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BDO Business Study

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Table of Content
Executive Summary
1
Statement of the Problem
2
Areas of Consideration
3
PEST analysis
3.A
Internal Environment
3.B
Assumption
4
Alternative Courses of Action
5
Analysis of Alternative Courses of Action
6
Recommendation
7
Plan of Action
8
Conclusion
9
Appendix
10
Curriculum Vitae
11
Acknowledgement
The completion ot this case study could not have been possible without the assistance
and support of some people whose name may not all be innumerable. Their contribution are sincer
ely appreciated. However, I would like to express my deep appreciated particularly to the ffollowing:
To my family for there support financially and morally this would never happen withput
them, For my classmates who give some ideas , and for Mrs. Marlou Abadinas who sends some loa
d.
Above all to our all mighty God who gives us knowledge and wisdom.
Executive Summary
Banco de Oro Unibank, Inc. Also known as Banco de Oro and BDO, is the seconda la
rgest bank in the Philippines in terms of assets and is owned and is ownedby the SM Group of comp
anies, the group company of SM in terms on industry leading retail merchandising,shopping mall opp
erations, banking and its products are its financial services . Its rain headquarters is situated in 12 AB
D Avenue Ortigas Center Mandaluyong City Philippines. As a universal bank, BDO provides a wide r
ange of corporate, commercial, retails and investment banking services in the Philippines. These ser
vices include traditional, insurance, and crefit products as well as treasury , trust, cash management,
insurance, and credit card services. BDO's principal market are currently a select niche in the corpor
ate, market and the middle market banking seant, consisting of mid-sized corporations, the small and
medium-sized enterprise market and retail/consumer market.
1
Statement of the Problem
This study aims to focus on the loan services offered by the bank Specially , it sou
ght to answer the following question:
1. What are the different loan services innovations made by the BDO Unibank?
2.Is there clear evidence that there is an increase in profitability within the bank?
3. How do the above mentioned innovations affect the following performance indicators
3.1 Profitable
3.2 Growrh rate
3.3 Retur of assets; and
3.4 Return of equity
4. How does in contribute to the development of the BDO loan services?
.5 How does if affect in customer's satisfaction and patronage?
2
Areas of Consideration
 At the time of merger PCI is the 3rd largeat bank and BDO is the 5th largest bank in ter
ms of asset. In the Philippines and PCI had almost three timea the capital BDO
 Equitable PCI bank was known for a wide range of services from savings to insurance
and, its wholly-owned subsiding equiptable CardNetwork, was the largest Philippine cr
efit card issuer. It received many works and recognitions since the time it establish.
 In the 90's PCI was known to be tha most aggresive bank in terms of acquisitionand me
rger but then in 200, BDO become the most aggressive.
 Equitable PCI's debr rating is currentlt a B and Banco de Oro has B+ ratinv
 Since 2004, BDO wanted to merger with PCI; it was only successful on december 2006
with the formation of Banco de Oro Unibank. Inc.
3
PEST analysis
PEST analysis for the banking indusrty . Thr banking insduatry affects all the countries .
But it's subservient to many factors l, particularly to the government and to economy. Bank are unabl
e to behave independently and must provide services base or the laws taht affect their growth and of
ferings. This PEST analysis highlights key factors affecting the banking industy
Political factors: A tool for the big guys. The banking sector looks all powerful but it's susceptibleto a b
igger giant: the government
Economic factors: easily influence the bankinh industry and the economic are tied. How income flow
s weather the economic prospering or babrely surviving during timea of recesition, affects how much
capital banks can access. Spending habits, and the reasons behind them , afects how much capital
banks can access. Spending habits, and the reasons behind them , affect when customers borrow or
spend funds at banks.
Sociocultural factors:consumers want ease cultural influences such as buying behaviors and necess
ities, affect how people see and use banking options. Peopleturns to banks for advice and assistanc
e for loans related to business, home and academics. Consumers seek knowledge from bank tellers
regarding saving acoounts, bank related credit card, investments, and more.
