Case Study: Filipro, Inc.

I. Viewpoint
Mr. Delfin Castillejos

II. Time Frame
July 24, 1984

III. Statement of the Problem
What will Filipro, Inc. do regarding the on-going strike at Alabang and Cabuyao plants because of unfair labor practices?

IV. Statement of the Objectives
To resolve the problem between the management and the workers of the company To make a good relationship with some potential sources of funds such as commercial bankers and investors by giving the demands of the striking workers To develop a good employer-employee relationship

V. Areas of consideration
It is a company of nutritional products (milk, coffee, soya-based products, infant dietetics) The products are in demand in the market
The company is steady and gainful
Unfair labor practices by company management
On-going strike by workers
Low sales when it comes to infant formulas or baby foods (10%) Competitors in the market, the CFC and Commonwealth Foods, Inc. Well-known products
Market acceptance abroad
The company can introduce more health based products
The company might lose the possible sources of funds due to on-going strike

VI. Alternative Courses of Action
Alternative 1: Improve the policies as well as the human behavior and human resource management of the company Alternative 2: Give or supplement the demand of the workers (UFE- Union of the Filipro Employees)

VII. Evaluation of the Alternative Courses of Action
Alternative 1: Improve the policies as well as the human behavior and human resource management for the of the company The advantages are the ff.

Harmonious relationship among the management and the workers will build More investors will easily encourage to invest
The disadvantages are the ff.
Slow to adopt the new sets of policies and procedures
More time will consume in orienting them the new management

Alternative 2:

Give or supplement the demand of the workers
The advantages are the ff.
The workers may stop from striking
Workers can add more good reputation to the company by giving them their demands Rebuild good relationships between the management and the employees The disadvantages are the ff.
Time consuming because it will take time to convince the striking workers Additional expenses for the company

VIII. Recommendation

I choose to recommend the Alternative 2. Give the demands of the workers – the Union of the Filipro Employees (UFE) concerning about the union affairs and labor practices. The management will give the right and fair treatment among the employees in Alabang and Cabuyao plants like in the other plants financially and morally. Discuss with them the workers about giving the CBA (Collective Bargaining Agreement). Although this alternative is additional to the expenses of the company, they can afford to give the demands of the workers and the members of the union. Since it is stable and profitable organization, workers can demand more financial assistance and more benefits. They can cover up the expenses for

Filipro, Inc
BALANCE SHEETS
December 31, 1983 and 1982

1983
1982
Increase or (Decrease)
ASSETS

Amount
Percent
Current Assets
₱1,091,564,748
₱886,120,318
205,444,430
23.18%
Investment in Shares of Stock
3,487,120
3,487,120
-
-
Property, Plant and Equipment
468,763,650
344,537,676
124,225,974
36.06%
TOTAL ASSETS
1,563,815,518
1,234,145,114
329,670,404
26.71%

LIABILITIES

Current Liabilities
₱898,609,980
₱643,186,565

Deferred Income Tax
13,147,827
5,815,718

Total Liabilities

SHAREHOLDERS’ EQUITY

Capital Stock
379,450,000
270,000,000

Advance Payments on stock subscriptions
3,170,657
46,250,788

Retained Earnings
269,437,054
268,892,043

TOTAL SHE
652,057,711
585,142,831

TOTAL LIABILITIES AND SHAREHOLDERS’EQUITY
₱1,563,815,518
₱1,234,145,114

IX. Action Plan

Specific Activity
Time Frame
Person Responsible
Budget
Meet and discuss with the union and management the demands of the striking workers 1 week
Mr. Delfin Castillejos and the union
-
Evaluate the financial statements of the company
1 week
Mr. Jose Asperilla
-
Supply the demands of the workers
September 1984 up to present
Management
-

Facts of Case

Description
Strength
Weakness
Opportunities
Threats
Stable and profitable organization

Nutritional Products

Products are in demand in the market

Unfair labor practices

Competitors in the market (CFC and Commonwealth Foods, Inc.)

Well-known products

Market acceptance abroad

Might lose the possible sources of funds

More health based products to advertise