Decision Matrix

Variables Alternatives
Efficient Collection of loans Reduction of branches
Risks 4 3
Costs 3 1
Benefits 5 4
Ease of Implementation 1 2
Total 13(highest) 12

Conclusions:
The main problem of Eastern Bank is inefficient collection of loans, followed by the presence of many satellite branches.

Recommendations:
At the moment, Eastern Bank should prioritize efficient collection of loans. An action plan of Gantt chart can be prepared. Second,
Eastern bank should study seriously the strategy to undertake structural changes in the form of reduction of its satellite branches.
 Action Plan: Efficient Collection of loans

Activities Objectives Divisions Persons Responsible Costs Time

Formation of regional collection teams To form dynamic and result-oriented Finance Department Finance Officers, Collection Estimated 2 weeks
collection teams Department
Pxxxx

Review existing loans that are due for To review existing loans that are Finance Department Finance Officers, Collection Estimated 2 months
collection overdue for collection Department
Pxxxx
Strategize collection of loans To design different ways to collect Collection Project Team Collection Team Leaders Estimated 6 months
outstanding loans
Pxxxx
Periodic evaluation of collection progress To review monthly the extent of Collection Project Team Collection Team Leaders Estimated Monthly
collection undertaken.
Pxxxx

Gantt Chart Year 20________

Activities Jan Feb March April May June July August Sept Oct. Nov. Dec.
X
Formation of regional collection
teams
x x x x
Review existing loans that are due
for collection
x x x x x x x x x x x x
Strategize collection of loans
x x x x x X x x x
Periodic evaluation of collection
progress
Having studied the factors existing in the environment, namely, social, political, legal, economic, technological, and environment, and having understood the effects of these
factors, the change in organizations and the need to pursue organization development are to be studied next.
Doing Strategic Analysis d. Can anyone easily engage in the same business as yours? Does the industry have
Understanding the basic concepts of strategic management is one thing but the trade associations that can help, if not protect, the smaller ones?
ability to apply all these principles and approaches is another thing. Strategic analysis, e. Are your products and services still relevant or have they outgrown their usefulness?
when appropriately and smartly applied, is a powerful tool of competitiveness. It may even f. Is the industry regulated to prevent unethical competition?
be "the difference" in becoming successful or otherwise. Thus, undertaking strategic g. As a whole, is the industry growing? How fast is it growing? Can the industry supply
analysis has to be done purposively and carefully coupled with an open mind to possible the demand for such products and services?
changes and step-ups. Emphasis in the conduct of strategic analysis should be on identifying h. If the industry is declining, what steps can be undertaken to address this dismal
industry growth and profit potentials. The approach in doing strategic analysis is holistic. situation?
Although interlocking, each of the phases involved is inclusive with broad implications.
Step 1:
The first step in strategic analysis is to carry out an industry analysis which is a
cognitive approach to evaluating the business environment where the company is part of.
The best way to conduct an industry analysis is to use Porter's Five Forces of Competition.
The parameters include the bargaining power of customers, bargaining power of suppliers,
ease of entry of new firms, availability of substitute products, and rivalry among existing
firms. Refer to Chapter 3. Some issues that can help you make a useful industry analysis
are the following:
a. Who are your customers? Have they changed in terms of their buying capabilities?
b. Are your suppliers very powerful? Have they increased their prices or depreciated
in quality, thus making your products and services less attractive to the consumers?
c. Who are your major competitors and what are their current market shares? Are
you a market leader, a challenger, or a follower?
Key Success Factors Step 2:
Key success factors are variables that are significant to realizing the set goals of the The next step to industry analysis while taking care of key success factors is business
company. These success factors include satisfying customer requirements, meeting strategies analysis. Business strategies analysis is the process of reviewing the strategic goals
competitive factors, obeying and respecting business regulations/industry standards in the set by the company, the capabilities and skills of its people resources, the business strategies
business, satisfying resource requirements to implement competitive strategy and other formulated, and the performance metrics established.
technical requirements to build a competitive position. Some considerations to be taken
a. Regularly, companies revisit strategic goals. They are reviewed in terms of their
seriously are the following:
importance and weight to the current business positioning of the company.
1. Customer requirements need to be satisfied. These needs and wants, including
demands, continue to mature and become more challenging. Thus, companies They are also analyzed in terms of whether they have been completely or partly
2. In this consumer-oriented environment, customers expect more than minimum achieved. These goals include mainly functional, operational, and more importantly,
requirements. They expect quality goods, efficient service, and speed in serving b. Once these goals have been reset, the capacities and proficiencies of the employees
customers. cheaper prices, attractive packaging, and valuable after-services. in delivering results and supporting strategies are looked into. For example, the
Better relationships toward customers are important. supply chain processes should be efficient enough to make the needed inventory
3. Doing business is following strictly government procedures and industry SKUs at minimum ordering and carrying costs, manufactured to an extent where
directives. Aside from putting order in the business world, conformity and wastes and inefficiencies are optimally minimized, stored, and handled
respect to these sets of laws level the playing held and place every business on systematically for orderly dispatching, and widely marketed for delivery to end
equal footing. In that case, a common reference point is put in place where users. Here, value chain analysis is conducted.
exceptions are not allowed and market competition is free.
c. The value chain analysis is effectively complemented by the conduct of marketing
4. Because of the demands of doing business, resource requirements are becoming analysis. This involves an assessment of a distribution function that is cost. effective,
more difficult to satisfy. For example, labor resources are harder to find due to a delivery function that is timesaving, a collection function that is highly positive,
global demands. Competition requires more capital investments; economies of and a customer service that is largely favorable. Having analyzed these processes,
scale bring down prices, and expansion policies have become more urgent. The the formulated strategies are assessed in terms of their being realistic and attainable.
hyper competition reality has made doing business tougher in one global market. Refer to Chapter 4 for a review of these different types of strategies. With these
5. Lastly, technical and technological requirements place undue demands on doing strategies are performance metrics that have been extensively discussed earlier.
business. Information technology has become commonplace, product
development has become faster, and research and development has become a
necessary component of businesses.
Step 3:

