Metrobank- Analysis.docx

September 9, 2017 | Author: Meditacio Monto | Category: Bdo Unibank, Banking, Money, Financial Services, Business
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Metropolitan Bank and Trust Company (METROBANK) EXECUTIVE SUMMARY The Metropolitan Bank and Trust Company, commonly known as Metrobank, is the largest Philippine Bank in terms of its overseas presence and in terms of total assets. A group of Filipino incorporated Metrobank with the providing finances by the Filipino – Chinese community on September 5, 1962. Since then, Metrobank had been into business and had acquired its universal banking license on August 1981. The major competitors of Metrobank are Banco de Oro (BDO) which is a commercial and leading local / universal bank in the Philippines. It is a major and largest bank in the Philippines in terms of assets, loans and deposits. Another competitor is bank of the Philippine Islands (BPI), which is the oldest bank in the Philippines and still in operation and it is the country’s 3rd largest bank and company in terms of assets. In these major competitors, Metrobank can maintain its market growth in the banking industry and can sustain its financial stability and continue to venture of branches abroad. Based on the IFE and EFE Matrices in the previous factor evaluations, with the resultant result and scores were 3.00 and 2.41 respectively where in it a STRONG IFE Matrix and MEDIUM EFE Matrix plotted has on IE Matrix. Based on the IE Matrix, the joint effect of the internal and external analysis falls GROW AND BUILD strategies wherein this section has divisions for intensive (Market Penetration, Product Development and Related Diversification); or integrative (Backward Integration, Forward Integration and Horizontal Integration) strategies where it can be most suitable in this division. Based on the CPM Matrix of Metropolitan Bank and Trust Company obtained a weighted score of 3.20, while Bank of the Philippine Island obtained a weighted score of 3.40 and Banco De Oro obtained a weighted score of 3.50. Even if Banco De Oro has the highest weighted score, some of its factors have a varied score in rating and weight. Metrobank should prioritize competitive advantage and make additional improvements with factors that have low on rating allocating additional advertisements as well as investments in order to catch up in the future. Accordingly, our group had conducted strategies that involve the company’s collaboration with famous companies, which this can be an investment for reaching out to other well – known company to increase market share, share growth and company profits. Another is maximizing and upgrading of its branches’ computer technology and IT software and ATM needed in order to sustain its quality in their product and services. Lastly, focusing on weakness in SWOT Analysis is investing in budget for advertising. Referred in the CPM, it has a low ranking contrast to its

opponent, wherein they promote their products and services to the public by advertising it on television or radio announcements. By comparing, the strategies of Metrobank to its competitors can develop excellent organizational performance that can lead Metrobank to maintain its market growth. Basing on these strategies illustrated, there maybe changes after years to come, but it can entail corrective actions depending on Metrobank’s Market Stability during the following years to come. This can only be focusing on four perspectives: the company’s financial condition, for customer information, for business processing department and learning and growth development. INTERNAL ASSESSMENT Corporate Profile Metropolitan Bank and Trust Company Headquarters: Metrobank Plaza, Sen, Gil J. Puyat Avenue, Makati City (632) 898 – 80000 The Metropolitan Bank and Trust Company, commonly known as Metrobank, has a diverse offering of financial products and services from regular banking to insurance, including corporate, commercial and consumer banking as well as credit card, leasing, remittances, investment and trust banking. In this instance, Metrobank is the second largest bank in the country. A group of businesspersons established the Metropolitan Bank and Trust Company (Metrobank) September 5, 1962 at the Wellington Building in Binondo, Manila. In August 1963, the bank’s first branch in Divisoria was established. Metrobank has opened its Davao Branch four years later, the first provincial branch. Metrobank was listed in the Philippine Stock Exchange in October 1980. It had significant ownerships in both local and international subsidiaries. On August 21, 1981 the Central Bank authorized Metrobank to operate as a universal bank and granting them their universal banking licanse. In the same year the bank had entered ventures which they had tying up of owenerships with Philippine Savings Bank, travel agency with Thomas Cook Group in Thomas Cook Phils., Inc. (1986), Toyota Motor Corporation of Japan and Mitsui for Toyota Motor Philippines, Sumitomo Mitsui Banking Corporation of Japan, National Mutual Holdings Ltd. for Philippine AXA Life Insurance Corporation and ORIX for ORIX Metro Leasing and Finance Corporation.

