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Mabalacat Public Market Vendors Multi-Purpose Cooperative

HOLY ANGEL UNIVERSITY

Mabalacat Public Market Vendors Multi-Purpose Cooperative


Strategic Management Paper

In partial fulfilment for the requirements in YSTRATMA Strategic Management

Holy Angel University

Angeles City

Baquing Bryan
Elegado, Thomas Ivan
Isip, Maria Samantha
Manuit, Mary Rose
Tang, Katherine Paula
BSA Major in Accounting Technology, F438, MWF- 4:45-5:45

Ms. Nancy D. Megallon, MBA


YSTRATMA Professor

March 14, 2017


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
TABLE OF CONTENTS

Title Page

Table of Contents

Executive Summary

I. Company Profile
II. VMG Analysis
a. Vision
b. Mission
c. Goals/Objectives
III. Strategic Managers
a. Board of Directors
b. Top Management

IV. External Assessment


a. STEEP Analysis
b. Porters Five Forces Analysis
c. External Factor Evaluation (EFE) Matrix
d. Competitive Profile Matrix

V. Internal Assessment
a. Corporate Structure
b. Corporate Culture
c. Corporate Resources
i. Marketing
ii. Human Resources
iii. Production/Operation
iv. Research and Development
v. Management Information System
vi. Accounting and Finance
1. Liquidity ratios
2. Leverage ratios
3. Activity ratios
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
4. Profitability ratios
5. Growth ratios
d. Internal Factor Evaluation (IFE) Matrix
VI. Analysis of Strategic Factors
a. SWOT-TOWS Matrices
b. Strategic Position and Action Evaluation (SPACE) Matrix
c. BCG Matrix
d. Internal-External (IE) Matrix
e. Grand Strategy Matrix
f. Quantitative Strategic Planning Matrix (QSPM)
VII. Strategies-Programs/Activities-Timeframe-Resources (SPATRES)
VIII. References
IX. Appendices

EXECUTIVE SUMMARY

The purpose of this study is to propose efficient and effective strategies for
Mabalacat Public Market Vendors Multi-Purpose Cooperative, a public
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
cooperative located in San Francisco Mabalacat City, Pampanga. Since its first
operation began in February 11, 1997, the numbers of customers multiplied
dramatically from 23 to 468 business owners. In 2013, the annual revenue
increased from 2,423,273.41 to 2,530,908.80 in 2015. Over its twenty years of
excellent operations, it has succeeded in providing loans and trading to its
customer.

This strategic management paper provides a discussion of the different


factors that helps the cooperative to succeed. The factors which have been given
higher weights are employee self-esteem is excellent, regular customer loan
increased, debt decreases favorably. In general, MPMV-MPC exceeds its rivals
regarding basic achievement components. It also provides an assessment of the
strengths and weaknesses of MPMV-MPC as an organization. MPMV-MPCs
strengths includes employee self-esteem is excellent, regular customer loan
increased, debt decreases favorably, increase in net revenue, have good
recognition within the Mabalacat and offers low membership fee. However, MPMV-
MPC needs to redesign its current frameworks to be more effective and efficient as
well as to increase the number of the member of their cooperative.

Finally, this paper includes the best strategy for MPMV-MPC that will offer
help in accomplishing the key and monetary objectives of the company.
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
I. Company Profile

Mabalacat Public Market Vendors Multi-Purpose Cooperative is engaged in


lending business and also other types of businesses which are plastic and
appliance trading, water refilling station, car and money loan. The company is
situated in San Francisco Mabalacat City, Pampanga. It is a cooperative with
manufacturing products and producing their own mineral water refilling station.

The Mabalacat Public Market Vendors Multi-Purpose Cooperative (MPMVPMC)


was organized by a small group of market vendors in the public market of the
Municipality of Mabalacat, Pampanga, sometime in 1997. Its main objectives are to
provide services related to creation of common funds granting of loans for
productive and providential purposes, to encourage thrift and savings among
members, and to promote the organization as a way of improving the social and
economic well-being of its members.

It was formed on February 11, 1997 and officially started operation upon its
registration on March 11, 1997 with the Cooperative Development Authority under
Reg. No. PGA-2685 with the initial membership of 23 market vendors. Today the
cooperative has already 99 regular members and 118 associate members doing
their daily economic activities in the said public market, and employs 8 full time and
2 part time personnel.

