Rural Bank of Suares Case Study

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Case
 #1
  Rural
 Bank
 of
 Suares
  I. Point
 of
 View
  We
  would
  take
  the
  point
  of
  view
  of
  a
  controlling
  stockholder
  of
  Rural
  Bank
  of
  Suares.
  By
  using
 this
 point
 of
 view,
 we
 would
 have
 a
 more
 cautious
 in
 the
 process
 of
 decision
 making
  because
  it
  would
  be
  like
  our
  money
  which
  would
  be
  put
  on
  the
  proposed
  investment.
  Having
 a
 role
 playing
 would
 give
 us
 a
 feel
 of
 what
 it
 feels
 like
 to
 be
 involved
 in
 these
 kinds
 of
  situation.
  II. Analysis
 of
 the
 Case
 Situation
  MacroEnvironment
   Economic
 Growth
 (assuming
 that
 the
 P2,000,000
 investment
 had
 given
  good
 returns)
  Industry/Environment
   No
 competition
 in
 the
 town
 of
 Suares
   Market
 opportunities
 for
 loans
 and
 deposits
 in
 the
 capital
 city
   Stable
 demand
 for
 bank
 services
   Existence
 of
 huge
 and
 small
 bank
 players
 in
 the
 capital
 city
  Company
   Catering
 small
 loans
   23
 years
 of
 existence
   Numerous
 current
 borrowers
 are
 residents
 of
 the
 capital
 city
   Location
 is
 25KM
 away
 from
 the
 capital
 city
 
  III. Problem
 Statement
  Expansion
 in
 banking
 and
 other
 activities
 in
 Suares
 is
 no
 longer
 feasible.
  There
 are
 uncollected
 loans.
  Larger
 market
 for
 loans
 and
 deposits
 in
 the
 capital
 city
  The
 bank
 is
 too
 far
 from
 the
 capital
 city
 where
 some
 customers
 are
 living
 
  The
 main
 problem:
 What
 actions/development
 must
 be
 implemented
 for
 the
 bank’s
 23
 years
 of
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 existence
 in
 the
 town
 of
 Suares?
 
  IV. SWOT
 Analysis
  STRENGTHS
  
 has
 built
 a
 good
 reputation
 in
 Suares
   caters
 small
 loans
   has
 been
 in
 the
 business
 for
 23
 years
 

 loyalty
 of
 customers
   good
 service
  WEAKNESS
   has
 no
 other
 branch
   limited
 loanable
 funds
   nameless
 in
 the
 capital
 city
   no
 readily
 available
 funds
 for
 expansion
  OPPORTUNITIES
   Many
 borrowers
 are
 residents
 of
 the
 capital
 city
   Huge
 bank
 players
 don’t
 entertain
 small
 loans
   Available
 market
 niche
   Larger
 market/population
 in
 the
 capital
 city
  THREATS
   Existence
 of
 competitors
 in
 the
 capital
 city
 (big
 banks
 in
 terms
 of
 credibility;
  small
 banks
 in
 terms
 of
 catering
 small
 loans)
   25
 kilometers
 away
 from
 the
 capital
 city
  *Refer
 to
 Table1
 for
 the
 SWOT
 Matrix
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