You are on page 1of 25

1.

Strategic Management (Bank of the Philippine Island)


I. EXECUTIVE SUMMARY
BPI Historical Background
Bank of the Philippine Islands (BPI) is that countrys second-largest bank, trailing
only Metropolitan Bank & Trust. It is also the Philippines oldest bank and one of the
oldest of all Asian banks. BPI offers a full range of commercial and retail financial
services, including corporate finance services, asset management, and brokerage
and other financial consulting services. BPIs retail network includes more than 700
branches throughout the Philippines, as well as branches in New York, Hong Kong,
and Tokyo. The bank also operates a network of more than 1,200 automated teller
machines and more than 8,500 retailer-based point-of-sale machines. In 1999, BPI
pioneered online banking in the Philippines with the launch of online bank BPI Direct
in 1999. In addition to its banking products and services, BPI has also developed a
strong non-life insurance operation, chiefly under subsidiary BPI/MS Insurance
Corporation. Listed on the Philippines Stock Exchange, BPI has long been majority
controlled by Philippines conglomerate Ayala Corporation.
Founding Asian Banking History in the 19th Century
The increasing trade between Spain and the Philippine Islands created a need for a
banking facility in the Spanish colony. A first attempt to establish a colonial bank
came in 1828, when King Ferdinand VII called for the creation of a public bank in the
Philippines. Yet the actual formation of the bank did not occur until the middle of the
century, under the auspices of then colonial governor Antonio de Urbiztondo y
Eguia, who took up his post in 1850.
Urbiztondo established the bank the following year in the Royal Custom House in
the fortress town of Intramuros. The bank was named El Banco Espaol Filipino de
Isabel 2 in honor of the reigning queen of Spain. Joining the banks policy board was
Antonio de Ayala. The Ayala family and the later Ayala Corporation were to remain
intimately related with the bank and with the Philippines industrial development.
As the first and only public bank in the Philippinesand perhaps the first public bank
in all of Southeast AsiaEl Banco Espaol Filipino de Isabel 2 was granted the
authority to issue the first paper money in the Philippines. That operation started in
1852, when the bank issued its firstpesos fuertes, or strong pesos.
El Banco Espaol Filipino de Isabel 2 and its successors played a prominent role in
financing the development of the Philippines. This included financing for the
countrys first railroad, and, later, its telephone network, its electric utilities, and the
countrys first steamship service.

In the meantime, the bank changed its name after Isabel II was dethroned in 1869,
becoming more simply El Banco Espaol Filipino. Nonetheless, the bank remained
under the control of Spain. The bank remained in its Intramuros site until nearly the
end of the century. However, the shift in Manilas industrial and commercial activity
led the bank to move its offices in 1892 to the Binondo district across the Pasig
River.
The development of the sugar industry in the Philippines had opened up new
potential banking markets, and the bank petitioned Spain for permission to expand
its operations. In 1897, Banco Espaol Filipino opened its first branch office, Iloilo.
The outbreak of the Spanish-American War the following year, however, changing
the political situation in the Philippines.
The Philippines became a U.S. possession following the Treaty of Paris of 1898. No
longer under Spanish domination, Banco Espaol Filipino transformed itself into a
purely Filipino institution. While the change in the companys nameauthorized in
1907came only in 1912, it nevertheless adopted the name of Bank of the Philippine
Islands (BPI). The Spanish influence remained strong, however, and the bank
became popularly known as Banco de las Islas Filipinas. Also in 1912, the bank
opened its second branch office, in Zamboanga.
BPI continued its money-issuing function during this period, although it was no
longer the exclusive issuer of Philippine pesos. With the creation of the Central Bank
of the Philippines in 1949, however, BPI lost its money-issuing privileges altogether.
The now-independent country began instituting a variety of banking reforms
designed to stimulate the growth of the banking system and the creation of new
banks, particularly in rural areas. As part of that process, BPI was converted to a
private bank. In 1969, the banks relationship with the Ayala family and businesses
strengthened after Ayala Corporation took a majority share in BPI. At that point, BPI
became the center of Ayalas banking and, later, insurance interests.
Under Ayala, BPI began an expansion campaign lasting into the next century that
firmly positioned it among the Philippines top banks. Much of BPIs growth came
through a stream of acquisitions, starting in 1974 with its purchase of the Peoples
Bank and Trust Company. That acquisition significantly helped to build BPIs branch
network.
Expansion and Diversification in the 1980s
In 1982, BPI began preparing for the deregulation of the Philippines banking
industry, which enabled it to transform itself into an expanded commercial bank. As
part of that effort, BPI acquired Commercial Bank and Trust Company, which
specialized in the middle market, in 1981. The growing bank then moved to enter
the investment banking field with the purchase of Ayala Investment and
Development Corporation in 1982. BPIs relationship with Ayala also enabled it to
add an international component that year when it took over Ayala International

