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2010

[ATENEO MULTI-PURPOSE COOPERATIVE]


A Corporate Strategic Audit (Part 1) on the Ateneo Multi-Purpose Cooperative by Randolph Cobankiat,
Geoanna Corneby, Marianne Liamzon, Ranessa Lim, Cristina Nubla, Nathan Santos, and Kisses Sia

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 1

CONTENTS
Introduction ............................................................................................................................................................................ 2
II. The Industry ...................................................................................................................................................................... 3
Brief Background............................................................................................................................................................... 3
The Big Picture: The Food Service Industry in the Philippines .................................................................................. 3
Industry Structure .............................................................................................................................................................. 4
Ateneo Food Service Industry ...................................................................................................................................... 4
Major Players of the Ateneo Food Service Industry ................................................................................................... 6
PEST analysis ................................................................................................................................................................. 11
Political ........................................................................................................................................................................ 11
Economic ..................................................................................................................................................................... 11
Social ........................................................................................................................................................................... 11
Technological .............................................................................................................................................................. 11
Recent development and Trends and its Implications on the Company ..................................................................... 11
The Company ...................................................................................................................................................................... 12
The Firms Business Concept ........................................................................................................................................ 13
Organizational Profile ..................................................................................................................................................... 15
Performance Highlights and Major Accomplishments .................................................................................................. 18
Performance Highlights in Individual Committees. ................................................................................................... 21
Strategic Issues and Organizational Problems Experienced ....................................................................................... 22
Pro-Forma Financial Statments ..................................................................................................................................... 23
IV. Conclusion ..................................................................................................................................................................... 30
Sources................................................................................................................................................................................ 31

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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INTRODUCTION
Every student of the Ateneo has gone to the cafeteria for a days meal. The Ateneo de Manila Multi-Purpose
Cooperative (AMPC) is the organization in charge of the operations in the first floor of the cafeteria. It was
established in 1975 by Economics college students, with the leadership of Ramon Baltazar and some members of
the faculty, staff, and the administration. While it started with 25 members, it is now listed under the Cooperative
Development Authority, with a line of service offerings: Cafeteria, Catering, Credit, and Convenience Store.
More than the other mentioned services, AMPC is most known for its home-cooked value meals. In the cafeteria, the
AMPC stall is where you can get the most with your Php65: a sizeable serving of rice and your chosen dish, a side
dish varying from mixed vegetables or a sunny side up egg, and a glass of cold iced tea. There is, however, more to
know about the AMPC other than their menu offerings. The AMPC currently has five permanent committeesAudit
and Inventory, Credit, Election, Education and Training, and Financeand another five standing committees
Canteen Operation, Conciliation, Human Resources Development, Membership, and Finance. Each committee has
its specific function, with three members elected during the annual general assembly. Through the years, this
specialization and departmentalization efforts have led to the greater efficiency of the cooperatives operations.
Sales as of the end of 2008 amounted to an impressive Php21,764,713.78, while total members have reached a
number of 1,132652 of these are in good standing. Indeed, the Ateneo Multi-Purpose Cooperative has been
performing above and beyond, benefiting more and more of the Ateneos stakeholders, most especially the faculty
and staff, and other employees. Then again, there is always room for improvement.
The net profit of every months operations is distributed to funds for beneficiaries, particularly the Reserve fund, the
Education and Training fund, Land and building fund, Community development and social fund, and Interest on
capital and patronage rebates. Compared to the sizeable revenue record, the net surplus allocated is a small
percentage. One reason for this is the high selling and administrative costs, because the cooperative is very stringent
when it comes to compensation and employee benefits. Another reason is the increased competitorstrends and
developments both inside and outside the campus have resulted to more and more establishments vying for the
Ateneo markets share of stomach. To increase net surplus to be allocated, common accounting knowledge dictates
that the cooperative can increase its revenues and/or decrease its costs. This audit will then be focused on offering
recommendations that would enable the organization to increase its revenues while decreasing its operative and
other expenses.
Furthermore, this strategic audit seeks to perform a comprehensive analysis on the cooperatives structure, culture,
and operations. A review of the internal and external factors affecting AMPC will identify problem areas that need to
be addressed, strengths that the organization should focus on, and opportunities that can be explored. As a form of

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 3

conclusion, this paper aims to offer insights and relevant recommendations on the areas of Marketing, Operations,
Public Relations, and other areas that will result to more efficient systems and the continued success of the Ateneo
Multi-Purpose Cooperative.
II. THE INDUSTRY
BRIEF BACKGROUND
THE BIG PICTURE: THE FOOD SERVICE INDUSTR Y IN THE PHILIPPINES
Food has always been a huge part of the Filipino culture. The importance of a family dining experience, the fiesta
traditions, the sumptuous Filipino cuisine, are among the reasons why food remains a significant factor in the lives of
Filipinos. The consumer foodservice or the CFS is composed of full-service restaurants, fast foods, cafs/bars, street
stalls or kiosks, cafeterias, and 100% home delivery/take away. The following figure shows a visual representation:

Food Service
Industry

Full Service
Restaurants

eg. Italianni's,
Aristocrat

Fast Foods

eg. McDonald's,
Jollibee

Cafes/Bars

eg. Starbucks,
Figaro, Padi's
Point

Street
Stalls/Kiosks

eg. Burger
Machine, Potato
Corner

Cafeterias

eg. AMPC, Cervini


Cafeteria

100% home
delivery/take away

eg. Andok's,
Chooks To Go

Here and there, people can see food service businesses mushrooming, however, as more and more stores are being
put up, more and more stores are also closing down. Although the data back in 2007 showed that the food service
industry had a 7.5% CAGR (Capital Annual Growth Rate) from 2004-20061, data in 2009 showed a slowdown in

http://www.researchandmarkets.com/reports/659038

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 4

growth of the industry compared to previous years. Compared to full service restaurants (FSR), specialty coffee
shops and/or cafes are fast growth in the country since they target those who belong in the higher market segments
who are more likely to be resistant from the economic slowdown. Likewise, chained restaurants are especially
popular nowadays. The franchise culture has been continuously growing and gradually over taking the independent
CFS (Consumer Foodservice). This is affected by both local and international movers in the industry.
In the midst of the economic crisis, projected growth of the CFS is estimated to be only about 1% in the next few
years, with the exception of convenience store fast foods and specialty coffee shops which are more likely to gain a
higher growth rate.2
Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2008-2013
% growth
2008-13 CAGR
2008/13 TOTAL
Units
1.0
4.9
Transactions
0.9
4.4
Constant value
0.5
2.4
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor
International estimates
Market segments served. As an industry that caters to all market segments from classes A to E, the CFS plays a
big role in the Philippine industry. The various types of foodservice cater to specific market segments, too. For
example, the cafs mostly cater to classes A to upper C income brackets, while most fast foods can cater the most to
classes B to D. The CFS also responds to the needs of all age groups. The cafeteria type, on the other hand, caters
to the segments where they are accessible, schools (students and teachers), hospitals (doctors, nurses, friends and
family members of the sick), commercial buildings (office workers, clients), etc. Target markets also depend on the
specific segmentation and positioning of the firms.

