Operations Management Essay

Topics: Bank, Financial services, SM Prime Holdings Pages: 15 (4875 words) Published: September 11, 2011
Innovation in Operations Management: Foreign Banking Industry Outline Company: The Banco de Oro, Philippines
Submitted to:
Table of Contents
Brief History of Banco de Oro, Philippines4
Banco De Oro, Philippines5
Vision, Mission and Values5
Internal and External Analysis6
Porter’s Five Forces Analysis6
SWOT Analysis8
Pest Analysis9
Organizational Structure10
BDO Industry Life Cycle11
Organizational Structure12
Industry Phase/Dominant Design12
Leadership Style14
Strategies & Tactics15
Key Performance Indicators15
Supply Chain Management16
Appendix Figures and Tables22

Project Management: Innovation in Operations Management
Banco de Oro, Philippines
The Banco de Oro Unibank, Inc (BDO) is recognized as the Philippines’ top performing banks in terms of assets and total deposits; owned by the SM Group of Companies, one of the largest conglomerates in the Philippines. As of December 31, 2008 in terms of assets, BDO had a total of PhP808.0 billion, compared to Metrobank Philippines with PhP758.5 million, and Bank of the Philippine Islands (BPI) at PhP658.4 billion. In terms of deposits, BDO during that time had PhP643.3 billion, Metrobank had PhP585.8 billion, and BPI at PhP541.2 billion (James, 2009). As of December 31, 2010, BDO had 726 operating branches and over 1,400 automated teller machines strategically located throughout the Philippines (Corporate Information, 2011

BDO’s products and services are diversified and include retail banking, corporate, commercial consumer and SME loans, treasury services, trust services, credit cards, corporate cash management and remittances services. BDO subsidiaries offer leasing, financing, investment banking, private banking, bank assurance, insurance, and stock brokerage services (Corporate Information, 2011). BDO subsidiaries and affiliates include BDO Private Bank Inc., BDO Strategic Holdings Inc., BDO Elite Savings Bank Inc., BDO Insurance Brokers Inc., PCIB Europe, S.P.A., BDO Remittance (USA) and Express Padala Frankfurt GmbH, BDO Card Corporation, BDO Realty Corporation, BDO Securities Corporation, Generali Pilipinas Holding Company, and SM Keppel Land (Corporate Information, 2011).

The Wright Quality Ratings have measured key individual components of financial institutions, such as (i) investment and acceptance, (ii) financial strength, (iii) profitability and stability, and (iv) growth. These quality ratings are grounded on established principles utilizing 5-6 years of corporate records and other investment data. These ratings are made up of three letters and a number, reflecting the qualitative measurement of standards; A = outstanding, B = excellent, C = good, D = fair, L = limited and N = not rated. The number part of the rating is based on the annual corporate growth based on revenue, modified growth rates of equity, dividends and sales per common shares; with 0 being the lowest and 20 the highest. Wright’s highest quality ratings would be AAA20 (WinthropCorporation, 2008). BDO’s Wright Quality Rating as of December 31, 2010 was at BAD6; liquidity as excellent, financial strength as outstanding, profitability at fair and growth at 6 (Corporate Information, 2011). Brief History of Banco de Oro, Philippines

BDO started out as a small thrift bank known as Acme Savings Bank in 1968 with only two branches within Metro Manila. In 1976, Acme Savings Bank was bought by the Sy Group of Companies (currently the SM Group of Companies), and renamed as Banco de Oro Savings and Mortgage Bank. In 1994, it was converted into a commercial bank and renamed Banco de Oro Commercial Bank. In 1997, BDO entered the insurance services and in 1999 diversified its insurance services through its partnership with Assicurazoni Generali abd Jerneh Asia Berhard – practiced...

References: BDO. (2011, March 10). BDO holds SME forum for Bulacan clients. Retrieved April 9, 2011 from bdo.com.ph: http://www.bdo.com.ph/news.asp
Bigger. Wider. Better. (2007, March 21). Retrieved April 9, 2011 from BDO: http://www.bdo.com.ph/News/12846.htm
Corporate Information
Daquiz, S. R. (2005, September 26). Teresita Sy-Coson- Taking Bold Steps. Retrieved April 10, 2011 from highlandsprime.com: http://www.highlandsprime.com/hpi/index.php?p=886&type=2&sec=88&aid=3095
Davis, J
Farol, P. (2009, December 1). Poor customer service at Banco De Oro and Union Bank. Retrieved April 8, 2011 from http://asiancorrespondent.com: http://asiancorrespondent.com/25718/poor-customer-service-at-banco-de-oro-and-union-bank/
GMANews. (2010, September 18). Fitch ratings give Sy banks BDO, Chinabank a 'C/D '. Retrieved April 9, 2011 from gmanews.tv: http://www.gmanews.tv/story/202220/fitch-ratings-gives-sy-banks-bdo-chinabank-a-cd
James. (2008, July 18). Discourteous bank managers and staff of BDO. Retrieved April 14, 2011 from pinoymoneytalk.com: http://www.pinoymoneytalk.com/banco-de-oro-bad-service/
PMTForum. (2007, July 3). BDO internet banking. Retrieved April 9, 2011 from pinoymoneytalk.com: http://www.pinoymoneytalk.com/forum/index.php?topic=7015.0
Segil, L
WinthropCorporation. (2008). Wright quality rating - explanation. Retrieved April 9, 2011 from http://wrightreports.ecnext.com: http://wrightreports.ecnext.com/coms2/page_rating
Appendix Figures and Tables
Figure 2. Three-Dimension Model of Business Development from Davis, et. al (1996)
Figure 3
Figure 4. Phases of Technology by Tushman and Rosenkopf (1992)
Figure 5
Figure 6. Financial position from bdo.com.ph (BDO, 2011)
Figure 7
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