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Strategic Management Paper / Thesis for Union Bank of the Philippines (UBP)
Thesis · August 2023
DOI: 10.13140/RG.2.2.23926.51521
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1
PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila
A STRATEGIC MANAGEMENT PAPER:
UNION BANK OF THE PHILIPPINES (UBP)
Presented to the
Faculty of PLM Business School – Graduate Program
In Partial Fulfillment of the Requirements in Strategic Management
For the Degree of Master in Business Administration
Submitted by:
MR. FABIAN T. SANTOS
Submitted to:
PROF. HEHERSON F. MARAYAG
Adviser
August 2023
1
PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila
A STRATEGIC MANAGEMENT PAPER:
UNION BANK OF THE PHILIPPINES (UBP)
Presented to the
Faculty of PLM Business School – Graduate Program
In Partial Fulfillment of the Requirements in Strategic Management
For the Degree of Master in Business Administration
Submitted by:
MR. FABIAN T. SANTOS
Submitted to:
PROF. HEHERSON F. MARAYAG
Adviser
August 2023
ii
PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila
RECOMMENDATION FOR ORAL EXAMINATION
This
Strategic
Management
Paper
entitled:
“A
STRATEGIC
MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)” was
prepared and submitted by FABIAN T. SANTOS, in partial fulfillment of the
requirements for the degree of MASTER IN BUSINESS ADMINISTRATION
(MBA) has been examined and found satisfactory, and was recommended for Oral
Examination on August 27, 2023.
_____________________________________
PROF. HEHERSON F. MARAYAG
Adviser
iii
PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila
APPROVAL SHEET
In partial fulfillment of the requirements for the degree of MASTER IN BUSINESS
ADMINISTRATION (MBA), this Strategic Management Paper entitled: “A STRATEGIC
MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)” has been
prepared and submitted to the faculty of PLM Business School – Graduate Program by
FABIAN T. SANTOS
Approved by the Committee on Strategic Management Paper on ____________ with a grade of
_______
_____________________________________
PROF. HEHERSON F. MARAYAG, MPA
Panel Chairman
_________________________________
_____________________________________
PROF. SONIA F. MANLANGIT, EdD
Panel Member
PROF. CARMENCITA R. BRIONES, DBA
Panel Member
Accepted in partial fulfillment of the requirements for the degree of Master in Business
Administration.
_________________________________
______________________________________
JOSEPH BERLIN P. JUANZON, PhD
Director, Graduate Program
BERNARD R. LETRERO, IE, MBA, CFMP
Dean, PLMBS
iv
ACKNOWLEDGEMENT
It is with utmost humility and deep gratitude that I extend my sincerest
appreciation to the following individuals whose unwavering support, guidance, and
love have been instrumental in the completion of this Strategic Management Paper.
To my beloved Santos Family (my wife Jossan, and daughter Sanbiel Faith)
for patiently assisting, supporting, and praying for me throughout this research, as well
as for enduring sleepless nights just to ensure that my nutritional, emotional, and
spiritual needs are well-provided. I love you both.
I also extend my heartfelt appreciation to my esteemed Professor Heherson
“Sandy” Marayag. Your profound knowledge, and unwavering commitment to our
growth have been instrumental in shaping my understanding of strategic management.
Your invaluable insights and constructive feedback have challenged and inspired me to
push beyond my limits.
To my joyful MBA Classmates, our shared experiences, discussions, and
camaraderie have enriched my understanding of MBA, and have made this journey
meaningful. I am grateful for the friendships we have formed and the memories we
have shared together.
Above all, I give back my utmost gratitude to the Essence of Life, the Source of
all Wisdom, the only One True GOD in Heaven, for enabling me to complete this
research despite challenges. You have always been my Present Help in time of need,
granting me guidance and provisions, renewing my strength daily, and enabling me to
do more. You have always assured me Father God, that I am complete in You, and that
apart from You I am nothing but with You, I can do all things. All the glory belongs to
You alone. I love You, my Savior and King Jesus!
v
TABLE OF CONTENTS
RECOMMENDATION .................................................................................................ii
APPROVAL SHEET ................................................................................................... iii
ACKNOWLEDGEMENT ............................................................................................ iv
TABLE OF CONTENTS ............................................................................................... v
LIST OF TABLES ..................................................................................................... viii
LIST OF FIGURES ...................................................................................................... ix
EXECUTIVE SUMMARY ........................................................................................... x
CHAPTER 1 .................................................................................................................. 1
COMPANY BACKGROUND .......................................................................... 1
CHAPTER 2 ................................................................................................................ 13
LIMITATIONS OF THE STUDY................................................................... 13
CHAPTER 3 ................................................................................................................ 14
COMPANY’S VISION AND MISSION ........................................................ 14
A. Current Vision ............................................................................................. 14
B. Current Mission ........................................................................................... 16
C. Company Objectives .................................................................................. 18
CHAPTER 4 ................................................................................................................ 19
INDUSTRY ANALYSIS ................................................................................ 19
A. Porter’s Five Forces Model ......................................................................... 20
B. Competitive Profile Matrix (CPM) ............................................................. 28
CHAPTER 5 ................................................................................................................ 31
EXTERNAL ANALYSIS WITH EXTERNAL FACTOR EVALUATION
(EFE) MATRIX ............................................................................................... 31
A. Opportunities ............................................................................................... 31
vi
B. Threats ......................................................................................................... 33
CHAPTER 6 ................................................................................................................ 38
INTERNAL ANALYSIS WITH INTERNAL FACTOR EVALUATION (IFE)
MATRIX .......................................................................................................... 38
Internal Analysis - IFE Matrix: ........................................................................ 39
CHAPTER 7 ................................................................................................................ 40
STRATEGY FORMULATION....................................................................... 40
A. Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis and
Matching .......................................................................................................... 40
B. Strategic Position & Active Evaluation Matrix (SPACE) .......................... 47
C. Boston Consulting Group (BCG) Matrix .................................................... 50
D. Internal-External (IE) Matrix ...................................................................... 54
E. Grand Strategy Matrix (GSM)..................................................................... 56
F. Tally of Matrices (Summary of Strategies) ................................................. 58
G. Quantitative Strategic Planning Matrix (QSPM) ........................................ 60
CHAPTER 8 ................................................................................................................ 63
PROPOSED STRATEGIC OBJECTIVE ........................................................ 63
A. Strategic Objective ...................................................................................... 63
B. Financial Objective ..................................................................................... 63
C. Recommended Business Strategies ............................................................. 63
CHAPTER 9 ................................................................................................................ 66
IMPLEMENTATION AND ACTION PLANS .............................................. 66
A. Strategy Map ............................................................................................... 66
B. Departmental Action Plans.......................................................................... 71
C. Financial Projections for the Next Three (3) Years .................................... 73
CHAPTER 10 .............................................................................................................. 80
EVALUATION AND MONITORING ........................................................... 80
A. The Balanced Scorecard.............................................................................. 80
vii
REFERENCES ............................................................................................................ 85
APPENDICES ............................................................................................................. 87
viii
LIST OF TABLES
Table 1 UBP Subsidiaries & Their Top Executives .......................................... 4
Table 2 UBP Board f Directors & Management Officers................................ 10
Table 3 UBP Financial Metrics........................................................................ 11
Table 4 UBP Financial Highlights ................................................................... 12
Table 5 UBP Vision Evaluation ...................................................................... 15
Table 6 UBP Mission Statement Evaluation ................................................... 17
Table 7 UBP Competitive Profile Matrix (CPM) ............................................ 29
Table 8 UBP External Factor Evaluation (EFE) Matrix .................................. 36
Table 9 UBP Internal Factor Evaluation Matrix (IFE) .................................... 39
Table 10 UBP SWOT Matrix .......................................................................... 42
Table 11 UBP Tally of Matrices (Summary of Strategies).............................. 59
Table 12 UBP Quantitative Strategic Planning Matrix (QSPM) .................... 60
Table 13 Types of Strategies............................................................................ 62
Table 14 UBP Action Plans ............................................................................. 71
Table 15 Continuation: UBP Action Plans ...................................................... 72
Table 16 Continuation: UBP Action Plans ...................................................... 73
Table 17 Assumptions for Financial Projections (2023-2025) ........................ 74
Table 18 UBP Income Statement for 2019-2022 ............................................. 75
Table 19 UPB Income Statement - Horizontal Analysis ................................. 75
Table 20 UBP Income Statement – Vertical Analysis ..................................... 76
Table 21 UBP Balance Sheet (Financial Position) for 2019-2022 .................. 76
Table 22 UBP Balance Sheet (Financial Position) – Horizontal Analysis ...... 77
Table 23 UBP Balance Sheet (Financial Position) – Vertical Analysis .......... 78
Table 24 UBP Income Statement – Financial Projections for 2023-2025 ....... 78
Table 25 UBP Balance Sheet – Financial Projections for 2023-2025 ............. 79
Table 26 UBP Balanced Scorecard .................................................................. 83
ix
LIST OF FIGURES
Figure 1 UBP Ownership Stucture (Major Shareholders) ................................. 2
Figure 2 UBP Strategic Business Units (Products & Services) ......................... 3
Figure 3 UBP Organizational Chart ................................................................... 6
Figure 4 UBP Latest Awards & Recognitions ................................................... 8
Figure 5 UBP Porter’s 5 Forces Model of Competition .................................. 21
Figure 6 UBP Porter’s 5 Forces (Radar Chart) ................................................ 22
Figure 7 Strategic Position and Action Evaluation (SPACE) .......................... 48
Figure 8 UBP SPACE Matrix .......................................................................... 48
Figure 9 UBP SPACE Matrix Analysis ........................................................... 49
Figure 10 Boston Consulting Group (BCG) Matrix ........................................ 51
Figure 11 UBP BCG Matrix ............................................................................ 52
Figure 12 Internal-External (IE) Matrix .......................................................... 54
Figure 13 UBP IE Matrix ................................................................................. 55
Figure 14 Grand Strategy Matrix (GSM)......................................................... 56
Figure 15 UBP GSM ........................................................................................ 57
Figure 16 UBP Strategy Map ........................................................................... 67
x
EXECUTIVE SUMMARY
This "Strategic Management Paper: Union Bank of the Philippines (UBP)"
presents a comprehensive analysis of the bank's strategic management practices, with a
focus on enhancing its competitive position, sustaining growth, and addressing the
challenges and opportunities in the dynamic banking industry in the Philippines. This
paper aims to provide strategic recommendations and actionable insights to guide UBP
in its pursuit of long-term success and sustainable development.
The research begins by examining the external environment of the Philippine
banking industry, taking into account the evolving regulatory landscape, market trends,
and competitive forces. An analysis of the bank's internal strengths, weaknesses, as well
as external opportunities, and threats (SWOT) is conducted to gain insights into UBP’s
current strategic position.
To formulate an effective strategy, the paper employs various strategic
management frameworks and tools, including the analysis of Porter's Five Forces,
Competitive Profile Matrix (CPM), External Factor Evaluation (EFE) Matrix, SWOT
Analysis & Matching, Strategic Position & Active Evaluation (SPACE) Matrix, Boston
Consulting Group (BCG) Matrix, Internal-External Matrix, Grand Strategy Matrix
(GSM), Quantitative Strategic Planning Matrix (QSPM) among others. Market
Penetration and Market Development are the major strategies that were formulated
from these various Strategic Tools.
xi
After utilizing the Strategic Tools, a Proposed Strategic Objective and Financial
Objective were also crafted and supported by Recommended Business Strategies. For
its implementation and action plans, A Strategy Map, Departmental Action Plans and
Financial Projections were also made, and which will be evaluated and monitored by
the Balanced Scorecard in order to evaluate if the strategies are properly implemented,
and if there are adjustments needed in order to achieve the strategic objectives of UBP.
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
1
CHAPTER 1
COMPANY BACKGROUND
The Union Bank of the Philippines (UBP) is one of the leading banks in the
Philippines, providing a wide range of financial products and services to retail,
commercial, and corporate clients.
In August 16, 1968, UBP was founded, and firstly known as Union Savings and
Mortgage Bank. It operates as a universal bank through its universal banking license
acquired in July 1992. (PSE Electronic Disclosure Generation Technology, 2021).