Finance, based in Hong Kong. BPI made two more significant purchases in 1982
when it acquired Philsec, boosting its new investment banking wing, and Makati
Leasing and Financing. The latter purchase helped strengthen its own leasing arm,
which was launched in 1980 and made BPI the first Philippine bank to offer leasing
facilities.
BPI by then had expanded its operations into the Philippines rural areas after
acquiring Peoples Development Bank, which also held a strong, agribusiness-based
loan portfolio, in 1984. That purchase enabled BPI to meet new government
requirements stipulating that agribusiness loans make up at least 20 percent of a
banks loan portfolio. The Peoples Development Bank acquisition formed the basis
of BPIs new subsidiary, BPI Agricultural Bank.
BPI continued its acquisition burst into the mid-1980s. In 1985, the company added
Family Bank, at the time a major mortgage and savings bank in the Philippines.
Renamed BPI Family Bank, the new subsidiary grew into one of the countrys leading
consumer lending banks. Also in 1985, BPI stepped up its international component
with the purchase of Asian International Bank, based in New York. That office was
later converted into a full BPI branch.

Chronology

Key Dates:

1828: King Ferdinand VII of Spain issues a decree authorizing the formation
of Bank in the Philippines.

1851: El Banco Espaol Filipino de Isabel 2 is established.

1898: The bank becomes a Filipino institution after United States takes over
the Philippines from Spain.

1912: The bank changes its name to Bank of the Philippine Islands (BPI).

1969: Ayala Corporation acquires control of BPI.

1974: BPI acquires Peoples Bank and Trust Company.

1980: The bank begins leasing operations.

1981: Commercial Bank and Trust Company is acquired, and the first ATMs
are introduced.

1982: The company converts to expanded commercial bank status.

1995: First Cavite Savings is acquired.

1999: Far East Bank and Trust Company is acquired.

2000: BPI Direct internet banking service is launched, and Ayala insurance
companies are acquired.

2002: DBS Bank Philippines is acquired.

2003: The company spins off re-insurance operations into Universal Malayan

II. INTERNAL ASSESSMENT


A. CORPORATE PROFILE
BPI Building, Ayala Avenue, Paseo De Roxas
Makati City, 1200
Philippines
Company Profile: Bank of the Philippine Islands
Ticker: BPI
Exchanges: PHL
2009 Sales: 46,880,000,000
Major Industry: Financial
Sub Industry: Commercial Banks
Country: PHILIPPINES
Employees: 12155
Business Description
Bank of the Philippine Islands (BPI) is a Philippine-based commercial bank. The
Bank and its subsidiaries offer a range of financial services that include corporate
banking, consumer banking, investment banking, asset management and corporate
finance. The BPI also serves its customers through alternative electronic banking
channels, such as telephone, mobile phone and the Internet. The Company operates
in three segments: Consumer Banking, Corporate Banking and Investment Banking.
Consumer Banking segment covers deposit taking and servicing, consumer lending
such as home mortgages, auto loans and credit card finance, as well as the
remittance business. Corporate Banking segment consists of the entire lending,
leasing, trade and cash management services provided by the BPI to corporate and
institutional customers. Investment Banking segment includes the various business
groups operating in the investment markets, and dealing in activities other than
lending and deposit taking.
B. OBJECTIVE