The third step includes an external audit of the environment. As mentioned earlier in Step 5:
Chapter 2, social, economic, political, technological, and environmental forces may or may
The last phase of strategic analysis is recommendation. Recommendation
not influence a company. Thus, a PEST analysis is undertaken. Note that only those forces
includes a rewriting, reformulation, or simply a reinforcement of the company's
that affect the company should be taken into consideration.
objectives followed by the respective strategies that wail bring about a more
Step 4: consequential and competitive company. Now you are ready to conduct a strategic
analysis for your company. If it is not your company. do not forget to start with a
The fourth step in strategic analysis strategy evaluation. This is the process of assessing background of the company you are studying.
the strategies implemented. Including an enumeration of critical issues and an Identification
of a company' competitive advantage. if possible.
a. The process of strategy evaluation is aptly implemented by the application of SWOT Exercises ( Cases)
analysis. As mentioned earlier. the Internal assessment leads to an understanding of
the company's strengths and weaknesses while the external assessment leads to an Directions: Study each case in the succeeding pages. Apply the case
identification of the company's threats and opportunities. Here, the strengths are
reinforced. the weaknesses are decreased. if not eliminated, the opportunities are
method using the table below s a guide:
taken advantage of, while the threats are handled expertly.

b. Another assessment that can be applied is the balanced scorecard. A strategy tool,
it illustrates four important perspectives for performance measurement: learning
and growth. customer, internal process, and financial. Learning and growth
perspective refers to resources like human capital, information capital, and
organization capital. Customer perspective focuses on product and service
attributes, relationships and image projection, and branding. Operational,
customer, innovation, and regulatory processes constitute the Internal process
perspective. Lastly, the financial perspective emphasizes both productivity and
growth strategies. Refer to Chapter 6. In the process of applying these two
evaluation instruments, critical issues are consequently Identified.