UBP has accepted several bank mergers and acquisition, first with International
Corporate Bank in 1994, and also with International Exchange Bank in 2006. In
December 2021, UBP acquired Citibank Philippines from Citigroup for ₱55 billion,
with UBP as the surviving entity of the said acquisition.
As of December 2022, UBP’s major shareholders are Aboitiz Equity Ventures,
Inc. (49.94%), Social Security System (18.31%) and Insular Life Assurance Company,
Ltd. (12.28%). UBP currently operates as a subsidiary of Aboitiz Equity Ventures
(AEV). (Union Bank of the Philippines, 2022).
2
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 1
UBP’s Ownership Structure (Major Shareholders)
UBP followed a differentiation strategy that emphasizes innovation and service.
It has put technology at the heart of its business. It offers a broad range of products and
services, which include deposit and related services; corporate and middle market
lending; consumer finance loans such as mortgage, auto loans and credit card;
investment, treasury and capital market; trust and fund management; wealth
management;
remittance;
cash
management
and
electronic
banking;
and
bancassurance.
These products and services are segmented into major Strategic Business Units
(SBU) of UBP, such as the Consumer Banking, Corporate & Commercial Banking, and
Treasury & Trust Banking (Union Bank of the Philippines, 2022)
3
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 2
UBP’s Major Strategic Business Units (Products & Services Segments)
•
Consumer Banking: UBP's consumer banking business is its largest SBU,
accounting for about 65% (P34 Billion) of the bank's total revenue. It offers a wide
range of products and services to retail customers, including savings accounts, checking
accounts, loans, credit cards, and investments.
•
Corporate & Commercial Banking: UBP's commercial banking business is
its second-largest SBU, accounting for about 20% (P9 Billion) of the bank's total
revenue. It offers a wide range of products and services to corporate customers,
including loans, deposits, trade finance, and treasury services.
4
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
•
Treasury & Investment Banking: UBP's investment banking business is its
third-largest SBU, accounting for about 15% (P7 Billion) of the bank's total revenue. It
offers a wide range of services to corporate and institutional clients, including
underwriting, mergers and acquisitions advisory, and structured finance.
UBP’s various subsidiaries include City Savings Bank, Inc.; First AgroIndustrial Rural Bank, Inc.; Petnet, Inc.; Union Digital Bank; Bangko Kabayan, Inc.;
UBX Philippines Corporation; UBP Investments Corporation; First Union Direct
Corporation; First Union Plans, Inc.; and First Union Insurance and Financial Agencies,
Inc. (PSE Electronic Disclosure Generation Technology, 2021)
Table 1
UBP’s Subsidiaries and their Top Executives (2021)
5
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
UBP’s corporate Vision is “To become one of the top three (3) universal banks
in the Philippines”, while its Mission Statement is
“We are a dynamic Bank committed to bringing the future of banking to the
present by being forward thinking, innovative, open, and agile.
We seek to provide our customers with the best solutions and experiences. We
are committed to driving our customers to success by powering our systems with
advanced technology and platforms.
We are accelerating their growth by connecting them to a whole new world
of opportunities.
We are more than a bank. We seek to transform the lives of Filipinos and
make their dreams a reality. Our goal is to co-create innovations for a better world”.
UBP’s corporate Values are Integrity, Magis, and Ubuntu. Integrity embodies
ethical principles in the workplace; while Magis embodies the principles of executional
excellence; and Ubuntu embodies the principles of acting in the best interest of all
stakeholders. (Union Bank of the Philippines, 2022)
6
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 3
Organizational Chart (Table of Organization) of UBP
7
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
At the start of the millennium, Union Bank of the Philippines was the first
among its peers to start a bank website; to spearhead online banking; to launch the
country’s first electronic savings account (EON), to introduce the first chatbot, to
implement the first fully-digital account opening, and to open a fully-digital branch
called The Ark (2017), to name a few. (Union Bank of the Philippines, 2022)
In 2019, UBP was the first and only bank to introduce a Bitcoin ATM to allow
people to exchange their Philippine pesos for Bitcoin and vice versa. Likewise, it was
also the first company in the Philippines to launch its own cryptocurrency, the stable
coin PHX, used in i2i, UBP’s blockchain-powered platform.
UBP also invested in PDAX, the country’s leading digital asset exchange,
where Filipinos can trade cryptocurrencies. In 2021, UBP was also one of the only six
applicants licensed by the BSP to open a digital bank in the Philippines, then in July
12, 2022, the BSP granted the Certificate of Authority to Operate to UBP’s subsidiary
Union Digital Bank Inc. (Business World, 2021)
In September 2022, UBP inaugurated its dedicated Research & Development
complex: The Union Bank Innovation Campus (UBIC), an 8,000-square-meter, fivestory, state-of-the-art building. It is the first of three buildings in a master-planned
complex in a sprawling one-hectare area at the Sand Hub technology park in San Pedro
City, Laguna. As with many UBP initiatives in the country, it is the first in the banking
industry.
8
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Union Bank’s Innovation Campus has a dedicated innovation laboratory
equipped with the latest tools. The laboratory serves as a research hub and collaborative
space for UBP employees and partners to experiment with new technologies in a
controlled environment.
As early as 2002, the Union Bank of the Philippines has been recognized as
among Asia’s best companies by Euromoney and Finance Asia. It was also the
country’s only bank to make it to the List of the World’s 25 Soundest Banks for four
consecutive years by The Banker of London — ranking among the Philippines’ top
banks in terms of profitability and efficiency.
UBP has continuously received numerous awards and recognitions from local
and international award giving bodies through the years. (Union Bank of the
Philippines, 2022)
Figure 4
Latest Awards and Recognitions of UBP
9
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 4
Continuation: Latest Awards and Recognitions of UBP
UBP is currently headquartered in Union Bank Plaza, Meralco Ave. cor. Onyx
St., Ortigas Center, Pasig City. The bank's current Chairman is Erramon I. Aboitiz,
while its President and CEO is Edwin R. Bautista. The current Board of Directors are
Erramon I. Aboitiz, Justo A. Ortiz, Edwin R. Bautista, Sabin M. Aboitiz, Ana Maria A.
Delgado, Samel A. Aboitiz, Jose Emmanuel U. Hilado, Nina D. Aguas, Rolando L.
Macasaet, Robert Joseph M. De Claro, Roberto G. Manabat, Manuel D. Escueta, Josiah
L. Go, Francisco Ed. Lim, and Honorio G. Poblador IV. (Union Bank of the Philippines,
2022)
10
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Table 2
UBP’s Board of Directors and Management Officers (2021)
11
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Based on the Annual Report, Sustainability Report of UBP (2022) and online
data from BSP (2022), UBP is the fifth largest bank in the Philippines in terms of total
assets, with a market share of around 6.00%. The Company has Total Assets of Php
1.09 Trillion, with a Market Capitalization of Php 199.8 Billion. As for the Total
Workforce of UBP including its subsidiaries there are around 7,784 Personnel,
distributed in 385 UBP Branches nationwide, including 104 Provincial Branches, with
585 ATMs. Currently, UBP has no existing International Branch yet. It also has 11.4
Million Customer Accounts, a Total Revenue of Php 52.2 Billion were collected, and a
Net Income / Profit of 12.7 Billion. Around Php 2.56 Billion Innovation Investment
were also spent to improve products and services. UBP aims to continue its digital
transformation by developing innovative platforms and initiatives. (Union Bank of the
Philippines, 2022)
Table 3
UBP’s Financial Metrics (2022)
Metrics
Market Share
UBP
6%
Market Capitalization
PHP 199.8 billion
Net Profit / Net Income
PHP 12.7 billion
Customer Accounts
11.4 million
Assets / Resources
PHP 1.09 trillion
Revenues
PHP 52.2 billion
Deposits
PHP 711.3 billion
Number of Branches
385
Number of ATMs
585
Number of Personnel
7,784
12
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
These 5 Year financial highlights (Table 4) show that UBP has been growing
steadily over the past five years. The bank has been able to maintain its profitability
and efficiency, even in the face of challenging economic conditions. This is due to the
bank's focus on digital transformation and its commitment to providing excellent
customer service. UBP is one of the leading banks in the Philippines. The bank has a
strong track record of financial performance and is committed to providing innovative
products and services to its customers. UBP is well-positioned to continue to grow and
succeed in the years to come.
Table 4
UBP’s Five (5) Year Financial Highlights (2018-2022)
13
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
CHAPTER 2
LIMITATIONS OF THE STUDY
This Strategic Management Plan is limited only to Union Bank of the
Philippines (UBP), a banking institution that was established in the Philippines.
Comprehensive data and information of other competitor banks are not included in the
study. This paper also emphasizes a part of the company's success and challenges in the
banking and finance industry.
Majority of the information used in this study was sourced from the most recent
Annual Report (2022) of UBP, and other relevant data that was published in the
company’s website, and data from Bangko Sentral ng Pilipinas (BSP), Philippine Stock
Exchange (PSE), Securities and Exchange Commission (SEC), reputable news
corporations, and academic references.
There is limited availability of data since access to proprietary or confidential
data of financial institutions by student researchers is restricted and are not disclosed
by the company, making it challenging to gather comprehensive and accurate
information for the study, such as actual Strengths, Weaknesses, Opportunities, and
Threats (SWOT), actual amount of Sales and Revenues of each product and services,
actual Competitive Advantages that are part of trade secrets of the company, and that
only officers and top management of UBP has access to. Further extensive internal
studies are recommended for future researchers.
14
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
CHAPTER 3
COMPANY’S VISION AND MISSION
A Vision and Mission Analysis is a strategic management process that involves
defining and evaluating an organization's vision and mission statements.
Vision and Mission statements are foundational elements that communicate the
organization's purpose, aspirations, and long-term goals.
This analysis helps organizations ensure that their vision and mission align with
their strategic direction and guide decision-making. (David, 2017)
A. Current Vision
Vision Statement: A vision statement outlines the organization's long-term
aspirations and the future state it aims to achieve. It provides a clear picture of what the
organization aims to become.
The UBP’s Vision Statement is:
“To become one of the top three (3) universal banks in the Philippines”
15
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Table 5
UBP’s Vision Evaluation
Parameter
Yes / No
Evaluation
1. Does it clearly
answer
the
question: What do
we
want
to
become?
Yes
The vision is specific on what the
company wants to become with respect to set
measures or benchmarks.
2. Is it concise enough
yet inspirational?
Yes
3. Is it aspirational?
Yes
The vision states the company’s
aspiration.
4. Does it give clear
indication as to
when it should be
attained?
No
There was no mention of timeline in
the vision statement.
It is direct to the point.
A.1 Proposed Vision:
The current Vision Statement of UBP has no mention of timeline as to when
their Vision should be attained, hence it is proposed that specific timeline must be
included in the UBP Vision:
“To become one of the top three (3) universal banks in the Philippines by the
Year 2037.”
16
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
B. Current Mission
Mission Statement: A mission statement articulates the organization's purpose,
core values, and the fundamental reason for its existence.
It defines the scope of the organization's activities and its intended impact on
stakeholders.
The UBP’s Mission Statement is:
“We are a dynamic Bank committed to bringing the future of banking to the
present by being forward thinking, innovative, open, and agile.
We seek to provide our customers with the best solutions and experiences. We
are committed to driving our customers to success by powering our systems with
advanced technology and platforms.
We are accelerating their growth by connecting them to a whole new world of
opportunities.
We are more than a bank. We seek to transform the lives of Filipinos and
make their dreams a reality. Our goal is to co-create innovations for a better world”
17
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Table 6
UBP’s Mission Statement Evaluation
Components
Yes / No
Evaluation
1. Customers - Who are
the firm’s customers?
Yes
There is mention of Customers: “We seek to
transform the lives of Filipinos and make
their dreams a reality.”
2. Products or Services What are the firm’s
major products or
services?
Yes
Specify about Banking “We seek to provide
our customers with the best solutions and
experiences.”
3. Markets
Geographically, where
does the firm compete?
No
There is no mention of geographical
location where UBP competes.
4. Technology - Is the
firm technologically
current?
Yes
There is mention of Technology: “We are
committed to driving our customers to
success by powering our systems with
advanced technology and platforms.”
5. Survival, Growth &
Profitability - Is the
firm committed to
growth and financial
soundness?
