Name: Lintag, Aldrin James S.

Section: ABM 12-YA-10

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.

I think their investors will be disappointed but they have seen how PLDT has revived
the business they have. Maybe their stock price is being covered by their new
income.
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 18,0000 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 think their income will really increase here because Petron is one of the most
frequent buyers of motorcycles especially and they can even help the country to
enhance the supply of gas here in our country. More people will enjoy their product
because they will also be able to expand it more because of the style of what Mr.
Ang that will enhance the country’s supply security and environmentally friendly
fuels that are affordable.
 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.

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

As the finance manager of a firm that manufactures slippers, sandals, and shoes,
first I will ask the Marketing Department, then the Finance Department and the
Operations Department. Each has essential role in the business that can provide
information on how to save money while increasing profits.

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

Each has essential role in the business that can provide information on how to
save money while increasing profits. All the information they can give me I will
accept and I don’t have to ask them because each of the ones I mentioned has its
own way and of the three I mentioned they can all help to increase income at the
same time. The quality of Shoes, Sandals and Slippers is the same.