Currently, Cuba is carrying out profound transformations in the economic sphere in order to mitigate the shocks of the crisis that the world is going through and to lay the foundations for the country's development, safeguarding the social conquests of recent decades.
One of the decisive lines of the economic takeoff to which the country is urged is precisely that of Improvement initiated in the Cuban business system; This consists of a process of continuous improvement of the entity's internal management, whose main objective is to achieve competitiveness by increasing efficiency.
The perspective with which institutions are viewed is rapidly changing and their results are no longer shown only as an entity, but also as they affect the infrastructure of the markets, giving their management greater responsibility for decision-making as It is stated in Guideline number 8 of the Party and the Revolution: “The increase in powers of the entities' directorates will be associated with the elevation of their responsibility regarding the efficiency, effectiveness and control in the employment of personnel, material resources and financial managers; coupled with the need to hold accountable those managers who, with decisions, actions or omissions, cause damages to the economy. ”
Overseers of the application in all spheres of the Guidelines of the economic and social policy of the Party and the Revolution to improve the quality of life and advance towards the future together with the Cuban Process, all entities are directed to better administration and planning of the economy in search of greater efficiency, through achieving adequate organization and control of processes.
With these bases and the constant call of the nation to the real rationalization of resources, our entity has been drawing up policies and strategies that ensure the permanence of the institution in a profitable and functional way.
The beginning of 2014 represents the beginning of an awakening in the development of the Cuban economy and a reorganization of the entire business and financial system of the country, determined for the implementation of Guideline Number 55, drawn up by the Party and the Revolution, which determines on the main activity consisting of the Purchase and Sale of National Currencies, proposing:
CADECA SA is immersed in the transformations associated with the implementation of this guideline, being the main provider of the purchase sale service between the two currencies in force in the national territory for natural citizens and as a bank of financial services to the foreign public, for what requires a change of strategy to prevail in the market; hence, for this work, it has been identified as:
issue
The absence of a structure that allows the profitability of the Exchange Bureaus in the face of monetary unification that enables the institution to remain as a market leader in bank deposit services, in addition to other services derived from deposit and card processing fees magnetic to natural and legal persons.
That is why the objective of this work is defined: Design a structure that maintains the profitability of CADECA SA in Ciego de Ávila.
Development
Characterization of Casas de Cambio SA, Ciego de Ávila
The Cuban capital limited company CASAS DE CAMBIO SA CADECA, was incorporated on June 14, 1994, beginning operations in the Ciego de Ávila Province on May 19, 1997, under the following Corporate Purpose (as it appears in the License of the BCC of 2/10/09).
- Make purchases and sales of banknotes and travelers checks, exchange of bank checks, operations with credit cards, debit cards and other services related to their activity in national and foreign currency. Provide payment services for social security. and transfer deposits from entities for accreditation in bank accounts. Collection of tariffs. Sale of stamp stamps. Other financial services determined by the Board of Directors of the Central Bank of Cuba.
Regarding management strategies and guiding policies, it is mainly based on statutes supported by vision and mission:
Mission
"Contribute to compliance with monetary policy and to the proper functioning of the country's economy, providing natural and legal persons with services for the sale of national and foreign paper money and other means of payment, as well as other related services in the national territory"
View
"Continue perfecting the work to guarantee optimal service in the coming years, backed by the professionalism of its workers."
CADECA Ciego de Ávila, at the gates of Monetary Unification:
Although the province carries out a large number of operations for the collection of various currencies, magnetic card operations, Western Union, Travelers Checks and the processing of bank deposits, the profitable development of the institution is given by the Purchase - Sale of CUP, taking as an example the behavior of income at the end of 2013:
| Total revenue | Buy-Sell CUP | Income from Payments a
Workers at CUC |
Operating Income | |
| Amounts | 5´107,125.87 | 5´022,076.60 | 32,233.93 | 52,815.34 |
| Per Hundred of Total (%) | 98.3 | 0.6 | 1.0 |
Regarding the profit, representative results were obtained, shown as follows, expressed in thousands of pesos:
| Indicators | Plan | Real |
| Income | 4,600.0 | 5,100.0 |
| Expenses | 1,100.0 | 1,200.0 |
| Utility | 3,500.0 | 3,900.0 |
The institution currently has 28 enabled and operational boxes, distributed in:
Municipal Branches: 20
International Airport: 4
Hotels: 4
Of these, 5 boxes operate at extended hours at the main branch, the 4 boxes at hotels, and at irregular hours according to the need for service, the 4 boxes at the “Jardines del Rey” International Airport branch.
To carry out its functions, the institution has an approved workforce of 119 workers, of whom 20 work in the offices of the Provincial Directorate, and 99 are linked to branches.