Statement of Purpose
BPI: A Tradition of Leadership.
WE BELIEVE in the central role that private enterprise plays in economic
development.
WE BELIEVE that our corporate mission is to be the leading private financial
institution in the Philippines in terms of professional competence, service quality,
responsible corporate citizenry, and overall growth and stability; and to be an
established ASEAN financial institution with a creditable worldwide outreach.
WE BELIEVE that we have a responsibility to manage the business for the maximum
benefit of our customers while adopting the highest standard of integrity; to offer
the widest possible range of financial services that is responsive to their needs; and
to adopt an objective attitude towards change and innovation, ever mindful of
improving service quality and operating efficiency.
WE BELIEVE that we have a responsibility to develop the potential of our employees
to the fullest by providing an environment conducive to their personal and
professional growth; and to foster a value system held in common throughout the
institution in order that we may all share a coherent sense of purpose and direction.

WE BELIEVE that we have a responsibility to attain, over time and within exacting
standards of prudent management, the highest possible return on the investment of
our shareholders

C. COMPANY MISSION AND VISION


VISION STATEMENT

To be the leading non-life insurance company in the Philippines in terms of


professional competence, service quality, responsible corporate citizenry, and
overall growth and stability.

MISSION STATEMENT

Through our insurance and financial service business, we commit ourselves to:

Bring security and safety to people and businesses around the


world, and make a lasting contribution to the enrichment of the society.

Provide the finest products and services, and realizing customer


satisfaction.

Continuously improve our business, thereby meeting our


stockholders expectations and earning their trust.

Provide our employees an environment for challenges, incentives


and professional growth.

E. PRODUCT LINES
PRODUCTS & SERVICES
DEPOSITS
Peso Deposits
Checking
Savings
Time
Long Term Negotiable o Certificate of Deposits
Foreign Currency Deposits
Savings
Time
DEPOSIT SUBSTITUTE
Promissory Notes

LOANS
Commercial Loans
Revolving Credits
Term Loans
Trade Finance
Fleet & Floor Stock Financing Project Finance Sustainable Energy Financing

Consumer Loans
Housing Loans
Auto Loans
Motorcycle Loans
Property Equity Credit Line
Agribusiness loans
Crop Loans
Leasing
Finance Lease
Operating Lease
Full Service Operating Lease
Lease Syndication
INTERNATIONAL BANKING (HONG KONG)
Multi - Currency Time Deposits
Investment Management Account (Directional)
Foreign Currency Bonds
Hong Kong and China Equities and Equity Funds
Letters of Credit and Trade Financing
Foreign Exchange
PAYMENTS & SETTLEMENT SERVICES
Self-Service Banking Channels
Express Phone
Express Online
Express Mobile
Express Teller ATM
BPI Trade
Card-based Products
Debit Car
Credit Card
Prepaid Card
Payment and Settlement Facilities
Cashless Shopping

Bills Payment
Funds Transfer
Remittance
o Direct Credit-to-Account
o Door-to-Door
o Branch Pick-up
Bank-to-Bank
Cellphone Reloading
Corporate Cash Management
ExpressLink
Collections
Disbursements
Liquidity Management

ASSET MANAGEMENT & TRUST


Corporate and Institutional Fund Management
Employee Retirement/Benefits Fund
Pre-need/Insurance Company Funds
Religious/Educational/Institution/Foundation Fund
Mutual Funds
Provident Fund Administration Employee Savings Fund Enhanced Value Funds
Personal Wealth Management
My Portfolio
BPI Legacy
Living Trust
BPI Investment Funds
BPI Short Term Fund
BPI Premium Bond Fund
BPI Gold Fund
ABF Philippines Bond Index Fund
BPI Institutional Fund
BPI Balanced Fund
BPI Equity Fund
BPI Global Equity Fund
BPI Global Philippine Fund Philippine Dollar Bond Index Fund
BPI International Fund Plus

Custody and Special Purpose Trusts


Custodianship/Safekeeping
Securities Custodianship Account (SCA) BPI Investment-Linked Limited Structure
(BILLS)
Traditional Trust Services
Mortgage Trust Indenture
Asset/Mortgaged-backed Security
Escrow Agency

