Strategic Paper
Strategic Paper
Strategic Paper
INTRODUCTION
Historical Background
Suyo
Multi-Purpose
Cooperative
started
as
Suyo
Credit
fifteen
years
of
operation
since
its
inception,
the
cooperative had reached its first million mark, in total assets, in the year
1988. The cooperative received Certificate of Recognition from the
Cooperative Development Authority (CDA) for becoming one of the
millionaire cooperatives in the Ilocos province. From thereon, there is a
consistent increase in capital and assets. On April 8, 1992, the credit
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into
Multi-Purpose
Cooperative.
The
Cooperative
Intermediary
(FI)
of
NATCCO
under
Socio
Economic
losses. A lot of arguments had made on this matter as it really affects the
financial status of the cooperative however through series of FI trainings,
it made a reality that the cooperative provided a 100% provision of loan
losses and a zero delinquency on DOSRI.
&
Development
Center(NORLU
CEDEC)
in
Baguio
Chapter II
RESEARCH DESIGN AND METHODOLOGY
Research Design
how/when/why
the
characteristics
occurred.
(https://en.wikipedia.org/wiki/Descriptive_research)
Sources of Data
The data used for this study were gathered from Suyo Multi
Purpose
Cooperative.
The
Chief
Executive
Officer
permitted
the
Data Analysis
Ethical Considerations
Major Assumption
At the end of the study, the researcher and the reader as well, shall
be able to identify strong points in maintaining the cooperatives
sustainability, stability and growth for the next decades of operation.
Chapter III
COOPERATIVES VISION, MISSION AND GOAL EVALUATION
Vision
Suyo MPC is envisioned as a highly competitive and capable of
delivering multi services to the membersin each and every community
throughout Region I and CAR.
Mission
members.
To enhance knowledge, attitudes and skills of officers, staff and
members.
To strengthen
linkages
and
ties
with
line
agencies
and
The cooperatives Vision, Mission and Goal are geared towards the
improvement of every cooperative members socio economic status that
contributes to the community building andthe nation as a whole. The
researcher evaluated the cooperatives vision, mission and goal using the
parameters set by Davids Framework.
Table 1: Vision Statement Evaluation
PARAMETER
YES
WHY
/NO
Does it clearly answer the YES
The
statement
become?
cooperative
states
vision
that
the
YES
in
each
and
every
9
YES
in
economic
that
will
improving
the
life
of
every
PARAMETER
Customers
Products and
Services
Markets
YES
/NO
Yes
Yes
Yes
members.
To sustain
the
implementation
of
nation as a whole.
To enhance knowledge, attitudes and
Yes
Yes
Yes
Growth and
Profitability
Philosophy
Yes
nation as a whole.
In connection with the missions of the
cooperative it implies that in the near
future the cooperative believes itself to
be a leading service provider of the
Concern for
Employees
Concern for Nation
Yes
Yes
Building
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Chapter IV
EXTERNAL ANALYSIS
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13
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industry.
Business ventures is also considered as an opportunity for the
cooperative because some business establishments needs additional
capital to finance its increasing day to day operations, if not all. The
cooperative is extending micro financing to small enterprises like
restaurant owners, parlor owners, sari-sari store owners, and others.
Increasing numbers of such businesses would mean an increase in
the future members of the cooperative and a borrower as well.
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financing
industries.
The
cooperative
offers
lower
interest
and
16
18
New entrants in the wide market are considered threat, for the
cooperative is not aware of what may these new entrants offer other
than what the cooperative is currently offering. New entrants dont
necessarily mean a newly organized cooperative or financing firm but
it may also be an existing cooperative that has long been sleeping. In
connection to this the new entrant may offer new rediscounted rates
on Financing services and Deposit Services. And the competitors
marketing strategies might be better than the cooperative is doing.
Barriers to entry
-
expansion.
Capital Requirements Every cooperative must meet the minimum
capital requirement in order for it to establish or expand a branch
office in its target market. Minimum starting capital requirement of a
cooperative branch for its operation is ranging from 2-3 million.