Below are the products of the entity:


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Plastic products these are being

sold to the members of the cooperative. The

cooperative serves as the supplier of the

market vendors.

Appliances this are some of

appliances that the members are being

loan and they will get only in the savers

mall.

Water Refilling Station these is


the product that the MPMV-MPC own
produce.

II. VMG Analysis

a. Vision
The Mabalacat Public Market Vendors Multi-Purpose Cooperative has the
fundamental purpose of providing quality way of life. Specially quality in our
relationship with our Almighty God, quality in relationship with our fellow members.

Table 01.
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Criteria Yes/No Evaluation
Focused Concept Yes The vision
statement provides
the idea of what the
company wants to
become for their
customers and in
the coming years.
Plausible chance of success No They didnt say in
how they will
provide it to their
customers.
Notable purpose Yes The vision includes
improving the well-
being of their
customers and the
people connected
with the business.

b. Mission
The MPMV-MPC is committed in providing socio-economic life and livelihood
progress in our community -to give benefits in life, and other related financial
products and quality service to our community, providing job security, competitive
among others institution and opportunities for professional growth. We shall abide
by positive Filipino Values, to have the members, which are committed, exercising
their rights and responsibilities.

Table 02.
Criteria Yes/No Evaluation
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Customers Yes The customer
component is too
broad.
It refers to
community which
is not specific
Product/Services Yes It said its main
product which is
the financial
products
Markets No It is not stated its
target market.
Technology No It says nothing
about technology
Concern for survival, growth, Yes It aims for
and profitability professional
growth and its
good that it
believes that it is
competitive against
other institution.
Philosophy Yes It abides on
Positive Filipino
Values, so it refers
to all because it
was not stated
specifically which
values.
Self-concept Yes It is well stated that
it provides socio-
economic life and
livelihood progress
Concern for public image Yes It is stated but it is
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
too vague because
it was only quality
services, it is not
stated how they
will provide it.
concern for employees Yes It is stated that
they provide job
security which is
very related to the
employees
benefits.

c. Goals/Objectives
To serve as a small bank for the market vendors.
To help the members earn while they save.
To provide the members loans that will help them have a better
life.
These goals or objectives are aligned with companys vision and
mission statement because as stated in the vision and mission, the
cooperative wants to provide a quality way of life for its members.

d. Core Values
CORE VALUE OF OUR MISSION

In fulfilling our mission, our task is guided by the following core values: SERVE
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
S- Sincerity

E- Equality

R- Reliability

V- Virtue

E- Example

II. Strategic Managers

a. BOD Members

Chairman: Raymundo Claudio

Vice Chairman: Renato Rivera

BOD Members:

MerlitaTiglao

Paz Metchado

AngelitoMamangun

VirgiloSupan
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Noel Anthny Ramos

b. Top Management :

General Manager: Imelda Cabigting

Secretary: Bryan Celestino

Treasury: Anna Liza Santos

IV. External Assessment

a. STEEP Analysis

FACTORS EXPLANATION IMPACT

Socio-Cultural Positive
Health Benefits for
Members

The company is assuring


that each member's
health is part of its
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY

concerns.

-this has a positive


impact on the company
since it gives importance
to its members.

Livelihood seminars
among general
publicRegular conduct of
livelihood seminars is Positive
being provided by the
company to the public to
help them start a better
way of living.

-in this case, it has a


positive impact, by
providing ideas and tips
for livelihood of the
people, the cooperative
gains public response.

Family day for Members

Once a year, it conducts


family day for the
members to help them
have strong family ties
Positive
-this has positive impact
for it shows that it values
not only its members but
also the family of the
members.
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY

Medical Missions
sponsored by the
cooperative
Medical Missions have Positive
been part of the corporate
social responsibility of the
company.

-it has positive impact


because it can gain more
trust from the public for
they help the needy and
sick.

Technological Modernization of Neutral


queuing system in
some banks in the
Philippines

-This has no impact to


the company since it only
caters small vendors,
those who prefer more
the cooperative than
banks.

Economic Providing car loans


The cooperative has Positive
decided to start offering
car loans to its members.
It allows small business
owners or market vendors
to have their own car.

