Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.

185180 LAS 120 - G

I. Company Situation and Key Strategic Issue

Packing Packers, Inc. (PPI) is a family-owned business that is recognized as a pioneer in the local packaging
industry, particularly for rigid plastic packaging. From its humble beginnings as a producer of powder puffs and hairpins in
the 1950s, the firm has eventually developed to become a producer of packaging made out of rigid plastic and glass intended
for cosmetics and personal care use. Consistent with its commitment to product innovation and diversification, its packaging
solution services now go beyond the cosmetics market, spanning across those of food, pharmaceutical, household, and
chemical use.
As a family-run business, however, PPI’s internal structure can be regarded as one that is largely informal. This is
evidenced by its lack of established recruitment policies, inventory documentation, and defined job roles, only to name a
few. As such, there is heavy reliance on family leaders for urgent day-to-day troubleshooting concerns, which rids them of
time to address the firm’s internal deficiencies and engage in business strategy planning. While this management approach
may have been workable in the firm’s early years, its current scale of operations renders this approach unsustainable in the
long-term as potential continuity issues now come to light. Ultimately, these deficiencies are attributable to its management
team’s lack of long-term and coherent strategic planning. Now, the question arises: What strategy will best allow PPI to
pursue sustainable growth for the future in light of its current internal deficiencies?

II. Key Insights — Internal and External Analysis

The following insights made on PPI’s internal and external environment are derived from an analysis employing the
IFE and EFE Matrices (see Figures 1 and 2).
Lack of established internal structures to support integral business functions. Although production capacity has
been increased by PPI to meet growing market demand, further business development is challenged by insufficient systems
in place to support this growth (e.g. documentations, policies, or procedures). To illustrate, its sales function can be
characterized as inefficient due to gaps in inventory management and tracking, which is said to impact order completion
time of customers. It is also mentioned in the case that the firm’s decision-making is ultimately up to top management,
whose decisions are largely intuition-based and not founded on quantitative data. For a growing business such as PPI,
applying the right systems are crucial for its effective and sustainable operation in the long-term.
Company success largely attributable to family leaders’ close operational involvement. PPI maintains a
leadership position in the rigid plastic packaging industry for cosmetics. However, long-term strategic planning has long been
disregarded by its leaders due to their preoccupation with everyday administrative concerns. While this may have been
workable in the firm’s early years, its current operations scale renders this hands-on management approach as
unsustainable. In effect, micromanaging tendencies are prevalent in the firm’s corporate culture — ultimately resulting in
dependency on the skills of family leaders (e.g. supplier negotiation), difficulties in role delegation, and resistance towards
perspectives of non-family members. Should these occurrences continue, the company risks facing a dangerous competitive
advantage as future business continuity will not be guaranteed when its current leaders are no longer involved with the
business.
Positive outlook for the local rigid plastic packaging industry. With cosmetics packaging manufacturing as PPI’s
main line of business, the CAGR of 2% foreseen for the beauty and personal care industry through 2022 presents great
potential in terms of market growth for the firm. Compounding this, rigid plastic packaging is estimated to overtake flexible
packaging by an average of 3% in the Philippine market. With the firm’s value proposition centering on its customization
features, as well as options for wholesale and retail selling, the industry’s positive growth rates presents an opportunity for
the firm to strengthen its internal and operational efficiencies so they may grow and thrive alongside these market
opportunities.

