CASE STUDY: CONSUMER PROTECTION

Logan has been working at Foreigh Company, which makes skin care products, for the last three years as
a marketing specialist. Logan is a highly likable guy since he is cheerful and sociable. He enjoys what he
does and cannot fathom applying for a job other than marketing specialist. As a marketing specialist, he is
involved in the creation and design of a marketing project, marketing campaign, advertising, promotions,
and sales.

Logan's goal is to get a promotion so that his salary would grow. He also wants to start a family and
marry his long-term girlfriend. Foreigh Company has been preparing to launch and market a new product,
a skin care set. The manufacturing process has already begun, and the product will be launch in 5 months.
The firm assures their staff that if sales are substantial, they will receive incentives, and excellent
employees may even be promoted.

Logan was so pleased to hear the announcement that he immediately began working on the marketing
campaign for the new product, and all of his co-workers are just as excited as he is. Every staff gave their
all and worked tirelessly. The day of the new product's debut arrived, and it was a huge success, with
everyone delighted and celebrating. Few days after the launching, Logan was on his way to his marketing
manager's office because he wanted to talk to him and ask for some advance salary because his father was
hospitalized and in critical condition. He was about to enter the office when he heard some voices from
the next room, which is the meeting room. Logan, being an inquisitive individual, stopped to see what
was going on. Logan could see who was inside because the room's blinds were open. The CEO, as well as
the heads of marketing, purchasing, customer service, and the HR department, are all there. Logan
overhears their talks and is astounded by what he discovers. He had no idea that they had been falsely
advertising the new product that they were preparing to introduce all this time. Logan discovered that the
new product contains less than what is stated on the packaging, that all of the product's ingredients are not
listed on the packaging, and that some of the ingredients listed do not actually exist in the product itself;
in other words, the company claims some false product characteristics. They also stated that the price or
the process by which the price is derived is misrepresented; items are advertised at discounted rates when
they are not. These are plainly against the law since consumers are required to be educated about the
items and companies are required to be honest about the things they advertise.

Logan is still processing all of the information he has obtained; since day one, he has been
admiring Foreigh Firm since it is the company he has always wanted to work for. Logan was about to
depart and get some fresh air outside since he was overwhelmed by the information he had just heard. He
is about to leave but an arm stopped him from doing so, he turn around only to see the CEO. He forced
him to enter the conference room and shut all the doors and blinds. Logan finally speak up and asks why
they had to do it. What they are doing is plainly wrong, and Logan will not remain silent on the matter.
Everyone in the room remained silent, Logan was still disoriented and bewildered, and he was unhappy
with what he discovered. After a few minutes, the CEO eventually speaks out, telling Logan to remain
silent on the matter in exchange for a promotion and a raise in compensation. The CEO said that what
they are doing is for the company's growth as well as to give additional incentives to employees. Logan's
help in this situation is requested by the CEO, or else he will be fired from the firm. Logan doesn’t know
what to do, he knows that what they did is wrong but he really need his job because he is currently having
a problem.
 1. If you were Logan, what will you do?

2. If you were Logan, will you report the matter to the authorities?

3. What solution would you suggest?

STATEMENT OF THE PROBLEM

The problem here is that, the company violated RA 7394 (Consumer Act of the Philippines of 1991). The
firm was marketing and labeling its items incorrectly, which is inappropriate and illegal. Foreigh
Company was intentionally deceptive and dishonest in their advertising. Customers therefore were duped
into buying items based on deceptive advertising and substances listed on the packaging; they were
unaware of the company's illegal activities. The CEO and department heads are well  aware of the
situation, but the rest of the employees are not. The firm has clearly failed to protect the customer as a
result of its deception. Logan, a marketing specialist found out about this matter, the CEO threatened to
terminate his contract if he spread and report the business malpractice otherwise he will be promoted and
get a salary increase.

