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Case Study Housing Project

1117 words - 5 pages

IEBP302
Case Study (5.2)

Proponent: Justine Jude Pura
Case Study Title: Metropolitan Housing Project Company

- CASE BACKGROUND -
Story: On November 30, 1998, Mr. Roy Roxas, Project Manager of the Metropolitan Housing Project Company (MHPC) was preparing a three year plan for the period (1989-1991) for presentation to the Board on December 31, 1998. The MHPC was formed in 1982 to develop real estate properties for sale to the public. The first project undertaken by the company is the development of a real estate property located in Laguna called Lagunaville. The site is near the University of the Philippines campus in College, Laguna.

Problem: What are the possible ...view middle of the document...

The socio-cultural problem of a business usually deals with the preferences of the people/target audience/market.
Political-legal: Opportunities in political-legal in terms of government loaning in supplementing the funds of the Housing Project as the project manager aims to collect loan from Pag-ibig. This means that the housing project will be able to suffice the funds needed in doing the housing project despite liabilities that are relative to the project. The threat is adjacent to the opportunity where if it MHPC cannot pay the loaned cash, the liability of the housing project may definitely increase.
As stated in the case study, one of assumptions involve the purchasing power of the salaries of government employees is maintained at present level.
With relevance to the first statement, the company may also help potential buyers in connecting with pag-ibig house loans.
Rivalry of Competitor: Housing Projects are ubiquitous outside the Metro. This means that the threat for this aspect of the business are also from different housing projects existing in the vicinity of Lagunaville.

- INTERNAL ENVIRONMENT -
Administration: The administration of this housing project must be able to supervise all the functional units of the Housing Project. Otherwise, it will be a plan failure of Mr. Roxas. This functional unit must also ensure that the site will be developed efficiently in accordance to the plan of Mr. Roxas which is 3 years.
The administration functional unit must also review intensively the cash flows and plan made by Mr. Roxas.
Accounting: This functional unit has a big role in this business where the accounting must be able to audit all the transactions and must ensure that all the liabilities will be settled relative to the project. As stated in the case study, the success of the project will depend on the total cash inflows of P20.7 M which will be generated during the next 3 years from the collection of installment sales from the sale of new lots.
The target Cash Balance of the plan made by Mr. Roxas must be targeted and observed. With the target cash inflows and outflows, the accounting unit may easily monitor whether the housing project is a success or no.
Marketing: This will involve a number of people to commercialize the advertisement for the residential lots for sale.
This will involve a wise marketing strategy as the housing project...

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