Date of Publication
2001
Document Type
Oral Comprehensive Exam
Degree Name
Master of Business Administration
College
Ramon V. Del Rosario College of Business
Department/Unit
Decision Sciences and Innovation
Abstract/Summary
This plan was formulated to provide Banco De Oro Universal Bank (BDO) with competitive strategies to enable the bank to achieve a return on equity of at least 25 percent by the end of the year 2004 and a net income after tax of at least P1.5 billion by December 31, 2004. In order to realize this targeted net income, a gross revenue of at least P12 billion should be generated by the same period. Said revenue on the other hand shall be generated by the income contribution of both fund-based and fee-based businesses, which will be given more concentration by the bank.
BDO Universal Bank will be positioned as a convenience bank offering a wide array of innovative financial products and services, longer banking hours and a Saturday banking experience. Aside from ShoeMart (SM) suppliers and tenants, its target market is the retail market segment whose banking needs are based on their lifestyle. Therefore, the development and expansion of distribution channels to promote convenience banking (via phone, through the branches, internet, ATMs, convenience centers, etc.), will be given emphasis. BDO will continuously strengthen its non-traditional products (insurance services, remittance services, bills payment, etc.), which will be integrated to its traditional products. Said strategy shall enable the bank to protect its position against non-traditional financial institutions. Similarly, BDO's fee-based will be improved to compensate for the deterioration of the bank's funds-based income.
The bank's promotional efforts will concentrate on continuous prospecting, referrals and a depositor-get-depositor campaign. Deposit interest rates will remain while the fee-based business will be reviewed but fixed amounts will be charged for every service. Branches will serve as the hubs for selling products, which will be located in strategic locations to reach its target market. Moreover, mall branches and convenience centers will also be exploited to enable clients to associate shopping with banking. This will also give them the opportunity to have a Saturday banking experience. With the advent of technology, the business environment will be highly computerized to sustain the convenience concept- where one can bank anytime , anywhere and any way.
Human resource group will focus on recruiting highly qualified professionals to occupy significant positions while finance will concentrate on managing risk to minimize non-performing assets and maximize returns on its excess funds by investing them on overnight market.
The competitive advantage by BDO to gain market share and generate profit are as follows: (1) Expanded distribution channel (electronic and branch network (2) Innovative products and services and (3) a 24-hour customer call center (hotline) which will operate nationwide.
In terms of structure, the corporate planning and marketing support group will still be responsible for the development and packaging of products with the support of the branches for monitoring product activity. Support systems for monitoring will also be developed. Management by Objectives (MBO) will be the style of management in all levels to instill to everyone the importance of results from their performance. Similarly, skills will also be identified and evaluated to ensure that everyone is performing accordingly. Skills will include marketing skills, technical skills to name a few. Said skills will be discussed in depth on the text sections. Finally, the business results after the strategy implementation will be summarized in the financial projections which are as follows: (1) Return on equity= 32% versus the objective of the 25% (2) Net income after tax= P1.8 billion versus the objective of P1.5 billion (3) Gross revenue= P12.9 billion versus the objective of P12 billion (4) Total loan portfolio= P40.1 billion versus the objective of P40 billion and (5) Free based-revenue= P3.9 billion versus the objective of P3 billion.
Abstract Format
html
Language
English
Format
Accession Number
OCE1012
Shelf Location
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
Physical Description
1 v. (various foliations) ; ill. ; 28 cm.
Keywords
Banks and banking--Philippines; Banks and banking--Management; Banco de Oro Universal Bank
Recommended Citation
Mutuc, C.(2001). Strategic management for Banco de Oro Universal Bank. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/3980
