A strategic management paper Bestloan Finance and Leasing Philippines, Inc. / Ivy C. Flores, Joseph Jun T. Liprado, Carl Darren N. Peralta, Diadem Joy B. Baliling.

Thesis (M.A)--Pamantasan ng Lungsod ng Maynila, 2021.

A strategic management paper presented to the Faculty of the PLM Business School--Graduate Program in partial fulfillment of the requirements for the degree Master in Business Administration.

Bestloan Finance and Leasing Philippines, Inc is a financing company committed to provide financial assistance to small and medium enterprises, overseas Filipino workers, and employees. Bestloan Finance and Leasing Philippines, Inc was established last July 27, 2006, located at Don Onofre Bldg. II, National Highway, Sala, Cabuyao, Laguna (Head Office) with a starting paid-up capital amounting to Php 2,500,000.00. The company offers loan services to employees from different private and/or government entities thru ATM and thru Direct Salary Deduction.

Bestloan, as per 2009 Philippine Standard Industrial Classification (PSIC), belongs to Section K classification; subclass code 64923 (Financing Company Operations). Bestloan has the second highest market share from 2015 to 2020, following only Capex Finance and Investment Corporation. The Bestloan and Capex market share combined already covered the 80% of the total market share among the identified direct competitors. For the past 6 years, the industry is continuously growing with an average of 63.83% growth. With this data, it is concluded that the industry cycle is still in its growth phase and many opportunities are still available. With the product characteristics that the industry offers, (1) Time to maturity, (2) Repayment Schedule, (3) Interest, and (4) Security.

The external environment shows that the financial and insurance activities remained resilient amid the health crisis, posting positive performance on every quarter from 2020 to 2021. An increase in the unemployment rate and prices of goods and services are among the impact of the pandemic. To prevent further damage to the economy, the Government passed some legislation and implemented some programs. Prior pandemic, the Philippine GDP yearly growth rate is at least 6%. (www.adb.org) Although, The Asian Development Outlook (ADO) 2021, ADB's flagship economic publication, forecasts the Philippine economy to grow by 4.5% in 2021 and 5.5% in 2022. Substantial progress in the country's vaccination rollout will help restore consumer and business confidence, though uncertainties over how the pandemic will unfold globally and domestically can pose risks to growth prospects. Bestloan's External Factor Evaluation (EFE) total weighted score is 2.65 which indicates that the firm is responding above average to existing opportunities and threats of the industry.

Based on the results of strategy formulation tools and considering the external and internal factors, Bestloan is in an excellent position to use its strengths and take advantage of the opportunities. Therefore, it is recommended to use Market Penetration. With Bestloan's high physical customer based presence and capacity, extension of its current product offering in digital form would appeal to a different segment of its current market. Here extending it digitally would capture a younger market that they have not yet reached or are not yet currently serving.

The objective of the study is to increase market share by 5% within the next 10 years. The Philippine economy is expected to return to pre-pandemic levels between late 2022 and early 2023. Even though the company posted a negative growth between 2019 and 2020, it was able to avoid losses during the pandemic. In order to achieve this Bestloan must have a steady growth in revenue in 2022 to 2024 and reach the same level of revenue pre-pandemic (2019) while maintaining the market share at 45% against the 3 competitors for the year 2022 to 2024.