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[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 Firm’s 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

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INTRODUCTION Every student of the Ateneo has gone to the cafeteria for a day’s 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 committees—Audit and Inventory, Credit, Election, Education and Training, and Finance—and 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 cooperative’s operations. Sales as of the end of 2008 amounted to an impressive Php21,764,713.78, while total members have reached a number of 1,132—652 of these are in good standing. Indeed, the Ateneo Multi-Purpose Cooperative has been performing above and beyond, benefiting more and more of the Ateneo’s stakeholders, most especially the faculty and staff, and other employees. Then again, there is always room for improvement. The net profit of every month’s 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 competitors—trends and developments both inside and outside the campus have resulted to more and more establishments vying for the Ateneo market’s ―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 cooperative’s 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

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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, cafĂŠs/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


eg. Starbucks, Figaro, Padi's Point

Street Stalls/Kiosks

eg. Burger Machine, Potato Corner


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


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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 cafĂŠs 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.

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Cafeteria, the Manang’s, 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 McDonald’s, 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 Gold’s 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 Manang’s 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

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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 AMPC’s, 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.)

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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

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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.

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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 – it’s 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 Bo’s 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.

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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 Cup’s 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 McDonald’s 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.

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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 one’s 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 Athena’s Kitchen, Lil’ Orbits, Pizza Hut, Marius n Moira’s 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.

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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 1970’s 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 university’s 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 FIRM’S 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.

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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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 15

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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 16

General Assembly Audit & Inventory Working Committee

Task Forces

Board of Directors

Special Committees

Credit Committee


Election Committee

General Manager

Management Staff



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 cooperative’s 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 organization’s 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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 17

reports submitted to the Board—annual 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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 18

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 Chair’s 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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 19

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 organization’s strategic planning.









2003 Dividends




Patronage refund

2007 Donations

Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 21

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 celebrations—e.g. Sumilao Farmers—totalled 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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 22

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 AMPC’s low records of annual net surplus. In the Chair’s 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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 23

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


Beta one


Least Squares Point Estimates SSxy




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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 24 35,000,000




20,000,000 AMPC Revenues


Linear (AMPC Revenues) 10,000,000


0 2000









Strategic Audit on the Ateneo de Manila Multi-Purpose Cooperative (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 25




Gross profit on sales


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


28,254,313.66 30,352,758.69

EXPENSES Financing costs: Interest expense on deposits




Total financing costs




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




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









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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 26

Advertising and promotion Spoilages, breakage and losses Miscellaneous expenses

6,774.11 526.38 535.15

7,317.58 568.61 578.09


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



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







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




Total selling costs

7,861.06 610.84 621.02


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 (by Cobankiat, Corneby, Liamzon, Lim, Nubla, Santos, Sia) | 27

Total democratic governance costs



Total expenses


23,044,319.29 24,755,818.56




Reserve fund




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




Net surplus for the year (for allocation)





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




-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




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




Total Current Assets




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











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




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




Total Non-Current Liabilities




Bughaw Fund Payable




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




Donations and Grants




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




Total Equity







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:


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. AMPC’s 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 Population—students 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, AMPC’s 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 place—from 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 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 mentioned—AMPC, Blue and Gold, Manang’s, 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 Company—the Ateneo de Manila Multi-Purpose Cooperative—are 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.

Ateneo Multi-Purpose Cooperative  

A Corporate Strategic Audit on the Ateneo Multi-Purpose Cooperative

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