Business as Usual

By Michael B. Arevalo, sole proprietor


For the last four months, my attention was focused on accomplishing a number of academic requirements, most of which are essential for my graduation. I started the semester with great enthusiasm. By the end of November, I’ve reached the sales of 9,450 and it went up to 21,630 at the end of last year. But at the beginning of this year, all my hopes crashed as there was a little demand for my products. It had me panicking, taking into consideration the quota that I have to reach to get a high grade in my Income Generating Project subject, which sure matters because it comprises 6 units of my total 24 academic load.

My optimism slowly diminished as lesser demand became very clear. I, for a fact was also busy focusing on attending seminars, doing a lot of projects, finishing my SRA, having myself interviewed by a lot of companies, taking a lot of corporate exams, applying for the civil service exam (which took me 3 days) and all other things that were important for my graduation. My attention was diverted to looking forward with what my life would be after graduation, what company I should go for, and where I would go. Somehow, my enthusiasm to reach the prescribed quota no longer lingered as part of my motivation. I found myself struggling to reach for a better future after graduation.

Lucky for me that Charlie Marvel Enterprise was located in my relative’s residence. Not known to me that all this time, the business was still operational despite me not taking part in it. My uncles and some nephews were still manufacturing and taking orders from our distribution channels. I really appreciate the fact that they were able to understand how hectic my schedule was (and is). As a result, I am so proud to announce that at exactly 5:00 pm of February 29, 2008, the company was able to reach the total sales of 43,707, though 6,420 was still collectible.

The moment I decided to dissolve the SoyWorks partnership, I felt the fear of conducting business on my own and eventually getting solo. I was left in doubt of my capabilities and whether I could venture into a business outside the comfort my friends gave me. I felt the guilt of not believing that the partnership we once had would work and that my partners I have were capable of wholeheartedly doing their part in our business venture.

Now, I have fully realized that it really does not matter if you are on your own or not. What matters is the way you are able to make use of your passion and of what is here and now to run the business. It is not about the presence of other people to watch your back, or the amount of capital investment you are willing to let go. Oftentimes, business is like life. It involves a lot of risks. The problem is some are afraid to take chances because of the fear that their decision would lead to nothing but mistakes. People, sometimes do not believe in the possibility of a good outcome and that they could do something even if they are alone. Everyday won’t be sunny, and sometime, a person would find himself lost in the darkness of despair. However, as they say, it is only at the dark of the night a person sees the stars that would guide him back on track. Once this stage is dealt with, everything else would be easy. Confidence and courage to take risk are nothing but ordinary.

For me, all decisions, be it right or wrong, should never be seen as a thing to be regretted. It makes you stronger than ever. Sometimes, fate lets you experience the feeling of losing to appreciate more the joy of winning. One must never be afraid to make mistakes, because most of the time, the greatest rewards come from doing things that scare people the most. One should always see the positive side of all things. This goes for both business and life. Having a positive mindset and taking risks are qualities that make human fully human and businessman a successful one.

I learned a lot in doing business for the past three semesters, the most crucial of which was the last one. It is because it does not involve mere business operation and gaining higher sales. It made me feel like I was caught in the middle between academic matters and business matters. Being a graduating student, I was bound to face a lot of priorities and weighing which among these priorities I would do first was one major problem. Halfway, my attention my predominantly focused with CM Enterprise but with all things coming out at school, to be honest, I think I have not been able to do as much as I did before. I don’t think people could blame me for that. But I think, still, the responsibility was all mine.

Time Management- this was one of the learning I gained from the whole IGP experience. The value of time anchors other essential values like family, love, and even education. Have you ever been bothered when you went absent in a regular school day? I am. For the record, if there’s one person in the planet who should be awarded as “the all-time most punctual student”, I guess that would be me. I have never been absent in school in my entire life. It’s true even in my four years in college. School is my second home and I consider it an important thing I should devote my time into. That is why I feel really uneasy when I had to forcefully go to the clinic because I am sick (I attend school even when I’m suffering from severe headache, cold, etc.). I feel so troubled when accidents happen and they had to excuse me from class, like when I went into an accident 11 years ago and the doctors had to stitch my forehead because I stumble so hard on the ground. Likewise, I feel so disturbed every time I had to compete outside the school for a poster-making, math quiz bee, slogan-making, science fair, Boy Scout jamboree, and many more. I feel I would lose I lot when I come back and I hate that feeling.

Losing is definitely one of the problems that bother every individual. In fact, it is one consideration of some entrepreneurs. Some are affected so badly that it changes them. Have you ever felt losing a lot? Terrible, isn’t it? I’ve been there a couple of times but I can safely say that it never got into me that bad. In the business operation, I realized that there is no point for people to really be ashamed of losing. I experienced being rejected by a number of customers using different alibis like “I don’t sell candles”, “that’s not in demand here”, “try the other store and see if they would buy”, “we still have a lot of stocks”, “my manager’s not here… come back tomorrow”, and “we don’t buy labeled candles.” Sigh. Sometimes, people can be really irritating. But businessmen must realize that these are very common in the business scenario. But a true businessman must never be affected by these customers. It is their way of saying ‘no’ and we businessmen should respect that. After all, there is whole lot more of customers out there ready for the taking.

I also realized the value of maintaining a smooth interpersonal relationship with the customers. It serves as the foundation of possible future business transaction. Since I was directly involved with the delivery of products, I have experienced talking and making arrangements with business owners. With this firsthand experience, I realized how much businessmen should value their close relationships with suppliers, distribution networks, and whole range of customers.

Being a sole proprietor manufacturing utility and decorative candles, I was able to realize more things about running a business. Being tagged as the ‘captain of my own ship’, I was in charged of all aspects of business particularly production, financial and marketing aspects. All decision I make have a significant impact in the business as I try to achieve the goal of profit realization (short-run) and continuous growth (long-run).

These learning give me a more subtle approach in taking risks in business. It gives me confidence by lessening the fear of failure and by giving me a clear and optimistic foresight of the possible pitfalls that might be a hindrance in the business operation. Knowing my responsibilities and imploring the right approach gives me a greater chance to take action towards success. And that is my burning passion, my motivation and heartfelt desire.

Those were the days

The Fate of Philippine Old Growth Forests

The trees of the Lord are watered
abundantly,
the cedars of the country which he planted.
In them the birds build their nests;
the stork has her home in the fir trees.


I have lived with troubling vistas of a realm that once made me serene: a realm of trees, among them I considered the world's biggest and tallest and almost its oldest ... valleys and slopes and mountaintops of trees, the majestic view of Mount Mayon from afar, sheltering wildlife, nurturing lesser foliage, regulating watersheds of Mt. Isarog... mature giants of trees that once gave our continent the monarch forests of the world, but lately those forests have become so shrunken that creatures formerly thriving there are nominated for the endangered list.

Not long ago, I was one of the kids playing across the street every afternoon. Like ordinary kids, we would play hide and seek, karate-base, patentero, and a whole lot more. Witness to these youthful years was the huge acacia tree covering the entire playfield with his branches, protecting us from the rays of the sun. Our house was just adjacent to where the tree was. I have seen how tough he was to have endured strong typhoons, and to remain strong and firm after almost being burned because of lightning. More than just his being a witness to my childhood years, I was a witness to his struggles. That is why I felt so sorry that just a few months ago, the neighborhood decided to cut him down (for good), which until now, I don’t understand why. He does not cause disruption from the vehicles that were crossing. Neither does he give a threat to the kids that were playing under his strong and reliable branches. I kept on wondering, is putting at risk nature really the price of securing the human welfare?
The Philippines is marked by the abundance of natural resources. The country has a rich forest resources, mineral reserves, water reservoir, and energy resources. However, the country has always faced a problem on mismanagement. The regulations on the protection of the forests existed but not really implemented strictly. People make use of this as an opportunity to illegally provide themselves with extra income by making use nature which is the habitat to wildlife. Thus, this results to the nature’s destruction and the imbalance of the ecosystem, causing a lot of negative effects not just to forest animals, but to living organisms as a whole.
The Philippines is facing a lot of problems that the government has to address. But the government sees nothing but problems regarding to politics and nothing else. Government officials believe that it is the sole problem and if properly resolved, it would create a chain of outcomes, eliminating other ‘minor’ problems. I certainly disagree. For the past decades, a bulk of government’s attention focused on politics alone and nothing positive really transpired. Now, the country is still in a state of struggling to resolve problems on politics, particularly mismanagement and less control in the fiscal aspect leading to corruption. I think the Filipinos have had enough. It’s about time to think about what Vice President Al Gore said, saying that there is something out there that is far more important. And of that, he pertains to the global environmental catastrophes.
More than 7,000 islands make up the Philippines, but the bulk of its fast-growing population lives on just 11 of them. The Philippines has the highest birth rate in Asia, and forecasters say the population could double within three decades. Population problems lead to scarcity of natural resources to provide with each families. With a number of people residing in a certain locality, there is a lesser opportunity for each one to uplift their way of life. People end up hoping to grab each opportunity only to realize that they are not capable to work for it. Their insufficient literacy and lack of access to quality education makes their status stagnant, characterized by reliance on what they have and not aspiring for something more. They become hopeless and end up in the state of poverty long enough wishing someone would lift them up and save them.
The problem does not end there. People, to sustain their basic needs, resort to illegal acts like stealing. I believe we really couldn’t blame them because it is their response to provide themselves with something essential for living. Nevertheless, some would even resort to violation of laws on the environment like working for a company that utilizes illegally outsourced raw materials coming from Philippine forests. Some may even hunt animals, even those that are endangered and protected under government ordinance, just to sell to tourists and animal collectors. In the same way, fishermen would venture into illegal acts of fishing like the use of dynamite and cyanide to provide their families food at the end of the day.
There is a chain of outcome. One problem leads to the other. And the responsibility to act lies not to the government alone. The entire Filipino community must take part to eradicate the threat posed to the environment. Every Filipino, yes including you, has the responsibility to protect his motherland, to start a quest of transition of what the country used to be. The Filipinos must strive to go back to the era when the country still has more than 71% forest cover. After all, one may have earned much with the wrong way of utilization of the Philippine natural resources, but in the long run, it would backfire causing harm to the entire Filipino race. These harms were predominantly seen even as of today.
Much of the country is mountainous and prone to earthquakes and eruptions from around 20 active volcanoes. It is often buffeted by typhoons and other storms. These storms and earthquakes are far stronger than those we had in the past. Considering Typhoon Reming which brought great destruction in Bicol, there is no doubt that today, the country is vulnerable against these natural phenomena. Landslides, such as the one which has buried an entire community in the central Philippines, are often blamed on human-made acts particularly logging. What experts did agree on was the probable impact of heavy rain in the low-lying areas. The lives of hundreds of villagers would be at risk if a major landslide would occur in these places.

Landslides, is one major effect of the destruction of our forest trees. As we all know, the most important ecological function of trees is protecting the land against erosion, the wearing away of topsoil due to wind and water. The trunks and branches of trees provide protection from the wind, and tree roots help solidify soil in times of heavy rain. In addition, trees and forests store water reserves that act as buffers for the ecosystem during periods of drought. In many areas the removal of forests has resulted in costly floods and subsequent droughts. Trees and forests also provide habitat, protection, and food for many plant and animal species. In addition, they play an important role in global climate and atmosphere regulation—the leaves of trees absorb carbon dioxide in the air and produce oxygen that is necessary for life.

More than just the ecological function of trees, it has many economic uses. Lumber from trees is the most widely used material in the building of homes and other structures. Many trees yield edible fruits and nuts such as guavas, mangoes, papayas, and whole lot more. Trees and their fruits are also the source of many commercial waxes and oils, including olive oil and coconut oil. Tree trunks are tapped for sap, which is used in making such products as maple syrup, rubber, and turpentine. The barks of certain trees are sources of cork and spices. Many trees yield important medicines, such as quinine. The bark of the yew tree is the source of the drug taxol, which in 1992 was approved for treating ovarian cancer.

Indeed, forests provide many social, economic, and environmental benefits. In addition to timber and paper products, forests provide wildlife habitat and recreational opportunities, prevent soil erosion and flooding, help provide clean air and water, and contain tremendous biodiversity. Forests are also an important defense against global climate change. Through the process of photosynthesis, forests produce life-giving oxygen and consume huge amounts of carbon dioxide, the atmospheric chemical most responsible for global warming. By decreasing the amount of carbon dioxide in the atmosphere, forests may reduce the effects of global warming.

Our forest gives us too much ease our lifestyle. Yet, a number of Filipinos abuse this benefit and end up destroying our forests. Hugh Speechly, a forestry consultant who lived in the Philippines for 12 years, said that in fact much of the logging in the country had already taken place. Is this our way of giving back to the environment what it has bestowed upon us?
The entire world is very much concerned about this environmental dilemma. In 2005 the Food and Agriculture Organization of the United Nations issued a major report, titled “Global Forest Resources Assessment 2005,” on the status of the world’s forests. Based on a five-year study, the report found that forested areas throughout the world were continuing to decline at a rate of about 7.3 million hectares (18 million acres) per year, an area equivalent in size to Panama or Sierra Leone. However, the rate of decline had slowed in comparison with the period from 1990 to 2000, when the world lost about 8.9 million hectares (22 million acres) of forested area per year. Africa and South America continued to have the largest net loss of forests, while forest loss also continued in North and Central America and the Pacific Islands. Only Europe and Asia showed a net gain in forested areas due to forest planting, landscape restoration, and expansion of natural forests. China, in particular, reported a large-scale afforestation effort. In 2005 the world’s total forest area was just less than 4 billion hectares (10 billion acres).

In the United States and Canada, and even in the Philippines, forests are threatened by extensive logging, called clear-cutting, which destroys plant and animal habitat and leaves the landscape bare and unproductive if not properly reforested. Small pockets of ancient forests from 200 to 1,200 years old still exist but are threatened by logging interests.

Until the 1990s, the U.S. Forest Service was directed by Congress to maximize the harvest of timber in order to provide jobs. In the late 1980s and early 1990s, however, environmentalists sued the government for violating the National Environmental Policy Act (NEPA), and heavy logging was deemed unsustainable. As a result, the timber harvest was reduced and foresters were directed to follow a more sustainable policy called ecosystem management. This policy required foresters to focus on conserving natural habitats rather than maximizing tree harvest. Despite this change, many ancient forests remain unprotected.
Can the Philippines do the same thing? President Gloria Arroyo actually has suspended logging and vowed punishment for law-breakers. Permits to fell trees across the nation will no longer be issued, pending a review of the environmental effect. And illegal loggers would be punished like "terrorists and kidnappers", Mrs Arroyo said, visiting badly hit areas. She also revoked existing licences in the worst-hit areas. However, there are still a number of Filipinos ‘silently violating’ this law. As Bob Ong says, there would always be a way for Filipinos to cheat the law and ironic it may seem, they would even to rejoice whenever they were able to do so. Sigh.
Legal and illegal logging is blamed for worsening the impact of the storms, which have left 1,000 dead or missing. It leaves animals to lose their natural habitat. It poses a threat to mankind who relies on the benefits they get from our forests. Isn’t these consequences enough?
I view Filipinos to find more voices calling for new approaches to the problem. I view them to get involved. It is true that the vision of sustained yield enlarges to embrace sustained ecological systems. But we work with an ever shrinking resource, with fading options. Are we already too late?

While we pursue hopeful visions, our options shrink daily, and somewhere in what remains there stands a tree of no return. It is not a specific spruce or fir but a specific number in the sequence of cutting, beyond which the remaining old growth will have shrunk below what natural processes can repair. Then creatures and plants dependent on the ancient woodland's moist multilayered canopies and rich ground covers, on the shelter and nurture bequeathed by its fallen patriarchs, will limp toward extinction amid the once great forest's crazy-quilt vestiges.

So how much is enough? This question looms over all the old forests of the U. S. and Canada. “The truth is that there isn't that much left to protect,” said Brock Evans. He leads the National Audubon Society, a member of the Pacific Northwest's Ancient Forest Alliance of 80 environmental groups. They have fostered a bill in Congress that would stop all cutting of old-growth forests on federal lands.

Now is the time to take action. It is a challenge for us to act to resolve the logging problem once and for all. Let us unite and secure a better future for our next generation. After all, we wouldn’t want our children to blame us for not acting on this, would we? You see, since logging started here few decades ago wildlife has decreased. We have fewer tamaraws, fewer agilas, and fewer mayas. If the logging continues, none will be left for our children.

“We've been too generous, too gentle,” said Alex Short, speaking hesitatingly but with deep feeling. “We've been sleeping. Now all must help.”

Protect the environment. Plant more trees. Practice proper waste disposal. Make use of the 3Rs. Live an environment-friendly life. The fate of our forests is in our hands.

Sources:
http://news.bbc.co.uk/
Microsoft ® Encarta ® 2007. © 1993-2006 Microsoft Corporation. All rights reserved.

Two Bees Flew Away Forever

Once there were three bees that planned to steal honey from a nearby colony. They were Mike, Chiwee and Mich. Early morning of the following day, Mike and Chiwee came ready to execute the plan. However, there was no sign of Mich. Quite hesitant at first, the two still pursued the plan and they were victorious. While the two were celebrating, Mich came angered by what had happened. She said that she may have overslept, but as her so-called friends, Mike and Chiwee should have told her to still come. Chiwee and Mike felt bothered. Have they done wrong?

The days gone by and Mich carried her grudge everywhere she goes. She uttered lies to destroy the reputation of her once called friends. She was so mad that it never occurred to her that Mike and Chiwee were more than just her companions- they were her saviors. If she only had recalled the times when she badly needed help and the two were there to back her up. She failed to understand the genuine importance of the two as friends who were willing to sacrifice there own integrity just to secure her own welfare. She has also forgotten the times when she was saved from extreme boredom, when she was supported when she waged war to Tin2 the Ant over a handsome grasshopper, and when she was accompanied her way through other difficulties in life she had endured.

Indolence of one can never be a resolved by reliance on other people. Mike and Chiwee were kind enough to rescue Mich from her miseries over the years, even if they received nothing in return. Mich had never done something real important for the two, even her mere presence does not count. For one, the two were lonesome and hate being intrigued, so they seldom share sentiments with other people. Also, Mich inherently wasn’t able to risk herself over the welfare of others. She was egoistic and such can be manifested even when it comes to food… (She always gets the bigger part).

Mike and Chiwee have had enough. They were jolly bees who need not a person to devote time into. Enough is enough. Mich may scream out loud things that hurt the two. It may scratch them but never break them. For a long time, they were like servants and now the way Mich treats them was even more severe. And so what? If that’s her way of fighting back, then bring it on. Mike and Chiwee will be reserved as always but will never mourn over the lost of their long-time unjust master.

They were free. Happier than ever. They were optimistic. They have fully conceived that to be in a state of genuine belongingness, they have to sacrifice something (or someone). They just did: a decision they would never regret.

To My Favorite Teacher

DEED OF GRATITUDE

According to the school policy, all graduating students are obliged to send a letter to their most favorite teacher in the university. Whereas, the said letter shall be presented to the teacher as a form of gratitude for being the person with the greatest impact in the student’s development in his four years of stay in the university.

I, Michael Arevalo, a graduating student from the Business Management Honor’s Program and the maker of this some sort of instrument, address this letter to Ms. Ma Christina de Los Santos, my teacher in all of my law subjects. This is because of the latter’s amazing way of teaching, good attitude towards work and fairness in dealing with students. Also, Ms. Leck-Leck is able to bring out the potentials of her students by challenging them to utter law-based explanations in the “First and Second Round of Calling of Attendance”.

Sec. HP4. Maam Leck was chosen since she was the only teacher with the following unforgettable traits:

(a) That she arrives on time and is systematic, particularly in arranging chairs and cleaning up the rooms prior to class discussion;
(b) That she is able to maintain class discipline and attention;
(c) That she constructs fair and challenging exams;
(d) That she promotes honesty;
(e) That she is so dedicated towards her teaching even if she is suffering from severe recurrent, throbbing, very painful headache;
(f) That she is patient and self-controlled;
(g) That she blushes when the class laughs at her jokes;
(h) That she feels sorry if she gave you a 95;
(i) That she has three white board marker which often run out of ink;
(j) That she misses her ex-boyfriend, Hector S. De Leon;
(k) That she makes you her sole student when you’re late (you have to answer all her questions for the remaining time);
(l) That she lets you attend the Legal Management Scrimmage Debate as an audience but gives you the proposition in pronto and lets you join as a stand-in;
(m) That she lets you memorize “a negotiable instrument must be (1) In writing and signed by the maker or drawer; (2) containing an unconditional promise or order to pay a sum certain in money; (3) payable on demand or at a fixed or determinable future time; (4) payable to order or bearer; and uhmmm….what’s the last one??
Sec. HP4A. The maker, Michael Arevalo and the addressee, Ms. Ma. Cristina Delos Santos has no capacity to indorse this Deed of Gratitude because the latter is unique and her recognition is duly taken for her alone;

Sec. HP4B. That the addressee will not be compelled to pay any amount to the maker because of the latter’s positive statements seen on Sec. HP4. Although, if the addressee insists, payment shall be accepted;

Sec. HP4C. The maker wishes the addressee good health and happy love life. The delay of the addressee’s prince charming is caused by a fortuitous event. The maker, however, believes that the guy is on his way.

Sec. HP4D. Under no circumstance, the addressee shall not and will not dispose of this deed of gratitude. Violation of such would mean a year of terrible migraine;

Sec. HP4E. The maker will never forget the addressee not unless the former will have an Alzheimer’s disease. Violation of such would mean no snacks for one day;

Sec. HP4F. That the addressee will keep in touch with the maker through his mobile number: 09164389365 and/or email: charlie_marvel@yahoo.com.

Sec. HP4G. The maker says THANK YOU MA’AM LECK and that comes from the bottom of his heart.

Signed this 16th day of February, 2008 at Arevalo’s Residence, Concepcion Pequeña, Naga City.

­­­­­­­­­_____________________
Michael B. Arevalo
Bmhp Batch 4, Class of 2008



WITNESSES:


Karu Ming-Ming
Maker’s Pet Dog Maker’s Pet Cat

Me and My Conscience

I can’t help but share one phrase I read from a book of quotations about what conscience is. According to the book, conscience is the voice that screams within a person every time he skips his diet. When I read that exact definition, I can’t help but laugh. I thought that it was too shallow, in fact does not even embody the true meaning of the word conscience.

Just recently, I realized that the quote was indeed right. Not that I went into a strict diet, but it just seemed to hit me when I found myself listening to other people’s problems. I realized that when a person is caught in the middle and is bound to make an important decision, there is some sort of battle between his conscience, and his personal desire especially if such is not in accordance with what is morally upright. Conscience is the voice that screams within a person to remind him that what he is doing is no longer within the realm of universally accepted norms and standards. Dieting may not be a universally valued norm, but the fact that the person was driven to achieve the goal of having a perfect figure; it already becomes a personal value which is subjected to the standards of the conscience. Conscience is not the voice that cries every time a person made something wrong but rather, it is the voice that scolds and screams at him to remind him that he has failed the call of his conscience. It repeatedly tells him that his acts are no longer in the light of what is true and just. As such, these are the reasons why I have fully accepted the definition of conscience as a voice that screams every time a person skips his diet.

I usually play devil’s advocate every time someone would share his sentiments to me, but the truth is, it’s just my defense mechanism to lighten up the situation. I am a person who would rather keep to myself the problems I experience and deal with them on my own. That is exactly the reason why I feel so unfair every time I’m on hot seat and I suddenly divert the topic to something else just to escape being intrigued and questioned.

The reason why I usually am alone is because I have a strong trust with my conscience. I need not consult my problems with other people because, usually if I do, I end up being confused and resorting to wrong alternatives. In my life, I’ve made quite a number of decisions, but I cannot remember one which I ever regretted. My parents are very supportive of me; in fact, they trust me so much that they even let me decide on my own about what courses of actions to take. I was the one who decided what school to enroll to when I finished elementary education, and it was also I who decided to choose Ateneo over other schools and other scholarship offerings.

They say I’m a loner but I know I’m not. It may seem be true that it’s okay with me if you can lock me up my room for a year and ban me from seeing my friends, but I like to believe that it is just my way of securing to myself the importance of contemplating. I really like being alone in silence because it actually clears my mind and think of a better perspective. I am not outspoken but I know how much I value the people around me.

My silence is best justified by the ideas I have formulated. I am creative and very innovative. If there’s a way I can get through a problem without sacrificing the welfare of others as a consequence, I would, even if t would me getting into a longer process. I am very idealistic and I can see the possible problems before it occurs. I am result-oriented and goal-driven, but less of a sociable person. You can even count the number of my friends using your fingers.

I enjoy my life even if I only have few people to share it with. I am very choosy with my friends. I tag along with people with the same values as mine. It is hard to win my trust but a lot easier to lose it. I truly recognize the importance of other people in someone’s life especially since they give security and genuine feeling of belongingness. However, oftentimes, people tend to get influenced by the wrong doings of their so-called friends. I don’t want to end up like them who neglected their right to reason just to for their friends to like them. For my 20 years of existence, I am proud that I have never taken any illegal drugs, smoked a stick of cigarette, nor finished a bottle of beer. I am clean and I’m proud of it.

Another thing about getting solo is the fact that once you do, you are able to get a dialogue with the conscience. It clears the mind and deletes external delusions. It helps you contemplate and realize the importance of the promotion of values more than anything.

Conscience is the sense of what is right and wrong that governs somebody's thoughts and actions, urging him or her to do right rather than wrong. It, however, does not necessitate personal separation from worldly things. Neither, it is solely about genuine involvement in the recollection. In our everyday living, we make dialogue with our conscience even if we do not do it. Our conscience verifies our action to be true and justifiable based from our self-enumerated interests. Inconsideration of the dictate of the conscience make a person less of a man to stand for what he’s values are. Not unless, environmental factors push him to decide and ignore the dictate of his conscience. He may escape the situation at large, but never his conscience. It will continue to haunt him for as long as he has not forgiven himself.

I am a conscientious person (at least I believe I am). My conscience and I are best buddies. I consider ‘him’ in every decision I make. I recognize his voice in my daily life. Thus, I am afraid of him to get mad at me and to start nagging at me like my mum usually does every morning. I wanted us to remain friends and be good partners as I make all sorts of decisions in the attainment of my goals.

I am off to a good start. My decisions were great. And it gave a nice result. That is why I promise I will still follow the voice of my conscience everyday. I trust my conscience more than any other entity here on earth. And I will continue to believe in it, uhmm… like forever. I believe that if I will continue to, my decisions will always be directed towards what is right. It will ultimately give me a label of being a moral person.

Pictures

JCCI Marketing Seminar. Richie Fernando Hall.

International Coastal Clean-Up, Balogo, Pasacao, Cam Sur

E Mall Trade Fair, December 2007

Batibot, Beside Xavier Hall, Ateneo de Naga University

O'Brien University Library.

Department Of Trade and Industry, Cam. Sur Regional Office

Cattlemen's. Seniors' Roast, 2007

Yale Appartelle, Somewhere in Manila.

Youth United. Ateneo de Manila, Feb2006

Business Week Campus Trade Fair, AdNU

Burn's Hall. Ateneo de Naga University

Pictorial sa Mater Ecclesiae

Seniors' Retreat. January 29-30, 2008. Mater Ecclesiae.
Pictorial ng mga banal. ^___^

Apprentice ni Bob Ong

by Michael Arevalo

Alas singko trenta y kwatro ng hapon nang may isang gwapong lalakeng bumaba sa pangpasaherong jeep biyaheng Sabang-Naga. Mainit ang pahanon. Walang sign ng ulan. Pero masahol pa sa binuhusan ng tubig Pacific ocean ang nasabing binatilyo.

Ako yun. Naglalakad ako papunta sa sakayan ng pedecab habang lahat ay nakatikin, nagtataka kung bakit nga ba ako basang basa. Malas kasi akong tao. Hindi naman ako nag-attend ng basaan sa fiesta ng San Juan. Hindi rin nagdive sa lake buhi ang sinasakyan kong jeep para mapuntang Naga. Higit sa lahat, hindi ko sinalo ang laway ng katabi kong mahimbing sa pagkakatulog habang bumubulusok ang arangkada ng jeep. Hangang ngayun nagtataka ako kung panu siya nakakatulog gayung kaming mga pasahero sa loob ay gumugulong at tumitlilapon, (at nakakachansing na sa seksing pasahero) dahil sobrang professional ang driver.

Nagsimula ang lahat sa isang buwang pangungubinsi (aka pangungulit) sa akin ni mama na mag-take ng civil service exam. Naririndi na ako kaya napagpasyahan kong gawin ko na para matigil na ang araw araw na pagpapaalala ng importansya ng nakapasa sa exam. Kinabukasan, maaga akong nagising. Alas kwatro ng umaga. Masyado akong mabilis maligo at kumain kaya dumating ako sa Pili mga 8am. Lang ‘ya. Dami ng tao!! Pero nagtyaga parin ako. Last day na day kasi yun ng filing ng application sa exam. Ang application ay isa sa mga salitang mahirap tagalugin.

Mainit ang sikat nang araw. Sobrang init na natuyo kaagad ang pantalon kong naihian ko nung jumingle ako sa likod ng building ng CSC. Di nagtagal, sampung tao na lang (oo, maliit na ang sampu!) turn ko na. Pero biglang nagtext ang gagong Louie (klasmeyt ko) nagreremind sa 10am naming advance class. Malapit nang mag-ten kaya napagpasyahan kong iwan ang pila at tuluyan nang manghinayang.

Manghinayang. Sobrang hinayang. Pagdating ko sa Ateneo, apat pa lang kami sa klase. Wala si Louie. At higit sa lahat, nag-announce si Sir na walang PASOK !!Whaaaa !!! Uto-uto ako. Hay.

Napagpasya akong humiram ng Noli Me Tangere at El Fili ni Rizal sa Roco Library (wow genius!). Nagpapicture na din ako ng passport size na picture. Pinagpipilitan ko kasi na pwede ang 2x2. “Ayos nga mas malaki.” Pero alam kong hindi uubra sa kasungitan ng CSC officers ang kakulitan at kagaguhan ko. Naglunch ako sa office ni mama at nag-share ng aking sinapit… ang pagsu-sun bathing ko sa harap ng CSC at ang pagkatuwa ko sa weird na service ng civil service.

Kinahapunan, hinatid ako ni paderes sa padevelopan ng picture. Malas talaga. Maling size ang naprint. Ang resulta? Naghintay ako ng 2 oras para maprint na nang tama. Hay. Sobra kasing knowledgeable ang tagapicture sa kung anu ang dapat na picture para magapply sa civil service (rejected din kasi siguro siya).

Alas tres na ng makarating ako sa Pili. Doble ang kapal ng tao kesa kinaumagahan. Malas. Nakisiksikan ako at nagpretend na matagal na akong naghihintay doon. May number na pala na pasunod sunod (aba improving ang systema; palibhasa may nagsuntukan para sa linya bago ako dumating… stunned pa ang mga tao kaya hindi napansin ang arrival ko..haha). Nagclaim ako na number 84 ako, gumawa ng sariling number tag na kahawig ng tags nila. Salamat sa pentel pen na nadekwat ko sa SSG office nung topic head ako ng Alternative Class Program sa Ateneo.

Biglang umulan. Malakas na malakas. Yung tipong sobrang lakas. As in malakas.

Basang sisiw ako. Kawawa. Basa ang paboritong libro ni hudas ni pareng Bob Ong. Pero nagchaga ako. Kahit na mag-aalas singko na number 45 pa lang ang tinatawag. Buti na lang kahit basa ay may kumausap pa sakin (naawa lang siguro). She saved me from boredom. Naks! Ingles yun.

Andyan din ang mga nakakatuwang tao. Halata ang mga taga-bundok dahil hindi nagsasalita at jologs pumorma. Halata ang mga may anak dahil may dalang anak. Lakas bumanat ng isang manang na inadvertise ang anak niyang babae na maganda raw at hinahanapan niya ng mapapangasawa.

Andyan din ang mga Atenistang nagpaplano kung panu makakacheat sa SRA. Ang mga taga Partido State college na pasigaw naguusap at nagpaplano kung pano nila magogoyo ang CSC staff. At higit sa lahat, nandyan ang mga tricycle driver na nagbe-byutipul eyes sa mga nakapila nagaalok na sumakay na… “Wala kayong mapapala dyan” ata ang ibig sabihin ng paglabas nila ng dila.

Sa wakas, unti-unti nang umaalis ang mga tao. Paubos na kasi ang mga jeep pa-Goa at Legaspi kaya wala na silang masasakyan. Aba, swerte. Dahil dun, nakapasok ang basing sisiw na ako bago mag-aalas singko ng hapon only to realize na may mga mali pa rin sa requirements na dala ko. Bad trip. Hindi daw kasi pwede ang birth certificate dapat daw ID. At kapag Cum Laude daw din a kailangan magexam kahit na may gusto ka lang patunayan at gusto mo lang pagbigyan ang nanay mo.

At diyan natapos ang araw ko. Walang kwenta. Nanood na lang sana ko sa bahay ng One Tree Hill o kya nagworship kay Bob Ong sa book niyang kahihiram ko lang. Natulog na lang sana ko. Nagrelax at nagbasa ng Rich Dad Poor Dad ni Donna. Pero wala eh. Umuwi ako na pinagtatawanan dahil basa ako. Ano kaya ang nakakatawa dun?

Badtrip talaga ako. Pero ayus lang. Kahit papano, nag-enjoy naman ako. At madami akong natutunan at narealize. Ang ilan kasi dito ay akala ko di na kailangan pang pag-isipan, pero kelangan pa pala. Ilan sa mga ito ay ang sumusunod:

• Hindi mainam na batayan ng iyong birth date and original copy ng iyong birth certificate na certified pa ng National Statistics Office.
• Maari mong lagyan ng “N/A” ang mga blanko mong sagot sa exam dahil baka sakaling tumama. Ito ang payo sa akin ng CSC staff ng makita nyang blangko ang employment record ko.
• Kelangan ang photocopy ng iyong ID ay back-to-back kahit na blanko na (walang nakasulat) ang likod ng ID mo.
• Ang building ng Civil Service Commission ay sobrang laki ayon sa mga dwende. Bagamat ito ay may tatlong palapag, isang maliit na lamesa lng ang kasya kada floor.
• Isang gumamela plant ang tumutukod sa building ng CSC upang huwag itong matumba.
• Ang iyong height ay pwedeng umabot ng 2 square meters.
• Ang henyong tulad ko ay hindi kwalepikadong mag-exam kasi baka gayahin ang sagot ko ng mga katabi.
• Huwag kang mabibigla kung may nanay na mag-alok sayo na pakasalan ang mo ang anak niya.
• Huwag kang mao-offend kung kinikwestyon kung ikaw nga ang nasa larawan ng iyong passport size na pityur. Ito ang rason kung bakit ang tagal umusad ng pila. Mahaba ang intirugasyon sa bawat aplikante… halos isang oras mong kailangang kumbisihin na ikaw nga talaga ikaw.
• Maari mong inumin ang tubig-ulan kapag uhaw ka na para walang sumingit sa pila mo. Kapag kasi umalis ka, wala ka nang babalikan. Aabutin ka kasi ng tatlong taon bago mo marating ang canteen. Ngumanga ka lang sabay lagok. Hmmm.
• Kung babae ka, at sobra kang uminom ng tubig, wag ka nang magtangkang mag-apply sa civil service exam. Kasi, kapag najijingle ka na at hindi mo na kayang tiisin, ang CR ay sampung kilometro ang layo. Iihi ka lng, aabutin ka na ng isang araw. Kung mabilis kang maglakad, baka maabutan mo pa ang pagsasara ng CSC. Pwede kang tumulong mag-lock.
• Kapag may kachismisan ang tindera sa canteen, bawal bumili. Sasabihan ka lang na “closed” na ang canteen kahit alas tres pa lang ng hapon.
• Huwag kalimutan ang negative ng litrato mo para mapatunayan na litrato nga ang dala mo. Hindi pwede ang retokadong picture at walang pangalan. Bawal idikit ang picture sa form gamit ang bagong lutong butil ng kanin.
• Ang space para sa “right thumb mark here” ay hindi dinodrowingan.

***nakakahawa si Bob Ong

Friendship

January 26, 2007, Fr. Wilmer Tria had a talk regarding Bikol's perspective when it comes to friendship. Held Arrupe Convention, the talk tackled the way Bikolanos view the word "Friendship" and how they actually value it.

The talk started with word origins, particularly Bikolano words that are somehow related to what a friend would mean including "amigo" (everything that is about friendship), and "barkada" (group of friends, gang, clique). Bikolanos are actually friendly people and the way they treasure a friend is really extraordinary. There is a very close relationship between individuals who consider themselves friends. I believe that is inherent in the Filipino culture as they really establish good communications with their friends. Their culture shows how hospitable and loving people they are. Being remarkably known as the Texting Capital of the World, Philippines indeed has its value when it comes to good relationships with their friends. Most Filipinos couldn't even let a day pass without sending an SMS message to a friend- probably a forwarded message to reflect about life and love or just to say hi. Millions of telecom subscribers actually showcase not their value of security through communication, but beyond that, it is leaned towards our inherent personality of being friendly.

Unlike Tagalog which has its very translation for the word friend (kaibigan), most Bikolanos barely even know the existence of their own native term that goes hand and hand with the word friend. Such word is called "katuod", from the root word tuod, which, according to the dictionary published by Malcolm Mintz, is synonymous with being accustomed to, acquainted with, experienced, familiar with handy, proficient in, and used to.

Friendship is a product of long acquaintance. It is never earned overnight or in a one time meeting of two people. It takes a long process and in such process, they shall encounter problems and obstacles that would test the strength of their grip over each other. The main rule is to trust and never let go. Their values may clash at first, but in through passage of time, they will soon recognize their own values and understand more each other. One needs to have patience and learn to forgive. For, a genuine friendship is composed of people who are able to adjust with the difference of each other's value. It is a group composed of people ready to learn from each other and be sensitive enough about each other's feelings.

It has been said a dozen times that no man is an island. Companionship is an inherent human need. One desires to have a companion because having such provides security and assurance that he can have someone to lean on when he is down and he feels like the entire universe is against him.

Betrayal in a friendship also happens. It is a disvalue for friendship or an act that can destroy the foundation of a real friendship. In the people's life here on earth, they encounter dilemmas, and quarrels between some friends. People needs to realize how much they had and are willing to sacrifice for them so they can easily forgive them.

Friendship, according to Fr. Tria is like a relationship between the pitcher and the catcher in a baseball game. Both of them need to have good communication for it is the bloodline and the best tactic to win. Friendship, thus, is the value that must be present in a team to attain teamwork.

Management Control and Information Systems

Introduction

An effective management control considers all aspects of the managerial processes, applications, and strategies by analyzing all possible areas that can further be improved. It is essential that the firm is able to effectively make use of its resources to reach the goals to continuous improvement and profit maximization. Analysis of the company performance must show a reliable data that depicts the company’s utilization of assets, the input and output exchanges, labor force participation, and other internal and external activities. Through this, all aspects are seen independently and as a whole to detect areas that needs ample amount of control.

Responsibility Centers: Revenue and Expense Centers

Responsibility centers, being the first topic discussed is one essential consideration in the management control process. It is an organization unit headed by a manager that measures performance through use of criteria of efficiency and effectiveness, Revenue centers and expense centers are separated for analysis to fully understand the process being implemented in each centers. Thus, for revenue centers, revenues are analyzed distinctly from incurred expenses while for expense centers, all expenses are also distinctly analyzed. There are two broad types of expense centers- engineered and discretionary. In the engineered expense centers, it is possible to estimate the “right” amount of costs that should be incurred to produce a given level of output. In the discretionary expense centers, on the other hand, budgets describe the amounts spent but are not possible to determine with exactitude the optimum levels of expenses. The use of responsibility centers therefore is significant to effective management control because it gives greater focus on the revenue and costs in each departments. An effective control must incorporate effectively the information in the different responsibility centers in the overall analysis of the company growth. One application of the responsibility center is process done by the AIM Global Corporation. The multi-awarded company for marketing excellence was just operating for more than a year but its sales amounted to 189 million because of amazing strategies they have conducted. The company recognized the necessity to have individual analysis of the different departments of their huge firm. With such process, the company is able to view both the company’s performance as a whole and the internal system of operation through the different areas it has. Another application/significance of making use of responsibility centers would be with regards to creating budgets. Each department with their specific analysis of their past performance- considering historical data such as the amount of input and output, the total incurred cost, and justifications for certain questionable expenditures, is able to formulate better analysis of the department’s activities, thus, formulation of company budgets is easily facilitated. This is done by almost all companies because there would not be any other basis of the budget preparation than the historical data. G110 Multi-Purpose Cooperative makes use of the internal analysis of the revenue and expense centers to forecast possible disbursements and inputs in the succeeding year.

Profit Centers and Transfer Pricing

Profit centers provide top management with ready-made information in profitability and performance in the internal individual components. Profit centers simply put, measures the financial performance in terms of profits (the difference between revenues and expenses). Profit center’s analysis actually improves the quality and speed operating decisions because the decision does not have to be referred to corporate headquarters. Also, with the use of this system of analysis, profit consciousness is reached and ultimately leads managers to consistently aim to sustain the increase in profits. On the other hand, transfer pricing’s fundamental principle is that the transfer price that would be charged in the product were sold to outside customers or purchased to outside vendors. The question of the price of product produced inside when transferred between profit centers is a transfer price decision. Ideally, the transfer price should approximate the normal outside market price, with adjustments for costs not incurred in intracompany transfers. Even when sourcing decisions are contained, the market price is the best transfer price. If competitive prices are not available, transfer prices may be set on the basis of cost plus a profit, even though such transfer prices may be complex to calculate and the results less satisfactory than market-based price. Cost-based transfer prices can be made at standard cost plus profit margin, or by the use of the two-step pricing system.
A method of negotiating transfer prices should be in place and there should be an arbitration mechanism foe setting transfer price disputes, but these arrangements should not be so complicated that management devotes an undue amount of time to transfer pricing. There are probably few examples in complex organizations of completely satisfactory transfer pricing systems. As with many management control design choices, it is necessary to choose the best of several less-than perfect courses of action.
The profit center is usually adopted by most firms in the analysis of the internal control. One company that makes use of such process is the Smart Telecoms Corporation. The very advantage of the analysis of the profit center is the improved speed in decision making. With profit centers, the company is viewed as a whole and seen predominantly on a large scale. The swift speed in decision making results to effective and timely implementation of new strategies: advertisements and promotions like Alltxt Plus, Smart Unlimited Texting, Wap Services, and many more others. These strategies make the company well-known and gain competitive advantage. The analysis of the profit centers therefore, facilitates the fast assessment of company’s performance in terms of its financial aspect, particularly with the profit. Upon seeing the profit (both actual and projected), the top executives can be able to brainstorm alternative courses of actions that would sustain the constant increase in the profit or improve the company strategies to meet the required sales and/or cut down costs. The same process is done by the top competitor of Smart, Globe Telecoms but the only difference is with regards to the target market. Smart focuses on the prepaid subscribers while Globe focuses on providing a number of advantageous services to its Plan Subscribers. Again, the reason is because they make use of the profit centers to assess company performance and upon knowing some areas for improvement, they can be able to formulate new strategies. Transfer pricing, on the other hand, must not be so complex to be given a large amount of time. It is essential to be updated with the prevailing market price as it becomes the basis for the analysis and formulation of the transfer price. The important thing is to be aware of the areas of imperfection and to be sure that administrative procedures are employed to avoid suboptimism decisions. Usually, transfer pricing is done by manufacturing firms since the additional cost is carried on to new assembly departments to ultimately determine the total cost incurred in the entire manufacturing process. Charlie Marvel Enterprise, for instance, decides on the unit price by determining first the unit cost- the accumulated transfer price in the whole process of producing the products divided by the number of units produced. The industry captured by CM Enterprise, candle industry, somehow also influence determining the price. The prevailing market price is considered to arrive at a reasonable pricing scheme. The same process is conducted by student-owned firms like PhotoMoto, Chawerry Enterprise and Basiad Pili Oil Products.

Measuring and Controlling Assets Employed

Assets are essential factor in the analysis of the liquidity and overall performance of any firm. The number of assets is directly proportional to the capacity of the company to conduct its operation. Firms continually invest on acquisition of assets (current and fixed) to entice investors to put their share in the company. Assets are considered in the analysis of the company’s ability to finance their debts. (Liquidity Ratio)
Investment centers have all of the measurement problems involved in defining expenses and revenues. Investment centers raise additional problems regarding how to measure the assets employed, specifically which assets to include, how to value fixed assets and current assets, which depreciation method to use for fixed assets, which corporate assets to allocate, and which liabilities to subtract.
An important goal of business organization is to optimize return on shareholder equity (i.e. the net present value of future cash flows.) It is not practical to use each measure to evaluate the performance of business unit managers on monthly or quarterly basis. Accounting the rate of return is the best surrogate measure of business unit manager’s performance. Economic value added (EVA) is conceptually superior to return on investment (ROI) in evaluating business unit managers.
When setting profit objectives, in addition to the usual income statement items, there should be an explicit interest charge against the projected balance of controllable working capital items, principally receivables and inventories. There is considerable debate about the right approach to management control over fixed assets. Reporting on the economic performance of an investment center is quite different from reporting on the performance of the manager in charge of that center.
The application of analyzing a business through assets employed is with regards to the cash-on-hand of the company (compared to other accounts). There are companies that are having huge amount of cash as part of their financial statements. This may seem be good but there is an opportunity lost with the cash that they have. It is essential that the company must aspire for continuous improvement by utilizing their cash to improve the company’s performance. A company with large sum of cash usually has lesser marketing campaigns, lesser product innovation strategies, and does not acquire additional equipments (assets) that should have become the company’s core competency. Competition is inevitable so the company must aggressively be able to make use of the cash that it has to improve the process of production, to lessen the unit cost and other expenses and of course to improve the lead time and manufacturing time. Too much cash therefore may seem be seen negatively, not unless the company has plans of using such cash for any future business ventures. The amount of cash, as one of the most important assets can be analyzed thoroughly through the measurement and controlling the assets employed.
Another application of the assets employed was the investments done by SM Corporation. The company invests on real estates, huge groceries and department stores, malls (in fact one is being constructed in downtown Naga), and a whole lot more. The company has grown big and now not being associated with merely as “Shoe Mart”, but a well established business in the Philippines and some parts of the globe. Measuring and controlling the assets employed is essential to effectively assess the returns of the investments they have ventured into. It helps in the analysis of the company’s performance based on the growth strategies it has done such as construction of new facilities like new branches of malls (long-term assets) and acquisition of new technologies, gadgets, and machineries (current assets). It is a necessary condition to be concerned on where the cash is allocated and disbursed to ensure that each strategy is on the right track towards meeting company goals.

Strategic Planning

A strategic plan shows the implications, over the next several years, of implementing the company’s strategies. It is a broad topic, in fact could not be discuss in a single semester. Strategic planning is the process of formulating corporate, functional and divisional strategies that may be oriented to marketing, production, sales, human resource, product development, research and development and other areas.
In period since current strategic plan was prepared, the organization has made capital investment decisions. These decisions usually entails large sum of money and are long-term based, The process of approving proposed capital investments does not follow a set of timetable; senior managers make the decisions as soon the need for them is identified. Planners incorporate in the strategic plan the implications of these decisions, as well as assumptions and guidelines about external forces such as inflation, internal policies, and product pricing.
Using on this information, the business units support units propose new strategic plans. If the resulting corporate plan does not indicate the profitability will be adequate, there is a planning gap, which is dealt with by second iteration of the strategic plan, sometimes entailing painful curtailments to business unit plans.
Several analytical techniques, such as value chain analysis and activity-based costing, can aid in the strategic planning process.
A strategic plan, once formulated and effectively communicated from the top management to the down line employees, becomes the corporate objective. All members of the company would work towards the attainment of such goal. A strategic plan, which is leaned towards attaining a 5% increase in the annual sales, for instance, by making use of new technologically advanced process must be followed by all employees in the company- the workers in the manufacturing area utilizing the new technology, the managers doing an effective control with the way it is being implored, and even the top management in justifying the cost incurred associated with the research and development.
Strategic plan is what leads businesses towards continuous improvement and strengthening the barriers for new businessmen who would want to engage in the same industry. Thus, it develops distinctive competencies (competitive edge) that are often associated with positive brand image (intangible asset), hard-to-imitate technology and many more. Strategic plan must be done to achieve company growth not just in terms of higher income but also towards improving product quality and features, and also improving the services the company offers to its consumers. That is the purpose of strategic plans.
Strategic plans need effective control since all plans must be implemented effectively in line with the company’s objectives. Fern-C’s strategy of recruiting new members to patronize the product by ensuring health benefits and possibility of having discounts is effectively done by the company. Control comes in when all networks of each member are analyzed to ensure that the all members are provided with all promised benefits. The company must ensure that the members are happy with the benefits that must be rightfully given to them. If the company fails to give due emphasis on the concerns of the members, the company will surely at the verge of its downfall.
The strategic plan of Monde Nissin Corporation is to have Step-Ip programs to some universities that will comprise the team of well-chosen graduating students that has equal chance of working eventually for the firm. Consequently, management control comes in with regards to establishing contacts with schools and universities, with possible applicants, with venues for assessment of each student’s qualifications and many others. Control must always be considered to ensure that the goals set of the program are effectively met.