III. Alternatives
Considering the circumstances PPI currently finds itself in, an analysis using the SWOT-TOWS Matrix (see Figure 3)
was utilized to devise possible strategic next steps for the firm.
Explore new markets to sell packaging solutions to. This S-O strategy leverages on the premium that the firm
places on product diversification and innovation, as emphasized by its espoused core competencies. While its existing
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

product markets already capture multiple industries, this strategy will open the firm up to a larger customer base. Not only
will this potentially present positive financial results for the company — this will also aid in the realization of its goal of
expanding its reach to industries outside of cosmetics and personal care. This S-O strategy is highly dependent on the firm’s
already established R&D and production capabilities, and will entail additional costs for market research, product
development, and production. One downside to this strategy is that the company may face a risk of stagnation or decrease in
their overall revenues given that it only comprises a small fraction of the general packaging industry’s total market share.
Furthermore, it faces the risk of competition with firms’ existing packaging suppliers with differentiation or low cost
advantages.
Perform organizational overhaul and restructuring. This W-O strategy seeks to address internal issues
surrounding PPI’s systems and infrastructures, as these are deemed essential in the firm’s overall effective operation before
further growth strategies can be pursued. The proposed restructuring will require adjustments geared towards the firm's
current mission, vision, and values (MVV), people (e.g. role assignments, management styles), and systems (e.g. inventory
tracking, recruitment). Because the firm’s old ways of working will not be sustainable in the long-term, initiating the
necessary changes within its organizational structure will address top management’s concerns on business continuity, all
while paving the way for sustainable business growth that is independent from its current management team. However, a risk
that comes with this alternative is in the challenges that come with its effective implementation, given that it encompasses a
significant portion of the business. Furthermore, potential resistance from its employees can be expected if expected changes
are not communicated properly.
Strengthen R&D and create a product line for environmentally-friendly packaging. This S-T strategy leverages on
the PPI’s strong R&D capacities and responds to global trends towards more environmentally-friendly products. This poses a
potential point of differentiation for the firm, which sets it apart from its competitors InPacking Inc. and Plastics Corp. whose
competitive advantages lie in their wide options for customization and cost competitiveness respectively. As no other firms
currently supply eco-friendly packaging options, this strategy would grant the firm a first-mover advantage. However, a
potential threat to this strategy is in regard to the fact that local acceptance for eco-friendly packaging is still in its early
stages, thereby potentially bringing about a stagnation or decline in the company’s overall revenues.
Acquire its supplier/s (Backward Integration). This W-T strategy is in response to the high bargaining power of
suppliers for firms in the packaging industry. The upside of this strategy is in the increased control it will grant PPI over its
supply chain and production efficiencies, consequently allowing the firm to achieve superior profit margins over its
competitors. Furthermore, this also aligns with the firm’s mission of providing “quality packaging solutions” as backward
integration will allow the firm to gain control over the raw materials used as inputs for its production. However, doing so may
require a large investment on the part of the firm given the size and scope of its suppliers’ businesses.

IV. Recommendation
To determine which strategy is most worth pursuing, the four (4) alternative strategies were assessed on the basis
of the weighted scores yielded from a Quantitative Strategic Planning Matrix (QPSM) (see Figure 4). The weighted scores
generated reflect the attractiveness of the proposed strategies, and were scored on the basis of how well they can contribute
to the previously defined factors within the firm’s internal and external environment.
The first strategy (S-O) is generally a risky alternative to pursue. Although it leverages on the firm’s strengths in
product innovation, diversification brings about a great risk as operational/production challenges are likely to be faced given
the firm’s already expansive product portfolio. Furthermore, investments made towards new product markets may not be
worth the while if no/minimal gains are expected in terms of the company’s market share in the total packaging industry. On
the other hand, the second strategy (W-O) seeks to address all of the internal weaknesses identified for the firm, which is
rooted in its overall lack of strategic planning. As this entails substantial adjustments to accustomed internal practices, there
runs a risk in terms of employee resistance. The third strategy (W-O) also builds on the company's internal strengths,
specifically that of R&D and product development. While expanding production to the manufacturing of
environmentally-friendly packaging may serve as a competitive edge for the firm, its poor local market potential may bring
about negative implications for the firm. Finally, the final strategy (W-T) focuses on minimizing the risks entailed by the firm’s
weaknesses and external threats. The increased production/supply control that backward integration offers is desirable,
however, the large costs that it may entail serves as a deterrent to this strategy.
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

With a weighted attractiveness (WA) score of 6.22, the recommended course of action for PPI to take is to perform
an organizational overhaul and restructuring (W-O). Among all of the alternatives proposed, this strategy bears the most
potential in terms of improving long-term company performance as it seeks to address internal issues first before other
growth strategies are pursued.

