Bulacan State University

City of Malolos, Bulacan

GRADUATE SCHOOL

Case Study Analysis:

BRYN MAWR NATIONAL BANK

In partial fulfillment of the requirements for

BA 510: Decision Making and Business Policy Formulation

Prepared by:

ayn

Submitted to:

Prof. Jose Waldemar V. Valmores

July 15, 2023

 BRYN MAWR NATIONAL BANK

A. CASE BRIEF

Bryn Mawr National Bank is a bank whose main objective was to provide finest personal banking
services to the people of Bryn Mawr, located at the west of Philadelphia and adjoined by the towns
of Wynwood, Bala, Haverford, and Villanova. The bank was founded on October 1, 1965, by 17
wealthy town fathers whose main motive in establishing revolves around altruistic reasons, they
wanted to form a bank for the town. There were others who were profit motivated and the status
seekers, meant power and prestige.

The bank’s head office is housed in a comfortable rustic building which is conservative and secure
in appearance. Its location is easily accessible and is next to several free off the street parking
areas. Moreover, there are two conveniently located drive-up windows on the west side of the
building.

Aside from the head office, there are other five branches located in Wynwood, Bala, Haverford,
Villanova, and a branch on the western edge of the Bryn Mawr. These branches are in leased space
and in addition, all branches have automated teller machines (ATMs). Bryn Mawr National Bank is
a member of the Federal Deposit Insurance Corporation like its competitors.

The bank is interested in two target market segments: first, in household accounts of the town
residents and contiguous area and second, the small business in Bryn Mawr and surrounding
regions. The bank provides a full range of services and also offers three types of loans, which are
the consumer loan, real estate loan or mortgage on homes and land, lastly the loan involves
financing local businesses on a short-term or immediate-term basis that varies from 90 days to two
years.

The bank also utilized a variety of media for its promotional and marketing strategy and participates
in contribution and co-sponsoring local sporting or theatrical events and engages in the practice of
giving premium gifts for opening new accounts or substantially expanding current accounts.

The bank’s organizational structure has three senior officers that have more than twenty (20) years
of banking industry experience. These senior officers have bachelor's degrees in business
administration and all three have received advanced certification on completing prescribed banking
courses offered by the American Institute of Banking. The bank also has 12 junior officers, 7
supervisors, and 52 clerical/teller personnel. In the last three years, there is an average of 35%
turnover rate comparable to the experience of the other banks in the area.

By the end of 1981, the bank was able to reach its overall target of having $50,000,000 of total
deposits. However, there was a dramatic decline in the growth rate, in recent months the growth in
deposits has been less than in previous periods. Mr. John Fargo, the President of the bank was
concerned about the continued success of his bank due to changing competitive conditions in the
banking industry and its impact on the future profitability of the bank.

B. VIEWPOINT

The viewpoint of this analysis will consider the perspective of Mr. John Fargo, the President of Bryn
Mawr National Bank.
 C. TIME CONTEXT

The situation occurred in the early days of 1982 when Mr. Fargo was attempting to define the future
goals and strategy of the bank alongside the changing competitive conditions in the banking
industry in the local region.

D. STATEMENT OF THE PROBLEM

As the competitive conditions in the banking industry in the local region increases, how will Bryn
Mawr National Bank maintain its position in the market and remain competitive?

E. STATEMENT OF THE OBJECTIVES

1. To formulate an action plan for the sustainability of Bryn Mawr National Bank by the first quarter
of 1982.
2. To identify tactical approaches to maintain a strong position in the market over the competitors
by the second quarter of 1982.
3. To improve the bank’s performance in terms of asset expansion and deposit growth by at least
5% annually and by the end of the next fiscal year, 1982.
4. To reduce employee turnover to at least 25 percent refine the operations by the end of 1982.

F. AREAS OF CONSIDERATION

Internal areas of consideration

Finance

Bryn Mawr National Bank has presented success in terms of asset growth and deposit expansion
since its founding in 1965. The bank has earned profits every month since its eight months of
operation. While the amount of profits in some months is very low, some profit has been steadily
achieved since May 1966. In its sixteenth year of operation, the bank was able to reach its overall
target of having $50,000,000 of total deposits which was by the end of 1981.

