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Conclusion

Metrobank is indeed one of the superior banking institutions in the country. It is truly a dependable and stable bank proven by its 48 years of existence. However, the tight competition Metrobank is facing with other banks especially Banco de Oro (BDO) and Bank of the Philippine Islands (BPI) makes consumers get confused on which bank they would invest their money. We, the researchers, have carefully evaluated internal and as well as external factors that would affect the company either positively or negatively. And with these thorough investigations and researches, we arrive at recommended strategies for the company. Furthermore, with the proper implementation of these strategies and proposals, can help Metrobank to have an edge over the other competitors and solely be a best bank serving the consumers in the Philippines.

Controls

            The following activities would be carefully observed for the attainment of the plans and objectives:

<!—[if !supportLists]—>1.        <!—[endif]—>Re-assessment of the primary bases of the organization’s strategy.

<!—[if !supportLists]—>2.        <!—[endif]—>Evaluating the organizational performance which involves comparing expected results to actual results, considering deviations from plans, evaluating individual performance, and examining growth to achieve stated objectives.

<!—[if !supportLists]—>3.        <!—[endif]—>Taking counteractive actions if necessary, it is needed if some changes occur in the company and it requires making changes to not suitable to present strategies now.

Strategy Recommendation

The bank’s strategic goal is to gain the position of being the superior banking institution in the Philippines through providing an improved quality services to customers.

Based on the careful evaluation of strategy formulation, Metrobank’s strategic marketing, management and financial objectives are as follows:

Marketing Objectives

<!—[if !supportLists]—>v  <!—[endif]—>To provide a more effective distribution

<!—[if !supportLists]—>v  <!—[endif]—>To attain customer loyalty

<!—[if !supportLists]—>v  <!—[endif]—>To improve quality service

<!—[if !supportLists]—>v  <!—[endif]—>To improve brand equity

<!—[if !supportLists]—>v  <!—[endif]—>To  increase market share

<!—[if !supportLists]—>v  <!—[endif]—>To have a more effective promotional activity

Management Objectives

<!—[if !supportLists]—>v  <!—[endif]—>To involve lower level management in making decisions

<!—[if !supportLists]—>v  <!—[endif]—>To maintain and improve employees’ productivity 

Financial Objectives

<!—[if !supportLists]—>v  <!—[endif]—>To preserve the company’s solvency and especially its liquidity

<!—[if !supportLists]—>v  <!—[endif]—>To increase total assets and deposits

<!—[if !supportLists]—>A.     <!—[endif]—>Strategy 1

Market Development - This strategy involves action extended banking hours and days, promotions that would create alliances with Ayala Malls and would provide convenience to its clients.

<!—[if !supportLists]—>1.     <!—[endif]—>Proposed extended working hours and days

This strategy will give an edge over the other banks that have usual banking hours and days. It would give more time to the customers and clients to have transaction with Metrobank any day they wish.

<!—[if !supportLists]—>2.     <!—[endif]—>Proposed promotions in Ayala Malls

A 5% rebate on all items in Landmark with a minimum purchase of P5,000.   This will help to increase the sales of Landmark; on the other hand,        Metrobank would also have the opportunity to increase their credit cards          sales.

<!—[if !supportLists]—>3.     <!—[endif]—>Increase deployment of ATM’s

Deploying additional ATM’s to different locations including rural areas will give convenience to its clients and will help in improving and promoting brand image and awareness to those areas.

<!—[if !supportLists]—>B.     <!—[endif]—>Strategy 2

Market Penetration – In this action, it would benefit the company by having more customers by giving lower interest rates compared to other banking institutions and doing promotional activities like TV advertisements and broadsheets.

<!—[if !supportLists]—>1.     <!—[endif]—>Lower interest rates of loans to SME’s

Reduction of interest rate will help the bank penetrate the market by attracting small and medium enterprises.

<!—[if !supportLists]—>2.     <!—[endif]—>Extensive promotional activities

Metrobank should enhance their marketing efforts through widespread promotions and advertisements of the products and services they offer to the market. They should invest in promotions in order to achieve brand awareness and brand recognition. Advertising includes broadsheets, TV and radio advertisements through different stations and networks in the country should be implemented.