INDUSTRY STRUCTURE
ATENEO FOOD SERVICE INDUSTRY
The Ateneo Food Service Industry refers to the portion of the foodservice industry that affects and caters to the
Ateneo market. Inside the Ateneo, students have access to a lot of foodservice businesses. There is the AMPC or
the Ateneo Multipurpose Cooperative, the JSEC or the JGSOM Student Enterprise Center, the Blue and Gold

Consumer Foodservice Philippines. Data from Euromonitor. Accessed January 18, 2010.
http://www.portal.euromonitor.com/PORTAL/DocumentView.aspx

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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Cafeteria, the Manangs, ISO Cafeteria, Cervini Caf, the new student residences/dormitory cafeteria or Ze Caf, the
Loyola Schools of Theology (LST) cafeteria, and also Figaro. Students also hold occasional bazaars and food sales
which also provides the student body with more food choices. Outside the campus grounds, countless food
establishments can be found along Katipunan; most significant ones are McDonalds, Jollibee, Shakeys, and KFC.

AMPC
Blue and Gold
JSEC
Manang's Clubhouse
ISO Cafeteria
On-campus
Cervini Cafeteria
Figaro
Ze Caf

Ateneo Food Service


Industry

LST cafeteria
occasional food sales/bazaars
Off-campus

Food service establishments-Katipunan

Considered as the main competitor of AMPC, Blue and Gold cafeteria is just located above AMPC (in Gonzaga Hall).
Both cafeterias have concessionaires that increase the number of people who choose to eat at the place. Blue and
Golds main stall is comparable to the AMPC stall at the corner of the ground floor cafeteria. They both sell homestyle meals at affordable prices; although Blue and Gold offerings are a bit more expensive. Another main competitor
is the student-run JSEC.
Other competitors include the Manangs which has established itself as a brand known to students and alumni alike.
ISO cafeteria also has a good following, they also get the market share from the offices near the ISO area which is
relatively farther away from other food service establishments inside Ateneo. The Cervini Cafeteria and the Ze Caf,
on the other hand, caters the most to the needs of the on-campus dormers, but they also have a following amongst
the non-dormers. Figaro, a coffee shop inside campus, also serves as a competitor, this competition is further

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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emphasized because AMPC also sells coffee (instant coffee, Nescafe Freeze, and Juzi Juiz Coffee Boomba). The
LST cafeteria also has its following from both the undergraduate students, graduate students, the Jesuits, among
others.
Market segments served. The market segments served by the Ateneo Food Service Industry include the Ateneo
student body (both graduate and under-graduate students), faculty and staff, other Ateneo employees, guests and
visitors. These markets range from classes A to lower C.
Growth trends. Through the years, food choices inside the Ateneo campus have grown significantly. There are new
concessionaires in the cafeterias, and there are also new (or relatively new) cafeterias (eg. Ze Caf, JSEC). Outside
the Ateneo, Katipunan Avenue is lined with numbers of food establishments, both old and new. These are signifiers
that there is positive growth in the Ateneo Food Service Industry. This may be explained by the growth in student
population and also by the increasing number of student enterprises as embodied by the JSEC and studentorganized bazaars and food sales.

MAJOR PLAYERS OF THE ATENEO FOOD SERVICE INDUSTRY


Blue and Gold
Occupying the same building, AMPC and Blue and Gold are thought to be the same by guests and new students.
Blue and Gold has a lot of concessionaires, too. Their list includes KFC, One Big Flame, Chillers, Cannan, 7-11,
among others. One of their weaknesses is their shorter operating hours. By 5pm, this cafeteria closes down and
people who are hungry are left with fewer choices, and this greatly benefits them, especially the AMPC which is near
the area and closes at a later time.
JSEC
John Gokongwei School of Management Student Enterprise Center is located near the Matteo Ricci Hall which
allows them to gain a competitive advantage over the AMPC and Blue and Gold when it comes to students who love
staying and studying at the hall. Every year, almost every food stall changes. This is because the place is exclusively
for the use of Ateneo students. Those who have stalls and are graduating have to leave JSEC to allow new budding
Ateneo entrepreneurs to put up their own stalls. Some offerings are more expensive than AMPCs, but some are also
relatively cheaper. This year, most people notice that the JSEC is occupied mostly by internationally-themed food
stalls (eg. Orange Elephant Thailand, Kalbi Korea, Fu-Yoh Malaysian, Buddha Bean Chinese, etc.)

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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Cervini Cafeteria
The Cervini cafeteria has established its name already. They have a strong following as the food service
establishment has built a fanbase of some of their specialty dishes that are loved not only by dormers but also by
non-dormer students. They serve home-style meals, as well. They also accept cooking jobs from dormers, they can
buy their ingredients, canned goods, soup mix, and let Cervini Caf cook them for just as low as (around) P10.
New Dorm Cafeteria
The new student residences located near Cervini and Eliazo also has its new cafeteria, Ze Caf. This establishment
capitalized on the ambience of the store to attract more students, faculty, and staff of the Ateneo. Its main target
market is the residents of the new dorms in the Ateneo. Since it is new, people are also intrigued and are pushed to
visit the cafeteria and order food.
ISO Cafeteria
The ISO cafeteria offers a different set of dishes every day for a week ranging from vegetables dishes at 30 40
pesos to beef, pork or chicken dishes at 50 60 pesos, depending on the type of dish. They offer different varieties
of desserts that are subject to availability. This consists of a line wherein people line up with their trays, point to the
type of dish they want or what soft drinks to drink in which 2 or 3 of its employees will be the ones to cut the servings
for them. Different biscuits, chocolates, candies and other sari-sari store sold treats are also displayed at the end of
the line before the cashier in which they are paid before they proceed to their tables.
ISO Cafeteria presents a unique and focused market. It however, earns mostly during lunch after which only about 20
30% of seats will be filled after lunch till they close before dinnertime. They cater to the Ateneo offices that surround
it such as the Pathways office and the ISO offices. They also cater to dormers of the ISO (although dormers would
usually eat elsewhere unless they decide to return to their dorms; even which most of them would decide to just eat
outside). One of their biggest markets would be the guests that decide to have their overnight or whole day
conferences, meetings, spiritual retreats and the like in which they would cater to these people with snacks and
meals (These guests have an option however not to).
The ISO however, attracts a unique crowd. While Manangs, the Cafeteria and JSEC are usually crowded almost the
entire day, the calm and off peak hours of the ISO cafeteria attracts three types of people: the first would be the
barkada who would like to find a table to eat together and chat all they want without any noise competition; the
second would be people who does not wish to be seen eating alone or those who wish to eat alone in which they find
more comfort in eating in the ISO cafeteria especially during its off peak hours. The third would be people who would
walk their way to the ISO cafeteria just to eat their sisig which is the bulwark of the ISO cafeteria. For 60 pesos, you
get sizzling sisig served on a sizzling plate with half rice (additional half rice is 5). Pork is of course their best seller