Metrobank had top the private domestic bank in total resources of P8.8 billion in September 1982 also in the same year, Metrobank had outdo 200 marks of branches, subsidiaries and offices. The bank continuously improved to have steady development growth in September 1989, it had raise from P2 billion to P5 billion. Additional to that, the bank’s total capital funds P57.3 billion in June 30, 2006 and also increased to P588.1 billion in the same period. As of June 2007, assets had reached P699.1 ($14.5 billion) (P46 = $1). Objectives This strategic paper will be dwelling different objectives for maintaining, developing and improving the company’s function for its different objectives. Annual Objectives are short-term milestones that the organization must achieve to reach the long term objectives while long – term objectives are implemented for more than one year wherein specific results were achieve by the company in pursuing its basic mission. Short – Term Objectives: 

To provide quality services by training employees at proper HR

To select target sales and develop more on market share

To introduce other various products in very competitive prices

Long – Term Objectives: 

To allocate more budget for branded products offered

To continuously approve the use of e-commerce to the company by providing modern technologies in its most convenience

To expand its numerous branches locally and globally

Company’s Vision and Mission Statements Vision To be the best bank for all our stakeholders Mission We aim to be a premier universal bank of international standing, committed to creating and providing the best possible value for our core constituents – clients, employees, shareholders and the communities whom we serve.

We shall exert all efforts to transform every opportunity to expand our sphere of business activities intro instruments to help our constituents realize their own goals and aspirations. We shall strive to reach a highly diversified customer base through an extensive distribution network at the same time delivering a wide array of premium – value products and services with distinctive quality. We realize that our success depends on the quality of our people, the efficiency of our systems, and the strength of our organization. Hence, we shall continuously invest in our human resources to ensure a service force characterized by the highest standards of dignity, probity and professionalism. We shall constantly endeavor to be more responsive to dynamic market conditions, flexible in coping with customer needs, innovative in leading the competition and united in pursuing common objectives. Our financial capability shall likewise be continually invigorated to maintain dynamism, growth and stability. Recognizing our responsibility to our shareholders, we shall exercise judicious management to consistently provide them with fair returns and enhance the value of their investments. As a responsible corporate citizen, we shall remain committed to making meaningful contributions for the economic and social development of the communities in which we serve. Metrobank Group has a combined network of over 800 local and international branches/offices, remittance offices and subsidiaries worldwide. On September 28, 2009 Metrobank was the first local bank to offer a line of CNY denominated offerings in banks.

Product Lines and Services BUSINESS: CORPORATE ACCOUNTS Metrobank’s deposit accounts give you liquidity and the flexibility to accept daily collections and make payments or withdrawals over-the-counter or through checks. 

Saving Accounts

Metrobank renders the fundamental tools for your money while acquiring Interest. 

Time Deposit

Putting your money in Metrobank’s Time Deposit and get higher interest than a standard savings account for only P10,000. 

Checking Accounts

Settling though checks is really risk-free, favorable, credible way of settling your bills or loan installment payments. CASH MANAGEMENT Be on top of your business. Metrobank Metrocash Manager has a full range of financial solutions that give you maximum control over your funds, the flexibility to manage your cash flow for better operational efficiency, added security, and convenience. CORPORATE LOANS Metrobank helps grow your business by providing the funding you need to reach your goals. 

Loans for Capital Expenditures

For your company’s capital expenditures and expansion, choose among 7 products and services that fit your business’ cash flow and peculiarities. 

Corporate Finance Consultancy

Metrobank offers various ways for your company to meet its funding requirements of at least P300 million, allowing you to pursue projects according to your cash flow pattern. 