c. Another important strategy evaluation analysis to be implemented is the

identification of the company's competitive advantage. If possible, a closer study is
needed to pinpoint what products, services, traits, and features can be enhanced to
establish the company's competitive advantage in relation to its competitors. What
intellectual capital assets can the company zero in to come up as unique and
different? Refer to Chapter 8 for the discussion on strategic asset management.
Exercises (Cases)
Directions: Study each case in the succeeding pages. Apply the case method using the table below s a guide:
Title of the Case:
Time Context:
State the period of the study
Perspective:
From whose point of view are you looking at the problem?
Central Issues:
What is the MAIN PROBLEM?
Statement of Objectives:
Write your set of objectives.
Areas of Consideration:
Based on your set objectives, what are your areas of considerations?
Alternative Course of Action:
Having determined your major areas of consideration, what are your alternative courses of action.
Decision Matrix:
In assessing each alternative course of action, a rating scale from 1 to 5 is used (with5 being the highest and 1, the lowest), For risks involved, 5 is the least
risky and 1 is the most risky; for cost to be incurred, 5 is the least costly and 1 is the most costly; for benefits derived, 5 is the most beneficial and 1 is the least
beneficial; and for ease of implementation, 5 is the easiest to implement and 1 is the most difficult to implement. Add to get the total and the one that yields the
highest accumulated point score determines your final decision. Your final decisions is your conclusion.

Variables Alternatives
1 2 3

Risks

Costs

Benefits

Ease of Implementation

Total
 Conclusions:
Recommendations:
Action Plans:
Make an action plan. It should include separate columns for activities to be implemented, objectives to be attained, the department, division unit involved, the persons
responsible, the cost involved and other resources needed, and the time frame.
Activities Objectives Division Persons Responsible Costs Time
1.
2.
3.
Gantt Chart:
Another alternative is to prepare a Gantt Chart. This includes the operational time frame of your activities
Activities Jan Feb March April May June July August Sept Oct. Nov. Dec.
1.
2.
Case 1.
Case 1: St. George University
St. George University is a prestigious institution of a higher learning in the country. It offers preschool, secondary, and tertiary education. Its undergraduate
programs include business course like accounting, marketing, economics, and management; science courses like biology, nursing, medical technology, chemistry,
mathematics, zoology, and botany; and liberal arts courses like psychology, communication arts, foreign service, interdisciplinary studies, and political science. In
existence for more than a hundred years, the university has created its own quality brand image. Although conservative in its management outlook, it has successfully
sustained enrollment figures. Situated in a large city, it lies a four-hectare land. Its rooms are all air-conditioned and its laboratory facilities are complete. Its campus has
been given a lift to provide an atmosphere conducive to learning. Tuition fees are competitive. Moreover, the university has dormitories to accommodate students from
the provinces.
Recognized by both the Commission on Higher Education (CHED) with an autonomous status, and the Philippine Accrediting Association of Schools, Colleges,
and Universities (PAASCU) with Level III accreditation level, it is considered one of the best universities in the country. St George University has every reason to be
proud of its accomplishments. Its roster of successful alumni is impressive. They are all over the world- doctors, lawyers, accountants, engineers, scientists, educators,
executives, government officials, community leaders, ambassadors; name it and the University can proudly call them its own.
However, the past few years turned out to be the most challenging moments in history of St. George University. With the worsening economic conditions in the
country, the University is seeing a slow consistent decrease in enrollment. A number of students are transferring to other Universities; good and professionally competent
faculty members are “moonlighting” in other institutions of higher learning; salary rates are uncompetitive and its modern facilities have aged with time. Furthermore,
there is low morale among teachers and students and the leadership of top and middle school administrators appears to be “wanting” , thus causing relationships to turn
sour. As a result, one or two course programs were removed from the university brochure. These precarious concerns cause administrators, faculty, students, staff, and
alumni grave trepidations.
As University President, what strategies will undertake to deal with the situation? Use the case method to come up with an action plan.

DUE SUBMISSION MONDAY SEPT 16, 2024