PLANNING

METROPOLITAN HOUSING PROJECT

In 1982, the Metropolitan Housing Project Company was founded. This company
was founded to give the general public the chance to own and purchase properties.
In order to be introduced to the board, Mr. Roy Roxas, who was the company's
extend director at the time, arranged a three-year agreement for the years 1989 to
1991 on November 30, 1988. The major project of MHPC is the improvement of
real domain property. This piece of real land was discovered in Laguna and is known
as Lagunaville; it is near to the University of the Philippines College campus. The
three-year plan that Mr. Roy Roxas created for his introduction may actually be
this.
As a result, he listed his goals and objectives for Lagunaville for the following three
(3) years, despite the fact that the company's cash balance was only P110, 755 and
its liabilities totaled P13.75 Million, according to his plan. He wants all liabilities
associated with the Lagunaville project to be resolved as his first goal. He wants the
company's cash balance to rise to P2.348 million as his second goal. The
development of the site should be finished in its entirety, which is his third goal.
Additionally, he wants to sell off every single residential lot, which is his final and
foremost goal.
There are moreover list of suspicions that they can consider in able to achieve the
expressed destinations. The primary suspicion is that they ought to able to preserve
the obtaining control of the compensations of all the workers of the government
at the display level. The moment suspicion states that a few of their credit deals
will be taken out by the Home Development Mutual Fund. The third suspicion
states that the between times financing office ought to be accessible all the time.
And the fourth and final suspicion is that the interstate street that leads to the
location of Lagunaville ought to be completed.
The success of the Lagunaville Extend depends on the total cash flow of P20.7
million that can be generated or repaid over the next three years. A total cash flow
of 20.7 million pesos will come from the collection of installment transactions,
which have a combined value of 16,539,483.29 pesos, as well as the sale of new
lots or a deposit for a new sale, has a combined value of P 234, 037.60.
The cash proceeds are not included in the P2, 348, 705.77, which represents the
estimated net cash inflow after three years. Two commercial lots with a total land
area of 12,232 square meters and a value or price per square meter of P450 could
be sold for a total of P5, 504, 400. This cash proceeds could be created or
delivered from the sale of the two commercial lots.

Problems Encountered:
1. The Metropolitan Housing Project Company's liabilities and debts will be paid
in what way?
2.
3. What was the Metropolitan Housing Project Company's (MHPC) primarily
goal or purpose?
Solution:
1. If the Lagunaville project is successful and brings in a total of P20.7M in cash,
all liabilities or debts will be settled. This total cash inflows will be produced
or rendered during the course of the following three years from the
collection of installment sales and the sale of new lots.
2. Mr. Roy Roxas should request the government for faster completion of the
highway road in Lagunaville, so people can travel quickly and comfortably.
This will help him settle his liabilities and increase his cash balance to
2.348M. The government is obliged to set a budget due to the public highway
road being a government property.
3. The company had only P110, 755 in cash at the end of March 1987, yet it had
P13.75 Million in total obligations and debts.
Royal Printing
a. Who is the founder and former manager of the Royal Printing and Packaging
Company
b. Where did he turned over the management of the Royal Printing and Packaging
Company?
c. What is the estimated average growth rate of basic school textbooks for the
year 1988-1992?
d. Where did the company depend after they lost all their small job orders and
Large Commercial Bank client?
e. What Jose Baltazar discovered after he went back to his office to work again
that made him really disappointed?
f. How Jose Baltazar wants to solve the company's conflicts and problems?

