MARSH’s

Case 2: Silverstar Chemical Company

I. Viewpoint

Mr. David Santos

II. Time Context

Past four years

III. Definition of the Problem

Dumping of industrial waste into the local river and reports about the levels of suspected
cancer-causing materials in that waste.

IV. Objectives

Must Objective: 1. The Silverstar Chemica Company must stop dumping its industrial
waste into the local river and must treat the substance to neutralize its potentially
injurious effects.

Want Objective: 1. To maintain its competitive advantage and avoid raising operating
costs, which could potentially lead to unemployment for 10,000 local employees and
the collapse of the town's economy.

V. Areas of Consideration

Internal Environment:

Strength/s:

1. The company has been able to maintain competitive advantage by cutting costs through
dumping waste into the local river.
2. The current practice of dumping waste has kept operating costs low, allowing the company to
remain competitive.
3. The company has a large workforce of 10,000 local employees, which contributes to the town's
economy.
 UNIVERSITY OF MAKATI
J.P. RIZAL EXT., WEST REMBO, MAKATI CITY

Weakness/es:

1. The company's current practice of dumping waste into the river is environmentally harmful.
2. There is potential for legal and reputational consequences due to misleading reports to
authorities about the waste.
3. Dependency on cost-cutting measures rather than sustainable practices may lead to long-term
damage to the environment and the company's reputation.

External Environment:

Opportunity/ies:

1. Investing in alternative methods of waste disposal could lead to innovation and potential cost
savings in the future.
2. Adapting to environmental regulations could enhance the company's reputation and
competitiveness in the long term.

Threat/s:

1. Rising operating costs due to waste treatment and legal disposal could make the company less
competitive.
2. The potential loss of 10,000 jobs and economic collapse of the town if the company becomes
uncompetitive poses a significant threat to both the company and the community.

VI. Alternative Course of Action

ACA 1: Implement Proper Waste Treatment and Disposal

Advantages: 1. Reduces environmental harm caused by dumping waste into the river.

2. Stimulates innovation in waste treatment technologies.

3. Improves company's environmental sustainability and reputation.

 UNIVERSITY OF MAKATI
J.P. RIZAL EXT., WEST REMBO, MAKATI CITY

Disadvantages:

1. Increases operating costs, potentially making the company less competitive in

the short term.

2. Requires retraining of employees and adjustment of existing processes.

ACA 2: Partner with Environmental Organizations for Waste Management

Advantages: 1. Opportunities for collaboration on innovative waste management solutions.

2. Access to expertise and resources of environmental organizations.

3. Shared costs and risks of implementing environmentally friendly practices.

Disadvantages:

1. Loss of control over waste management decisions to external partners.

2. Differences in priorities and objectives between company and environmental

organizations.

3. Potential conflicts with existing company policies or practices.

ACA 3: Seek Government Subsidies or Tax Breaks for Environmental Initiatives

Advantages:

1. Reduces financial burden on the company, making it more competitive.

2. Encourages environmental responsibility through government support.
3. Helps offset the costs of implementing environmentally friendly practices.

Disadvantages:

1. Availability and eligibility of subsidies or tax breaks may be limited.

2. Dependence on government support may create uncertainty in long-term financial

planning.

3. Application process for subsidies or tax breaks can be time-consuming.

 UNIVERSITY OF MAKATI
J.P. RIZAL EXT., WEST REMBO, MAKATI CITY

VII. Recommendation:

ACA 6: Implement Proper Waste Treatment and Disposal

VIII. Action Plan:

Activity Personnel – In – Budget Time Frame

Charge
1. Conduct Meeting BOD - 1 day
2. Assessment of Environmental PHP 50,000 2 months
Current Waste Compliance Team
Management
Practices
3. Research and Research and PHP 100,000 3 months
Select Suitable Development Team
Waste Treatment
Technology
4. Infrastructure Engineering and PHP 500,000 6 months
Development for Operations Team
Waste Treatment
5. Implementation Operations and PHP 200,000 On going
of Waste Quality Control Team
Treatment
Procedures
6. Environmental Environmental PHP 50,000 On going
Monitoring and Compliance Team
Reporting
7. Continuous Environmental PHP 100,000 On going
Improvement Compliance and
and Adaptation Research and
Development Teams