PAMANTASAN NG LUNGSOD NG MUNTINLUPA

College of Business Administration

Strategic Management for BDO Unibank Inc.

A Strategic Management Paper

In Partial Fulfillment for the Degree

Bachelor of Science in Business Administration

Presented to the Faculty

Collage of Business Administration

Pamantasan ng Lungsod ng Muntinlupa

By

Duro, Erwina A.

Maaño, Shannel Joy

November, 2021

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Table of Contents

Executive Summary ……………………………………………………………………….………………………… 3

Chapter 1: Industry Analysis ……………………………………………………………………………….. 4-9

• Definition of Industry and its Dominant Economic Features …………...…… 4-5

• Major Players of the Industry ………………………………………………….… 5
• Industry Analysis using five forces model ………………………………..….... 6-8
• Key Success Factor ………………………………………………………..……... 8-9

Chapter 2: Company Analysis …………………………………………………………………..……..… 10-20

• Background Information of the Company ……………………………..……... 10-12
o Brief Company History ……………………………………………………... 10
o Vision and Mission ……………………………………………………............ 11
o Products/Services ………………………………………………….................11-12
o Organizational Chart ……………………………………………………......... 12
• Company Analysis Using SWOT Analysis ………………………..…………. 13-15
• Company Analysis Using PEST Analysis …………………………………….... 16
• Financial Statement Analysis ……………………………………...…………… 17-19
• Analysis of the Current Management Strategies ………………...…………….19-20

Chapter 3: Management Strategy and Implementations ……………………….. 21-24

• Management Strategic Directions ……………………………………………… 21-23
• Management Strategic Plan ……………………………………………………... 24

Conclusion and Recommendations ……………………………………………………………..…... 25-26

References ……………………………………………………………………………………………..…………………... 27

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Executive Summary
Banco de Oro Unibank, Inc., also known as Banco de Oro or BDO, is the Philippines'

largest bank by assets and is controlled by the SM Group of Companies, the industry

leader in retail merchandising, shopping mall operations, banking, and corporate

governance. Its products are financial services, and its industry is finance and insurance.

Its primary headquarters are in BDO Corporate Center located at 7899 Makati Avenue,

Makati City. BDO is a universal bank in the Philippines that offers a wide range of

corporate, commercial, retail, and investment banking services, as well as treasury,

trust, cash management, insurance, and credit card services. BDO's main market is

currently a niche in the corporate, market, and middle market banking segment, which

includes middle sized businesses, small and medium-sized enterprises, and

retail/consumer banking. After a thorough research, confirms that the company's

strategy effectively leverages existing opportunities and minimizes the potential

negative impact of threats. BDO Unibank Inc. is very successful in terms of their

management. The management teams are composed of industries strongest board of

directors in terms of field experiences and profession. Effectively provision of guidance

to the members, commitment in the company objectives and carefully planning out

steps for organization development. This also includes proper communication within the

organization, the process of disseminating changes in culture and planning as well as

adapting to strategic changes within the community.

In the other hand, BDO Unibank Inc. still need to improve their strategy when it comes

in market penetration, market development, and product development.

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CHAPTER 1

Industry Analysis
This chapter presents the analysis of the industry where the company operates. It
will discuss and analyze the industry and its dominant economic features.

Definition of Industry and its Dominant Economic Features

Banco De Oro or commonly known BDO Unibank Inc. is a full-service universal bank
in the Philippines. It is under the finance and insurance industry. Lending (corporate and
consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit
Cards, Retail Cash Cards, Corporate Cash Management, and Remittances are among the
products and services it offers in the Philippines. Investment Banking, Private Banking,
Leasing and Finance, Rural Banking, Life Insurance, Insurance Brokerage, and Online and
Non-Online Brokerage are all services provided by the Bank's local subsidiaries

BDO's institutional capabilities and value-added goods and services are the
foundation of its customer relationships. Its branches, on the front lines, continue to set
high standards as a sales and service-oriented, customer-focused force. The Bank has
the largest distribution network in the country, with over 1,500 active branches and
offices and over 4,400 ATMs. BDO has 16 worldwide offices across Asia, Europe, North
America, and the Middle East (including full-service branches in Hong Kong and
Singapore). The Bank also offers digital banking solutions to make banking easier, faster,
and more secure for its clients.