The 68-year-old Mr. Ricardo Baltazar discussed to his recently graduated child,
Jose, about the state of the business he had been in charge of since 1962 after
handing over the management and administrative responsibilities of the
aforementioned business to him. Mr. Baltazar remarks that Jose, his child, is so
lucky to run and manage a business with no substantial liabilities during their
conversation. Along with describing how he acquired each piece of equipment from
the market, he also provided details on its current state. The German brand of
machinery, for instance, whose endless lifespan he has attested, comes to mind. In
addition, he noted that the exchange rate at the time was low, at P6 to $1, which
allowed him to purchase the Heidelberg Offset Kord for only P380, 000 as opposed
to the machine's current purchase price of P1.2M, at a rate of around P20 to $1.
During its early years, the company takes on any form of printing job, no matter
how big or little. Later, however, as a result of the company's growth, Mr. Ricardo
was able to forge a solid relationship with the company's fixed group of clients,
which includes a few large commercial banks and multinational pharmaceutical
companies. As a result of these institutional clients, the company made the decision
to discontinue all of their small job orders. However, the business suddenly lost its
clientele, leaving them solely dependent on the pharmaceutical industry.
When Jose returned to work the next day, he discovered that since the company's
founding 25 years earlier, its sales had not touched P1 million. The fact that the net
income was too low and the total operating expenses were too high left him feeling
quite unhappy. For instance, the overall operating costs or production costs in 1988
were P809, 000, but the net profit was only P91, 000. On the same day, he spoke
with his father about this matter.
Three components make up the printing association industry. The market trends
section is where he began by outlining the outlook for the printing business over
the following 10 years. To print their campaign materials like tarps, posters, and
brochures, for instance, many candidates in local and national elections would use
printing companies as a result of the restoration of democratic procedures.
Economic recovery and political stability will be attained in this manner. Another
example is the anticipated rise in demand for elementary school textbooks, where
the estimated 2.7% average annual growth rate was predicted to occur between
1988 and 1992.
The next topic he covered was the competition, mentioning that there are about
3,700 printing facilities in the nation, 2,700 of which are predominantly found in
Metro Manila. He added that there were fifteen (15) Board of Investments (BOI)
registered businesses that were serving clients who were exporting their goods in
1987.
The industry practices come next. This claim states that the dependable suppliers
paid 70% of the total production expenses for the paper. If the consumer can pay
the full given amount during the 30 day credit period and they are able to, these
merchants will offer a 3% cash discount.
The pharmaceutical industries are already among the loyal clientele that The Royal
Printing and Packaging Company has gathered. The business has benefited from its
equipment investments because it was able to purchase it at a competitive price.
They have been giving their clients valuable, high-quality services by doing this.
Even though the business has been in operation for 25 years, it has only been
generating a meager amount of revenue that is out of proportion to its
investments. The predicted expansion in the printing industry will surely lead to an
increase in net income for The Royal Printing and Packaging Company. The
production value of local job and commercial printers' contributions to the
manufacturing and service sectors will rise.

Problems:
1. The company has been running for 25 years and their current income is too
low, even with the machine they have on hand, which should generate
more than double their present income.
2. What steps must Jose take over the next ten years to strengthen his
marketing position, upgrade his financial resources, and boost profitability
in order to keep customers interested?
3. An increase in the demand for production-related supplies.

Solutions:
1. Keeping an open mind, Jose might be able to persuade his father to let him
buy modern equipment and sell the old ones, which would certainly boost
revenue and lower expenses over time.
2. Before it gets overly reliant on big pharmaceutical, Royal Printing and
Packaging should resume accepting small print orders to get it back up and
running. This would enable start-ups and/or small enterprises to benefit
from the services provided by the firm, hence boosting sales, popularity,
and client trust. Regain previous clients and give them discount or promo to
gain their partnership again.
3. Borrow money from creditors to finance larger scale operations.
Organizing

The Globe Construction Company

Mr. Eduardo Concepcion founded The Globe Construction Company in the middle
of the 1950s, and it experienced rapid growth as a result of the construction boom
in the government sector that occurred under the previous president, Ferdinand E.
Marcos. The corporation built substantial projects for both the public and private
sectors during the 1970s and the beginning of the 1980s, but the majority of its
work was for the government. Since there were more private construction projects
than public ones when Mrs. Aquino took office, Globe was forced to lower its
margins when bidding for both sectors. It was because of this environment shift
that a management workshop was called to discuss how to increase organizational
effectiveness and efficiency. The president, the vice presidents for operations,
administration, and purchasing, as well as the purchasing manager and all of the
project managers, all attended the session. The organization chart is in Exhibit A.
Twenty project managers are employed by the organization, and there are now 18
active projects with an average anticipated bid price of at least P100 million apiece.
A purchasing manager oversees the purchasing unit, which has fifteen buyers under
him or her. The overall project-in charge is the vice president of operations.
Isidro Remigio, one of the project managers, suggested at a training that the buyers
be based on the job site and report to the project manager. Due to his close
proximity to the project site, Mr. Remigio said that he would be better able to
comprehend the urgency and nature of demands and that it would take Purchasing
two weeks to respond to a purchase order. Additionally, he would be better able
to comprehend the urgency and nature of requests, making communication with
him simpler. The project won't be finished on time if the delivery of the materials
is delayed.
Mr. Remigio was interrupted by the purchasing manager, who explained that they
only acquire items ordered by the projects if they are not already in stock in the
main warehouse and are listed in the Bill of items (BOM) that has been approved
by the Executive Committee. If the purchasers report to the project managers
directly, this could result in cost overruns. When it was his turn to speak, the
company's president expressed worry over whether buying would have access to
funds to carry out approved POs. He hoped that they would take the availability of
finances into account wherever purchasing is placed on the organizational chart.