<!—[if !supportLists]—>C.      <!—[endif]—>Strategy 3

Product and Service Development - seeking to bigger sales by improving present service or enhancing customer relation. The increase in customer satisfaction will translate to loyalty that can result in higher customer retention and growing franchise value for Metrobank. Product and service development is one of the factors that separate one bank to other banks even thought their products offers are almost the same.

<!—[if !supportLists]—>1.     <!—[endif]—>Proposed job enrichment

Interactive workshops and training seminars will provide job enhancement for their employees and will pursue professionalism to achieve customer satisfaction. 

<!—[if !supportLists]—>2.     <!—[endif]—>Extended banking hours and days

It will help Metrobank to be more competitive over the other banks by           having an income even without introducing new products to the market. This      will give customers a choice and satisfaction to transact with them even      weekend since there are circumstances those time lags occur especially         during payroll period.

QSPM

Ranking:

            4 = not acceptable

            3 = possible acceptable

            2 = probably acceptable

            1 = most acceptable

            0 = not relevant

Analysis:

            Based on the Quantitative Strategic Planning Matrix, the total attractiveness scores of Market Penetration, Market Development and Product and Service Development are 6.26, 6.92, and 5.14 respectively. The highest strategy is the Market Development which implies that it is the most attractive strategy and will possible be the effective strategies recommended for Metrobank. 

Overall Summary of Strategy Formulation

TOWS

Analysis:

            The following strategies are recommended based on the evaluation of the Threats, Opportunities, Weaknesses, and Strengths (TOWS).

<!—[if !supportLists]—>·         <!—[endif]—>Marketing Penetration strategy seeks to increase market share for present products or services in markets by performing better marketing efforts. This type of strategy consists of increasing the number of productive workers, doing extensive promotional activities, and other activities that would help the company attain greater market share. 

<!—[if !supportLists]—>·         <!—[endif]—>Market Development strategy involves offering their present products or services in new markets. The company must execute activities like extending the banking hours for more resourceful daily dealings with the customers and proposing promotion as well as having an alliance with other companies. 

<!—[if !supportLists]—>·         <!—[endif]—>Product and Service Development strategy usually involves critical research and a huge amount of allowance for development expenses. This strategy may include training of employees to increase productivity and extending the banking hours to a more efficient way of serving the customers. 

IE

Analysis:  

            The Internal-External Matrix is based on the total weighted scores of External Factor Evaluation Matrix and Internal Factor Evaluation Matrix. The total weighted score of EFE Matrix is 3.36 and for IFE, 2.67. The intersection of their total weighted score falls in cell number II which is described as grow and build. Intensive (market penetration, market development. diversification and product development) or integrative (backward integration, forward integration and horizontal integration) are the commonly employed strategies for these types of division.

 GSM

Analysis:

            The following strategies are recommended based on the result of the Grand Strategy Matrix (GSM).

<!—[if !supportLists]—>·         <!—[endif]—>Market Penetration strategy which seeks to increase the market share for present products in the present market.

<!—[if !supportLists]—>·         <!—[endif]—>Market Development strategy which introduces the present product in new geographic areas.

<!—[if !supportLists]—>·         <!—[endif]—>Product Development strategy which seeks to increase sales by improving or modifying the present products.

<!—[if !supportLists]—>·         <!—[endif]—>Forward Integration which means gaining ownership or increased control over distributors or retailers.

<!—[if !supportLists]—>·         <!—[endif]—>Horizontal Integration which means control or merger with competitors.

SPACE

BCG Analysis

<!—[if !supportLists]—>·         <!—[endif]—>Stars – having a large market share, Remittances contribute to economic growth of the Philippines and to the livelihoods of people.

<!—[if !supportLists]—>·         <!—[endif]—>Cash Cows – are the deposits that help Metrobank gain lots of profit, which helps the bank to be balanced. As of 2009 Metrobank is the second largest in terms of deposit

<!—[if !supportLists]—>·         <!—[endif]—>Question Marks – the loan or the money borrowed and it is usually paid with interest. There is an increasing amount of debtors that’s why Metrobank should centralize on improving their loan rates, to have a chance of growth in loan.