Technology factors: ssmartphones to the rescue. Once, it was expected to visit the local bank to mak
e changes to financial accounts. But not anymore. Many banks offer a mobile app to witness account
s , transfer funda, and pay bills on smartphones.
3.A
Internal Environment
Being the premier universal bank in the country, BDO has utilized its strength in building cust
omers loyalty throughout the years. With their slogan " We Find Ways", the bank has been able to bui
ld a strong customer base to the extent on operating in extensive banking hours.
Table1:BDO SWOT analysis
Strength
Advance Technology, customers loyalty, strong and competent management, diverse and innovative
services, extensive banking hours .
Weakness
Limited international presence, limited presence in the rural areas, inconsistencies in customer servic
es
Oppotunities
Explosion for foreign markets, merhe with other banks, increase exposure in the Philippines.
Threats
Tight competition in the market no substitute for financial services, increased amount of foreign banks
, government regulation, ASEAN ontegration
3.B
Assumtion
BD o wanted to improve the facilities of the internal and external training they offer through th
eir courses. Up until now, all their tarining was delivered in brick-and-mortar classes , whicj resulted i
n high traning facilities , high cost of printed materials, high cost of instructors- responsible for all the
face to face training , evaluations, practices and assessment of courses, additionally, because the o
nly small amount of earners could participatein each course. The possible outcomes that may appe
ar if this problem may not be solve as soon as possible the result would be a decrease percentage
of the performance of the company that could lead into a serious problem it could be the loyalty of th
ere customers .
4
Alternative Courses of Action
BDO academy chose TIME To KNOW 's trainingning platforms to take their training to t
he next levell witb easy engaging content creation, moving to a blended leaning environment and re
al time actionable insights on performance and engaged. TiME To KNOW enables BDO to have a di
gital training flow, creating 914 digital content items in 3 months, and conduct practice and assessm
ent . Thank to these capabilities, TIME TO KNOW shortened the need for high cost training facilities
. As a result BDO could offer a larger number courses while maintaining facilities and instructo6s ba
se. Above all , following a successful implementation of the training platform, BDO increased their rev
enue by 20%.
5
Analysis of Alternative Courses
Equitable PCI bank and BDO remain two single entities
Advantage
 Retention of the name which it took the long years establish
 No possibilityof lay-offs of the employees
 The top management wwould retain their position
 The bank would remain independentand and can grow on its own and can still achieve the hi
ghest rank in the market with their effective competitive strategies
Disadvantages:
 Bank might incur higher coat for capital generation
 Expansion to become the nation's largest would entail more cost of capital
 To become the nation's largest would take time and might be impossible since at the time ban
king business were dominatedby 2 major players namaely MetroBank ang BPI
6
Recommendation
TIME TO KNOW shortened the need for high cost training facilities. As a result BDO
could offer a larger number courses while maintaining facilities and instructo6s base. Above all ,
following a successful implementation of the training platform, BDO increased their revenue by 20%.
Since the out come of this training had been increase in 20 % there for this are the possible sulution
.
7
Plan of Action
Improving their services and facilities includes:
Electronic online services and call center
Speed of doing tasks
Fair facilities
BDO should also focus on improving their systems as well as developing their systems one's in order
to better improve satisfaction services which will then lead to better customer satisfaction. Improving
their system includes: computer system, internet banking, phone banking, and ATM terminals
8
Conclusion
In conclusion BDO are one of the well known bank here in the Philippines and also it really
had a great management for they come up qith the idea that really solve their companies problem
and really shows the growth to their company and show to their customers that BDO are worthy of
there loyalty.
9
Appendix
https://enabley.io/case-studies/bdo-case-study/
https://www.scribd.com/doc/46829705/Final.stramos
https://www.scribd.com/document/26522685/Ba-case-Analysis-Finals
https://pestleanalysis.com/document/265522685/Ba-case-analysis-finals
https://www.scribd.com/doc/285456859/17-curriculum
10
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