INVESTMENT BANKING
Capital Raising
Debt Underwriting
Equity Underwriting
Loan Syndication
Project Finance
Acquisition Financing Securitization
Financial Consultancy/Advisory
Mergers and Acquisition
Capital Restructuring
Financial Planning
Liability Management
DEALERSHIP & BROKERAGE
Sovereign Debt Instruments
Philippine Sovereign Instruments
o Treasury Bills and Notes
o Retail Treasury Bonds
o Republic of the Philippines Bonds
Asian Sovereign Bonds

Private Securities
Bank Bonds
Commercial Papers
Trade Receivables and Acceptances
Corporate Promissory Notes
Mutual Funds
Equities
Foreign Exchange
Spot Foreign Exchange
Forward Foreign Exchange
Foreign Exchange Swaps
Cash Collateralized Forwards
Forwards with Margin

Derivatives
Interest Rate Swaps
Cross Currency Swaps

INSURANCE SERVICES
Life
Individual Life (Term, Whole Life, Endowments, Variable Life)
Group Life
Non-life
Fire
Motor

Engineering
Marine & Aviation
Bonds
Personal Accident

Casualty
Trade Credit
Pre-need
Pension Plans
Educational Plans
Reinsurance
ANCILLARY SERVICES
Call Center Services
Economic Research
Investment Research
Fixed Income Research
Equities Research
Bank Statement Services
Statement Printing
Letter Shopping
IFE ANALYSIS
Based on the IFE Matrix BPI scores (weighted score). The weighted score indicates
that the company responds in an effective way to the existing strength and
weaknesses in the industry. Banks have large roles in increasing number of
branches here in the Philippines.
III.EXTERNAL ASSESSMENT
A.

MARKET POSITION

As shown in the graph, In terms of assets, the market share of BPI is P724.420
billion who has the least, while BDO who has the leading market share of P862.049
billion, second to its major competitor is metro bank and trust company has a total
of P854.307 billion market share, This graph focuses on the three leading banking
institution in the Philippines, obviously BDO ranked in television advertisement &
promotion that make brand awareness to the public.
B. PORTERS MODEL
Porters Framework Analysis
At present, Bank of the Philippine Islands is a privately owned bank. BPIs
main competitor is Metrobank. However, other competitors include Banco De
Oro, Land Bank of the Philippines, Philippine National Bank, and Rizal Commercial
Banking Corporation (RCBC). BPI does not compete with its two banking partners:

BPI Family Savings Bank and BPI Direct Savings Bank. Instead, they offer different
levels of services based on the needs of the potential BPI client. In terms of both
asset and total deposit Banco de Oro is the number one bank here in the
Philippines.In 2008, Metrobank slid to rank number 2 in terms of both assets and
deposits. The Bank of the Philippine Islands ranked as number 3 in the competition.
There is no new universal bank entering in the Philippine banking industry. This
maybe because of the strict regulations and requirements imposed of the Bangko
Sentral ng Pilipinas in creating private or universal banks in the Philippines.
Investors of a bank supplied cash for the firm to enable the bank to conduct its
operations, which includes lending of money to its customers. Depositors also
belong in the supplier side; they are considered the source of cash of a bank.
Substitutes for Bank of the Philippine Islands viewed as universal bank are thrift
bank and cooperative banks. These banks have different features compare to a
universal bank. A thrift bank has the power to accept savings and time deposits, act
as a correspondent with other financial institutions and as a collection agent for
government entities, issue mortgages, engage in real estate transactions and
extend credit. In addition, thrift banks may also maintain checking accounts, act as
a depository for government entities and local government units and engage in
quasi-banking and money market operations subject to the approval of the Bangko
Sentral. BPI Family Savings Bank and BPI Direct Savings Bank are part of a thrift
banks.
The customer of Bank of the Philippine Islands may also be their suppliers of money
which may also called as the depositors. They deposit their money in the bank in
order for them to keep it safely and they can withdraw this anytime they want.
Depositors can also lend money from the bank on which the depositor now became
the debtor.