COURSES OF ACTION

Logan was forced into the situation; he needed the money and the promotion, but I would resign from the
firm if I were him. I'm going to speak with the CEO and department heads and inform them that what
they're doing is against the law. You can make money while doing business correctly, poor business has
adverse consequences. I'll urge them to halt the production process and inform the public about the
product's misrepresentation. Consumers have a right to know about the items that they will purchase, as
well as a right to be educated and protected against businesses that sell and deceptively promote their
products for profit. I'll also file a complaint in the Department of Trade and Industry; I have the capacity
to do so because the company is engage in a deceptive advertising which their workers are unaware of. If
we discover that a company is engaging in unlawful activity, the best course of action is to report it,
because remaining silent will benefit no one. People should constantly strive to be decent and should not
and tolerate such illegal acts because it is one of the ways to make the world better.

SOLUTION AND RECOMMENDATION

Foreigh Company must cease their dishonest business practices, and they must remember that customers
have the right to be informed about the goods that they will purchase. Consumers have the right to be
informed, and the Philippines has a legislation called RA 7394 (Consumer Act of the Philippines of 1991)
that serves as the legal basis for consumer protection in the country. The firm must constantly abide by
the laws, rules, and policies implemented. Businesses must not only focus on profit maximization; they
must also have a sense of corporate social responsibility, caring for their customers, suppliers, society, and
the environment. Foreigh companies must remember that deceiving customers will not lead to long-term
success; firms must always engage in ethical and lawful business practices; this is one of the  ways to
ensure business's long-term viability and strategic competitiveness.
CASE STUDY: PLANNING AND GOALS or business plan

 Mr. Joel Samonte was 25 years old when he organized his business firm, Joel Retailing Company. He
asked Danny, the younger brother of his high classmate, to join him in his newly formed business.

As the years passed the firm made good in the grocery retail business. Together, Joel and Danny
established one branch after another. Within a span of 20 years, 19 branches were established throughout
Central Luzon and Cagayan Valley.

The total number of employees reached 405 and everyone showed much respect to the leadership abilities
of the two pioneers. Joel and Danny worked in a mutual trust with each other. Joel always consulted
Danny on several important aspects of running the business. Danny was always busy training personnel
on several aspects of managing a branch so there has never been a shortage of managers.

Because of his loyalty and ability, Danny was well taken care of Joel. He receives an executive salary that
was above industry standard, plus allowances and medical benefits. He is provided with an executive car.
He is authorized to make decisions on operational matters. To assist him in his task, Danny trained two
junior executives.

All went well until Joel died and full ownership and control passed to Joel oldest son, Nico. What Nico
did was to slowly introduce measures to centralize decision-making. Previously, the store managers had
the authority to determine the types of merchandise to carry, the quantity, and the timing of purchase. The
recruitment and training of store personnel were functions exercised by the store managers. The above
functions, as well as some other tasks, are now performed by top management through a staff in central
office. The changes introduced effectively reduced the authority and influence of the store managers.
Danny's authority was also greatly reduced.

 Just a month after the decentralization order was implemented, Danny felt the demoralizing effect on the
managers and employees assigned to the branches. Sales dropped by two percent and a number of key
employees started to make moves to look for suitable jobs elsewhere. The rate of absences and tardiness
also began to go up.

 Danny was alarmed by the situation and he informed Nico about the strong possibility of negative growth
for the company. Nico told Danny not to worry because he thinks it is easy to replace those who will
leave.

STATEMENT OF THE PROBLEM

COURSES OF ACTION

SOLUTION AND RECOMMENDATION

CASE STUDY: CAREER PREPARATION

Mr. Conrad Rafferty, an American, was assigned by a multinational company to act as a general manager
of their branch office in the Philippines. Being used to the Americans way of managing, he emphasized
that ‘’TIME IS GOLD’’ and, therefore, everyone must be able to do their task efficiently and must be
punctual in reporting their office, which is open from 7:00 am to 5:00 pm, and in attending company
meetings/activities. Some Filipino cultural orientations are ningas cogon, mañana habit, and the so ˗called
Filipino time. In ningas cogon, leaders, or workers show a lot of enthusiasm at the start of a project,
however this interest dies down after sometime and the project is neglected. The mañana habit pertains to
procrastination or putting off for tomorrow what can be done today. Meanwhile, Filipino time refers to the
habit of accepting 15 to 30 minutes of tardiness, as a common practice in appointments, meetings or
reporting for work. All these go against Mr. Rafferty’s ‘’time is gold’’ policy.

