TAGUIG CITY UNIVERSITY
The Graduate School
Master in Business Administration Program
A Strategic Management Paper
Presented to Prof. Marlon B. Raquel, MBA, LPT
TAGUIG CITY UNIVERSITY
Taguig City
In Partial Fulfillment
Of the Requirements for the Course
ENTERPRISE RISK AND STRATEGIC MANAGEMENT
By
Arvin Libutan
Hazelene Manalo
Ghi-Ann Obusan
Dennis Kevin Petalio
Master in Business Administration Student
December 15,2019
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TAGUIG CITY UNIVERSITY
ACKNOWLEDGEMENTS
We would like to express our deepest gratitude to our supervisor Professor
Marlon B. Raquel for his invaluable guidance, patient, trust, encouragements,
advices and insight during the entire study.
The researchers would also like to thank the respected committee
members, for accepting to participate in committee and their valuable comments
and suggestions.
We would like to give our appreciation to the cooperation and the support
of management and employees of GY LOPEZ PAWNSHOP and also to Mrs.
Marivic Manalo in participating in this study.
Also, thanks to our colleagues for their contribution and moral support
throughout this research study, Especially to my classmates Team Puyat.
Finally, we would also like to present our special thanks to our Family, for
their love, support, patience, encouragements and being with us whenever we
need since the beginning of our research study.
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TAGUIG CITY UNIVERSITY
Executive Summary
This strategic management paper will introduce G.Y. Lopez Pawnshop. GY
Lopez Pawnshop has a very competitive and aggressive profile, however is does
not utilize this aggression in the form of expansionary strategies and aggressive
marketing techniques. The financial performance of the company in the year 2017
to 2019 disclosed favorable financial ratio and upward trend in revenue which are
results of efficient interest rate policies and strategies. Gross revenues consisted
mainly of interest income on loans, past due loans and advances, and gains on
auctions. Gross Revenue from 2017 increased from P1,307,792.00 in 2017 to
1,609,921.00 at the end of October 2019.
According to the BCG matrix, among its products/services, Remittance
services should be concentrated upon as it is a star. More money should be invested
in it as the industry is experiencing high growth and the company’s offering is
growing in line with the industry.
Pawnshops are commonly focused on pawning jewelries in strategic
locations nearby, but our concept will concentrate on social media integration and
business expansion. This puts the emphasis on social media market a rapidly
growing community. As arrived into by the Quantitative Strategic Planning Matrix
(QSPM) - whose variables of course were referenced from collated company data -
the expansionary strategy will yield a more attractive return; in addition, the
researchers found that the company invests far too little in marketing. The company
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TAGUIG CITY UNIVERSITY
has no social media presence, or any commercial advertisement presence on any
of the major channels of consumer communication; this inability to market the
company may be what causes the company’s dismal market shares in relation to
the current market leader: Lhuillier. Other Matrix used in this strategic management
paper is observed.
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TAGUIG CITY UNIVERSITY
TABLE OF CONTENTS
Title Page …………………………………………………………………………….i
Acknowledgement ……………………………………………………………….....ii
Executive Summary ………………………………………………………………. iii - iv
Table of Contents …………………………………………………………………..v-vii
Chapter I – Introduction
Introduction ………………………………………………………………………….1-3
Company profile……………………………………………………………………..3-4
Company location……………………………………………………………………4
Chapter II – Research Design and Methodology
Research Design and Methodology ………………………………………………5
Chapter III – Company’s Mission and Vision
Company’s Mission and Vision…………………………………………………….6-10
Chapter IV – External Analysis
External Analysis………………………………………………………..................11-12
Pestle Analysis……………………………………………………………………...12-14
Industry and Competitor Analysis…………………………………………………14-15
External Factor Evaluation Matrix……………………………..…………………..16
EFE Matrix Summary and Interpretation.……………………..………………….16-17
Competitive Profile Matrix.……………………...………………………...……….18
CPM Matrix Summary and Interpretation……...………………………...………19
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TAGUIG CITY UNIVERSITY
Chapter V – Internal/Company Analysis
Overview of Internal Analysis …………………………………………………….20
Revenue/Sales in the past three years ………………………………………….21
Financials Ratio Trend Analysis…………………………………………………..22-24
Value Chain Analysis ………………………………………………………………25-26
McKinsey’s 7S Model or Galbraith’s Star Model ………………………………..27-28
Internal Factor Evaluation Matrix………………………………………………….29-30
IFE Matrix Summary and Interpretation……...………………………...………...29-30
Chapter VI – Strategy Formulation
Overview of Strategy Formulation ……………………………………………….31-34
SWOT Analysis …………………………………...……………………………….35-45
SWOT Matrix …………………………………...………………………………….46
SPACE Matrix ……………………………...………………………………………47-48
SPACE Matrix X & Y Axis ………………………...………………………………49
BCG Matrix ……………………………...………………………………………….50-51
Relative Market Share Position ……………………………...…………………...51
RSMP Pie and Bar Chart ……………………………...…………………………..52-54
IE Matrix ……………………………...……………………………………………..55
GRAND Matrix ……………………………...………………………………………56-58
QSPM Matrix ……………………………...………………………………………...59-61
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TAGUIG CITY UNIVERSITY
Chapter VII – Objectives, Strategies, Recommendations and Action Plans
Strategic and Financial Overview ………………………………………………62
Definition of Financial terms……………………………………………………..63-66
Financial Management …………………………………………………………..67-72
Organizational / Financial Performance………………………………………..72-79
Organization Strategies ………………………………………………………….80-85
Recommendation………………………………………………………………….86-87
Chapter VIII – Strategy Implementation
Companies Financial Performance 2019………………………………………88-89
Companies Income Statement ………………………………………………….90-91
Companies Balance Sheet ………………………………………………………92-94
Financial & Operational Objective……………..…………………………….…..95
Growth Strategy…………………………………………………………………….96
Sales and Marketing Strategy…………………………………………………….96
Conclusion…………………………………………………………………………..97
Strategy Implementation…………………………………………………………..98
Chapter IX – Strategy Evaluation
Balanced Scorecard ………………………………………………………………99-101
Evaluation ………………………………………………………………………….102-103
Group Members Biography………………………………………………………104-105
Gallery Image……………………………………………………………………...106-115
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