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 8

and even though they have off peak hours after lunch, there are times when even their tuna sisig is sold out! Their
seating capacity would be around 50 to 60 people.
Manangs
Manangs is situated beside the covered courts area, the YOGA and Tai-chi area as well as the table tennis area.
They cater to mostly freshmen and sophomores because these are the year levels with mandatory PE. Unlike the
ISO cafeteria which rotates its food choices from time to time (except sisig and some desserts), Manangs keeps most
of its food choices constant everyday. Their popular consistent dishes are liempo, longganisa, lumpia and lechon
kawali. These are the best sellers that have captivated the hearts of many Ateneans which we can say one would
look for or crave for from time to time.
The staffs there have been the same staffs for a long time, with Lola the owner, as many customers would call her;
takes part in serving the customers and handling the cashier. This way, they create a sort of customer intimacy and
customer loyalty. Manangs prices are expensive (but cheaper than the JSEC, ranging from 50 pesos per main dish
order to 20 30 pesos for side dishes like a piece of longganisa or lumpia. They also have small treats (chocolates,
candies, pulvoron) at single digit prices as well as bananas and mangoes that sell for 10 30 pesos per piece. They
also serve drinks like the ISO ranging from C2 to bottled soda to mineral water at 25 30 pesos. Their seating
capacity is irregular - seating a range from 30 50 people (the space may be smaller but much of the seats are
benches so they are dependent on the size of the persons or whether the barkada decides to crowd one table. Much
of juniors and seniors rarely eat there because there is no longer a situation that calls for it (many of which are timeconstrained: Manangs is out of the way and they are busier despite being free of PE).
Manangs dishes are famous especially when added with their homemade vinegar. They are excellent in enhancing
flavour and appetite especially when added with lumpia, longganisa or liempo. Some Ateneans even drink it or eat it
alone with rice.
Loyola School of Theology School Cafeteria (LST)
The LST is a cafeteria which is often not heard of because it is far (almost 10 15 minute slow walking distance from
the covered courts as you enter narrow stretch of road (Paseo de Raily). What sets it apart though is the way in
which many people are attracted to it and even eat there regularly because it has the cheapest pricing in all of
Ateneo. It is important to be there between the times of 11 am to 2 pm if you hope to have any food left. The tables
that can seat around 40 people will be all occupied by students coming from the theology by the time 12 strikes, so
any Atenean willing to walk 10 15 minutes to LST must be there earlier. As the name implies, it is situated around
the Loyola School of theology, so most of its customers are would be student Jesuits or Jesuits themselves.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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LST offers a wide range of food from meals to canned goods to cup noodles. Only their combo meals however are
what people usually go after. They offer 6 sets of dishes, 3 main dishes and 2 side dishes. 1 dish (chicken for
instance) and I side dish (pancit) a cup of rice and a cup of gulaman would cost only 47 pesos. There dishes are not
consistent but despite their cheap prices, their dishes remain delicious and palatable. An entire plate of pancit or
bihon (side dish turned main dish) would cost only 20 pesos. Few people actually know about this, and sometimes it
takes a year or two before Ateneans actually discover the place mostly through friends and higher batches. People
choose to go because the food it cheap or people refuse to go because it is too far for them its that simple.
Figaro
Figaro is located in two areas the MVP ground floor area as well as the Matteo Ricci 2nd Floor. Both of them are
strategically located at a particular vantage point to cater to a different set of people. There marketing strategy is
simple: location location and location. They are given a space so near student centered areas and are able to provide
a bit of ambiance that a cafe is supposed to provide. Apart from that, this allows them to compete with Starbucks
supposed close location and Bos coffee. The most important factor is rent, because they need only pay a mimimum
fee by percentage of earnings which allows them to survive even when they do not sell well. Furthermore, they have
no direct competitors.
Figaro offers high end coffee (almost 90 140 pesos) through disposable packaging (which gives them a huge
advantage in maintaining their concept of class because they are not subjected to the none-disposable package rule
in Ateneo). Their cakes, muffins and pastries are no different, ranging from 50 pesos to 90 pesos a piece. Both of
these stores do manage to capture the student market, although Figaro MVP is doing much better. Their seats are
for Figaro customers only, so people usually buy a latte for instance and sit there for quite awhile. Figaro Matteo
however, has to rely on students wanting to buy because students may freely occupy seats without buying from
them. While observing their market however, we found out that students often order take outs (a large factor being
their disposable containers) On a weekday, while observing student traffic in Figaro MVP from 3:20 to 4:22, we have
seen over 10 transactions, half of which ordered a take out. This market is directed to people who wants a premium
kind of beverage other than cheap vending machines. Their market is also extended towards teachers who have
more spending power.
Food Sales and Bazaars (AMA MALL, MECO, ASTAT)
Food Sales and Bazaars last only a week at most, and their intentions are to test market their product, therefore, their
products are directed to a student market that is curious as well as friends of stall owners who support the food stall.
It does affect the overall sales of other food establishments, but this is miniscule.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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First of all, bazaars do not provide seats and are therefore for students who have additional spending power.
Furthermore, These are usually students who are on-the-go for something to drink or something quick to eat.
Sandwiches, ice cream, milk tea and sausages are some of the more well known food establishments in Bazaars.
Their price ranges from 40 50 for drinks and 50 70 for food. Food establishments that will mostly experience
sluggish sales on these times will be snack establishments that provide a similar product or substitute. There are
many students however, who have limited spending power, who prefer to eat and drink what they are already
comfortable with.
Students coming in the cafeteria seats to eat bringing in products from the bazaars are quite normal, but they would
usually purchase something else there or eat with friends who still eat at the AMPC or cafeteria grounds.
Furthermore, these establishments do not see these bazaars as a threat because they know this is merely shortterm. There is a huge influence however on how the student market would start to see products and compare them:
Frozen Nibbles tastes better than ice cream from 7-11; the Comfy Cups milk tea tastes way better than Buddha
Bean milk tea or Figaro and is even cheaper; the Weeners sausage looks better and tastes better than Tender Juicy
Hotdog from the Cafeteria. These influences are also causes for concern

from the already present food

establishments. They should expect lower sales on these occasions.


Establishments in Katipunan
Although these are out of Ateneo grounds, these food establishments are a considerable competitor to be reckoned
with. The establishments that we wish to dicuss are within the same price range as the cafterias in school. Choosing
establishments based on pricing strategy provides a basis on which to identify direct competitors.
o

Jollibee and Mcdonalds

Jollibee and Mcdonalds are competitors within themselves and food establishments in the Ateneo are already
considered indirect, although the student population plays a big role in sales. This is because both of these fastfoods
provide delivery and are also near the univeristy grounds which cater to all Atenean crowds even dormers late at
night, who when we interviewed some randomly, still prefer to eat out because they get sick of the food that that the
cafeteria near their dorms provides them. There are exceptions though when it comes to their delivery. While one
may get a complete meal with drink at 60 pesos or so, an estimated budget of satisfaction would be around 100
pesos. i Jollibee opens at 10:00 am to 8:00 pm only, while McDonalds is open 24 hours. Minimum delivery
requirement for both firms must be 165 200 pesos. Apart from that it would take almost 30 to 45 minutes for
delivery.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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PEST ANALYSIS
POLITICAL
Politcal forces may affect the Ateneo Food Services Industry in many ways. First of all with the push for an
elimination in disposable containers in the hope of bringing ones own baunan. This has caused a great
inconvenience on the part of the students as well as many food establishments who have an account of lost plates
and cups. There are also problems concerning deposits and how many food establishments in the Ateneo can keep
their image through their supposed packaging. This is also affecting students who have difficulty adjusting. This also
includes all the benefits and minimum wage requirements that the AMPC must comply with (PHILHEALTH, SSS,
PAG-IBIG, retirement benefits etc...)
ECONOMIC
Ateneo Food Services Industry is not very affected with the economic situation because of the high end market that
they continue to cater to. Students in Ateneo although have limited spending power also remain consistent with their
spending power. In fact we spoke with Obento and they were given permission to increase their prices by as much as
5 pesos from the last year due to the rising costs of ingredients.
SOCIAL
Social factors are a big concern in the Ateneo Food Services Industry. FQA and emphasis on safety are very crucial
especially when serving students who the university is responsible to care for. Health consciousness is also a
growing factor among students who prefer eating foods with less rice and fat. Students who eat alone do not wish to
eat in the cafeteria either because it is a market for cliques to hang out.
TECHNOLOGICAL
There are not much technological needs for the Ateneo Food Services Industry. The cooking equiptment as well as
facilities are still the same 4 years ago and are still well maintained.