BDO has positioned itself for greater balance sheet strength and continued
expansion into new markets through strategic acquisitions and organic growth. In terms
of combined resources, client loans, deposits, assets under management and capital, as
well as branch and ATM network nationally, BDO is the country's largest bank as of 30
June 2021.

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BDO has received numerous honors for both institutional and product excellence
from a variety of local and international award-giving agencies. The following are some
of their most recent banking accolades from 2018, Best Bank in the Philippines by
Finance Asia and Alpha Southeast Asia, Two times Best Domestic Bank by Euromoney’s
Asia money Best Bank Awards and The Asset Triple A Country Awards, Strongest Bank in
the Philippines by The Asian Banker Strongest Banks by Balance Sheet, and the Platinum
Award by The Asset Corporate Awards.

Major Players of the Industry

Table 1: List of Top 5 Players in the Industry

Name of the Total Assets Annual Net Number of Length of

Company as of 2020 Income as of Employees Operations
2020

Land Bank of the 2, P19.68 Billion 31,277 58 years

Philippines 513,573.88

Metropolitan Bank 2,142,837.28 P13.83 Billion 13,150 59 years

Bank of the 1,891,819.96 P5.0 Billion 21,429 170 years

Philippine Islands

Development Bank 1,137,108.63 P5.60 Billion 10,535 74 years

of the Philippines

Philippine National 1,107,571.31 P2.63 Billion 8,550 105 years

Bank

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Industry Analysis Using Five Forces Model

Table 2: Thematic Results of the Five Forces Industry Analysis Model

Five Forces Themes

Rivalry among competing Sellers Number of competitors

(High) Diversity of competitors
Industry concentration
Quality difference

Potential entry of new Competitors Barriers to entry

(Low) Brand Loyalty
Capital Requirements
Government Policies

Bargaining Power of Buyers (Medium) Difference between competitors

Price sensitivity
Buyers’ ability to substitute
Bargaining Power of Suppliers (Low) Number and size of supplier
Uniqueness of each supplies product

The Threat of Substitute (Medium) Number of substitute product available

Perceived level of product differentiation
Switching cost

Rivalry of competitors

The banking industry is a difficult platform to penetrate since the government

regulates the establishment and organization of bank in the country. In the industry of
banking in the Philippines, it only operates minimal names of banks by which it
tightened the competition. Identified three major competitors in terms of difference in
product, financial services; lending, credit card services, foreign exchange, insurance,
remittance and etc. The competition also rises in the bank different offered rates but

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with the same services. Also each bank has its own way to perform their strategies for
effectively development.

Potential entry of new competitors

Since the implementation of the bank deregulation in the Philippines, involving in

the bank industry became hard as for new entrants to position themselves. Upon the
decision to raise the minimum capital requirements and tighten the restrictions in
branching out. The law also provide strict compliance in the requirements for the
establishment of banks in the Philippines. Such requirements is vital to protect
confidentiality information and transaction. And as for brand loyalty, customer trusts
bank that prove themselves all though out the time of establishment. Aside from capital
as the foremost given requirements, other things such as technology and qualified staff
are also important to be given the ability to operate. High switching cost for customers
in long term contracts and transaction disable the threat of new bank institution.
Considering such factors, it concludes to low chances for new entrants.

Bargaining power of supplier

Bank industry offers services that cannot be easily replace and present for
substitution. Since they only have ATM equipment, cards and slips, the adjustment of
prices is according to the market condition. And with this equipment provided by
supplier the uniqueness of each varies to its purpose. This is only use for the daily
operation of banks and without those establishments all are useless.

Bargaining power of consumers

Buyers are classified as bank customers who can be either individual or businesses.
Bank industry offers services that cannot be easily replace and present for substitution.
In lined with this is convenience in banking; is the means of providing services which are
least offered in the banking industry such as online money transfer. However in

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complying with governments regulation and requirements are the main causes that
hinders the bank from constantly updating and changing their services.

Threats of substitute

With the difficulty in entering the banking industry and also the competitive rates
and charges, the possible substitute to cater customers who are not able to transact
with banks remains. In the lending business, savings accounts and even remittance
services are now extended to pawnshops, these are substitute in that aspects.
Nonetheless those threats are still low to medium basis since not all bank services are
found in other channels; such as credit card services.

