PERFORMANCE TASK 1:

ENRICHMENT- SITUATIONAL ANALYSIS

Excerpts from news articles about some Philippines listed companies are shown
below. Answer the questions after each excerpt. (10 points each)

a. The following information from a business article titled, “PLDT cuts

full-year profit forecast after third-quarter results disappoint” was posted
on Interaksyon.com (Date accessed: March 11, 2015) on November 4,
2014. From the article, PLDT management reported that PLDT’s 2014
third-quarter net income was down to P7.9 billion in the same period in
2013.
“Our third quarter results reflect intensifying competition in the cellular space
of our business, to which we have taken measures to respond to competition
and stabilize our share of market. Smart, Sun and Talk N’ Text undertook to
match or neutralize price aggression on the prepaid front, effectively lowering
price points for the same level of activity”, Manuel V. Pangilinan , PLDT
“ *

Chairman said . * ”

“Based on this market assessment and on the information available to the

company, PLDT is revising its profit guidance for the full-year to P37 billion
from the P39.5 billion previously disclosed,” Mr. Pangilinan said.

Question: How do you think will PLDT investors react to this piece of
information? What do you think will happen to its stock price ? Explain your
“ * * ”

answer.

Perhaps some inventors will back off or startled because PLDT has the
greatest internet in the Philippines so far, and despite the fact that it can be
slow at times, many people still want to register. Because of the many rivals
and those who have already tried PLDT, some people have had poor
connection, like I have because my family was a former PLDT subscriber. I
believe that the stock price of PLDT will be low or even decreased as some
investors try to find a rising company. However, I believe that PLDT can find a
way to increase those losses because even though PLDT may not be the
fastest internet provider in our country, many people still choose them, so I'm
neutral.
 b. On October 13, 2014, the following information from an article titled,
“Petron completes $2-B refinery upgrade: Firm doubling production
capacity” was posted on Business.inquirer.net (Date Accessed: March 11,
2015):

Dubbed as Refinery Expansion Project (RMP-2), this project started in 2011.

“With the upgrade, Petron said it would significantly increase production. Its
gasoline production alone is projected to double from the current 18,000
barrels per day to 36,000 barrels per day.”
In the same article, Mr. Ramon Ang, the president of Petron also made the
following statements:
“For Petron, this means increasing our revenues while improving profitability,”
Ang said. “With increased production, Petron will enhance the country’s
supply security and further lessen its dependence on higher-costing imported
fuel products. We will also be the only oil company capable of
locally-producing more efficient and environment-friendly fuels that meet or
exceed global standards.”

Question: What do you think will be the effects of this project on the long-term
profits of Petron Corporation? What do you think will be the possible effects of
this news on the share price of Petron Corporation?

I believe Petron's sales and consumers will increase as a result of the 36,000 barrels
per day, and considering that Petron has over 1,200 service stations in the
Philippines, including LPG and they sell efficient and environment-friendly products
that are healthy for our environment, imagine their revenue. Because of that, all of
them will skyrocket in no time. In terms of stock price, I believe the same can be said
for their profit. It will rise even if your stock price or share price is only 1% higher,
which is fantastic news if you own a share or stock in Petron since your 1% may rise
as the company's stock price rises.
 1.5 EVALUATION Go beyond walls: Apply it in real life

You are the finance manager of a firm that manufactures slippers, sandals and shoes. The
owner of the business approached you and asked for your opinion on how to save money-
in effect increasing profits- without sacrificing the quality of your products.

(my answer or the changing you gonna do: WERE NOT gonna sacrifice the quality of the
product but we are gonna add a new product that will not effect much of the money --i'm
gonna use a strong eco friendly people gonna choose that kasi aside na cheap yung
materials na gamit we help the country or the earth to lessen the water bottle *unnecessary”
kasi kung gagamitin natin yung recycle things we can lessen expensive materials and since
wala pa masyado gumagawa ng recycle slippers, sandals and shoes many people gonna
buy it

a. What departments in your company will you tap to gather data that can help
you in your analysis?

I have a perfect department for collecting new data which is Marketing Research because
they are good at collecting and analyzing aside from that they are helpful from the company
we can used or we can improve the company itself.

I can used some help from market intelligence department because they can gather an
information by looking if my ideas is not already existing and if my idea is already exist i can
change or think new one.

b. What type of information will you ask them for?

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c. Create a proposal that you will present to the owners of the company. Use the
format given below for your proposal. (You may add another sheet of bond
paper if necessary.)

Objectives Activity/ Person Estimated Time Expected

Project /Department Budget Frame Result
(Make this Involved
SMART) (Project (# of
name Finance months
and how manager or
to years
execute) Marketing to finish
research the
project)