Angelyn M.

Abajenza BSME 3A

Case 6: NORTHERN CONTAINER CORPORATION: Time to Cry

Summary

Engineer Godofredo Monsod,

Jr, general manager of Northern
Container Corporation (NCC),
was taken aback by a letter-
reply from a prospective new
customer (see Exhibit1) 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.
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.
Since its first year of operation,
Engineer Monsod worked hard
to make NCC's operation at full
capacity. The company's
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
company's
products by customers.
Engineer Monsod felt, however,
that the company needs one
more good
customer and their operations
will be at full capacity. It was in
October 1996 that Engineer
Monsod came in contact with
the general manager of a newly
established company, Mr.
Godofredo Tapiador. Engineer
Monsod was able to convince
Mr. Tapiador to order his tin
can
requirements from NCC.
In January 10, 1997, NCC's
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
indeed laid off.
It was on January 25 that
Engineer Monsod thought of
making a follow-up of the
agreement
between him and Mr. Tapiador.
A letter was sent to Mr.
Tapiador on the same day. On
January 28,
Engineer Monsod read the reply
of Mr. Tapiador.
 After a while, Engineer
Monsod composed himself and
prepared to think hard about
what
happened and what possible
remedies could be worked out.
Engineer Godofredo Monsod,
Jr, general manager of Northern
Container Corporation (NCC),
was taken aback by a letter-
reply from a prospective new
customer (see Exhibit1) 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.
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.
Since its first year of operation,
Engineer Monsod worked hard
to make NCC's operation at full
capacity. The company's
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
company's
products by customers.
Engineer Monsod felt, however,
that the company needs one
more good
customer and their operations
will be at full capacity. It was in
October 1996 that Engineer
Monsod came in contact with
the general manager of a newly
established company, Mr.
Godofredo Tapiador. Engineer
Monsod was able to convince
Mr. Tapiador to order his tin
can
requirements from NCC.
In January 10, 1997, NCC's
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
indeed laid off.
It was on January 25 that
Engineer Monsod thought of
making a follow-up of the
agreement
between him and Mr. Tapiador.
A letter was sent to Mr.
Tapiador on the same day. On
January 28,
Engineer Monsod read the reply
of Mr. Tapiador.
After a while, Engineer
Monsod composed himself and
prepared to think hard about
what
happened and what possible
remedies could be worked out.
Engineer Godofredo Monsod,
Jr, general manager of Northern
Container Corporation (NCC),
was taken aback by a letter-
reply from a prospective new
customer (see Exhibit1) 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.
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.
Since its first year of operation,
Engineer Monsod worked hard
to make NCC's operation at full
capacity. The company's
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
company's
products by customers.
Engineer Monsod felt, however,
that the company needs one
more good
customer and their operations
will be at full capacity. It was in
October 1996 that Engineer
Monsod came in contact with
the general manager of a newly
established company, Mr.
Godofredo Tapiador. Engineer
Monsod was able to convince
Mr. Tapiador to order his tin
can
requirements from NCC.
In January 10, 1997, NCC's
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
indeed laid off.
It was on January 25 that
Engineer Monsod thought of
making a follow-up of the
agreement
between him and Mr. Tapiador.
A letter was sent to Mr.
Tapiador on the same day. On
January 28,
Engineer Monsod read the reply
of Mr. Tapiador.
After a while, Engineer
Monsod composed himself and
prepared to think hard about
what
happened and what possible
remedies could be worked out.
Engineer Godofredo Monsod, Jr, general manager of Northern Container Corporation (NCC),
was taken aback by a letter-reply from a prospective new customer (see Exhibit1) 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.

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.
 Since its first year of operation, Engineer Monsod worked hard to make NCC's operation at full
capacity. The company's 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 company's
products by customers. Engineer Monsod felt, however, that the company needs one more good
customer and their operations will be at full capacity. It was in October 1996 that Engineer Monsod
came in contact with the general manager of a newly established company, Mr. Godofredo Tapiador.
Engineer Monsod was able to convince Mr. Tapiador to order his tin can requirements from NCC.

In January 10, 1997, NCC's 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 indeed laid off.

It was on January 25 that Engineer Monsod thought of making a follow-up of the agreement
between him and Mr. Tapiador. A letter was sent to Mr. Tapiador on the same day. On January 28,
Engineer Monsod read the reply of Mr. Tapiador.

After a while, Engineer Monsod composed himself and prepared to think hard about what
happened and what possible remedies could be worked out.

RED RIBBON
MANUFACTURING
CORPORATION
1201 Puting 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
Exibit 1

RED RIBBON MANUFACTURING CORPORATION

1201 Puting 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

Statement of the Problem

Engineer Monsod composed himself and prepared to think hard about what happened and
what possible remedies could be worked out.

I. Identify the Problem

 Miscommunication
 What are the reasons why the Red Ribbon Manufacturing Corporation had dealt with
another supplier other than the Northern Container Corporation?
 What are the possible remedies that Engineer Monsod could be done.

II. Analyze the Environment

 Lack of Communication between NCC and RRMC

III. Develop Viable Alternatives

 An efficient communication structure system

 Engr. Monsod should make the marketing in-charge explain why did it happen that the
RRMC has not received any response from their company about the deal which made
them deal with another supplier.
 All the departments in the company should do a regular report on their clients
 He should remind all the personnel in the company about their jobs as well as
encourage them to be more responsible.
 IV. Evaluate Alternatives

 Effective and efficient communication with the clients is vital to gain the success of the
company.
 If Engr. Monsod make the marketing in-charge explain why did it happen, then
everything will be settle and there is understanding between both companies.
 It is important that all the departments in the company should do a regular report on
the client so that they could be aware of how the company is going.
 He should remind all the personnel in the company about their jobs and encourage
them to be more responsible so that it can avoid the circumstances again.

V. Make a Choice

 He should pick the first option an efficient communication structure system.

VI. Implement Decision

 An efficient communication structure system is very important to have a successful

business. This system can help everyone within the company to be on the same page,
working, sharing and communicating to each other. Through this, every personnel in the
company can work their job efficiently and effectively as well as it gains the benefits
from the other company because if there is a communication between two companies,
then it can easy to deal or settle things.

VII. Evaluate and Adapt Decision Results

 Efficient communication structure system is the best way to solve the problem of Engr.
Monsod. This is very helpful for every company when it comes in the miscommunication
within the company as well as in the customer such as the other company like RRMC. If
there is communication within the company all workers can share and communicate
what are the problems, then they can work together to solve that problem. If there is a
communication between NCC and RRMC, the RRMC don’t need to deal with another
supplier. As this system is adapt in the company, and they explain everything what
happened then the RRMC can understand and it can be possible to deal with them
again.

Conclusion

Miscommunication within the company and from the other company can affect the business
success as well as opportunity. Communication is very important, because this is the key to build a
strong relationship with the personnel as well as the partnership from the other companies. Through
communication, people can understand and they can avoid circumstances together. Business is like our
nation the identity is communication, to build a strong foundation, and a reason to converge with the
other nation. Success and opportunity is the trophy of every company but communication is best way to
connect the companies together.