C. EFE
MATRIX
EXTERNAL FACTOR EVALUATION

EFE ANALYSIS
Based on the EFE matrix BPI scores 2.86. The weighted score indicates that
the company responds in an effective way to the existing opportunities and threats
in the industry.
In the table we can see that the innovation of the competitors product got
the highest weighted score in threats, BPI should improve more on their products
and services that are being offered to their customers. Adding branches in public
places may help the said company to maintain its good and high competitive
performance

D. CPM MATRIX

COMPETITIVE PROFILE MATRIX

CPM ANALYSIS
Based on the CPM matrix Bank of the Philippine Island obtained a weighted
score of 3.30 while Banco De Oro and Metrobank and Trust Company obtained 3.90
and 2.95 respectively. BDO and Metrobank and Trust Company varied in score in
some other factors which gave them a quite small difference in their weighted
scores.
BPI should capitalize in their competitive advantage (number of Foreign
Branches) and make improvements on those factors in which they are low such as
allocating additional capital for Financial Position and Market Share as well as
additional investment in banking technology and advertisements to keep their
outstanding performance in the banking industry.
IV. STRATEGY FORMULATION
A. BCG MATRIX

BCG Analysis

As shown in the figure, a four-quadrant diagram is drawn and labeled as


stars, question mark, cash cow and dog. The market potentials of each of the
products or services handled by the the firm are assessed and then indicated or
listed in the appropriate quadrant of the BCG matrix. Given the BCG matrix
indicating in which product or service belongs to which product or service will be
pushed hard or set aside for the time being. The listed services that fall under the
category of the star are market leaders typically at the peak of their service life
cycle. They are usually capable of generating enough cash to maintain their high
share in the market. When their market rate slows, star become cash cow. Services
that fall under the castegory of question mark are new products with the potential
for success, but they ned a lot of cash for development. If such a product is to gain
enough market share to become a market leader and thus a star, money must be
taken from more mature products and spent on question marks. Products/Services
that fall under the cash cow category are products or services taht typically bring in

far more money than is needed to maintain in the market share. In the declining
stage of their life cycle, these products are milked for cash that will be invested in
new question marks. And lastly, the dog category, in this category of services has
low market share and does not have the potential because they are in unattractive
industry to bring in cash. Question marks unable to obtain a dominant market share
and thus become stars by the time the industry growth rate inevitably slows
become dogs.
B. SPACE
Strategic Position and Action Evaluation (SPACE) Matrix

C. GSM
MATRIX
Conclusion:
ES average is

10/3 = -3.3

IS average is

13/3 = 4.3

CA average is
FS average is

19/3 = -4.8
13/3 = 4.3

SLOW MARKET GROWTH


Results from Strategic Position and Action Evaluation (SPACE) Matrix and the Grand
Strategy Matrix, shows that Bank of the Philippine Island lies in the seconds
quadrant. Firms in this quadrant are excellent in strategic position, wherein firms
should continue to focus in their competitive advantages.

Market penetration and product development are the appropriate strategies for this
cluster. BPI can use these strategies to apply those strategies given on SWOT
analysis.
D. IE MATRIX

IE Analysis:

Having the coordinates of 2.78 and 2.86 which are the scores in the IFE and
EFE matrix respectively, the combined effect of two analyses can be located in cell
V which is the HOLD AND MAINTAIN position. The appropriate strategies for the firm
are market penetration and product development.
E. TOWS/ ANALYSIS
Internal Strength

Third largest bank in terms of assets

By having Total assets reached P725 billion (US$15.42 billion) as of December


2009. BPI named the third largest bank in terms of assets.

Largest bank in terms of market capitalization

BPIs market capitalization stood at P125.0bn (US$2.63 billion), the highest


among the listed banks, notwithstanding the 24.9% drop in the stock price.

Countrys most profitable bank

The Bank of the Philippine Islands (BPI) reported a 24 percent improvement in


net income for the first nine months of 2010 to P9.1 billion due to gains in both net
interest and not interest income.

Many branches and ATM

BPI has a total of 831 local branches all over the Philippines. And having 1,700
ATM. This strength enables its customer to transact with company anywhere.

Foreign branches are increasing

BPI expands globally by establishing foreign branches all over the world. It has
more than 700 branches throughout Philippines as well as branches in New York,
Hong Kong, and Tokyo. Because of these foreign branches, international customer
can transact from these branches with ease.

Encashment / Deposit checks without any charge

BPI did not charge any amount when you encash your checks or deposit
checks compare to the other bank that charges fee for every transaction.