The workforce is distributed as follows:
| Template: 119 | Technicians: 93 | ||
| Tables (Leaders) | 14 | ATMs | 58 |
| Technicians | 93 | Supervisors | 22 |
| Services | eleven | Computer specialist | two |
| Operators | one | Computer technician | one |
| Internal Auditor | one | ||
| Frame Specialist | one | ||
| Legal adviser | one | ||
| Tec. Resources. Humans | 3 | ||
| Accountants | two | ||
| Esp. Security and Protection. | one | ||
| Distributor Balancista | one |
Of the total workforce we have 32 University students, 31 middle technicians, 54 12th grade and 2 9th grade, currently no one is studying.
The aforementioned operations incurred total expenses of 1,500 thousand pesos in total currency, as previously mentioned, of which 651.1 thousand pesos were allocated to the salary fund, stimulation and additional payments and 213.2 thousand pesos for contributions and taxes. on the salary fund. So 57.6% of the expenses executed correspond to salaries and contributions to the state for this concept.
These expenses, within the total executed, allowed the province a profit of 3.6 million pesos in total currency, each of the branches obtained profitability, taking into account the existence of monetary duality that has ensured the raison d'être of the institution.
So far, as explained, the entity's greatest source of income (98.3%) is the CUP Purchase-Sale, representing the main level of activity of the municipal branches, while the Hotels and the Airport dedicate their efforts fundamental to operations with Various Currencies.
Marketing Variables Application for Strategic Analysis
Undoubtedly, when thinking about a service, it is necessary to understand the needs that motivated that service and the initial way in which it is conceived, hence the analysis of the place (Plaza), the definition of the profit margin in our case (financial institution), definition of the product or service portfolio, as well as the ways in which real and potential clients are made known, our services are elements that must always be present, only from the knowledge of these variables is that an organization can devise strategies that allow it to achieve its true purposes.
It is said that for the realization of this service, no Marketing work is carried out, so to comply with this guideline it is essential to apply the Marketing Variables applied to the activities that would be maintained, as well as the application of Strategic Direction that promote greater effectiveness in decision-making and the reorganization of the institution.
Given the corporate purpose of CADECA and the distribution of the types of operations that are executed, the entity will suffer a significant depression in its operations and income levels with the monetary and exchange rate unification, so restructuring is highly important for adaptability. to the new characteristics of the market, as a competitive way of prevailing in it and ensuring the maintenance of the institution profitably.
As the first phase of the analysis of the state and prospects of the entity to adapt to new changes in the process of subsisting and achieving a favorable position in the market, the form of management must be changed until a Strategic Management is consolidated, starting, as defined P. Kotler, a “Process of developing and maintaining a viable fit between the company's objectives and resources and the changing market opportunities. The objective of the strategic direction is to model and restructure the business and product areas of the company, so that they give satisfactory benefits and growth ”.
At the moment when the beginning of the defined “Day 0” is marked, where the process of monetary unification will begin, unifying the currency system, not even rates, the entity's main source of income will disappear, making a further analysis detained, through fundamental Marketing variables, of the situation that is coming, you have to:
Position in the Market: x Decrease in the volume of operations for this concept, source of the highest percentage of income, that is, Loss of the Market Share.
- Need to diversify the Service Portfolio in the corporate purpose of the entity as a non-bank financial institution, including the banking system, exemplified in the processing of Deposits of Entities in the Tourist Pole, where our Houses with the greatest operation of various currencies are located. of the current plant, so that large investments are not incurred, focusing on niche markets, especially tourist boarding sites, hotels and areas of influx of foreign public.
Conclusion:
CADECA presents a weak and unfavorable position that warrants an immediate change in strategy regarding corporate purpose and organizational infrastructure.
Market Development and Growth:
Starting from the forecasted position, the entity must take pioneering positions in the inclusion of the new market conditions through:
- Restructure office networks in tourist places. Implement publicity for established and newly incorporated services. Ease of applying interest rates. Encourage excellence in customer service aimed at achieving customer loyalty. Locate the service points in suitable and strategic places, facilitating access to the premises. Provide operational and communication facilities to the needs and preferences of clients according to their culture and origin.
Conclusion:
Encourage expansion policies in the most profitable markets, mainly in tourist areas, in addition to achieving accessibility for all types of public.
Customer analysis:
Given the location characteristics of the offices and the main operations they carry out, it will be important to work with different treatment in each one according to their particularities, that is, direct the institution to adjust depending on the characteristics of the environment:
- Municipal Branches:
Given their operational level, they are not considered capable of being profitable on their own, and therefore have a negative impact on the results of the institution. This situation is due to the fact that the functions that they would carry out are already established in BPA, with the treatment of natural persons, and BANDEC, serving mainly entities; In the case of Ciego de Ávila and Morón there are also BFI units, which process various currency operations. All these banking entities are established in the market, strongly rooted and leaders in the services for which they were conceived.