By the end of 1981, installment loans totaled over $11.5 million, real estate loans were almost $2.5
million, and the financing loan to local businesses was up to several millions. The above-mentioned
type of loans was thought to be profitable.

Furthermore, in recent months the growth in deposits has been less than previous periods. The
sharp fall in the growth rate has been the management's concern on its possible impact on the
bank’s future profitability and due to the changing competitive scenarios.

Marketing

The bank utilizes a variety of media platforms: billboard advertising on heavily travelled highways
was thought to be an effective way to reach household accounts; radio advertising is being utilized
to reach both target markets and being done at the beginning of every month. The bank also
promotes through sending letters to businessmen every two months to “sell”: payroll accounting
services; checking accounts; or different types of loans available at the bank.

The bank also participates in contribution and co-sponsoring local sporting or theatrical events and
engages in the practice of giving premium gifts for opening new accounts or substantially expanding
current accounts.
 Human Resources

The bank has three senior officers that have more than twenty (20) years of banking industry
experience. These senior officers have bachelor's degrees in business administration and all three
have received advanced certification on completing prescribed banking courses offered by the
American Institute of Banking.

The organization also has 12 junior officers (including the five branch managers), 7 supervisors,
and 52 clerical/teller personnel in the bank. Seven female clerks are in bookkeeping, plus a
supervisor who has ten years of experience and is regarded very highly by the officers. Four of the
bookkeeping clerks have less than two years of experience, the third has over five years of
experience. All the seven tellers are female including a head teller at the main office. The tellers
are women in their late teens and early to middle twenties. There are also floaters who can fill in as
tellers when needed. Two clerks, including a first-line supervisor, compromise the savings group.
Five clerks plus a supervisor compromises the customer service group. Each branch has a manager
plus three tellers. Two branch managers are male while three are female.

For the last three (3) years, a high turnover rate among younger women averaged to 35% a year
due to various reasons such as leaving after their husband’s graduation and others leaving to
become a full-time housewife.

Operations

The office of the bank is housed in a comfortable rustic building which is conservative and secured
in appearance. The main building is situated in the downtown area of Bryn Mawr on the eastern
side. The area is very accessible and next to several free-off the street parking areas. The nearest
competition is about 300 feet away. As a conservative bank, Bryn Mawr is interested in two market
segments: the household accounts of residents of the town and contiguous area and the second is
the small businesses in Bryn Mawr and surrounding region. The bank believes they can provide a
full range of service without overtaxing its resources.

External areas of consideration

Economic

The average family income was over $39,000 in the year 1980. The businesses in the area are
largely clothing stores, automobile service stations, food chain and small outlets, commercial and
residential service establishments, restaurants and other eating establishments, motels, a television
station, other financial organizations, various department and household goods stores. There is
also some light manufacturing industry such as investment castings, hand tools, and small diameter
industrial tubing.

The largest industry in Bryn Mawr and the other surrounding towns is education, there are the Bryn
Mawr College, Haverford College, Woody Knoll, and Villanova University.

Throughout the local area, the small suburban town and country banks are continuing to merge
with the large country banks. The rationale for this has been the pressure exerted by the
stockholders of the country banks for the greater and more stable earnings and the need to compete
in serving the customer. Small banks have not been able to generate large earnings and do not
possess large financial resources. Banks in general have not generated high earnings, the city and
the country banks have achieved higher earnings than their smaller country counterparts.
Demographic

The area which the banks serve is predominantly residential and most of the homes are owner-
occupied. Bryn Mawr has a population of approximately 31,000 and it's about 47,000 if contiguous
towns are included. Bryn Mawr is an affluent bedroom community.

Technology

Automated Teller Machines (ATM) are present in the head office and all branches and the bank
also officers credit card services such as VISA and MASTERCHARGE.

Customers

The bank was established for the people of Bryn Mawr hence its primary customers are from the
stated town. Eighty percent (80%) of the Bryn Mawr National Bank’s deposit come from the area
made up of the town and another fifteen percent (15%) of the banks’ deposits come from the area
stretching as far west as Paoli, as far east as Philadelphia, as far north as the Schuylkill River, and
south to Chester. The remaining five percent (5%) come from through the eastern United States.

