Strategic management plan for Land Bank of the Philippines

From its initial role as the financing arm of the governments agrarian reform program, LANDBANK has evolved into a full-service commercial bank. But the essence of its existence has not changed at all – and that is to make the countryside continuously throb with life. As a catalyst of countryside development and poverty alleviation, LANDBANK is faced with many challenges not only in its own operation but also in the sustenance of its social mandate - to spur countryside development. Changes in the macroenvironment social, economic, political, technological, ecological, and institutional have greatly changed the complexity of competition in the industry and have given rise to new opportunities and threats. LANDBANK therefore has to re-examine existing objectives and strategies and formulate new ones to adapt to the changes in the environment. Based on internal analysis, the Bank has certain strengths: stability based on longer years of existence and a sound financial condition the bank is a leader in countryside development it has a strong management team broad product/service range and has a wide distribution network. These are internal capabilities that allow the Bank to take advantage of the different opportunities yet protect itself from various threats in the industry. On the other hand, the Bank must be aware that it also has certain limitations or weaknesses that must be overcome or better still, develop into strengths. Some of the Banks weaknesses are inadequacy of training programs on quality loan evaluation and lack of detailed systems and procedures On the external analysis using the five forces model of Michael Porter, it can be noted that there are changes in the macroenvironment that would either be threats or opportunities to the industry and definitely would affect the tasks environment. Some of these changes that can be opportunities are: passing of bio-fuel bill and the low inflation and interest rate as well as the higher growth in GNP and GDP. On the other hand, establishment of super regions and the implementation of Environmental Impact Statement System might threaten the industry. The banks competitive advantages are analyzed using the value chain framework as sources of advantages. Primary and support activities are among those factors that contributed in the Banks competitiveness. To sustain its competitive position, the competitive advantage cycle is used. The underpinning competencies that give the Bank a distinct advantage from its competitors have been identified as: it is a bank with a social mission and a wide countryside network. The proposed strategies are based on the limitations, strengths, opportunities and the values of the decision-makers. These strategies would enhance the service and sustain the Banks competitive advantages these are the introduction of centralized customer information so that anywhere, anytime, clients would be able to transact business with LANDBANK and the strengthening of financing on the countryside specifically to the cooperative partners by providing regular trainings and other forms of assistance that would enhance cooperatives capability to manage its organization, as well as its enterprises, effectively and efficiently. The Banks capability for the implementation of the proposed strategies was analyzed using the 7-S and the 8-SIT framework was used to ensure that these strategies may be executed. Lead persons were identified to do the tasks needed