Conflict due to cultural differences resulted. There was a fast turnover of Filipino managers and workers
because of Mr. Rafferty’s inability to ‘us to the abovementioned cultural orientations; the Filipinos too,
could not understand why Mr. Rafferty was almost always angry. They interpreted his behavior as a form
of racial discrimination and this general feeling against their American boss negatively affected their work
performance, productivity and ultimately, their company’s income generation.

To remedy the situations, Mr. Rafferty was transferred to another country, after three years of trying to
manage their Philippine branch.

STATEMENT OF THE PROBLEM

When Mr. Rafferty became the general manager of a multinational company's branch in the Philippines,
he encountered some cultural shock. He is unfamiliar with Filipino workers' work habits and culture.
Filipino workers embodied the ningas cogon, mañana habit, and so-called Filipino time cultural
orientations. Mr. Rafferty is not a Filipino, he wants his employees to understand the value of time, to be
prompt, productive, and be effective in their job, which is just alright. The problem here is Filipino
employees; I believe they lack career preparation; just because ningas cogon, mañana habit, and so-called
Filipino time are prevalent in the Philippines does not imply that they must practice such act. Mr. Rafferty
just wants the best for the firm, but the Filipinos are taking it adversely. The workers lack career
preparedness because they are meant to obey the general manager's direction, but they have failed to do
so.

COURSES OF ACTION

Filipino employees must modify their working habits; they must demonstrate passion for their work from
the start until the end, and they must continue to perform well in their professions. Another point to
consider is that procrastination will not benefit them; if they have backlogs and work to do, they must do
it immediately, especially if they can complete it the same day. Lastly is the Flipino time, let us not
normalize being late because it is not a good attitude. We must recognize the value of time, and Filipino
employees must constantly practice being on time. They should learn how to change their working habits
for the company's benefit and success.
SOLUTION AND RECOMMENDATION

Working isn't only about abilities; it's also about attitude and habits, which is why career preparation is
crucial before you start working. You must not only develop your abilities; you must also learn how to
change your habits, which will have an impact on your job performance and productivity. You must
prepare yourself to be adaptive and conform to the company's working practices. You should also be
ready to receive critiques and understand the difference between judgment and criticism. The workers
were upset by Mr. Raffty's opinions in the aforementioned circumstance, when in fact, the latter was
correct and on point. What he said was simply criticism, and it was only a manner for him to remind
Filipino workers that they needed to be more productive and efficient at work.

https://www.scribd.com/presentation/431891194/Case-Studies

CASE STUDY: CAREER PREPARATION

Attorney Lorna Corona was the general manager of their family owned publishing company. Subordinates
described her as an ideal boss who knew the ‘ins and outs’ of their business, who focused on long-term
concerns of their company, emphasizing, maintenance of stability, development, progress, and overall
efficiency and effectiveness. She, too, exhibited emotional intelligence that enabled her maintains positive
impersonal relationships with everyone, in both the internal and external environments of
their organization.

Since everyone was happy and satisfied, their company succeeded in achieving their goals .in 1999,
Lorna had a give up her position because of severe injuries she suffered after a vehicular accident. Her
parents gave the task of managing their company to her younger brother, Gerald, who was her assistant
general manager before the said vehicular accident.

Despite being knowledgeable in managing their publishing company, Gerald did not show emotional
intelligence. He often had conflicts with other managers and subordinates; lacked good public relations
with customers and other companies’ managers; and could not calm himself quickly when angry and
under pressure during problematic situations. This circumstance caused dissatisfaction among the
employees of their company, hence, affecting their efficiency and productivity. Other stakeholders, too,
were negatively affected. In2009, their company had to close shop.