The bank is interested in two (2) market segments: first, the household accounts of the residents of
the town and contiguous area; second, the small businesses in Bryn Mawr and the surrounding
region. The management thought that the bank would be able to provide a full range of services to
those groups without overtaxing its resources.

Competitors

There are seven (7) commercial banks, one (1) savings bank, and one (1) cooperative bank in
addition to the Bryn Mawr National Bank.

All through the local area, small banks have not been able to generate large earnings and do not
possess large financial resources thus the small suburban town and country banks are continuing
to merge with large country banks.

SWOT Analysis

Strengths
● The bank has already established a strong business reputation given that it was already
established and in the banking industry for almost two (2) decades from 1965 to early 1982
(based on the time context of the case).
● The bank is in a moderately successful financial position in terms of asset expansion and
deposit growth. Furthermore, the bank has already been able to achieve its overall total deposit
target.
● The bank has a good strategic location. It is accessible and next to several free off-street
parking spaces and there are also two convenient drive-up windows that are situated in the
west side of the building.
● The bank provides a full range of services. It also offers three types of loans which include the
consumer loan – installment purchase of an automobile, boat, trailer, or other consumer durable
purchase, real estate loan or mortgage on homes and land, lastly, loans on financing local
business on short-term loans and intermediate-terms loans.
● The bank engages in a variety of marketing approaches, such as utilization of various channels
of media platform: billboard and radio advertising as well as business letters. The bank also
participates in contribution and co-sponsoring local sporting or theatrical events and engages
 in the practice of giving premium gifts for opening new accounts or substantially expanding
current accounts.
● The senior officers of the bank have outstanding academic profiles and profound experiences
in the banking industry.

Weaknesses
● The branches of the banks are leased rather than owned or purchased, the bank might be
paying large amounts of rent as in their administrative expenses.
● There was a high turnover rate of 35% among young women, as a result, the bank is
spending more on training and development.
● The bank has only two primary target markets; for household accounts of residents and for
small businesses in Bryn Mawr and surrounding areas. Additional target markets can
contribute more clients to the banks.
● There is a low Loan-to-Deposit ratio, the percentage of a bank’s loans that it funds with its
deposits. The ideal LDR is 80% to 90%, the bank's LDR is only around 30 to 35 percent. If
the ratio is too low, the bank may not be earning as much as it could be.

Opportunities
● The bank can expand in the educational institution as another target market since the
largest industry is education. Likewise, one branch is located near a light manufacturing
industry, it can also be a possible target market for the bank.
● The bank can also expand by establishing additional branches, which could be beneficial
to the clients. It can also draw in new clients if the branch is nearer. In addition, the location
of the bank serves residential and small businesses which can expand their services
beyond the town and surrounding areas.
● Managing the bank’s available resources efficiently, such as finances and human
resources can have a positive impact to the bank.
● Establishing loyalty and maintaining clients’ trust are important to every business, likewise
it could have a positive influence on the bank if it can support and serve its clients’ well.
● Possible venture on other financial services that can be both beneficial to the bank and to
clients.

Threats
● In the town of Bryn Mawr, there are existing competitors; there are seven commercial
banks, one savings bank and one cooperative bank.
● Merger of town country banks and large banks to have greater and more stable earnings
as well as the need to compete in serving customers.
● There has been an increasing trend toward bank holding companies.
● The bank should also monitor if there will be changes in the policies of the Central Bank.
● Current economic conditions and status should also be observed.
● High turnover rate of young women in the clerical/teller position in the last three years.

