A Guide to Case Analysis

Robert A. Stringer Jr.

Sample Case: Toledo Manufacturing Company

I. Facts
<The Toledo Manufacturing Company>
Toledo Manufacturing Company was a medium–sized manufacturer of
custom–made electrical motors and motor housings. About 400
workers and managers were employed by the company. Toledo
Manufacturing Company had experienced a steady growth since its
founding and sales totaled nearly P13, 000, 000. All
manufacturing operations were carried on in a twenty-year-old
three-story factory located on the outskirts of the city of
Manila. The production shops were located on the two bottom
floors, and the top floor was occupied by the management and
staff personnel. The basement was used mainly as a storage area.
The management and staff offices were scheduled to be moved into
a new building adjacent to the present factory.

<The Procurement Department>

Ten men were involved in procurement of materials for the Toledo
Manufacturing Company: the new procurement manager whose named
Jose Tan replaced the old manager whose granted an indefinite
leave of absence to study in the United States, an assistant
manager, three buyers, and five clerks. Each buyer was
responsible for a particular line of materials.
After Jose Tan familiarized himself with the operations of his
department, he settled down his most serious problem which is
Pete Lazaro whose just not productive enough, takes him too long
to deliver the parts and his buying is too expensive; He is
slowed down, just at the time when the department is expanding
its operations like never before.

<Pete Lazaro>
Pete Lazaro was responsible for the purchase of small hardware
items. Toledo Manufacturing Company did not keep many of these
items in stock for the reason that most of the company’s motors
were made to customer specifications. Lazaro’s job consisted of
getting the needed hardware items on short notice. When a
production manager requested nuts or bolts, Lazaro would call up
a supplier and arrange for a company jeep to pick up the parts.
Timing was the most important aspect of Lazaro’s job.
Pete Lazaro was one of the original employees of Toledo
Manufacturing Company, and his years of experience in
procurement were considered a valuable company asset. When the
company was just beginning to grow, Lazaro had been designated
assistant to the president. During that time, it was known that
Lazaro was a most trusted purchasing man.
<Jose Tan Statement>
“There’s little doubt that Pete knows the trade; he’s been
around for some time. But there are some personal practices he
has which must be corrected. The entire purchasing department
used to be located in the basement, three years ago, the
department moved upstairs. Pete still has his office in the
basement. He says he can’t get a telephone line, but that’s
crazy---the department all do. I don’t think he want people
around and he keeps very odd hours. About five years ago, he
started coming to work in the afternoons and working into the
evening. Now he comes in at 8 or 9 at night and works till early
morning. Yesterday, he came in at 3 in the morning and went home
at 8, just when staff all arrived for work. My predecessor
didn’t mind this, I guess. It doesn’t seem to bother the other
buyers, but it hurts the business. He’s never around and I can’t
keep track of him. When a production manager wants a part, he’s
got to wait until the next day. He says he puts his eight hours,
and then spends a good part of the daytime doing follow-up work,
but he’s not as good a buyer he used to be. One of the
production managers showed me one of the parts he’d bought and
showed me the price; it was very expensive. Pete didn’t shop
around for that part.
<Others>
Assistant procurement manager received only P750 per month which
the assistant is worth more than P981. One of the things that
has always bothered Jose Tan in procurement is honesty, for the
reason that the nature of the hardware items, it’s very hard to
spot when a man is stealing from the company. Procurement
department never had any reason whatsoever to suspect Pete
Lazaro, but always a worriment. All the employees of the
department are new around the workplace. Pete could really help
the younger buyers, there are a lot of ‘tips’ he could give
them, but there’s no communication. In general, Pete should be a
valuable man.

II. Case Problem

The newly appointed manager at Toledo Manufacturing Company
procurement department Jose Tan was attracted to the company by
the top management team. As the new manager, Tan familiarized
himself with the operations of his department and planning for
an efficient and successful one. However, the company’s
procurement department currently lacks elements to improve the
total performance of the department. What should be done to
address the situation?

III. Objectives
 1. To improve departmental performance by reducing the
response time on the orders of small hardware items.
2. To improve departmental performance by setting values on
the workplace, such as communication, respect, integrity,
and excellence.
3. To increase the training and development of the younger
buyers by increasing informal interactions and exchanges of
knowledge between Pete Lazaro and the rest of the
department.
4. To increase the training and development of the buyers by
focusing on important aspect of their job.

IV. Alternatives Courses of Action

a. Do nothing. Just like the old manager did as he didn’t mind
the actions of Pete Lazaro. However, problems of the
department continue to exist. Maybe hurting Lazaro’s
feelings is more costly than improving the department’s
performance.
b. Fire Pete. Letting go of a problem employee is easy as the
new manager Jose Tan has valid reasons, such as
overspending and slowing down, to terminate Pete Lazaro.
However, Tan will force to hire and train a new buyer just
when the Toledo Manufacturing Company and the procurement
department are expanding its operations rapidly. Other
person who has had the same job for a long time in the firm
may not react favorably to the precedent set by the firing
of Lazaro.
c. Talk to Pete. Set achievable and measurable goals and a
timeframe for meeting Pete Lazaro. However, addressing an
employee’s poor performance can feel uncomfortable and does
not get at the roots of Lazaro’s problems.
d. Department-wide solution. Setting corporate values, such as
communication, respect, integrity, and excellence may apply
to the entire procurement department. Age and salary
discrepancy exist among buyers in the department. Salary
put Pete Lazaro above his colleagues, his age excludes him
from social interests of his fellow worker, and his
advancing age that causes himself to slow down on the job.
Lazaro was once a crucial man in the Toledo Manufacturing
Company and now he sees himself as unimportant, that is why
his response is avoid his co-workers, his manager, and the
production managers. Informal training sessions could bring
 Lazaro into the social work setting of the department. The
upcoming move to a new location might provide a good
opportunity to integrate Lazaro back into the department.
Desk and telephone can be reserved for him so he can rejoin
the staff or personnel and keep regular hours. Another
solution was consistent learning and training may apply to
the buyers of procurement department, focusing on important
aspects of their job. Build the buyers skills and strategy,
and ensures that buyers are growing with their roles rather
than remaining stagnant. In that way, both Lazaro and the
rest of the buyers can improve their efficiency and
performance.

V. Conclusion
Arrive at conclusion and decision: If the new manager Jose
Tan can persuade and motivate the old buyer Pete Lazaro, and
willingly begins to change his behavior and attitude little by
little, then will accept the last alternative. If the new
manager Tan peripherally glimpse openness to development at the
old buyer Lazaro, then will accept the last alternative. If the
new manager Tan seen that the old buyer Lazaro is unwilling to
change his behavior and attitude or not seeking for an
improvement in his performance, then, unfortunately, will accept
the second alternative. As the newly hired manager of the Toledo
Manufacturing Company procurement department, the plan of Jose
Tan is to ensure the efficiency and successful operations of
company’s procurement department, nothing more, nothing less.