Download HBO Case Analysis - ABC Steel Company PDF

TitleHBO Case Analysis - ABC Steel Company
File Size199.0 KB
Total Pages6
Document Text Contents
Page 3

Threats  The Company’s inability to meet deadlines might cause loss of loyal
and recurring clients

 The continuous inefficiency in the production may cause breach of
contracts between the company and its clients that may give rise to
potential law suits.

 Inability to cover maturing penalties (because of lack of funds to
sustain such costs) may worsen the financial difficulty being faced
by the company.

 Bad Reputation in the industry
 Inflation – due to the possibility of increases of price materials &

other fabrication related resources
 Competitors may surpass them

7. Alternative Courses of Action

ACA No. 1 - Finish all the deliverables by maximizing company resources (plus re-
alignment of shifts and schedules including overtime)

ACA No. 2 - Prioritize past due contracts while Sub-contracting long maturing
deliverables

ACA No. 3 -Re-negotiate some contracts which are most likely to be undelivered by
the due date; or terminate contract

8. Analysis

ACAs Advantages Disadvantages
ACA No. 1  Proper scheduling of the laborers

shift can be implemented
 Proper utilization of equipment
 Good reputation to clients
 Targets will be reached
 Backlogs will be minimized and

eventually eliminated

 Employees might still
be uncooperative

 Limited time
 Costly

ACA No. 2  ABC can obviate breach of
contracts or any possible
litigation/lawsuits

 ABC Steel Company may prioritize
past due or near due contracts;
thus, minimizing or avoiding
penalties

 With lesser pressure and work to
be done, effective scheduling of
manpower and discipline can be
implemented

 Proper utilization of equipment

 Difficulty in finding a
dependable
subcontractor/s

 Quality control from
ABC of the product
may be put into
question

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ACA No. 3  Possible extension of deadlines with minimal or
no cost

 Could maintain a good business relationship
with customers as opposed to not meeting
deadlines & causing inconvenience to our
customers

 Termination fees could be lesser than total
penalties if deliveries are not made on time

 Placing another estimating department under
the operations manager will provide a more
accurate quotation with the labor and
timetable.

 Could give a negative
impression of the company

 Having another estimating
department might confuse
the employees

 Possible opportunity loss with
termination of unsettled
contracts.

9. Analysis

Decision Matrix

CRITERIA ACA NO. 1 ACA NO. 2 ACA NO. 3

PROFITABILI
TY

3 2 1

EFFICIENCY 3 2 1

EXECUTABIL
ITY

3 3 1

REPUTABILI
TY

3 3 2

Total 12 10 5

Rating:
3 – Highest
2 – Moderate
1 – Lowest

Upon consideration of all the Advantages and Disadvantages of all the Alternative Course of
Actions from ACA1 to ACA3; and based on the Decision Matrix wherein criterion of

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Profitability, Efficiency, Executability and Reputability have been carefully considered, WE
THEREFORE RECOMMEND ACA NO. 1 AS THE ANSWER TO OUR PROBLEM STATEMENT.

10.Plan of Action

ACTIVITY RESPONSIBLE PERSON TIME FRAME
Formation of Rules for proposition:

1. Planning of Target Dates
2. Shifts in Manpower (Adjust

schedule of the workers into three
(3) shifts)

3. Quota/reward system – point
system for every project or
accomplished to be awarded
semi-annually.

4. Reinforcement of tardiness
penalties – provide ultimatums for
the tardy labourers

5. Overtime Rules and Regulations

Shop Manager

Propose to Operations Manager together
with the Field Manager and Production
Control Manager regarding:
“Rules for Propositions” made

-

Shop Manager , Field
Manager, Production control,

Operations Manager

Proposition to the General Manager (with
the approval of the Operations Manager
the subordinate managers)

Shop Manager, Operations
Manager, General Manager

Proposal to the Executives and VP’s (with
the approval of General manager)

Shop Manager, Operations
Manager, General Manager,
VP’s, Board of Directors

Finalization of rules and Regulations
 Creation of memorandums
 Allocation of budget for the Board of

Directors/President/VP’s

Implementation General Manager,
Operations Manager,
Shop Manager, Field
Manager, Production

Control Manager

Continuous

-=The End=-

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