The king group of companies
Transcript of The king group of companies
![Page 1: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/1.jpg)
The King Group of Companies
CASE STUDY 5.2
![Page 2: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/2.jpg)
Corporate background• The King group of Companies was one of
the largest conglomerates in the Philippines. Its business ranged food manufacturing to detergents to chemicals to hotel services.
Three flagship corporations:• Alpha-King Corporation• Kings Commercial Corporation• Republic Kingdom Corporation
![Page 3: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/3.jpg)
Cont’d…• It started in 1951. It gradually grew to
what it is now largely due to the hard work of John King. From a textile trading firm, King went into sales distributorships of such products as soy sauce, fish sauce, cooking oil, and milled corn.
• The company was into a five-star hotel, shopping complex, a chain of theaters, a department stores, and a supermarket.
![Page 4: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/4.jpg)
Cont’d…• Republic Kingdom Corporation was into
poultry and hog raising, vegetable farming, fertilizers, chemicals, flour milling, textiles, garments, and snack foods, among others.
![Page 5: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/5.jpg)
John KingThe King Group of Companies President
![Page 6: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/6.jpg)
• 57 years old• B.S. Commerce Graduate at the University of
San Carlos• He was the epitome of “hands-on”
management• He always wanted to be involved key
decisions to be taken.• When he realized that he could not handle the
whole conglomerate by himself, that he started pirating so-called professional managers(handle marketing, production, sales and research and development) to run certain aspects of his businesses.
![Page 7: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/7.jpg)
Larry DySpecial Assistant to the President
![Page 8: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/8.jpg)
• 29 years old• MBM, Asian Institute of Management
BSME, Ateneo de Manila University• “assists the President in almost
anything”- his usual description of his job
![Page 9: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/9.jpg)
Andy DiazBrand Division Manager
![Page 10: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/10.jpg)
• 34 years old• BSBA, (Magna Cum Laude)
University of the EastMBA, Ateneo de Manila University
![Page 11: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/11.jpg)
Marlon TehOne of the Vice- president, King Group of Companies
![Page 12: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/12.jpg)
• 41 years old• AB Economics, Ateneo de Manila University• In charge of all manufacturing operations of
Alpha Foods• Former Division Manager of the Grocery
Division as well as the Moonbeams Company (in charge of both marketing and production)
• Currently the Division Manager of the Dairy Products Division as well as the Kingdom Garments Company
![Page 13: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/13.jpg)
Summary of the Case: The King Group of Companies
Mr. John King called Larry to his office becausehe was troubled about the tension among thethree departments of the Alpha Foods Company(Sales, Brand, and Production). Larry decided toconsult each side to gather information and
viewsfrom the three departments concerned..
![Page 14: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/14.jpg)
Sales ViewWhen Larry spoke with some of the salesmen and Rene Cruz the National Sales manager, they said that they are doing their best to sell their products. Their compensations are commission based. Because of this, they really strive hard to make substantial sales. However the problem is, they think brand department is not supporting them. They always complain that Sales are not selling other products. Of all the brands they are selling, they sell more coffee than any other line because it is the easiest to sell. Outlets are always asking about their coffee and have a budget to spend. So after buying coffee, they do not have funds to buy other products. Additionally, Rene Cruz said that Brand department is the one who’s not doing their part since the stocks are not available when they needed them. A salesman also told Larry that Mr. Cruz really sows fear among them so they do their best to meet their quota and avoid being called in his office for a sermon.
![Page 15: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/15.jpg)
Brand’s ViewWhen Larry talked with some Brand men regarding the issue, they believed that the problem is with the sales department because all they know is to sell coffee. It is really hard for them to get the support of Rene Cruz for they don’t sell the other products. They think that Mr. Cruz is an irresponsible and an unprofessional manager because they think that he’s never been on a store check and does not know what his people are doing in the field. They also said that he used to handle the sales force of the grocery division and moonbeams but the sales force petitioned Mr. King to remove these from his control.
![Page 16: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/16.jpg)
Production’s ViewLarry talked to Tommy Rivera and he said that Production department work on the basis of production schedules. And to come up with a month’s schedule, they cast to base these schedules on. The problem is that the Brand’s forecast is always late so instead, they use the previous month’s forecast as a temporary set of figures to use for production planning. He also added that production seldom remiss on their task of producing the right quantities of product.
![Page 17: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/17.jpg)
Marlon TehTo get another view, Larry talked to the vice president Marlon Teh and he said that production has a very efficient and effective system of production scheduling. As to sales and brand, they are also doing their work but he sees that the problems between them is lack of coordination and each side think that they are important.
![Page 18: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/18.jpg)
QUESTIONS
![Page 19: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/19.jpg)
1. What are the sources of conflict between the two Divisions: Sales and Brand, and among the three: Sales, Brand and Production Division?
2. What strategies should Larry Dy recommend to Mr. John King, the corporation president?
![Page 20: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/20.jpg)
Conflict is…- a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.
![Page 21: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/21.jpg)
Levels of Conflict
• Intrapersonal Conflict• Interpersonal Conflict• Intergroup Conflict
![Page 22: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/22.jpg)
Sources of Conflict• Organizational change• Different sets of values• Threats to status• Contrasting perceptions• Lack of trust• Difficult task• Personality clashes
![Page 23: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/23.jpg)
Conflict Process
![Page 24: The king group of companies](https://reader035.fdocuments.in/reader035/viewer/2022062709/55902a4e1a28ab31718b4623/html5/thumbnails/24.jpg)
Answers:1. The sources of conflicts: a. Different viewpoints
b. Contrasting perceptionsc. Lack of trustd. Personality clashes
2. Larry Dy should recommend Mr. King Confronting Strategy to solve the conflicts.