Strategic management paper on Abacus Capital & Investment Corporation: Revised

Date of Publication

2004

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

Abacus Capital & Investment Corporation (ACIC or the Company ) is a wholly-owned subsidiary of First Abacus Financial Holdings Corporation, a publicly listed company. ACIC represents the culmination of a group of Filipino businessmen and entrepreneurs' objective to further their presence in the Philippine capital markets after years of success in the stock brokerage business. The Company was incorporated and licensed under Philippines laws in January 6, 1995 with the primary purpose of engaging in investment banking activities and started also commercial operations in 1995 when it obtained its Investment House license from the Securities and Exchange Commission.

ACIC is a financial intermediary that functions in the economy as part of the financial services industry. A financial intermediary is an institution that helps to channel funds through an economy by accepting surplus money of savers and supplying that money to borrowers who pay to use the money. The financial services industry is made up of various kinds of financial intermediaries that help consumers and business organizations save, borrow, invest, and otherwise manage money.

This paper will attempt to provide the Company with a strategic plan. The recommended competitive strategies are based on the potential threats and opportunities to the financial services industry, strengths and weaknesses of the Company, broader societal expectations, and the personal values of the key implementers.

The first part of the paper consists of the analysis of the external environment of the company. It analyzes first the present task environment of the financial services industry by using Michael Porter's Five Forces Model. The competitive forces that influence an organization's industry are the intensity of rivalry among existing competitors, the threat of potential entrants, the bargaining power of buyers, the bargaining power of suppliers, and the threat of substitute products. The author then examines the future changes in the macro environment of the Company using the six segments, namely: economic, social, political, technological, ecological, and institutional. From this potential macro environment changes, the threats and opportunities are derived based from the effects of this potential changes to the present task environment of the industry. The external environment analysis also examines the broader societal expectations to the said industry and the various strategic groups that exist within the industry.

The author then proceeds to the internal analysis of the Company through the use of financial analysis and value chain analysis. The two analysis resulted in determining the Company's internal capabilities and lack of internal capabilities. In addition, the internal analysis part of the paper also discussed the various personal values of the key implementers that will be relevant in the determination of the strategies to be recommended in terms of acceptability to the key implementers. The author uses the family business model framework in determining such personal values.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE1183

Shelf Location

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

Physical Description

ii, 139, 3 unnumbered leaves ; 28 cm.

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