RECENT DEVELOPMENT A ND TRENDS AND ITS IMPLICATIONS ON THE COMPANY


More stalls have entered the AMPC market. These stalls or sub-concessionaries at the cafeteria as of 2009 include
Athenas Kitchen, Lil Orbits, Pizza Hut, Marius n Moiras Snack Bar and Lemon Balm. These were carefully taken
into thorough deliberation, food tasting as well as discussions over who to retain and who to accept.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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Apart from that the AEMC E-BEE Campaign was also a recent developement: sinks and counters within the vicinity
of the cafeteria located near the red brick road and right beside and cafeteria grounds as well as one near JSEC.
This is in line with the need to increase food safety standards and promote hygiene in light of the H1N1 as well as the
elimination of disposable packaging.
ClayGo (Clean as you go) and BYOB (Bring your own baunan) were also implemented with incentives of a 5 peso
discount in the hope of incorporating corporate social responsilbility towards the environment. This though was not
implemented strictly and while many Ateneans are aware and do these tasks, there remains quite a number who still
leave their plates on the table. The BYOB scheme has not been successful either. Only 5-7% of the population
including Ateneo employees bring their own baunan. This is because of the hassle of bringing baunan as well as the
notion that baon is equated with immaturity. Many Ateneans also do not see the value in saving 5 pesos over having
to go through so much trouble.
It was not a total fail however, because Ateneo has managed to reduce waste by over 70%. New provisions for
waste disposal (Recycled, Other Waste, Dry Paper, Compostables) were also implemented and although many
Ateneans find it hard to segregate their garbage at their proper places, their willingness to try is a huge improvement
towards environmental concern. There is also a new deposit scheme so AMPC would not constantly have to account
for the losses of plates that are brought out or are lost. These deposits however are given on cost meaning the
student is not being cheated in anyway.
Renovations have also been made outside of Ateneo in their attempts to tap into the Ateneo market. Mcdonalds is
now open for 24 hours which is market focuses on late night dormers. It is not only airconditioned but it now provides
wi-fi services for free to customers.
We can see more competitive SOMBA and LS groups who participate frequently in bazaars. With each of them
specializing in a specific food or beverage, such as sausages (World of Weeners), cookie ice cream (Frozen
Nibbles), Premium milk tea and dessert served in a cup (The Comfy Cup) and even Japanese food served Filipino
style to bring not only new food but new experiences and a greater appreciation for food which is art and life in itself!

THE COMPANY
The Ateneo Multi-Purpose was put up in the 1970s when a variety of environmental factors spurred social
consciousness among students and employees of the Ateneo. This time was when Martial Law was in place and
injustices were committed against the disadvantaged sectors of society. Along with the First Quarter Storm, leaders
of the Ateneo were compelled to respond by leading the entire institution to become men and women for others.

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There was a heightened call to become more sensitive to the needs of the less fortunate and to respond by fighting
for justice and fairness in behalf of them.
Ramon Baltazar accompanied by economic students of the Ateneo saw an opportunity in the universitys very own
cafeteria. The cafeteria was then operated by a private concessionaire, whose workers reported of unjust labor
practices and undue compensation. In 1974, a pre-cooperative was organized under the name Ateneo Consumers
Association Inc. (ACAI). The Ateneo immediately gave its full support to the organization by granting full rights in the
operations of the college Cafeteria concessionaire. The Ateneo also lent cafeteria equipment to ACAI. Two years
after, the Bureau of Cooperative Development, under the Ministry of Agriculture, recognized ACAI as a cooperative.
Once the cooperative was in order, its further development continued to what it has become today. It expanded its
services and scope to running a retail store, including transport, credit, and education funds, and offering stalls to
sub-concessionaires in the 1990s. in 1997, it was renamed the Ateneo Multi-Purpose Cooperative.
THE FIRMS BUSINESS CONCEPT
A cooperative is defined as a duly-registered association of persons with a common bond of interest, that seeks to
achieve a lawful common social and economic end, that is accepting a fair share of the risks and benefits of the
undertaking, who makes equitable contributions to the capital required.3 A cooperative has the following principles:
Open and voluntary membership, democratic control, limited interest on capital, division of net surplus, continuing
cooperative education, cooperation among cooperatives, and concern for the community. There are six types of
cooperatives, one of which is multi-purpose, a combination of the other types; this is the category in which AMPC
belongs.
Adopted in May 25, 2001, the Ateneo Multi-Purpose Cooperative promulgated a set of Mission, Vision, and
Objectives that gave the organization and its stakeholders a focused direction through a unified goal.

Ateneo Multi-Purpose Cooperative. Pre-Membership Education Seminar Discussion Guide.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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Mission
To promote, strengthen, and improve the operations of Ateneo de
Manila Multi-Purpose Cooperative thereby making it a practical
vehicle for providing maximum socio-economic benefits and
services to its shareholders and to the members of the Ateneo de
Manila University community

Vision
A caring and sharing community of persons who are able to
improve their quality of life and attain social justice through a
viable and responsive cooperative.

Goals
1.
2.
3.
4.
5.
6.

To encourage thrift and savings mobilization among the


members
To generate funds and extend credit to the members for
productive and provident purposes.
To provide goods and services to the members.
To develop among its members expertise and skills and teach
them efficient ways of doing things in a cooperative manner.
To propagate cooperative practices and new ideas in business
and management.
To help bring about a stronger cooperative movement through
linkages with other cooperative or off campus.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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The core strategy of the Ateneo Multi-Purpose Cooperative revolves around the concept of selling home-cooked
meals at reasonable price. Among the value disciplines, this is termed Operational Excellence, as opposed to
Product Leadership and Customer Intimacy. AMPC does not devote much attention to product innovation, but the
meal offerings are those typically cooked at home; neither does it focus on customizing services to the needs of
every customer. Instead, AMPC seeks to gain sales through their good-tasting meals, but not necessarily unique and
exquisite. As mentioned earlier, AMPC is also known for its affordable value meals that include a huge serving of rice
and a dish, sidings, and a glass of iced tea. The organization has gained a customer base that continuously
purchases its products primarily because of its pricing strategy.
Among the generic strategies, AMPC utilizes Cost Leadership, as opposed to Differentiation and Focus. As
mentioned earlier, the organization focuses on reducing costs to a minimum through cost-efficient operations and low
profit margins in order to attract students and employees with a limited budget for lunch meals and whose main
concern is maximizing the value of their money.

