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Our Company College Assurance Plan ( CAP ) I.

VISION: The development of a culture of achievement among Filipinos as a primary ingredient in nation building through the pursuit of life-long learning and continued academic advancement MISSION: The democratization of higher education opportunities through Digitalized Distance Education OBJECTIVES: Provide opportunities for higher education to persons who cannot go to formal or conventional schools on account of time, distance, finances and other constraints; Develop new non-traditional undergraduate and graduate programs to meet specific needs of government and industry; and Contribute to the development of Distance Education in the Philippines. SUMMARY OF THE FACTS ABOUT CAP The CAP Family of Companies this pre-need company is responsible in terms of social responsibility. Make their childrens secure through education and life security even their properties and health maintenance. A group of companies that the Filipino family can trust for an assured and better life. To hold on to as true and reliable partner through the future. Our Variety of Product

Agila Distance Education

Personal Accident Insurance or CAP General Insurance

Agila Health or CAP Health

Agila Life or CAP Life

Historical Growth
1980 1982 The CAP Family of Companies began the birth of its mother company - College Assurance Plan. Former Justice Secretary and Solicitor General Silvestre Bello III has been elected as the new independent director for the College Assurance Plan, Phil. Inc (CAP), comprehensive Annuity Plans and Pension Corp. (CAPPension) and CAP Life Insurance Corp. (CAPLife). The announcement was made by Ambassador and former Solicitor General Raul I. Goco.

1988

1989 1990

College Assurance Plan ( CAP ) was established as a non-stock, non-secretarian educational foundation. CAP College engages in education, research and related activities utilizing the non-traditional or non-formal as well as formal delivery system of instruction and grants degrees for programs recognized by the Commission on Higher Education (CHED). Distance Education it was patterned after the "open university" concept of education which is already well-established and widely accepted in more advanced countries of Europe, Australia,Canada, the United States and Asia. CAP College has developed new innovations to continuously improve its instructional delivery system. It has integrated new technological advancements that may be able to enhance the current system. CAP College School for the Deaf was established giving hope to deaf high school graduates who are looking forward to college education that will prepare them to become productive members of Philippines society. CAP Health joined to the Health Maintenance Organization, Inc. Industry in the Philippines to give insurance welfare of every Filipino to secure them. CAP College and Pension is increased of their trust fund for over 1.9 billions as of this year. Cap College continued sale of open-ended plan despite the deregulation of tuition Education Act of 1992 which saw the deregulation of tuition fees.

1992 1994

CAP and other pre-need companies enjoyed enormous sucess, with sales growing 127 percent Financial crisis that caused trust fund investment to have lower interest yields, inappropriate accounting practices, collusion among pre-need companies and their affiliates. RELI was established primarily as the arm of the CAP Family of Companies for extending financial assistance to qualified clients of CAP under the lending investors program. Its article of Incorporation and By-Laws was approved by the Securities and Exchange Commission. CAPs dealers license was suspended in 2004.

October 18,1993. 1997

2004

Computation
Revenue Current Year - 3,936,051,975 Previous Year 3,264,449,194

College Assurance Plan have a higher increase of 20% in terms of revenue from year 2000 as current year rather than 1999 of the previous year.

3,936,051,975 3,264,449,194 ________________ = 1.2057323429 1 _____________ = 0.2057323429 0.20573 x 100 = 20.573 = 20%

II. Strength and Weakness Strength Serving students in Philippines through distance learning without any expenses. College Assurance Plan assures that on time tuition payments for beneficiaries. Collectively alliance for the concern of the Filipino youth Rating WS TWS Weakness Rating WS TWS

Marketing Production Organization / Management

3 -

0.40 -

1.20 The lost of funds may affect the planholders.

-1 -

0.15 -

-0.15 -

0.35

0.70

-3

0.40

-1.20

Finance

Poor of financial capacity None requirement of daily attendance and indepently how they strategies to learn

-2

0.20

-0.40

Management Stlye

0.25

0.25

-2

0.25

-0.50

TOTAL Stength = Weakness = 2.15 -2.25 _________ -0.10

2.15

-2.25

College Assurance Plan incurred a total score of -0.10 which signifies a higher weakness over threats.