V. Implementation/Action Plan
The proposed Triple P Strategy (Planning, Performing, and Polishing) is seen to be performed over a two and a half
(2.5) year timeline. Triple P is envisioned to initiate a shift towards a management focus that is rooted in strategy and
long-term planning, as well as address the internal deficiencies prevalent in the company’s current ways of working. Note
that while the timeline being referred to marks the timeframe for the implementation of the proposed internal systems, the
change and improvement process is a continuously ongoing one.
Phase 1: Planning — Revisit organizational goals and align internal/functional systems accordingly (12
months). A formal review of the firm’s MVV is needed in order to identify items which are outdated and require changing (see
Figure 5). With the newfound direction towards strategic planning and formalized internal processes, the firm will need to
consider its current strengths and weaknesses so that it can gauge which areas do not align with this strategy and require
modifications. At this phase, gathering of feedback from a bottoms-up perspective is of utmost importance so that
employee-level insight can be fitted to the systems to be initiated. To mitigate risk of employee reluctance in voicing out their
opinions, this step can be performed through anonymous surveys or focus group discussions. From the gaps identified, the
firm can then outline a new organization structure that clearly defines decision-making authorities within departments,
employee attributes, as well as the distribution of functions within the organization. It will also need to outline which internal
systems are lacking, and which of its existing internal systems require cross-functional integration. For one, the
establishment of formalized recruitment procedures are crucial in the firm’s hiring of qualified employees, so that top
management’s micromanaging tendencies can be eliminated. Strengthening of its sales management strategies, through
functional integration with its production function, will aid in its efforts in forecasting and inventory management. With these
identified gaps as a starting point, functional management teams are able to take ownership over the functions, and are
assigned to construct change plans that will be implemented in Phase 2 of the proposed strategy.
Phase 2: Performing — Implement change plans and measure results against objectives (6-12 months). In this
phase, the execution of initiatives to address gaps identified in Phase 1 will be executed. Using the McKinsey 7S Framework
(see Figure 6) as a framework, a summary of the initiatives to be implemented are outlined below:
1. Strategy: Emphasis on long-term strategic planning; functional goal alignment; establishment of performance
metrics or key performance indicators (KPIs); strengthen R&D capabilities
2. Structure: Clear function definition and role delegation; establishment of separate functions for finance and
marketing; hiring of capable employees
3. Systems: Strengthened/improved internal processes; formalized recruitment procedure; integrated inventory
management system for operations and sales
4. Shared Values: Well-communicated business objectives; open communication channels
5. Style: Top management focus on long-term business planning while employees focus on day-to-day operational
work
6. Staff: Training of best performing employees to prepare for future succession plans; inclusion of non-family in
leadership roles
7. Skills: Provision of skills-building initiatives; putting a premium on innovative and forward-thinking applicants
during recruitment
Phase 3: Polishing — Execute necessary refinements to implementation for continuous improvement (6 months).
Once changes have already been initiated within the firm, constant evaluation of its implementation and effectiveness is
crucial. KPIs, both on a functional and company-specific level, should be periodically measured. Apart from being able to
assess current internal system performance, doing so allows for identification of gaps which can be used to refine future
process improvement initiatives — allowing the firm to get a better picture of measures it should start, continue, or stop
doing. An outline of possible functional KPIs that are aligned with the shift towards rootedness in strategy and planning are
listed in Figure 7 of the Appendix.
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

