Santos Timber Company Case Study

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Santos Timber Company Case Study

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DEPARTMENT OF AGRIBUSINESS MANAGEMENT

COLLEGE OF ECONOMICS AND MANAGEMENT

UNIVERSITY OF THE PHILIPPINES LOS BANOS

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Case 7: SANTOS TIMBER COMPANY

        

MGT 201: ORGANIZATIONS AND MANAGEMENT

Submitted By:

GROUP 6

AGUSTIN, ROSZHIEN

CHUN, JOO

DEVERA, LILIAN

LAI PHUONG THAO

Submitted to:

JIMMY WILLIAMS

SANTOS TIMBER COMPANY

POINT OF VIEW

Carlos Vinces’ point of view was taken for the case analyst. As the general manager and a partner, he has the authority and responsibility for most management decisions in the logging operation. In addition, he is exposed to any issues in all aspect of the operation from the logging operation to trucking operation of the Santos Timber Company (STC).

PROBLEM STATEMENT

        What should Mr. Carlos Vinces do regarding the insisted dismissal of Felix Cruz by his partner Mr. Alfredo Santos?

SWOT ANALYSIS:

Strength

  • Hands on management of Mr. Carlos Vinces which for a short period time the company were able to expand operations.
  • Multi skilled employee in the name of Mr. Felix Cruz who knows how to do mechanic job, has skill in driving dangerous mountain terrain and he is smart and was able to propose some loading arrangement that was adopted and resulted to fewer delays and squabbles.
  • Good working condition of the management and employees especially the truckers. Mr. Vince regard Mr. Cruz as spokesman for the trucking group and that role of Mr. Cruz is accepted by the group.
  • Santos Timber Company has efficient employee especially the truckers.
  • Mr. Vince has married the niece of Mr. Alfredo Santos making the partnership more reinforced
  • Long existing assembler-exporter which is located 23 kilometers away from the logging site.

Weakness

  • Mr. Santos is already old and was busy attending to the management of properties owned by his fiancee in Manila.
  • Mr. Santos takes things personally, his personal conflict with Mr. Cruz is being drag into the business, and has the tendency to retaliate.
  • The current disagreement between Mr. Santos and Mr. Vinces
  • A presence of dangerous mountain roads that delays the transportation of logs to the coast.
  • Some recruited truckers resulted to some damages to the truck.
  • Felix Cruz has past conflict with Mr. Santos and has the tendency to walk out, the absence of background checking for new employees.

Opportunities

  • Less difficulty in finding experienced people to fill newly created or vacated position since there were a number of logging outfits in the area.

Threats

  • Labor rights issues

ALTERNATIVE COURSES OF ACTION

Alternatives

Advantages

Disadvantages

To retain Felix Cruz and let Mr. Santos see for himself the production record and driving skills of Cruz.

  • This will not only boost the morale of Felix Cruz but also his fellow workers. Since productivity has been given more weight that past personal issues.
  • Mr. Vinces will be at ease since he will not lose one of his best truckers.
  • Felix Cruz can continuously influence truckers to better trucker group productivity.
  • STC can continue using Cruz’s loading arrangement to better facilitate the delivery of logs from operation to the coasts.
  • This will correct the wrong assumption of Mr. Santos about Felix Cruz
  • This will create conflict between Mr. Santos and Mr. Vinces.
  • This might be perceived by the employees that Mr. Vince has more power than Mr. Santos.
  • It might be construed by Mr. Cruz he has prevailed against Mr. Santos.

To dismiss Felix Cruz

  • This will avoid conflict between Mr. Vinces and Mr. Santos.
  • Avoidance of possible unnecessary confrontation between Mr. Santos and Felix Cruz.
  • Trust developed between the partners.
  • This will be unfair to Felix Cruz since he already established good rapport among his fellow truckers and Mr. Vinces.
  • May possible lead to truckers’ low morale, since the management wasn’t able to resolve past issues.
  • Mr. Vinces being in the forest concession most of the time may endanger his life from possible revenge from Cruz’s loyalists, since Felix Cruz have already established rapport in the area.
  • Conflicts will be created between the management and truckers.
  • STC is to lose one of its best truckers.

To set up a mediation meeting with Mr. Santos and Felix Cruz and solve the issue between the two.

  • Will promote the right to due process by letting each side to give their side at the same time confront or fix any misunderstanding in the past.
  • Increase the morale of workers since every employee is given fair treatment.
  • Implementation issues, since Mr. Santos tried to avoid the subject and became exasperated when Mr. Vinces persisted, conflict may arise.

DECISION

Based on the analysis of the market and company situation, advantages and disadvantages of the alternatives and consideration of the comments and concerns of Santos Timber Company, the following alternative has been chosen: To retain Felix Cruz and let Mr. Santos see for himself the production record and driving skills of Cruz.