Key Success Factors

Table 4: Thematic Results of Key Success Factors of the Industry

Areas Themes

Management Related Effective management

Customer Service And Convenience

A partner of community

Non-Management Related Business Partners

Management Related

Effective management is having a team that provides good guidance in strategies,

direction, and governance. The management teams are composed of industries
strongest board of directors in terms of field experiences and profession. Effectively
provision of guidance to the members, commitment in the company objectives and
carefully planning out steps for organization development. This also includes proper

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communication within the organization, the process of disseminating changes in culture
and planning as well as adapting to strategic changes within the community.

The Customer service and convenience is the commitment in serving customers

that surpasses expectation. Remaining to be trustworthy at all time and showing care in
assisting the clients. Provides convenience through widening the aspect of online
transactions such as online banking, payless card transaction, online availability of loan
services and etc.

A partner of community, BDO leads environmental initiatives as a part of Corporate

Social Responsibility (CSR) that runs a program to give back to the community. One of
their programs relate to advocacy in disaster response, rehabilitation and reconstruction
of rural health centers, construction of houses in resettlement areas etc., livelihood
projects for families and disabled members and such. With these projects BDO became
the partner of community in providing benefits to the unfortunate without financial
compensation in return.

Non-Management Related

Business Partners, since BDO is a member of the prominent SM group in the

conglomerate of business spanning, it became easier to attract investors in the industry.
This also anchors the trust of potential shareholders since the background is stable in
many aspects.

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Chapter 2

Company Analysis
This chapter presents the analysis of the subject company. It shows the background
information of the company. In addition, it presents the results of the company analysis
using SWOT Analysis, PEST Analysis and the ODQ Analysis. Likewise, the results of the
financial statement analysis and the analysis of the current management strategies are
presented.

Background Information of the Company

BDO Unibank Inc. was established on January 2, 1968, as Acme Savings Bank, a
thrift bank with just two branches in Metro Manila. In November 1976, Acme was
acquired by the SM Group, the group of companies owned by retail magnate Henry Sy,
and renamed Banco de Oro Savings and Mortgage Bank.

In December 1994, BDO became a commercial bank and was renamed Banco de
Oro Commercial Bank. In September 1996, BDO became a universal bank, which led to
the bank's name being changed to the current Banco de Oro Universal Bank (BDO
Unibank).

BDO Unibank eventually became involved in insurance services in 1997 it is a

bancassurance firm by establishing a subsidiary called BDO Insurance Brokers. In 1999,
BDO Unibank expanded its insurance services through partnerships with Zamora
Assurance and Assicurazoni Generali s.p.a. (Generali), one of the world's largest
insurance firms, and Jerneh Asia Berhad, a member of Malaysia's Kuok Group. Later,
BDO Unibank partnered up with its insurance affiliates, which are Generali Pilipinas Life
Assurance Company and Generali Pilipinas Insurance Company, in March 2000

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Vision Statement

We shall be at the forefront of the leasing and financing industry in the Philippines
and in the Asia Pacific Region. We shall have the most extensive market reach and shall
be composed of highly trained, technically competent, and upright professionals
working as a team and contributing to the growth of the nation and the communities we
serve. Recognizing that the customer is the focus of our activities, we shall lead the
industry by providing modern and relevant financial services which exceed their
expectations.

Mission Statement

We are in business for our customers, shareholders, and employees. We shall deliver
creatively innovative products and cross-sell the BDO Unibank Group’s services
supported by procedures, systems and processes which will ensure utmost customer
satisfaction. We shall recognize and reward excellence in our employees and shall
provide an environment conducive to maximizing their potentials as we work cohesively
as a team. We shall generate consistently high returns for our shareholders.

Product/Services

BDO Unibank Inc. offered Product BDO Unibank Inc. Local Subsidiaries
Here in the Philippines

Lending (Corporate and Consumer) Investment Baknking

Foreign Exchange Private Banking

Deposit-taking Leasing and Finance

Brokering Rural Banking

Trust and Investment Life Insurance

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Credit Cards Insurance Brokerage

Retail Cash Cards Online and Non-Online Brokerage

Services

Corporate Cash
Management/Remittance

BDO offered the following products and services; Lending (corporate and consumer),
Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Retail
Cash Cards, Corporate Cash Management and Remittances in the Philippines. Through
its local subsidiaries, the Bank offers Investment Banking, Private Banking, Leasing and
Finance, Rural Banking, Life Insurance, Insurance Brokerage and Online and Non-Online
Brokerage services. This will help the merchant’s transactions easily.

