Sugarcane Incorporated and Asia Pacific Sugar and Sweets Manufacturing Company

I. Background of the Case

The owner of Philippine Hawaiian International Sugarcane Incorporated and Asia Pacific Sugar and Sweets Manufacturing Company are friends. Mr. Gutierrez, the manager of Asia Pacific Sugar and Sweets ordered molasses to Mr. Dy the owner of Philippine Hawaiian International Sugarcane Incorporated. Due to financial crisis, Mr. Rolando Gutierrez asked his friend if the company could pay the 20 days afterwards the deliver and because they were friends, Mr. Dy accepted it. Upon the second delivery of the molasses, the production manager of Asia Pacific Sugar and sweets found out that the quality of the products were different from the invoice Mr. Dy's company provided. Mr. Gutierrez decided to return it back having a memorandum containing the company's reasons that causes Mr. Dy's enraged and argued that the delayed payment is a breach of contract and to cancel their agreement.

II. Point of View

Point of view for this case is that I will put myself as an external expert.

III. Time Context

This case was analyzed on November 20, 2011. It happened November 5, 2000 when Mr. Gutierrez' company ordered molasses from Mr. Frederick Dy.

IV. Statement of the Problem

The problem in this case is "The effect of friendship in engaging in different business activities and if it is ethical, legal and moral".

V. Statement of the Objectives

The objective here is to find out the effects of friendship in business and to know the morals and ethical standards in an organization especially on dealing with friends about businesses.

VI. Areas of Consideration

Strengths – The manager of Asia Pacific Sugar and Sweets Manufacturing Company and the owner of Philippine Hawaiian International and Sugarcane Incorporated are friends.

Weaknesses – the owner and the manager of the companies are friends and they forget the rules of businessman that business is business. They used their friendship in engaging in businesses and it may be broken due to problems with regards to the organizations.

Opportunities – since, they were friends, it would be easy for them to deal with their needs especially on the issues on their organizations. It can also help them to reach their goals in an easier and faster way.

Threats – both companies would be unproductive like in this case because it happened that it is experiencing problems. They have ignored the rules and regulations of the organization.

VII. Alternative Courses of Action

ACA # 1 – The company