Dynamic Packaging Company

A case analysis

BSA-3J / MGE11A

Summary:
The Dynamic Packaging Company (DPC) is a business entity engaged in repacking of food products. There are three major service lines namely: packaged products (all in), contract packaging, and toll packing manufacturing services. The packaged product (all in) supplies raw materials and other factors of production for example coffee, creamer, sugar, salt catsup, hot sauce, sachets etc. Products are generic but may be customized by request of the customer. The contact packaging services contains the customers desired package design and their preferred contents. Examples are, Java Sauce of Aristocrat Restaurant, cheese and barbeque flavorings of Popperoo and Cano 3-in-1 packs. The Toll Packing/ Manufacturing Services are clients who are at large production. The DPC caters manpowered facilities for operations and charges its customer on throughput basis. A contract of a purchase order normally has duration of six months or more. The DPC has four major products type which are the liquid portion pack, powder portion pack, hot cups and special projects. DPC has another entity called the Marketing Systems Inc. (MSI) which handles the toll packing of the DPC. Going to its strategic planning, DPC only has forty nine regular employees including the five members of the board. Gabby Santos its general manager and president of the company prefers a centralized decision setting style as of now, the company is updated with the policies in training, labor relations, hiring performance appraisal and other HR-related matters. Mr. Santos noted that the company aimed to be the number one firm in the repacking business for its three major service lines. The company is third place in terms of market share in the industry. He also wanted his company to be recognized for its own brand. Despite all of these, the question is has the company have its capability to exploit such opportunities?

I.

Objective

To be able to promulgate an effective strategic planning and internal control for the overall operation of the business entity.

II.

Central problem
There are no written policies and systems procedure on operations, marketing, finances and quality control.

III.

Areas of consideration
Strengths The company has a strong leader who happens to know every little operation in the firm. DPC belongs to a high market share in the industry. The liquid line packaging services provided the best income opportunities.

Weaknesses The president prefers a centralized decision making style, which is crucial as compared to the present market strategies of our economy. There are only few regular employees in the company, so labor union can be a possible effect. Same management personnel in the DPC and MSI.

Opportunities The DPC has its capability to promulgate the market and reach a large profit if setting of strategies and techniques will be established. The companys packing services can expand into retailing of repacked items, carrying the companys own brand name and into diversify to repacking even to non-food items such as toothpaste, gel, shampoo etc. The contribution margin of the companys lines of services is a good venue of growth.

Threats

The competitors are topping the market. External factors such as economic inflation and high prices of commodity may affect the business operation.

IV.

Alternative courses of action

1. There should be a separate Production/ Operations Manager in the Company. 2. A set of internal control and business policies should be established for an effective and efficient work process.

ADVANTAGE 1. The separate job can give ease of work to the management. Because of this convenience, the general manager can concentrate on his specific job in the company. 2. The company may be able to establish their policies, and systems of control on procedures on operations, marketing, finance and quality control.

DISADVANTAGE 1. As of experience, the new one is not that much familiar with the operations as compared with Mr. Santos, so he should undergo extensive training that might take time. 2. The company will render services of professional financial analysts and CPAs for this compliance which is costly.

V.

Strategy formulation
I therefore conclude that the best solution to the central problem is the alternative course of action number 2; which is setting of internal control, should be established for an effective and efficient work process because It is an operative way of setting strategies and techniques in order to come up with a better plan and a better ways to earn in the growing company.

VI.

Plan of action
The company should implement the internal control and applicable policies for a much effective work of employees. The DPC should set their strategic plan in accordance with their Mission and Vision. The math of earning much more profit will come into reality if they will implement and follow the rules and policies for a further development.

VII.

Potential problem
Implementation of policies and systems of control on procedures on operations, marketing, finance and quality control may be costly.

VIII. Contingency plan

The company should set up a profit margin comprising the allocation of funds for operations so that in case of scarce, they will not be disturb in the flow of the business.