Organizational Chart

Company Analysis Using SWOT Analysis

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Table 5: Thematic Results of SWOT Analysis

Areas Themes

Strengths Number of awards and citation

Strong Corporate Profile

Convenient Service

Weaknesses limited international presence

Opportunities Expansion to Foreign Market

Threats Many Competitors

Strength

BDO received a multiple number of awards and citation. BDO is known for its awards
over the years of establishment and service in the banking industry. The consistency of
winning awards for domestic and international banking, private banking, investment,
asset and fund management, cash management, private wealth management, as well as
in the aspects of bond and equity. The bank is also prominent among the financial
organization in Asia and Europe which emphasize the efforts in "finding ways" for their
clients in the industry. And these inspires the organization to strive for the best
performance and provide financial products and services for their customers. The
awards provide a trustworthy standing in the community of banking and collects
recognition within the industry.

Second the strong corporate profile, being a part of the prominent SM group in the
industry of business, the country's most successful and largest conglomerate, holds

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great opportunity to expand their names in the community. Becoming the full-service
universal bank, it has the ability to provide complete products and services in retail as
well as in corporate markets. BDO also have one of the largest distribution networks
which includes 740 operating branches and over 1,500 ATMs nationwide; the branches
set high standards as a sales and service-oriented, customer-focused force.

Through acquisition and company growth, it has positioned itself for increased
balance sheet strength and penetrate into new markets. In the 30th of September 2011,
the country's largest bank in terms of total resources, customer loans, total deposits and
assets under management is the BDO; becoming success in banking industry.

And lastly, the convenient services, convenience is one of the factors most
customers look upon specially in this time of pandemic, face to face transaction is not
on the options. However, BDO provide a way to make it easy for their clients to access
the product and services they offer. Digital banking propose the fastest, safest, and
easiest way to keep track of finances anytime, anywhere through personal device –
whether on mobile phone or laptop. This includes 24/7 access in the account, online
money transfer, bills payment, buying loads, ordering checkbooks, perform stop
payment on issued checks and money transfer local and international are the services
provided. In lined with this, BDO competency in adapting to changes improves as it
impressively abide with the situation of pandemic.

Weakness

The weakness of BDO is the limited international presence. Low number of

International branches of BDO limits the opportunity for growth and development of
the establishment. Even though BDO is one of the largest bank of the country, its
international opportunities are limited. Out of 16 international branches, only 2 from
the country of Hongkong and Singapore provide full services. More over remittance

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services are most used and operated to the international branches due to high demand
of Filipino overseas workers (OFW).

Opportunity

Expansion to foreign market, despite of limited opportunities for BDO in serving

international markets, it can be transformed into opportunities for the company. With
this, BDO can expand the company to foreign markets by taking advantage in the ASEAN
integration since global tie-ups can boost the bank’s presence abroad. Considering the
participation of the bank in annual ASEAN Corporate Governance Scorecard (ACGS)
assessment which is benchmarked against international corporate governance practices.
As for continued following best international practices issued by the globally recognized
standard leads to long term sustainability and resilience in the banking industry. This
opportunity will lead for more international expansion that will be used as the strength
of the company

Threat

Many competitors, competition in the industry are tight because even the non-
banking business offers services like what bank could provide. The competition threats
cater by non-banking and bank establishment are tight because of same product and
services provided nonetheless those are just medium threats because other channels
can't provide exact the same services like banks could offer. Just like credit card
services and accessible digital banking for customers are more favorable and
convenient. Those major competitors of the bank provide different customer services
orientation. However, the expansion of branches in BDO and convenience it can provide
for the customers cannot be replace by those substitute in the market.

