Strategic Plan:

The Power of Synergy

Rizal Commercial Banking Corporation (RCBC)
A. The context in which the plan is being developed

This plan is to develop the corporate strategy of Rizal Commercial Banking

Corporation (RCBC). Rizal Commercial Banking Corp (RCBC) is a financial and
commercial banking service provider that offers commercial, corporate and consumer
banking, treasury, cash management and remittance products and services. The company
offers electronic banking services such as internet banking, online shopping, mobile
banking, phone banking, automated teller machines, and RCBC eBiz center. It also
provides investment banking services, wealth management and financial advisory,
foreign exchange brokerage, credit card services and retail banking services. RCBC's
cash management services comprise check invoicing, integrated collection and
disbursements. The company offers electronic and traditional trading of listed securities.
It operates in Makati, Angeles City, Quezon City, Mandaluyong City, Baguio City,
Cainta, Manila and Bacolod City, the Philippines. RCBC is headquartered in Makati,
Philippines.

The RCBC’s mission is being a universal bank providing quality Integrated

Financial Services that best meet the clients' needs. RCBC is committed to conduct
business with utmost integrity, excellence and commitment as responsible corporate
citizens; and provide professional growth opportunities to develop a talented base of
officers and employees, and achieving the best returns for our stockholders.

RCBC’s vision is to be among the industry leaders in terms of asset quality,

profitability and service delivery; to be a strong brand name established among
consumers and select segments of the corporate and middle-sized markets with sales
orientation as the main business driver; to be able to deliver quality service to clients and
provide the best returns to its stockholders; and to be strongly synergize with the rest of
Yuchengco Group of Companies (YGC).

In line with their vision to be strongly synergize with the rest of YGC and with
the end goal of promoting and projecting a strong YGC identity/brand to their customers
and the general public, the YGC Human Resources (HR) Council undertook a thorough
review of the corporate values of all YGC member-companies to derive common
standards for behavioral excellence and arrive at common appellations therefor. It
indicates the five core values of YGC: passion for excellence, sense of urgency,
professional discipline, loyalty and teamwork.

By using the Ansoff matrix, we can see that the first option for Rizal Commercial
Banking Corporation is diversification. The strategy of diversification is an environment-
based option which means that this derives from environment organization. That is to say
that the bank can acquire new activities and offer new products or services to their
customers in order to differentiate from competitors and earn new market shares.
*Footnotes: 1. Ansoff Matrix is a matrix which allows us to classify company strategies and facilitate the decision-maker; 2. Synergy is creating
added value for shareholders via diversification requires building a multi-business company in which the whole is greater than the sum of its
parts.
Indeed, in the environment, especially in banking industry nowadays
diversification is hugely used to grow in the market, enhancing its available products and
services because customer is becoming more sophisticated about their choice and quality
of service being served to them. Throughout the life, customers try their best to fulfill
their demands. The efforts to make people aware of the offerings inspiring them to deal
with you and let them believe that in doing so, they are fulfilling their needs at its best.

So, strategists recommend as a tool for diversification, that RCBC can be part of
the health maintenance organization (HMO). There are various companies in the
Philippines that offer a wide range of health insurance, aiming to make health care
affordable to every Filipino. HMO is a prepaid health care system wherein the Insurance
Company handles the distribution of networks, providers, and members all in one
umbrella. Through diversification, RCBC can maximize return by investing in medical
areas that would widen the range of its market. As the saying goes, “Health is wealth”, so
many people are conscious to the idea of having a good deal when it comes to health
related products that could be an advantage for RCBC.

B. The persons to be involved in developing and implementing the plan

The person to be involved in the developing and implementing of this plan is the
top management includes the board of directors and the chairpersons. The diagram shows
the organizational chart of RCBC for your guidance.
 Source: https://www.rcbc.com/About/OrganizationalChart

C. The goals and objectives of the plan

Goals of the plan:

1. To increase the performance and reduce the credit portfolio

2. To increase profitability
3. To increase target market

Objectives of the plan:

1. To expand the market of RCBC considering the technologies and products
complement its present business.
2. The resources and capabilities of RCBC can be used as valuable competitive
assets in other businesses.
D. The timeline for implementing the plan

• Meeting with Top Management

1 • September 27 -30, 2017

• Determine Your Strategic Position

2 • October 1 - 7, 2017

• SWOT Analysis
3 • October 8 - 11, 2017

• Customer Segmentation
4 • October 12 - 14, 2017

• Cascading Goals to Departments and Team Members

5 • October 15- 16, 2017

• Implementation Scheduling
6 • October 18, 2017

• Internal Execution of Strategy

7 • October 19 -21, 2017

• External Execution of Strategy and Managing Performance

8 • October 23, 2017

• Tracking Goals & Actions

9
1. To discuss innovative/new strategies and direction for the continued strategic planning.

