A strategic management paper on the Cooperative Rural Bank of Bulacan, Inc.

• Main Author: Jadulan, Richard S.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Banks and banking > Philippines; Banks and banking; Cooperative > Philippines; Cooperative Rural Bank of Bulacan; Inc.
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3666
• Institution: De La Salle University

Strategic management is a set of tasks and decisions which results in the formulation of strategies and their implementation in order to achieve the objectives of an organization. With the application of relevant analytical frameworks discussed in the Strategic Management Course, this paper aims to present a Strategic Management Plan for the Cooperative Rural Bank of Bulacan, Inc. (CRBB) that will enable the Bank to meet the challenges posed by today's dynamic environment. CRBB was organized in May 1975 by 135 primary cooperatives of Bulacan with the objective of carrying out and engaging in the business of extending credit to all types of cooperatives and their members. Today, with total resources of P1.186 billion operating in eight (8) banking offices in the province of Bulacan, CRBB has become a prime mover of the rural economy in Bulacan by providing financial services to local residents, with primary focus on microfinance. CRBB belongs to the financial services industry, which is composed of individuals and firms that act as intermediaries for the transfer of funds between lenders and borrowers. The challenge for CRBB is how to lay the foundation for future success while winning in today's marketplace. To face this challenge, potential changes in the macroenvironment, as well as the resulting effects to the present task environment have to be considered. Thus, the Bank has to assess the following threats to the industry: * Slow economic growth, continuing political instability, worsening graft and corruption and the expansion of VAT which slows down industry growth, thereby increasing the intensity of rivalry among existing competitors. * Granting of FCDU license to rural banks under BSP Circular No. 522 which raises the balance among competitors, thereby increasing the rivalry among them. * Increasing awareness towards value for money and the growth of e-commerce/ebanking which improves buyer information, thereby increasing their bargaining power. * Increasing inflation rate which diminishes buyer switching cost and population growth towards high density areas, both of which also, thereby increase the bargaining power of buyers. * Increasing trade liberalization and greater disparity between the rich and poor which escalate the impact of the suppliers input, thereby increasing the bargaining power of suppliers. * BSP advocacy in promoting microfinance which reduces barriers to entry in the financial services industry, thereby increasing the threat of entry.