Thesis (Master in Management) -- University of the Philippines Mindanao,June 2016.

El Grande Multi-Purpose Cooperative is one of the top millionaire credit cooperatives operating in Davao City based on total asset holdings. It was organized in January 5, 1989 as a financial service cooperative engaged in deposit taking and loan offerings. It was created to address the basic economic needs of and alleviate the quality of life in Barangay Catalunan Grande by helping people realize their dreams and aspiration thru financing. Despite the noble intention and being a member owned enterprise, EGMPC was not saved to face large portfolio at risk like all other financial institutions. This does not merely limit profitability, it also dilutes EGMPC?s capacity to assist more members despite having large asset holdings. Hence a 3-year strategic management plan was devised to improve the coop?s operations for sustainability, progressive socio-economic growth in the community where it operates and in preparation for serving a wider scope. The strategic paper follows a framework adopted from the input and output model and the cooperative framework developed by Mazzarol, et. al. (2011). The model suggests that an effective intervention emanates from an organizational diagnosis that examines the organization in a holistic manner beyond the borders of its control, and up to the extent of the environment that relevantly affects it. External environment analysis thru a research on financial behaviors, policies, and outcomes was done to analyze EGMPC with the international and national trend. Findings were translated into opportunities and threats. The extent to which these factors affect/is responded by EGMPC were evaluated using the External Factor Evaluation (EFE) matrix. Issues identified include (1) high market demand related to the lack of access to the banking and other financial services experienced by MSMEs who prefer non-banks in terms of borrowing; (2) possible sources of funds thru wholesale microfinance loans from universal, commercial and foreign banks being mandated to allocate 10% of their loan portfolio for MSMEs; and finally (3) the lack of financial literacy of cooperators leading to inefficient use of funds and overindeptedness. The internal environment which was analyzed through the four areas of management was done by analyzing EGMPC?s performance thru the financial statements, operations manual and periodic reports. Results were confirmed by conducting diagnosis on employee satisfaction adopted from R. Prezioci?s organizational diagnosis questionnaire; interviews with some members. A cause and effect analysis was also drawn together with frontliners using the fish-bone analysis as tool. Strength and weaknesses were determined an evaluated using the Internal Factor Evaluation (IFE) matrix. Issues include (1) impressive fund generation thru deposit in the absence of specific department nor plans and programs focusing on deposit taking which sustains survival despite insufficient collections; (2) satisfied, loyal and motivated member-employees; (3) lack of manpower, (3) unsafe lending practices, (4) not so aggressive collection enforcement and (5) past due borrowers having several loans with other financial institutions. Based on the assessments conducted, Strength-weaknesses-Opportunities- Threats (SWOT) matrix was plotted from which five strategic options were derived. Strategic options were ranked according to priority and relevance to the realization of the vision, mission, and goals of the organization using the Qualitative Strategic Planning Matrix (QSPM). Strategic choices include (1) reform on credit policies which will focus on creating credit programs and policies that will ensure that loan are appropriate, productive and helpful to the members; (2) collection enforcement to recover idle investments in the past due accounts; and (30 savings and financial literacy programs to help members become financially healthy, educated and responsible. Implementing strategies were formulated and translated into specific action plans. Financial projections were made and consolidated into financial statement s to measure and evaluate the effects of the projected in the financial condition of the enterprise. Finally, performance indicators were established in order to track the progress of actual performance over the goals set and obtain a feedback on the effectiveness/impact of the strategies so that essential improvements/corrections on the plans and programs can be done.