A Strategic Plan Study

Presented to the Faculty of College of Business Administration

University of the Cordilleras

In partial fulfilment

Of the requirements for the program

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

Aled Krisjan Kjiell R. Fabia

Sam K. Marang

Eurika Sheisha S. Manzo

Nour M. Tahir

Maribel T. Vidad

October 2019
 TABLE OF CONTENTS
Title Page Page Number
INTRODUCTION
Background of the firm................................
Nature of Operations..................................
Mission Statement Analysis............................
Strategic Objectives..................................
STRATEGIC FORMULATION
SWOT Analysis.........................................
Internal Factor Evaluation............................
External Factor Evaluation............................
Competitive Profile Matrix............................
Internal- External Matrix.............................
SWOT Matching.........................................
SPACE Matrix..........................................
STRATEGY IMPLEMENTATION

Quantitative Strategic Planning Matrix................

Action Plan...........................................
Recommendation........................................
 INTRODUCTION

Background of the Company

Cebuana Lhuillier Pawnshop (formerly known as Agencia

Cebuana) commonly known as Cebuana, is a Philippine-based

pawnshop, and the flagship brand of PJ Lhuillier Group of

Companies. Jean Henri Lhuillier is the current President of CEO

of Cebuana. Cebuana Lhuillier is a non-banking financial

institution offering services such as pawn-brokering, money

remittance, insurance, bills payment, remit-to-account, corporate

payout, collections, and e-loading.

In 1968, Henry Lhuillier's son, Philippe Jones Lhuillier

went forth and opened the first Lhuillier pawnshop at Libertad

Street in Pasay under the trade name Agencia Cebuana. It traces

its roots in Cebu, where then-French Consul to the Philippines,

Henry Lhuillier established his first chain of Agencias in 1935.

Throughout the 70's and 80's, Philippe Jones Lhuillier opened

more agencias in Metro Manila.

The company pursued further nationwide expansion in 1987

and adopted the trade name, “Cebuana Lhuillier,” which it still

carries to this day. In 1998, Philippe Jones Lhuillier was

appointed the Philippine Ambassador to Italy. Philippe Jones

Lhuillier's son, Jean Henri Lhuillier, took the helm and became

Cebuana Lhuillier Pawnshop's President and Chief Executive

Officer in the same year.

Nature of Operation of the Business

1. We provide for your microfinance service needs - Cebuana

Lhuillier offers one-stop-shop services to our clients. Aside

from pawning, clients can avail of international and domestic

money remittance services, microinsurance and micro savings

 products, as well as bills payment, foreign exchange, and e-

loading services.

2. When you transact with us, we shall:

 Manifest courtesy in our words and actions - We shall give you

due respect and attention in your every service interaction

with the company.

 Aim to cultivate a lasting relationship - We shall treat each

transaction as a starting point for a lasting relationship by

creating a positive first impression and continuously engaging

with you after the transaction.

 Deliver professional and personalized service - We shall act,

communicate, and present ourselves in a professional manner.

We shall value your reputation, personal information (e.g.,

contact number, beneficiary information), hard-earned money,

valuable items, time and effort. We shall be sensitive and

aware of your specific needs to be able to deliver

personalized service.

 We value your feedback - We are committed to listen to your

concerns and help you address your needs. You can get in

touch with us through our Cebuana CARES system:

Call us: (02)779.9800; (02)759.9800

Office hours are from 9:00 am to 6:00 pm, Mondays to Sundays

 We record phone calls to help us provide an accurate and

consistent service, and for quality assurance purposes.

Text us: GLOBE – 0917.81CARES (22737)

SMART – 0918.81CARES (22737)

VIBER – 0918.81CARES (22737)

*Text only. No voice calls.

Message us: www.facebook.com/cebuanalhuillierpawnshop

Email us: cebuanacares@pjlhuillier.com

 We will respond to simple e-mail inquiries within the day if

received within office hours - For e-mail concerns that need

coordination or investigation, we will acknowledge receipt of

your query within 24 hours (if received during office hours)

and provide you with a certain time to expect our feedback

regarding your query.For written concerns/feedback, we will

reply fully within ten (10) working days from receipt of your

e-mail.

 We monitor your level of satisfaction with our service.

SMS – We proactively gather your feedback by sending you SMS to

check service satisfaction with your recently availed service.

Surveybot –We deployed a chatbot, “Ate Ana”, for an interactive,

digital and automated self-service survey regarding your branch

experience. You can search for and chat with her on Facebook

Messenger.

 We make our services available to you through all the

available channels possible - Aside from our over 2,500

branches nationwide, you may access our services using

your mobile phone or computer.

 We value your loyalty - Our 24k Plus Membership Rewards

Program is a way of showing gratitude to our loyal

clients. 24k Plus cardholder are entitled to exclusive

privileges, discounts, special offers and other exciting

freebies.