Yes
There is mention of Growth & Profitability:
We are accelerating their growth by
connecting them to a whole new world of
opportunities.”
6. Philosophy - What are
the
basic
beliefs,
values, aspirations, and
ethical priorities of the
firm?
Yes
There is mention of its values and
aspirations: “We are a dynamic Bank
committed to bringing the future of banking
to the present by being forward thinking,
innovative, open, and agile.”
7. Self-concept - What is
the
firm’s
major
competitive
advantage?
Yes
Their competitive advantage is co-creating
innovations - “Our goal is to co-create
innovations for a better world”
8. Public Image - Is the
firm responsive to
social, community, and
environmental
concerns?
No
There is no mention about social,
community, and environmental concerns.
9. Employees - Are
employees a valuable
asset of the firm?
No
There is no mention of the value of UBP
employees, their focus is more on the
customers.
18
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
B.1 Proposed Mission:
The
current
Mission
Statement
of
UBP
has
no
component
of
Markets/Geography (3), Public Image (8), and Employees (9). Likewise, the Products
or Services (2) component must be specified as banking or financial products, hence it
is proposed that such lacking components be included in the UBP Mission.
“We are a dynamic Bank in the Philippines (3) committed to bringing the
future of banking to the present by developing our personnel to become (9) forward
thinking, innovative, open, and agile.
We seek to provide our customers with the best banking solutions and
experiences (2). We are committed to driving our customers to success by powering
our systems with advanced technology and platforms.
We are accelerating their growth by connecting them to a whole new world of
opportunities.
We are more than a bank. We seek to transform the lives of Filipinos in every
community (8), and make their dreams a reality. Our goal is to co-create innovations
for a better world”
C. Company Objectives
The UBP’s current company objectives are Financial Value. Operational
Excellence,
Superior
Brand/Experience.
Innovation,
Customer
Franchise,
and
Union
Bank
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
CHAPTER 4
INDUSTRY ANALYSIS
Industry analysis is a strategic management tool that is used to assess the
attractiveness of an industry and the competitive position of a firm within that industry.
It is a critical component of the strategic planning process, as it helps managers to make
informed decisions about where to allocate resources and how to compete.
Industry Overview
The banking industry in the Philippines is a highly competitive industry, with a
large number of banks competing for market share. The top five banks in the Philippines
account for over 60% of the market share. UBP is the 5th largest bank in the Philippines
in terms of assets.
UBP's Competitive Position
UBP is a well-established bank with a strong track record of financial
performance. The bank has a wide range of products and services and a strong customer
base. UBP is also a leader in digital banking, with a number of innovative products and
services.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
UBP's competitive advantages include:
•
Strong brand recognition
•
Established customer relationships
•
Wide range of products and services
•
Strong financial performance
•
Leadership in digital banking
UBP's competitive challenges include:
•
High competition from other banks
•
Emerging technologies that could disrupt the traditional banking model
•
Need to maintain strong financial performance
Overall, UBP is a well-positioned bank with a strong competitive position. The
bank is facing some challenges, but it is well-positioned to overcome these challenges
and continue to grow in the future.
A. Porter’s Five Forces Model
The Porter’s Five Forces Model is a framework for understanding the
competitive forces at work in an industry, which drive the way economic value is
divided among industry players. It mainly reflects the competitive structure of an
industry, and its profitability.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
It helps organizations understand the dynamics of competition and make
informed strategic decisions. It is a strategic framework developed by Michael E.
Porter, a renowned economist and professor at Harvard Business School. (Harvard
Business School, n.d.)
Figure 5
UBP Porter’s Five Forces Model of Competition
Potential
Development of
Substitute
Products
(MODERATE)
Bargaining
Power of
Suppliers
(LOW)
Rivalry Among
Competing
Firms
(HIGH)
Potential Entry
of New
Competitors
(MODERATE)
Bargaining
Power of
Consumers
(HIGH)
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 6
UBP Porter’s 5 Forces (Radar Chart)
A.1 Rivalry Among Competing Firms (High)
Rivalry among competing firms is one of the forces in Porter's Five Forces
analysis. This force examines the intensity of competition among existing players in
the industry. In the case of UBP, the level of competition in the banking industry in the
Philippines is high, with many banks competing for market share. The following factors
contribute to the high rivalry among banking firms:
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
1. High number of competitors: The banking industry in the Philippines is highly
competitive, with many banks operating in the market. According to the Bangko
Sentral ng Pilipinas (BSP), there are 487 banks in the Philippines as of May
2023.
2. Similar product offerings: Many banks in the Philippines offer similar products
and services (e.g. Savings Accounts, Current Accounts, Time Deposits etc.),
making it difficult for any one bank to differentiate itself. This often leads to
price competition, which can result in lower profit margins for all competitors.
3. Digital transformation: Many banks in the Philippines are undergoing digital
transformation, which has led to the emergence of new digital players and
fintech companies. This Digital transformation effort has intensified the
competition level in the industry.
4. Regulatory environment: The regulatory environment in the Philippines is
constantly changing, and banks must be able to adapt quickly to comply with
new government regulations. This can create additional challenges for banks
and increase the level of competition.
To remain competitive in this market, UBP must focus on differentiating itself
through innovative products and services, excellent customer service, and a strong
brand. The bank must also be able to adapt quickly to changes in the market and respond
to new competitors and emerging trends. UBP is one of the leading banks that has
invested heavily in digital transformation, it is one of the few digital banks in the
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Philippines that were licensed to operate by the BSP in 2022 (Union Bank of the
Philippines, 2022).
A.2 Potential Entry of New Competitors (Moderate)
The potential entry of new competitors is another important force in Porter's
Five Forces analysis. In the case of UBP, the threat of new entrants is moderate.
Although the banking industry in the Philippines is highly regulated, which can make
it challenging for new competitors to enter the market. However, there are still some
factors that could lead to the potential entry of new competitors in the future. These are
significant factors to consider:
1. Ease of doing business legislation: The Philippine government has taken steps
and enacted laws to improve the ease of doing business in the country, which
could attract new players to the market.
2. Digital disruption: The emergence of digital players and fintech companies in
the Philippines could lead to increased competition in the banking industry.
3. Changing customer needs: As customer needs and preferences change, there
may be opportunities for new players to enter the market and meet these needs.
4. Open banking: The Philippine government has recently introduced regulations
related to open banking, which could create opportunities for new players to
enter the market.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
To prepare for potential new competitors, Union Bank of the Philippines must
focus on enhancing its competitive advantages and maintaining its position in the
market. The bank should also continue to invest in innovation and digital transformation
to stay ahead of the competition.
A.3 Potential Development of Substitute Products (Moderate)
The potential development of substitute products is another important force in
Porter's Five Forces analysis. The emergence of substitute products in the banking
industry can pose a threat to banks like UBP. Some of potential substitute products in
the Philippine market include:
1. E-wallets: The rise of e-wallets like GCash and PayMaya in the Philippines
provides customers with an alternative way to make transactions and manage
their money. These platforms offer features like bill payments, fund transfers,
and online shopping, which can compete with traditional banking services.
2. Peer-to-peer lending: Peer-to-peer (P2P) lending platforms like Blend.ph and
Uploan.ph offer borrowers an alternative way to access credit outside of
traditional banks. These platforms directly connect borrowers with individual
lenders, frequently at further competitive interest rates than banks can offer.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
3. Cryptocurrencies: While still in its early stages in the Philippines, the
emergence of cryptocurrencies like Bitcoin, Ethereum, XRP and may others
could potentially disrupt the banking industry. These digital currencies provide
decentralized options to traditional bank services.
To stay ahead of potential substitute products, UBP must continue to innovate
and provide value to customers. The bank can explore partnerships with e-wallets and
P2P lending platforms to offer more comprehensive services to customers. UBP can
also explore the potential of blockchain technology through its fintech subsidiary UBX,
which underlies cryptocurrencies, to streamline its operations and offer new products
and services.
A.4 Bargaining Power of Suppliers (Low)
The bargaining power of suppliers in the banking industry refers to the ability
of suppliers to influence the prices and quality of products and services they provide to
banks. In the case of UBP, the key suppliers include technology providers, software
developers, atm/credit cards suppliers, bank paper manufacturers, and third-party
service providers.
The bargaining power of suppliers for UBP is relatively low. The banking
industry in the Philippines is highly competitive, and there are many technology
providers and software developers that can offer similar products and services to banks.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
This makes it easier for Union Bank of the Philippines to switch suppliers if they are
not satisfied with the terms of their current suppliers.
Moreover, Union Bank of the Philippines has invested heavily in developing its
own digital capabilities, which reduces its reliance on external suppliers. The bank has
also partnered with various fintech companies and technology providers to enhance its
digital offerings and provide innovative products and services to its customers.
To mitigate the potential risks associated with supplier bargaining power, UBP
should continue to invest in developing its own digital capabilities and maintaining
strong relationships with multiple suppliers. The bank can also consider exploring
alternative technologies or services that are less reliant on external suppliers.
A.5 Bargaining Power of Consumers (High)
The bargaining power of consumers in the banking industry refers to the ability
of customers to influence the prices and quality of products and services offered by
banks. In the case of UBP, the bank's customers include individuals, small and mediumsized enterprises, and large corporations. The bargaining power of consumers is
relatively high.
Since the banking industry in the Philippines is highly competitive, with many
players offering similar products and services. This gives consumers (customers) a wide
range of options to choose from and makes it easier for them to switch to a different
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
bank if they are not satisfied with the products or services offered by Union Bank of
the Philippines.
Moreover, customers in the Philippines are becoming increasingly sophisticated
and demanding when it comes to their banking needs. They expect convenient and
efficient services, personalized solutions, and competitive pricing.
As such, UBP needs to continually innovate and enhance its products and
services to meet the evolving needs and preferences of its customers. UBP should also
prioritize customer satisfaction and engagement.
The bank should continue to invest in developing and upgrading its digital
capabilities, expanding its product offerings, and providing excellent customer service
to maintain customer retention and attract new customers.
B. Competitive Profile Matrix (CPM)
A Competitive Profile Matrix (CPM) is a strategic tool used to compare the
strengths and weaknesses of a company with those of its competitors. The CPM is based
on Critical Success Factors (CSF) and provides a quantitative way to evaluate a
company's position relative to its competitors.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
The CPM was invented by Albert Humphrey, a professor at the London
Business School. He was one of the developers of the SWOT analysis, and he also
invented the Growth-Share Matrix. (Humphrey, 1967)
Table 7
UBP Competitive Profile Matrix (CPM)
UBP
Critical Success
Factors (CSF)
BDO
MetroBank
BPI
Weight
Rate
Score
Rate
Score
Rate
Score
Rate
Score
Market
Capitalization
0.15
2.00
0.30
3.00
0.45
4.00
0.60
1.00
0.15
Profits
0.13
2.00
0.26
4.00
0.52
3.00
0.39
1.00
0.13
Customer
Accounts
0.12
2.00
0.24
3.00
0.36
4.00
0.48
1.00
0.12
Market Share
0.11
1.00
0.11
3.00
0.33
4.00
0.44
2.00
0.22
Research &
Development
0.10
4.00
0.40
1.00
0.10
3.00
0.30
2.00
0.20
Product Quality
0.09
4.00
0.36
1.00
0.09
3.00
0.27
2.00
0.18
Brand
Reputation
0.08
3.00
0.24
2.00
0.16
4.00
0.32
1.00
0.08
Customer
Service
0.07
2.00
0.14
3.00
0.21
4.00
0.28
1.00
0.07
Promotions /
Advertising
0.06
2.00
0.12
4.00
0.24
3.00
0.18
1.00
0.06
ATM Locations
0.05
1.00
0.05
4.00
0.20
3.00
0.15
2.00
0.10
Geographical
Coverage
0.04
1.00
0.04
4.00
0.16
3.00
0.12
2.00
0.08
TOTAL
1.00
2.26
2.82
3.53
1.39
CPM Insights:
•
The CPM uses the following Rating: 1 = "major weaknesses", 2 = "minor
weaknesses", 3 = "minor strength", 4 = "major strength".
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
•
Based on the CPM analysis, UBP has a total score of 2.26, while BPI has the
highest score of 3.59, followed by BDO with 2.82, and MetroBank with 1.39.
This indicates that UBP is closely behind its leading competitors.