ORGANIZATIONAL PROFILE
This section will discuss general information about the organization, along with its different departments and the
function of each department.
The Ateneo Multi-Purpose Cooperative is made up of five permanent or mandated committees, namely the Audit and
Inventory Committee, Credit Committee, Election Committee, Education & Training Committee, and Finance
Committee. There are also five standing committees, or those with members appointed by the Board. These are, the
Canteen Operation Committee, Conciliation Committee, Human Resources Development Committee, Membership
Promotions Committee, and Finance Committee. The chart below presents the organizational structure of AMPC.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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General
Assembly
Audit &
Inventory
Working
Committee

Task Forces

Board of
Directors

Special
Committees

Credit
Committee

Chair

Election
Committee

General
Manager

Management
Staff

Vice-Chair

Secretary

Treasurer
Board of Directors. The Board has eleven members and this body has the responsibility of supervising and
controlling the activities affairs of the cooperative. According to the cooperatives by-laws, among the tasks and
responsibilities of the Board of Directors are the following:
To act on cases regarding the application for or resignation from membership of members;
To enter into any contract pursuant to the purposes and objectives of the cooperative;
To fix the amounts and types of the bonds and cause the bonding of the Treasurer, General Manager, and
any other officer or employees charged with the custody of the cooperative funds, securities, properties,
inventories, before they are allowed to assume position;
To cause the installation of an adequate and effective accounting system;
To submit to the general assembly a consolidated report of officers, directors, and committees including an
audited annual report on the financial condition and results of operations of the cooperative;
To prepare with the General Manager and committees an annual budget for capital expenditures and
operations of the cooperative for recommendations to the general assembly;
To formulate guidelines on the appointment of employees, fix their compensations subject to
recommendation of the General Manager and subject to the provision of the approved budget.
The Board is the major decision-making body of the firm, but they are tasked to coordinate with the rest of the
organizations members in order for their chosen course of action be reflective of the sentiments of all the AMPC
stakeholders.
Audit and Inventory Committee. Three members of this committee, apart from the elected Board, will be elected
during the general assembly. This committee is in charge of conducting a regular internal audit of the cooperative,
including a system of maintaining a complete record of its examination and inventory, and an audited quarterly

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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reports submitted to the Boardannual financial reports for the General Assembly. Because of their tasks and
responsibilities, the members of the Audit and Inventory Committee are allowed to look at all the books, vouchers,
and sales-keeping records of the cooperative. The committee will also assist the Board in implementing a sound
accounting system, and the Manager in taking a regular inventory of supplies, raw materials, and all other properties.
Credit Committee. This committee also has three members elected during the general assembly. Its primary
responsibility is credit management of the cooperative. They function to process and evaluate loan applications and
withdrawals of deposit (except when the loan application is filed by a member, in which case, the Board of Directors
take charge). The Credit Committee also supervises the collection of loans to members.
Election Committee. Like the aforementioned committees, the Election Committee has three members elected
during the general assembly. They are in charge of implementing rules and regulations in the conduct of election,
canvass and certify in writing the presiding officer, and proclaim the winning candidates.
Education and Training Committee. Also with three members, this committee is responsible for planning and
promoting educational activities for the cooperative. It will serve the function of information dissemination, serving as
a communication bridge between the management and the members. Some of the responsibilities of this committee
as stated in the AMPC by-laws are as follows: to promote the Cooperative Principles and Methods among the
members, to familiarize members with the policies and procedures of the cooperative, and to develop a strong loyalty
among the members.
Finance Committee. This committee is in charge of preparing the annual budgets for capital expenditures and
operations, in the formulation of policies regarding finances, in preparing economic feasibility studies, and to serve as
the financial adviser of the Board.
Conciliation Committee. This committee is one of the listed standing committees whose members are appointed by
the board. It is in charge of managing intra-cooperative disputes between members, and complementary functions
regarding this are: to issue supplemental rules and procedures concerning the conciliation process, and to ensure
speedy and inexpensive settlement of disputes.
Systems. Membership and Loans application are essential factors that contribute to the further growth of the
cooperative. Members constitute the solid foundation and the support group base of the cooperative; as for the loans,
they can not only help members in temporary financial distress, but these can also be a source of income for the
cooperative.
1. Membership. Forms are given out to interested parties, who have to pay an initial membership fee of
Php100. Those who want to become members then have to purchase 25 AMPC shares amounting to

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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Php1,250; followed by a minimum subscription of 100 shares amounting to Php5,000. The last step of the
membership process is a two-hour pre-membership seminar held on the first Tuesday of every month.
There are three types of members: regular members, members in good standing, and privileged patrons.
These have their corresponding benefits. Cash dividends and the patronage refund are benefits among the
three types of members. Those whose investments have totalled Php15,000 are entitled to receive
dividends at the end of the year, depending on the net surplus at the end of the year. As for the patronage
fund, this is an annual percentage rebate given back to members purchases at the cafeteria.
2. Loans. Regular and associate members of the cooperative are allowed to borrow a certain amount of
money, depending on their financial need. Requirements for loan applicants are: they must be
permanent/regular employees of the Ateneo de Manila University and aged 18 and above for students.
Approved reasons for borrowing are educational and provident (housing, medical, personal, natural
calamities, death, and accidents). The maximum amount that can be loaned is Php180,000, with an interest
rate of 1%, and an amortization period of 30 months to 2.5 years, depending on the terms agreed upon and
the amount borrowed.
Staff/Officers. As mentioned earlier, the Board of Directors is the major decision-making body of the cooperative.
There are also officials for the various committees, namely a Chairman and a Vice-Chairman for each. The following
are also members of the Staff: a Treasurer to keep records of cash transactions and money keeping, a Secretary in
charge of documentation, a General Manager in charge of regular business operations, and an Accountant who
prepares monthly budgets and quarterly income statements.

PERFORMANCE HIGHLIGHTS AND MAJOR ACCOMPLISHMENTS


AMPC has shown indubitable growth and development in performance. This can be measured in a variety of ways,
by comparing objectives five years ago against what has been reached today; through revenues; through
performance and growth exhibited by the different committees; and the accomplishments or resolutions stated by the
Board of Directors.
A Glance as the Past. In the Chairs yearend report for the year 2005, the accomplishments of AMPC during the
year were listed down, and the report ended with a list of improvements that have to be worked on. This is cited in
the illustration below.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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What still needs to be done? (From 2005 Yearend Report)

1. Institutionalization of reforms implemented in financial & resource management, accounting, record keeping,
and operations.
2. Preserving and sustaining gains made in making AMPC a viable cooperative.
3. Exerting more efforts to rally the community to support the cooperative venture of the AMPC.
4. Overcoming unfair competition of vendors not complying with mandated wages and benefits, as well as
paying Ateneo concession fees.
5. Convincing members with management expertise and sound business sense to take on elective positions
so AMPC can continue to be viable.