External Factor Evaluation (EFE) Matrix

Strategies may be summarized and assess economic, social, cultural, demographic, environmental,
political, governmental, legal, technological, and competitive information using an External Factor
Evaluation (EFE) Matrix. The biggest challenges and opportunities that the company is facing are
represented and ranked in this matrix. Table 1 shows the Bryn Mawr National Bank's EFE Matrix.
 WEIGHTED
KEY EXTERNAL FACTORS WEIGHT RATING
SCORE
OPPORTUNITIES
1. Create a larger market 0.11 3 0.33
2. Expansion by establishing additional branches 0.12 2 0.24
3. Additional services to offer to clients 0.12 2 0.24
4. Managing available resources efficiently 0.10 3 0.30
5. Establishing and maintaining clients' trust 0.13 4 0.52
6. Ventures on other financial services 0.05 1 0.05
THREATS
1. Existing bank competitors in the town 0.08 2 0.16
2. Merging of small and larger banks 0.06 1 0.06
3. Emerging bank holding companies 0.06 1 0.06
4. Possible changes in Central Bank Policies 0.03 1 0.03
5. Current economic conditions and status 0.04 1 0.04
6. Employee turnover rate of 35 percent 0.10 2 0.20
TOTAL 1.00 2.23
Table 1: External Factor Evaluation (EFE) Matrix for Bryn Mawr National Bank

Wherein:
a. A weight from 0.0 (low importance) to 1.0 (high importance) should be allocated to each key
factor. The number represents how crucial the aspect is for a business to succeed in a specific
industry. If there were no weights assigned, all the factors would be equally important, which is
an impossible scenario in the real world. The sum of all the weights must equal to 1.0.

b. The ratings in the external matrix indicate how effectively the company's current strategy
responds to the opportunities and threats. The numbers range from 4 to 1, where 4 means a
superior response, 3 - above average response, 2 - average response and 1 - poor response.
Ratings, as well as weights, are assigned subjectively to each factor. Note that both threats and
opportunities can receive a 1, 2, 3, or 4.

c. The score is the result of weight multiplied by rating. Each key factor must receive a score.
Total weighted score is simply the sum of all individual weighted scores. The firm can receive
the same total score from 1 to 4 in both matrices. The total score of 2.5 is an average.

Analysis of EFE Matrix

From the table presented above, it can be noted that the most important factor in the current situation
of Bryn Mawr National Bank is to establish and maintain clients’ trust as indicated by the 0.13 weight.
This indicates that the bank should take action to establish and maintain clients’ trust. Clients’ loyalty
and trust to the bank can be a competitive advantage. Likewise, clients are important and primary cause
for the bank to operate and maintain its market position.

However, note that the total weighted score is 2.23 which is below the average of 2.5. Although it may
be less than the industry average of 2.5, it still indicates the bank has a close chance to see the
opportunities and defend against threats. This shows the bank has a quite good external position overall
and still has room for improvement.
Internal Factor Evaluation (IFE) Matrix

This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the
functional areas of a business, and it also provides a basis for identifying and evaluating relationships
among those areas. Overall scores are used for further analysis, setting priorities for business plans
and strategic goals. The IFE matrix is also used to visualize the impact of internal factors on
organization. Table 2 represents the IFE Matrix of Bryn Mawr National Bank.

WEIGHTED
KEY INTERNAL FACTORS WEIGHT RATING
SCORE
Strengths
1. Established reputation 0.13 4 0.52
2. Moderately successful financial position 0.12 3 0.36
3. Strategic location 0.11 4 0.44
4. Wide range of services offered 0.10 3 0.30
5. Variety of promotional strategies 0.09 3 0.27
6. Leaders' competitive profile 0.07 3 0.21
Weaknesses
1. Leased spaces 0.10 2 0.20
2. High turnover rate of 35 percent 0.11 2 0.22
3. Few market segments 0.09 2 0.18
4. Low loan-to-deposit ratio 0.08 1 0.08
TOTAL 1.00 2.78
Table 2: Internal Factor Evaluation (IFE) Matrix for Bryn Mawr National Bank

Wherein:
a. The weight attribute in the IFE matrix indicates the relative importance of factors to being successful
in the firm’s industry. The weight ranges from 0.0 means not important and 1.0 means important, the
sum of all assigned weight to factors must be equal to 1.0 otherwise the calculation would not be
considered correct.

b. In IFE, rating is the way out to differentiate internal strengths and weaknesses. A 1-to-4 rating to each
factor indicates whether that factor represents a major weakness (rating=1), a minor weakness
(rating=2), a minor strength (rating=3), or a major strength (rating=4 ). Note that strengths must receive
a 3 or 4 rating and weaknesses must receive a 1 or 2 rating.

c. The score is the result of weight multiplied by rating. Each key factor must receive a score. Total
weighted score is simply the sum of all individual weighted scores. The firm can receive the same total
score from 1 to 4 in both matrices.