•
Union Bank of the Philippines has a lower score in terms of Market
Capitalization, which could be attributed to its smaller asset base and lower
profitability compared to its competitors. The bank should focus on improving
its financial performance to enhance its competitiveness in the market.
•
Customer service is another critical success factor where Union Bank of the
Philippines has an average score. UBP prioritizes its customer service by
investing in staff training, improving its digital capabilities, and enhancing the
overall customer experience.
•
Product Quality, and Research & Development are also areas where UBP is
competitive, since the bank focuses on developing new and innovative products
and services that meet the evolving needs of its customers. This helps the bank
differentiate itself from its competitors and attract more customers.
•
The CPM analysis also shows that Union Bank of the Philippines has a lower
score in terms of Market Share and Geographical Coverage. The bank should
focus on expanding its market share and geographical coverage by targeting
new customer segments and enhancing its digital capabilities, as well as adding
more branches locally and internationally to stay competitive in the market.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
CHAPTER 5
EXTERNAL ANALYSIS WITH EXTERNAL FACTOR EVALUATION
(EFE) MATRIX
The External Analysis with External Factor Evaluation (EFE) is an essential
tool used in strategic planning that helps companies analyze the external setting where
they operate. It is intended to identify possible opportunities and threats that can affect
the performance of a company. The EFE Matrix is comprised of factors such as Political
& Legal, Economic, Social & Cultural, Technological, and Environmental factors.
(David, 2009)
A. Opportunities
1. Enactment of the “Corporate Recovery and Tax Incentives for Enterprises”
(CREATE) Law – This Republic Act No. 11534, otherwise known as the “Corporate
Recovery and Tax Incentives for Enterprises” (CREATE) Act is the second package of
the Comprehensive Tax Reform Program that reduces Corporate Income Tax rates from
30% to 20%, which will provide tax relief measures to help businesses and corporations
recover from the effects of the pandemic, as well as measures that will rationalize the
grant of fiscal incentives to targeted investors. (SakLawPh, 2022)
2. Continuous Infrastructure Development in the Philippines - UBP can explore
investment opportunities in high-growth sectors, such as infrastructure, renewable
energy, and technology, to diversify its revenue streams and generate higher returns. It
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
can leverage the government's infrastructure initiatives such as Public-Private
Partnerships (PPP) by providing financing solutions to infrastructure projects,
construction companies, and related industries, contributing to loan growth.
3. Growing Working Population of the Philippines – According to the Philippine
Statistics Authority (PSA), the population of the Philippines in 2022 was more than 115
Million, and it’s working population is around 77 Million, which is projected to grow
every year. This population growth serves as an opportunity for Union Bank of the
Philippines to offer its products to a larger number of potential customers. As the
population grows, there is likely to be changes in consumer preferences, as well as an
increased demand for banking services, which can benefit the UBP. However, the bank
must always be aware of changing consumer preferences and cultural trends in order to
remain competitive.
4. Rise of PH online / e-commerce market (31.3% - worth of P500.9 billion, as of
2022) - Technological advances have changed the way consumers and businesses
operate. According to GlobalData Statistics, in 2022, there was an increase of 31.3%
of Philippine consumers who engaged from offline to online purchases, which is
equivalent to P500.9 Billion worth of e-commerce, and is expected to continue to grow
in the succeeding years. The Philippines is now considered as one of the fastest
growing e-commerce markets in South East Asia, reinforced by smart phone
penetration, increasing high-speed internet providers, as well as an offshoot of the No
Contact policies of Covid19 Pandemic. With this opportunity, UBP has implemented
a number of digital initiatives, such as digital bank (Union Digital), improved mobile
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
banking and online banking, which resulted to an increase customer convenience and
reduced costs.
5. Increasing demand for Sustainable Lifestyle (e.g. Paperless Transactions,
Renewable Energies) - All around the globe there is now an increasing demand for a
more environmental-friendly and sustainable lifestyle, not just for individuals but also
for businesses. The UBP responded to this opportunity by encouraging all their
stakeholders, especially their personnel in leading sustainable lifestyles. The bank
advocated proper management and utilization of resources (water, paper and energy) as
well as minimizing carbon footprint by “greening” UBP network of branches. In fact,
in 2017, the Union Bank Plaza (UBP Headquarters) was the first high-rise financial
center in the Philippines to fully operate using a renewable energy source (Solar
Power). Likewise, in 2020 upon fully rolling out the UBP digital transaction portal, it
was able to shift 58% of paper transactions to paperless or online processing. This
translated to conserve almost 160,000 kwH in energy consumption, and saved 637 trees.
(Union Bank of the Philippines, 2022)
B. Threats
1. Geopolitical Risks (Global conflicts like possible China-Taiwan/US War) External geopolitical risks, such as global conflicts or trade disputes (like possible
China-Taiwan-US War), can impact the Philippine economy and financial markets.
UBP needs to monitor geopolitical risks and manage their potential impact on its
operations and performance.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
2. Market Volatility (Fluctuations in Stock Markets, Foreign Currency Exchange
Rates) – The volatility of financial markets, including fluctuations in stock prices,
interest rates, and foreign currency exchange rates, can affect UBP's investment
portfolio, trading activities, value of assets, profitability, and overall financial
performance.
3. Changing Demographics (Aging population and rise of Millennials & Gen Z
Customers) - The Philippines has a growing young and tech-savvy population, with a
significant percentage of the population being Millennials and Generation Z. UBP can
tap into this demographic through digital banking solutions and tailored financial
products. While for the aging population, UBP can still offer simplified user-friendly
traditional services, through this way the bank can adapt to the changing demographics,
and still attract, capture and retain a significant market share. Generally, UBP must
adapt its products, services, and marketing strategies to cater to the specific needs and
preferences of different demographic groups.
4. Cybersecurity Risks (Increasing prevalence of cyberthreats, hacking and data
breaches) - As digital banking becomes more prevalent, the risk of cybersecurity
threats and data breaches increases. According to the Department of Information and
Communication (DICT) the Philippines have encountered 3,000 high-level
cyberattacks from 2020 to 2022. The rising threat of cyberattacks and data breaches
poses risks to UBP's reputation, customer trust, and financial stability, hence it must
invest in robust cybersecurity measures, regular employee training, cyberthreat
awareness for client programs, and risk management protocols to safeguard customer
information and maintain trust in its digital services.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
5. Climate Change Risks (Strong Typhoons, Flooding, Drought) - Climate change
poses significant risks to Union Bank of the Philippines, as well as the broader financial
sector in the Philippine setting. The country is highly vulnerable to the impacts of
climate change, which can have far-reaching consequences for the economy,
businesses, and financial institutions. The Philippines is prone to typhoons, floods,
landslides, and other natural disasters. Climate change exacerbates these risks, leading
to more frequent and severe weather events. These disasters can cause infrastructure
damage, disrupt economic activities, and result in loan defaults or insurance claims,
impacting the UBP’s loan portfolio and insurance-related assets. It is important that
UBP develop sustainable programs, infrastructures and systems that will mitigate this
threat of climate change.
External Factor Evaluation (EFE) Matrix
The External Factor Evaluation (EFE) Matrix is a strategic management tool
used to assess and evaluate an organization's external opportunities and threats. It is a
structured approach to identifying and prioritizing key external factors that have a
significant impact on the organization's performance and strategic decision-making.
The EFE Matrix was developed by Fred R. David in his book "Strategic Management:
Concepts and Cases." It is a commonly used tool in strategic planning and analysis, and
it is often used in conjunction with other strategic analysis tools such as the SWOT
analysis and the Competitive Profile Matrix (CPM).
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
The EFE Matrix is a relatively simple tool to use, but it can provide valuable
insights into an organization's external environment.
Table 8
UBP External Factor Evaluation (EFE) Matrix
EXTERNAL FACTOR EVALUATION (EFE) MATRIX OF UBP
OPPORTUNITIES
1. Enactment of the “Corporate Recovery and
Tax Incentives for Enterprises” (CREATE) Law
2. Continuous Infrastructure Development in the
Philippines.
3. Growing Working Population of the
Philippines
4. Rise of PH online / e-commerce market
(31.3% - worth of P500.9 billion, as of 2022)
5. Increasing demand for Sustainable Lifestyle
(e.g. Paperless Transactions, Renewable
Energies)
6. Digital Transformation of the PH Banking
Industry
7. Changing Customer Needs / Preferences
(Millennials & Gen Z)
WEIGHT RATING
WEIGHTED
SCORE
0.06
3
0.18
0.07
2
0.14
0.09
4
0.36
0.09
4
0.36
0.07
3
0.21
0.09
3
0.27
0.07
3
0.06
2
0.12
0.06
2
0.12
0.07
3
0.21
0.08
4
0.32
0.04
2
0.08
0.07
4
0.28
7. Entry of Foreign Banks in the PH Market
0.08
3
0.24
TOTAL
1.00
THREATS
1. Geopolitical Risks (Global conflicts like
possible China-Taiwan/US War)
2. Market Volatility (Fluctuations in Stock
Markets, Foreign Currency Exchange Rates)
3. Changing Demographics (Aging population
and rise of Millennials & Gen Z Customers)
4. Cybersecurity Risks (Increasing prevalence
of cyber threats, hacking and data breaches)
5. Climate Change Risks (Strong Typhoons,
Flooding, Drought)
6. Emergence of Digital Banks and Fintech
Companies (GCash, Maya, Cryptocurrencies)
Rating: 4 = Response is Superior
3 = Response is Above Average
2 = Response is Average
1 = Response is Poor
0.21
WEIGHTED
WEIGHT RATING
SCORE
3.10
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
EFE Matrix Interpretation:
The total weighted score for Union Bank of the Philippines (UBP) is 3.10,
indicating a generally above average responsiveness to its external environment.
The bank benefits from favorable opportunities such as a growing population of
the Philippines, rising online transactions and e-commerce, as well as continuous
infrastructure development in the country.
However, it faces challenges / threats from cybersecurity risks, specifically the
increasing prevalence of cyberthreats, hacking and data breaches, as well as the effects
of fluctuating financial market on its profitability, looming geopolitical risks (global
conflicts), emergence of digital banks and fintech companies, and entry of foreign
banks in the Philippine banking industry.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
CHAPTER 6
INTERNAL ANALYSIS WITH INTERNAL FACTOR EVALUATION
(IFE) MATRIX
Internal Analysis, also known as Internal Audit, is a strategic management tool
used to assess and evaluate an organization's internal strengths and weaknesses. It
involves analyzing various aspects of the organization's internal environment to gain
insights into its capabilities, resources, culture, and operations. Internal analysis is a
crucial step in the strategic planning process as it helps organizations identify areas
where they can leverage their strengths and address their weaknesses to achieve their
strategic goals. The concept of Internal Analysis was first developed by Alfred
Chandler, a professor of business history at Harvard University. He argued that
businesses need to understand their internal strengths and weaknesses in order to make
effective strategic decisions. (Chandler, 1962)
Relatively, the Internal Factor Evaluation (IFE) Matrix is a strategic
management tool used to assess and evaluate the internal strengths and weaknesses of
an organization. It helps organizations identify their key strengths and weaknesses and
understand how well they are positioned to address external opportunities and threats.