There is also the growing installation in all municipalities of ATMs, which have considerably reduced operations with magnetic cards, in addition to allowing the payment of purchases by this means in retail stores; as well as Western Union payments from the dependencies of CIMEX SA
- Currency Exchange Hotels and Airports:
In contrast to the Municipal Branches, the Casa de Cambio facilities located in the Cayo Coco and Cayo Guillermo Tourist Poles are defined as market leaders in banking services, so the direction of operations should be established from this location.
There are houses in all the hotels that have been processed and there is even knowledge that in the structure of the new Gaviota construction projects, the authorization of a premises for CADECA has been taken into account. The Money Exchange Offices have seen an increase in their functions with the deposits of the entities, being appreciated in the requests received to establish new contracts for these services, with clients that operate in the keys, such is the case of Gaviota Tours.
In the case of the personnel assigned to these locations, their mastery of the communication systems with clients has been ensured, so that the institution is prestigious.
Conclusion:
Need to rethink the organizational and strategic structure of the institution. Analyze the current locations and locate houses or savings banks at the most strategic points that allow increasing the operational level and obtaining foreign currency.
Customer service depends mainly on the training and quality of the personnel that provide the service, so the greatest attention should be focused on cashiers who interact directly with the public.
Strategic Analysis of organizational restructuring in CADECA Ciego de Ávila
Based on the conclusions obtained by the application of the Marketing variables, the need to organizationally restructure the institution in the process of achieving profitability can be raised, for which it must start from:
- Analysis of the ideal places where the highest profitability is achieved with the services provided. most strategic place for the development of operations. Proceed to the closure of the municipal branches and their merger into one of the banks established in each municipality, either BANDEC or BPA, so that the staff is not abandoned, but is available to location of the National Banking System, not available to CADECA, as it has no possibilities of keeping it operational. Modify the corporate purpose and establish beneficiary rates for the institution in terms of operations with legal entities.
Having the main conclusive statements, the pertinent analyzes can be carried out:
- Analysis of the ideal places where greater profitability is achieved with the services provided.
After the Monetary Unification, the public par excellence that will be counted as a client will be the foreigner, for which reason the structure of the "Jardines del Rey" Keys, made up of Cayo Coco and Cayo Guillermo, in which currently The greatest number of operations in various currencies of the province is generated, presenting the entities Gaviota and Mintur as hotel service providers. Relations with ECASA are also maintained by the Branch at the Jardines del Rey International Airport.
The characteristics that appear in the North keys, a strategic location for the development of the institution, refer to this situation:
Gaviota currently operates 4 hotels in Cayo Coco, in which there are Money Exchange Offices. They are presented with extended hours and the transportation of the workers is done through Transmetro buses.
The “Jardines del Rey” International Airport Branch remains operational, presenting the transportation of workers as the main limitation, which is in negotiations with the ECASA Directorate and, in the event of Monetary Unification, it is expected to obtain the result that so far has not It has been obtained, constituting to ensure the transportation of the workers. In this way, Cubataxi's expensive services would be eliminated, which will soon be leased as self-employed.
As part of the development of Cuban culture and the commercialization of art, an Artisan Market has been set up, where almost all the foreign clients who visit the hotels attend, in addition to having representation from various extra-hotel retail marketing entities, making of this location the ideal place for the qualification of a Branch, including the personnel of the Administration of the Province (Provincial Direction) in the site of greater operation of the keys, subordinating the Exchange Houses of the Hotels and centralizing the direction and the operability. This place, due to its importance, consists of all the transport routes of the Transmetro buses.
The opening of a hotel complex that will comprise two hotels, so far Flamingo 3 and Flamingo 4, is currently in projections, in which a CADECA Exchange Office is in structure. Transportation would also be done by Transmetro.
There are a total of 6 MINTUR hotels in Cayo Coco and 4 in Cayo Guilermo, with which contractual relationships could be established to allow the location of Money Exchange.
The opening of a hotel complex in Pilar is planned, a beach with a large foreign influx in Cayo Guillermo, including International Cruises, a possibility that could be exploited for the location of Money Exchange.
- Restructure the organizational infrastructure leaving the personnel essential for the execution of the operations, through the relocation of the Provincial Directorate, including boxes in their subordination and premises, in the most strategic place for the development of operations.