SME & Other Government Supported Loans

Metrobank provides low-cost funding to small-, medium-, and large-scale enterprises to finance certain projects that fall within the Government’s priority list. These funds may be availed for short- to long-term periods. Most may be used as working capital, funding to acquire fixed assets, or both. TRADE PRODUCTS AND SERVICES Metrobank has a complete array of facilities which will meet all your requirements. As you ship your goods across the globe, we at Metrobank can readily assists you in pre-shipment funding needs as well as post shipment needs. 

Financing for Imports and Domestic Purchases

Over 2,000 international correspondent banks, Metrobank efficiently facilitate importation of goods, through LC or non-LC modes. Metrobank can help you facilitate payment of goods to your local suppliers through Domestic LCs.

Financing for Exports

Metrobank can help carry goods across the globe with our reliable export trade services like Export Packing Credit, Export Bills Purchased, and more. CORPORATE INSURANCE Metrobank Group offers superior benefits for corporate clients who provide insurance protection to their employees through the Group Insurance Program of AXA Philippines, a subsidiary of Metrobank and a joint venture with the Global AXA Group of France, global expert in insurance and investments, and one of the largest life insurance companies in the world. GOVERNMENT E-SERVICES 

BIR eFPS Tax Payment

Metrobank, as an Authorized Agent Bank (AAB) for the Bureau of Internal Revenue’s Electronic Filing and Payment System (eFPS), allows you to electronically pay different tax returns online, just like you do business and banking online. With just a few points and clicks, paying your taxes is now even more convenient, secure, fast and easy. 

SSS Contribution and Payments

To remit your employees’ contributions and loan payments to the SSS in one swift and secure process, use the BancNet EDI system. All SSS-registered memberemployers who have existing accounts in any Metrobank branch are qualified to enroll in this facility free of charge. Simply click on the hyperlink that will take you to the BancNet EDI system and send your contributions and payments online conveniently and securely. INVESTMENTS: TRUST PRODUCTS AND SERVICES Metrobank Trust Banking Group has a specialized investment team who takes into consideration the investment objectives, time horizon, and risk tolerance of its clients. These services can come in the form of managing Retirement Funds, Pre-Need Funds, Foundation Funds, School Funds and trust services for individuals who seek wealth protection, financial growth and convenience. 

Personal Trust and Investment Services

Optimize the yield of your investments, protect your assets and achieve your financial goals through Metrobank Trust Banking. Metrobank Trust Banking will assist

you in crafting a customized financial solution based on your short and long-term goals and risk appetite. The customized portfolio aims to address your specific financial needs including the needs of your beneficiaries such as to maintain a certain standard of living, preserve assets up to a certain generation, as well as provide for any unforeseen contingencies such as incompetency, incapacity, physical disability or misfortunes. 

Corporate Trust and Investment Services

Metrobank’s Trust Banking Group has a specialized investment team who takes into consideration your investment objectives, time horizon & risk tolerance. These services can come in the form of managing Employee Benefit Trust (EBT) Plan assets such as Retirement Funds, as well as investible funds of Companies, Schools, Foundations, Institutions, Organizations, Insurance Companies & Pre-need Firms. 

Other Fiduciary Services

Metrobank’s Trust Banking Group also performs administrative functions in accordance with the provisions in the trust/agency agreement. TREASURY PRODUCTS Metrobank is a leader and prime mover in Government Securities trading. We have the expertise and the ability to provide clients with a wide array of investment products to choose from at competitive prices. We are also committed to quote both buying and selling rates on the investment products we offer. PERSONAL: CAR AND HOUSING LOANS Metrobank offers convenient and affordable products to help build your house, buy a car or bridge your cash needs. 

Home Loan

Whether you’re thinking of building or buying a house, you’ll find useful information on home-owning and home-building right here. Get valuable tips on choosing the right house, renovating, loan refinancing, and of course, getting the right financing package for your dream home. 