The IFE Matrix provides a structured approach in conducting an internal analysis,
enabling companies to make informed strategic decisions. The IFE Matrix was invented
by Fred R. David in 1986. He was a professor of strategic management at the University
of Pittsburgh. (David, 1986)
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Strengths
1
Good
Table
9Research & Development (UBP Innovation Campus)
Weight
Rating
Weighted Score
0.07
0.07
Weight
0.07
0.07
0.07
0.07
0.06
Weight
0.07
0.06
0.07
0.07
0.06
0.07
0.06
0.05
0.07
0.06
0.05
0.07
0.06
0.00
0.06
0.05
0.06
0.05
4
4
Rating
4
4
4
4
4
Rating
4
4
4
4
4
4
4
3
4
4
3
4
4
0
4
3
4
3
0.28
0.28
Weighted
0.28Score
0.06
0.00
Weight
0.05
0.07
0.05
0.07
Weight
0.07
4
0
Rating
3
2
3
2
Rating
1
0.07
0.07
0.07
0.06
2
1
2
1
0.07
0.05
0.07
0.05
1
2
1
2
0.06
0.00
0.05
0.00
1
0
2
0
7 0
Inconsistencies in Customer Service
10
8 Total
0
IFE Score
0.05
0.00
0.00
1.00
2
0
0
9 0
0.00
0
0.00
2.82
0.00
10 0
0.00
0
0.00
IFE Score
IFETotal
Matrix
Analysis:
1.00
2 Strong Digital Banking Capabilities (UB Online App, EON,
Strengths
ARK,
Digital Transaction
Portals)Capitalization)
3 UnionDigital,
Strong
Financial
Performance
(P399 B Market
UBP
Internal
Factor
Evaluation
(IFE)
Matrix
1 Good
Good Human
Research
& Development
(UBPTrainings
Innovation
Campus)
4
Resource
Development
(UBP
University)
2 Good
StrongBand
Digital
Banking (Multi-awarded
Capabilities (UBCompany)
Online App, EON,
5
Reputation
Strengths
UnionDigital,
ARK,
Digital
Transaction
Portals)
3
Strong
Financial
Performance
(P399
B
Market
Capitalization)
6 Professional Management Team
1 Good
Good Human
Research
& Development
(UBPTrainings
Innovation
Campus)
4
Resource
Development
(UBP
University)
7 Innovative Products & Services
2 Good
StrongBand
Digital
Banking (Multi-awarded
Capabilities (UBCompany)
Online App, EON,
5
Reputation
8 Good Customer Base (7.2 Million Accounts)
UnionDigital,
ARK,
Digital Transaction
Portals)Capitalization)
3 Professional
Strong Financial
Performance
(P399
1 B Market
6
Management
9
Stable Institutional
Clients Team
(GSIS, SSS, PAG-IBIG etc)
4
Good
Human
Resource
Development
Trainings
(UBP University)
7 0
Innovative Products & Services
10
5
Good
Bank
Reputation
(Multi-awarded
Company)
8 Good Customer Base (7.2 Million Accounts)
6 Stable
Professional
Management
9
Institutional
Clients Team
(GSIS, SSS, PAG-IBIG etc)
7 0
Innovative Products & Services
10
Weaknesses
8 Good Customer Base (11.4 Million Accounts)
1 Limited Multimedia Promotions / Advertising
9 Stable Institutional Clients (GSIS, SSS, PAG-IBIG etc)
2 Limited Number of Branches (385)
Weaknesses
3 No
International Branch (0)
1
Limited Provincial
MultimediaBranches
Promotions
/ Advertising
4 Limited
(104)
2 Limited
Limited ATM
Number
of Branches
5
Locations
(585)(385)
3 Limited
No International
(0) (7,784)
6
Number Branch
of Personnel
4
Limited
Provincial
Branches
(104)
7 Inconsistencies in Customer Service
5
8
6
9
Limited ATM Locations (585)
0
Limited Number of Personnel (7,784)
0
0.28
0.28
0.28
0.24
Weighted
0.28Score
0.24
0.28
0.28
0.24
0.28
0.24
0.15
0.28
0.24
0.15
0.28
0.24
0.00
0.24
0.15
0.24
0.15
0.24
0.00
Weighted Score
0.15
0.14
0.15
0.14
Weighted Score
0.07
0.14
0.07
0.14
0.06
0.07
0.10
0.07
0.10
0.06
0.00
0.10
0.00
0.10
0.00
2.82
The total weighted score for Union Bank of the Philippines (UBP) is 2.82,
indicating a generally strong internal position. The bank benefits from its internal
strengths such as Good Research & Development, Strong Digital Banking Capabilities,
Strong Financial Performance, Good Human Resource Development Trainings, Good
Bank Reputation, Professional Management Team, Innovative Products & Services,
Good Customer Base, and Stable Institutional Clients
However, the bank has also experienced internal weaknesses coming from
Limited Multimedia Promotions / Advertising, Limited Number of Branches, No
International Branch, Limited Provincial Branches, Limited ATM Locations, Limited
Number of Personnel and Inconsistencies in Customer Service.
40
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
CHAPTER 7
STRATEGY FORMULATION
A. Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis and
Matching
SWOT Analysis is a strategic planning framework used to assess the internal
Strengths and Weaknesses of an organization, as well as the external Opportunities and
Threats it faces. This analysis helps organizations gain insights into their current
position in relation to their industry and competitive landscape. By identifying strengths
that can be leveraged, weaknesses that need to be addressed, opportunities that can be
pursued, and threats that need mitigation, organizations can formulate effective
strategies to achieve their goals. (David & David, 2017)
Whereas, SWOT Matching is a strategic concept that aligns an organization's
internal strengths and weaknesses with external opportunities and threats. By doing so,
organizations can develop strategies that capitalize on strengths to exploit
opportunities, while addressing weaknesses to mitigate threats. Matching ensures the
coherence between an organization's capabilities and the external environment's
demands.
The origins of SWOT Analysis can be traced back to management scholars and
practitioners who contributed to its development over time. It has been widely used
since the 1960’s. (David & David, 2017)
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
SWOT Strategies Matching
1. S-O Strategies (Strengths-Opportunities): This strategy aims to leverage the
organization's strengths to take advantage of opportunities. S-O is often the most
effective way for organizations to grow and achieve their goals.
2. W-O Strategies (Weaknesses-Opportunities): This strategy aims to overcome
the organization's weaknesses in order to take advantage of opportunities. W-O
can be a good way for organizations to improve their competitive position.
3. S-T Strategies (Strengths-Threats): This strategy aims to use the organization's
strengths to mitigate the impact of threats. S-T is important for organizations to
protect themselves from threats.
4. W-T Strategies (Weaknesses-Threats): This strategy aims to minimize the
impact of threats by addressing the organization's weaknesses. W-T is essential
for organizations to survive and thrive.
42
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Table 10
UBP’s SWOT Matrix
STRENGTHS (INTERNAL FACTORS)
Union Bank of the Philippines
(UBP)
S1. Good Research & Development (UBP Innovation
W1. Limited Multimedia Promotions / Advertising
Campus)
S2. Strong Digital Banking Capabilities (Online App,
EON, UnionDigital, ARK, DTP)
1
SWOT MATRIX
Analysis & Matching
WEAKNESSES (INTERNAL FACTORS)
W2. Limited Number of Branches (385)
S3. Strong Financial Performance (P399 B Market
Capitalization)
W3. No International Branch (0)
S4. Good Human Resource Development Trainings
(UBP University)
W4. Limited Provincial Branches (104)
S5. Good Bank Reputation (Multi-awarded
Company)
W5. Limited ATM Locations (585)
S6. Professional Management Team
W6. Limited Number of Personnel (7,784)
S7. Innovative Products & Services
W7. Inconsistencies in Customer Service
S8. Good Customer Base (11.4 Million Accounts)
S9. Stable Institutional Clients (GSIS, SSS, PAGIBIG etc)
OPPORTUNITIES (EXTERNAL FACTORS)
S-O STRATEGIES
W-O STRATEGIES
O1. Enactment of the “Corporate Recovery and Tax
Incentives for Enterprises” (CREATE) Law
SO1. Continue to invest in research & development
to develop new products and services that meet the
needs of customers and businesses. (S1,O3,O7)
WO1. Partner with social media influencers and
other marketing channels to reach a wider range of
customers. (W1,O3,O4,O7)
O2. Continuous Infrastructure Development in the
Philippines.
SO2. Continue to invest in digital banking capabilities
WO2. Expand branch network in the provinces to
to meet the growing demand for online and mobile
reach customers in rural areas. (W2,W4,O2,O3,O7)
banking services. (S2,O3,O4)
O3. Growing Population of the Philippines (115 M as SO3. Expand branch network to reach a wider range WO3. Open international branches to reach
of 2022)
of customers. (S3,O3,O7)
customers in other countries. (W3,O2,O4,O6)
O4. Rise of PH online / e-commerce market (31.3% - SO4. Partner with e-commerce companies to offer
worth of P500.9 billion, as of 2022)
financial services to their customers. (S7,S2,O4)
WO4. Expand branch network in the provinces to
reach customers who are not yet using digital
banking services. (W4,W5,O3,O6,O7)
SO5. Offer sustainable banking products and
O5. Increasing demand for Sustainable Lifestyle (e.g.
services to meet the growing demand for
Paperless Transactions, Renewable Energies)
environmentally friendly products. (S7,O5)
WO5. Develop sustainable banking products and
services to meet the growing demand for
environmentally friendly products. (W1,O5)
O6. Digital Transformation of the PH Banking
Industry
SO6. Continue to invest in technology to stay ahead WO6. Invest in technology to stay ahead of the
of the competition in the digital banking space.
competition in the digital banking space.
(S1,S2,S7,O6)
(W2,W5,O4,O6)
O7. Changing Customer Needs / Preferences
(Millenials & Gen Z)
SO7. Develop products and services that are tailored WO7. Develop products and services that are
to the needs of millennials and Gen Z customers.
tailored to the needs of millennials and Gen Z
(S1,S7,O7)
customers. (W1,W2,O7)
SO8. Continue to provide excellent customer service
to retain existing customers and attract new
customers. (S4,S5,O3,O7)
SO9. Continue to provide financial services to
institutional clients to generate stable revenue.
(S9,O3,O6,O7)
THREATS (EXTERNAL FACTORS)
S-T STRATEGIES
W-T STRATEGIES
T1. Geopolitical Risks (Global conflicts like possible
China-Taiwan/US War)
ST1. Partner with cybersecurity companies to
develop innovative solutions to protect UBP's
systems from cyber threats. (S1,S2,S6,S7,T4)
T2. Market Volatility (Fluctuations in Stock Markets,
Foreign Currency Exchange Rates)
ST2. Use UBP's strong digital banking capabilities to
WT2. Expand the number of branches to compete
attract customers who are looking for convenient and
with foreign banks. (W2,T3)
secure banking services. (S2,T3,T4,T6)
T3. Changing Demographics (Aging population and
rise of Millennials & Gen Z Customers)
ST3. Develop products and services that are tailored WT3. Open an international branch to tap into the
to the needs of millennials and Gen Z customers.
growing market of overseas Filipino workers.
(S1,S2,S7,T3)
(W3,T3)
T4. Cybersecurity Risks (Increasing prevalence of
cyber threats, hacking and data breaches)
ST4. Invest in employee training to ensure that UBP WT4. Open more branches in provinces to reach the
employees have the skills and knowledge to compete growing population of millennials and Gen Z
with digital banks and fintech companies. (S1,S4,T6) customers. (W4,T2)
T5. Climate Change Risks (Strong Typhoons,
Flooding, Drought)
ST5. Use UBP's good reputation to attract new
customers and partners. (S5,T3,T6,T7)
WT5. Increase the number of ATM locations to make
it more convenient for customers to withdraw cash.
(W5,T2)
T6. Emergence of Digital Banks and Fintech
Companies (GCash, Maya, Cryptocurrencies)
ST6. Develop contingency plans to mitigate the
impact of climate change on UBP's operations.
(S1,S4,S6,T5)
WT6. Invest in cybersecurity measures to protect
customer data from cyber threats. (W6,T5)
T7. Entry of Foreign Banks in the PH Market
WT7. Implement a customer service training program
ST7. Continue to develop innovative products and
to improve the consistency of customer service.
services to stay ahead of the competition. (S7,T6,T7)
(W7,T6)
ST8. Use UBP's good customer base to cross-sell
other products and services. (S8,T3,T6,T7)
ST9. Continue to provide financial services to
institutional clients to generate stable revenue.
(S9,T2,T6,T7)
WT1. Increase multimedia advertising to reach a
wider audience and mitigate the impact of market
volatility. (W1,T1)
43
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
A.1 Strength-Opportunities (S-O) Strategies:
SO1. Continue to invest in research & development to develop new products
and services that meet the needs of customers and businesses. (S1, O3, O7)
SO2. Continue to invest in digital banking capabilities to meet the growing
demand for online and mobile banking services. (S2, O3, O4)
SO3. Expand branch network to reach a wider range of customers. (S3, O3, O7)
SO4. Partner with e-commerce companies to offer financial services to their
customers. (S7, S2, O4)
SO5. Offer sustainable banking products and services to meet the growing
demand for environmentally friendly products. (S7, O5)
SO6. Continue to invest in technology to stay ahead of the competition in the
digital banking space. (S1, S2, S7, O6)
SO7. Develop products and services that are tailored to the needs of millennials
and Gen Z customers. (S1, S7, O7)
44
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
SO8. Continue to provide excellent customer service to retain existing
customers and attract new customers. (S4, S5, O3, O7)
SO9. Continue to provide financial services to institutional clients to generate
stable revenue. (S9, O3, O6, O7)
A.2 Weaknesses-Opportunities (W-O) Strategies:
WO1. Partner with social media influencers and other marketing channels to
reach a wider range of customers. (W1, O3, O4, O7)
WO2. Expand branch network in the provinces to reach customers in rural areas.
