Gocb Case Analysis

780 Words Nov 24th, 2013 4 Pages
Adamson University
900 San Marcelino St., Ermita, Manila
Marketing and Management Department

In Partial Fulfillment of the Requirements in Strategic Operation’s Management

"A Case of Golden Opportunity Commercial Bank”

Submitted by:
Lugnasin, Jessica E.
Malibiran, Kathleen
Fong, Kimberly
Co, Kimberly
Besana, Blasie
Jonota, Myrine
Ruiz, Danielle Lorenz

Submitted to:
Prof. Rodel Pomentil
Faculty

Class Schedule:
MF 3:30 – 5:00PM

Date Submitted:
October 5, 2013

Viewpoint: New Management of the GOCB
Time Context: December 7, 2008

I. Problem Statement:
1. How can GOCB renew their strategy?
2. How can GOCB deal with their unstable status?
3. How GOCB will resolve the problem of the ethical
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| • Aggressiveness in engaging into risky mortgage market and financial products.• GOCB’s questionable investments, unusually high salaries of its officers and payment of unusually high interest on its term deposits.• Distrust throughout the financial system.• Competition is always present in the corporate world. |
IV. Assumption

Investing to a non-performing assets and loans and engaging to mortgages will not make the company profitable.

V. Alternative Courses of Action:

Alternative Courses of Action 1
The GOCB must downgrade the status from commercial bank to thrift bank.

Alternative Courses of Action 2
The GOCB must undergo liquidation to pay their debts and request loans from BSP.

Alternative Courses of Action 3
The GOCB must conduct a seminar that studies b.

VI. Analysis

Alternative Courses of Action 1:

Advantage: * It test’s stress of the bank to solve potential problems that may arise. * Allowed to offer higher rates on saving deposits. Also they were offered funding from a government agency, the Federal Home Loan Bank, to make it easier for them to offer mortgages to a wider range.

Disadvantage: * Tend to bring down an entire system if their operations are not sufficiently monitored. * Revenues/ profits and number of customer are much lesser.

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