What has become of these goals? Firstly, reforms needed in financial & resource management, accounting, record
keeping, and operations were implemented through the creation and function of different committees with their own
areas of responsibility. The Audit and Inventory Committee take charge of record keeping for operations, like a
regular examination of inventory and working with the Manager in doing an inventory count of supplies and materials.
The Finance Committee, on the other hand, works with the Board and the Audit and Inventory Committee in
preparing yearly financial statements. The Finance Committee is also in charge of resource management and
preparing annual budgets contrasted to expenditures.
As for sustaining the gains made, this can be illustrated through the steady increase in sales. This is shown in the
graph below. Year after year, the revenue record of AMPC takes a significant increase, averaging an annual growth
rate of 13%. The observed growth gives the cooperative a sizeable amount of resources to finance more loans,
distribute greater dividends, and allot for the beneficiary groups. As will be discussed further in the section on ProForma Financial Statements, the Gross Revenues of the cooperative is expected to experience further increase in
the following years.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 20

GROSS REVENUE, EXPENSES & NET SURPLUS


25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-

Gross Revenue

Selling expenses

Gen. & Admin. expenses

Net surplus

In 2005, one of the areas that the Board wanted to improve on is membership, rally the community to support the
cooperative. This can be illustrated through the number of members that constantly increases every year. From a
total of 537 members in 2001, this number has increased to more than 1,000 today. Majority of the members come
from the Staff, Faculty, and Affiliated Units, like AMPC, LHS, and Provincial House. Other groups among the
members are the following: Administrators, Associate, Maintenance, Non-Ateneo Personnel, Offices or Privileged
Patrons, Professionals, and Students. These results make it apparent that the AMPC is gaining more support from
the community.
The cooperative has been able to bring in members with management expertise into the Board. Faculty of the John
Gokongwei School of Management and other Professionals, like students who had been past members, extend help
to the cooperative through suggestions they offer, some have even taken leadership positions, like Mr. Carmelo
Lopez who contributed greatly to the organizations strategic planning.

DIVIDENDS & PATRONAGE REFUND

DONATIONS

1,500,000

600,000

1,000,000

400,000

200,000

500,000

2003
Dividends

2004

2005

2006

Patronage refund

2007
Donations

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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In the 2009 General Assembly, 8% dividends on share capital was distributed to the members and 15% patronage
rebates on receipts and loan interest were granted. Loans on the other hand totalled to Php33 million as reported in
2008, with a record of no bad loans. Donations made by AMPC in the forms of meal coupons for scholars and
catering services during university celebrationse.g. Sumilao Farmerstotalled to P384,575 at the end of 2008.

PERFORMANCE HIGHLIGHTS IN INDIVIDUAL COMMITTEES.


1. Audit and Inventory Committee A new system of overseeing operations was put into place by the AMPC
Management to address the occurrences of kalakal. Inventory work was also reorganized for better record
keeping. The following are the new groups of inventory: groceries, raw materials, and utensils. A member is
assigned to take charge of inventory in his/her particular group assignment. This resulted to more efficient and
accurate inventory counts. Also, a centralized inventory and cashiering system among sub-concessionaires was
also implemented. Seven new cash registers amounting to Php84,000 were also installed.
2. Credit Committee As mentioned earlier, loans have steadily increased during the past years. The month in
which most members apply for loans is at the start of the year, at January and February. Increase in loans during
these months for years 2007 and 2008 reach 73% and 57% for January and February respectively. Incentives
are given to those who pay their debts on time. AMPC still maintains a no bad loans record; though this is
accounted for in the statement of operations as part of proper accounting practice.
3. Election Committee Objectives of the committee is to conduct an orderly election of officers and to come up
with results before the assembly. Statistics include timely procedures with regards to nomination, voting, and
announcement of results.
4. Education and Training This committee is in charge of the Pre-Membership Seminars every year. Records
show that sessions and participants per session has experienced a slight decrease from the figures of 2007.
However, a good number of 11 sessions in 2008 (from 14 in 2007) with a total of 102 participants (132 in 2007)
still represent good standing.
5. Sub-Concessionaires Committee Five new sub-concessionaires were put up and compliance to the
Environmental Awareness Program decreed by the Office of the Vice President for Loyola Schools was put into
practice. BYOB, ClayGo, and the new segregation scheme were implemented in the school cafeteria, but
support from students still needs improvement. Less than 10% of the Loyola Schools Population bring their own
baunan and practice ClayGo; this can be improved through consistent marketing of the program (for instance, by
showing the direct positive impact of participation to the environment) and by enticing students with more
incentives.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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With its good current standing and the performance improvements year by year, the Ateneo Multi-Purpose
Cooperative has contributed greatly to the welfare of its stakeholders, especially the employees of the Ateneo de
Manila University. As such, working on the problem areas in order to further increase revenues, dividends, and
benefits to members should be prioritized; and this strategic audit aims to contribute significantly to this endeavour.

STRATEGIC ISSUES AND ORGANIZATIONAL PROBLEMS EXPERIENCED


As mentioned in the first part of the paper, this audit will involve evaluating reasons for AMPCs low records of annual
net surplus. In the Chairs Yearend Report submitted on the 8th of March 2008, issues regarding the efficiency of
operations have been given adequate attention. In the report, the current competitive environment was compared to
that of the years before 2002, where AMPC was the sole concessionaire of the Loyola Schools, providing for the
needs of all student, faculty, and staff. In 2002, another concessionaire, namely Blue and Gold, set up operations at
the 2nd floor of the Gonzaga Hall. A year after, sub-concessionaires were brought in. In 2005, a renovation was I
order and the 2nd floor was expanded, resulting to more space for Blue and Gold to allot for sub-concessionaires.
JSEC and renovation of the establishments in the Katipunan area also contributed to changes in the landscape of the
Ateneo Food Services Industry.
The Ateneo Multi-Purpose Cooperative responded to stiff competition by keeping prices low, despite inflation.
Because raw material costs were rising and selling prices were retained, profit margins narrowed down to a small
amount. The cited 2008 report said, AMPC had to improve its efficiency to survive. Hence, evaluation and
improvement of the low profit margins observed for the past years should be in order.
One apparent problem is the need to keep prices at a minimum. This reflects the core strategy of AMPC, which is to
differentiate based on low prices. Principles of brand management say that pricing is one of the easiest, but most
shallow means to gain customers. The problem stems from the stated theory. AMPC should evaluate its marketing
and positioning decisions in order to find a promising Unique Selling Proposition that will make its customers
purchase their products for reasons other than price. Modifying menu offerings to more exquisite dishes will enable
AMPC to raise their prices by either a small percentage or a significant amount; either way, profit margin is expected
to increase.
To increase profit margin, AMPC can also reduce costs per product by finding alternative sources of raw materials.
Furthermore, to increase net surplus, AMPC can review its selling and administrative expenses in order to lessen or
even eliminate accounts that are unnecessary.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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An issue worth mentioning is the drastic changes implemented by the Ateneo as per order of the Vice President
regarding new schemes for waste disposal. The Environmental Awareness Program is supported by the Ateneo
Environmental Management Coalition (AEMC) and systems like Bring Your Own Baunan (BYOB) and Clean As
You Go (CLAYGO) were part of the campaign. However, a pressing concern is the lack of participation among the
student body. Although garbage decreased by almost 70% along with the disposables, only 5-8% of the Loyola
Schools Population bring their won baunan, and only 8% observe ClayGo.
These issues ought to be addressed to prevent the decline of the cooperative and its operations.

