Metropolitan Housing Project Company PDF

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Group 1Lat, AbigailReyes, Joseph RonaldPasia, Shiela MarieHOUSING PROJECTCOMPANYMETROPOLITAI. POINT OF VIEWMr. Roy Roxas, Project Manager of the Metropolitan Housing Project Company (MHPC) prepared a three year plan (1989-1991) and presented it to the Board on December 31, 1988. MHPC was formed in 1...

Description

METROPOLITA HOUSING PROJECT COMPANY

Group 1 Lat, Abigail Reyes, Joseph Ronald Pasia, Shiela Marie

I.

POINT OF VIEW

Mr. Roy Roxas, Project Manager of the Metropolitan Housing Project Company (MHPC) prepared a three year plan (1989-1991) and presented it to the Board on

December 31, 1988. MHPC was formed in 1982 to develop real estate properties which are made for sale to the public. And one of the first project of MHPC 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.

Mr. Roy Roxas was appointed as the Project Manager of Lagunaville in March 1987 where the cash balance was merely PhP110,755.00 while its liabilities amounted to P13.75 Million. During the next year his goal/objective for Lagunaville are the following: 1. To settle all the liabilities relative to the project; 2. To increase the cash balance to P2.348M; 3. To complete site development; and 4. To sell all residential lots

The abovementioned objectives can be accomplished with the following assumptions: 1. The purchasing power of the salaries of government employees is maintained at present level; 2. The Home Development Mutual Fund will take out some of our credit sales; 3. The availability of interim financing facility; and 4. The completionof the highway road leading to the site of Lagunaville Therefore, the group has taken the point of view of Mr. Roy Roxas for he is the Project Manager of the Metropolitan Housing Project Company who prepared the plan involving the development of Lagunaville which he was also appointed as the Project Manager. Also, he is in the best position to undertake actions to achieve the set goals for Lagunaville.

II.

STATEMENT OF THE PROBLEM

What is the best course of action should Mr. Roy Roxas, project manager of MHPC and project manager of Lagunaville undertake to develop the housing project (Lagunaville) and achieve his set objectives in three years successfully?

III.

ANALYSIS OF RELEVANT CASE FACTS

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 is located outside Metro Manila (which is an hour or more away).

One of the strengths of the Marketing of this company is that they can benchmark that the housing project is strategically located as it is located near UPLB.

Sales: One of the objectives of the housing project is shouldered by this functional unit, which is to sell all the residential lots.

Human Resource: The feasibility of the plan made by Mr. Roxas depends on the people involved in this project. Not just in the number of people but also with the kind of people working with this project.

External Environment Economic: In terms of economic, the project manager must clearly state all the plan of actions that supplements the minor problems, which are the following: In what ways can MHPC pay the liabilities? How can MHPC generate income? What are the marketing strategies in selling the lots? Housing projects have a lot of opportunities since the economy nowadays demands high for these businesses. MHPC must consider these common economic indicators: (1) Interest Rates, (2) Housing Costs, (3) Average Hourly Earnings & (4) Consumption Expenditures. Threats in economic involve the following: (1) Natural disasters and (2) Globalization. These two (especially no. 1) are the possible threats on a housing company. Socio-cultural: Opportunities in terms of socio-cultural is high especially the housing project that is planned is located strategically as it is near one of the top universities in the Philippines. In terms of threats, the preference of the people in terms of house designs, house capacities, amenities must be considered. 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.

IV.

ALTERNATIVES

1. Extensive promotion or advertisement of Lagunaville 2. Faster development of the highway roads leading to the site of Lagunaville 3. Faster development of Lagunaville with aesthetically-pleasing structure

V. a. Rationale

b. Implementation

c. Contingency Plan

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