Determine the problem and make a solution to the problem. Lastly, make a conclusion.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
icon
Related questions
Question
100%

Determine the problem and make a solution to the problem. Lastly, make a conclusion.

Case 8. BUENAVISTA ELECTRIC COOPERATIVE, INC.: Masquerade
Right after Engineer Oscar Pascua finished his electrical engineering course at FEATI
University in 1985, he was hired as an employee of the National Electrification Administration
(NEA). He was assigned to handle jobs in the various units of NEA until his promotion to Chief
Planning Officer in 1994. His main function was to supervise the planning activities of his unit.
Three engineers and two other employees reported directly to him. His performance was rated very
satisfactory.
Engineer Pascua attended training sessions of various kinds including those for
management. He finished his M.B.A. course in 1995.
When the position of general manager of the Buenavista Electric Cooperative, Inc. (BECI)
became vacant in January 1996, he was nominated by NEA. He got the post in March 1996. Aware
of the many problems besetting the cooperative, he immediately went to work.
When Engineer Pascua called the key officers of the cooperative to a meeting, he was
appraised of the following:
1. that the price of electricity charged to BECI's customers is the fifth highest in the
country;
2. that 25 percent of the electricity service provided by BECI is lost every month and
cannot be accounted for:
3. requisitions for supplies and materials are served after delays of as long as three
months;
4. some employees of the cooperative do not report regularly for work;
5. the increasing amount of uncollected accounts.
Three days after the meeting, he recommended to the board of directors the following:
1. the dismissal from the service of employees not regularly reporting for work;
2. salary increases of up to 20 percent for every employee on the payroll;
3. the hiring of eight additional employees; and
4. the formation of a team to investigate and recommend measures to minimize "system
loss".
All his recommendations were approved by the board, after which Engineer Pascua signed
all the necessary memoranda to implement his programs. He made regular inspections of the
activities of the various units of the cooperative.
During the first week of March 1997, he convened the key officers for an evaluation of the
past year's activities. The following points were made clear to him:
1. No reduction in the price of electricity could be extended to BECI's customers because
no reduction in the overall cost of doing business was achieved.
2. Instead of reducing the 25 percent system loss, it even went up to 26 percent.
3. There was no improvement in the requisition of supplies and materials. Delays still
reach three months.
4. There is a new set of employees who do not report regularly for work.
Transcribed Image Text:Case 8. BUENAVISTA ELECTRIC COOPERATIVE, INC.: Masquerade Right after Engineer Oscar Pascua finished his electrical engineering course at FEATI University in 1985, he was hired as an employee of the National Electrification Administration (NEA). He was assigned to handle jobs in the various units of NEA until his promotion to Chief Planning Officer in 1994. His main function was to supervise the planning activities of his unit. Three engineers and two other employees reported directly to him. His performance was rated very satisfactory. Engineer Pascua attended training sessions of various kinds including those for management. He finished his M.B.A. course in 1995. When the position of general manager of the Buenavista Electric Cooperative, Inc. (BECI) became vacant in January 1996, he was nominated by NEA. He got the post in March 1996. Aware of the many problems besetting the cooperative, he immediately went to work. When Engineer Pascua called the key officers of the cooperative to a meeting, he was appraised of the following: 1. that the price of electricity charged to BECI's customers is the fifth highest in the country; 2. that 25 percent of the electricity service provided by BECI is lost every month and cannot be accounted for: 3. requisitions for supplies and materials are served after delays of as long as three months; 4. some employees of the cooperative do not report regularly for work; 5. the increasing amount of uncollected accounts. Three days after the meeting, he recommended to the board of directors the following: 1. the dismissal from the service of employees not regularly reporting for work; 2. salary increases of up to 20 percent for every employee on the payroll; 3. the hiring of eight additional employees; and 4. the formation of a team to investigate and recommend measures to minimize "system loss". All his recommendations were approved by the board, after which Engineer Pascua signed all the necessary memoranda to implement his programs. He made regular inspections of the activities of the various units of the cooperative. During the first week of March 1997, he convened the key officers for an evaluation of the past year's activities. The following points were made clear to him: 1. No reduction in the price of electricity could be extended to BECI's customers because no reduction in the overall cost of doing business was achieved. 2. Instead of reducing the 25 percent system loss, it even went up to 26 percent. 3. There was no improvement in the requisition of supplies and materials. Delays still reach three months. 4. There is a new set of employees who do not report regularly for work.
5. The amount of uncollected accounts increased from P3.8 million to P4.2 million.
During the first week of March 1997, he convened the key officers for an evaluation of the
past Engineer Pascua concluded that in spite of the granting of salary increases requested by the
rank and file, no subsequent improvement in services was registered. He is now considering more
drastic measures but he is not sure if it is the right thing to do. In addition, he is also aware that
there are some employees who are qualified and dedicated to their jobs.
Transcribed Image Text:5. The amount of uncollected accounts increased from P3.8 million to P4.2 million. During the first week of March 1997, he convened the key officers for an evaluation of the past Engineer Pascua concluded that in spite of the granting of salary increases requested by the rank and file, no subsequent improvement in services was registered. He is now considering more drastic measures but he is not sure if it is the right thing to do. In addition, he is also aware that there are some employees who are qualified and dedicated to their jobs.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles Of Marketing
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
Marketing
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
MKTG 12:STUDENT ED.-TEXT
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:
9781337407595
Author:
Lamb
Publisher:
Cengage
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning