A Service plan prepared for Asian Appraisal Co., Inc.

• Main Authors: Del Rosario, Marisol B., Ocampo, Maria Carmina M.
• Format: text
• Language: English
• Published: Animo Repository 1994
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16884
• Institution: De La Salle University

Background In July, 1961 , Asian Appraisal Company, Inc. (AACI) was formed in response to the demand for interpreting and establishing property value in a most objective manner. From its traditional base of Fixed Assets Appraisal, the company then introduced Business Enterprise Valuation that is rapidly gaining importance in the corporate world. Cognizant of the new market challenges, AACI now plants to re-position itself in the market, reorganize its structure, re-design its internal processes, and merge the experience and knowledge of its professional staff with the benefits of information technology. Market Situation. Presently, the market has limited awareness of appraisal services and the industry generally lacks specialization. In 1993, total revenues for the Appraisal Industry is at approximately PHP 53,964M, a 21% growth from the previous year, 45% of which is AACI' share or equivalent to PHP 26,256M. The large share of AACI is because of its large roster of clients. AACI's clients are composed of Corporations, Government Agencies and Individuals. Corporations account for 80% of AACI's revenue while Government is 4% and Individuals is approximately 20% of AACI's total revenue. Competition. Because of the growing demand for this type of service, new appraisal companies have continuously entered the appraisal industry. This easy entrants of competition is because there are no significant barriers to entry in terms of capital, equipment, and market specialization. A comparative analysis of AACI and its direct competitors showed the following: In 1993, AACI's share is 45.5%. Cuervo has 31% market share, and the rest are the combined shares held by the remaining competitors. Within 1989-1993, the income difference of AACI with Cuervo ranges from P 5.7-9.8M. Within the same years, Cuervo's annual income income grew at an average of 19% while AACI griw at 16%. From 1989-1993, the average profit margin of both AACI and Cuervo was computed at 12%. In terms of services offered, all appraisal companies offer fixed asset appraisal services. Most of the companies also offer consultation and management services however, only AACI, Cuervo, and Philippine Appraisal provides Business Enterprise Valuation.