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STRAMA PAPER. [PART 18]

ACTION PLAN

Controls

The following activities would be carefully observed for the attainment of the plans and objectives: 

1. Re-assessment of the primary bases of the organization’s strategy.

2. Evaluating the organizational performance which involves comparing expected results to actual results, considering deviations from plans, evaluating individual performance, and examining growth to achieve stated objectives. 

3. Taking counteractive actions if necessary, it is needed if some changes occur in the company and it requires making changes to not suitable to present strategies now.

CONCLUSION

Metrobank is indeed one of the superior banking institutions in the country. It is truly a dependable and stable bank proven by its 48 years of existence. However, the tight competition Metrobank is facing with other banks especially Banco de Oro (BDO) and Bank of the Philippine Islands (BPI) makes consumers get confused on which bank they would invest their money. We, the researchers, have carefully evaluated internal and as well as external factors that would affect the company either positively or negatively. And with these thorough investigations and researches, we arrive at recommended strategies for the company. Furthermore, with the proper implementation of these strategies and proposals, can help Metrobank to have an edge over the other competitors and solely be a best bank serving the consumers in the Philippines.

STRAMA PAPER. [PART 17]

STRATEGY RECOMMENDATION

The bank’s strategic goal is to gain the position of being the superior banking institution in the Philippines through providing an improved quality services to customers.

Based on the careful evaluation of strategy formulation, Metrobank’s strategic marketing, management and financial objectives are as follows:

Marketing Objectives

To provide a more effective distribution

To attain customer loyalty

To improve quality service

To improve brand equity

To  increase market share

To have a more effective promotional activity

Management Objectives

To involve lower level management in making decisions

To maintain and improve employees’ productivity

Financial Objectives

To preserve the company’s solvency and especially its liquidity

To increase total assets and deposits

Strategy 1

Market Development - This strategy involves action extended banking hours and days, promotions that would create alliances with Ayala Malls and would provide convenience to its clients.

1. Proposed extended working hours and days

This strategy will give an edge over the other banks that have usual banking hours and days. It would give more time to the customers and clients to have transaction with Metrobank any day they wish. 

2. Proposed promotions in Ayala Malls

A 5% rebate on all items in Landmark with a minimum purchase of P5,000.  This will help to increase the sales of Landmark; on the other hand, Metrobank would also have the opportunity to increase their credit cards sales.

3. Increase deployment of ATM’s

Deploying additional ATM’s to different locations including rural areas will give convenience to its clients and will help in improving and promoting brand image and awareness to those areas.

Strategy 2

Market Penetration – In this action, it would benefit the company by having more customers by giving lower interest rates compared to other banking institutions and doing promotional activities like TV advertisements and broadsheets.

1. Lower interest rates of loans to SME’s

Reduction of interest rate will help the bank penetrate the market by attracting small and medium enterprises.

2. Extensive promotional activities

Metrobank should enhance their marketing efforts through widespread promotions and advertisements of the products and services they offer to the market. They should invest in promotions in order to achieve brand awareness and brand recognition. Advertising includes broadsheets, TV and radio advertisements through different stations and networks in the country should be implemented.

Strategy 3

Product and Service Development - seeking to bigger sales by improving present service or enhancing customer relation. The increase in customer satisfaction will translate to loyalty that can result in higher customer retention and growing franchise value for Metrobank. Product and service development is one of the factors that separate one bank to other banks even thought their products offers are almost the same. 

1. Proposed job enrichment

Interactive workshops and training seminars will provide job enhancement for their employees and will pursue professionalism to achieve customer satisfaction.

2. Extended banking hours and days

It will help Metrobank to be more competitive over the other banks by having an income even without introducing new products to the market. This will give customers a choice and satisfaction to transact with them evenweekend since there are circumstances those time lags occur especially during payroll period.

STRAMA PAPER. [PART 16]

Quantitative Strategic Planning Matrix (QSPM) 

Ranking:

 4 = not acceptable

3 = possible acceptable

2 = probably acceptable

1 = most acceptable

0 = not relevant

Analysis: 

Based on the Quantitative Strategic Planning Matrix, the total attractiveness scores of Market Penetration, Market Development and Product and Service Development are 6.26, 6.92, and 5.14 respectively. The highest strategy is the Market Development which implies that it is the most attractive strategy and will possible be the effective strategies recommended for Metrobank.

STRAMA PAPER. [PART 15]

Overall Summary of Strategy Formulation

STRAMA PAPER. [PART 14]

Threats, Opportunities, Weaknesses, Strengths

Analysis: 

The following strategies are recommended based on the evaluation of the Threats, Opportunities, Weaknesses, and Strengths (TOWS).

Marketing Penetration strategy seeks to increase market share for present products or services in markets by performing better marketing efforts. This type of strategy consists of increasing the number of productive workers, doing extensive promotional activities, and other activities that would help the company attain greater market share.

Market Development strategy involves offering their present products or services in new markets. The company must execute activities like extending the banking hours for more resourceful daily dealings with the customers and proposing promotion as well as having an alliance with other companies.

Product and Service Development strategy usually involves critical research and a huge amount of allowance for development expenses. This strategy may include training of employees to increase productivity and extending the banking hours to a more efficient way of serving the customers.

STRAMA PAPER. [PART 13]

Internal-External (IE) Matrix

Analysis: 

 The Internal-External Matrix is based on the total weighted scores of External Factor Evaluation Matrix and Internal Factor Evaluation Matrix. The total weighted score of EFE Matrix is 3.36 and for IFE, 2.67. The intersection of their total weighted score falls in cell number II which is described as grow and build. Intensive (market penetration, market development. diversification and product development) or integrative (backward integration, forward integration and horizontal integration) are the commonly employed strategies for these types of division.

Grand Strategy Matrix (GSM)

Analysis: 

The following strategies are recommended based on the result of the Grand Strategy Matrix (GSM).

Market Penetration strategy which seeks to increase the market share for present products in the present market.

Market Development strategy which introduces the present product in new geographic areas.

Product Development strategy which seeks to increase sales by improving or modifying the present products.

Forward Integration which means gaining ownership or increased control over distributors or retailers.

Horizontal Integration which means control or merger with competitors.

STRAMA PAPER. [PART 11]

Strategic Position and Action Evaluation Matrix (SPACE) Matrix

Analysis: 

Based on the above result, Metrobank should be more aggressive in order for them to maintain their position. Metrobank’s directional vector is located in the Aggressive quadrant (upper-right quadrant) of the SPACE Matrix. Hence, Market Penetration, Market Development, Product Development, Backward Integration, Forward Integration, Horizontal integration, or joint ventures are recommended strategies for Metrobank.

STRAMA PAPER. [PART 10]

Strategic Position and Action Evaluation Matrix (SPACE) Matrix