Problem:
2. What should the company do in response to the conflict between the purchasing
team and the construction unit?
3. Where would you locate the purchasing function?

Solution:
1. Rearranging the current organizational setup and determining where the
Purchasing department should be located is the optimal solution to the
current issue.
2. If there are 15 buying staff, the company may create two divisions or groups
inside that unit. The Buyers Report team is the first group, while the Buyers
group is the second. Instead, under approach 2, each buying manager would
run the construction company. I would advise either selecting option one or
splitting up the workforce.
3. If it is decided to add a buy manager to the building team, I believe this is the
best course of action because it satisfies Mr. Remigio's request. And as a
fallback, I can convince the last worker in the buying division to take on
double responsibilities.
St. Francis College of Commerce
St. Francis University, which is well-known for its engineering and scientific
programs, is one of the greatest private schools and colleges in the Visayas. It is a
medium-sized private school with a total enrollment of about 26,000 pupils that is
located in a prominent port in the Visayas region. The College of Commerce, which
provided four major specialties in banking and finance, accounting, marketing, and
business management, served as the university's basic administrative division. The
College of Commerce, on the other hand, only added 3000 students since the start
of the current academic year, leaving considerably behind the College of
Engineering in terms of enrollment.
The university had previously employed 55 full-time professors who taught five
courses each semester in addition to the approximately 100 part-time academics
who taught one to three courses each semester. Many of these part-timers were
employed elsewhere in the community and held down multiple jobs; they also
regularly volunteered their spare time to instruct the classes that were offered.
In June 1988, Mr. Santos—who is currently the Vice Dean—plans to take over as
Dean of the College of Commerce. The entrance standards of the institution are
much higher than those of other local colleges that provide the same commerce
degrees. Due to the university's enrollment growing at one of the quickest rates in
the past 10 years, it had more students enrolled than other colleges within the
university. Regrettably, the College of Commerce is losing enrollment each year.
Mr. Santos is therefore keen to continue enhancing the college's enrolling process.
He asserted that a concerted effort to improve the curriculum and make
organizational reforms may facilitate such enrolment growth.
While the other officials were in charge of student records and services, accounting,
supplies, maintenance, class scheduling, and other administrative aspects of the
college's operations, the dean and vice dean of the College of Commerce led the
college and represented it both within the university and to a wide range of
external constituencies. Directly answering to the college dean are six department
heads. Directly managing or supervising full-time professors and lecturers who
were teaching courses related to the department's area of study were these
academic department directors.
One of the modifications Dean Santos suggested being given priority was the six
academic department leaders. A suggestion for this enhancement was given to St.
Francis University's rector. He said in his suggestion that six departments are
excessive for what is required in light of the college's rising operating expenditures
and the difficulties in boosting tuition prices. So, in his opinion, the College should
undergo a restructuring by going from six to three departments. Because
department heads earn a bonus in addition to their regular wages, he predicted
that the College would save up to 65,000 pesos per year as a result of this
restructuring. Depending on their level or position, these "Special allowances"
could be worth 800 to 1200 pesos per month.
Department heads and regular faculty members have strongly criticized the idea
Dean Santos proposed. They view academic departments as uniform groups of
experts from many subjects. If they are divided into three groups, the six
departments that are currently in place risk losing their academic identity. In
response to these reasons, Dean Santos claimed that department heads are mostly
opposed to this idea because they want to keep their current jobs and the
advantages that come with it. He continued by saying that one benefit of the
concept is that people can interact with one another in different ways, doing away
with the requirement for a homogeneous department.

Problems:
1. What administrative adjustments ought St. Francis College of Commerce to make
in order reduce costs, increase enrollment, and enhance the effectiveness and
efficiency of the institution?
2. What do you think they could do to deal with the increasing enrollments?
3. In light of Mr. Santos' proposal for department reform, what decision as
university rector should you make?

Solutions:
1. The university's rector thinks the departmental organization of the college's
business program shouldn't be altered. Despite the fact that there is no correlation
between the numbers of students who will enroll and the number of
departments—which would be reduced from six to three—Mr. Santos wants to do.
Because they are happy in their jobs, instructors are willing to take a small salary.
2. The Dean must get rid of the Vice Dean position, as the administrative
responsibilities of the vice dean, such as student records and services, accounting,
supplies, maintenance, and class scheduling, may be handled by each department.
This will ensure that enrolling each student doesn't take too long or provide any
difficulties.
3. The Rector believes that the institution should focus on providing excellent
education to its students and generating graduates who will better represent their
school in the future. To do this, the institution must provide more cash to offer
workshops and seminars for their professors, which would cost time, effort, and
money, but is a modest price to pay for a solid reputation in commerce education.