Given the aforementioned conditions and characteristics and making an analysis of the structure conceived according to the activities of the branches and the Provincial Directorate, in addition to the separation of functions as established by Internal Control in accordance with Resolution 60/2011 of the Office of the Comptroller General of the Republic, a totalized structure of 41 workers is proposed according to current conditions, which is susceptible to modifications depending on the development of operations or the growth of enabled and functional Money Exchange Offices.
| Administrative Staff (Hours 8.30 am - 5.00 pm) |
| (4) Principal Specialist (Operations, Accounting, HR)
(5) Banking Supervisor (Cash) (6) Counter «B» (7) Human Resources Specialist (8) Network Administrator Specialist (9) Computer Security Specialist (10) Security and Protection Specialist) (11) Balancista - Distribuidor (Buyer) y Técnico Mtto. (12) General Service Assistant |
| Main Branch (Hours 8:30 am - 5:00 pm) | |
| Integral Supervisor (13)
Banking Supervisor (14) ATMs (15 - 16) Reserve ATMs (17 - 18 - 19) |
|
| Hotels (Hours 9.00 am - 9.00 pm] | |
| Banking Supervisor (20 - 21)
ATMs (22 - 29) |
| Airport Branch (Extended Irregular Hours) |
| Branch Director (30)
Integral Supervisor (31) Banking Supervisor (32 - 33) ATMs (34 - 41) |
Ciego de Ávila Proposed Structure after Monetary Unification Location: Cayo Coco (2) Legal and Panel Advisor
Managing Director (1)
Enabled Boxes: 10
Total Workforce: 41
Pictures: 4
Administrative Workers: 5
ATMs: 21
Officials (No Cashiers): 11
This preliminary proposal is subject to changes depending on the valuations regarding the needs and requirements of internal control, specifically in the "Security and Protection", IT and "Internal Auditor" positions, which were not included as the dependencies are few, in addition to already existing a survey of the risks in the entity and having a specialized team of External Auditors of Head Office that is in charge of Planned and Surprise Control actions; In addition, an internal system of Tests and Reviews is well established, which allows keeping the checks in all areas.
It also refers that the workers selected to stay in the institution must be duly selected by a proven suitability process, taking into account the characteristics of each one in terms of the performance of their duties, in addition to the capacity and quality of work. The most efficient and effective workers must be selected, those who manage to be effective for the institution and are identified and committed to it.
- Proceed to the closure of the municipal branches and their merger into one of the banks established in each municipality, either BANDEC or BPA, so that the staff is not abandoned, but is available to the location of the National Banking System, not available to CADECA, having no chance of keeping it operational.
Given that the majority of CADECA workers in municipal branches are founders, or have worked for long periods of time in our institution, they must be explained the revolutionary process that is carried out in the country and endorse their work for their location. or its merger with another branch of the banking sector that allows them to continue working.
Regardless of the best intentions of the directors and cadres of the institution, it is an inevitable step to make the institution profitable and prevent it from being declared financially and economically unsustainable.
- Expand the corporate purpose and establish beneficiary rates for the institution in terms of operations with legal entities.
Starting from the need to generate income, the proposal to establish feasible rates for the processing of accounts to state entities is also promoted, such is the case of Gaviota Tours, which is located in the Cayería Norte and presents a great source of income, this contract is It is in the process of being a new acquisition client and the proposal to open the accounts has been raised. There are also other institutions such as Islazul, in addition to those that currently operate at the airport that make deposits.
However, account processing services could be increased to entities not only depository, but also operating banks, since there is the possibility of imposing the institution on the market since there is no competition even in these locations. Within these entities are the UEB of the UCM that work in the construction of the hotels.
Expected results
Based on the aforementioned, if the recommendations provided in this work are applied, especially in the Proposed Structure Model, CADECA, SA, will be in a position to face new changes, achieving profitability from achieving new advantages. competitive, especially that related to the creation of a sustainable competitive advantage, consisting of the willingness and commitment of its contact personnel to offer a quality service, as well as diversify the services that are provided today.
Conclusions
At the end of this work, results have been obtained through the analysis of the policies to be implemented, using the application of marketing variables as a tool, which has allowed us to conclude that:
- When starting a monetary unification process, CADECA will reduce its current income by 99%, making it essential to apply strategic and management change techniques. It is essential to change the structure in order to remain in the market and direct institution to the generation of profits. It is necessary to modify the corporate purpose of the institution, allowing to expand the sources of income. It is essential to establish relationships with banking institutions that would assume workers who are not selected in the process of suitability in the process of secure its location in the sector.
recommendations
Based on the results obtained at the end of the application of the procedures and reflected variables, it is recommended:
- Begin the restructuring of the province immediately, making it possible to have achieved the highest degree of organization at the time of monetary unification. Include and keep informed and oriented the personnel who will intervene in the change process, ensuring their correct training. Determining the level of information to provide to the personnel in charge of the selection and the selected personnel. The availability process is legislated and goes through a Suitability Process carried out by an Expert Committee, the workers will be informed of the process in which they are and the results of the selection will be duly communicated to them. Ensure the premises and equipment with the best possible characteristics based on the Assets that the institution currently has.Ensure the willingness of the banking sector to assume workers who cannot maintain themselves in the new CADECA structure. Establish a feedback system that allows knowing the needs of customers.