 Determine Organizational Readiness

 Develop Your Team & Schedule
 Collect Current Data
 Review collected data

2. Determine Your Strategic Position

 Identify Strategic Issues

 Conduct an Environmental Scan
 Conduct a Competitive Analysis
 Create Strategy Sheet

3. SWOT Analysis

4. Customer Segmentation

5. Cascading Goals to Departments and Team Members

6. Implementation Scheduling

 Scheduling process that turns strategies and plans into actions in order to accomplish
strategic objectives and goals.

7. Internal Execution of Strategy

 Identify if application of strategy has been successful by implementing internally and

make a solution in case implementation has a glitch.

8. External Execution of Strategy and Managing Performance

9. Tracking Goals & Actions

 Set up monthly and quarterly strategy meetings with established reporting procedures.
 Set up annual strategic review dates, including new assessments and a large group
meeting for an annual plan review.
  Establish your performance management and reward system.

E. How essential components of the plan will be evaluated

This strategic plan is essential to achieve the competitive advantage and to

improve the financial performance of the company. This strategy that the proponents
proposed will also help to widen its market by partnering with the HMO. By this
partnership implementation of RCBC and HMO, it will establish a positive impact to the
customers and also to the company, because nowadays, people are finding ways on how
they can become more secure with their life and with their families. Moreover, the RCBC
can now provide ways to be more secure with their lives by providing assistance for
unforeseen circumstances that may happen in the future.

While HMO offers a wide range of healthcare services that supply services to the
members, RCBC Bank can accommodate the electronic payment of the members. This
will be a great opportunity for the bank to penetrate the current market and become more
advantageous and abreast with the competition in the current market situation.

People had quite averse to the idea of investing in health insurance, this became
an opportunity to offer simplified ways for people to invest in their health through the
partnership of RCBC and HMO. With an HMO, people will likely have coverage for a
broader range of preventive healthcare services than they would through another type of
plan. RCBC will provide an electronic payment facility which is faster and safer.
Implementation of this plan will definitely bring the company into a greater height.

SWOT Analysis
Strengths

 Customers Loyalty

Instead of targeting all customers, RCBC only needs to target new customers in
order to grow. Customers’ loyalty has a significant impact on the profitability of the
corporation.

 Brand Name

A strong brand name is a major strength of RCBC. This gives RCBC the ability to
charge higher prices for their products because consumers place additional value in the
brand.

 Meeting customers demand through innovation. (weakness to strength).

 The willingness of RCBC to innovate its services and technology can be strength
of the company by improving technology and enhancing the quality that the bank can
provide. Customers' satisfaction is very essential especially in industries that offer
services like banking industry.

Weaknesses

 Outdated Technology

A lack of proprietary technology and patents can be a disadvantage of RCBC’s

ability to compete against rivals. Like the Automated Teller Machine that accept cash
deposit and payment. They don’t need to fall in line because they can do it by them self.

 Work inefficiencies

An inefficient work environment means that RCBC’s services are not being
utilized properly.

 High staff turnover

Replacing valuable staff is expenses. This qualitative factor will lead to an

increase in costs. And will lead to a decrease in profits. High staff turnover is a difficult
qualitative factor to overcome, so the investment will have to spend a lot of time trying to
overcome this issue.
Opportunities

 Innovations

Greater innovation can help RCBC to produce unique products and services that
meet customer’s needs.

 New market

New markets allow RCBC to expand their business and diversify their portfolio of
products and services.

 International expansion

International markets offer RCBC new opportunities to expand the business and
increase sales.
Threats

 Bad economy

A bad economy can hurt the banking business by decreasing the number of
potential customers. This is a difficult qualitative factor to overcome, so the investment
will have to spend a lot of time trying to overcome this issue.

 Substitute products

The availability of substitute products hurts RCBC ability to raise prices, because
customers can easily switch to another product or service.

 Intense competition

Intense completion can lower RCBC’s profits, because competitors can entice
consumers away with superior products.

References:
https://www.rcbc.com/About/CorporateProfile
http://ygc.com/About%20Us/Milestone/HISTORY/YGC%20TIMELINE.pdf
https://www.ehealthinsurance.com/health-plans/hmo
https://scontent.xx.fbcdn.net/v/t34.0-
0/p280x280/21905381_1815752585132266_1092405354_n.png?_nc_ad=z-
m&_nc_cid=0&oh=00231f5695040dcfda4cc3121a6c9ef3&oe=59C5E113
https://www.imoney.ph/health-insurance