Case: Monde Sugar Central

Background
Monde Sugar Central (MSC) is a corporation formed in 1978 in Cagayan de Oro.
It is formed by then president, Albert Monde Sr., along with his brothers. It was a
thriving business as fields by then are so rich that they produce high-quality sugar, as
well as their trademark, muscovado. Although there were other sugar centrals in the
district, MSC never backed out from the competition. MSC never ranked last in
production, and now they are finding ways to secure the top spot in sugar production. In
ensuring quality products, MSC was divided into different sectors with a Vice-President
managing each one. One of the crucial sectors, with the most employees, in the
company is the Transport sector.
Transport Sector
The VP for Transport, Mr. Martin Abad, had been managing the sector for 12
years since the retirement of the one of the Monde brothers taking that position. He
worked his way to the top by gaining the trust and confidence of his subordinates as
well as his superiors. He is very understanding when it comes to his co-workers and
maintains a bond with the supervisors under him. This personality, along with his
knowledge on crops and operations, earned him the spot of VP Transport.
The transport sector is the biggest, as well as the busiest sector, because they
are in-charge of cane sourcing, transportation, planter handling and other functions
crucial to the operation of MSC. So, the top management then must see to it that this
sector can handle the expansion, i.e., increase in capacity.
Cane Sourcing and Planter Services Department
Under Mr. Abad, is the head of the department for cane sourcing and planter
services, Mr. Ian Aujero. And under him are 5 field crop inspectors, assign to different
areas in Cagayan to check crop and fields information as well as do some inspecting of
the area for possible planting fields. These 5 crop inspectors also supervise a junior

crop inspector for each one of them. (See Illustration 1.1) Also, other staffs for truck
allowance and executing and planters information are also in this department.
There is so much going on that Mr. Ian Aujero had his hands full on field work
and lacks focus on monitoring paperwork. Mr. Aujero has worked for 6 years under the
same position, but is saying that his work is doubled each year. He often asks for
extension from Mr. Abad regarding reports that he should file upon conclusion of crop
and field inspections.
Annual Board Meeting
The Annual Board Meeting of MSC is done every 3rd week of August to give time
to evaluate the crop year and prepare again before the start of the milling season in
September. Ever since the retirement of his father, Albert Monde Jr. has been presiding
over the board as President. This year, the board discusses the proposed plant
expansion to cope up with the increasing demand in sugar. In line with this, Mr. Abad is
asked to present to the board some suggestions in order to get the Transport sector
ready in time for the expansion.
Mr. Abad had been thinking about this board meeting since the time he was
informed by the secretary of Mr. Monde to make a presentation to the board. He has
been pondering on setting up a new department in the sector to accommodate office
work and monitoring, as well as to build a database that would contain all information
gathered in the field. He wanted to take some work off Mr. Aujeros hands, as this plant
expansion could subject him to only field work. Ever since this idea came up to him, he
had been observing potential people to manage the department he is thinking of. Right
now, he has 3 candidates in mind for the position.
Mr. Paolo Baydid, 55 years old, has been working as a supervisor for 15 years
and is top candidate based on experience. However, Mr. Abad is still in doubt with his
capability because despite the years spent in the company, he still wasnt promoted.
Another candidate he chose was one of the top field and crop inspectors in the
department, Mr. Jafet Zaragosa. One quality he found in Mr. Zaragosa is his expertise
on crop and field information being in fieldwork for 6 years now. Now, Mr. Abad is

wodering whether Mr. Zaragosa could take the challenge of office work. The 3 rd
candidate is another supervisor, which goes by the name George Lachica. He is the
youngest among the supervisors under him but shows great potential especially when it
comes to coming up with ideas in market planning and research, which is technically
what the new department is all about.
Also, 4 field monitoring and crop inspectors will be managed by the chosen
department head. Mr. Abad is not keen on hiring new employees; rather, he would take
this 4 inspectors from the former department, leaving it with 6 inspectors, 3 top
inspectors and their juniors/subordinates. (See Illustration 1.2)
2 hours to the annual board meeting and Mr. Abad is anxious in sharing his ideas
with the board. He would wait until the board approves his recommendation before
telling Mr. Aujero and the rest of the people involved in the reorganization.

Illustration 1.1

VP Internal

Mr. Martin Abad

Head, Cane Sourcing

and Planter Services
Dept.
Mr. Ian Aujero

Field and Crop

Inspector

Field and Crop

Inspector

Field and CRop

Inspector

Field and Crop

Inspector

Field and Crop

Inspector

Junior Field and Crop

Inspector

Junior Field and Crop

Inspector

Junior Field and Crop

Inspector

Junior Field and Crop

Inpector

Mr. Jafet ZAragosa

Junior Field and Crop

Inspector

Illustration 1.2

VP Internal
Mr. Martin Abad

Head, Cane Sourcing

and Planter Services
Dept.
Mr. Ian Aujero

Head, Market
Planning and
Research Dept.

Field and Crop

Inspector

Field and Crop

Inspector

Field and Crop

Inspector

Field Monitoring and

Crop Inspector

Field Monitoring and

Crop Inspector

Junior Field and Crop

Inspector

Junior Field and Crop

Inspector

Junior Field and Crop

Inpector

Field Monitoring and

Crop Inspector

Technical Officer

Case Analysis: Monde Sugar Central

Background
Monde Sugar Central has different sectors; one particular sector that is crucial to
the companys operations is the Transport sector. This sector is managed by Mr. Abad.
The top management is planning on expanding the operations of the sugar central to
cope up with the increasing demand in sugar. In line with this, they must make sure that
all sectors are ready for this expansion. They are especially looking into the potential of
the transport sector to improve its operations so as to have a successful expansion. Mr.
Abad was assigned to come up with recommendations for his sector.
Problem
There are a few problems faced by the management in this case. First, is the
company ready for expansion? If no, what are the areas for improvement? Also, with
Mr. Abads suggestion, is the transport sector really ready for reorganization? If yes,
who is the best person for the position of the new department head? These are just
some of the questions that the management should tackle in order to come up with a
reasonable plan of action for a successful expansion.
Recommendations
I think the company is not yet suitable for expansion until all sectors are able to
stabilize their operations. There is still a recurring problem in the department of Mr.
Aujero as they are more engaged in field work that they fail to materialize reports or
build up a database for the information they have gathered. Because of this, Mr. Abad
has a point in setting up another department that would take the office work from the
other department, hence the Market Planning and Research Department. Also, to
lessen costs in setting up this new department, transfer of some employees from one
department to the new one is recommended.
In setting up this new department, the management should pick someone of high
potential for this job. Mr. Abad sees potential in 3 of his subordinates, namely, Mr.
Baydid, Mr. Zaragosa and Mr. Lachica. From among these candidates, Mr. Lachica, is
the best one for me. The best candidate for this position is not mainly about the
experience, but also about the skills. Although Mr. Baydid has been in the company for
many years already, its a wonder how someone with that experience still remains to be
a supervisor. Unlike Mr. Lachica, although very young, who is already a supervisor and
still shows great potential in leading and managing people. Also, with Mr. Zaragosa, he
has been in field work for many years, so subjecting him to a demanding office work
could alter his working potential. So, technically, Mr. Lachica is best suited to head the
new department.