CASE ANALYSIS: ORIENTAL BANK EXECUTIVE CAR PLAN

I. TIME CONTEXT: Present Time

II. VIEWPOINT: Chief Finance Officer (CFO) of Orient

Bank
III. CENTRAL PROBLEM: The need to determine whether or not the
Executive Car Plan offered by Orient Bank
to its officers is acceptable.
IV. Statement of Objectives:

a) Must Objective: To evaluate whether the Executive Car

Plan is better or is at least equal to the
present value of transportation allowance
being enjoyed by officers of Orient Bank.

b) Want Objective: To effectively manage Orient bank's

human capital by offering attractive
compensation and benefit package.
V. Areas of Consideration See attached SWOT ANALYSIS

VI. Alternative Courses of Action (ACA)

ACA No.1 Use Present Value of amount offered in

the Executive Car Plan to evaluate the
acceptability of ECP.
ACA No.2 Evaluate the acceptability of the Executive
Car Plan using the averaging method of
increase in the Transportation Allowance
in 5 years
ACA No.3 Use SWOT analysis to evaluate the
acceptability of ECP.

VII. Recommendation ACA #1 Use Present Value Method to

determine the acceptability of Executive
Car Plan.
VIII. Detailed Plan of Action

 ACTION PLAN:

I. Key area: Human Resource Department

II. Objective: To Identify and form the Finance
Management Team
III. Persons involved: Finance Team, HRD and training and
Development
IV. Timeframe: 1 week
V. Actions to be taken:

1. Identification of finance management

team
 2. Orient finance management team of their
job
3. Develop financial management program
for the evaluation of acceptability of ECP
VI. Expected output: Identification and establishment of the
Finance Team that will prepare the
Evaluation Report on the acceptability of
ECP.

I. Key area: Computer Information System

Department
II. Objective: To update database on financial
management
III. Persons involved: MIS
IV. Timeframe: Continuing
V. Actions to be taken:

1. Encode data for evaluation of

acceptability of ECP
2. Make relevant data available when
needed
VI. Expected output: Updated database
AREAS OF CONSIDERATION:

SWOT ANALYSIS STRENGTHS WEAKNESSES

Organization and
Management
1. Orient Bank's
dedication and
commitment to value it's
human capital by offering
attractive compensation
and benefit package
2. Competitive ranking in
the banking industry

Financial Management

3. Acceptable terms and

conditions offered under
the Executive Car Plan

OPPORTUNITIES

1. Recently, SMC entered

the business of managing
and developing real estate
properties both for its own
use and for public
customers.

THREATS