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Company Analysis using PEST Analysis

Table 6: Thematic Results of PEST Analysis

Areas Themes

Political New policies implementation

Crime rate during Duterte's administration

Economic Money laundering and terrorist financing

COVID-19

Social Youth Population

Technological Cyber Crime

Digital banking

In political analysis, the Philippine government new implemented policies help to

strengthen the country's financial inclusion. And the crime rate in the Philippines has
decreased under Duterte's administration. Next economic analysis, the Philippines'
financial institution could be utilized for money laundering and terror financing. Also,
the COVID-19 Pandemic has a detrimental influence on the country's economy and
banking sector. The third one is social, as the youth population increases it is also
encouraging a shifting financial structure that is conducive to growth. And the youth
also become more aware in business aspect and banking. Lastly the technological, to
increase banking penetration in the country, digital banking would be used. During the
pandemic, cyber risks have increased in the country, and it will be threat in the
company.

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Financial Statement Analysis

Table 8: Results of Liquidity Analysis

Measure of Year 2020 Year 2019 Average

Liquidity

Current Ratio 1,090 1.090 1.0915

CA= 3,259,567 CA = 3,073,818

CL= 2,981,879 CL = 2,818,271

Quick Ratio 1.093 1.090 1.0915

CA= 3,259,567 CA= 3,073,818

CL= 2,981,879 CL= 2,818,271

Working Capital 277,688 255,547 226,617.50

CA= 3,259,567 CA= 3,073,818

CL= 2,981,879 CL = 2,818,271

As shown in the table 8, Current Ratio for Year 2020 is 1.093 and Year 2019 is
1.090 with their average of 1.0915. This means that Year 2020 have higher current ratio
with the ability to pay off short-term liabilities with current assets. Quick Ratio for Year
2020 is 1.093 and Year 2019 is 1.090 with their average of 1.0915. This means that Year
2020 have higher quick ratio with means the company has surplus cash. For working
capital, Year 2020 is 277,688 and Year 2019 is 255,547 with their average of 266,617.50.
Year 2020 has higher working capital which implies lower equity, lower risk and higher
profits.

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Table 9: Results of PROFITABILITY ANALYSIS

Measures of Profitability Year 2020 Year 2019 Average

Net Profit Margin 61.38 74.62 68

Return on Assets 0.8372 1.385 1.111

Return on Equity 7.189 11.918 9,5535

Return on Investment

Table 10: Result of Solvency Analysis

Measure of Year 2020 Year 2021 Average

Solvency

Dept Ratio 0.88 0.88 88

2,981,879/3,374,900 2,818,271/3,188,858

Equity Ratio 0.1164 0.1162 0.1163

393,021/3,374,900 370,587/3,188,858

Dept-to- Equity 0.7618 7.6389 4.20

Ratio
2,981,879/391,423 2,818,271/368,932

As shown in the table 10, Debt Ratio for Year 2020 is 0.88 and Year 2019 is 0.88,
as we can observe they have the same value. This means that both year, the company is
in a better position as it is able to meet its requirements out of its own funds. Equity
Ratio for Year 2020 is 0.1164 and Year 2019 is 0.1162 with their average of 0.1163. This
means that Year 2020 have higher equity ratio but they the difference is close to each
other. This implies that they have close claim of owners on total assets. For debt-to-
equity ratio, Year 2020 is 0.7618 and Year 2019 is 7.6389 with their average of 4.20.

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Year 2020 has lower debt to equity ratio which implies the company can resort to
external creditors for expansion.

Analysis of the Current Management Strategies

Table 11: Thematic Results of Analysis of the Current Marketing

Management Strategies

Management Function Themes

Formulating Strategies Enhancing Customer Experience

Planning Strategies
Organizing Strategies
Leading/Directing
Strategies
Staffing Strategies
Implementing Strategies
Controlling Strategies
Evaluating Strategies
Evolving Products and Services
Rationalizing the branch Network
Business activities
Compliance Programs
Code of business conduct and ethics
Formulating Concentrated Funds
Compliance with the laws and regulations
Responsible corporate citizen
Benefits Package
Gender Equality
Decent work and economic growth
Peace, Justice and Strong institution
Clean Water and Sanitation
Affordable and clean energy
Sustainables cities and communities
Responsible Consumption and Production
Peace, justice and strong institution
Partnerships for the goals

BDO Unibank Inc. formulating a strategies of enhancing customer

experience, evolving Products and services, and rationalizing the branch network
for them to widen their markets and make a more competitive edge among
competitors. Furthemore, to satisfy their customer's needs.