Budget Preparation

A budget is in a sense a one-year slice of the strategic plan. However, it is prepared in more detail than the strategic plan, and its preparation involves managers at all levels in the organization. An operating budget shows the details of revenues and expenses for the budget year for each responsibility center and for organization as a whole. It is so structured that amounts are identified with specific responsibility centers. The process starts with the dissemination of guidelines approved by senior management. Using these guidelines, each responsibility center manager prepares a proposed budget, which is reviewed with his or her superior, and an agreed position is negotiated. When these individual pieces reach the top of the business unit or of the whole organization, analysts review them for consistency and adherence to the overall corporate goals. The whole process is primarily behavioral. Responsibility center managers must participate in the process, but they do so within constraints decided on by senior management. Participative budgeting, in which managers feel they have influence on the process, has benefits generally for the organization.
Budgets lead to effective control because it is formulated based on historical data and justifiable changes with regards to strategic plan. Firms would simply follow the trend with the expenses they incurred in the previous years and use such data in the formulation of next year’s projected costs. Budgets are somehow guidelines that limit excessive expenditures, specifically with each department. If a department allocates only one million pesos in its annual expenses, it should not exceed the budget allocated for it. Budgets are prepared prior to the start (or at the start) of a new year of operation to aid the departments in forecasting the possible expenditures they might incur for the year.
For instance, if the company reaches the total projected monthly expenses on the second week of the month, it becomes a call that the department must limit its expenditure since it might go beyond the allotted expenses for each month. Thus, it serves as a signal to analyze the reason why the department is having such expenses when in fact it should not be. The head of the department must investigate the reasons why his department spends to much than what is expected. He must. Ideally, roam around the office and detect possible reasons for such excessive expenditures- from the number of papers and pencils used each day to the utilization electric supply (computers and air conditioners). The data that he will gather must be reported to top management especially if they would question the excessive expenses of the department. Furthermore, the top management would deliberate and make of concrete plans to resolve the problem in the said department.
Even in the government agencies, formulation of budgets is very vital. For instance, if a certain government official would like to pursue a pro-poor program, he must first submit all necessary papers for the City/Municipal Treasurer to approve the disbursement for the funding of the program. Effective control comes in the proper allocation of funds by the government agencies particularly the treasurer. In the same way, control comes in with the disbursements made on each process for the implementation of the program.
That is how the budget becomes an effective measurement for control. It is not a budget per se written on papers, but rather a budget that serves as a guideline in the controlling process of expenditure.

Analyzing Financial Performance Reports

Business unit managers report their financial performance to senior management regularly, usually monthly. The formal report consists of a comparison of actual revenues and costs and also the budgeted amounts. The differences, or variances, between these two amounts can be analyzed at several levels of detail. This analysis identifies the causes of the variance from budget profit and the amount attributed to each cause.
Although it may seem be true that some companies focus on the performance by comparing the actual with the budget, competent operating manages nevertheless must adopt a continuous improvement or kaizen mentality; a company therefore should not assume the optimal performance as “the budget”.
Variances are analyzed to be able to see the company’s efficiency in allocating its resources to ultimately meet its objectives. One application of this way of control is with regards to company’s with more than one product categories. Each category or product line is analyzed in the context of its cost of production, the variable and fixed cost plus other expenses, the unit cost, the level of supply and raw materials, the labor force, the selling price and the prevailing market price of the product in the same industry. The company analyzes by putting emphasis in each product categories and the factors that are vital in its selling and production. Each product are then compared with the data of those unrelated product lines to effectively analyze the performance of each. A company could not say that it is having an income of 50M when in fact one of its product lines is at net loss and just being compensated by the income of those other products of the company. Therefore, the company could have reached higher income if only it has better control over the product that is of net loss. That is where management control comes in.
Another example would be with a company analyzing its profitability based on the comparison with previous year’s performance and the present year’s. Variance comes in with the comparison with the projected and the actual data. By comparing the two, the company is able to make conclusion with the attainment of the corporate goals based on the company’s financial aspects. If the variance leads to a negative, there must be an internal problem that needs to be addressed by the company. Management control then becomes the core of the strategies that they will implement to resolve the problems associated with the negative variance. Almost all companies do this, which is why specification of a company isn’t necessary to prove the advantages of analyzing financial and performance reports.

Conclusion


Management control is indeed of great importance. It is essential that a company must focus on its control systems since it is the key towards attaining the goals set by the company. Through management control, the company is able maximize its resources and detect problems that would hinder company growth. That is the true essence of the management control process.

Europe’s Version of Rizal

The renowned movie dealt on the transition made by one notorious criminal towards becoming a man of great honor. In Jean Valjean’s quest of forgetting his miserable past as a convict, he was able to win the trust of people and became the mayor of a certain town while simultaneously running a factory, but again lost against the prejudices of the court of law. The issue raised by the movie is the value of impartiality as seen in the perspectives of different classes of people. Should they, or should they not give chance to a culprit who was able to redeem himself from the core of his severe past and live anew serving other people? Was it just to rely on the prevailing written laws to direct courses of action to enact punishments to violations committed by common people?

The film was set in Europe in the 1800’s, when people were suffering the extreme oppression due to the strong imposition of laws. The governing laws were implemented strictly, guided by authority’s rationality and not by emotions. This has been showcased by the film’s antagonist, Javert, an inspector. Javert was the one who took all efforts of searching facts to prove that Valjean was indeed the sought-after criminal. For years, he took action in searching the convict, and willfully embraced the written laws that would apply to Valjean’s case.

Jose Rizal’s fate and personality were not much different as with Jean Valjean’s. Our national hero, just like the main character in the film, was a devoted patriot and was very eager to serve his fellow countrymen to prove such. He promoted justice and lived by his belief of what humanity should consider a more acceptable perspective of viewing life and creating a standard that would direct the way of people’s judgment.

The film was set on the time when people felt powerless against the strong military forces of the nation state. In the latter part of the film, for instance, Cosette, the daughter of the whore once loved by Valjean, fell in love with a man leading a quest and rallying against the rule of law. Such man represents the people of those times that were serious about waging gruesome battles to restore their freedom as a Republic, even to the point of sacrificing their lives.

In such aspect, the history of the Philippines was of no difference. During the time of the Spaniards, Filipinos endured the effects of the colonizer’s brutalities. Filipinos seemed deprived of their rights, thus, injustice raged.

This was one serious matter that Rizal observed, pushing him to take the responsibility of putting an end to such scenario. Rizal, just like Valjean, was a man who fought for what he believed in, a great attribute common to all heroes. He pioneered a lot of things leading to immediate transitions. He even sacrificed his own life to actualize the fulfillment of his mission of changing the system and of persuading the people to revolt and never be afraid. He said that there was hope for the country and when all together, they could create a big effect towards something positive.

Indeed, Rizal and Valjean were great people, not just because of what they did, but because of their individuality and amazing exercise of their rationality to counter the loopholes of the existing law- the injustice. What they did in line with their personal way of viewing things has touched the lives of the vast array of people around them, thus, has gained them respect even by their foes- the Spaniards for Rizal and Javert for Valjean. Their remarkable bravery which came along with accurate assessment of situations was among their best weapons that they have used not to fight back but to promote their desire to secure the welfare of the majority, especially of those in their native land, not just of themselves.

The message of the film for the youth is for them to never lose grip of their faith. They should never lose hope and always be optimistic. Do what they want with no hesitations, for it is the only way to actualize their individuality. They must learn to take risk and during certain circumstances never be afraid to face the consequences that may come along with what they do. Do things within the core of their responsibility and consider themselves as heroes in their own simple way of touching lives.

Why Are WE Poor?

About 4.3 million Filipinos are now living below poverty line. Poverty incidence in the country, which refers to the proportion of families with per capita income below the poverty threshold, was placed at 28.1 percent in 1997 and 28.4 percent in 2000 based on the new provincial poverty methodology recently approved by the NSCB Executive Board. Poverty estimates released by the NSCB also show that in 2000, 4.3 million families or 26.5 million Filipinos, more than one-third (34.0 percent) of the country’s population, were living below the poverty line. These figures indicate an increase over the 1997 levels of 4.0 million families or 24.0 million Filipinos striving to make ends meet. The annual per capita poverty threshold or the amount required to satisfy food and non-food basic needs at the national level, reached
P11,605 in 2000, 17.9 percent higher than the 1997 threshold of P9,843. Thus, a family of five members should have a monthly income of at least P4,835 to meet their food and non-food basic needs. Among the 77 provinces of the country and the four districts of
Metro Manila, Sulu consistently posted the highest poverty incidence in 1997 and 2000 with 67.1 and 63.2 percent, respectively. Also included among the poorest provinces are Masbate, Tawi-Tawi, Ifugao and Romblon.
Four provinces of ARMM are among the 10 poorest provinces in the country. What could be the possible causes of these? What are the reasons why we are poor?
There are various aspects that should be considered to analyze the answer to such questions. The Philippines may be considered poor because of the present situation and problems that it is facing nowadays.
Included in the problem are the following:

