CASE

ANALYSIS
The Philippines: Consing takes BPI in a new direction

Members:
Bernardino, Ashley Keith
Cabunsol, Jhon Francis
Fermil Jr. Ferdinand
Gomez, Alexandra Katrina Rae
Hermoso, John Vincent
Viewpoint:
- Manager

Time Context:
- September 27,2019

Problem Statement:
- The Bank of the Philippine Island (BPI) took a new direction following a change in
leadership after the fall of the Marcos administration and the rise of a new middle-class
sector and how in the end it propelled the bank into a prominent position as one of the
leading banks in the Philippines. Consing applied numerous policies so that BPI as a
business could survive through the tumultuous positions that they were subjected to and
how one could apply their experiences to similar business endeavors.

Statement of the Objective:

- To provide innovative and customer-focused banking products and services that value for
their clients, shareholders, employees, and the communities they serve.

Areas of Consideration:

STRENGTHS WEAKNESSES
- Traditional - Reduced deposit rates
- Creativity of Products - Sustained product cycle
- Sufficient Capital
- Affordable deposits
- Nationwide branch network
- A long history and tradition of banking
- Competent Leadership
- Firm Owners (Ayala’s)
- Connections to the Ayala group of
businesses

OPPORTUNITIES THREATS
- Include a younger demographic - The competition between banks
- A expanding economy - Restrictions
- Fresh substitute channels
- OFW'S
Assumption:
- If BPI did not introduce a mobile phone-based savings bank, their goals toward
digitalization will not be met.

Alternative Courses of Action:

ACA 1: BPI should offer a decrease in interest for their long existing clients in terms of loans

Advantages:

● More clients would invest to BPI because the decreasing in interest in terms of loans
● Their long existing clients would be being loyal to BPI because of that offer to them
● Gives an opportunity to invest in BPI

Disadvantages:

● Long-process to the new clients of BPI

● For long term purposes only

ACA 2: BPI should consider joint venture to other banking institutions

Advantages:

● New Market Penetration

● Joint Investment
● Shared costs

Disadvantages:

● Privacy and Information sharing

● Culture clash

ACA 3: BPI could reduce the price of its products to make them more affordable for its target
market

Advantages:

● Cost- effective
● Strong alternative investment since the products are more affordable
● Gives an opportunity to invest in BPI
Disadvantages:

● BPI has been known to charge high interest rates on loans and credit cards
● There are some hidden fees associated with BPI, annual fee for savings accounts
● BPI has been known to have some banking platform, which can be frustrating for
customers

Conclusion: Based on the analysis of Alternative Courses of Action, the conclusion is made that
ACA 3 is the one who can solve the problem.

Decision Matrix (Legend: 3 - is the highest, 2- Neutral, 1- is the lowest)

CRITERIA/ACA: ACA 1 ACA 2 ACA 3

Effectiveness 1 1 3

Efficiency 3 2 3

Easy to implement 2 1 2

Total: 6 4 8

Plan of Action:
 Activities Responsible Person Time Frame

1. Create a strategy that Marketing Department 1 month

suited in reducing
the price of products.

2. Create a team that Manager

will undergo further
research about their 1 month
target market’s
availability in
purchasing their
products.

3. Discuss and Research Team 2 weeks

implement agreed
price of the products.

4. Monitor the Supervisor

production of
product before 3 months
introducing to the
market.

5. Create a report. CEO 1 week