STATEMENT OF THE PROBLEM

Attorney Lorna was the general manager of their family-owned publishing firm, but she had to let go of
the company due to the injuries she got because of the accident. Gerald, her brother, is the one who takes
her position. Gerald was formerly her assistant general manager, but the latter is not very competent in
leading and managing the firm; he also lacks emotional intelligence, which I believe is very important
when managing a company. These conflicts have adverse implications; Gerald often has conflicts with
other managers and subordinates; he does not have a good relationship with the employees and
customers, which has a significant impact on the workers' performance and productivity, as well as the
overall performance of the work. Gerald evidently lacks career preparation; he is inadequate to handle and
manage a firm, and his performance reflects this.
COURSES OF ACTION

Gerald should have prepared himself for business management even before the accident occurred. He
should have allowed himself to develop and improve the qualities that needed to be fixed, such as his
emotional intelligence. There is no way he was not aware of his lack of emotional intelligence
beforehand; he should have learned how to manage his emotions, keep calm, and create positive
relationships with everyone around him, particularly his subordinates. He may be educated about
managing their firm, but abilities alone are insufficient to manage a business; you must also have a better
outlook and intelligence, which can only be obtained through hard work, career preparation, and adequate
training.

SOLUTION AND RECOMMENDATION

The family should have delegated the management of the firm to someone who is knowledgeable
enough to operate it correctly, someone who possess the necessary capabilities, skills, and intellect.
Alternatively, they should have trained Gerald first before allowing him to lead the firm since Gerald
needs a lot of career preparation in order to manage the business efficiently. When running a business,
you must cultivate positive relationships not just with your workers but also with your consumers, as this
will aid the firm in achieving strategic competitiveness.

CASE STUDY: CORPORATE RESPONSIBILITY, ETHICS & ACCOUNTABILITY.

Ethics vs. Profit

A large American company participates in a highly competitive industry. To meet the competition and
achieve profit goals, the company has chosen the decentralized form of organization. Each manager of a
decentralized center is measured on the basis of profit contribution, market penetration, and return on
investment. Failure to meet the objectives established by corporate management for these measures is not
accepted and usually results in demotion or dismissal of a center manager.

An anonymous survey of managers in the company revealed that they felt pressured to compromise their
personal ethical standards to achieve the corporate objectives. For example, certain plant locations felt the
pressure to reduce quality control top a level that could not ensure that all unsafe products would be
rejected. Also, sales personnel were encouraged to use questionable sales tactics to obtain orders,
including offering gifts and other incentives to purchasing agents

The chief executive officer is disturbed by the survey findings. In his opinion, the company cannot
condone such behavior. He concludes that the company should do something about this problem.

STATEMENT OF THE PROBLEM

The firm was solely concerned with increasing profits; they seemed to have no regard for corporate social
responsibility, they are even engaged in business misconduct in order to increase revenues. Because the
firm operates in a highly competitive industry, the management is pressuring and compelling its workers
to use whatever means necessary, even unlawful ones, to accomplish the management's objectives.
COURSES OF ACTION

The corporation must address the issue promptly, and management must cease encouraging managers to
engage in illegal business practices in order to increase revenues. They should cease putting all of the
pressure on the managers simply to increase earnings. The firm should not force its personnel to sacrifice
their ethical standards in order to achieve organizational objectives. The corporation must stop engaging
in business misconduct since it would undoubtedly result in negative consequences. In business, there is
no such thing as easy money; if you make money quickly and in a bad way, it will come back to you.

SOLUTION AND RECOMMENDATION

Every firm must embrace corporate social responsibility in addition to earning a competitive edge, profit
maximization, and return on investment. They must strike a balance between making a profit and serving
their stakeholders, as well as providing society with the greatest services and commodities. The firm
should not be misled by profit; instead, it should adhere to ethical norms, care for its employees, and
assist them in improving their organizational effectiveness. The firm must also be socially responsible to
its consumers; they must know how to properly care for their customers; in this manner, the company's
image will not only improve, but they will also gain profit while providing good service to the public.