Financial Planning and Forecasting
University of Pangasinan
PHINMA Education Network
Dagupan City
SCHOOL OF GRADUATE STUDIES AND PROFESSIONAL STUDIES
Master in Business Administration
CASE STUDY ON FINANCIAL PLANNING AND FORECASTING
Submitted by:
NARVI M. MONTANO
MBA Student
Submitted to:
PELILIA C. VELOSO, CPA, LLB, DBA
Professor
First Semester
Academic Year 2010-2011
Financial Planning and Forecasting Case Study
________________________________________
ENTREPRENEURIAL DECISION MAKING:
CONNECT CABLE CONTRACTORS
________________________________________
Caldwell Cable Company is responsible for providing and maintaining cable services to Lexington County in South Carolina. To reduce expenses and remove the burden of providing insurance and company vehicles, Caldwell Cable hires outside contractors to perform installations and initial connection of cable service. Every three years the cable contract expires and anyone can submit a closed-bid in an attempt to get the contract.
Until recently, P&R Cable, owned by Bob Martin, held the contract. Five years ago, Bob promoted an installer from within the company, named Steve Seiler, to run the business. Since then, Steve has taken on full responsibilities at P&R. On March 15, the contract came up for bid again. Over-burdened by the additional responsibilities and displeased with Bob's unwillingness to share in the profits of P&R, Steve decided to submit a closed bid under the company name "Connect Cable Contractors." Connect Cable underbid P&R by 2% (This figure was discovered later when all the bids became public record after the contract was awarded). This coupled with Caldwell Cable's preference for working with Steve, caused Caldwell to award the contract to Connect Cable.
In the course of complying with industry regulations, Steve found that Bob's treatment of worker's compensation was not in compliance with IRS regulations. Under the previous contract, Bob had passed on worker's compensation premiums to his
PHINMA Education Network
Dagupan City
SCHOOL OF GRADUATE STUDIES AND PROFESSIONAL STUDIES
Master in Business Administration
CASE STUDY ON FINANCIAL PLANNING AND FORECASTING
Submitted by:
NARVI M. MONTANO
MBA Student
Submitted to:
PELILIA C. VELOSO, CPA, LLB, DBA
Professor
First Semester
Academic Year 2010-2011
Financial Planning and Forecasting Case Study
________________________________________
ENTREPRENEURIAL DECISION MAKING:
CONNECT CABLE CONTRACTORS
________________________________________
Caldwell Cable Company is responsible for providing and maintaining cable services to Lexington County in South Carolina. To reduce expenses and remove the burden of providing insurance and company vehicles, Caldwell Cable hires outside contractors to perform installations and initial connection of cable service. Every three years the cable contract expires and anyone can submit a closed-bid in an attempt to get the contract.
Until recently, P&R Cable, owned by Bob Martin, held the contract. Five years ago, Bob promoted an installer from within the company, named Steve Seiler, to run the business. Since then, Steve has taken on full responsibilities at P&R. On March 15, the contract came up for bid again. Over-burdened by the additional responsibilities and displeased with Bob's unwillingness to share in the profits of P&R, Steve decided to submit a closed bid under the company name "Connect Cable Contractors." Connect Cable underbid P&R by 2% (This figure was discovered later when all the bids became public record after the contract was awarded). This coupled with Caldwell Cable's preference for working with Steve, caused Caldwell to award the contract to Connect Cable.
In the course of complying with industry regulations, Steve found that Bob's treatment of worker's compensation was not in compliance with IRS regulations. Under the previous contract, Bob had passed on worker's compensation premiums to his