Car Loan

Let Metrobank help you with tips on how to go about the car-buying process, an auto gallery for a preview of some vehicles available in the market, and a car financing package you’ll find hard to resist. CREDIT CARDS

Metrobank lets you live out your dream lifestyle through our innovative credit cards. INTERNET BANKING Metrobank offers you a convenient and secure way to transact on-line. 

Metrobank Direct

For the upbeat individual who makes surfing the Internet as much a routine as paying bills or transferring funds, banking at Metrobank will certainly fit his lifestyle. Bills Payment Solution—Pay your credit cards, utilities, and insurance through the Internet. Just enroll your account at one of your servicing Metrobank branches. No need to enroll the merchant or biller at the branch; you can do it conveniently on your computer. Car Loan Solution—Get pointers to remember when you’re choosing a car to buy. Check out our Gallery of brand new cars, vans, SUVs, and pick-ups from the country’s leading car manufacturers. For your financing needs, try out our Special Package that makes buying a Toyota vehicle with comprehensive insurance even more affordable. We also provide regular financing. All at the touch of a button. Home Loan Solution—Get handy advice on buying a home or lot, building a new house, or renovating your existing one. We provide home financing too. Check out our Home Loan Calculator to know how much you can afford to borrow. PERSONAL ACCOUNTS Metrobank offers you a variety of deposit products that helps you save for your future needs. 

Savings Accounts

Metrobank offers the basic tools for saving your hard-earned money while earning interest. 

Checking Accounts

Metrobank offers you a hassle free, all in one, interest-bearing account. 

Time Deposit

Metrobank offers you higher yields on your peso and foreign currency deposits. PERSONAL INSURANCE 

Traditional Life Insurance Products

With these limited-pay whole-life plans, you can enjoy lifetime insurance protection but be free from a lifetime of paying premiums. 

Investment-Linked Products (ILPs) or Unit-Linked Products (ULPs)

These investment-linked products give you a double-edged advantage: the protection of a life insurance plan and the flexibility of an investment. PHONE BANKING Metrophone offers banking convenience in the comforts of your home or office. Bank in the comfort of your home or office with Metrophone Banking. Metrophone Banking is available daily, even during Sundays and holidays. TRAVELING Metrobank offers a variety of products that makes your travel experience convenient and worry-free. We want to be with you wherever you are. 

Travelers Checks

Travelers Checks allow you the security of having cash without the usual worries of its getting lost. Metrobank offers Travelers Checks from AMEXCO in various currencies. 

Credit Cards

When on a trip, it is always good to have a ready source of credit that you are sure would be accepted in many establishments around the world. In addition, with Metrobank’s free travel benefits, you will have even more reason to get one of our Visa or MasterCard cards today. 

Metrobank E.T.

If you really need to pay in cash abroad, then just go to a Cirrus-Maestro ATM and use your Metrobank E.T. card to withdraw cash in that country’s currency. It’s that simple! OFW PRODUCT AND SERVICES Metrobank’s products and services make remittance a worry free experience for you. SUPER BILIS PADALA 

Remit to Metrobank Account

Remit directly to your beneficiary’s Metrobank account and the funds get credited within 24 hours.

Remit to Metrobank World Cash Card

The Metrobank World Cash Card is an alternative and innovative way for your beneficiaries to receive remittances, breaking away from the traditional over-thecounter remittance transactions in the bank. Funds are credited within 24 hours. 

Claim at Our Branches

If your beneficiary doesn’t have a bank account, he or she can claim your remittance from any of over 540 Metrobank branches nationwide. 

Door-to-Door Delivery

Metrobank can deliver your remittance right to your beneficiary’s doorstep or to any address you wish, within 24 hours for Metro Manila and within 48 to 72 hours for provincial addresses. 

Remit to Other Bank’s Account

Metrobank can credit your remittance even if your beneficiary’s account is with another Philippine bank. Funds are initially transferred to the head office of your beneficiary’s bank within 48 hours upon receipt of payment instruction. After which, the funds are credited to your beneficiary’s account. 