-Knowing this special


loan, it motivates or
encourages others to be
members of the
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
cooperative.

Environmental Renovation of Neutral


Mabalacat Public
Market
The Mabalacat city is
planning to renovate the
market and make it more
customer-friendly like the
one in Angeles City. It
plans to provide a cleaner
and safer environment for
the buyers.

-This project will not


impact the cooperative
unless there will be new
vendors that are not
members of the
cooperative.

Political Legal Banning of "5-6"


In President Duterte's Positive
administration, there's a
wide spread of
information about the plan
of disallowing 5-6 in our
country.
- this has positive impact
since in this case, one of
the informal competitors
of the cooperative in
terms of credit will be out
of the scene.

b. Porters Five Forces Analysis


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
a. Rivalry among Existing Competitors

Mabalacat Public Market Vendors Multi- Purpose

Cooperative, competes with Banks and other lending

company in offering loans, such as car loans and money

loans. It also competes with other water refilling station.

b. Threat of New Entrants (High)

Mabalacat Public Market Vendors Multi- Purpose

Cooperative, faces the factor that the customers are having

a hard time to fulfil the requirement of the government

regulatory. In loaning in their company you need to credit

money before you can start to loan.

c. Threats of Substitutes

Mabalacat Public Market Vendors Multi- Purpose

Cooperative, faces great threat of the different institutions

that can also offer loans or credits to the market vendors in

a much better way. The existence of the substitutes like 5-

6 and other creditors inside the market can have a

negative impact on the cooperative, and in terms of plastic

trading, there can be other substitutes like eco-friendly bags

which are more acceptable than plastic materials.

d. Power of Customers (High)

The buyer bargaining power is too high because of the

customer loyalty, also the members of loaning industry also


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
buy products in that industry such as plastic bags, water

refilling.

e. Power of Suppliers (Low)

The major suppliers of the Mabalacat Public Market

Vendors Multi- Purpose Cooperative is the plastic bag that

there major supplier, they also have water refilling station

but they supply on their own.


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY

Threat of New Entry - High


Strategic location of the cooperative
Strict requirements of government regulatory agencies
High Initial Investment

Rivalry Among Existing CompetitorsBargaining Powers Buyers High


ng Power of Suppliers Low Growth of lendig trading and water refilling Customer loyalty
Industry.
quired to contend with substitute products for sale in the industry Members are also buyers of products
High number of alternative establishment
Less product differentiate, price competition

Threat to Substitutes
Existence of Bank and lending alternatives
Easier to applywith other establishment
Other alternatives doesnt require membership

Figure 1: Michael Porters Five Forces


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
c. External Factor Evaluation (EFE) Matrix

Opportunities

Increase demand in products Weight 0.1; Rating 4


This component was given the weight of 0.1 which is increase
demand in products. It means more consumers are needing the
products of MPMV-MPC. The quality of the products like plastic bags
are very efficient to the vendors of Mabalacat public market.

Additional products and services Weight 0.1; Rating 4


This component was given the weight of 0.1 which is the additional
products and services. its like the previous component. Meaning, they
already introduce their new products and services. Which is the car loan
nowadays, some of their customers try it.

Good reputation and image Weight 0.12; Rating 4


This component was given the highest weight of 0.12 which is the
good reputation and image of the company. Because, if the MPMV-
MPC does not maintain its image their customers will never come back.

Loyal employees and customers weight 0.1; Rating 3


This component was given the weight of 0.1 which is the loyalty of the
employees and customers. Which means, the employees are honest
when it comes to the companys rules and regulations. They are
obeying the rules regulations and also their customers.

Benefits of employees and Customers Weight 0.1; Rating 3


This component was given the weight of 0.1 which is the benefits of
employees and customers. Meaning, the employees was given the
benefits they deserve in return to their services to the company.
Customers are also getting benefits from the company like, when they
need an emergency expense. The company are providing those kinds
of needs.

Threats
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Price wars Weight 0.1; Rating 1
This component was given the weight of 0.1 which is the price wars.
In the near future when MPMV-MPC cut prices of their productsother
stores or company will also lower their prices just to sell their products
that are alike in MPMV-MPC products.