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BDO Unibank Inc. planning strategies is to have more business activities
that will encourage the clients. To conduct a program compliance to the goal of
the company. And to promote code of business conduct and ethics to be a good
examples in other businesses.
The leading/directing strategies of BDO is their responsible corporate citizen
and for always complying to the laws and regulations. Their staffing Strategies
are the benefits Package, gender equality, decent work, peace, and justice in the
corporate world. Which is their common competitive edge. They are also
implementing the strategies of protecting environment which includes clean water
and sanitation, affordable and clean energy and sustainable cities and
communities.
The COVID-19 pandemic has brought to light the importance of BDO's
digital platform investment plays an important role. During the lockdown in 2020,
it has force consumers to behave in a certain way. Helping accelerate the
transition to digital platforms for Personal banking services as well as business
banking services are available. Online transactions BDO took advantage of this
by pushing the use of digital banking as a substitute for traditional banking
consumer education through traditional means on the utilization of channels.

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Chapter 3

Management Strategy
This chapter presents the output of the strategic management analysis
which is the strategic management plan. In addition, this chapter will also present
the strategy implementation, conclusions, and recommendations of the
researcher.

Management Strategic Direction

Table 12: Strategic Directions of the Company for the Next 5 Years
Strategies
Formulating Strategies
Planning Strategies
Organizing Strategies
Leading/Directing
Strategies
Staffing Strategies
Implementing Strategies
Controlling Strategies
Evaluating Strategies
Strategic Directions
Sustaining Commitment
Convenient Banking
Expanding Target Market and Channel
Distribution
Promotional Bank
Formulating Concentrated Funds
Allocation of distribution network
ASEAN Integration Participation
Human Resources Efficiency
Outstanding Recruitment
Good Employee Reward Allocation
Technological Developments
Market Penetration
Horizontal Integration
Banking Network and Access
Economic Performance

The formulating strategies of BDO Unibank for the next 5 years are
the sustainability commitment and the widening organization and alignment.
Sustainability commitment referred to the United Nations Sustainable

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Development Goals in its sustainable development plan (SDGs). This included
products, contributions to sustainability, human capital, catastrophe response,
and governance. Anchored to Bank’s sustainability philosophy: “We seek to
achieve resilience by incorporating sustainability in the way we do business. We
aim to embed sustainability principles when making decisions, assessing
relationships, and creating products.”

Next, is the widening of organization and alignment. Over time, the

market's reach has expanded dramatically. This is accomplished through
establishing overseas offices and forming global partnerships. In terms of
combined resources, client loans, deposits, assets under management and
capital, as well as branch and ATM network nationally, BDO is the country's
largest bank as of 30 September 2021

The BDO strategic planning are the convenient bank which aims to offer
a wide array of innovative financial products and services, longer banking hours
and a Saturday banking experience. Next, the expanding target market and
channel distribution. Aside from ShoeMart (SM) suppliers and tenants, BDO
focuses on the retail market segment, whose banking needs are dictated by their
way of life. As a result, the development and expansion of distribution channels
to promote convenience banking via phone, branches, internet, ATMs,
convenience centers, and other means will be emphasized.

The third one is the promotional bank efforts concentration, whereby the
bank emphasizes constant prospecting, referrals, and a depositor-to-depositor
program. Interest rates on deposits will not change, and the fee-based business
will be examined, but set fees will be levied for each service. Branches will offer
products and will be positioned in key areas to reach the company's target
market. Furthermore, machines will link shopping and banking at mall branches
and convenience stores. This will also demonstrate the possibility of banking on

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a Saturday. The business environment will be highly convenient with the
development of technology, where they will be able to bank at any time.

The BDO Unibank organizing strategy are the formulating concentrated

funds in European companies and allocation of distribution network from
nationwide to worldwide. The leading/directing strategy of BDO Unibank for next
five years is there continues participation in ASEAN integration. This is more of a
focus to compete with its competitors, it must capitalize on its strengths and
improve its offerings. The primary argument is that BDO needs to improve its
quality. From 2011 to 2013, it performed exceptionally well financially. It is
expected to remain in place for a long time. On the operating side, the bank
faces numerous challenges in 2015. BDO, on the other hand, can compete with
foreign banks even while their home presence grows with the appropriate
strategy. It should be underlined that the bank must also be able to compete
worldwide; it now lacks this capability. More research on other banks is needed
to examine their various characteristics and establish the best method for dealing
with future ASEAN integration as well as globalization. BDO is currently working
to increase its competitiveness in little steps.

