ROVELYN D.

MARAORAO
Prof. Janessa G. Pilar,LPT,MBA,DBA,TMI
MBA 123 (Financial Management)

Land bank-DBP merger completed by November – DOF

Instruction:

This is an individual submission. Critique on this article by weighing the potential advantages and disadvantage of
such actions. Further, formulate a plan of sustainable action.

Potetial Advantages:

 The merge bank will be a stronge financial organization because of its combined assets and resources and they
more likely to have financial stability and will help to support economic growth projects, provide loans to various
sectors, and contribute to overall economic activity.
 Since they are merge bank, their cost also is being merge. As we all know that in a company minimizing cost is
very essentials. It is a good idea to have a minimize cost to improve the merge bank operation.
 The merge bank will provide a better services. Since the two banks has its own services and being merge now
which means it will give more services to the customers. And this better services being provide will give more
satisfactions to the public and eventually give a good result to economic growth.
 Being merge means becoming one. As we all know two brains are better than one , which means better plan will
be made, better ideas and more ideas are being raised and more options to choose and better results are
coming. Combining the strengths and capabilities will increase the ability to meet financing demands of different
institutions and will eventually give good impact to economic growth.

Potential Disadvantages:

 Possible conflicts may arise. Since they are merged now, though better ideas may arise but conflicts of ideas are
present. It might be these ideas are better to the LBP but not applicable to DBP. And planning and ideas
deliberation will be affected and better results will be lengthen.
 Possible lay offs of workers because the merger banks may restructure their the task and prevent redundancies
in the institutions to minimize cost,which may result in job losses or reductions in workforce. Although employees
are being paid to the effort to limit the effects on employees. This is very difficult to the part of the people
involved, their families, and the neighborhood.
 The relationship of existing client will be endangered or disrupt. Since the merge banks has already a good
relations with its client it may be affected with their new setup or situations and this can affect to the good
relations to their clients.
 Their will be a great a loss to the merge banks if they wont succeed in the future. And this loss has big impact to
the economic activity as it they are being merge and big institutions now is facing failure. It is very hard to stand
again specially now facing bankruptcy. How they will survive since the merge banks facing this situations.

Formulate a plan of sustainable action

For me, merging two banks is not that easy. It is very crucial to the point that many things are need to be considered.
Knowing the advantages and disadvantages to it, it is crucial to the part of merging banks to operate. It is important to
plan the cost to its minimum because cost can affect the operation of the organization. The skills, knowledge, talents
and capabilities of its employees should be use wisely, efficient and effective. Thus their performance will give impact
to the organizations. Appreciating and recognizing this good employees will lead to a maximum output operation of the
organization. It also vital to maintain an good relationship to the clients, either big or small, or from LBP or DBP clients.
Having a good relationship to them will help to operate smoothly and may bring productivity of the organization and
also to economic activity.