Economic Changes Weight 0.1; Rating 2


This component was given the weight of 0.1 which is economic
changes. Meaning, maybe in the future they will change their rates in a
way that their price and interest will increase. Consumers will affect by
the pressures from business cycles.

Declining gross profit margin Weight 0.1; Rating 1


This component was given the weight of 0.1 which is the declining of
gross profit margin. Because their suppliers want to increase their own
revenue and margins. These component may lead to them by simply
increasing the price negotiated with MPMV-MPC. It can have negative
effect for the customers and the company will need to look for
alternative providers.

Customers withdraw Weight 0.09; Rating 2


This component was given the weight of 0.01 which is the customers
withdraw. It means, other customers are already quitting to the
company due to their insolvency or others dont want to be the member
anymore.

Increase of competitors Weight 0.09; Rating 2


This component was given the weight of 0.09 which is increase of
competitors. Other customers are quitting because they think other
lending company have more benefits and there have a low interest than
MPMV-MPC.

Table 03 External Factor Evaluation (EFE) Matrix


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Forces Weight Rating Weighted
Score

Opportunities
1. Increase 0.1 4 0.4

demand in

products
2. Additional 0.1 4 0.4

products and

services
3. Good 0.12 4 0.48

reputation and

image
4. Loyal 0.1 3 0.3

employees and

customers
5. Benefits of 0.1 3 0.3

employees and

Customers
Threats
1. Price wars 0.1 1 0.1
2. Economic 0.1 2 0.2

Changes
3. Declining gross 0.1 1 0.1

profit margin
4. Customers 0.09 2 0.18

withdraw
5. Increase of 0.09 2 0.18

competitors
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
1 2.64
Weight: 0.0 (not important) to 1.0 important (all important)
Rating: 4 the response is superior; 3 the response is above
average; 2 the response is average; 1 the response is poor.

d. Competitive Profile Matrix (CPM)

The overall competitiveness of Mabalacat Public Market Vendors Multi-purpose can

be evaluated on the basis of its overall strength rating. If the difference between a

businessess overall rating and the scores of lower-rated competitors is higher than

the firm if it has a greater net competitive advantage. On the other hand, if the

difference between a firms overall rating and the scores of higher rated rival is

bigger than the firm, it has greater net competitive disadvantage. The competitive

profile matrix shows that the total weighted score of Mabalacat Public Market
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Vendors Multi-purpose which is 3.13 is higher than Bank of Floridas 2.96 and

Aquino Loan of 2.61 It concludes that Mabalacat Public Market Vendors Multi-

purpose enjoys the strong competitive position compared to its rival

Table 04. Competitive Profile Matrix (CPM)


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Competitive
Profile Matrix
Mabalaca Bank of Aquino
t Public Florida Loan
Market
V.
Vendors
Multi-
Purpose
Cooperati
ve

Critical Weig Rati Scor Rati Scor Rati Scor


Success ht ng e ng e ng e
Factor

Price 0.16 4 0.64 4 0.64 3 0.48


Competitiven
ess
Customer 0.14 4 0.56 3 0.42 3 0.42
Loyalty
Customer 0.12 4 0.48 3 0.36 3 0.36
Service
Management 0.10 3 0.3 2 0.2 3 0.3
Market Share 0.10 3 0.3 3 0.3 2 0.2
Infrastructur 0.10 2 0.2 3 0.3 2 0.2
e
Warranty 0.10 2 0.2 2 0.2 2 0.2
Issues
Growth 0.09 3 0.27 3 0.27 3 0.27
Location 0.09 2 0.18 3 0.27 2 0.18
Total 1.00 3.1 2.9 2.6
3 6 1

Internal Assessment

a. Corporate Structure
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
General
Assembly

Audit Board of Election


Committee Chairman Committee
Adulfo Tan Gloria Concepcion
Raymundo
Lucia Manlapaz Claudio Rodrigo Cunanan
Vice-
Ermelo Sagmit Chairman

Renato Rivera
Secretary
BOD Members Treasurer
Bryan
Celestino MerlitaTiglao Anna Liza
Med-Con Ethics Santos
Paz Metchado Education Credit
Committee Committee
Committee
Management
AngelitoMamangun Committee
Alicia Espiritu Miguel Cunana
Renato Rivera
EdilbertoMetch VirgiloSupan Claudio
Renato Davi General
ado Paz Metchado Manalo
Subsidiary Manager
Noel Anthny Ramos Collector
Book
Bessy Manalo
b. Corporate
Andrea Culture
Clerk MerlitaTiglao MadelieneOc
Keeper Imelda ErwinaYumul ampo
Cabigting
Rowell Michael
Tan
Mabalacat Public Market Vendors Multi- Purpose Cooperative siimplyElizabeth
Sebstian

stated that they help Mabalacat public market vendors financially by

providing them bank-like services ( ex. Savings, lending, car loans).