<!—[if !supportLists]—>·         <!—[endif]—>Dogs – life insurance that is to be paid by a beneficiary when the insured dies. It has a low market share because there is insufficient number of customers who invest in the said insurance. 

Analysis:  

            Based on the above result, Metrobank should be more aggressive in order for them to maintain their position. Metrobank’s directional vector is located in the Aggressive quadrant (upper-right quadrant) of the SPACE Matrix. Hence, Market Penetration, Market Development, Product Development, Backward Integration, Forward Integration, Horizontal integration, or joint ventures are recommended strategies for Metrobank.

CPM

We have identified three main competitors of Metrobank in order to evaluate and compare its external and internal factors from the others.

EFE

Ranking:

            4 = the response is superior

            3 = the response is above average

            2 = the response is average

            1 = the response is poor

Analysis:     

            External Factor Evaluation (EFE) Matrix is based on the evaluation of the external factors, either opportunities to the company or threats, which would affect Metrobank. The result of the EFE Matrix is 3.36 and evaluating that, Metrobank’s current competitive position is above average and close to that of being superior. And for that, we can say that Metrobank has been effectively dealing well with the factors which can positively or adversely influence the company’s position in the banking industry.

Porters

Porter’s five forces of framework determine the factors in the local banking industry affecting operations, process and outputs.

IFE

Ranking:

            4 = major strength

            3 = minor strength

            2 = major weakness

            1 = minor weakness

Analysis:

            Based on the Internal Factor Evaluation (IFE) Matrix, Metrobank achieve a score of 2.67, this signifies that the company has good and steady internal position. The effective management system of the Metrobank largely contributes to the overall good position of the company in the banking industry. Consistent of being a dependable financial service provider and being known to serve customers well are just some of the strengths of Metrobank.

            On the contrary, the company should strategize in order to cope up with the weakness. Metrobank should pin point out what they can do about the limited banking hours and days and to provide lower interest rate to their clients.

Bargaining Power of the Suppliers

<!—[if !supportLists]—>1.     <!—[endif]—>BSP (Bangko Sentral ng Pilipinas)

        The Bangko Sentral has supervision over the operations of banks and exercises such regulatory powers as provided in the New Central Bank Act and other pertinent laws over the operations of finance companies and non-bank financial institutions performing quasi-banking functions. The BSP’s primary objective is to maintain price stability conducive to a balanced and sustainable economic growth. The BSP also aims to promote and preserve monetary stability and the convertibility of the national currency.

<!—[if !supportLists]—>2.     <!—[endif]—>PDIC (Philippine Deposit Insurance Corporation)

            Philippine Deposit Insurance Corporation has the authority to determine which deposit products are covered by insurance. The PDIC is also authorized to conduct independent special examination of banks and may inquire into or examine deposit accounts of ailing banks in the event there is a finding of unsafe and unsound banking practices.

<!—[if !supportLists]—>3.     <!—[endif]—>Other Suppliers 

      The suppliers of Metrobank are also composed of suppliers of pass book, ATM machines, ATM cards, deposit slips and withdrawal slips. These suppliers provide essential materials to Metrobank for their daily transactions with their clients.

Industry Competitors

<!—[if !supportLists]—>1.     <!—[endif]—>Bank of the Philippines Island (BPI)

            Bank of the Philippines Island (BPI) is the third largest bank in the Philippines which is also a local universal bank. 

<!—[if !supportLists]—>2.     <!—[endif]—>Banco de Oro (BDO)

            Banco de Oro is a commercial and the leading local universal bank in the

Philippines.

<!—[if !supportLists]—>3.     <!—[endif]—>Land Bank of the Philippines

            Land Bank of the Philippines is a government-owned, local universal bank. 

New Entrant in the Market

Sterling Bank of Asia

            Sterling Bank of Asia is a savings bank established in February, 2007 by successful businessmen and entrepreneurs and run by seasoned professional bankers to offer world class and professional level of service. In all its business lines, Sterling Bank aims to customize solutions and execute these with the highest service levels.