Mission Statement Analysis

Cebuana Lhuillier is the leading and the largest micro

finance provider in the Philippines, focused on financial

services such as pawning, remittance, micro insurance, micro

savings and business to business micro loan solutions to enable

more Filipinos to have access to financial solutions. We

attribute our dominance in the industry to innovation, to our

robust network of local and international partners and steadfast

commitment to nurture our growing client and to increase the net

income of the company by 10% annually. We aspire to provide the

best experience every time you transact with us and we assure you

to provide secure, safety and best working environment to our

valuable employee to make you are a kaibigan, ka- CEBUANA.

Mission Statement Analysis

Customer Filipinos

Product Oriented financial services such as pawning,

remittance, micro insurance, micro savings

and business to business micro loan

solutions

Place Philippines

Technology to our robust network of local and

international partners

Philosophy to have access to financial solutions

 Profitability to increase the net income of the company

by 10% annually

Self-image We aspire to provide the best experience

every time you transact with us

Public image the leading and the largest micro finance

provider in the Philippines

Employee Oriented to provide secure, safety and best working

environment to our valuable employee

Strategic Company Objective

1. Customer Satisfaction

 Improve the financial services that the business

offers to the customers

2. Operations

3. People/Culture
 STRATEGIC FORMULATION

SWOT Analysis

According to Van Vliet (2010), he defined SWOT Analysis as

a strategy method that can be used to evaluate these focus areas

involved in a project or organization for strategic planning and

its key purpose is to identify the strategies that will create a

firm specific business model that will best align an

organization’s resources and capabilities to the requirements of

the environment in which the firm operates.

STRENGHT

1. Security- Safety in transactions

2. Well established

3. Manpower- Employing experts

4. Global expansion

5. Technological Advancement

6. Accessibility

7. Customer Trust

8. Excellent Service

9. Excellence in Leadership

10. Excellence in Corporate Social Responsibility

WEAKNESS

1. Poor International transactions

2. Business hours (not open 24 hours)

3. Transaction Prohibition
4. Some agents don’t allow international transactions

5. Minimum operating space

6. Higher rate of remittance services

7. Economic threat

8. Don’t offer insurance

9. Lack of employees

10. Poor facilities

OPPORTUNITIES

1. Offering a vast number of financial services

2. 24k reward membership program

3. Authorized agent app

4. Happiest Pinoy Contest

5. Power of Supplier

6. Strong demand for the service of pawnshop

7. Use of technology

8. Trust

9. Open branches to abroad

10. Expertise of each employees

THREAT

1. Competition

2. Threat of substitutes

3. Technology

4. Inflation rate of the country

5. Financial Crisis

6. Fortuitous events

7. New companies in the country

8. Foreign exchange rate

9. Whistle blowing

10. Changing of policy

Internal and External Factor Evaluation

Internal Factor Evaluation

According to Jurevicuos (2014), he defined Internal Factor

Evaluation (IFE) Matrix as a strategy tool used to evaluate

firm’s internal environment and to reveal its strengths as well

as weaknesses.

Legend:

4- Superior

3- Above Average

2- Average

1- Poor

Internal Factor Evaluation Weight Rate Total

STRENGHT
1. Security- Safety in transactions .03 2 .06

2. Well established .08 4 .32

3. Manpower- Employing experts .07 3 .21

4. Global expansion .02 1 .02

5. Technological Advancement .02 2 .04

6. Accessibility .07 3 .14

7. Customer Trust .07 3 .21

8. Excellent Service .06 3 .18

9. Excellence in Leadership .05 3 .10

10. Excellence in Corporate Social .05 3 .15

Responsibility

WEAKNESS
1. Poor International transactions .07 3 .21

2. Business hours (not open 24 hours) .05 1 .05

3. Transaction Prohibition .04 2 .08

4. Some agents don’t allow international .05 1 .05

transactions

5. Minimum operating space .03 2 .06

6. Higher rate of remittance services .03 2 .06

7. Economic threat .08 4 .32

8. Don’t offer insurance .04 2 .08

9. Lack of employees .05 2 .10

10. Poor facilities .04 2 .08

Total 100% 2.57

The internal factor evaluation of Cebuana Lhuiller rated as

average. However, it is heading towards being above average

provided with an external factor evaluation of above average. It

is possible for the internal part to reach that peak.

External Factor Evaluation

According to Jurevicuos (2014), he defined External Factor

Evaluation (EFE) Matrix as a strategy tool used to examine

company’s external environment and to identify the available

opportunities and threats.