Socio-Cultural

Opportunities Giving opportunity of the impaired people or Deaf to have tertiary level.

Rating

WS

TWS

0.20

0.40

Political and Legal

Cap giving recognition through BIR a Model Taxpayer

0.30

0.60

Threats If the disabled people think if its discrimination for they and do not taking advantage to this program. Implementing new rules to the pre-need companies in case of sabotage in many planholders

Rating

WS

TWS

-2

0.35

-0.7

-1

0.15

-0.15

Technology

Economic

CAP data processing system nationwide by developing software that addresses various marketing, customer service and finance-related requirements and linking these operations through the effective use of data communications. Growing sales, trust fund, stocks, real state and bonds

0.10

0.10

0.40

1.20

Environment

1.00

1.30

Financial crisis that cause trust fund investments to have lower yield -

-3

0.50

-1.5

1.00

-2.35

Oppotunities: 1.30 Threats: -2.35 __________ = 3.65

College Assurance Plan incurred 3.65 increase base on the data eavaluated through the opportunities over threats that may cause more oppotunities coming to thecompany.

III. Competitors Profile Matrix( CPM) Opportunity Most Outstanding pre-need company Model Taxpayer Incoming college student, working individuals, senior citizens and physical handicapped person Threats Many strategies of other company through advertising establishments.

The intensity of rivalry among the competing players in the industry

Bargaining Power of Consumers

Bargaining Power of Suppliers Threats from new entrants and entry barriers

Threats from product substitute

Many pre-need companies excisting have their own variety or strategies in terms of social responsibility Low initial capital investment -

IV. Assumptions 1. General Environment Stability ( MACRO & MICRO)

MACRO ENVIRONMENT

Marketing Unstable The College Assurance Plan has unable to be number one because of the
fastest growing of many pre-need firms. Marketing efforts of the firm thus depriving the company of sales and potential income.

Competiton Stable College Assurance Plan has able to have a competiton advantage because of their number of planholders and investors that may cause grow of funds and attract others to trust our insurance company.

Finance Unstable The College Assurance Plan is experiencing cash short fall due to the policy of deregulation adopted by the Deped which resulted in the unbridled increase in tuition fees over the years. Also affect of financial crisis of the CAP trust fund investment.

MICRO ENVIRONMENT
Industry Unstable College Assurance Plan unable to industry because of their lack of capability by regulator to adequately monitor the industry that led of the skyrocketing of tuition

Technology Stable College Assurance Plan was able to rises to the challenge of the achieving full computerization of CAP Family operations to ensure efficient product delivery, effective data processing and accurate data management. Governent Stable College Assurance Plan has able in terms of government because they able to comply requirements and they did not violent of the rules and regulation and the maker thats why the cap college achieved recognition of Model Taxpayer

Asset / Liabilities Cash Advances and other Receivables Sales contracts receivable Notes Payable Accounts Payable Retirement Benefits Payable

Debit 46,665,433 190,096,359 67,742,399

Credit

304,504,191 Asset = Liabilities= 304,504,191 504,981,445 _______________ 0.6030007518

180,000,000 193,831,313 131,150,132 504,981,445

V. Problem Statement Major Problem - The financial crisis that lending to the downfall of College Assurance Plan. - The deregulation of college tuition through the enactment of the Education Act in 1982 opened the doors for a sharp rise in tuition Minor Problem - If have many existing pre-need companies and have their own standard or variety to attract planholders it may cause of low quality of our company.

VI. Grand Strategy Matrix Liquidation- is the process by which a company is bought to an end, and the assets and property of the company distibuted. Also sometimes refferd to as winding-up or dissolution technically refers to the last stage of liquidation. Advantage There are no cost implications regarding a compulsory liquidation as the petitioning creditor pays the cost. Our assets are soldand the proceeds pay creditors. Any complaints are distributed to shareholders Our company members also need not worry about any legal complaints from the creditors because the other members are taking actions to pay them back their dues.

Disadvantage it is a thorn in the heart of many plan holders beacuase they will suffer the problem of our company. And it is threats for those who want an insurance plan or educational for their future.