They also have services like water-refilling station and selling plastic

bags and LPGS


c. Corporate Resource

I. Marketing

4Ps (Product-Price-Place (distribution channel) Promotion of the

company products and services


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Products

Its nineteen years of existence, MPMV-MPC has earned one of the

respectful cooperative in district I, continuously improving their

services and products for their customers satisfaction.

Prices

MPMV-MPC prices are set reasonable levels for the customers who

patronizing their products. The prices of plastic bags, LPG, and

mineral water are affordable to its customers.

They are also considering the price elasticity because, they are

thinking the effect if they will increase or decrease their prices.

Promotions

MPMV-MPC dont have website to search on. What they do to create

awareness to the people in Mabalacat City is through their officers

who are also a vendor in Mabalacat public market. They are recruiting

other people to join and also to awards that they received, seminars

they attend until they became known not only in Mabalcat City but

also to the other places.

Place

The location of MPMV-MPC is in San Francisco Mabalacat City,

Pampanga near Mabalacat public market.


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY

TaTarget Market

Customers

The MPMV-MPCs target market are the professionals, residents and

have business within Mabalacat City ages 21 to 55 years old.

II. Human Resource

They dont have Human Resource Manager because the firm is too

small. The manager was the one who is acting like HR manager but

employees are given benefits like insurance, Phil health, 13 th month

pay, and bonuses. They also have seminars for their employees about

training and development of the company. When it comes to the

transaction they are using MS Excel to record the transactions and

also type writer.

III. Productions/Operations
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
They operate their business by giving contracts to their customers

before granting the loans. They also record transactions using general

ledger and inputting it in Microsoft excel. Then, official receipts issue

the products that they are selling.

IV. Research and Development

They dont have a research and development department, but every

employee of MPMV-MPC can give suggestions to their Manager or if

the Manager also has suggestions they will be presented at a board

meeting and they will be evaluated.


V. Management Information System
They are using Microsoft Excel because they are still doing the work

manually. They are being offered with different accounting systems

and tried them but MPMV-MPC is still looking for an accounting

system that is suited to their needs.


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
VI. Accounting and Finance

Liquidity Ratio 2013 2014 2015


Current Ratio 4.07 3.72 3.13
Quick Ratio 4.07 3.72 3.13
Table 5

1 Liquidity ratios refer to the companys ability to pay off its current
obligations when they fall due. In general, higher liquidity ratios mean higher
capacity for the company to pay off its obligations.
a Current Ratio measures the extent to which a firm can meet its
short term obligations. The MPMV-MPCs current ratio for 2013
was 4.07 which decreased in 2014 into 3.72 and then decreased
to 3.13 on 2015. This is due to the fact that its current liabilities
increase is more than the increase in assets.
b Quick Ratio measures the extent to which a firm can meet its
short-term obligations without relying on the sale of the
inventories. MPMV-MPCs quick ratio for three-year span is just
the same with the Current ratio because the cooperative doesnt
maintain inventories.

Leverage Ratio 2013 2014 2015


Debt-to-Total Assets 26% 27% 31%
Ratio
Debt-to-Equity Ratio 34% 37% 46%
Long-Term Debt-to- .05 .04 .03
Equity Ratio
Table 6

2 Leverage ratios measure how much funds come from equity and how much
funds come from loans. They also measure the companys ability to meet its
financial obligations.
a Debt-to-Total Assets Ratio measures the percentage of total funds
provided by creditors. A higher ratio means higher degree of
leverage, thus financial risk. MPMV-MPCs ratio from 2013 26%to
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
2015 31%. This increase was due to the increase in the savings of
the members and other payables.
b Debt-to-Total Equity Ratio measures the percentage of total funds
provided by creditors versus by owners. The table shows an
increase from 34% to 26% on 2015, this is due to the increase of
payables and members savings. This is expected to increase in
the following years if the debts increase is more than the addition
of new members.
c Long-Term Debt-to-Equity Ratio measures the balance between
debt and equity in a firms long term capital structure. Theres a
continuous decreasing trend since the cooperative was more
obliged to short-term debts.