Legend:
4- Superior 3- Above Average 2- Average
1- Poor
External Factor Evaluation Weight Rate Total
OPPORTUNITIES
1. Offering a vast number of financial .05 4 .2

services

2. 24k reward membership program .05 2 .1

3. Authorized agent app .05 2 .1

4. Happiest Pinoy Contest .05 1 .05

5. Power of Supplier .05 4 .2

6. Strong demand for the service of .05 4 .2

pawnshop

7. Use of technology .05 3 .15

8. Trust .05 3 .15

9. Open branches to abroad .05 3 .15

10. Expertise of each employees .05 3 .15

THREAT
1. Competition .05 4 .2

2. Threat of substitutes .05 4 .2

3. Technology .05 3 .15

4. Inflation rate of the country .05 3 .15

5. Financial Crisis .05 4 .2

6. Fortuitous events .05 3 .15

7. New companies in the country .05 3 .15

8. Foreign exchange rate .05 3 .15

9. Whistle blowing .05 2 .1

10. Changing of policy .05 2 .1

Total 100% 3
Based on the calculated weight and rate, we are able to get

a total of 3 which means that Cebuana Lhuillier take advantage of

the opportunities and threat that could lead to improvement of

the services offered by the company. Also, through the external

factor evaluation of Cebuana Lhuillier will maintain to give fin-

ancial services to their clients and won’t allow to lose the

trust that the customers gave to the company.

Competitive Profile Matrix

CPM Cebuana M Lhuillier Villarica

Weight
Lhuillier Pawnshop
Factor
Key Success Factors Rate Total Rate Total Rate Total

Service Quality .10 4 .4 4 .4 3 .3

Location .10 4 .4 4 .4 2 .2

Business Structure .10 3 .3 4 .4 2 .2

Global Expansion .10 4 .4 3 .3 1 .1

Financial Position .10 4 .4 3 .3 3 .3

Customer Loyalty .10 4 .4 3 .3 3 .3

Technology .10 4 .4 3 .3 2 .2

Scope of Service .10 3 .3 3 .3 4 .4

Line

Management .10 2 .2 2 .2 2 .2

Experience

Price Effectiveness .10 3 .3 3 .3 1 .1

Total 100% 3.5 3.2 2.3

Based on our rating computation as seen, Cebuana

Lhuilluer has a higher competitive advantage than M

Lhuuillier when it comes to global expansion, financial

position, customer loyalty, and technology while M

Lhuillier has higher competitive advantage than Villarica

Pawnshop when it comes to service quality, location,

business structure, global expansion, technology and price

effectiveness.
I-E MATRIX

SWOT MATCHING

Strength
1. Security- Safety in transacti
ons
2. Well established
3. Manpower- Employing experts
4. Global expansion
5. Technological Advancement
6. Accessibility
7. Customer Trust
8. Excellent Service
9. Excellence in Leadership
10. Excellence in Corporate Soci
al Responsibility
Weakness
1. Poor International transactio
ns
2. Business hours (not open 24 h
ours)
3. Transaction Prohibition
4. Some agents dont allow intern
ational transactions
5. Minimum operating space
6. Higher rate of remittance ser
vices
7. Economic threat
8. Dont offer insurance
9. Lack of employees
10. Poor facilities

S1O1 W1O8
S8O8 W9O10
S10O3 W7O6
S4O9 W2O3
S3O6 W3O6
S9O8 W4O10
S8O8 W1O9
S7O6 W4O1
S10O5 W3O7
S4O7 W8O2
S6O7
Opportunities Threat
1. Offering a ast number of fina 1. Competition
ncial services 2. Threat of substitutes
2. 24k reward memership program 3. Technology
3. Authorized agent app 4. Inflation rate of the country
4. Happiest Pinoy Contest 5. Financial Crisis
5. Power of Supplier 6. Fortuitous events
6. Strong demad for the service 7. New companies in the country
of pawnshop 8. Foreign exchange rate
7. Use of technology 9. Whistle blowing
8. Trust 10. Changing of policy
9. Open branches to abroad
10. Expertise of each employees

S1T3 W1T7
S2T9 W3T3
S3T9 W4T7
S4T7 W6T8
S5T3 W7T1
S6T10 W2T2
S8T1 W4T2
S8T6 W3T10
S1T2 W2T1
S6T3 W7T4

Based on the matrix, the Internal Factor Evaluation of Cebu

ana Lhuiller is 2.57 and the External Factor Evaluation of Cebuan

a Lhuiller is 3. Cebuana Lhuiller has a high EFE which means that

the

stategic position of Cebuana Lhuiller offers a better financial s

ervices to their customer whether it is domestic or international

transactions. Cebuana Lhuiller has an average IFE

ONLINE SOURCE

Van Vliet, V. (2010). SWOT Analysis. Retrieved from ToolsHero:

https://www.toolshero.com/strategy/swot-analysis/
Jurevicuos, O. (2014). IFE & EFE Matrices. Retrieved from

https://www.strategicmanagementinsight.com/tools/ife-efe-

matrix.html

https://en.wikipedia.org/wiki/Cebuana_Lhuillier

https://www.cebuanalhuillier.com/about/