Case Analysis No.

3 (Round 2)

Metro Manila University

Submitted to: Mrs. Mirabelle Jordan Engcoy

Submitted by: Management 12 – A, Group 6

Sanoy, Shynna Bianca A.
Culanag, Rachel
Tumarong, Brylle Deeiah D.
Villegas, Trexie Anne
Felipe, Vanessa Denise O.
Layos, Eonna Ley A.

March 10, 2014:

Name
Present (Signature)

Sanoy
Culanag
Tumarong
Villegas
Felipe
Layos
I. CENTRAL PROBLEM

How should the excess cash balance of 50 million be dealt with?

II. OBJECTIVES

1. To settle the argument on what to do with the excess money

2. To help Vice President Roy Aragon realize his worth in making the decisions
3. To point out the right decision he has to make
4. To figure out the best way to deal with the excess money that would benefit the
university most

III. ALTERNATIVE COURSES OF ACTION

1. Come up with a plan to let the unit heads of the school who need the money
inform the cashier in advance, so that preparations can be made to take out
needed portions of the P50 million in Treasury Bills.
2. Investing a large portion of the P50 million in the Treasury Bills while keeping a
smaller portion for savings for unexpected expenses.
3. Create a system where fraud will easily be detected.

IV. EVALUATION OF ALTERNATIVES

1. Come up with a plan to let the unit heads of the school who need the money inform
the cashier in advance, so that preparations can be made to take out needed
portions of the P50 million in Treasury Bills.

Advantages:
 The money could be stored in Treasury Bills and can be taken out with ease by the unit
heads communicating ahead of time.
 They can plan on how to deal with the desired budget for the possibility of an organized
distribution of money from Treasury Bills.

Disadvantages:
 There might be a hard time convincing the cashier.
 The chief accountant and the cashier may disagree with each other.
 It might take time to adjust to the new system.
 2. Investing a large portion of the P50 million in the Treasury Bills while keeping a
smaller portion for savings for unexpected expenses.

Advantages:
 This will yield a higher interest return.
 There will be easy access to the P10 million for emergency expenses.
 They can protect the money from being wasted with some unnecessary expenses
which may be caused by rushed decisions in spending the money.

Disadvantages:
 It may be hard to convince the cashier.
 The chief accountant and the cashier may disagree with each other.
 It might take time to adjust to the new system.
 The committee heads of the university might not like the way of having less ease of
access to the money they need and undergoing meticulous planning of the desired
budget.

3. Create a system where fraud will easily be detected.

Advantages:
 There will be an assurance of no theft or illegal acts.
 It protects the people from the temptation of getting big amounts of money.

Disadvantages:
 It takes a lot of time, effort, and money to organize such a system.
 It might make employees feel that they are not trusted.
V. RECOMMENDATIONS

We recommend that they invest a large portion of the P50 million in the Treasury
Bills while keeping a smaller portion for savings for unexpected expenses. Since there will
be a portion left in case of emergencies only, they will be assured that the money will not
be spent for unnecessary things. They will also gain from investing in the Treasury Bills.

VI. CONCLUSION

This case analysis not only answers the central problem but also does it in a way to
make both the Chief Accountant and Cashier happy. While it’s not our job to make people
happy it is important to listen to your employees ideas especially when their suggestions
are good ones. This compromise allows the University to make the most of its money as it
such a waste just to keep it in the savings account.