1. MISMANAGEMENT
Philippines is rich with natural resources. However, most of these resources are not well-managed. Some people engage in activities that harm the environment.
The cutting down of trees has resulted in the rapid denudation of forests. The use of dynamite and sodium cyanide in fishing has killed large amounts of fishes and other marine life. Kaingin and improper disposal of wastes has also added in the poor quality of soil and water sources.
Laguna de bay, for instance, once the largest fresh water lake in South Asia has become the dumping site of domestic and industrial wastes from surrounding areas. The Philippines, which has a total land area of
30,000,000 hectares, is only composed of 15,854,922 hectares of forest land, mostly not managed properly and still being degraded by human activities. When such things continue to happen, when we cannot make use of our available resources, Philippines will continue to be poor- even poorer in the succeeding years. The main lesson is to take care of the environment and use them for our own good.
Mismanagement not only comprises our resources but also our government. For years, there has been several changes in some policies and constitutions, which are costly. This is because our government can easily be influenced by people. It is good that our government concerns in the protection of the majority, however only a few of such laws are being implemented.
Likewise, mismanagement also concerns with the way money flows in the country. Tax collected by the government is used for infrastructures and bridges.
But some of these projects are not useful to people. Such things are called “White Elephant Projects”, or those that the government spends for least useful buildings. When such things happen, there will be higher expenditures over income and thus, the government can mo longer accommodate to spend for the other needs of the people. This leads to two possible implications: (1) they will collect higher tax, and
(2) they will borrow to the World Bank and add to the growing deficits. No matter what you chose in the options, it would still make us poor.

2. CORRUPT GOVERNMENT OFFICIALS
When someone becomes an official of the country, they are committed in helping and guiding everyone. However, they are higher probability for them to be involved in graft and corruption. Almost 80% of our government officials all over the country are all corrupt. Not to mention Major Gen. Carlos Garcia and his unexplained wealth. And even our 13th president, Joseph Estrada is involved in such case. This would probably explain why no official lives in his old house and rides in his old car after winning the election. Thus, the money that is meant to be spent for the people flows only in their hands. They continue to be rich as the poor continue to be poor. Truly being an official is synonymous with being rich.

3. LOW LABOR FORCE PARTICIPATION RATE
Job Opportunity has been hard to find nowadays. Our labor force participation rate as of July 2004 is only
67.2%. Our unemployment rate is 11.7%. Our underemployment rate is 17.6%, though only 10.6% is visible. This is alarming because when people cannot find jobs they also cannot sustain the needs of their families. And in the end, they are on their way to poverty.

4. OVERPOPULATION
As of year 2000, our population reached 76,504,077, from 7,635,426 in 1903. And it continues to grow with an annual rate of 2.36%. Filipino families now normally have more than two children and worse, those poor ones have more kids than the rich. Having a big family requires a big responsibility.
Parents must find sustainable job to raise their children and provide for their needs- food shelter and education. According to National Statistics Office, a family of five members must have a family income of at least php4, 835 per month to meet their food and non-food basic needs, an amount that is hardly attained by those families living in squatter’s area.
This is in a severe case since 4.3 million families are now living below the poverty line. Truly, overpopulation is one of the biggest problems being faced by the country these days.

5. POOR TOURISM AND LACK OF BUSINESS INVESTORS
Advertisements in magazines and televisions have been the major strategies of our Department of Tourism.
However, it doesn’t work that perfectly. In a famous magazine in England, Philippines has been excluded in the countries being promoted in south Asia. This may be the reason why we seldom have tourists in the country. Tourist6s actually adds for the good of our economy, but we have very minimal.
Lack or less business investors also is a reason why we are poor. Total approved foreign direct investments (FDIs) in the first quarter of 2002 amounted to P5.1B, or 66 percent lower than the first quarter 2001 level of P14.7B.Based on the 1994 Philippine Standard Industrial Classification (PSIC), approved FDIs in the Information and Communication Technology (ICT) sector in the first quarter of 2002 was placed at P0.5B, down by 95 percent compared to the same period in 2001.
This represents about 11 percent of the total approved FDIs in the first quarter of 2002 .Total approved investments from both Filipino and foreign nationals in the first quarter of 2002 amounted to P9.0B, or 79 percent lower than the 2001 level of P43.2B.
Business entities is where the government collects the money it spends for the people. Lesser business entities mean lesser government income. Also, lesser businesses mean lesser chance for available quality resources, which leads to poverty.

6. HIGHER PRICES IN THE GLOBAL MARKET
The increase in fuel, diesel and gasoline prices has affected everyone in the country. In the 2nd quarter of 2004, Caltex Phils., Petron Corp. and Pilipinas
Shell increased the prices of their liquefied petroleum gas (LPG) by 30 centavos per kilogram due to the continuous rise in international crude oil prices.
This has caused transportation problems for commuters all over the country. This also caused other companies to align their prices with the rapid changes. The one greatly affected with these changes is the Filipino household. When a price of a necessity gets higher, the people need to pay for them and they will have lesser money to spend for other things. They become poor. Same thing happens in an indicator of peso-dollar exchange.

7. IMPORT OVER EXPORT
The rate of export of Filipino products has been in great downfall nowadays. We became very dependent on other countries, importing products, before we can export our own. Seldom will you see handicrafts being exported to other countries. As far as I know, it is only Bagiuo and Cebu that actively exports their native products. The inability to produce goods for export may have been the reason why among the 81 provinces, Masbate has the biggest poverty gap at 22.6 percent, followed by Saranggani at 19.4 percent and Maguindanao at 19.1 percent. The poverty gap figure for Masbate implies that, on the average, the income of families living in that province should be increased by 22.6 percent of the poverty threshold or about P3,051.21 to completely eradicate poverty.
The resulting estimates based on the newly approved poverty methodology showed that among the 81 provinces in the country (including the 4 districts of NCR), Sulu consistently posted the highest poverty incidence in 1997 and 2000 with 67.1 and 63.2 percent, respectively. Also among the poorest provinces in 2000 are Masbate (62.8%), Tawi-Tawi (56.5%); Ifugao (55.6%),and Romblon (55.2%). Also included among the poorest provinces are Maguindanao (55.1%), Lanao del Sur (55.0%), Sultan Kudarat (54.3%), Camiguin (53.1%), and Camarines Norte (52.7%). All four provinces of ARMM are among the 10 poorest provinces in the country. Also included are 2 of the 6 provinces in the Bicol region. Likewise, more import adds to the problem.

8. INDUSTRIAL OVER AGRICULTURAL
Philippines is rich with land and resources for agricultural means. Many suggested for us to focus on agriculture rather than industrial because it is our strong point. However the sudden shifts from rural to urban can still be noticed. At year 2001 and 2002, the rate is 1.18% and 1.17% higher respectively. When people focus more on industrial, we are taking a really big risk- a risk that often leads to poverty.

9. LOW FAMILY INCOME AND HIGH EXPENDITURE
Some Filipinos nowadays has insufficient incomes for themselves. This is because their wages are not aligned to the changes in prices in the market.
Poverty incidence in the country or the proportion of families with per capita incomes below the poverty threshold increased from 28.1 percent in 1997 to 28.4 percent in 2000, up by 0.3 percentage points. As a proportion to the population, poverty incidence was placed at 34.0 percent in 2000, deterioration by 1.0 percentage point from 33.0 percent in 1997.
When people face probable problems, they tend to borrow money to satisfy the need. In the end, they
will have more debt and it would make them poor. Likewise, the government spends more money than it actually has that’s why we have a growing deficit.

10. NATURAL CALAMITIES AND CARELESSNESS
The Philippines is nearest to the Pacific Ocean where storms and typhoon actually originated. The possibility of it striking the country is very high, and when that happens, several properties will be destroyed. Thus, every year during rainy season, we encounter 3 or 4 typhoons and it affects our trade and the Filipino household. Some lose their houses and belongings. Earthquake, typhoons and other natural events surely make us poorer.
Filipinos can often be careless, by means of decision and other means. We have more than 20 cases annually of fires- killing and burning houses. We also have several vehicular accidents. When people die, andproperties gone, they would actually leave ther families poor.

11. TERRORIST ATTACKS
Tourists fear terrorists. Business investor fears terrorists. Everyone fears terrorists. When such thing continues, we’ll have no profits for ourselves.

12. FILIPINO VIEWS
Crab-mentality, inggit, and the view that the only way towards wealth is through moving to other countries comprise our present major problems. This are the famous beliefs associated to Filipinos. With these things in mind, we will never be out of poverty if we will not change the way we think.

These are the factors that needs to be considered if we want be out of poverty. It doesn’t end by just reading and understanding them. What we truly need is unity to face the problems we are encountering today.
What we truly need is action.

Source:
www.nscb.gov.ph