A critical analysis of a credit union's strategic plan

Coast Capital Savings (CCS) is the second largest credit union in Canada. CCS has a 10-year strategic plan to grow to one million members, $20 billion in assets, and to have operations in all ten provinces in Canada by the year 2012. CCS plans to achieve this growth in two ways: 1) organically, with innovative products and services, and 2) through mergers and acquisitions. This paper analyzes the five-year progress of the strategic plan, since 2002, and offers strategic alternatives and recommendations based on research and trends in the credit union and banking industry. The paper proposes two strategic alternatives: mergers and acquisitions, and enhanced technology. As part of the internal analysis of the organization, the second alternative was modified to propose a strategic alliance with CommunityLend, a peer-to-peer, Internet lending company. The paper recommends that CCS find a suitable merger partner and initiate the alliance with CommunityLend.