PRO-FORMA FINANCIAL STATMENTS


In forecasting the financial standing of the Ateneo Multi-Purpose Cooperative in three years, the Linear Regression
Model was used to determine sales; after which, the Sales Percentage Method was applied to identify the specific
costs. The data supplied for such forecasting methods were financial information from years 2001 to 2008.
Various assumptions hold for the pro-forma financial statements:
Sales incrementally increase as predicted by the Linear Regression Model, and
Percentage of Expenses to Sales remain the same, from the Selling and Administrative Costs to the
Donations.
Computation details to verify the reliability of this forecast are as follows:
Computation Details
Linear Regression
Beta zero

4,191,718,640.23

Beta one

2,098,445.03

Least Squares Point Estimates


SSxy

88,134,691.23

SSxx

42.00

The equation: y = Beta zero + (Beta one * x) was used to estimate sales. This resulted to an increasing forecast of
sales. (Note: Data available were sales from 2001-2008; forecast, therefore, started at 2009 and proceeded
onwards.)

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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35,000,000

30,000,000

Revenues

25,000,000

20,000,000
AMPC Revenues

15,000,000

Linear (AMPC Revenues)


10,000,000

5,000,000

0
2000

2002

2004

2006

2008

Year

2010

2012

2014

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 25

PRO-FORMA INCOME STATEMENT


FOR THE YEARS 2010-2012
2010

2011

2012

Gross profit on sales

12,520,921.78

13,525,456.04 14,529,990.29

Interest income on loans


Service fees
Membership fees

5,804,831.62
977,960.42
12,738.61

6,270,544.31
1,056,420.68
13,760.61

6,736,257.01
1,134,880.93
14,782.61

Concession fees
Rental income-wares
Income/interest from investments
Miscellaneous income

6,530,807.76
46,270.60
100,763.60
161,574.25

7,054,764.40
49,982.82
108,847.71
174,537.10

7,578,721.04
53,695.04
116,931.81
187,499.96

26,155,868.63

28,254,313.66 30,352,758.69

EXPENSES
Financing costs:
Interest expense on deposits

763,501.87

824,756.45

886,011.03

Total financing costs

763,501.87

824,756.45

886,011.03

6,582,048.31
419,759.47
1,196,873.27
440,367.21

7,110,115.90
453,436.12
1,292,896.56
475,697.19

7,638,183.50
487,112.78
1,388,919.86
511,027.17

Kitchen and canteen wares

122,126.48

131,924.50

141,722.52

Laundry
Fuel
Ice and refrigeration
Canteen Supplies

68,147.51
513,984.00
299,267.85
1,213,054.39

73,614.88
555,220.14
323,277.64
1,310,375.87

79,082.25
596,456.29
347,287.44
1,407,697.35

Concession fees
Rentals
Repairs and maintenance
Depreciation and amortization

2,996,206.42
35,096.65
170,438.75
317,442.45

3,236,587.45
37,912.40
184,112.79
342,910.37

3,476,968.47
40,728.15
197,786.83
368,378.29

Travel and transportation

90,851.95

98,140.86

105,429.77

Representation

52,845.24

57,084.93

61,324.63

REVENUES

Total revenues

Selling costs:
Salaries and wages
SSS, ECC, Philhealth, Pag-IBIG
Employees benefits
Retirement benefit expense

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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Advertising and promotion


Spoilages, breakage and losses
Miscellaneous expenses

6,774.11
526.38
535.15

7,317.58
568.61
578.09

14,526,345.58

15,691,771.90 16,857,198.21

Salaries and wages


SSS, ECC, Philhealth, Pag-IBIG
Employees benefits

1,447,844.38
98,163.01
127,769.87

1,564,002.71
106,038.48
138,020.65

1,680,161.03
113,913.94
148,271.43

Retirement benefit expenses


Board expenses
Representation
Meeting and conferences
Office supplies

91,835.29
578,645.36
3,520.42
197,201.14
103,581.87

99,203.09
625,069.19
3,802.86
213,022.28
111,892.08

106,570.89
671,493.02
4,085.30
228,843.43
120,202.30

Printing and promotional


Power, light and water
Professional fees
Taxes, fees and charges
Transportation and travel

173,153.59
1,581,107.06
104,152.14
7,648.30
13,264.98

187,045.43
1,707,956.84
112,508.11
8,261.91
14,329.21

200,937.28
1,834,806.62
120,864.07
8,875.52
15,393.44

Communication
Insurance
Collection expense
Depreciation and amortization

125,074.67
19,585.73

135,109.22
21,157.07

74,279.81

80,239.16

145,143.77
22,728.40
0.00
86,198.52

Provision for probable losses on loans


Garbage fees

337,790.98
59,222.52

364,891.43
63,973.85

391,991.88
68,725.18

Miscellaneous expense

18,047.97

19,495.93

20,943.89

5,161,889.09

5,576,019.50

5,990,149.90

247,877.91
189,022.60
240,494.30

267,764.77
204,187.59
259,788.79

287,651.64
219,352.58
279,083.28

203,688.67

220,030.29

236,371.92

Total selling costs

7,861.06
610.84
621.02

ADMINISTRATIVE COSTS

Total administrative costs

DEMOCRATIC GOVERNANCE COSTS


General Assembly expense
Social and community service expenses
Provision for Cooperative Guarantee Fund
Provision for Bughaw Fund

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


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Total democratic governance costs

881,083.47

951,771.44

Total expenses

21,332,820.02

23,044,319.29 24,755,818.56

4,823,048.62

5,209,994.38

5,596,940.13

Reserve fund

482,304.85

520,999.43

559,694.00

Education and Training fund (local)


Land and building fund

482,304.85
241,152.43

520,999.43
260,499.71

559,694.00
279,847.00

Community development and social fund


Interest on capital and patronage rebates

241,152.43
3,376,134.06

260,499.71
3,646,996.09

279,847.00
3,917,858.12

Net surplus allocated

4,823,048.62

5,209,994.38

5,596,940.13

Net surplus for the year (for allocation)

1,022,459.41

PRO-FORMA BALANCE SHEET


FOR THE YEARS 2010-2012
2010

2011

2012

Cash on Hand
Cash in Banks RCBC 1
Cash in Banks RCBC 2
Cash in Banks East West Bank
Petty Cash Fund

97,775.63
-253,870.59
4,693,730.78
91,511.29
11,856.93

105,620.01
-274,238.23
5,070,301.56
98,853.10
12,808.20

113,464.40
-294,605.88
5,446,872.35
106,194.91
13,759.46

Short-Term Investment RCBC 3


Total Cash and Cash Equivalents

59,197.41
4,700,168.45

63,946.73
5,077,255.72

68,696.04
5,454,342.99

Loans and Receivables:


Loans Receivable Current
Unearned Interest and Discounts

45,274,751.11

48,907,074.61

52,539,398.12

-9,174,221.74
-1,408,914.52
1,883,142.74

-9,910,255.41
-1,521,949.56
2,034,224.38

-10,646,289.08
-1,634,984.60
2,185,306.02

40,638.41

43,898.77

47,159.12

31,242.69
390,031.83

33,749.24
421,323.48

36,255.79
452,615.13

Assets
Current Assents
Cash and Cash Equivalents:

Allowance for Probable Losses on Loans


Accounts Receivable Trade Current
Accounts Receivable Sub-concessionaires
Accounts Receivable Employees
Advances to Officers, Employees and Members

