[Solved] pepsico case study

Romeo E. Cabillo Jr. Case Study of Casa Angela Corporation M-11 Prof. Ms. Pablo March 20, 2010 I. TIME CONTEXT Casa Angela was a family-owned corporation engaged in production of ladies fans. It was established and registered in SEC in 1951. II. VIEWPOINT Mrs. Morato the president of the company felt that the cash management was deficient. At times she found herself having to put up personal funds because the company could no longer finance its internal requirements. III. CENTRAL PROBLEM Symptom:Casa Angela Corporation was suffering from an abnormal sales decline.

Cause:The fixed salary method of compensation affecting morale of the sales force. III. STATEMENT OF OBJECTIVES Must Objective: To increase in three months time the abnormal sales decline by at least 5%. Want Objective: To reduce production costs in non-worker related areas by 10%. IV. AREAS OF CONSIDERATION Strength: Casa Angela offered about 50 different types of fans which were distributed throughout the country in 30 stores and small botiques.

Major buyers were the large departments stores including shoemart (40% of sales), Rusrtan’s (30%), {text:soft-page-break} Manila COD (10%), and Tesoro’s (10%). Weaknesses: Majority of the credit policy was to grant 30-day credit period to customers. Collection had been difficult and often, the collection period reached 60-120 days. Opportunities: Casa Angela will acquire two machines that will double the volume of production with less error and would lower the labor cost.

Threats: If the decline of sales continues it would result to increase the deficit and lot of employees would be laid off. V. CONCLUSION Mrs. Morato should not just focus on the projected sales forecast because it would not help her out to increase the sales. She can also use that as basis on how she arrives with a better solution about the problem. She must cut down the labor cost since some of them are not productive. In order for her to minimize the cost of the entire operation she must decrease her administrative staff since she can perform some of the task of her subordinates. text:soft-page-break} Romeo E. Cabillo Jr. Case Study of Engineering Equipment, Inc. M-11 Prof. Ms. Pablo March 20, 2010 I. TIME CONTEXT EEI was created in April 1983. II. VIEWPOINT Mr. Francisco Medalla head of EEI was evaluating the financial statements of EEI for 1983 and he found out a decline of sales in 1979 by 5%. III. CENTRAL PROBLEM Symptom: Engineering Equipment, Inc. , was experiencing a decline in current profits. Cause: Unproductive plant workers resulting in high production costs. III. STATEMENT OF OBJECTIVES Must Objective:

To coordinate with Corporate Investments Group on corporate diversification projects, particularly, along opportunities that can upgrade present technology levels as well as broaden revenue resources on specific related activities. Must Objective: To contribute significantly to the development of the Philippines, as a major domestic source of industrial products and engineering services on a basis which is competitive with, if not superior to both overseas and local sources from the standpoint of quality and value. text:soft-page-break} IV. AREAS OF CONSIDERATION Strengths: EEI has P57,006. 858 net income in 1983. EEI has more than 90% total assets in the Philippines which are being used in reinvesting funds to get a high return. Weaknesses: EEI encountered another difficult year as it incurred substantial project cost overruns and absorbed a portion of the losses of the phased-out steel fab division following a major reorganization early in the year.

Opportunities: EEI’s head of the finance staff wanted to determine whether his company should, at some time in the near future, become a shareholder of one of the biggest engineering companies in the world through stock purchase. V. FINAL DECISION: In order to increase the net income annually the BOD and finance officer should gather and determine the strength, weaknesses, opportunities and threats to be able to achieve their goal.

ANSWER TO THE QUESTIONS: As it shown in exhibit 1 it was clearly stated that average of the total assets continued to increase. Stockholders. EEI performed better due to the increase in assets but decrease in liabilities. Strengths-EEI has the capability to monopolize its products and services since it was the first engineering equipment in the Philippines. Weaknesses-EEI found a decline of in sales in 1979 by 5% and it took 3 years to get back on track.


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