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20
21
Sustainable competitive
Conclusion
Using Porters Five Forces Frameworkresult that most of the forces are
rated weak in affecting the attractiveness of the cooperative it only shows
that Suyo Multi-Purpose Cooperative is still attractive and competitive in
the cooperative and financing industry. Though there is an existing
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the
Financing
Industry
cooperatives,
banks,
financial
institutions and private individual lenders are present and are competing
against each other in terms of interest rates of the services they offer. At
present these are the major competitors that the researcher considered
that the cooperative should be dealing with because they are the
cooperatives that are ranked on top in Region 1 and North Luzon as a
whole.
Ilocos Sur Cooperative Bank A Secondary Cooperative based in Candon
City, Ilocos Sur, with a +/- 600M total assets. Loan Interest rate is
around 13% per annum.
Tubao Credit Cooperative based in Poblacion, Tubao, La Union with +/500 million in total Assets and is recently expanding its operation to
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seven(7)
Critical
Success
Factorsto
determine
the
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25
7. Marketing
Strategy
is
also
factor
that
affects
the
Guidelines,
Policies
and
Procedures
are
SMPC
.80
.60
.40
.40
.20
.80
.60
.60
.60
Reputation
.15
.60
.60
.60
.60
Cooperative Size
.15
.45
.60
.60
.60
Interest on
Deposits
Score
Rating
Score
.20
Score
Rating
Rating
Factors
Score
ISCB
Rating
TUBAO
Weight
Critical Success
SACDECO
26
Market Expansion
.10
.45
.60
.30
.60
Marketing Strategy
.10
.30
.40
.20
.40
.05
.30
.40
.30
.40
.05
.30
.30
.30
.30
Management Staff
and Officers
Organizational
Guidelines, Policies
and Procedures
TOTAL
1.00
4.00
4.10
3.30
3.90
OPPORTUNITIES
WEIGHT
RATE
Education
Housing
Business Ventures
Lifestyle Trends
Technological Advancements
THREATS
Government Regulations and
25%
20%
15%
8%
7%
4
4
3
3
3
1
.80
.45
.24
.21
5%
Policies
Politics
5%
Product Differentiation
10%
Calamities
5%
Total Weighted Score
Chapter V
.10
3
3
1
.15
.30
.05
3.30%
SCORE
COMPANY ANALYSIS
Suyo
Multi-Purpose
Cooperatives
primary
goal
is
for
the
29
50,001.00
150,001.00
350,001.00
500,001.00
50,000.00
150,000.0
0
350,000.0
0
500,000.0
0
ABOVE
30
60
90
180
365
DAYS
DAYS
4.00
DAYS
4.50
DAYS
5.00
DAYS
5.50
%
4.50
%
5.00
%
5.50
%
6.00
%
5.00
%
5.50
%
6.00
%
6.50
%
5.50
%
6.00
%
6.50
%
7.00
%
6.00
%
6.50
%
7.00
%
7.50
3.50%
4.00%
4.50%
5.00%
5.50%
30
Financing Services
Service Fee
Insurance
Collection Fee
5%
6%
7%
1.25%
2.50%
2.50%
1%
1%
1%
One Year
Two Years
Three Years
Principal Amount
Less Financial Charges
Service Fee (5%)
Insurance (1.25%)
Collection Fee (1%)
Capital Build up (Savings
and Share)
Net Proceeds on Loan
1 year
PhP. 100,000
2 years
PhP. 100,000
3 years
PhP. 100,000
5,000
1,250
1,000
6,000
2,500
1,000
7,000
2,500
1,000
1,750
1,500
1,500
PhP. 91,000
PhP. 89,000
PhP. 88,000
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Financial Ratios
Financial Ratios are essential in assessing the cooperatives current
status. Financial ratios show how well the cooperative is managing its
finances in terms of Liquidity, Financial Leverage and Activity Ratios.
102,351,711.7
1
90,017,239.55
1.14
2013
2014
128,247,066.04
156,701,572.23
110,260,246.05
131,317,036.12
1.16
1.19
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The current ratio as shown in the table is increasing which means the
cooperative is managing its operations efficiently and effectively.
