Philippine Christian University

Sampaloc 1, Dasmariñas City, Cavite

Graduate School of Business and Management

CASE STUDY
The CFO as Predictor of Corporate Performance

Dan the CFO of Greycor, the manufacturer of domestic and

SUMMARY OF THE CASE consumers good after the years of working in the company with his
achievement, the problem arises when he got the Q result of the
company that the income was declining by 35% since the last quarter.
With Marc the CEO who focuses on the operational side of the
company ordered Dan to get to the bottom of the problem, after the
heard the report from him.
Dan started to evaluate the factors that affect the company’s
peak performance to its end. He was able to identify the 3 phase of the

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problem Phase 1 The Hidden Phase shows the attributes called
Drivers of Performance the operating dynamic of the company, 2nd

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Phase Called the Subtle phase with different measures it shows in the
parametric or key performance indicators , involves the factors of

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historic expressions of performance or the professional due diligence
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and also shows that the competitive value has been lost fully a third of
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the company’s value has been lost, And the Last Phase called The
Overt Phase in which the early decline-definitely a misnomer. Digging
deeper into his investigation surfaced in three category that impacted
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the decrease in Sales of the company that have a large effect in

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productivity. Critical Function, Generators of Performance and the

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Blockers of Performance. Determining that causes of performance-the

organizational and human factors he suggested a tool to help predict
early sign of Financial distress of the company. Dan the CFO make his
strategic plan to solve the situation of the company.
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I. TIME CONTEXT 1980

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II. VIEWPOINT Dan the CFO

III. CENTRAL PROBLEM The issue of bureaucracy and management inability to act
accordingly based on the performance of individuals in an
organization that made the financial status of the company in turmoil.

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 Must:

To be able to develop new operating procedures that entails

conferring with other departments supervisors to discuss specific
ways to cut down on employee ineffectiveness and streamline their
IV. OBJECTIVES work productivity to keep management cost down.

Want:

1. To be able to change the company’s awareness on financial

affecting factors.

2. To be able to control the effective management of cash flow and

overhead expenses and implement a strategy to increase sales.

Strengths:
1. Continuous business improvement

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2. Client Retention

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V. AREAS OF Weaknesses:

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CONSIDERATION 1. Need a better performance and financial reporting system

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2. Lack of Marketing and Sales
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Opportunities:
1. Available market share
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Threats:
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1. Loss of Profit due to declining of Income

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2. Managed Care
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1. Restructure the organizational function and use the process

of elimination to address the unproductive areas of the company.

2. Improvement of financial and operational reporting system

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VI. ALTERNATIVE COURSES to easily identify the risk and opportunities on the company.
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OF ACTION
3 Focus on dealing with factors that impacted the company’s
production and financial distress.
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VII. RECOMMENDATION (ACA#3)

Embrace technological advances a wide range of tools that
help the CFO predict the early warning of financial downfall and
measures the factors that affect the productivity of individuals in
the company.

1. Assign a team that would be responsible for the new

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2. Check the financial resources if the company can prioritize
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 the expenses even in a midst of Financial difficulty.
3. Maximize the capacity of the new tools to be able to solve
VIII. PLAN OF ACTION the primary problem of the company in critical situation.
4. Make a new guideline for the recruitment process of the
significant position.
5. Conduct a regular meeting for the updates and problems
that arises with the different department impacted of company’s
financial performance.
6. Amend the reporting structure to speed up the issues to the
top management.
7 Open the awareness of employees on the company’s status
for them to able to improve and change their working habit.
8. If needed and in order for the company to improve the
financial status eliminate the unproductive employee and hire a
competent individual to be a part of the team asset.
9. Analyze the operation, determine how the information
boost the Sales of the company.

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