A strategic study on Prime Bank Incorporated

Date of Publication

1997

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

In 1995, ownership was acquired by investors from Manila. Subsequently, its capitalization was increased to P160 million.

During 1995, Prime Bank experienced tremendous growth in resources, deposits and capital. Its network of branches expanded to twenty-two at the end of 1995.

But in spite of this achievement, Prime Bank did not utilized its available resources effectively and efficiently (as shown in the financial ratios ROI and ROE) compared to its competitors in the thrift banking industry.

Subsequently, Prime Bank wasnt able to capture a significant portion of the working class considering that Prime Bank was only able to achieve a 60,000 client base at the end of 1995 in relation to the 26 million potential clients within the working class market.

In response to these failures and deficiencies, I propose that Prime Bank should continue its focus on the working class market since Prime Bank does not have sufficient base & resources that will enable it to successfully penetrate and support the financial demands of the corporate client market but with a different approach.

Prime Bank will have to expand its network of branches to at least 60 by the end of 1996, reaching as far North as the Ilocos Region and reaching as far South as Southern Mindanao so that Prime Bank will be able to effectively reach its target market throughout the country with more ease.

Moreso, Prime Bank has to expand the range of its services which has to include export-import facilitation, portfolio management, trust and estates management, foreign currency facilitation, financial and project consultancy, to ensure that it will be able to meet the growing and changing needs of its market in lieu of the expected improvement in the Philippine economy.

Prime Bank will have to aggressively advertise its services to increase market awareness. At the same time, it also has to utilized promotional campaign (e.g FEBTCs YES TO MILLIONS) to further entice the market to try the services of Prime Bank.

The introduction of an incentive plan for the entire organization, which includes the branch personnel and the support personnel, is deemed necessary so as to ensure the full cooperation of the entire organization. Subsequently, profit sharing will be abolished temporarily in line with the motivational approach that Prime Bank will be adopting.

The purpose of these functional activities is to help Prime Bank, attain its financial objective of achieving a 200 percent growth in Net income After Tax at the end of 1997 in relation to its 1995 NIAT of P11.95 million and attain its strategic objective of achieving at least a 200,000 client base by the end of 1997 in relation to its 1995 client base of only 60, 000.

Given the continuous real growth of the Philippine economy, which is a result of the remarkable expansion in exports, increased investors confidence in the country, import liberalization in addition to Prime Banks internal strengths, which includes its ability to facilitate the smallest loan availment with the shortest processing time as compared to its competitors I am very confident that Prime Bank will achieve all the objectives that was set to be realized by the end of 1997.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE0139

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

80 leaves ; 28 cm.

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