Case 12.

FOUR ACES CONSTRUCTION AND HARDWARE By December 1997, FACHS' assets were valued at
SUPPLY: Here, There, and Everywhere over P75 million. The four ladies realized that an oppor-
In 1964, four girls who were in their fourth year high tunity for expansion exists but they also understand their
school at St. Mary's in Bayombong, Nueva Viacaya, made limitations. They are aware that they are not getting any
a pact that they must be together even after college. The younger as all of them are already fifty years old. In
girls consisting of Gloria Tadino, Rosemarie Ginez, Ligaya addition, expansion would mean additional funds will be
Sebastian, and Rosalie Chico were the brightest in the required. Nevertheless, they thought that it would be nice
graduating class. They parted ways in college, however. to allow the business to grow even if they are no longer
Gloria went on to finish a civil engineering course capable of doing so. As all of them are already married
at the University of San Agustin. Rosemarie got her and have children, the idea was deemed appropriate.
industrial engineering course at the University of Manila. As Gloria, Ligaya, Rosemarie, and Rosalie faced each
Ligaya was awarded a diploma in sanitary engineering other in a meeting, they hoped that options will be brought
by National University. Rosalie graduated with a business up by anybody to help them solve their problem.
management degree at St. Paul College.
In 1973, the four were reunited at the birthday party
of Gloria. All four were already working and have good
paying jobs. Rosemarie mentioned to her friends that
maybe they should put up a business. All agreed and within
a short period, they opened a construction and hardware
supply store in Bayombong. A capital contribution of
P100,000 each was placed in a common equity fund. The
store carried the name Four Aces Construction and
Hardware Supply (FACHS) and Ligaya was assigned as
store manager. The operation was successful that after
two years, the firm's value was placed at P956,000.
A second store was opened in 1976 at nearby Solano
town and was assigned to Gloria. The operation was also
a success. This prompted the four to open another store
in Santiago City under the managership of Rosemarie and
a fourth one in San Jose City under the care of Rosalie.
The company was able to maximize profits by
installing a centralized purchasing system. As a result,
volume discount and credit extensions were granted by
the suppliers. The company was able to institute an
effective personnel development program.
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