Socio-Cultural

The social environment consists of demographics, lifestyles, and social values.

Demographics may be segmented into several elements:

Population Size – total number of people in a given geographic

area. Age Structure – number of people within different age bands.

Geographic Distribution – growth rates within and shifts of population across

geographic regions.

Ethic Mix – The mix, size, and growth rates of ethnic groups.

Income Levels – The amount and growth rates of income across demographic/ lifestyle
groups such as family types, age levels, and geographic regions.

Demographic Trends - aging population, rising affluence, geographic distribution of

population, and greater disparities in income levels.

Lifestyles may also be segmented:

Household Formation – composition, type, rate of change, and size of households.

Work – whether people work, what type of work, where they work, expectations
about work, how long they work.

Education – type and level of education.

 Consumption – what people purchase or consume (or do not purchase and consume).
Leisure –how people spend their spare or nonworking time.

Social Values may be broken into the following values:

Political Values – reflected in how people vote; how they feel about major political and
social issues.

Social Values – reflected in attitudes toward work, leisure, participation in organizations,

acceptance of other groups, acceptance of social habits (e.g., smoking).

Technological Values – reflected in acceptance of new technologies, choices between

costs of technologies and their benefits.

Economic Values – reflected in pursuit of economic growth, trade-offs between

economic progress and its social costs.

Economic Segment

The economic environment refers to the nature and direction of the economy in which
business operates. There are two types of changes:

Structural Change - refer to change within and across sectors of the economy . Cyclical
Change - refers to upswings and downswings in the general level of economic activity.

Political Segment
 The political environment may be segmented into formal and informal systems.

Formal System - consists of the electoral process as well as the institutions of

government: the executive branch, the legislatures, the judiciary, and the regulatory
agencies.

Informal System - refers to the areas outside government in which political activity
occurs. It includes local community settings and the media.

Technological Aspect

The technological environment involves the development of knowledge and its

application in “how to do things.” It can be broadly segmented into the following
domains:

Research - fundamental or basic research that seeks the principles and relationships
underlying knowledge into some prototype form, often termed invention.

Development - transform knowledge into some prototype form, often termed as

innovation.

Operations - put the knowledge to use in a form that can be adopted by others, often
termed diffusion (i.e., emergence of Internet technology and wireless communications).

Ecological Aspect
The ecological environment involves the stock of the physical and natural resources within a
region.
Legal
 The legal environment covers the new government laws and regulations that influence

the way firms in an industry will perform.

Institutional Segment

The institutional environment involves the physical and intellectual infrastructure and all
the institutions associated with them. It has the following domains:

Physical Infrastructure – transportation such as roads, rail, and water

systems. Communications – mail, phone, and other electronic systems.

INDUSTRY AND COMPETITIVE ANALYSIS

Strategic Map

Strategic mapping of an industry determines which companies are directly competing with
each other and reveals the market positions of industry competitors. A strategic group is a
group of firms in an industry following similar competitive approaches and market positions
along the same strategic dimensions. Therefore, firms belonging to the same strategic group
are assumed to be directly competing with each other.

Strategic group mapping is a technique for displaying the different markets or competitive
positions that rival firms occupy in the one industry.

The strategic groups in the financial services industry can be displayed on a map using the two
(2) strategic dimensions: service and technological leadership, as shown below:
The

firms plotted in the two-variable map using pairs of two different strategic dimensions are
grouped in circles proportional to the size of the group’s share of total industry sales revenues.

Prevailing competitive pressures and industry driving forces favor some strategic groups
and hurt others.

The profit potential of different strategic groups varies due to the strengths and
weakness in each group’s market position.
Service is the degree to which it provides ancillary services with its product line, such as
engineering assistance, an in-house service network, credit, and so forth and this was further
subdivided into:

Basic – services which are usually offered by almost all financial institutions (e.g.,
deposit taking, withdrawal accommodation, lending, etc.)

Moderate – those additional services aside from the basic banking transactions (e.g.,
payroll services, ATMs, electronic fund transfers, overseas remittances, Letters of
Credit, etc.)

Full – refers to those services which entail more sophisticated technology and can be
offered by those who have the financial capability (e.g., mobile banking, phone
banking, internet banking, etc.), including insurance services, foreign exchange
services, bills payment services, and interbank services.

Using the strategic dimensions, the financial services industry can now be grouped into five
distinct groups. Below is a description of each group:

Based on these two (2) dimensions the following groupings can be used:

Group A – This group is composed of the different foreign banks that have operations in the
country. They have a high degree of seeking technological leadership in support of
their full range of basic financial products and services, but limited ancillary
services. Such foreign banks are Hongkong-Shanghai Banking Corporation,
Standard Chartered Bank and Citibank.
 Group B - This group consists of the Philippine universal banks and local
commercial banks with high degree of providing full ancillary services with its
product line (Bank of the Philippine Island, Rizal Commercial Banking
Corporation, Philippine National Bank, Land Bank of the Philippines, and China
Bank) competing in the market in terms of providing online-banking and mobile
banking services, fund transfer services, credit card services, insurance services,
foreign exchange services, and advisory services, among others. Thus, this group
has a high degree of seeking technological leadership for them to be capable of
catering to all types of financial needs of their customers.

Recommended Org. Strategy

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.