BES 402

ENGINEERING MANAGEMENT

CASE STUDY #2
FILES AND FOLDERS

FEBRUARY 23, 2022

SUBMITTED BY:

DECENA, ARN JILL

DEMERIN, NIEL
DIANONGCO, ADAM
ENTAL, JASON KENT EXEQUIEL
FLORES, BLESSY JOY
FLORENTINO, KENNETH OLIVER

BS ME AND CHE 3-A

ACADEMIC YEAR, 2022-2023

SECOND SEMESTER

SUBMITTED TO:

ENGR. RAYMUNDO REYES

Case Study #2.

RBR Ltd. manufactures files and folders from old clothes to discourage the use of plastic files
and folders. For this, they employ people from nearby villages where very less job opportunities
are available. An employee, Harry, designed a plan for cost reduction but it was not welcomed
by the production manager. Another employee gave some suggestions for improvements in
design, but it also was not appreciated by the production manager.

Statement of the Problem

An RBR Ltd. produces files and folders that use old clothes to lessen or better yet eliminate the
use of plastic and hires jobless individuals from areas who are experiencing fewer job
opportunities. The company is in search of product design but on a budgeted note.

Objectives

The main objective of RBR Ltd. is how can the company produce files and folders with good
design and of good quality considering the need to decrease their expenses.

Specific Objectives

The specific objectives of this case study are:

1. To create a plan for getting customers' attention through designs.

2. To look for more areas with lower job opportunities.
3. To maintain the company's practice of reducing waste.

Areas of Consideration

SWOT Analysis

A SWOT analysis of RBR Ltd. provides the data on the strengths, weaknesses, opportunities,
and threats that are significant in strategy formulation and implementation. Thus, the company’s
strategies must prioritize these factors according to their significance in the business.

Strengths

Strengths are internal strategic factors that represent the company’s capabilities. This analysis
assesses the company’s organizational abilities and potential. Consolidated RBR Ltd. has the
following strengths:
 ● High Potential Employees – High potential employees are instrumental in succession
planning and optimizing business objectives to determine long-term success. Ability,
engagement, and aspirations are the primary markers for recognizing employees with
high potential, drawing on their skills and experience, attitude towards growth and drive
for success and their emotional and rational commitment. As stated in the given case,
Harry together with his co-employee has suggested and designed a plan for cost reduction
and such improvement if applicable. To add that they were employed who came from
nearby villages where very few job opportunities are available, these two employees are
of quality and they contributed plans and options that the business could take advantage
of.

● Eco-friendly Products - Eco-friendly products are those that do not harm the
environment whether in their production, use, or disposal. In other words, these products
help preserve the environment by significantly reducing the pollution and waste they
could produce. As stated in the given case, RBR Ltd. has initiated the manufacture of
files and folders from old clothes to discourage the use of plastic files and folders.

Weaknesses

Weaknesses are internal strategic factors that impose difficulties and limits based on the
organizational characteristics of the Company. This analysis determines the most significant of
such limits and difficulties to inform the company’s strategic management. The following
weaknesses affect the company:

● Productivity and Profitability – Productivity refers to a company's production

capability and efficiency in producing a product, as assessed in terms of output per unit of
input. Meanwhile, profitability is determined by how much money is left over after the
product is manufactured and what costs are paid. With the products they have initiated to
produce, there are still some things to consider or plans to be discussed. As stated in the
given case the product manager was not quite open to any suggestions that they could
take into account. Thus, with this kind of scenario, there are yet no clear plans as to how
they should manage to produce products of good quality and lower cost.

● Employee Satisfaction – As stated in the given case, Harry and his co-employee have
provided suggestions of a designed plan for cost reduction and some improvements in
design that could help the business come up with a feasible plan of action. However, it
 was stated the production manager was not that appreciative and open to any opinions or
suggestions that his/her co-employee are contributing. Thus, this could lead to conflict
and unproductivity for the business itself.

● Product Quality – Since the products, the business had initiated or planned to pursue
come from old clothes. There are quite some advantages and disadvantages with regards
to the quality of the files and folders to be made. One advantage of the products is that
they are indeed recycled ones and the downside of that is how will the product sustain
through time given it was only made by an old or let’s say used cloth material. Indeed
with regards to the product quality, the business should have quality assessment tests or
the like to assure and reassure customers who will buy that the product is of good quality.
Customers always come back and repurchase when a product is good and tend to
recommend the product to others. A quality product creates unshakeable customer loyalty
that generates increased leads.

Opportunities

Opportunities are external strategic factors that present potential growth and improvement in the
company. This analysis identifies the most relevant opportunities in the company’s external
business environment.

● Innovation – As stated in the given case, RBR Ltd. has decided to manufacture files and
folders from old clothes to discourage the use of plastic files and folders. So the process
that the business would go into is to Reuse the old clothes (depending on the business on
where it should be gathered), Reduce the use of plastic or the production of waste through
plastics, Recycle the old clothes and transform it into a product which is usable for many
uses. With this move, I think it will be beneficial for both the business and to the
environment. Having this initiative is a step forward and a great statement that we could
run a business without putting weight on the environment.

● Customer Satisfaction – Customer satisfaction is defined as a measurement that

determines how happy customers are with a company's products, services, and
capabilities. Customer satisfaction information, including surveys and ratings, can help a
company determine how to best improve or change its products and services. The
business's primary aim is to instill interest, satisfaction, and loyalty in the customer.
 Although there is no guarantee that they will patronize the business’ products. However,
we get to show them what we can offer that is of good quality and use.

