METROBANK STRAMA PAPER, GROUP 3/M0531

Strategic Planning and Management: Group 3

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.

Corporate Officers
Board of Advisers
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 member-employers 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-the-counter 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.

EXTERNAL ASSESSMENT

Market Share 2010

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 3rd 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 2 – minor weakness 1 – major weakness

*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.