Analysis of IFE Matrix

According to the table, the "established reputation" factor, which has a 0.13 weight, is the most important
factor for determining the bank's current situation. This implies that the bank already has a name and a
solid reputation in the banking sector and that it is liked and trusted by its clients.

Moreover, the bank receives a 2.78 total weighted score, which is higher to the 2.5 average score. This
shows that while the bank has a strong internal position, there could still be opportunity for improvement.

SWOT MATRIX
Opportunities
1. Create a larger market
2. Expansion by establishing
additional branches
3. Additional services to offer to
clients
4. Managing available resources
efficiently
5. Establishing and maintaining
clients' trust
6. Ventures on other financial
services
Threats
1. Competition with other banks
2. Merging of small and larger banks
3. Emerging bank holding
companies
4. Possible changes in Central Bank
Policies
5. Current economic conditions and
status
6. Employee turnover rate of 35
percent
Table 3: SWOT Matrix for Bryn Mawr National Bank
Strengths
1. Established reputation
2. Moderately successful
financial position
3. Strategic location
4. Wide range of services
offered
5. Variety of promotional
strategies
6. Leaders' competitive profile
SO Strategies
Add an additional target
market, education sector for
example. (S1, S3, S4, S5, O1,
O2, O4, O5)
Develop new services that can
be offered to clients. (S1, S3,
S5, S6, O3, O5)
Establish an alliance with other
banks or financial services. (S1,
S2, O4, O6)
ST Strategies
Plan strategies to establish and
maintain clients' loyalty and
trust. Clients are important to
the operation of the bank. (S1,
S4, S5, O3, O5)
The bank has leaders with
broad experience in the
banking industry, to study on
the possible effect of the
increasing competitive
conditions. (S6, T1, T2, T3, T4,
T5, T6)
Weaknesses
1. Leased spaces
2. High turnover rate of
35 percent
3. Few market segments
4. Low ratio of loan to
deposit
WO Strategies
The bank can consider
the educational sector as
an additional target
market - largest industry
in the town. (W3, O1)
Additional services
offered to client can
possibly open additional
market reach. (W3, O3)
The bank to manage its
resources efficiently,
especially its expenses on
the leased spaces or if
the bank can afford to
put an additional branch.
(W1, O2, O4)
WT Strategies
Human Resources to
have a study and
research how to
minimize turnover rate.
High turnover rate can
affect the business
reputation in the long
run. (W2, T6)
Hire a new talent that
will focus on analyzing
the feasible market
segments. Likewise,
research on the possible
effect of the current
competitive conditions to
the bank. (W3, T1, T2,
T3)

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is a significant matching tool that

supports executives develop four types of strategies: SO (strengths-opportunities) Strategies, WO
(weaknesses-opportunities) Strategies, ST (strengths-threats) Strategies, and WT (weaknesses-
threats).
SO Strategies use a firm’s internal strengths to take advantage of external opportunities while WO
Strategies aim at improving internal weaknesses by taking advantage of external opportunities. ST
Strategies use a firm’s strengths to avoid or reduce the impact of external threats and WT Strategies
are defensive tactics directed at reducing internal weakness and avoiding external threats.

The objective of the matching tool is to generate feasible alternative strategies, not to select or
determine which strategies are best. Not all the strategies developed in the SWOT Matrix, thus, will be
selected for implementation.

G. ASSUMPTIONS

In this study, the case analyst assumes below:

a. The existing branches also has a good banking performance; however, these branches are
also affected by the high turnover rate.
b. There are no current changes on the Central Bank Policies.

H. ALTERNATIVE COURSES OF ACTIONS

1. Establish an alliance with larger banks.

2. Develop new services that can be offered to clients and to new feasible target markets.
3. Expansion by establishing new branches.