In the staffing strategy of BDO Unibank it includes the outstanding

recruitment planning, good employee reward allocation, human resources
efficiency which eligibility and credentials of the BDO teams and lastly, the
recruitment process, which human resource group will focus and initiate the
process of recruitment only to those applicants with skills and highly qualified to
occupy significant positions.

The implementation strategy of BDO Unibank are the technological

developments, market penetration which strengthening marketing strategies to
increase the presence in rural areas and the horizontal integration which
increase equity and asset that turns to capital adequacy growth. Controlling

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strategy of BDO Unibank for the next 5 years is the banking network and access
and lastly the evaluating strategy which is the economic performance.

Strategy Implementation

• Expansion of market share

• Pursuing long term capital growth
• Expansion of shares
• Implementation of training
• Participation in ASEAN integration
• Bank promotion
• Making great and appealing job posting for recruitment

Being one of the top players in the industry of banking it is not good to be
complacent especially when competition is always at its peak. Rivalry in banking
industry takes rapid development and may overtake BDO market share in a
snap. Increasing market share globally is the top priority to be able to increase
bank capitalization, address financial improvement and achieve the mission of
providing convenience thru banking and innovative products.

Investing in ASEAN integration by participating to enhance bank services

and focus in fostering their strength. This strategy formulates best edge to
compete with international banks and provide opportunity for expansion of the
target market, channel distribution and technology development. The fact that
BDO also bring promotional bank effort concentration through putting into
strategic location to be reach by its target market. This will also bring the idea of
associating shopping to banking by having opportunity to experience the
"Saturday banking". Moreover, BDO focuses on recruitment process as it is
ranked the number 5 biggest professional service providing network in the world.
The process has been thoroughly scrutinized and filtered the best of the best and
highly passed professionals that will fit the job. The company also provide equal
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benefits to each employee and training programs to increase productivity and
development of individual.

Conclusion

We there for conclude that market development is the most efficient option.
The second step is product development, and the third is market penetration.

First, BDO should focus more on market expansion plan to attract new
potent customers and raise revenues by establishing BDO branches in semi-
urban locations, large scale enterprises, and conducting business outside of the
country.

BDO should then plan through product development, upgrading their

products and services on a regular basis. By conducting research and
development to meet the wants and needs of customers.

Finally, BDO should increase their market penetration approach by

advertising on today's popular platforms, such as the internet and television
advertisements. Despite the fact that BDO is the country's largest bank and that
saving money is a requirement for most people, the bank needs boost its brand
recognition in order to expand its target market not only in the Philippines but
also internationally.

Having a thorough understanding of the market can have a significant

impact on the process of entering a foreign market. BDO must maintain or
enhance market share of its current product and services by combining pricing
methods, advertising, sales promotion, and other resources to continuously gain,
establish, and keep a competitive advantage over competitors.

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If BDO can successfully implement these three methods, it will undoubtedly
achieve its ultimate objectives and obtain, build, and maintain a competitive
advantage over its competitors.

Recommendation

Based on our group's analysis and strategy formulation. We suggested that

BDO concentrate on enhancing its intensive strategy. Market penetration, market
development, and product development are all examples of this.

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References
BDO Unibank Inc, (2021) Retrieved from https://www.bdo.com.ph/mobile/about-

bdo

BDO News and Articles, (2018) Retrieved from https://www.bdo.com.ph/news-

and articles/BDO-Corporate-Governance-Leadership-2018

Banco De Oro Support Topics, (2019) Retrieved from

https://www.bdo.com.ph/support-topics/corporate-information/what-bank-

products-and-services-are-offered-bdo

ASEAN Corporate Governance Scorecard, (2014) Retrieved from

https://www.sec.gov.ph/corporate-governance/asean-corporate-

governance-scorecard/

Glassdoor Banco De Oro Benefits and Perks, (2021) Retrieved from https://www.

glassdoor.com/Benefits/Banco-De-Oro-Philippines-Benefits

EI_IE42278.0,12_IL.13,24_IN204.htm

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