NAME: ________________________________________________ SIGNATURE: ______________ DATE: ____________

GE 320 / GE 511 Engineering Management

Quiz 12

Case 4: Communication

Northern Container Corporation: Time to Cry

Engineer Godofredo Monsod, Jr., general manager of Northern Container Corporation (NCC), was taken aback
by letter-reply from a prospective new customer (see Exhibit 1). 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, MrGodofredo 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 in 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.

EXHIBIT 1
RED RIBBON MANUFACTURING CORPORATION
1201 Putting Bato
Taytay, Rizal
27 January 1997

THE GENERAL MANAGER

Northern Container Corporation
1526 Amihan St.
Bakod Pae, 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

REACTION about the CASE

Answer the following:

I. Synthesis of the Topic:

II. Learning Outcomes

- Positive Points (Agree with the author or topic at some points. Identify the theories or

principles that you agreed and explain why.)

- Negative Points (Identify the theories or opinions which you do not agree and explain why)

Note: Reasoning may be based on readings, experiences or prior knowledge

III. Conclusion