Case analysis SOM

Topics: Management, Bank, Commercial bank Pages: 5 (576 words) Published: October 7, 2014

Case Study Analysis

In Partial fulfillment of the requirements in the subject Strategic Operations Management Submitted by:
Mark Henry Santiago
Riobelle Faye Simbillo
Julie Ann Oliveros
John Eric Reyes
Nazareno Potot
Shiela Marie Chiu
Glenn Bacal
Frences Mae Hilapad
Submitted to:
Prof. Rodel Pomentil

Date: October 3 2013
Viewpoint: Top Management / Owner(s)
Time Context: Present Time
CASE: President Celso Valmores in his speech before the board members said: “I would like to seek your opinion regarding a major initiative of our bank, which is part of the implementation of Golden Opportunity Commercial Bank’s (GOCB) renewed strategy to be the bank of choice in terms of consumer banking. To be able to finance this new strategy and to aggressively brought about by increasing mortgage default payments, valued at P5.0 billion. This move is designed to fully extinguish our debts. Create new and dynamic bank and hopefully leave us with excess liquidity for the start of endowment fund. This move I am referring to is heeding to the proposal of Ms. Marjorie Trinidad. Banko Sentral ng Pilipinas (BSP) Managing Director to downgrade the status from commercial to thrift bank. Such move will change our capitalization structure.” The meeting was called to discuss the GOCB problem and develop a plan to reinvigorate the ailing bank and at the same time address the BSP’s findings. GOCB is requesting for P10 billion in emergency loans with BSP. I – Statement of the Problem

What will be the best course of action to solve all financial, human resource and customer related problems? II – Statement of Objective
To possibly revive or give up the company with the most profitable option available in 1 and a half year. III – Areas of Consideration
SWOT Analysis
Strength – Strong Reputable Brand Name, Financial Strength, and a Strategic fit. Weakness – Undercapitalized, Illiquid and Unprofitable.
Opportunities – low-cost housing loans.
Threats – Unsatisfactory status in the review of BSP findings. IV – Assumption
BSP will approve our request for the 10 billion emergency loans. V – Alternative Courses of Action
ACA-1: Sell this business to other companies.
ACA-2: Using BSP 10 billion emergency loans to fully revive the bank. ACA-3: Declare Bankruptcy

VI – Analysis

VII – Conclusion

1 – Good
2 – Better
3 – Best

As the table states above, the best alternate course of action that the analysts should use is the Alternate Course of Action-2 (ACA-2), having the highest probability rate of 8. VIII – Plan of Action

Get the 10 Billion Emergency loans from BSP.
Finance Department.
1 – 2 days

Pay-off all debts worth 5 Billion
Finance Department
1 week
Recapitalize the bank
Top Management
1 week
Downgrade the status from commercial to thrift bank.
Top Management
3 weeks

Selling of commercial spaces and attaining rural spaces.
Operations Department
1 month
Selling of excess machineries (ATM’s, etc.)
Operations Department
2-3 weeks
Dismissal of excess employees
Human Resource Department
1-3 weeks
Reinstating of the incentives and benefits for employees
Human Resource Department
1 week
Re-evaluate remaining and new employees by 1-1 interview.
Human Resource Department
1-2 weeks
Reorganize the organizational structure.
Top Management
1 month
Re-advertise the bank’s low housing loans.
Marketing Department
2-3 months
Ask for re-evaluation from BSP to change the Unsatisfactory status Top Management
1 year
Ensure customer service and quality management.
Operations Department
Continuous training and development of employees.
Human Resource / Operations Department
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