Pay Bills

Pay your utility bills, loan amortizations, insurance premiums, etc. when you remit money in any of our international offices abroad using our online bills payment system. Simply choose from any of our available merchants, register your account number and you’re ready to pay your bills whenever you remit. Internal Factor Evaluation Matrix

IFE ANALYSIS Based on the table shown above IFE Matrix, Metrobank scores about 3.00. It weighted based on the company’s higher than average rate and has a strong internal position. This reiterates the fact that the company is strong in terms of branches and strong personnel relationship. It had increased in the number of foreign branches; positive value system of the employees, as well as the broad distribution of local branches and ATM rated as 4 which had been evaluated by the company’s strengths. From the illustration table, it concludes that Metrobank has a good internal structure.

On the other hand, the highest internal weakness of Metrobank falls on low budget for advertising and impairment loss. In this areas they can seize market share and

to have more on operational system on its budget for advertising. Even though it still has its weaknesses this can be solved by dividing profits and provide it for advertising purposes solve by proper management.


Market Position

Based on the graph, Metropolitan Bank and Trust has a 12.6% market share in terms of assets and second to its greater competitor, which is Banco De Oro that has a market share of 14.9% almost 15% and Bank of the Philippine Island that has a 10.9% of market share. These are the most competing banks in the Philippine in terms of the banking institution. The others are the seven universal banks that has included in the top ten banks of market share in terms of assets that has the 61.6% in the country. This graph specifies the three principal banking institutions in the Philippines, which are Banco De Oro, Bank of the Philippine Islands and Metropolitan Bank and Trust Company. Banco De Oro has positioned to number one because it is engaging in advertisements using television, billboard and forms of promoting their new product and services to the public or make brand awareness to its customers in the future. Even though, Metrobank is in the second place there are many more plans to make and promotions to be given in the future that leads them for not giving up.

Competitors: Banco de Oro Unibank (BDO)

Banco de Oro (BDO) is the major bank in the Philippines. It is now the largest bank in the Philippines in terms of assets, loans, and deposits. The bank is the product of the Banco de Oro-Equitable PCI bank merger after the boards of both Banco de Oro Universal bank and Equitable PCI Bank agreed to merge on Dec 27, 2006. For a while, the entity was known as Banco de Oro-EPCI, Inc., but announced that it would go by the name Banco de Oro Unibank, Inc.starting February 2007.

Bank of the Philippines Islands (BPI) One of the main competitors of Metrobank is Bank of the Philippine Islands (BPI) is the oldest bank in the Philippines still in operation and is the country’s 3 rd largest bank and company in terms of assets (US$ 15.29 billion). It is owned by Ayala Corporation – the largest conglomerate in the Philippines, and is based ion Makati City’s Central Business District (CBD) , on the corner of Ayala Avenue and Paseo de Roxas. BPI is also the oldest bank in Southeast Asia and has the long and distinguished history that spans over a century. It has either influenced or has been influenced by many nations, including parts of the former Spanish Empire, especially Mexico, and the United States. While many as an old institution consider it, BPI is trying, with moderate success, to promote itself as a dynamic institution that caters to its various clients, which hail from various sector of Philippine society. Landbank of the Philippines (LBP) Bangko sa Lupa ng Pilipinas, also known as Landbank of the Philippines (LBP), is a government-owned bank with a special focus on serving the needs of farmers and fishermen. While it provides the service of universal bank, it is officially classified as a “specialized government bank” with a universal banking license. Porter’s Model

PORTER’S FRAMEWORK ANALYSIS Metrobank which is a universal bank is competing with the Philippine Islands, Banco de Oro, china bank and PS bank the 4 top banks in the Philippines. Metro bank is the second in ranking here in the Philippines. And BPI is ranked as number three in the market share analysis while BDO is in the ranked one. And about to new entrants, there is no new universal bank entering in the Philippine banking industry. This maybe because of the strict policy of (BSP) Bangko Sentral ng Pilipinas in creating a universal bank in the Philippines. The one who supplied on the banks are the Investors and depositors, Investor supplied cash from the firm to enable the bank to conduct its operations, which lending money to its customers. Depositors are considered as the source of cash of a bank. The substitute Products for Metrobank is thrift banks and cooperative banks. These banks are having different features compare to a universal bank. These are lenders that put a big interest in the loans negotiated with them. The target market of Metrobank are also their supplier of money which are the depositors they maybe a students, workers or ordinary people living in the Philippines.

