MetroPolitan Housing Project Company
I. Central Problem
How can the Metropolitan Housing Project Company meet their objectives in three years?
II. Objectives: 1. Settle their liabilities relative to their project 2. To sell all residential lots 3. Have a realistic plan
III. Alternative Courses of Actions:
1. Sell all residential lots to government housing agencies or organizations Pros: a. Capital will increase, thus, providing a way to lower liabilities b. There is a possibility of having the sites sold faster since the government needs more housing sites for relocation of poor people c. Cash balance after three years may be increased Cons: a. There's no assurance that the organizations/agencies will buy the land especially if the site does not meet their standards b. They may not achieve agree with the price range of houses
2. Sell portions of commercial lots. Pros: a. As time goes by, capital will increase, therefore, providing a way to lower liabilities Cons: a. It takes time to find a buyer. b. Might not be able to achieve the price they want due to variables
3. Evaluate and revise the three year plan Pros: a. Objectives will be more achievable b. The probability of unexpected or unwanted results (below expectations) may be lessened c. Liabilities will be settled one by one d. Sudden changes—increased site development costs and the same selling prices of lots—may be prepared for Cons: a. It takes time to evaluate and revise the original plan regarding the variables and factors that could affect the flow of the plan b. Be more practical with their assumptions Pro/s: a. Sudden changes of events—labor force demands increase in salaries, highway road may not be completed in time, etc.—can be of no surprise to the company Con/s: a. Practical assumptions may hinder achieving what could be achieved
4. Maximizing assets and incurring lower costs Pros: a. Liabilities would be settled as soon as possible b. Cash balance at the end of
How can the Metropolitan Housing Project Company meet their objectives in three years?
II. Objectives: 1. Settle their liabilities relative to their project 2. To sell all residential lots 3. Have a realistic plan
III. Alternative Courses of Actions:
1. Sell all residential lots to government housing agencies or organizations Pros: a. Capital will increase, thus, providing a way to lower liabilities b. There is a possibility of having the sites sold faster since the government needs more housing sites for relocation of poor people c. Cash balance after three years may be increased Cons: a. There's no assurance that the organizations/agencies will buy the land especially if the site does not meet their standards b. They may not achieve agree with the price range of houses
2. Sell portions of commercial lots. Pros: a. As time goes by, capital will increase, therefore, providing a way to lower liabilities Cons: a. It takes time to find a buyer. b. Might not be able to achieve the price they want due to variables
3. Evaluate and revise the three year plan Pros: a. Objectives will be more achievable b. The probability of unexpected or unwanted results (below expectations) may be lessened c. Liabilities will be settled one by one d. Sudden changes—increased site development costs and the same selling prices of lots—may be prepared for Cons: a. It takes time to evaluate and revise the original plan regarding the variables and factors that could affect the flow of the plan b. Be more practical with their assumptions Pro/s: a. Sudden changes of events—labor force demands increase in salaries, highway road may not be completed in time, etc.—can be of no surprise to the company Con/s: a. Practical assumptions may hinder achieving what could be achieved
4. Maximizing assets and incurring lower costs Pros: a. Liabilities would be settled as soon as possible b. Cash balance at the end of