A corporate strategy for Union Bank of the Philippines
Date of Publication
1999
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
Union Bank of the Philippines is a universal bank that competes in the financial services industry. Its corporate vision is to become one of the top five universal banks in the Philippines by the turn of the century. The bank appeared to be on its ways to its goal registering high growth levels enabling the bank to become one of the top 15 banks in the country after only 16 years since the start of its commercial banking operations.
However, certain changes in the macro-environment triggered by the depreciation of the Thai Baht last July 1997, together with changing social, political and technological forces have greatly changed the complexity of competition in the industry and has given rise to new opportunities and threats. Union Bank has to therefore reexamine existing objectives and strategies and formulate new ones to adapt to changes in the environment.
Company analysis showed that the company possess certain strengths such as financial strength, strong management, a full array of products and services, strategic alliances, proprietary technology as well as a leadership positions in financial products. These are internal capabilities that allow the bank to take advantage of the different opportunities yet protect itself from the various threats in the industry. However, the bank should be aware that it also certain weaknesses that it would have to convert and develop into strengths.
To determine the ways in which the bank can achieve a sustainable competitive advantage, the value chain framework is used to analyze the different value activities that are the source of competitive advantage. The underpinning competences that give the bank a distinct competitive advantage from its competitors have been identified as speed of response, either in the processing transaction requests or handling of customers complaints, convenience, customer car and service. The different value activities are the primary activities of operations, marketing and services. These are supported by value activities of human resources and technology development.
The strengths, weaknesses, opportunities and threats act as the basis for the formulation of corporate strategies to achieve corporate objectives. Using this framework for analysis, it is recommended that the company implement the following corporate strategies namely: increase fee base income, do further decentralization, continue to develop new products and services, improve asset and liabilities growth, divest or cease to offer non profitable products and services, continue to invest in technology, expand job authorities and job responsibilities of existing employees, create a remedial management division, use formula facilities and adopt a bare bones/no frills strategy.
For an effective implementation of the proposed strategies, the 7-S framework is used to determine the necessary changes that should be done as regards to existing structure, systems, staff, skill, style and shared values of the company.
Abstract Format
html
Language
English
Format
Accession Number
OCE0151
Shelf Location
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
Physical Description
118 leaves ; 28 cm.
Recommended Citation
Ng, M. O. (1999). A corporate strategy for Union Bank of the Philippines. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/2209