Activity Ratio 2013 2014 2015


Fixed Assets 3.22 2.98 3.5
Turnover
Total Assets .03 .02 .02
Turnover
Accounts .89 .84 .82
Receivable
Turnover
Average Collection 323.49 305.15 298.18
Period
Table 7.

3 Activity Ratios measure the relative efficiency of the company in its various
operating activities such as generating revenues from its resources, turning
inventories into sales, collections from customers and payments to suppliers.
a Fixed Assets Turnover measures sales productivity and plant and
equipment utilization. Its ratio decreased from 3.22 in 2013 to 2.98
in 2014 and then it increased to 3.67 in 2015 due to acquisition of
equipment for the water refilling station of the cooperative.
b Total Assets Turnover measures the companys efficiency in
generating revenues out of its total assets. The higher the asset
turnover ratio, the company is performing in generating revenues
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
from the use of its assets. In 2014, the ratio decreased by 1% and
remained the same in 2015 because of the use the assets for
generating revenue. This is a result of more loans acquired than
sales of its products.
c Accounts Receivable Turnover measures the companys
effectiveness in extending credit and its subsequent collection.
MPMV-MPC continued to be effective in collecting credits from
debtors three years. This is due to the extra effort of the collecting
staffs and also the willingness of the members to pay their loans
plus the strict policies of the credit committee in approving loans
and credits.
d Average Collection Period refers to the number of days it takes for
the company to collect its receivables. This ratio is connected with
the Accounts receivable turnover ratio which has a direct
relationship with it.

Profitability Ratio 2013 2014 2015


Gross Profit Margin .79 .78 .70
Operating Profit 2.29 2.51 2.27
Margin
Net Profit Margin 2.29 2.51 2.27
Return on Total .07 .06 .05
Assets (ROA)
Return on .09 .08 .08
Stockholders
Equity (ROE)
Earnings Per Share 5.04 5.22 5.27
(EPS)
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Table 8

4 Profitability Ratios measure the companys ability to generate earnings


after giving consideration to costs and expenses. When the value is higher
compared to that of the competitor, it is an indication that the company is
doing better in its operations.
a Gross Profit Margin refers to the total margin available to cover
operating expenses and yield a profit. MPMV-MPCs GPM range
from .79- .78 in the past two years which is a good indicator that
cost was maintained from .21 - .22. While in 2015, GPM
decreased by .08 because of the increased in the cost of water
refilling stations.
b Operating Profit Margin measures the profitability without concern
for taxes and interest. MPMV-MPCs OPM was just the same with
the NPM because the cooperative does not show payments of
taxes and interests in its Income statement.
c Net Profit Margin refers to the after-tax profits per dollar of sales.
The decrease from 2.51 to 2.27 is because of the unmaintained
expenses and costs relating to the decrease in the gross profit.
d Return on Total Assets (ROA) measures after tax profits per dollar
of assets and it is also called Return on Investment (ROI). Theres
a decreasing trend because of the investment in the water refilling
station.
e Return on Stockholders Equity (ROE) refers to the after tax profits
per dollar of stockholders investment in the firm. In 2013, the ROE
was .09 and then it decreased in 2014 by .01 and remained the
same in 2015, this is because of the small increase Members
Equity and a smaller increase in Net Income.
f Earnings per Share (EPS) measure the earnings available to the
owners of common stock. The increase from 5.04 to 5.27 is due to
the higher generated net income for 2015 resulting from higher
income on loans and credits.
g Price-Earnings Ratio refers to the attractiveness of firm on equity
markets.
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Growth Ratio 2014 2015
Sales -6% 12%
Net Income 13% 9%
Earnings per Share 3% 1%
Table 9