B. Solvency is the ability of company to pay its long term liabilities.
Solvency is like liquidity but it focuses on the long term investments or
activities of the company. Solvency ratios include;
Debt to Asset Ratio
The debt to asset ratioof the cooperative as shown below indicates that
the cooperative can pay its obligations because the cooperative will only
sell a 76% of its assets to pay off its debts.
Debt to Asset Ratio = Total Liabilities / Total Assets
Total Assets
Total Liabilities
Ratio
2012
125,508,776.5
3
93,981,853.39
.75
2013
2014
146,308,891.42
176,958,577.96
112,132,274.19
.77
135,155,418.45
.76
Profitability Ratios
Profit Margin measures how much net income is derived from the
number of revenues earned. It is hereby calculated by dividing net
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2012
3,310,594.13
16,321,986.82
20.28%
2013
4,567,206.13
20,010,809.48
22.82%
2014
5,605,409.15
25,058,686.54
22.36%
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Net Income
Average Total Assets
2012
3,310,594.13
117,527,711.8
2013
4,567,206.13
135,908,833.9
2014
5,605,409.15
161,633,734.6
0
.03
8
.03
9
.03
Return on Asset
Ratio
and
competent
employees
WEAKNESSES
Unmanned Marketing The cooperative marketing activities are very
minimal due to the absence of marketing department. Weighted at 10%
and rated at 2 because market saturation is dependent in the marketing
department.
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STRENGTHS
Low Interest rate on loans
High Interest rate on Deposits
Loyal and Competent Employees
Loyal Members
Wide Area of Coverage
Increasing Members/ market share
Good Reputation
WEAKNESSES
Unmanned Marketing
Lack of Marketing Programs
Limited Amortization Plan
1 (poor)
2(below ave)
WEIGH
T
RATE
WEIGHTED
15%
15%
11%
10%
8%
7%
9%
4
4
4
3
3
3
4
SCORE
.60
.60
.44
.30
.24
.21
.36
10%
10%
5%
2
3
2
.20
.30
.10
3(above
ave)
4(superior)
3.35
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Chapter VI
STRATEGY FORMULATION
Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
SWOT Matrix for Suyo Multi-Purpose Cooperative focuses on relating
Strengths and Opportunities (SO), Weaknesses and Opportunities (WO),
Strengths and Threats (ST), Weaknesses and Threats (WT) and
recommending strategies as well. These factors are taken from the earlier
matrices in External and Internal Analysis.
STRENGTHS
Low Interest Rate on
Limited Amortization
Loans
Plan
Lack of Marketing
Programs
Deposits
Wide Area of Coverage
WEAKNESSES
Unmanned Marketing
Department
Increasing Members/
Market Share
Loyal and Competent
Employees
Low Salary
Loyal Members
Reputation
OPPORTUNITIES
Education
SO Strategies
WO Strategies
Housing
Members Business
Venture Activities
Technological
Advancements
THREATS
Government Regulations
and Policies
Politics
Product Differentiation
Calamities
Do a courtesy call to
the Local Chief
Executive and
Introduce the services
of the cooperative and
its advantages in the
community.
Invite the Local Chief
Executive every
General Assemble
Meeting.
Maintain current
competitive interest
rates.
Enhance current
services.
Aggressive
Conservative
Defensive
Competitive
X Axis
-2 Good Reputation
+5 Barriers to Entry
-2 Loyal Members
+5 Access to Financing
Average = -1.60
Y Axis
Average = 5.33
Environmental Stability
-3 Lifestyle Trends
Average = 5.33
Average = -2.00
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Conservative
Aggressive
3.33
3
3.7
33
Defensive
Competitive
45
Strong 3.0-4.0
Average 2.0-2.99
Weak 1.0-1.99
I SMPC
II
III
Medium
IV
VI
2.0-2.99
Low
VII
VIII
IX
High
3.0-4.0
1.0-1.99
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