Threats

Threats are external strategic factors that impose limits and challenges on the company. This
analysis determines the kinds of threats that can decrease the company’s capacity. The following
threats are considered in the case of RBR Ltd.:

● Competition - Competitors may force change. This is very apparent in the technology
market, where new products are constantly being introduced to a target market that
welcomes change and innovation. With the products that the business will pursue it may
be in or not for the customers to buy such and with that there is no certainty that through
these products alone the business could thrive in the long term process. In order words,
there is no assurance that these products would be a hit to the customers or the company
will gain such profits for there are also other markets that sell similar ones or are of better
quality. However, the business could always find a way to strategize, adjust and readjust
to the test of time as well as to the tastes of the customers in the modern world.

Alternative Courses of Action

● Identify the cost and benefits where you need to separate the lists into two. One of
all the projected costs and the other of the expected benefits of the proposed project
or action.

Pros: It can help in figuring out whether a project is sound and justifiable by analyzing
whether its benefits outweigh the costs.

Cons: These mostly relate to the accuracy of the data you put into the analysis and the
problems associated with human agendas such as fudging the numbers to get the exact result you
want.

● Employing involvement reduces the labor/management friction by encouraging

more effective communication and cooperation and it also increases morale by
creating a feeling of belonging to the organization.
 Pros: It can increase employee commitment to their organizations by involving
employees actively in decision making in order to improve some things, company leaders affirm
the value of their employees.

Cons: Good communication is necessary to make certain that decisions are consistent
across the organization but consistency is critical to brand recognition and managers may have a
hard time monitoring decisions.

● Management autonomy makes the employees have the latitude to make their own
decisions and employers provide both the tools and guidelines to help employees
succeed.

Pros: When everyone on a team has full control over how they complete their work they
can accomplish tasks quickly and efficiently.

Cons: Miscommunication is a major challenge without appropriate communication, team

members may misinterpret assignments or make incorrect assumptions.

Recommendations

This case study mainly focuses on an innovation where RBR Ltd., has initiated to
manufacture files and folders used commonly at homes, schools, offices, or for personal
purposes. These products will be made from old clothes as the main material which aims to
reduce the usage and waste disposal of plastics that clearly harm the environment. However,
conflicts arose within the company where the production manager tends to disregard and be
unappreciative with all the suggestions, plans, and options that his/her co-employee are
contributing. Thus, with this case here below are a list of recommendations that RBR Ltd., must
take into account for their business.

● Communication enables management to share what they have and what they expect
from others. So, it is effective communication, which makes leaders lead successfully.
Managers need to deliver clear, achievable goals and commitments to both teams and
individuals, outlining exactly what is required on any given project, and ensuring that all
workers are aware of the objectives of the project and the agenda which is the weak link
in the RBR Ltd. Basically, the importance of effective communication among the
managers and workers provides constant awareness and transparency that an individual
does their job according to the standards (or even better than average) and receives an
equivalent amount of benefits and compensation and also that the management sacrifices
according to their commitments to their employees thus building trust throughout the
company.
 ● Product Quality refers to how well a product satisfies customer needs, serves its
purpose, and meets industry standards. When evaluating product quality, businesses
consider several key factors, including whether a product solves a problem, works
efficiently, or suits customers' purposes. In the case of RBR Ltd., they have initiated to
produce a product of files and folders with the use of old cloth as the main material. If
this is so, the company must reassure that the quality of the product must meet the
demand of usage that the customers do. Also as stated in the given case, the company is
in search of product design but on a budgeted note so in this case the company, its
employees, and the owner must take all options and ideas into consideration, weigh those
options that may help the business with its initiated products and have it reassessed with
regards to its quality and usage in long term process.

● Cost-Benefit Analysis is a systematic process that businesses use to analyze which

decisions to make and which to forgo. The cost-benefit analyst sums the potential
rewards expected from a situation or action and then subtracts the total costs associated
with taking that action. The RBR Ltd., its employees, and the owner must take into
consideration all the pros and cons of such moves or decisions that they will make for the
business. RBR Ltd. must position themselves on a bird’s eye view to look keen into
situations and reassess each option available that may or may not benefit the business
itself. Doublechecking and ensuring the risks and benefits that the company plans to do
gives a better angle for the company to procure the best decision possible in the situation.
In this situation that the employees have ideas that can benefit the company, it is
recommended that the management should consider hearing them out.

Conclusion

To conclude RBR Ltd. needs to be assertive when it comes to their products because the
product that they produce is the fruit of the company and employees' hardship. Also, in order for
the company to thrive, they need to be more adaptive to their products like new design ideas or
new material which can be used as files and folders at the same time can contribute to being
eco-friendly materials. However, the company must assure that the products they manufacture
are of good quality and sustain the demand of usage that the customers do. And as for the cost
reduction of the material the company can reuse some excess old cloth materials or any
recyclable material as a medium of their product. All of this can be achieved if the production
manager can be more imaginative and take some opinions or ideas for his/her employee because
every decision that the production team lies to the manager and if the manager disapproves that
idea, the idea is void; so the production manager needs to think outside the box and also ask
some employees some ideas as contributions that can be beneficial for both their company and to
the environment. And to make the company be more successful and thrive they need to expand
their company to locations that can help unemployed people or some areas with low job
opportunities so that the company can help people who don't have a job and also help the
environment to reduce waste that is harmful to nature.