Essay About Bargain Mart And Case Analysis

Case Analysis on Bargain Mart, Inc.
[pic 1][pic 2][pic 3]De La Salle UniversityRamon V. Del Rosario College of BusinessManagement of Financial Institutions Department Case Analysis onBARGAIN MART, INC. In partial fulfillmentof the course requirements inMSC535M – Financial Management   Submitted to Prof Ken Yumang Prepared by Group 4Jed AbapoClarice AcordaApril Joy BalabatJonalyn Mendoza[pic 4]Adonis Lee Villamor[pic 5]TABLE OF CONTENTSI.        CASE BACKGROUND        2II.        PROBLEM STATEMENT        3III.        POINT OF VIEW        3IV.        ASSUMPTIONS, SCOPE and LIMITATIONS        4V.        CASE ANALYSIS AND FRAMEWORKS        4A.        Financial Analysis        4B.        TOWS        7C.        COMPARATIVE ANALYSIS OF OFFERED SERVICE WITH COMPETITOR        8VI.        ALTERNATIVE COURSES OF ACTION        9VII.        LOGICAL ANALYSIS        10VIII.        LOGICAL CONCLUSION and RECOMMENDATION        11 CASE BACKGROUND        Bargain Mart, Inc, was established as a small grocery store in 1963 located in Cubao that offered the most complete product line at the most reasonable prices.  In 1965 to 1970, further expansion was made.  Head office was established in Makati along with the construction of additional branches in Makati Avenue, Greenhills, Cebu, Iloilo and Bacolod.  Over its 19 years of existence, the company’s net sales reached P251 million with total assets valued at P32.8 million.          Bargain Mart, Inc. trusted the Progressive Banking Corporation (PBC) for its cash management and Metro Bank for its financing requirements for their quality and wide range of services offered, nationwide branch network, stability, interest rates and prompt action of service requests and processing of the company’s loan.  PBC offered the following services to Bargain Mart: (1) pick-up and delivery services; (2) a special teller accommodation; (3) technical advisory services on investments; (4) higher interest rates on money market placements; and (5) additional security measures to protect the case-in-transit.  However, Mr. Raul Salas, Bargain Mart’s VP for Finance, in a meeting with Mr. Ralph Lorenzo, branch manager of Banko Nasyonal, mentioned their intention to change the bank for their cash management needs.  Bargain Mart’s was disappointed because of PBC’s frequent failure to collect cash proceeds from Makati branch causes the company to kept a huge cash collection of P500,000 to P600,000 to its vault overnight.  This had necessitated the employment of additional security personnel and the demand for employees to render overtime services thus increasing the company’s overhead cost.