Metro

Central Problem:

What should Metropolitan Housing Project Company do in order to develop Lagunaville in three years successfully?

•Minor Problems

1.How can we lessen or pay-out liabilities?

2.How can we analyse the case with lacking information?

3.How can we generate income?

4.How can we sell out the lots?

Objectives: 

•To settle all liabilities relative to the project

•To complete site development efficiently

•To sell all residential lots

Alternative Courses of Action:

1.Commercialize the advertisement for the residential lots for sale. 2.Revise the plan

3.Maximizing assets and incurring lower costs

Evaluation of ACAs:

1.Commercialize the advertisement for the residential lots for sale of the Metropolitan Housing Project Company. The company should also encourage prospective buyers in buying residential lots by helping them apply for PAG-IBIG housing loans.

Advantages:

oThe selling of the residential lots will somehow pay off all the liabilities. Then there will be lesser problem when we proceed with the site development. oThe faster the cash in-flows will be, the earlier the liabilities will be paid off. Disadvantages

oIn commercializing the advertisement in selling residential lots will need funds. oIf we pay off our liabilities first, then the funds for the development of the site will be scarce. oIt takes time to sell off all the residential lots. And if we rely only on the cash in-flows from the selling of the residential lots, the Lagunaville project will not be feasible within three years.

2.Revise the plan

It seems that if our first objective is to settle all liabilities relative to the project, then it will take longer to accomplish the site development of Lagunaville. Instead of paying off all the liabilities first, start with the site development. Then everything follows. Since there is a problem here regarding the finances for the site development, they should loan cash first...

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