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 28

Other Current Receivables


Total Loans and Receivables

94,941.51
36,942,850.16

102,558.53
39,906,718.09

110,175.54
42,870,586.03

Inventories:
Merchandise Inventory

1,220,824.15

1,318,768.99

1,416,713.83

Total Current Assets

43,053,826.81

46,507,968.99

49,962,111.16

3,766,390.01
492,507.00

4,068,561.68
532,020.08

4,370,733.34
571,533.16

-3,112,247.68
1,146,649.33

-3,361,938.51
1,238,643.24

-3,611,629.35
1,330,637.15

357,695.23
3,581,001.23

386,392.56
3,868,299.44

415,089.90
4,155,597.64

Total Non-Current Assets

3,938,696.45
5,085,345.79

4,254,692.00
5,493,335.24

4,570,687.54
5,901,324.70

TOTAL ASSETS

48,139,172.60

52,001,304.23

55,863,435.85

18,478,213.15

19,960,691.71

21,443,170.27

602,207.00

650,521.14

698,835.28

Accounts Payable Ateneo


Subcon Deposits Payable
SSS, ECC, Philhealth, Pag-ibig Contributions Payable

1,535,550.83
391,102.51

1,658,745.70
422,480.06

1,781,940.58
453,857.61

-100.46

-108.52

-116.58

SSS Loans Payable


Pag-Ibig Loans Payable
Withholding Tax Payable
Accrued Expenses

-12,804.78
320.26
3,797.06
-28,552.67

-13,832.09
345.96
4,101.69
-30,843.41

-14,859.40
371.65
4,406.32
-33,134.14

Interest on Capital and Patronage Refunds Payable


Other Current Liabilities
Total Current Liabilities

1,295,579.98
21,554.09
22,286,842.51

1,399,522.37
23,283.34
24,074,881.54

1,503,464.75
25,012.59
25,862,920.56

Non-Current Assets
Property, Plant, and Equipment:
Furniture, Fixtures and Equipment
Leasehold Rights and Improvements
Accumulated Depreciation
Total Property, Plant, and Equipment
Other Non-Current Assets:
Computerization Cost
Other Funds and Deposits
Total Other Non-Current Assets

LIABILITIES AND EQUITY


Liabilities
Current Liabilities:
Time Deposits
Accounts Payable Trade

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 29

Non-Current Liabilities:
Retirement Payable

2,288,031.37

2,471,596.61

2,655,161.84

Total Non-Current Liabilities

2,288,031.37

2,471,596.61

2,655,161.84

Bughaw Fund Payable

776,507.22

838,805.20

901,103.18

Cooperative Guarantee Fund Payable


AMPC Coupon Fund Payable
Total Other Non-Current Liabilities

1,503,675.74
391.10
2,281,185.16
26,856,059.05

1,624,313.33
422.48
2,464,201.13
29,010,679.27

1,744,950.91
453.86
2,647,217.10
31,165,299.50

13,262,802.41
-303,841.43
1,749,817.95

14,326,856.61
-328,218.16
1,890,203.14

15,390,910.80
-352,594.88
2,030,588.34

Total Members` Equity

14,708,778.93

15,888,841.59

17,068,904.26

Donations and Grants

323,875.21

349,859.22

375,843.23

Reserve Fund
Cooperative Education and Training Fund
Community Development Fund
Optional Fund
Total Statutory Funds

3,202,127.57
1,719,017.49
53,810.57
1,275,503.79

3,459,029.33
1,856,931.61
58,127.71
1,377,835.49

3,715,931.09
1,994,845.74
62,444.85
1,480,167.19

6,250,459.41

6,751,924.14

7,253,388.86

Total Equity

21,283,113.56

22,990,624.95

24,698,136.35

48,139,172.60

52,001,304.23

55,863,435.85

Other Non-Current Liabilities:


Members` Benefit and Other Funds Payable

Total Liabilities
Equity
Members` Equity:
Paid-Up Share Capital
Treasury Share Capital
Undivided Net Surplus

Statutory Funds:

TOTAL LIABILITIES AND EQUITY

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 30

IV. CONCLUSION
The problem basically lies in the further expansion of the Ateneo Multi-Purpose Cooperative. By expansion, areas
like efficient operations, a sizeable profit margin and net surplus, and an increasing record of revenues are taken into
consideration.
AMPCs sources of funds range from sales, remittances and rent from sub-concessionaires, capital investments of
both new and old members, catering services, and interest gains from loans. Sales have experienced a continuous
upward trend, which is explained to be proportional to the growth of the Loyola Schools Populationstudents and
employees. However, the Ateneo population can only grow so much and the cooperative should give adequate
attention to increasing the activities in their other sources of income, like catering for instance.
As mentioned earlier, one way to increase sales and respond to stiff competition is through product innovation.
AMPC should find a promising USP that they can leverage on, to gain a loyal customer base and consequently
increase sales. Furthermore, evaluating expenses that can be reduced or even eliminated will greatly increase the
net surplus of AMPC. This surplus will then be available to the beneficiary groups, the members, and for the
cooperative as capital for new ventures, possible expansion plans, and other investments.
Also, AMPCs services, especially their catering terms, should be advertised further, because it certainly provides a
convenient way to offer meals to guests and participants of the multiple events held regularly inside the campus.
Considering the limits set by the cafeteria area and the Ateneo population, AMPC can opt to intensify their noncafeteria operations, like catering.
Another possible course of action is to strengthen partnerships with the Ateneo and other cooperatives. A stronger partnership
with Ateneo can reduce rates of rental and concession fees paid, and this will immediately result to an increase in net surplus for
distribution and re-investment. Partnerships with other cooperatives will also give the organization more options in which to
expand.

A decline in the growth rate of AMPC has already taken placefrom a 13% growth rate in 2008 to a 10% growth rate
in 2009. The members are continuously increasing and interested parties are growing in size; with that, the
cooperative should further expand operations and earnings to offer their assistance to more members of the Ateneo
de Manila University, while staying faithful to its Mission, Vision and Objectives. The possible courses of action with
regards to expansion have already been briefly discussed in this section. The current standing of the firm, the
consequences of the aforementioned options for expansion, and external factors affecting operations should be
analyzed further in order to identify the best response to the currently pressing problems of the Ateneo de Manila Multi-Purpose
Cooperative.

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative


(by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 31

SOURCES
Information and data regarding the food service industry were taken from Market Research Reports online, like
Euromonitor and MarketResearch.com.
Data on competitive analysis and the Industry Structure of the Ateneo Food Service Industry were gathered by the
members of the group, through interviews and observation in all the areas mentionedAMPC, Blue and Gold,
Manangs, ISO, JSEC, Cervini Cafeteria, Ze Caf, Figaro, Loyola School of Theology Cafeteria, and establishments in
Katipunan. Developments and trends, along with external factors affecting the industry were also gathered through
interviews with students and AMPC members.
Data and information about the Companythe Ateneo de Manila Multi-Purpose Cooperativeare taken from internal
documents provided for by the organization itself. Located at the first floor of Gonzaga Hall, the AMPC office was
very accommodating to the researchers, and they supplied brochures, pamphlets, and a copy of the organizations
by-laws.

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