Bargaining Power of the Buyers

<!—[if !supportLists]—>1.     <!—[endif]—>Kids and Adults

            Person of any age can open an account in banks. Even minor or adults can have their account by the authorization of their parents or guardian.

<!—[if !supportLists]—>2.     <!—[endif]—>Local and Foreign Investors

            Investments are always a part of the bank transactions and enlargement of profit. Attracting investors to put money in exchange for potential profitable returns, as interest or income provides continuous operations. 

<!—[if !supportLists]—>3.     <!—[endif]—>Students

Students have their accounts either for educational or personal purposes.

<!—[if !supportLists]—>4.     <!—[endif]—>Professionals

These professionals constitute the biggest percentage of clients of a bank.

Substitute Products

<!—[if !supportLists]—>1.     <!—[endif]—>Loan Shark

            A loan shark is a person or body that offers unsecured loans at high interest rates to individuals, often enforcing repayment by blackmail or threats of violence.

<!—[if !supportLists]—>2.     <!—[endif]—>Pawnshop

            A pawnshop is an individual or business that offers secured loans to people, with items of personal property used as collateral.

<!—[if !supportLists]—>3.     <!—[endif]—>Black Market

            The black market (sometimes known as underground or black economy) is trade, goods and services that are not part of the official economy of a country; this may be legal activities where taxes are not paid, or illegal activities, such as drug dealing and prostitution.

<!—[if !supportLists]—>4.     <!—[endif]—>Cooperative

            A cooperative (also co-operative; often referred to as a co-op) is a business organization owned and operated by a group of individuals for their mutual benefit. A cooperative may also be defined as a business owned and controlled equally by the people who use its services or by the people who work there. 

Bank of the Philippine Islands (BPI)

The Bankof the Philippine Islands or BPI is the oldest bank in the Philippines still in operation and is the third-largest bank in the country in terms of assets, third only to Metrobank and second to Banco de Oro Universal Bank. BPI still holds the record as the Largest Bank in terms of market capitalization in the Philippines (P173 billion = US$3.604 billion as of December 2006). The most profitable bank in the Philippines consistently. It is owned by the Ayala Corporation and is based in Makati City’s Central Business District, on the corner of Ayala Avenue and Paseo de Roxas, across from the Philippine headquarters of HSBC.

Banco de Oro Universal Bank (BDO)

Another main competitor of Metrobank, Banco de Oro (BDO), is a 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 December 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.

Land Bank of the Philippines

Land bank of the Philippines is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen. While it provides the services of a universal bank, it is officially classified as a “specialized government bank” with a universal banking license. Land Bank is the fourth largest bank in the Philippines in terms of assets and is the largest government-owned bank. It is also one of the biggest government-owned and/or controlled corporations in the Philippines.

Ranking:

            4 = major strength

            3 = minor strength

            2 = major weakness

            1 = minor weakness

Analysis:

          Based on the result of the Competitive Profile Matrix (CPM), it shows the very tight competition Metrobank is facing with Banco de Oro and Bank of the Philippine Islands respectively. It can be noted that there is only few weak points in some areas of Metrobank which can be further improved if the company would just notice the shortcomings and take several actions to fill up those shortcomings. For example, Metrobank can enhance more its popularity by doing advertisement like TV ads. But this is just a minor factor because a bank needs not to be advertised because it is a common knowledge to people and Metrobank has its popularity for being prominent in the banking industry. Another thing that Metrobank must improve is the modern technology of doing daily transactions to customers. BPI initiated the use of express deposit machines wherein the customers can easily deposit cash without the use branch tellers and, thus improve efficiency of daily dealings with clients.

/sp

Product Lines

<!—[if !supportLists]—>a.  <!—[endif]—>Product Lines

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.

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

Let Metrobank help grow your business by providing the funding you need to reach your goals.

TRADE PRODUCTS & SERVICES

Metrobank has a complete array of facilities which will meet all your requirements.

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.

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.

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.

CAPITAL MARKETS

First Metro Investment Corporation is the investment banking arm of METROBANK (Metropolitan Bank & Trust Co.) — the largest universal bank in the Philippines. First Metro holds the distinction of being the only public listed investment house among the 44 member institutions of IHAP (Investment House Association of the Philippines).