(W2, W4, O2, O3, O7)
WO3. Open international branches to reach customers in other countries. (W3,
O2, O4, O6)
WO4. Expand branch network in the provinces to reach customers who are not
yet using digital banking services. (W4, W5, O3, O6, O7)
WO5. Develop sustainable banking products and services to meet the growing
demand for environmentally friendly products. (W1, O5)
45
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
WO6. Invest in technology to stay ahead of the competition in the digital
banking space. (W2, W5, O4, O6)
WO7. Develop products and services that are tailored to the needs of millennials
and Gen Z customers. (W1, W2, O7)
A.3 Strengths-Threats (S-T) Strategies:
ST1. Partner with cybersecurity companies to develop innovative solutions to
protect UBP's systems from cyber threats. (S1, S2, S6, S7, T4)
ST2. Use UBP's strong digital banking capabilities to attract customers who are
looking for convenient and secure banking services. (S2, T3, T4, T6)
ST3. Develop products and services that are tailored to the needs of millennials
and Gen Z customers. (S1, S2, S7, T3)
ST4. Invest in employee training to ensure that UBP employees have the skills
and knowledge to compete with digital banks and fintech companies. (S1, S4, T6)
ST5. Use UBP's good reputation to attract new customers and partners. (S5, T3,
T6, T7)
46
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
ST6. Develop contingency plans to mitigate the impact of climate change on
UBP's operations. (S1, S4, S6, T5)
ST7. Continue to develop innovative products and services to stay ahead of the
competition. (S7, T6, T7)
ST8. Use UBP's good customer base to cross-sell other products and services.
(S8, T3, T6, T7)
ST9. Continue to provide financial services to institutional clients to generate
stable revenue. (S9, T2, T6, T7)
A.4 Weaknesses-Threats (W-T) Strategies:
WT1. Increase multimedia advertising to reach a wider audience and mitigate
the impact of market volatility. (W1, T1)
WT2. Expand the number of branches to compete with foreign banks. (W2, T3)
WT3. Open an international branch to tap into the growing market of Overseas
Filipino Workers (OFW). (W3, T3)
WT4. Open more branches in provinces to reach the growing population of
millennials and Gen Z customers. (W4, T2)
47
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
WT5. Increase the number of ATM locations to make it more convenient for
customers to withdraw cash. (W5, T2)
WT6. Invest in cybersecurity measures to protect customer data from cyber
threats. (W6, T5)
WT7. Implement a customer service training program to improve the
consistency of customer service. (W7, T6)
B. Strategic Position & Active Evaluation Matrix (SPACE)
The Strategic Position and Action Evaluation (SPACE) Matrix is a strategic
management tool that assesses an organization's current strategic position by
considering four key dimensions: Financial Strength (FS), Competitive Advantage
(CA), Environmental Stability (ES), and Industry Strength (IS). The matrix provides a
visual representation of the organization's positioning in a two-dimensional space,
helping to identify potential strategic directions.
The SPACE Matrix was developed by Alan Rowe, Richard Mason, Karl Dickel,
and Richard Mann in the 1980s. The framework was introduced in their book "Strategic
Management and Business Policy" published in 1986. (Rowe et al, 1986)
48
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 7
The Strategic Position and Action Evaluation (SPACE) Matrix
Figure 8
UBP’s Strategic Position and Action Evaluation (SPACE) Matrix
49
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 9
UBP’s Strategic Position and Action Evaluation (SPACE) Matrix Analysis
Internal Analysis:
Financial Position (FP)
External Analysis:
Stability Position (SP)
Profitability
Liquidity
Capital Adequacy
Cash Flow
Revenue Growth
7
5
4
6
6
Management Quality
Risk Management
Human Resource Relations
Regulatory Environment
Dependency on Key Customers
-1
-2
-2
-2
-3
Financial Position (FP) Average
5.6
Stability Position (SP) Average
-2.0 Y-Axis: 3.6
Internal Analysis:
Competitive Position (CP)
External Analysis:
Industry Position (IP)
Market Share
Product Quality
Product Diversity
Innovation Capability
Customer Loyalty
-4
-2
-2
-1
-3
Competitive Position (CP) Average
-2.4 Industry Position (IP) Average
Growth Potential
Ease of Entry into Market
Technological Trends
Industry Regulation
Customer Demand
6
5
7
6
5
5.8 X-Axis: 3.4
UBP SPACE Matrix Analysis:
In the SPACE Matrix of UBP, the resulting Y-Axis is 3.6 while the X-Axis is
3.4, reflecting a strategic position in the Aggressive Strategies quadrant, recommending
actions on Market Penetration, Market Development, Product Development,
Integration and Diversification.
50
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
C. Boston Consulting Group (BCG) Matrix
The Boston Consulting Group (BCG) Matrix, also known as the Growth-Share
Matrix, is a strategic management tool that helps organizations analyze their product or
service portfolio based on two dimensions: Market Growth Rate and Relative Market
Share. The matrix classifies products or services into four categories: Stars, Cash Cows,
Question Marks (Problem Children), and Dogs. These categories guide resource
allocation and strategic decision-making. (David & David, 2017)
The BCG Matrix was developed by Bruce D. Henderson, the founder of the
Boston Consulting Group, in the early 1970s. The concept was first introduced in
Henderson's article titled "The Product Portfolio" in the "Perspectives" journal in 1970.
(Henderson, 1970)
The BCG Matrix divides businesses into four categories: Stars, Cash Cows,
Question Marks, and Dogs.
•
Stars: Stars are businesses that have a high market share and are growing
rapidly. They are usually the most profitable businesses in a company's
portfolio.
•
Cash Cows: Cash cows are businesses that have a high market share but are
growing slowly. They are usually very profitable, but they do not have a lot of
growth potential.
51
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
•
Question Marks: Question marks are businesses that have a low market share
but are growing rapidly. They are the most risky businesses in a company's
portfolio, but they also have the potential to become stars if they can gain market
share.
•
Dogs: Dogs are businesses that have a low market share and are growing slowly.
They are usually not profitable and should be considered for divestment.
The BCG Matrix can be used to help businesses make strategic decisions about
where to allocate resources. Stars should be the focus of investment, as they are the
most profitable businesses and have the most potential for growth. Cash cows should
be milked for profits, as they are still profitable even though they are not growing
rapidly. Question marks should be carefully evaluated to see if they have the potential
to become stars. If they do not, they should be considered for divestment. Dogs should
be divested as soon as possible, as they are a drain on resources. (David & David, 2017)
Figure 10
The Boston Consulting Group (BCG) Matrix
52
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 11
UBP’s Boston Consulting Group (BCG) Matrix
Relative Market Share Position
High 1.0
Stars
High 0.20
Industry Sales Growth Rate
Low 0.0
Question Marks
Consumer
Banking
Corporate &
Commercial
Banking
Treasury &
Trust Banking
Low -0.20
Cash Cows
Dogs
UBP BCG Matrix Insights:
In the BCG Matrix for UBP, the Consumer Banking Unit is classified as a star.
This is because it has a high market share and is growing rapidly. The Corporate and
Commercial Banking Unit is classified as a cash cow. This is because it has a high
market share but is growing slowly. The Treasury and Trust Banking Unit is classified
as a question mark. This is because it has a low market share but is growing rapidly.
53
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
The BCG Matrix can be used to help UBP make strategic decisions about where
to allocate resources. UBP should focus on investing in its star businesses, such as the
Consumer Banking Unit. These businesses are the most profitable and have the most
potential for growth. UBP should also milk its cash cows, such as the Corporate and
Commercial Banking Unit. These businesses are still profitable even though they are
not growing rapidly. UBP should carefully evaluate its question marks, such as the
Treasury and Trust Banking Unit. If these businesses can gain market share, they could
become stars. However, if they cannot gain market share, they could become dogs. UBP
should divest its dogs. These businesses are a drain on resources.
•
Consumer Banking: UBP's consumer banking business is its largest SBU,
accounting for about 65% (P34 Billion) of the bank's total revenue. It offers a
wide range of products and services to retail customers, including savings
accounts, checking accounts, loans, credit cards, and investments.
•
Commercial Banking: UBP's commercial banking business is its secondlargest SBU, accounting for about 20% (P9 Billion) of the bank's total revenue.
It offers a wide range of products and services to corporate customers, including
loans, deposits, trade finance, and treasury services.
•
Treasury & Investment Banking: UBP's investment banking business is its
third-largest SBU, accounting for about 15% (P7 Billion) of the bank's total
revenue. It offers a wide range of services to corporate and institutional clients,
including underwriting, mergers and acquisitions advisory, and structured
finance.
54
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
D. Internal-External (IE) Matrix
The Internal-External (IE) Matrix is a strategic planning tool that helps
businesses assess their current situation and identify potential strategies for growth. It
is based on an analysis of both internal and external factors, and it can be used to
identify a company's strengths, weaknesses, opportunities, and threats.
The IE Matrix was created by Bruce Henderson, the founder of the Boston
Consulting Group (BCG). It was first published in 1970 in the book "Perspectives on
Experience." (Henderson, 1970)
Figure 12
The Internal-External (IE) Matrix
55
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 13
UBP’s Internal-External (IE) Matrix
THE IFE TOTAL WEIGHTED SCORES
Strong
4.0
THE EFE WEIGHTED SCORES
High
4.0
Weak
1.0
UBP
Consumer
Banking
Corporate &
Commercial
Banking
Treasury &
Trust
Banking
Low
1.0
IE Matrix Analysis:
Based on the IFE Total Weighted Scores of UBP (Strong and High), UBP’s
Strategic Business Units (SBU); the Consumer Banking, Corporate and Commercial
Banking, and Treasury and Trust Banking are located near Quadrant I, II, IV and V.
These locations suggest Grow and Build Strategies, as well as Hold and Maintain
Strategies.
56
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
E. Grand Strategy Matrix (GSM)
The Grand Strategy Matrix is a management tool used to assess and visualize
an organization's strategic position by considering two key dimensions: competitive
position and market growth. It is a framework that aids in making decisions about the
organization's strategic direction and resource allocation. The matrix categorizes a
company's business units or products into four quadrants, each representing a different
strategic posture: aggressive, competitive, defensive, or conservative. The Grand
Strategy Matrix was invented by Paul Joseph DiMaggio in 1980. It was first published
in the journal "Strategic Management Journal." (DiMaggio, 1980)
Figure 14
The Grand Strategy Matrix
57
STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Figure 15
UBP’s Grand Strategy Matrix (GSM)
UBP's Grand Strategy Matrix
Rapid Market Growth
Quadrant II
Quadrant I
Cons umer Banking
Corporate & Commercial
Ba nking
Weak Competitive
Position
Strong Competitive
Trea sury & Trust Banking
Quadrant III
Quadrant IV
Slow Market Growth
UBP GSM Insights:
The growth rate of Union Bank of the Philippines (UBP) has been steadily
increasing in recent years. In 2022, UBP's net income grew year-on-year, while its total
assets grew by 15% year-on-year. This growth was driven by a number of factors,
including the strong performance of UBP's consumer banking business which includes
retail banking and credit cards, grew by 20% year-on-year in 2022. The expansion of
UBP's digital banking products, and the acquisition by UBP of Citibank's consumer
business in the Philippines which added 1.2 million customers to UBP's customer base
has also helped the company to drive market growth and strong competitive position in
recent years.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
Hence, UBP is situated in Quadrant I of the Grand Strategy Matrix which suggests
the following Strategies:
1. Market Development (continue the focus on current market)
2. Market Penetration (continue the focus on current market)
3. Product Development (continue the focus on current product)
4. Forward Integration (if there are excess resources)
5. Backward Integration (if there are excess resources)
6. Horizontal Integration (if there are excess resources)
7. Related Diversification (if focused heavily to a single product)
F. Tally of Matrices (Summary of Strategies)
This table shows each strategy recommended by the different strategy tools or
matrix that was used. The summary of strategies tallied the strategies that were
recommended by the strategy formulation tools used from the data obtained from the
internal and external analysis.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
The summary suggests that Union Bank of the Philippines (UBP) should pursue
the following Strategy Options: Market Penetration, Market Development, Product
Development, and Horizontal Integration.