Retrenchment - is an economic ground to reduce the number of employees. It is the reduction of personnel for the purpose of cutting down on costs of operations in terms of salaries and wages resored to by an employer because of losses in operation of a business occasioned by lack of work and considerable reduction in the volume of business.

Advantage it is advantage to our company because less expense to the employee salaries also to prevent our losses in terms of financial stability

Disadvantage less employees, but we need to give them separation pay. Inorder to be justified, the termination of employment by reason of retrenchment must be due to business losses or reverses which are serious, actual and real.

VII. Quantitative Strategic Planning Matrix 1 Oppotunity Giving opportunity of the impaired people or Deaf to have tertiary level. Cap giving recognition through BIR a Model Taxpayer CAP data processing system nationwide by developing software that addresses various marketing, customer service and finance-related requirements and linking these operations through the effective use of data communications. Growing sales, trust fund, stocks, real state and bonds TOTAL Threats If the disabled people think if its discrimination for they and to not taking advantage to this program. Implementing new rules to the preneed companies in case of sabotage in many planholders Financial crisis that cause trust fund investments to have lower yield Education Act of 1992 which saw the deregulation of tuition fees. TOTAL Rating 0.30 0.20 0.10 AS 2 2 1 TAS 0.60 0.40 0.10 AS 3 2 1 2 TAS 0.90 0.40 0.10

0.40

1.20

0.20

1.0 Rating 0.20

AS -1

2.30 TAS -0.20

AS -2

1.60 TAS -0.40

0.30

-2

0.60

-1

-0.30

0.50

-3

-1.50

-3

-1.50

1.0

-2.30

-2.20

1 Strength Serving students in Philippines through distance learning without any expenses. College Assurance Plan assures that on time tuition payments for beneficiaries. Collectively alliance for the concern of the Filipino youth. TOTAL Weakness If the students cannot go on to their college life cause of the profit losses of pre-need firms. The lost of funds may affect the planholders. Poor of financial capacity None requirement of daily attendance and indepently how they strategies to learn TOTAL Ratings 0.25 AS 2 TAS 0.50 AS 3

2 TAS 0.75

0.15

0.15

0.15

0.60 1.0 Ratings 0.20

1.80 2.45 TAS -0.40

1.20 2.1 TAS -0.60

AS -2

AS -3

0.30 0.35 0.15 1.0

-3 -3 -1

-0.90 -1.05 -0.15 -2.95

-2 -2 -1

-0.60 -0.70 -0.15 -2.05

VIII. Swot Matrix New Strategies Embarking digitalization of Distance Education Encourage disabled people to approving our program not only deaf but also all rather. Giving training for those employees who cannot ready to adopt the bad situation coming to the company Make some unique tactics about advertising to attract planholders to be part of our company. Price-skimming strategy Improving strategic plan and their decision making to solve this kind of situation or problem Encourage more planholders to secure their life to our company in that we increase our financial status

Strength Serving students nationwide through distance learning without any expenses. Oppotunities Giving hope the deaf people to go on their tretiary level Weakness Lack of experience of employee on bad situation Opportunity Cap college granted recognition as a pioneering institution in implementation of ladderized education system Strength Cap assures on time tuition payment for their beneficiaries Threats Poor strategic alliance Weakness - Poor of financial capacity Threats - Pooribility of breakdown

Sell-diiversement

IX. Budgeting

Functional Areas Marketing

Objectives

Production

Organization / Mnagement

Finance

Strategies Embarking digitalization of Distance Education Encourage disabled people to approving our program not only deaf but also all rather. Giving training for those employees who cannot ready to adopt the bad situation coming to the company Make some unique tactics about advertising to attract planholders to be part of our company. Price-skimming strategy Improving strategic plan and their decision making to solve this kind of situation or problem Encourage more planholders to secure their life to our company in that we increase our financial status or having profit strategy Sell-out diversification

Timeliner 3 Months

Budget 120,535,118

6 Months

240,618,512

6 Months

280,500,112

2-3 Months

180,017,116

1 Months 3 to 4 Months

90,576,450 210,550,680

6 Months

320,617,501

1 Year

390,639,405