External Factor Evaluation (EFE) Matrix

EFE ANALYSIS According to the EFE Matrix of Metrobank it scored 2.41. EFE Matrix based on the evaluation of general environment analysis of these external factors that affect the business to get the potential opportunities and threats for Metrobank. The weighted score indicates that the company’s response had a huge effect in its existing Opportunities and Threats in the bank industry. In the table, we can see that the densest factor is the OFW remittances; it evaluated in a weight the average of 0.34. Banks have a large role in increasing the remittances here in the Philippines. Everyday, we Filipinos received large amount of money from abroad. This factor leads us to deposits to the bank. EFE Matrix above has its current competitive position or business strength in the industry is above average. This factors had been coping up well, which can be positively or adversely affect its financial positioning today. Competitive Profile’s Matrix (CPM)

Legend: Rating: 4 – major strength 3 – minor strength weakness 1 – major weakness

2 – minor

*The company who has the highest TOTAL is the strongest strategic position among the competitors in the industry. CPM ANALYSIS Based on the CPM matrix of Metropolitan Bank and Trust Company obtained a weighted score of 3.20, while Bank of the Philippine Island obtained a weighted score of 3.40 and Banco De Oro obtained a weighted score of 3.50. Even if Banco De Oro has the highest weighted score, some of its factors have a varied score in rating and weight. Metrobank should prioritize competitive advantage and make additional improvements with factors that have low on rating allocating additional

advertisements as well as investments in order to catch up in the future. This advantage can improve its management, customer service, financial position, number of branches, customer loyalty and security and safety and international relation. STRATEGY ASSESSMENT Boston Consulting Group (BCG) Matrix

BCG Analysis Based on the BCG Matrix, the Business is under the Star category because these have a high market share in the fast growing industry. Metrobank lends the financing support to its wide range business customers in the world. The Personal product and services are under the Question Mark category because they also have high market share in a slow growing industry, while the Investment product and services fall under the Cow category because they have low market share and they do not generate much cash in the organization. Metrobank does not have any product or services will fall under the Dog Category, since Metrobank’s product and services are very competitive and have high market share in the banking industry. Strategic Position and Action Evaluation (SPACE) Matrix

Conclusion: X – Axis = ( IS + CA ) 5.33 + (- 3.33) = 2 Y – Axis = ( FS + ES ) 4.33 + (- 3.67) = 3.66

Grand Strategy Matrix (GSM)

GSM Analysis Metrobank has rapidly grown here in the Philippines. The firm approach is somewhat good, Metro bank already build a name in Banking. They were much known on this industry, the company is very competitive, and they give whatever the demands of the people. They are producing a high quality performance that is why they are getting the trust of their customers. They in the strong competitive position, people are treating their service as a good and better than other banks. Internal-External (IE) Matrix

Internal – External Analysis Based on the IFE and EFE Matrices in the previous factor evaluations, with the resultant result and scores were 3.00 and 2.41 respectively, the joint effect of the internal and external analysis falls in CELL I rates 3.00 for IFE Total Weighted Scores and CELL IV that rates 2.41 for EFE Total Weighted Scores. The outcome of the IFE and EFE total weighted scores falls and described as GROW AND BUILD strategies wherein this section has divisions for intensive (Market Penetration, Product Development and Related Diversification); or integrative ( Backward Integration, Forward Integration and Horizontal Integration) strategies where it can be most suitable in this division. Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis

Internal Strength Number of Personnel had Increased The company has provided additional personnel to provide customer at its best service that could offer. They improved its work force by hiring more or additional employees and it grab the force on the market, which had enlarged their net income and their market share.