Personal

CAR AND HOUSING LOANS

Metrobank offers convenient and affordable products to help build your house, buy a car or bridge your cash needs.

MOBILE BANKING

Metrobank mobile banking gives you access to do your banking transactions through your mobile handset.

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.

PERSONAL ACCOUNTS

Metrobank offers you a variety of deposit products that helps you save for your future needs.

PERSONAL INSURANCE

For your peace of mind, Metrobank Group offers life insurance products through our subsidiary, AXA Philippines, 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.

PHONE BANKING

Metrophone offers banking convenience in the comforts of your home or office. 

TRAVELING

Metrobank offers a variety of products that makes your travel experience convenient and worry-free.

<!—[if !supportLists]—>a.  <!—[endif]—>Product Lines

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.

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

Let Metrobank help grow your business by providing the funding you need to reach your goals.

TRADE PRODUCTS & SERVICES

Metrobank has a complete array of facilities which will meet all your requirements.

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.

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.

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.

CAPITAL MARKETS

First Metro Investment Corporation is the investment banking arm of METROBANK (Metropolitan Bank & Trust Co.) — the largest universal bank in the Philippines. First Metro holds the distinction of being the only public listed investment house among the 44 member institutions of IHAP (Investment House Association of the Philippines).

Personal

CAR AND HOUSING LOANS

Metrobank offers convenient and affordable products to help build your house, buy a car or bridge your cash needs.

MOBILE BANKING

Metrobank mobile banking gives you access to do your banking transactions through your mobile handset.

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.

PERSONAL ACCOUNTS

Metrobank offers you a variety of deposit products that helps you save for your future needs.

PERSONAL INSURANCE

For your peace of mind, Metrobank Group offers life insurance products through our subsidiary, AXA Philippines, 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.

PHONE BANKING

Metrophone offers banking convenience in the comforts of your home or office. 

TRAVELING

Metrobank offers a variety of products that makes your travel experience convenient and worry-free.

a.  Corporate Officers

Board of Directors

GEORGE S.K. TY
Group Chairman

 ANTONIO S. ABACAN, JR.
Chairman

FRANCISCO C. SEBASTIAN
Vice Chairman

ARTHUR V. TY
Director / President

REMEDIOS L. MACALINCAG
Independent Director

RENATO C. VALENCIA 
Independent Director

VALENTIN A. ARANETA
Independent Director

EDMUNDO A. GO
Director

AMELIA B. CABAL
Director

FABIAN S. DEE 
Director

DAVID GO
Director

VY TONNE SO
Director

 ALFRED V.  TY 
Corporate Secretary

MARIQUITA L. AGENA
Assistant Corporate Secretary

Board of Advisers

PLACIDO L. MAPA, JR. 
Chairman, Board of Advisers

JAMES GO
Vice Chairman

GABRIEL CHUA
Vice Chairman

HENRY M. SUN
Adviser

CORNELIO C. GISON
Adviser

TAN TIAN SIONG
Adviser

PASCUAL M. GARCIA III
Adviser

ROBERT JUANCHITO T. DISPO
Adviser

DAVID T. GO
Adviser

 DAVID CHUA
Adviser

Senior Advisers

WASHINGTON SYCIP
Chairman

HON. FIDEL V. RAMOS
Senior Adviser

HON. ARTEMIO V. PANGANIBAN
Senior Adviser

DR. DAVID K.P. LI
Senior Adviser

DR. CHARLES CHEUNG
Senior Adviser

Senior Vice Presidents 

MARIQUITA L. AGENA

Treasury Group

MARITESS ANTONIO

Internal Audit Group

MARIA CHRISTINA A. BAUTISTA 

Domestic Subsidiaries Division

CHRISTINE Y. CARANDANG 

Acquired Assets Management & Disposition Group

JOSE M. CHAN, JR. 

Corporate Banking Group

FERMIN T. CHIO 

Branch Lending Group

HELEN U. FARGAS 

Metro Manila Branches Group

ELIGIO C. LABOG, JR. 

