
the offer of resignation, then Mr.
Bautista can then use his authority to
dismiss the employee.
Contingency plans
In the event that all of the stakeholders
disagree with Mr. Bautista’s plan, he
may then suggest the expansion plan.