A case on strategic planning of Bankard, Inc.

• Main Author: Comia, Danilo B.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2115
• Institution: De La Salle University

Philippine economy marked another year of robust growth in 1996. The countrys sustained efforts towards growth with stability kept the economy on an even keel and made it strong enough to whether occasional markets disruptions from both internal and external influences. With the continuous liberalization and globalization, the present situation of the financial services industry is very unpredictable. The increasing incidence of unforeseen shocks in global financial markets has made it clear that survival rest not only on organizations technical competence. It is also in the anticipation of the changes in the customer, competitor and policies. Anticipation of these changes would mean constant reconstruction of competitive strategy in order for the company to cope with the changes in the environment. Amidst the changes in the financial services industry, Bankard Inc. manage to remain as the major player in the credit card business. With the support in distribution, operation, and marketing coming from its parent company, the PCIBank Group, Bankkard Inc. already established its foothold in the industry.. However, PCIBank Group always reconstruct established its foothold in the industry. It follows therefore that being a subsidiary, Bankard Inc. must realign its competitive strategy towards PCIBank Groups vision and mission. Different frameworks have been used in order to develop a new set of strategies. The five forces model helps in analyzing the financial service industrys opportunities and threats. Financial analysis together with the value chain facilities the study of Bankard Inc. strengths and weaknesses. Competitive advantage was also derived using the value chain. Delivery of services is said to be the competitive advantage of the Bankard Inc. over its competitors. This is due to the support of the parent company in distribution, operation and collection of payments. From the analysis of the financial service industry and the Company, the following proposed strategies were formulated: expansion of operation in Asia-Pacific and Europe, market creation, and product innovation. The proposed corporate strategy will compliment the existing strategy of Bankard Inc. that are gearing toward the vision of the parent company. This paper also includes the proposed functional strategy in order to the corporate strategies attain the objectives of the company. Lastly, a well-planned strategy will not work effectively without the correct action plan for implementation. The paper uses McKinseys 7-S framework in order to arrive on a specific action plan. The proposed action plans are as follows: additional employees, training modules for employees and middle management, additional division in the organization, and boosting advertising campaign. The proposed corporate and functional strategies together with the implementation plan will help Bankard Inc. attain its mission. This therefore would be one of the ways in which PCBank Group achieve its vision to be a world class financial services institution.