Thesis, Graduate (Master in Management)--University of the Philippines Mindanao, December 2008

The business world is always changing. Globalization and information age are the key factors that brought the complexities in the business setting. The absence of a marketing department for Tibud Sa Katibawasan Multi-Purpose Cooperative and its major dependence on one company as a major source of its revenues are two challenges that the cooperative is currently facing in a very dynamic and cooperative business environment. It is within this context that a strategic plan was employed in order to provide a framework and direction for the cooperative to achieve its objectives and goals. Evaluation of the company's external environment has identified the following opportunities and threats: Opportunities - A) Greater trend of labor flexibilization or contractualization on foreign-owned or affiliated firms and export-oriented firms; B) COOP-NATTCO's presence in House of Representatives as the party-list representatives for cooperatives; C) Tax-exemption for cooperatives with accumulated reserves and undivided net savings of not more than ten million pesos from all national, city, provincial, municipal or barangay taxes; D) Cooperative Development Authority (CDA) support in promoting the viability and growth of cooperatives through training and development seminars and consultancy; E) Registered voters population of 1,206,040 in SOCSKSARGEN; F) Availability of technological advancements utilizing the power of the web as a marketing tool; G) Low threat of new entrants due to high capital requirements in operating a new cooperative and access to market. Weaknesses - A) Volatility in the global crude oil prices; B) Impending global economic crisis that would potentially harm the credit market; C) High bargaining power of buyers since approximately 95% TSKMPC revenues come from Dolefil: D) High threat of substitutes due low-switching cost of customers in looking for services such as credit and savings offered by cooperatives and rural banks; E) Intense competitive rivalry among cooperatives offering similar services and rural banks. The cooperative's internal environment was also evaluated and the strengths and weaknesses were identified. Strengths ? A) Positive growth in net surplus from 2003-2007; B) Increasing revenues, assets and equities in 2003-2007; C) Partnerships with international and local financial institutions and civic organizations to strengthen its loans and savings program, manage loan collections and lower delinquency rate; D) Annual growth rate of 28% on membership; E) Good labor and management relations; F) Aggressive training and development programs; G) Low membership turnover rate (5%). Weaknesses - A) Decreasing Asset Turnover Ratio (A T/O); B) Decreasing Equity Multiplier; C) Decreasing Return on Equity; D) Absence of established and written manuals and policies; E) Dependence on Dolefil for its manpower services which is 95.4% of its revenues in 2007: F) Absence of established marketing department. The SWOT matrix and QSPM were utilized in generating, selecting and evaluating alternative strategies with due consideration on the Vision, Mission and Goals of TSKMPC. The following strategies were then chosen; 1) Market Development; 2) Create and Develop a marketing department. The Monthly Management Review and the Monthly BOD Meeting will continue to be the primary control and monitoring tools that TSKMPC will utilize to ensure the achievement of its goals and objectives.