VI. Impact
Using the Balanced Scorecard (see Figure 8) to evaluate how employing the proposed strategy will impact the
company, the following outcomes can be expected:
Customer Impact. From a customer perspective, the organizational overhaul and restructuring strategy to be
employed by the firm will manifest through an increased brand awareness, improved customer satisfaction, and a broader
customer base. With its newfound focus on strategic planning, coupled with evaluations through its implementation of KPIs,
the firm’s functional operations will be able to operate more efficiently. Establishing a focused marketing department within
the organization will bring about greater market awareness of the PPI brand — coupled with its current expanse of
distribution channels, a dedicated market team will also consequently allow for a wider consumer base. Similarly,
strengthening its R&D capabilities will improve customer satisfaction, as measures in further improving product quality will
be performed.
Financial Impact. While employing the restructuring may entail additional expenses, particularly for the setting up
of internal management tools and systems within each functional area, large potential gains in profitability and long-term
business growth are foreseen for the company. A forecasted boost in revenues is to be expected, given PPI’s strong foothold
in the local rigid plastic packaging industry, coupled with its new recalibrated strategy and dedicated and capable functional
teams. Furthermore, increasing operational efficiency through the establishment of these internal systems is seen to bring
down company expenses, presenting positive gains for the company.
Company Impact (Internal Processes, Learning and Growth). The internal-oriented focus necessitated by the
proposed strategy brings about great benefit to the firm, most especially in terms of company impact. For one, its internal
inefficiencies and error-prone processes are addressed, thereby introducing best practices that will prove to be useful —
especially in terms of sustainable business development, and when succession is necessitated. Furthermore, with top
management leading the firm with a coherent direction towards strategic planning and formalized internal processes,
actions carried out in business operations are rooted in a unified strategy towards a single goal. With the adoption of new
internal systems, as well as initiatives geared towards building employees’ skills, the firm is able to invest in its human capital
and ultimately allows for sustainable business growth that will last, even beyond management of its current family leaders.

VII. Financial Analysis

Forecast Analysis. Figure 9 gives a visual representation of the upwards trend of PPI’s profitability within a 10-year
forecast horizon. The dip in profits for the year 2017 are attributed to the firm’s expansion projects for that year — including
its acquisition of a new plant, as well as hiring of additional family members. However, its profit growth is projected to exceed
its peak of approximately Php 5 million in 2016 from 2018 onwards. With the assumption that the proposed strategy will
improve its internal operations and strengthen its production, R&D, and marketing efforts, the company can expect to
cement their position as a leader in the local rigid plastic packaging industry.
Ratio Analysis. Drawing focus on the gross margin ratios of PPI and its competitors (see Figure 10), gross margin
was the lowest for PPI for both 2014 and 2015. This is indicative of the company having a high cost of goods sold (COGS)
relative to its competitors, causing its gross margins to be low. Interestingly enough, however, PPI appears to have more
efficient operations relative to InPacking, Inc. and Plastics Corp., as evidenced by its operating margins leading that of
competitors for both years. To maintain this edge over other competitors, the firm must look into areas where expenses can
be minimized as it maintains its revenue performance.

VIII. Risk Analysis

By means of employing a Risk Assessment Matrix (see Figure 10), a risk analysis was performed in order to outline
possible mitigation and contingency strategies should the identified risks take place. Overall, the organizational restructuring
strategy mainly poses potential internal problems within the firm, should its implementation be faulty. All of the risks
identified deal with matters related to change/transition management — which can be mitigated through a company-wide
communication plan for the change strategy, proper onboarding and alignment strategies, as well as test runs for internal
systems to be implemented. Among the risks identified, employee resistance poses the largest threat due to its high
likelihood and high impact. As such, it is crucial for the firm to establish the need for change, communicate this in its change
plans, and involve its employees in the planning process before implementation.
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

IX. Appendix
Figure 1: Internal Factor Evaluation (IFE) Matrix

Internal Factor Evaluation

Strengths Weight Rating Weighted Scores

Market leader for rigid plastic packaging in cosmetics 0.08 3 0.24

Diversified product lines for markets outside of cosmetics 0.13 4 0.52

Increased production capacity 0.1 3 0.3

Recent focus on process improvement (e.g. process 0.11 3 0.33

documentation)

