I. Executive Summary
The Metropolitan Bank and Trust Company, commonly known as Metrobank, is the largest bank in the Philippines in terms of assets and is also the largest Philippine bank in terms of overseas presence. It has a diverse offering of financial services, from regular banking to insurance. Considering the EFE, Metrobank’s current competitive position or business strength in the industry is above average. Overall, it has been coping up well with the factors which can positively or adversely affect its financial positioning, especially in the current period.
Based on the IFE result, the highest internal strength of Metrobank is that being resilient, well capitalized, and profitable, right now Metrobank is one of the top 2 in terms of assets and deposit.
On the other hand the highest internal weakness of Metrobank is the lack of investment in technology and operations infrastructure to support volume growth for internet banking and cash management, areas where they can seize market share and improve operational efficiency. Right now BDO and other companies are having major renovations on their banks providing new e-commerce. Collectively, on the EFE and IFE matrices, with the resultant scores at 3.05 and 2.68 respectively, the combined effect of the external and internal analysis falls in cell II for IFE TWS of 2.68 and cell I for EFE TWS of 3.05. The result of the internal/External Matrix can be described as grow and build strategies; Intensive (market penetration, diversification and product development) or integrative (backward integration, forward integration and horizontal integration) strategies can be most appropriate to this division. II. Input Stage
A. Industry Analysis
The banking industry is and always has been one of the most important aspects of all industries. The reason being, every other industry needs banks to take part in any investments or financial movements as a way to better their position in their industries. Banking is big business, everywhere in the world they are big and powerful, and Bank offers basically the same product to the same customer base .So what makes a consumer choose one bank over another? Within the banking industry there are a lot of competitors which offer the same services but for some reason some are doing better than others. Not all banks make huge profits but banks position themselves to attract customers through product differentiation, pricing, marketing and promotion and this makes the difference. A.1 Economic Forces
Inflation and employment rates
The primary objective of the Metrobank policy is “to promote price stability conducive to a balanced and sustainable growth of the economy”. The adoption of inflation targeting framework of monetary policy in January 2002 is aimed at achieving this objective. Inflation targeting is focused mainly on achieving a low and stable inflation, supportive of the economy’s growth objective. This approach entails the announcement of an explicit inflation target that the BSP promises to achieve over a given time period. The government’s inflation target is defined in terms of the average year-on-year change in the consumer price index (CPI) over the calendar year. The inflation targets have been set at 3.5 percent with a tolerance interval of + 1.0 percentage point for 2009 and 4.5 percent with a tolerance interval of + 1.0 percentage point for 2010. The BSP has a number of monetary policy instruments at its disposal to promote price stability. To increase or reduce liquidity in the financial system, the BSP uses open market operations, accepts fixed-term deposits, offers standing facilities and requires banking institutions to hold reserves on deposits and deposit substitutes. The Development Budget and Coordination Committee (DBCC), an inter-agency economic planning body together with the BSP sets the annual inflation targets. The...
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