History of minimal complaints

BPI has a history of minimal complaints based on the blogs and other
comments on the internet.

Online account security is really tight

Because of the threat in online account hacking, the BPI makes their security
really tight to prevent some malicious and unknown transaction.
Internal Weaknesses

Few advertisements

Competitors of BPI have more TV ads than them. BPI has a lower rating
compared to its competitors, wherein they promote new products and services to
the public through TV advertisements.

Operating expenses increase by 7% from last year


Because of having many branches, its operating expenses rose by 7%

Absence of strategic group

By the absence of a strategic group, some competitors are now gaining more
customers than BPI.

Limited access to international market

BPI is not that known worldwide, thats why its access to other market is
limited
External Opportunities

New banking technology

Improvement of banking technology, specifically the software that they use greatly
improves their operations as well their productivity.

OFW Remittances

Throughout the year, the rates of remittances are increasing, because of the
continued strong demand of professional and skilled overseas Filipino workers.
Increase in car loan financing and credit cards

Development programs to the employees

There are short term programs that are offered by some training centers for
the employees to improve their skills

Increase in car loan financing

Due to the behavior of Filipinos they apply for loans to have they needs or
wants.

Increase of credit card users

Many Filipinos apply for credit cards because of great offers. And many
company target this because of fast return through interest
External Threats

Existence of affordable money transfer

Because of cheaper or affordable fee, customers might go for this affordable


money transfer as substitute

Supply and demand of foreign currency

This will affect the company who invest in dollar because the fluctuation of
exchange rates determines whether they will gain or loss.

Innovation of some competitors

Many competitors innovated their products and services to attract more


customers

Threats in mobile banking

Now a day, hacking is one of the problems in mobile systems. An adversary


can download the client on a laptop/desktop and use its insecurities for malicious
purposes.
F. Quantitative Strategic Planning Matrix
G. OVERALL ANALYSIS OF STRATEGY FORMULATION
To formulate a strategy that is suitable in the analysis of BPIs
internal and external factors. Some matrices are used; it includes BCG matrix,
SPACE matrix, GSM matrix, IE matrix and SWOT analysis.
Based on BCG analysis when their market rate slows, stars become cash cow.
Services that fall under the category of question mark are new products with the
potential for success, but they need a lot of cash for development. If such a product
is to gain enough market shares to become a market leader and thus a star, money
must be taken from more mature products and spent on question marks.
The result from Strategic Position and Action Evaluation (SPACE) Matrix and the
Grand Strategy Matrix, shows that Bank of the Philippine Island lies in the first
quadrant. Firms in this quadrant are excellent in strategic position, wherein firms
should continue to focus in their competitive advantages.

In IE matrix, it shows that having the coordinates of 2.78 and 2.86 which are the
scores in the IFE and EFE matrix respectively, the combined effect of two analyses
can be located in cell V which is the HOLD AND MAINTAIN position. In SWOT
analysis, the appropriate strategies for the firm are market penetration and product
development to formulate all strategies.

In overall analysis, to maintain and to improve the status of BPI, they must have
market penetration and product development, like introducing new product and
services, upgrading their banking technology to be more competitive, invest in
television ad and training to the employees to improve their skills to maintain the
stability of BPI
V. STRATEGY RECOMMENDATION

Based on the matrices that has been collected and analyzed. The group would want
to recommend that the company should improve both their extensive and intensive
strategies. The strategies are Market penetration and Product development. These
two must acquire both intensive and extensive efforts for their bank to maintain
their high position and for them to improve their products.

Financial Strategy: 1% of Consolidated Services and Charges

Recommended business Strategy:

STRATEGY 1- MARKET PENETRATION


A.

PRIORITIZING OFW REMITTANCES

In the external factor evaluation, studies show that one of the opportunities that
help the company is the OFW remittances that are received. There is an increase
source of this because they are many OFW or Filipinos working abroad. If the
company would prioritize and improve this product, it would help the company to
have a good performance compared to other. Company must improve how the
families here in the country received the remittances of their loved ones abroad in a
safe and fastest time.

STRATEGY 2- PROCUCT DEVELOPMENT

A.

