• Southville International School and Colleges- Las Piñas

• CBET 01

AJL Capital Equities (ACE): Finding New Horizons Expanding and Managing Multiple Sectors BUSINESS POLICY FINAL REQUIREMENTS INTRODUCTION Key members of the board of AJL Capital Equities sat at the 28th Floor for the first Board Meeting of 2020 with the presence of all the heads of the different Strategic Business Units (SBUs). Chairman George Tria announced that the meeting’s purpose is for them to make radical decisions by moving the Group away from the familiar territory into chartering a new course. To him, the Group must venture into a new and high income generating markets so as not to drift and lose our competitive edge. Apparently, he is not pleased and satisfied with the revenue and growth performance for the past three years as compared to their competitors and also for not being able to maximize the core competency in the light of the current economic and political stability. He is wondering whether their current strategy, resources and capabilities support the changes in the competitive structure to create value for customers and gain a competitive advantage. During the meeting, the chairman called several heads of the different SBUs to present their business sector’s performance, needs for revenue growth, reasons for decreasing revenue and the need for expansion. Engr. Chit Salvador who is the president of ACE Power Cooperative (APC) is the representative for the Power Sector. Engr. Arman Laguimun, the President of Builders InfraCap Inc. (BII) is the representative of the infrastructure sector while President Ador Pacheco presented his case for banking and financial services sector; President Yna Opao of Omnom Food represented the food sector and President Architect Gerry Cayanan the land sector. Also, the Chief Finance Officer Janet Salinas is present in the said meeting. TIME CONTEXT The time setting of AJL Capital Equities (ACE): Finding New Horizons’ case is in the current year which is 2020. POINT OF VIEW In solving the ACE case, I have taken the role of Chief Finance Officer, Janet Salinas. As the CFO of ACE, the duties include tracking cash flow and financial planning as well as analysing the company's financial strengths and weaknesses and proposing corrective actions. STATEMENT OF THE PROBLEM AJL Capital Equities (ACE) has slow income gains in the overall performance and is in need of cash to fund the expansions of its major revenue streams. AREAS OF CONSIDERATION Based on the facts and data presented by the heads and speakers of the different business units, the following are the areas of consideration:  ACE had a net income of PhP 13.7 billion in 2019, down by 1% from PhP13.9 billion the previous year.  Their Power SBU, ACE Power Cooperative (APC), accounted for 69% of the total income contributions of ACE