Table 11
UBP’s Tally of Matrices (Summary of Strategies)
TALLY OF MATRICES (SUMMARY OF STRATEGIES) FOR UBP
STRATEGY OPTIONS
SWOT
SPACE
BCG
IE
GSM
Total
1 Forward integration
1
1
1
1
4
2 Backward integration
1
1
1
1
4
1
1
1
1
1
5
4 Market Penetration
1
1
1
1
1
5
5 Market Development
1
1
1
1
1
5
6 Product Development
1
1
1
1
1
5
1
1
1
3
Integration Strategies
3 Horizontal Integration
Intensive Strategies
Diversification Strategies
7 Related diversification
8 Unrelated diversification
1
1
Defensive Strategies
9 Retrenchment
10 Divestiture
11 Liquidation
0
1
1
0
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
G. Quantitative Strategic Planning Matrix (QSPM)
The Quantitative Strategic Planning Matrix (QSPM) is a strategic management
tool used to objectively evaluate and prioritize various strategic alternatives based on
their potential impact on an organization's overall objectives and goals. It's a framework
that helps decision-makers compare different strategies and determine which ones are
most likely to lead to success. The QSPM was invented by Fred R. David in 1986. He
was a professor of strategic management at the University of Pittsburgh. (David &
David, 2017)
Table 12
UBP’s Quantitative Strategic Planning Matrix (QSPM)
1
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Continuation of Table 12: UBP’s Quantitative Strategic Planning Matrix (QSPM)
UBP QSPM Analysis:
Based on the result of the QSPM Matrix of Union Bank of the Philippines
(UBP), the Sum Total Attractiveness Score (STAS) of the Market Development
strategy is 5.94, while the Market Penetration strategy is 5.18. Therefore, the
recommended Main Strategy for UBP is Market Development, with considerations to
other strategies in the Tally of Matrices which also garnered high scores, such as
Market Penetration, and Product Development in order to remain competitive in the
industry.
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Table 13
Types of Strategies (Strategic Management Book by F. David, 2017)
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CHAPTER 8
PROPOSED STRATEGIC OBJECTIVE
A. Strategic Objective
Guided by the Vision-Mission of Union Bank of the Philippines (UBP), the
Strategic Objective of UBP is to grow its Market Share to 9% by the year 2025 from its
current market share of 6%, and expand its reach locally and globally, while striving to
become one of the Top 3 universal banks in the Philippines.
B. Financial Objective
To increase the Revenue of Union Bank of the Philippines (UBP) by 2%
annually for the next 3 years.
C. Recommended Business Strategies
In order to achieve the Strategic & Financial Objectives, as a result of the
internal and external analysis through the use of various strategic tools, the UBP should
utilize a combination of Market Development, Market Penetration and Product
Development strategies.
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1. Market Development Strategy:
a. Open an international branch to tap into the growing market of Overseas
Filipino Workers (OFW), strategically in USA where the most number of
Filipino immigrants can be found.
b. Expand branch network in the Luzon, Visayas, and Mindanao to reach
customers in provinces and rural areas, especially the unbanked, and the
growing population of Millennials & Gen Z.
c. Increase the number of ATM in Luzon, Visayas, and Mindanao to make it
more convenient for customers to withdraw cash.
2. Market Penetration Strategy:
a. Partner with social media influencers in Facebook and YouTube to reach a
wider range of customers.
b. Increase multimedia advertising to reach a wider audience and mitigate the
impact of market volatility.
c. Use and highlight UBP's good brand reputation (multi-awarded brand) in
marketing / promotion efforts to attract new customers and partners.
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3. Product Development Strategy:
a. Continue to invest in Research & Development to develop new products and
services that mitigate cyber threats, and meet the needs of customers and
businesses.
b. Continue to invest in digital banking capabilities to meet the growing
demand for online and mobile banking services.
c. Develop products and services that are tailored to the needs of the growing
population of Millennials and Gen Z customers.
d. Continue to provide financial services to institutional clients (SSS, GSIS,
PAGIBIG, and other Govt Agencies) to generate stable revenue.
e. Offer UBP financial services to e-commerce companies for the benefit of
their customers.
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CHAPTER 9
IMPLEMENTATION AND ACTION PLANS
A. Strategy Map
A Strategy Map is a visual representation of an organization's strategy. It is a
tool that helps organizations to communicate their strategy to their employees,
stakeholders, and customers. It also helps organizations to track their progress and
adjust their strategy as needed.
A Strategy Map is divided into Four (4) Perspectives:
•
Financial Perspective: This perspective focuses on the organization's financial
goals, such as revenue growth, profitability, and risk management.
•
Customer Perspective: This perspective focuses on the organization's
customers, such as customer satisfaction, loyalty, and market share.
•
Internal Business Process Perspective: This perspective focuses on the
organization's internal processes, such as efficiency, innovation, and quality.
•
Learning and Growth Perspective: This perspective focuses on the
organization's people, such as employee skills, knowledge, and motivation.
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The four perspectives are linked together by cause-and-effect relationships. For
example, the organization's financial goals can be achieved by improving customer
satisfaction, which can be achieved by streamlining internal business processes, which
can be achieved by investing in employee training. (Kaplan & Norton, 2004)
Strategy maps were developed by Drs. Robert S. Kaplan and David P. Norton
in the early 1990s. (Kaplan & Norton, 2004)
Figure 16
UBP Strategy Map
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Union Bank of the Philippines (UBP) Strategy Map Insight:
Financial Perspective:
1. Revenue Growth
2. Market Share Expansion
Customer Perspective:
3. Global Reach Expansion
4. Customer-Centric Solutions
Internal Process Perspective:
5. Innovation and Agility
6. Digital Transformation
7. Streamlined Operations
Learning & Growth Perspective:
8. Employee Empowerment
9. Culture of Learning & Development
10. Technological Infrastructures
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Alignment of Objectives:
•
The Financial Revenue objective aligns with the Financial Objective, as
increased revenue contributes to achieving both profitability and the strategic
goal of becoming one of the top 3 universal banks.
•
The Market Share Expansion objective aligns with the Financial Growth and
Customer-Centric Solutions objectives, reflecting UBP's intention to capture a
larger market share while providing customer-centric offerings.
•
The Customer-Centric Solutions objective aligns with Global Reach Expansion,
emphasizing the importance of delivering tailored solutions for a broader
customer base.
•
The Digital Transformation objective supports both Internal Process and
Customer objectives by enhancing efficiency and providing a better customer
experience.
•
Innovation and Agility are cross-functional and support various other objectives
by driving innovation, improving processes, and responding to customer needs.
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•
Employee Empowerment and Technological Infrastructures are foundational,
impacting learning, growth, and the organization's ability to deliver cuttingedge services.
This Strategy Map demonstrates the interconnectedness of UBP's strategic
objectives across different perspectives, and highlights how achieving objectives in one
area contributes to success in others, ultimately driving UBP's Vision to become one of
the Top 3 universal banks in the Philippines.
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B. Departmental Action Plans
A Departmental Action Plan is a document that outlines the goals and objectives
of a department, as well as the specific actions that will be taken to achieve those goals.
It is a tool that can be used to guide the department's work and to ensure that it is moving
in the right strategic direction.
Table 14
UBP Action Plans
UBP Action Plans
Department
Objective
Action Steps
•
Marketing and
Customer
Acquisition
Contribute to
the increase in
market share
from 6% to 9%
by 2025.
•
Enhance customer
onboarding experiences.
•
Collaborate with product
teams and Influencers for
customer-centric solutions
Identify and implement
technological
advancements.
•
Research and
Development
Support
revenue
growth and
profitability by
leveraging
advanced
technology.
Develop targeted
marketing campaigns for
key segments, esp. for
Millennials and Gen Z,
using social media
influencers in Facebook
and YouTube
•
Time
Frame
20232025
Collaborate with external
innovators for innovation.
•
Maximize the UBP
Innovation Campus for
R&D.
•
Enhance digital channels
and security measures.
20232025
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Table 15
Continuation: UBP Action Plans
Department
Sales and
Business
Development
Action Steps
Objective
Contribute to
the revenue
increase of 2%
annually over
the next 3
years.
•
Develop cross-selling
strategies and train sales
teams.
•
Expand product reach
through partnerships with
FinTechs and Ecommerce
stores (Shopee, Lazada
etc.).
•
Add more ATM Locations
and Provincial Branches
•
Open an International
branch in USA and other
countries where
numerous OFWs are
located, as part of global
expansion.
•
Implement data-driven
sales strategies.
Optimize processes to
reduce turnaround times.
•
Operations and
Efficiency
Support
profitability by
enhancing
operational
efficiency.
•
Automate routine tasks
using technology.
•
Monitor key operational
metrics for improvements.
Promote a culture of
learning and
development.
•
Human Resources
and Development
Support UBP's
mission of
transformation
and innovation.
•
•
Provide training
opportunities for
employees to become
future-proof / forwardthinkers.
Foster employee
engagement.
Time
Frame
20232025
20232025
20232025
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Table 16
Continuation: UBP Action Plans
Department
Risk Management
and Compliance
Objective
Ensure
sustainable
growth by
managing risks
effectively.
Action Steps
•
Regularly assess and
update risk management
frameworks.
•
Enhance data security
measures.
•
Ensure compliance with
regulations.
Invest in IT infrastructure
upgrades especially for
cybersecurity softwares
and hardwares.
•
IT and
Technological
Development
Enhance
technological
infrastructure
to support
growth and
innovation.
•
Ensure technology uptime
and reliability.
•
Implement cybersecurity
measures.
Time
Frame
20232025
20232025
C. Financial Projections for the Next Three (3) Years
Financial projections are essential tools for businesses to plan and make
informed decisions about their future. They involve forecasting future financial
outcomes based on historical data, market trends, and various assumptions.