I. ANALYSIS OF ALTERNATIVE COURSES OF ACTIONS

1. Establish an alliance with larger banks.

Advantages:
a. There will be combined resources and expertise. Strategic alliance will enable sharing of both
institutions' resources and expertise. This can be a greater understanding of the services,
revenues, and marketing knowledge and proficiency to increase market reach.
b. Alliance with other banks will allow access to new markets. Likewise, there will be a possible
growth in acquiring alliances that can be helpful in gaining more edge among its competitors.
c. There will be potential concepts of fresh innovative ideas and perspectives. Through strategic
alliance it can surpass the competition with new solutions that can accommodate more the
needs of the clients.

Disadvantages:
a. Potential loss of control or ownership of the business. In addition, a strategic alliance requires
transparency, but trust cannot be built easily.
b. Possible conflict of objectives, policies and strategies that might result in disagreement of ally
banks.

2. Develop new services that can be offered to clients and to new feasible target markets.

Advantages:
a. Possible increase of revenues; new services offered will also provide potential revenue growth.
b. Offering new services helps the bank keep pace with the changing times, appealing to
customers depending on their needs.
c. By introducing new services, the bank will be able to cater the other needs of its existing and
potential clients.
d. Clients are more likely to accept new services that are being offered by an established bank
which will also provide additional revenue to the bank.
 e. Introducing new services may give an opportunity to the bank to differ from what is usual and
be more innovative in its operations through adjusting to more advanced ways of banking. This
can also be a competitive advantage among its competitors.

Disadvantages:
a. Developing new services can be uncertain and risky.
b. Development of products and services can be expensive especially if the bank will invest on
the processes such as market research and advertising.

3. Expansion by establishing new branches.

Advantages:
a. The bank can retain and gain new clients by opening a new branch. Numerous community and
professionals might bring in fresh clients. Accessibility has a chance to draw in new clients; the
closer the branch, the more convenient and reachable it will be.
b. Addition of a branch can have better benefits from expanding the banks’ visibility. Opening a
branch can offer visibility and brand exposure which can positively influence a banks’ revenue.

Disadvantages:
a. A branch expansion will require funds and other resources.
b. Branch expansion may come with difficulties. With the business growth, you may allocate loads
and assign management duties. These divisions between branches and duties may result in
compromised quality of service.

To further analyze the alternative courses of action mentioned above, the case analyst used the
Quantitative Strategic Planning Matrix (QSPM).

Wherein, Attractiveness Scores (AS) defined as numerical values that indicate the relative
attractiveness of each strategy in each set of alternatives. Attractiveness Scores (AS) are determined
by examining each key external or internal factor, one at a time, and asking the question “Does this
factor affect the choice of strategies being made?” If the answer to this question is yes, then the
strategies should be compared relative to that key factor.

Specifically, Attractiveness Scores should be assigned to each strategy to indicate the relative
attractiveness of one strategy over others, considering the factor. The range for Attractiveness Scores
is 1 = not attractive, 2 = somewhat attractive, 3 = reasonably attractive, and 4 = highly attractive.

Total Attractiveness Scores (TAS) are defined as the product of multiplying the weights by the
Attractiveness Scores in each row. The Total Attractiveness Scores indicate the relative attractiveness
of each alternative strategy, considering only the impact of the adjacent external or internal critical
success factor. The higher the Total Attractiveness Score, the more attractive the strategic alternative
(considering only the adjacent critical success factor).