Local Branches and ATM’s Broad Distribution Metrobank has 730 local branches all over the Philippines. It also have a wide distribution of ATM machines in 2, 200 nationwide. This force enabled its customer to transact with the company in any location of the country. Number of Foreign Branches had Increased Metrobank spread outs globally by beginning foreign branches in a total of 69 all over the world, so that Filipino overseas and other foreign investors or customers can transact with the branches at relieve. The financial stability of Metrobank Metrobank had exceeded all the challenges in the economy through its excellent managing in stabling the financial condition and position. Its previous financial statements have supported the fact. To complete all its objectives they had provided such funds for all concerns. Positive Value System of Employees Each employees of Metrobank is trained, skilled and educate to follow the company’s belief and proper customer’s approach. They are strictly oriented and instruct employees with its values, and soon they will be part of the organization. Give importance to Corporate Social Responsibilities Metrobank does not only focus on the arriving of favorable outcomes, but they also give importance in their responsibility to the community. The company shows their CSR by conducting several different projects that would benefit the country and its people. Internal Weakness Provisions for Loans and Impairment Loss The provisions for loans and impairment loss had grew and the raised, it had a signal for the management to analyze its credit management and evaluate whether it needs more enhancement. Low Budget on Advertising The lesser budget of Metrobank has noticed on few television, radio and print out advertisements. This is why it referred to the CPM, it has a low ranking contrast to its opponent, wherein they promote their products and services to the public by advertising it on television or radio announcements. Deposits to Capital Declines

A deposit to Capital has been reducing by 0.46%, and it indicates that the deposits have lessened the amount. Because of this, lesser money can be lent for customers. Interest Income Declines Interest income is the primary source of revenue of the bank. Decrease in Interest income may recommend that it may have smaller generated-revenue activities yet this will not result to lesser net income. Reducing of expenses or interest may produce a good quality of net income. External Opportunities Car Loan Financing and Credit Card Inclines This opportunity, increase in car loan financing and credit card users is connected with how the customers had been using it on their daily basis. Every financing company has a target in the market, because it has an immediate return for the company through its interest. Development and Training of Personnel Implementing constant training and development for Metrobank’s personnel and employees is a great factor to their operations and productivity, and to its achievement for the company’s goal by implementing this long term objective, this can create developing good qualities of personnel towards its customers. Increased by 7.8% OFW remittances Throughout the year strong order of professionals and skilled OFWs, the rate of remittances persisted to increase. Working abroad turned out to be global employment opportunities, which has remained favorable with the combined wider access and expanded money transfer services by OFWs beneficiaries. This can enable to transact money transfer with ease. Banking Technology Innovation Modern technology had been very helpful and useful to all customers. It grows rapidly due to the demand of human needs, thus Information Technology Experts innovates their product and services by technological usage. The Improvement of Banking Technology that will be user friendly to all specifies that the software they use will greatly improve the function as well as their output and efficiency. External Threats Increased by 4.0% Inflation rate

Inflation affects the value of the money, the higher the inflation rate, the value of the money decreased. This might cause the rise of commodity prices in every industry, which might affect the movement of the money to the customers. Improvement in Competitor’s Product Competition turns into stiff due to obtaining its company’s objectives and goals. Even now, they constantly innovates and upgrading all their products, services and upcoming competitive and reasonable prices and new products that will be introduced to the public, then attract and draw more customers. Decreased in Construction Loan Decreasing in Construction Loan can affect income of every bank that lends financing on constructions for its corporation. This can conduct an outcome that can affect preceding housing loans during this crisis. Foreign Currency’s Supply and Demand This factor can affect foreighn exchanges from all currencies. It may not meet the demands of the customers if stock out may encounter, if the exchange rates determine during gain or loss an interest. Climate Change Effects The effects would create a great force on economy of a country, which is not stable. This factor is always considered because all of us can be affected during phenomenon. Reasonable Money Transfer Existence Currently, affordable money transfers are available in many remittances stations distributed nationwide. Customers might go for other substitutes where they can get cheaper and affordable fee during money transactions. Quantitative Strategic Planning Matrix (QSPM)