CONTINOUS HIRING OF EMPLOYEE

People are the one most important in every business because they were the one
who makes your business grow big. By encouraging all the people in lined in this
nature could be a big help to the company itself, but before this, the company
should provide a good training for those who wants to apply for the job so they can
able to do their job complete and correct. With a good training to the employee
there would be surely a development of the activities and actions of the company to
grow and sustain their goals.
B.

IMPROVING BANK ACTIVITIES

There is a need to improve or upgrade the basic technology that the company have
even at least once every 3 years to ensure the growth of the company and meets it
success. The company must provide advance technology for an easier access to
meet the clients quality, product and services. Improving this will also improve the
overall efficiency in the companys activities.

VI. ACTION PLAN:


Bank of the Philippine Islands (BPI) is a Philippine-based commercial bank.
The Bank and its subsidiaries offer a range of financial services that include
corporate banking, consumer banking, investment banking, asset management and
corporate finance. The BPI also serves its customers through alternative electronic
banking channels, such as telephone, mobile phone and the Internet. The Company
operates in three segments: Consumer Banking, Corporate Banking and Investment
Banking. Consumer Banking segment covers deposit taking and servicing,
consumer lending such as home mortgages, auto loans and credit card finance, as
well as the remittance business. Corporate Banking segment consists of the entire
lending, leasing, trade and cash management services provided by the BPI to
corporate and institutional customers. Investment banking segment includes the
various business groups operating in the investment markets, and dealing in
activities other than lending and deposit taking.
To maintain and ensure the companys success the company must improve
the strategy such as market penetration where in the company must improve and
engaged into prioritizing remittances coming from the Filipinos abroad. In market
development, the company must improve the banking strategies as well as
providing more branches for the Filipinos to have more access to the company. In
doing so, this can help the company to increase the trust of its client, increase
affiliated companies that can help to be more convenient in transacting with other
companies. A product development strategy, there is a need to trained more
employees for man power, a need for improving activities like providing more ATM
machines and having easier access to their money

VII. CONCLUSION:

Through the years, BPI strove to deliver the highest standards of convenience
banking through the ingenuity of technology and creative management. As the
recognized most technologically advanced bank, BPI introduced the first
successful automated teller machine (ATM) service in the Philippines. Among BPIs
other firsts are: the issuance of the first debit card, the introduction of cashless
shopping with the Express Teller Card, the establishment of banking kiosks, the
Express Banking Centers, the launching of telephone banking with the Express
Phone, and the use of a Call Center. BPI has distinguished itself by catering to the
ever-evolving needs and lifestyles of the public.
By doing the recommended strategies given in this study it would help the
company to meet the goal of having a good standard of convenience banking. This
will help the company to be on the top. By effective planning and implementing all
the required actions, the company now can give more accurate actions and
products to their customers.
2. 4 years ago
BPI Overall Analysis of Strategy Formulation
To formulate a strategy that is suitable in the analysis of BPIs internal and external
factors. Some matrices are used; it includes BCG matrix, SPACE matrix, GSM matrix,
IE matrix and SWOT analysis. Based on BCG analysis when their market rate slows,
stars become cash cow. Services that fall under the category of question mark are
new products with the potential for success, but they need a lot of cash for
development. If such a product is to gain enough market shares to become a
market leader and thus a star, money must be taken from more mature products
and spent on question marks. The result from Strategic Position and Action
Evaluation (SPACE) Matrix and the Grand Strategy Matrix, shows that Bank of the
Philippine Island lies in the first quadrant. Firms in this quadrant are excellent in
strategic position, wherein firms should continue to focus in their competitive
advantages. In IE matrix, it shows that having the coordinates of 2.78 and 2.86
which are the scores in the IFE and EFE matrix respectively, the combined effect of
two analyses can be located in cell V which is the HOLD AND MAINTAIN position. In
SWOT analysis, the appropriate strategies for the firm are market penetration and
product development to formulate all strategies. In overall analysis, to maintain and
to improve the status of BPI, they must have market penetration and product
development, like introducing new product and services, upgrading their banking
technology to be more competitive, invest in television ad and training to the
employees to improve their skills to maintain the stability of BPI