A Case Analysis in Synthesis

FIRST STATE BANK

OF ROANS PRAIRIE—2002
Submitted to
the Faculty of Business and Accountancy
University of Perpetual Help System Laguna
City of Binan, Laguna

In Partial Fulfillment of the

requirements for the Degree of
BS Accountancy

Espinido
Valencia
Villapando
I. First State Bank of Roans Prairie—2002

II. Executive Summary

The First State Bank of Roans Prairie was established since 1903 which owned and governed
by the Mathys Family. Its first and only office is located in a Roans Prairie Texas which has a
population of less than 500. For the Mathys Family to attain the operational efficiencies, they focused
on controlling the overhead cost and they preferred to employ technologies and machines rather than
hiring additional employees. Hence, they currently employs ten people. The bank offers banking
services such as checking, savings, money markets certificate of deposits, IRAs, consumer loans and
other basic banking services. However, the bank doesn’t offer ATM cards, debit and credit cards.
Offering a new products has been a difficulty for the bank although they have advantage on over
larger metropolitan banks and mortgage companies, the lack to produce new products might still lead
to customer loss and missed the opportunities that new customers could bring in the future. Also, it
was common for the First State Bank to spend a little amount of money on advertisements. They
somewhat relied on their reputation of having superior service, low cost services and its ability to
respond quickly to the needs of customers. Additionally, the bank has been known in building and
maintaining customer relationship. Since First State Bank has known for creating good relationship
with the customers, it has created a strong culture based on customer loyalty. Employees has genuine
camaraderie to other employees. An employee may open up or talk with the management to discuss
such issues. This is the major strength of the bank, they built this kind of relationship without coaching
or training. The average length of employment for the ten employees is 9.7 years. Seeing that First
State Bank is at his peak now, the board of directors refrain from making changes in the organization.
That’s why they hasn’t offered newer products.

III TIME CONTEXT

1903 the year where First State Bank was established
There is an increase in total assets, loans and deposits on its financial statement from the end
year of 1998 to 2000
At the end of the year 2000 First State Bank's two primary competitors have higher net interest
margins and noninterest income this is because of its lower loan-to-deposit ratio.
At the same year, their ROE was also low because of large amounts of capital and undivided
profits.
IV POINT OF VIEW
V. STATEMENT OF THE PROBLEMS
1.What are the other services that can be offer to conumers?
2. Formal strategic plan for organization
3. What should be the strategy in terms of advertising its product and services?
4. What does the bank can do to improve their employees
5. How do the First State Bank management face problems in economic, social, and others

VI. OBJECTIVES
* To innovate other new products and services
* To develop strategic plan for the future expansion of the organization
* To assign budget for advertisement.
*
*

VII. INTERNAL ANLYSIS

DESCRIPTION STRENGHTS WEAKNESSES

Management- the bank has strong culture of loyalty built X

to their customers and good camaraderie between
employee to employee and employee to management.
Marketing- they spent a little amount of money for their X
advertisement since they relied more on their reputation of
being a superior services and low cost producers.
Research development – refraining from doing some X
changes in the organization.

Product and Services Development- there’s no X

diversification of their product and services.
Strategic Planning- no clear vision to where the X
organization would be in the future.
EXTERNAL ANLYSIS
DESCRIPTION Opportunities Threats

VIII. ALTERNATIVE COURSES OF ACTION

1.
2. Business capitalize on investing in advertising
Advantage: the business and the product itself including its services will be easily recalled by the
consumers. It can segregate it’s products and services from other competing banks.
Disadvantage: Advertisements could be expensive therefore it might be a burden to first state
bank.
3.

IX. DECISION MATRIX

*Brief description of criteria
*Evaluation scale

X. Recommendations