Thesis, Graduate (Master in Management)--University of the Philippines Mindanao, January 2010.

Rural Bank of Digos, Inc. (RBDI) was established in December of 1955. At present, it has 83 employees operating from 5 branches. The bank has been profitable since inception providing financial products and services to numerous individuals and businesses in Southern Mindanao. Its products which include deposits, loans, bills payment and money transfer coupled with quality service and sound management enabled RBDI to expand and survive for 54 years. With the extreme competition in the finance industry and fluctuating economic events, RBDI is faced with the perennial question as to how it should position itself in order to achieve sustainable corporate growth and profitability in the next 50 years or so. This study involved interviews and discussions with RBDI?s management which led to the identification of the major strategic issues facing RBDI such as: growing competition in the financial sector which translates to a need for RBDI to innovate and maximize market share. Likewise, the need to innovate is challenged by RBDI?s outdated infrastructure and the conscious effort to increase income and control cost. The environmental scan and organizational assessment presented in the succeeding chapters helped in the development of strategic choices which resulted to the identification of RBDI?s need to focus on product development and market penetration strategies. The major strategies that RBDI should consider for implementation are: develop innovative products that serve the needs of its market and untapped markets, aggressive promotion of products and services to maximize market share and invest in technology for increased monitoring, evaluation and efficient service. The total cost for product development, promotion and system upgrade will be P 1,200,000.00. To support these strategies, RBDI should achieve and maintain a 20% annual growth in income in the first five years through increase sales and maintaining a quality loan portfolio. The strategic thought is then translated into organizational action detailing the activities to be taken by each functional area of the organization. Finally, to ensure successful implementation of these strategies corresponding indicators are outlined for monitoring and evaluation purposes and existing policies are updated.