Established R&D capabilities 0.12 4 0.48

Weaknesses Weight Rating Weighted Scores

Lack of established internal processes (e.g. inventory 0.13 1 0.13

management, recruitment)

Presence of a top-down, micromanaging culture 0.13 1 0.13

Overdependence on top management for day-to-day operations 0.12 1 0.12

Resistance to outside help for business transitioning 0.08 2 0.16

Total 1 - 2.41
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

Figure 2: External Factor Evaluation (EFE) Matrix

External Factor Evaluation

Opportunities Weight Rating Weighted Scores

Global beauty and personal care industry set to grow 0.16 2 0.32

Local rigid plastic packaging industry set to grow 0.16 4 0.64

Availability of recyclable plastics such as PP, PE, and PET materials 0.09 1 0.09
to be more environmentally-friendly

Option to outsource services of management firms 0.1 1 0.1

Potential to develop PPI’s strategic competency 0.16 2 0.32

Threats Weight Rating Weighted Scores

Fierce industry competition, each with unique selling points (USPs) 0.12 3 0.36
(e.g. more product labelling options, price competitiveness)

Suppliers’ high bargaining power 0.12 2 0.24

Global consumer trend towards more environmentally-friendly 0.09 1 0.09

products

Total 1 - 2.16
Venturina, Angela Kathryn R.
185180
OPPORTUNITIES (O)
1. Global beauty and personal
care industry set to grow
2. Local rigid plastic packaging
industry set to grow
3. Availability of recyclable
plastics such as PP, PE, and
PET materials that are more
environmentally-friendly
4. Option to outsource services
of management firms
5. Potential to develop PPI’s
strategic competency
THREATS (T)
1. Fierce industry competition;
competitors with own
competitive advantages (e.g.
more product labelling
options, price
competitiveness)
2. Suppliers’ high bargaining
power
3. Global consumer trend
towards more
environmentally-friendly
products
Figure 3: SWOT-TOWS Matrix
SWOT Matrix
STRENGTHS (S)
1. Market leader for rigid plastic
packaging in cosmetics
2. Diversified product lines for
markets outside of cosmetics
3. Increased production
capacity
4. Recent focus on process
improvement (e.g. process
documentation)
5. Established R&D capabilities
S-O
S1-O1: Market rigid plastic packaging
products in overseas markets (S1 - O1)
S2-O2: Explore other product
markets to sell packaging solutions
to (e.g. home and garden)
S3-O3: Produce environmentally
friendly packaging line and leverage
as competitive edge
S4-O2: Optimize production process
and cost-cutting via demand
forecasting
S-T
S1-T1: Leverage on firm’s competitive
edges (e.g. innovation,
personalization) to differentiate from
market
S3-T2: Identify cost-cutting
opportunities in production process
S5-T3: Strengthen R&D capabilities
and create product line for
environmentally-friendly packaging
Individual WAC 2: Packing Packers, Inc.
LAS 120 - G
WEAKNESSES (W)
1. Lack of established internal
processes (e.g. inventory
management, recruitment)
2. Presence of a top-down,
micromanaging culture
3. Overdependence on top
management for day-to-day
operations
4. Resistance to outside help
for business transitioning
W-O
W1-O1: Develop internal systems and
structures that will systematize
overseas selling plans
W2-W3-O4: Outsource services of
management firm for independent
representation in decision-making
W2-W3-W4-O5: Perform
organizational overhaul and
restructuring
W-T
W2-T1: Acquire a local competitor
W4-T2: Acquire its supplier/s
(backward integration)
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

Figure 4: Quantitative Strategic Planning Matrix (QPSM)

Explore new Perform Strengthen Acquire its

markets to organizational R&D, create supplier/s
sell overhaul and eco-friendly
packaging restructuring packaging
solutions to line

