Thesis, Graduate (Master in Management)--UP Mindanao, 2010

The financial industry in the Southern Mindanao Region is dynamic and challenging brought by stiff competition. The number of cooperatives doing business in the region is increasing. The number of substitutes like microfinance services has doubled in number. Most of the services given by SAMULCO are also being rendered by other groups and cooperatives in the industry. This is what this paper tried to address: the problems faced by the cooperative to maintain its profitability amidst economic challenges and strong competition. In coming up with a strategic options, thorough analyses on the external and internal environments of the cooperative were done making use of the data gathered. The data were collected from reliable sources like the audited financial records, policy handbook, annual reports of the various committees of the cooperative, and the interview from officers and staffs. This paper used different tools in the analysis of the data gathered to come up with the strategic options that the cooperative can implement in its business operations. These options were checked and evaluated to determine its relevance and effectiveness to address various issues in the cooperative. The profitability of the cooperative has declined since year 2007. This paper deals with the problem in how to improve and sustain the profitability of the cooperative. The framework developed by Fred David provides analysis of the external and internal environment along with the vision/mission/goals of the cooperative, and the financial and human resources of the cooperative in coming up with the best strategy. This paper used the External Factor Evaluation (EFE) Matrix to assess the capability of the cooperative to respond to the challenges in its external environment. Similarly, The Internal Factor Evaluation (IFE) Matrix was employed to assess the internal position of the cooperative. The Political, Economic, Social-cultural and Technological (PEST) Model, and Porter?s five forces of competition were also utilized in analyzing the external environment. The SWOT Matrix was used to come up with various strategic options that the cooperative can employ. This paper then made use the Quantitative Strategic Planning Matrix (QSPM) in order to determine the appropriate strategy for the cooperative to implement. The QSPM revealed that the most suitable strategies for the cooperative to implement in order to improve and sustain its profitability are (1) to concentrate on highly profitable business and (2) introduce cost reduction programs. The implementation programs vital to achieving the objectives of the cooperative were drawn up for the next five (5) years starting year 2010 to year 2014. This paper outlines some programs and activities for each functional area using the GANNT Chart. The Balanced Scoreboard Concept developed by Robert Kaplan and David Norton (1996) is utilized in this paper and in developing the Key Results Area (KRA). The Performance Indicators (PI) defines these key results areas specifically. It sets the standards to which the KRA?S will be evaluated.