Tanglin Polymers Case Study

920 WordsJul 10, 20144 Pages
------------------------------------------------- Tanglin Polymers Case Study Tanglin polymers, headquartered in Hong Kong, is a large concern producing a variety of petroleum-based products used by a wide range of industrial consumers. It has over 30 manufacturing plants and refineries, located in Singapore, Indonesia, Vietnam, China, Australia, and New Zealand whose purchasing procedures have never been fully co-ordinate. This reflected a belief on the part of top management in the virtues of delegation and decentralization. Managers of each operation were encouraged to operate as separate business units in most matters. Early in 2006, when it began to appear that the company would face increasing difficulty in securing raw materials, Mr. Patrick Ang, the CEO, created a new position to handle purchasing. Chan Kee Tong, a UCD MSc graduate with several years experience in accounting control systems and optimization techniques, was hired for this new position as Manager of Resource Procurement. Patrick Ang, consistent with his managerial style, gave Chan Kee Tong wide latitude in organising the job. To assist him, Patrick Ang assigned Clara Ng as Chan Kee Tong’s assistant. Clara Ng had never attended college, but had served the company for a number of years in a variety of capacities and knew most of the plant executives personally. Chan Kee Tong’s appointment was announced through the usual formal channels, including a notice in the company newsletter. One of Chan Kee Tong’s first decisions was to begin centralising the company’s purchasing procedures. As a first step he decided that each of the managers in the individual plants who was responsible for purchasing would be required to clear with the head office all purchase orders made in excess of $ HK 800,000. He felt that if he was to be successful in co-ordinating purchasing efforts for the company he
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