Over – all Analysis of Strategy Formulation Metrobank is one of the leading banks present today. It is very productive and has continuous development since the day it was established. Metrobank can continue to venture out products and services offered to each client. These strategies had been to formulating, follow implementations and to know the evaluation of these strategies to have functional decision that can continuous to achieve their objectives. Metrobank Company has rates to accumulate some of the strategies that

were generated and evaluated based on the analysis of external and internal factors, several matrices, SWOT Analysis, models and the banks financial projection. Based on the SWOT Analysis, it recommended that Market Penetration, Product Development and Related Diversification on improving the products are all bonded to all the strategies that had been conducted. BCG Matrix used to determine the company’s product and services’ status concerning the market share and strategies were plotted in star (Quadrant II - Conservative). The SPACE Matrix is a tool that focuses on strategy formulation especially as related to the competitive position of an organization on the peak of their market. Based on the SPACE Matrix, Metrobank’s directional vector is located on the upper right quadrant that suggests that the organization if excellent in using its internal strength to take advantage of external opportunities, overcome its internal weaknesses and avoid external threats. The location in SPACE Matrix also suggests that market penetration, market development and product development are suitable for the company. The GSM is used to determine what the actual applicable strategy that should be used. External and Internal factors are used again in order to get the attractive of each strategy. The result of the GSM shows that market penetration and product development can be executed. In our overall analysis, market development for improving operation and service and product development, which include service development, for upgrading new banking technology and personnel development training are to be implemented in order to sustain the status growth of Metrobank in the industry and market. STRATEGY RECOMMENDATION It is recommended that the company should dwell on creating intensive strategy. This includes market penetration and product development. These strategies require intensive efforts for Metrobank’s competitive position with existing products to improve. Strategy 1 – Market Penetration A. Broaden Market in China In 2010, Metrobank inaugurated its wholly owned subsidiary, Metropolitan Bank Limited, the first foreign bank headquarters to be established in Naijing. The bank serves as the base for Metrobank’s operations. Therefore, the next step, Metrobank needs to broaden market their share in chains and finance market. Metrobank has a good opportunity to compete with other international banks like City Bank and BPO because of their increasing Finance Market. Strategy 2 – Product Development

A. Improve Operation and Service. Improve some operation and service to adopt custom. Different culture needs different way to delight your customer who is with different culture. This can entail large research development expenditures. In the Banking Industry, the company will always pursue to build a healthier balance sheet and strong capital position by its substantial progress. Implementing this could improve to achieve the strategy. It can be involved a design that can create and organize plans and handle turn – downs on the next year. B. Updating new banking technology Maximization upgrades of its branches’ computer and IT software and ATM are needed in order to sustain its quality in their product and services. Strategy 3 – Market Development Strategy By involving selling present products and services in new markets, this can be an investment for reaching out to other well – known company to increase market share, share growth and company profits. This can gain brand and company awareness with the other company alliances to create partnership or corporation with the company’s products and services. Action Plan Market Development This action involves increasing in working hours and days, promotion with other company alliances. This can maintain and serve more customers in anytime of the day and would be efficient if it will be following on more time management during the bank’s opening time. Market Penetration A good partnership with famous companies such as Bench Philippines, S&R can be useful and promote Metrobank’s market growth. The collaboration with these companies aims to increase the bank’s market share, profit of the company and sales / market growth. This enables customers to have a correlation towards the bank’s products and services offered. This can entail brand and company awareness only by their alliances. Product and Service Development This can increase sales by improving and innovating present service, enhancing and training proper customer relationship. Even products and services are almost the

similar compared to other competitors this is one of the factors one bank can maintain the loyalty of its customers and create a good customer relation.

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