5 Growth Ratios measures the firms annul growth rates.


a Sales growth ratios measure the firms growth rate in sales.
MPMV-MPCs growth rate in sales increased from -6% to 12%
because of the additional sales of the Water refilling station in
2015. And more sales is expected in the following years.
b Net Income growth ratios refer to the firms growth rate in profits.
MPMV-MPCs ratio increased due to the higher increase in net
income for 2015 for the additional trading business of the
cooperative and also income from loans and credits have big
portion on the net income.
c Earnings per Share growth ratios show the firms growth rate in
EPS. The table shows that the cooperatives EPS growth rate in
2014 is higher than in 2015.
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY

d. Internal Factor Evaluation (IFE) Matrix

Table10. Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weig Rati Weighted


ht ng Score
Strengths
Employee self-esteem is excellent 0.09 4 0.36
Regular customer loan increased 0.10 4 0.4
Debt decreases favorably 0.12 4 0.48
Increase in net revenue 0.15 3 0.45
Have good recognition within the 0.09 3 0.27
Mabalacat
Offers low membership fee 0.07 3 0.21

Weaknesses
Have a low presence outside 0.07 1 0.07
Mabalacat
Have no website 0.06 1 0.06
Location of firm unnoticable for 0.07 1 0.07
others
Increase in expenses 0.09 2 0.18
Firm too small for simultaneous 0.09 2 0.18
customer
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Total 1 2.73

VI. Analysis of Strategic Factors

a. SWOT-TOWS Matrices
Table11.
Strengths Opportunities
1. Employee self-esteem is 1. Population of vendors are
excellent growing
2. Regular customer loan increased 2. Increase demand in products
3. Debt decreases favorably 3. Good reputation and image
4. Increase in net revenue 4. Customer Satisfaction
5. Offers low membership fee 5. Additional products and services

Weaknesses Threats
1. Have a low presence outside 1. New rivals are being built nearby
Mabalacat
2. Have no website 2. Uses manual transactions
3. Location of firm unnoticeable for 3. Customer withdrawal
others
4. Increase in expenses
5. Firm too small for simultaneous
customer
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
SO Strategies WO Strategies
1. Send flyers to all market 1. Purchase land for renovation and
vendors (S5,O1) expansion (W3, W5, O4)
2. Add products for higher return 2. Create a website for new clients
(S4,O2) (W2,O1)
3. Offer new products favorable to 3. Use tools (like tarpaulin or
customers (S2,O5) banner) to have a larger area of
recognition (W1,O3)

ST Strategies WT Strategies
Adapt new and efficient accounting 1. Purchase land for renovation and
softwares (S1,T2) expansion (W3,T1)
Offer promos and bundle (S2,T3) . Branch out outside of Malabacat
(W1, T1)

b. Strategic Position and Action Evaluation (SPACE) Matrix

The SPACE Matrix has four quadrants that indicate whether it is aggressive,
conservative, defensive and competitive. These strategies are most appropriate in
an organization to elaborate the different axes of the SPACE Matrix that represents
two internal dimensions which includes the financial position and competitive
position while in external dimension it includes the stability position and industry
position. The table below shows the MPMV-MPCs SPACE Matrix developed with
regards to the MPMV-MPCs IFE and EFE Matrices.
Mabalacat
FP Public Market Vendors Multi-Purpose Cooperative
CONSERVATIV HOLY ANGEL UNIVERSITY
AGGRESSIV
E E
7 x-axis: -4.4+3.8= 0.6

6 y-axis: 5+(-4.2)= 0.8


5

1
CP -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 IP

-2

-3

-4
-5
-6
-7

Figure 02,

COMPETITI DEFENSIVE
SP
VE
RECOMMENDED STRATEGY:

Conservative Strategy MPMV-MPC should stay close to its basic


competencies and should not take excessive risks. We recommend market
development; MPMV-MPC should expand its financial services outside San
Francisco Mabalacat and could try to provide its services in Dau and other
barangays of Mabalacat. It should focus first inside Mabalacat because outside will
be too risky for the cooperative.
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY

c. BCG Matrix

Boston Consulting Group Matrix is also called business portfolio. It is


designed specifically to enhance a multi divisional firms efforts to formulate
strategies. It graphically portrays difference among divisions in terms of relative
market share position and industry growth

Relative Market Share Position in

Loans Plastic Bags


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
Water Refilling

Star Question Mark

Industry Sales II I
Growth Rate

LPG Car Loan

Cash Flow Dogs

III IV

Figure 03

d. Internal-External (IE) Matrix


IE
Matrix
The IFE total weighted scores
STRO AVERA WEAK
NG GE
(3.01- (2.01- (1-2)
4) 3)

The HIGH (3.01- I II III


EFE 4)

Total MEDIUM IV V VI
scores (2.01-3)

LOW (1-2) VII VIII IX


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
EFE
3.13
IFE
3.13

1 EFE

3
12
11
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9
IFE

Figure 04

.
e.
d Grand Strategy Matrix

Quadrant II Quadrant I

Weak Competitive Strong Competitive


Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY

Q Quadrant III Quadrant IV

Figure 05.