Factor Weight AS WS AS WS AS WS AS WS

S Market leader for rigid plastic 0.08 3 0.24 3 0.24 3 0.24 4 0.32
packaging in cosmetics

Diversified product lines for 0.13 4 0.52 2 0.26 4 0.52 2 0.26

markets outside of cosmetics

Increased production capacity 0.1 3 0.3 2 0.2 3 0.3 4 0.4

Recent focus on process 0.11 2 0.22 4 0.44 2 0.22 4 0.44

improvement

Established R&D capabilities 0.12 3 0.36 2 0.24 4 0.48 3 0.36

W Lack of established internal 0.13 2 0.26 4 0.52 2 0.26 2 0.26

processes

Presence of a top-down, 0.13 2 0.26 4 0.52 2 0.26 2 0.26

micromanaging culture

Overdependence on top 0.12 2 0.24 4 0.48 2 0.24 2 0.24

management for operations

Resistance to outside help for 0.08 2 0.16 4 0.32 2 0.16 2 0.16

business transitioning

O Global beauty and personal care 0.16 2 0.32 3 0.48 2 0.32 2 0.32
industry set to grow

Local rigid plastic packaging 0.16 3 0.48 3 0.48 2 0.32 2 0.32

industry set to grow

Availability of recyclable plastics 0.09 2 0.18 2 0.18 4 0.36 2 0.18

Option to outsource services of 0.1 2 0.2 2 0.2 2 0.2 2 0.2

management firms

Potential to develop PPI’s 0.16 2 0.32 4 0.64 3 0.48 3 0.48

strategic competency

T Fierce industry competition, 0.12 3 0.36 4 0.48 4 0.48 2 0.24

Suppliers’ high bargaining power 0.12 2 0.24 3 0.36 2 0.24 4 0.48

Global trend towards 0.09 2 0.18 2 0.18 4 0.36 2 0.18

Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

eco-friendly products

Total 4.84 6.22 5.44 5.26

Figure 5: Current and Proposed MVV for Packing Packers Inc.

Current Proposed

To be the leading name in the Philippines’ To be a leading name in the Philippine

cosmetics and personal care packaging general packaging industry by providing
Vision
industry, as well as a competitive player in the quality packaging solutions for multiple
global market industries

To achieve stable growth as the leading To achieve sustainable business growth by

customer-driven supplier of innovative,
competitive, and quality packaging solutions
Mission
while creating a rewarding team environment
through our design expertise, experience, and
flexibility
committing to produce packaging solutions
of superior quality and value, through
operational excellence and an empowered
workforce