Branch Lending Group

ANGELICA H. LAVARES 

Compliance Unit

REYNALDO H. LIAO 

Metro Manila Branches Group

CESAR L. LUGTU 

Special Account Management Group

EDGARDO C. MARQUEZ 

Countryside Branches Group

CORAZON MA. THERESE B. NEPOMECENO 

Credit Group

ROWENA D. OLIVEROS 

Consumer Lending Group

RICHARD S. SO 

International Offices and Subsidiaries Group

MARY W. SY 

Metro Manila Branches Group

JOSEFINA TUPLANO

Treasury Sales Division

JOSE RAYMUND VERGARA

Information Technology Group

ADRIAN FRANCISCO VILLANUEVA

General Services Group

AMELIN YAO

Branch Lending Center - Manila

First Vice Presidents

LUZ I. BLANCO

International Operations Division

MAURICIO M. CHIONG

Countryside Branches Group

GODFREDO CRUZ

Branch Lending Center - South Luzon

MARY BECK DY

Center Head

EDGAR ESGUERRA

Conglomerates Division

DOMONGO GO

Equity Investment Department

EMMELINE GO

Center Head

AVA MARIE IGNACIO

Institutional Accounting Division

ALEX LIM

Managing Director

ALFREDO LIM

Area Head

IRENE LIM

Area Head

QUINTIN JR. MEDRANO

Branch Operations Control Division

DENNIS QUA

Foreign Exchange Division

WILLIAM RASINES

Center Head

ROSENDO SIA

Region Head

LUCIA TIU

Branch Lending Center - VisMin

BERNARDO TOCMO

Region Head

LEOPOLDO UBALDO

Branch Lending Center

Corporate Profile

Metropolitan Bank and Trust Company

Founded in September 5, 1962, Metropolitan Bank & Trust Co. (Metrobank) has since become the premier universal bank and among the foremost financial institutions in the Philippines.  It offers a full range of banking and other financial products and services, including corporate, commercial and consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking.  Metrobank currently spans a consolidated network of over 1,200 ATMs nationwide; over 730 domestic branches; and 42 foreign branches, subsidiaries, and representative offices.

Milestones

Metrobank was incorporated in Binondo, Manila by a group of Filipino businessmen principally to provide financial services to the Filipino-Chinese community.  It opened its first local branch in 1963, and then expanded beyond Philippine shores only a few years after its establishment.  Metrobank rolled out its first international branch in Taipei in 1970 and a representative office in Hong Kong in 1973.  In 1975, Metrobank became the first of the private banks to move into American territory when it opened its office in Guam.  It later established branches in the United States mainland cities of Los Angeles and New York.

It established Metrobank Foundation, Inc. in 1979, putting emphasis on both business success and community contribution.  The Foundation has since become one of the largest and most respected charitable organizations in Asia.

In 1981, Metrobank was listed in the Philippine Stock Exchange and acquired its universal banking license, gaining significant equity ownerships in local and international subsidiaries.  It established its own credit card company, Unibancard Corporation (now Metrobank Card Corporation) in 1986.  In 1988, Metrobank entered into a joint venture with Japan’s largest automotive manufacturer and Mitsui Corporation to establish Toyota Motor Philippines Corporation.  A decade later, it partnered with another global giant, the AXA Group, to give birth to Philippine AXA Life Insurance Corporation.

In 1990, Metrobank launched the country’s first and only talking ATM, Metrobank E.T.  In 1995, Metrobank became the first billion dollar bank with total capital of Php22.8 billion, the largest in the industry.  It is the first local bank to raise supplementary capital overseas with a total of US$325 million in Lower Tier 2 Capital and Hybrid Tier 1 Capital in the years 2003 to 2006.

Metrobank has also been steadily expanding internationally.  In the late 1990s, Metrobank opened branches and offices in London, Taichung, Tokyo, and Seoul.   Metrobank was the first to be granted a banking license by the Japanese Ministry of Finance.  It was also the first Philippine bank in Korea.   In 2001, Metrobank became the first Philippine bank in China when it opened its branch in Shanghai.   In 2010, Metrobank inaugurated its wholly-owned subsidiary, Metropolitan Bank (China) Limited, the first foreign bank headquarters to be established in Nanjing.  The new bank serves as the base for Metrobank’s operations in China, with three branches located in Nanjing and Shanghai.