Slow Market Growth

The Mabalacat Public Market Vendors Multi-Purpose Cooperative place in first

quadrant. Firm which are in a strong competitive position and rapid market growth.

MPMV-MPC have an excellent strategic position which they concentrate on their

current market and product and services. They also shown the adaptation of

strategies such as market penetration and market development. Recently, they

develop their new product and services which is the car loan.

f. Quantitative Strategic Planning Matrix (QSPM)

Table 12,
Mabalacat Public Market Vendors Multi-Purpose Cooperative
Key Factors Weight PRODUCT MARKET
HOLY ANGEL UNIVERSITY
DEVELOPMENT PENETRATION
AS TS A TS

S
OPPORTUNITIES
Increase demand in 0.1 3 0.30 4 0.40

products
Additional products and 0.1 3 0.30 2 0.20

services
Good reputation and 0.12 4 0.48 3 0.36

image
Loyal employees and 0.1 4 0.40 3 0.30

customers
Benefits of employees 0.1 3 0.30 2 0.20

and Customers
THREATS
Price wars 0.1
Economic Changes 0.1
Declining gross profit 0.1

margin
Customers withdraw 0.09
Increase of competitors 0.09 1 0.09 3 0.27
TOTAL 1
STRENGTHS
Employee self-esteem 0.09 3 0.27 4 0.36
is excellent
Regular customer loan 0.10 3 0.30 4 0.40
increased
Debt decreases 0.12 3 0.36 4 0.48
favorably
Increase in net revenue 0.15 4 0.60 3 0.45
Have good recognition 0.09 4 0.36 3 0.27
within the Mabalacat
Offers low membership 0.07 4 0.28 2 0.14
fee
WEAKNESSES
Have a low presence 0.07 2 0.14 3 0.21
outside Mabalacat
Have no website 0.06 2 0.12 3 0.18
Location of firm 0.07 2 0.14 4 0.28
unnoticable for others
Increase in expenses 0.09 3 0.27 4 0.36
Firm too small for 0.09 2 3
simultaneous customer
TOTAL 1
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
VII. Strategies-Programs/Activities-Timeframe-Resources (SPATRES)
Perso
Timefram Resources/
Objectives Strategies Programs/Activities in
e Budget
Charg
1. Meeting with the
Board Members
and with the
Management.

2. Allocation of the
proposed
To expand the budget
place of the
company for a 3. Agreement with Top
January
better service to the Market the Architect Manag
2018 to P5,000,000
customers and to Development and Engineers ment
June 2020
accommodate Treasu
greater number of 4. Find a good
customer place for the
companys
proposed
building

5. Construction of
the new building

1. Meeting with the


board member
with the
To acquire new Manag
Related management April 2017
equipment for water Secret
Diversificatio 2. Allocation of the to May P 300,000
delivery for a wider ,
n proposed 2017
geographic area. Treasu
budget
3. Find equipment

Create a companys Horizontal 1. Meeting with the April 2017 P 25,000 Secret
own website Integration board member , Boo
with the keepe
management Treasu
2. Allocation of the
proposed
budget
3. Look for an
information
technology
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
expert

1. Meeting with the


board member
with the
management
To convert from January Manag
Related 2. Allocation of the
manual operation to 2018 to Accoun
Diversificatio proposed P 1,500,000
efficient accounting January g Cler
n budget
software 2020 Treasu
3. Look for cheap
but effective
accounting
software
Mabalacat Public Market Vendors Multi-Purpose Cooperative
HOLY ANGEL UNIVERSITY
References:

Mabalacat Public Market Vendors Multi-Purpose Cooperative brochure

Stratma Papers

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