1. Quality and innovation 1. Quality and innovation

2. Efficiency 2. Efficiency
Core Values 3. People 3. Leadership
4. Sustainable profitability 4. Ownership
5. Fun 5. Integrity
Venturina, Angela Kathryn R.
185180
Figure 6: McKinsey 7S Model for Gap Analysis on Packing Packers, Inc.
Current State
Strategy To be the leading name in the
Philippines’ cosmetics and personal
care packaging industry, as well as a
competitive player in the global
market
Core competencies: Innovation and
diversification, customization, and
expansive distribution channels
Business continuity as a major
concern
Lack of long-term and coherent
strategic planning
Structure Hierarchical structure;
decision-making capabilities fall on
President and Managing Director
Three main departments:
Production, finance, and general
management
Finance and marketing functions
largely informal, overseen by
Managing DIrector
Systems Lacking in established internal
systems, encompassing functions of
operations, HR, and sales among
others
Current systems dependent on
constant supervision of management
Recent focus on process
improvement via documentation
processes
Shared Values Espoused company values include:
● Quality and innovation
● Efficiency
● People
Individual WAC 2: Packing Packers, Inc.
Gap
Embed long-term and
coherent strategic planning
in business operations
Align functional goals to
overall business strategy
Establishment of KPIs to
assess functional effectivity
Strengthen R&D capabilities
Clear delegation of functions
and functional roles
Establishment of separate
functions for finance and
marketing
Hiring of capable employees
Formalized recruitment
policies with objective
standards
Well-integrated inventory
management systems for
operations and sales
Strengthen/improve other
internal systems and
processes
Top management focus on
long-term business planning
and strategy
Hiring of capable employees
Communicate overall
business strategy
Establish open
LAS 120 - G
Ideal State
To be a leading name in the
Philippine general
packaging industry by
providing quality packaging
solutions for multiple
industries
Business strategy which
evolves to changed
circumstances and new
opportunities
Commitment to core
competencies through
efficient internal operations
Management teams and
employees capable of
leading the firm,
independent from top
management guidance
Well-defined functions and
functional roles
Open communication lines
between employer and
employee
Effective information
management system
Information is shared and
functions are able to work
together effectively
Internal infrastructures in
support of these
A company culture where:
● Actions are rooted
in the company’s
overall strategy
Venturina, Angela Kathryn R.
185180
● Sustainable profitability
● Fun
Style Top management is hands on in
day-to-day operational concerns
Micromanaging culture which
decreases employee initiative
Conservative corporate culture, all
direction stemming from top
management
Resistant to help outside of family
and a select few employees
Staff Employs 700 employees as 2018
Leadership positions held mostly by
family members
Skills Observable competencies seen
within the firm include efficiency,
short-term planning, and technical
know-hows
Individual WAC 2: Packing Packers, Inc.
communication channels
Top management focus on
long-term business planning
and strategy, employees
focus on day-to-day
operations
Top management
interference kept to a
minimum
Establish open
communication channels
Top management focus on
long-term business planning
and strategy, employees
focus on day-to-day
operations
Top management
interference kept to a
minimum
Inclusion of non-family
members in management
team for
independent/unbiased views
Training best-performing
employees to prepare for
future succession plans
Provide skills-building
initiatives
Look for innovation and
forward-thinking behaviors
in recruitment initiatives
LAS 120 - G
● Long-term
thinking is
employed
● Employee insight
is valued
● Employees take
full ownership of
the roles they are
assigned to
Decreased interference of
top management in
day-to-day operations
Employees who take full
ownership of the roles they
are assigned to
Open communication
between employer and
employee
A workforce that is growing
alongside business growth
Openness to views outside
of family members
Qualified employees who
are innovative and
forward-thinking
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

Figure 7: Possible Function-Specific KPIs for Packing Packers, Inc.

Function Specific KPIs

Production ● Storage capacity

● Production capacity
● Throughput time
● Number of defects
● Number of rejects
● Order fulfillment cycle time

Finance ● Sales revenue

● Net profit margin
● Return on investment
● Return on assets

Marketing and Sales ● Market share

● Customer satisfaction index
● Price vs. industry average
● Customer retention
● Number of new customers
● Queue length
● Wait times

Human Resources ● Performance and potential (9-box grid)

● Absence rates
● Retention rates
● Talent turnover
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

Figure 8: Balanced Scorecard

Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

Figure 9: Profit Forecast for Packing Packers, Inc.

Figure 10: Ratio Analysis on Packing Packers, Inc., InPacking Inc., and Plastics Corp. for 2014-2015
Venturina, Angela Kathryn R. Individual WAC 2: Packing Packers, Inc.
185180 LAS 120 - G

Figure 10: Risk Assessment Matrix

Risk Probability Impact Mitigation Contingency

1 Employee resistance High High Employee involvement in Employee

identification of termination
change/improvement areas
Recruitment of
Creation of a change new employees
communication plan before
implementation

2 Plunge in total productivity Moderate High Proper onboarding and Dedicated

brought about by confusion alignment strategies
from newly outlined
roles/systems Test run of implementation
before company-wide
execution
training sessions
for each
functional area

3 Internal systems requiring Moderate Low Test run of implementation Revisit change
further rework/refinement before company-wide plans and refine
execution based on results

Low impact High impact

Probable 1

Improbable