VII.

OBJECTIVES, STRATEGY RECOMMENDATIONS AND ACTION PLANS

A. Strategic and Financial Objectives

1. Strategic and Financial Objectives

Over the next three years, our cooperative aims to achieve the following SMART objectives:

 Increase market position in credit and savings services by 15%.

 Achieve a revenue growth of 20% annually across all product/service categories.
 Enhance cost-effectiveness and productivity growth by 10% through streamlined
operations and strategic resource allocation.

2. Financial Objectives
Our financial objectives include:

 Attaining a net income increase of 25% through improved operational efficiencies and
diversified revenue streams.
 Maintain a profit margin of 15% or higher in all core business segments, including
agricultural supply and appliance sales.

3. Strategic Objectives
The strategic thrusts of our cooperative are designed to:

 Align with our mission to empower local communities through accessible financial
services and diversified products.
 Capitalize on anticipated growth in consumer demand for digital banking and financial
services.
 Leverage historical performance and current competencies to expand our presence in
lodging and health services, catering to evolving consumer needs.
 Consistently apply analytical insights to adapt strategies, ensuring aggressive growth in
competitive sectors while maintaining stability in established markets.
Timeframe

Year Milestones and Activities

Year - Expand credit and savings services to reach 20% more households in the Diocese of
1 Bayombong

- Increase revenue from appliance sales by 15% through targeted marketing

campaigns

- Introduce new agricultural supply lines to cater to local farmers' needs

Year - Launch health, medical, and dental services in collaboration with local healthcare
2 providers

- Enhance digital channels (ATM & POS) capabilities to improve customer

convenience and service efficiency

- Establish a lodging house to support local tourism initiatives

Year - Diversify into bills payment and e-loading services to capture emerging market
3 trends

- Expand consumer and general merchandising offerings to include more diverse

products

Year - Evaluate and optimize existing services based on customer feedback and market
4-5 dynamics

- Strengthen community engagement programs to enhance cooperative visibility and

trust

Recommended Business Strategies

1. This section aims to provide a detailed and comprehensive discussion of recommended
business strategies that align closely with the strategic directions and generic strategies
identified through rigorous strategy formulation tools. It is imperative to avoid generic
or superficial statements and instead, articulate strategies that are specifically tailored
to enable the company or organization to achieve its defined objectives while effectively
addressing strategic issues identified in both external and internal analyses. These
strategies should be deeply rooted in the unique context and challenges faced by the
cooperative, ensuring they are not only SMART (specific, measurable, achievable,
realistic, and time-bound) but also adaptive to dynamic market conditions and
organizational capabilities.
 2. Considering the diverse nature of the cooperative's operations encompassing credit and
savings, consumers and general merchandising, appliance sales, agricultural and farm
machineries supply, health and medical services, lodging house management, digital
channels (ATM and POS), bills payment services, and e-loading, it becomes essential to
group these various business lines and products into cohesive strategic units. Each unit
should have a set of strategies crafted to leverage synergies, optimize resource
allocation, and enhance market penetration and customer satisfaction. This approach
not only fosters operational efficiency but also supports the overall strategic alignment
of the cooperative's diverse portfolio.
3. In cases where the cooperative is exploring diversification into new business areas while
maintaining its core operations, it is critical to delineate distinct sets of strategies.
Strategies for the core businesses should focus on sustaining and expanding market
leadership, enhancing operational efficiency, and fortifying customer relationships.
Concurrently, strategies for new business ventures should outline market entry tactics,
product/service development plans, and resource allocation frameworks that foster
rapid growth and sustainable competitive advantage in emerging markets or segments.
4. To ensure comprehensive coverage and effective execution of the recommended
strategies, it is imperative to include functional-level strategies across key business
domains. These domains include but are not limited to marketing strategies aimed at
enhancing brand visibility, customer acquisition, and retention; sales and distribution
strategies geared towards expanding market reach and optimizing channel
performance; operations/production/manufacturing strategies focused on enhancing
process efficiency, quality control, and supply chain management; finance strategies
aimed at optimizing capital structure, managing financial risk, and enhancing
profitability; and human resources strategies aimed at nurturing talent, fostering a
culture of innovation, and aligning workforce capabilities with strategic objectives. Each
functional strategy should be closely integrated with overarching business goals to
ensure seamless execution and achievement of desired outcomes.

C. Recommended Organizational Strategies

1. Implement Structural Adjustments: Introduce necessary organizational changes to
better align with the cooperative's evolving business requirements and long-term
objectives. This includes restructuring departments or roles to enhance efficiency and
responsiveness across diverse service offerings such as credit and savings, consumer
goods merchandising, appliance and agricultural supply, health services, lodging, and
digital channels.
2. Strengthen Operational Capabilities: Address internal strategic issues by focusing on
enhancing organizational strengths and mitigating weaknesses. Develop targeted
 strategies to optimize operational processes and customer service delivery in areas like
farm machinery supply, medical and dental services, bills payment, and e-loading
services. Leverage the cooperative's historical foundation and strengths identified by its
founders to foster growth and sustainability in the competitive market landscape.

STRATEGY IMPLEMENTATION

Objective/Area Strategic Initiatives Responsible Timeline

Department

Credit and Savings Expand outreach and membership Marketing Q1-Q2 2024
through targeted marketing
campaigns

Introduce new savings products Finance Q3 2024

tailored to different customer
segments

Consumers & Enhance product selection and Operations Q2-Q3 2024

General customer experience in retail
Merchandising outlets

Appliance Sales Partner with leading appliance Sales Q1 2024

brands for exclusive promotions
and sales events

Agricultural Supply Launch training programs for local Operations Q2 2024

farmers on modern agricultural
practices

Farm and Develop an online platform for Digital Q3 2024

Machineries Supply farm equipment rentals and sales Innovation

Health / Medical Expand health services to Community Q4 2024

and Dental Services neighboring communities through Outreach
mobile clinics

Lodging House Renovate lodging facilities and Operations Q2-Q4 2024

enhance hospitality services

Digital Channels Upgrade ATM network for IT Q1 2024

(ATM & POS) enhanced security and functionality

Bills Payment Integrate new biller partnerships to Finance Q2 2024

 expand payment options

E-Loading Launch promotional campaigns to Marketing Q3 2024

increase e-loading transactions

Departmental Action Plans and Programs based on the cooperative's objectives and
strategies

Department/Area Action Plans and Programs

Marketing 1. Enhance brand visibility through targeted

marketing campaigns for each service/product
category.

2. Develop promotional strategies to increase

membership and customer engagement.

Sales and Distribution 1. Expand geographical reach through partnerships

with local businesses and community
organizations.

2. Implement a customer referral program to

incentivize existing members/customers.

Operations/Production/Manufacturing 1. Streamline operational processes to improve

efficiency and reduce costs across all service areas.

2. Invest in technology upgrades to enhance

service delivery and customer experience.

Finance 1. Implement financial management tools to

monitor cash flow and ensure financial stability.

2. Develop investment strategies to maximize

returns on surplus funds.

Human Resources 1. Provide ongoing training and development

programs to enhance staff skills in customer
service and product knowledge.

2. Implement performance management systems

to align employee goals with organizational
objectives.
These action plans and programs are used to achieve the cooperative objectives of the various
services and products it offers and within strategic areas of marketing and sale, operation,
finance, and manpower. Sustain and develop these plans in terms of the particular
requirements and important factors outlined in your strategy development.