(Investopedia, 2023)
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Table 17
Assumptions for Financial Projections (2023-2025)
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Table 18
UBP Income Statement for 2019-2022
Union Bank of the Philippines (UBP)
Income Statement for 2019-2022
(In PHP Billions)
2019
2020
2021
2022
Interest Income
22.30
28.70
29.80
38.90
Non Interest Income
14.30
13.40
15.30
13.30
Revenues / Income
36.70
42.10
45.10
52.20
1.90
8.40
5.80
4.10
34.80
33.70
39.30
48.10
20.30
21.40
24.30
31.50
14.50
12.30
15.00
16.60
0.50
0.80
2.40
3.90
14.00
11.60
12.60
12.70
- Allowance for Credit Losses
Income After Credit Losses
- Total Other Expenses
Net Income Before Tax
- Income Tax Expense
Net Income
Table 19
UPB Income Statement - Horizontal Analysis
Year-on-Year Growth
UBP Income Statement
(Horizontal Analysis)
2020
2021
2022
Interest Income
28.7%
3.8%
30.5%
Non Interest Income
-6.3%
14.2%
-13.1%
Revenues / Income
14.7%
7.1%
15.7%
342.1%
-31.0%
-29.3%
-3.2%
16.6%
22.4%
5.4%
13.6%
29.6%
-15.2%
22.0%
10.7%
60.0%
200.0%
62.5%
-17.1%
8.6%
0.8%
- Allowance for Credit Losses
Income After Credit Losses
- Total Other Expenses
Net Income Before Tax
- Income Tax Expense
Net Income
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Table 20
UBP Income Statement – Vertical Analysis
UBP Income Statement
(Vertical Analysis)
2019
2020
2021
2022
Interest Income
60.8%
68.2%
66.1%
74.5%
Non Interest Income
39.0%
31.8%
33.9%
25.5%
Revenues / Income
100.0%
100.0%
100.0%
100.0%
5.2%
20.0%
12.9%
7.9%
94.8%
80.0%
87.1%
92.1%
55.3%
50.8%
53.9%
60.3%
39.5%
29.2%
33.3%
31.8%
1.4%
1.9%
5.3%
7.5%
38.1%
27.6%
27.9%
24.3%
- Allowance for Credit Losses
Income After Credit Losses
- Total Other Expenses
Net Income Before Tax
- Income Tax Expense
Net Income
Table 21
UBP Balance Sheet (Financial Position) for 2019-2022
Union Bank of the Philippines (UBP)
Balance Sheet for 2019-2022
(In PHP Billions)
2019
2020
2021
2022
Liquid Assets
156.20
181.40
207.50
174.30
Trading & Investment Securities
175.20
205.40
237.70
333.00
Loans & Receivables
392.60
339.50
336.40
479.70
Other Assets
46.80
48.10
49.60
105.70
770.80
774.50
831.10
1,092.70
Deposits
484.30
527.80
570.50
711.30
Other Liabilities
188.40
141.50
148.40
233.30
TOTAL LIABILITIES
672.80
669.30
718.90
944.60
TOTAL CAPITAL FUNDS (EQUITY)
98.00
105.20
112.20
148.10
TOTAL LIABILITIES + CAPITAL FUNDS
770.80
774.50
831.10
1,092.70
RESOURCES (ASSETS)
TOTAL RESOURCES (ASSETS)
LIABILITIES
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Table 22
UBP Balance Sheet (Financial Position) – Horizontal Analysis
Year-on-Year Growth
UBP Balance Sheet
(Horizontal Analysis)
2020
2021
2022
Liquid Assets
16.1%
14.4%
-16.0%
Trading & Investment Securities
17.2%
15.7%
40.1%
Loans & Receivables
-13.5%
-0.9%
42.6%
Other Assets
2.8%
3.1%
113.1%
0.5%
7.3%
31.5%
Deposits
9.0%
8.1%
24.7%
Other Liabilities
-24.9%
4.9%
57.2%
TOTAL LIABILITIES
-0.5%
7.4%
31.4%
TOTAL CAPITAL FUNDS (EQUITY)
7.3%
6.7%
32.0%
TOTAL LIABILITIES + CAPITAL FUNDS
0.5%
7.3%
31.5%
RESOURCES (ASSETS)
TOTAL RESOURCES (ASSETS)
LIABILITIES
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Table 24
UBP Balance Sheet (Financial Position) – Vertical Analysis
UBP Balance Sheet
(Vertical Analysis)
2019
2020
2021
2022
Liquid Assets
20.3%
23.4%
25.0%
16.0%
Trading & Investment Securities
22.7%
26.5%
28.6%
30.5%
Loans & Receivables
50.9%
43.8%
40.5%
43.9%
Other Assets
6.1%
6.2%
6.0%
9.7%
100.0%
100.0%
100.0%
100.0%
Deposits
62.8%
68.1%
68.6%
65.1%
Other Liabilities
24.4%
18.3%
17.9%
21.4%
TOTAL LIABILITIES
87.3%
86.4%
86.5%
86.4%
TOTAL CAPITAL FUNDS (EQUITY)
12.7%
13.6%
13.5%
13.6%
TOTAL LIABILITIES + CAPITAL FUNDS
100.0%
100.0%
100.0%
100.0%
RESOURCES (ASSETS)
TOTAL RESOURCES (ASSETS)
LIABILITIES
Table 23
UBP Income Statement – Financial Projections for 2023-2025
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Table 25
UBP Balance Sheet – Financial Projections for 2023-2025
UBP Balance Sheet Projections
for 2023-2025 (In PHP Billions)
2022
2023
2024
2025
Liquid Assets (Current)
174.30
174.30
174.30
174.30
Trading & Investment Securities
333.00
339.66
346.45
353.38
Loans & Receivables
479.70
487.02
494.50
502.12
Other Assets (Non-Current)
105.70
105.95
106.20
106.45
1,092.70
1,106.93
1,121.45
1,136.25
Deposits
711.30
725.53
740.04
754.84
Other Liabilities
233.30
233.31
233.31
233.32
944.60
958.83
973.35
988.15
148.10
148.10
148.10
148.10
1,092.70
1,106.93
1,121.45
1,136.25
RESOURCES (ASSETS)
TOTAL RESOURCES (ASSETS)
LIABILITIES
TOTAL LIABILITIES
TOTAL CAPITAL FUNDS
(EQUITY)
TOTAL LIABILITIES + CAPITAL
FUNDS
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CHAPTER 10
EVALUATION AND MONITORING
A. The Balanced Scorecard
The Balanced Scorecard is a strategic performance management framework
developed by Robert Kaplan and David Norton in the early 1990s. It's designed to help
organizations translate their strategic objectives into a balanced set of performance
measures that reflect different aspects of the business. The framework goes beyond
traditional financial metrics by incorporating a mix of financial and non-financial
measures, providing a more comprehensive view of an organization's performance and
progress towards its strategic goals. (Kaplan & Norton, 1996)
The Balanced Scorecard consists of four interconnected perspectives, each
representing a key aspect of the organization's operations:
1. Financial Perspective:
•
This perspective focuses on traditional financial metrics that indicate the
financial health and performance of the organization. It includes
measures such as revenue, profitability, return on investment (ROI), and
shareholder value.
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2. Customer Perspective:
•
This perspective emphasizes measures that reflect how customers
perceive the organization and its products/services. It includes metrics
like customer satisfaction, customer loyalty, market share, and customer
retention.
3. Internal Process Perspective:
•
This perspective focuses on the internal processes and operations that
directly contribute to customer and financial outcomes. It includes
measures related to process efficiency, quality, innovation, and
operational excellence.
4. Learning & Growth Perspective:
•
This perspective highlights the organization's ability to learn, adapt, and
innovate. It includes measures related to employee training, skill
development, employee satisfaction, and the organization's capacity for
innovation.
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The Balanced Scorecard framework helps organizations achieve the following
benefits:
1. Alignment: It aligns the entire organization with its strategic objectives by
breaking down high-level goals into actionable measures that various
departments and teams can work towards.
2. Clarity: It provides a clear and comprehensive view of performance across
different dimensions, making it easier for stakeholders to understand the
organization's progress.
3. Balance: By considering financial and non-financial measures, it prevents
organizations from focusing solely on short-term financial results and
encourages a more holistic approach to performance management.
4. Communication: The visual representation of the Balanced Scorecard
facilitates communication of the strategy and its execution to employees,
customers, and stakeholders.
5. Continuous Improvement: The framework encourages a culture of continuous
improvement and learning by highlighting areas that require attention and
investment.
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
The Balanced Scorecard is widely adopted across industries and has evolved
over the years to accommodate different organizational structures and strategic goals.
It's a valuable tool for strategic planning, execution, and performance measurement,
promoting a balanced and well-rounded approach to achieving long-term success.
(Kaplan & Norton, 1996)
Table 26
UBP Balanced Scorecard
UBP BALANCED SCORECARD
PERSPECTIVE
STRATEGIC
OBJECTIVES
PERFORMANCE
MEASURES
(KPI)
2023
2024
2025
Financial
Perspective
1. Revenue
Growth
Annual revenue
growth rate (%)
2%
2%
2%
Finance
Department
2. Market
Share
Expansion
Market share (%)
7%
8%
9%
Marketing
Department
3. Global
Reach
Expansion
Number of
international
branches opened
Customer
Perspective
4. CustomerCentric
Solutions
Internal
Process
Perspective
Learning &
Growth
Perspective
5. Innovation
and Agility
Customer
Satisfaction
Index / Net
Promoter Score
(%)
Number of new
innovative
products/services
launched
RESPONSIBLE
DEPARTMENT
Expansion Team
1
1
1
Customer Service
Dept
90%
91%
92%
Innovation Team
1
1
1
Technology Dept
6. Digital
Transformation
Percentage
increase in digital
transactions
10%
10%
10%
7. Streamlined
Operations
Process
efficiency
improvement (%)
70%
80%
90%
8. Employee
Empowerment
Employee
satisfaction index
(1 Lowest – 5
Highest)
4
4.5
5
9. Culture of
Learning &
Development
Average training
hours per
employee
18
hours
19
hours
20
hours
10.
Technological
Infrastructures
Investment in IT
Infrastructure &
Innovations
(PHP)
5
Billion
6
Billion
7
Billion
Operations Dept
HR Department
Learning &
Development
IT Department
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Chandler, A. D. (1962). Strategy and Structure: Chapters in the History of the
Industrial Enterprise. MIT Press
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David, F. R. (1986). Strategic Management: Concepts and Cases (3rd ed.). Houghton
Miffli
David, F. R., & David, F. R. (2017). Strategic Management (16th ed.). Pearson.
DiMaggio, P. J. (1980). The Structural Constraints of Organizational Environments.
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Henderson, B. D. (1970). The Product Portfolio. BCG Perspectives Journal.
Henderson, B. D. (1970). Perspectives on Experience. Boston Consulting Group.
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Humphrey, A. L. (1967). The Boston Consulting Group: A Retrospective. Boston
Consulting Group.
Investopedia: "Financial Projections" (2023):
https://www.investopedia.com/terms/f/financial-projections.asp
Kaplan, R. S., & Norton, D. P. (1996). Using the Balanced Scorecard as a Strategic
Management System. Harvard Business Review.
Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into
tangible outcomes. Harvard Business School Press.
Rowe, A. J., Mason, R. O., Dickel, K. E., & Mann, R. L. (1986). Strategic Management
and Business Policy. Addison-Wesley.
UBP Annual Report 2022 (2022). Union Bank of the Philippines
https://www.unionbankph.com/company-disclosure/annual-reports
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APPENDICES
Grammarly Check:
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Turnitin Check:
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
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ABOUT THE AUTHOR
Mr. Fabian T. Santos, warmly called as
“Faby”, is a simple yet peculiar young man; a wellrounded person who projects optimism in every
endeavor that he performs. He believes that without
God he is nothing, but with Jesus he can do
everything.
Through perseverance and Divine providence, he
qualified for full academic scholarships from
Highschool to College. He finished his Bachelor’s
Degree in Mass Communication at Pamantasan ng
Lungsod ng Maynila (PLM) with awards and citations. He further took up Dual
Certification for Teaching English as Foreign Language (TEFL) from Norwood
English Institute, and TESDA, as well as, Certificate in English for Journalism from
University of Pennsylvania (Coursera). He also passed the Professional Career Service
Examination of the Civil Service Commission. Currently, he is completing his Master
in Business Administration (MBA) at PLM, and hopes to graduate on 2023.
Mr. Santos’ professional experiences include the following: Instructor at MIT
International School; College Professor & Dean of Student Affairs at South Mansfield
College (Southville International School); Academic Consultant at MSA Review
Center; Historical Researcher & Writer at PVAO, Department of National Defense
(DND); Assistant General Manager at VFP Industrial Complex, DND; Sales Agent of
St. Peter Life Plans; Dealer of King’s Herbal Supplement; and occasional Trader of
Forex, Stocks, and Crypto Currencies.
His latest work experience was an Administrative Officer II, designated as Chief of
Personnel Services, CPO, Army Personnel Management Center of AFP. Throughout
his professional career, he has received various awards, recognitions, relevant trainings,
and schoolings from private institutions, military service commands, and other
government agencies.
Furthermore, Faby has been a voluntary Teacher - Counselor in the Children & Youth
Ministry of the Lighthouse Apostolic Ministry of Pentecost Church (LAMP) since
2003, and an active Member of the Intercessory Prayer Ministry, as well as a Senior
Cluster Coordinator of LAMP M1-MultiCluster. He also participated in Prison
Ministries of LAMP Church at the Maximum Security Compound, New Bilibid Prison
in Muntinlupa City. He is also fond of gardening, poetry writing, photography, flute
playing, and firearms shooting.
A full-blooded Ilocano, born in 1984 to a military father and an educator mother. He is
now joyfully married to the former Jossan M. De Vera, and they have one daughter
(Sanbiel Faith). His ultimate goal is to rejoice in the place where everyone desires to
rest, the place of God, the home we call – Heaven.
All the glory belongs to our Savior Jesus!
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STRATEGIC MANAGEMENT PAPER: UNION BANK OF THE PHILIPPINES (UBP)
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