“You’re In Good Hands”

Metrobank remains dedicated to fulfilling its vision to be the best bank for all stakeholders – from its customers to the community.  With people dedicated to product quality, service excellence, solid work ethics, and good governance, Metrobank has established a reputation of stability, strength, and leadership.  It adheres to international best practices, careful strategic planning and prudent decision-making, focused on further improving earnings quality and increasing shareholder value by constantly reinforcing a customer-centric strategy built around the commitment of its people.

A recognized leader in the country’s banking industry; Metrobank has become regarded as the trusted banking partner, staying true to its brand promise of “You’re in Good Hands.”

<!—[if !supportLists]—>b.  <!—[endif]—>Company Vision and Mission

VISION:

To be the best bank for all our stakeholders.

MISSION STATEMENT:

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 into 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 endeavour 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.

The Metropolitan Bank and Trust Company, or simply Metrobank, is the second largest bank in the Philippines. It has a diverse offering of financial services, from regular banking to insurance.

Metrobank’s result of the External Factor Evaluation Matrix reveals that Metrobank has been effectively dealing well with the factors which can positively or adversely influence the company’s position in the banking industry. Aside from getting good strategies to handle up with the external factors, Metrobank also excels in having effective approaches to deal with the internal factors, by having a good weighted score in Internal Factor Evaluation Matrix. Accordingly, the Internal-External Matrix indicates that Metrobank should “grow and build” which means that the company has a good position in the industry and advice strategies that would let the company to be a better one.

            The Competitive Profile Matrix (CPM) shows the very tight competition Metrobank is facing with Banco de Oro and Bank of the Philippine Islands respectively. It can be noted that there is only few weak points in some areas of Metrobank which can be further improved if the company would just notice the shortcomings and take several actions to fill up those shortcomings.

            The evaluation of the threats, opportunities, weaknesses, and strengths of the Metrobank lead to a careful evaluation of what strategies can be used for the company to be more superior. And with these strategies, with proper implementation, would have Metrobank at its best.

We, the members of the group, would like to express our heartfelt gratitude to those people who helped us to conduct this paper. First and foremost, to the Almighty God for giving us the strength, knowledge, courage, determination, motivation and blessing to be able to overcome the difficulties of doing this strategic plan.

Thanks to our loving parents, who always understand and extend their patience and for their financial assistance throughout the conduction of this study, to the librarians in Far Eastern University who were always very helpful and friendly. And to our colleagues and friends for without you, we cannot have made a better study, and most importantly, to our ever dearest professor, Sir Toti Dulay, who guided and helped us to come up with this paper.

a.  Strategic Position and Action Evaluation Matrix (SPACE) Matrix

Analysis:  

            Based on the above result, Metrobank should be more aggressive in order for them to maintain their position. Metrobank’s directional vector is located in the Aggressive quadrant (upper-right quadrant) of the SPACE Matrix. Hence, Market Penetration, Market Development, Product Development, Backward Integration, Forward Integration, Horizontal integration, or joint ventures are recommended strategies for Metrobank.

a.  Grand Strategy Matrix (GSM)

Analysis:

            The following strategies are recommended based on the result of the Grand Strategy Matrix (GSM).

·         Market Penetration strategy which seeks to increase the market share for present products in the present market.

·         Market Development strategy which introduces the present product in new geographic areas.

·         Product Development strategy which seeks to increase sales by improving or modifying the present products.

·         Forward Integration which means gaining ownership or increased control over distributors or retailers.

·         Horizontal Integration which means control or merger with competitors.

Internal-External (IE) Matrix

Analysis:  

            The Internal-External Matrix is based on the total weighted scores of External Factor Evaluation Matrix and Internal Factor Evaluation Matrix. The total weighted score of EFE Matrix is 3.36 and for IFE, 2.67. The intersection of their total weighted score falls in cell number II which is described as grow and build. Intensive (market penetration, market development. diversification and product development) or integrative (backward integration, forward integration and horizontal integration) are the commonly employed strategies for these types of division.