The Sum Total Attractiveness Scores (STAS) reveal which strategy is most attractive in each set of
alternatives. Higher scores indicate more attractive strategies, considering all the relevant external and
internal factors that could affect the strategic decisions.
 STRATEGIC ALTERNATIVES
1 2 3
Developing new
QUANTITATIVE STRATEGIC PLANNING services that can
Establish an Expansion by
MATRIX (QSPM) be offered to
alliance with establishing new
clients and to
larger banks branches
new feasible
target markets
KEY FACTORS Weight AS TAS AS TAS AS TAS
Opportunities
1 Create a larger market 0.11 3 0.33 4 0.44 3 0.33
Expansion by establishing
2 additional branches 0.12 2 0.24 2 0.24 4 0.48
Additional services to offer to
3 clients 0.12 3 0.36 4 0.48 2 0.24
4 Managing available resources 0.10 3 0.30 4 0.40 3 0.30
Establishing and maintaining
5 clients' trust 0.13 3 0.39 3 0.39 3 0.39
Ventures on other financial
6 services 0.05 4 0.20 4 0.20 3 0.15
Threats
Existing bank competitors in the
1 town. 0.08 4 0.32 4 0.32 3 0.24
2 Merging of small and larger banks 0.06 4 0.24 3 0.18 2 0.12
Emerging bank holding
3 companies 0.06 4 0.24 3 0.18 2 0.12
4 Changes in Central Bank policies 0.03 1 0.03 1 0.03 1 0.03
Status of the economy or
5 economic conditions 0.04 1 0.04 1 0.04 1 0.04
Employee turnover rate of 35
6 percent 0.10 2 0.20 1 0.10 1 0.10
1.00
Strengths
1 1. Established reputation 0.13 3 0.39 4 0.52 3 0.39
2. Moderately successful financial
2 position 0.12 2 0.24 3 0.36 3 0.36
3 3. Strategic location 0.11 2 0.22 4 0.44 3 0.33
4 4. Wide range of services offered 0.10 3 0.30 4 0.40 4 0.40
5. Variety of promotional
5 strategies 0.09 2 0.18 4 0.36 3 0.27
6 6. Leaders' competitive profile 0.07 2 0.14 4 0.28 3 0.21
Weaknesses
1 1. Leased spaces 0.10 1 0.10 1 0.10 1 0.10
2 2. High turnover rate of 35% 0.11 2 0.22 2 0.22 2 0.22
3 3. Few market segments 0.09 4 0.36 4 0.36 3 0.27
4 4. Low ratio of loan to deposit 0.08 2 0.16 2 0.16 2 0.16
Sum of Total Attractiveness
Score (STAS) 1.00 5.20 6.20 5.25
Table 4: QSPM of Bryn Mawr National Bank

J. CONCLUSION

Based on the above three alternatives for Bryn Mawr National Bank to consider, the second alternative
course of action got a sum of total attractiveness score of 6.20 which means that the analysis indicates
the bank should develop new services that can be offered to clients and to new feasible target markets.

By implementing this alternative course of action, several advantages can be possibly gained, such as:
First, possible increase of revenues since new services will also provide potential revenue growth.
Second, offering new services will help the bank to keep pace with the changing times, serving the
clients varying by their needs.

Furthermore, clients are more likely to accept new services that are being offered by an established
bank which will also provide additional revenue to the bank. Finally, introducing new services may give
an opportunity to the bank to deviate from what is usual and be more innovative in its operations through
adapting more advanced ways of banking. This can also be a competitive advantage among its
competitors.

To summarize, it is always preferable to weigh the risks and benefits of business expansion. The
business must conduct thorough study based on verified data and facts. Businesses must be adaptable
and flexible, and prepared to modify strategies, initiatives, and expectations as necessary. The
organization will be able to respond to the challenges by being adaptable flexible and open to changes.
.

K. PLAN OF ACTIONS

FUNCTIONAL AREAS ACTIVITIES TIME FRAME

Take lead in conducting market research, by
delegating a group of talents that will take charge.
Develop, decide, and implement detailed strategies
First quarter of
Top Management and suggestions for the launch of the new services to
the year
clients.
Delegate tasks to other bank officials to be able to do
the appropriate actions with their expertise and skills.
Develop and formulate new services that can be First quarter of
Research and Development
offered to the existing clients and new target markets. the year
Plan for the budget to be used in launching the new
services and new target markets.
Second quarter
Finance and Accounting Plan for the best profitable way of introducing the new
of the year
services to be able to obtain a low-risk investment but
with the highest possible return to the bank.
Promote new services in the market, maximizing the
available resources.
Create a marketing and sales strategy to enhance the
bank's reputation and pique the interest of new clients Second quarter
Sales and Marketing
and investors in the bank's services. of the year
Develop strategies to be able to reach new possible
clients in the identified feasible additional target
market.
To communicate to the team the new services offered Second quarter
Operations
and to highlight the value and benefits to the clients. of the year
Develop a training guide/plan for the employees who Second quarter
Human Resources
will be assigned on the service expansion. of the year
Top Management, Leaders,
Checking and monitoring of progress. Monthly
Senior Officers

**Full implementation of new services to offer to existing and new clients will be by the start of the third
quarter of 1982.