...LUMBERS Case study: Wells Fargo 1 Established in 1852, Wells Fargo is the oldest operating bank in the US. The bank is currently the fourth largest bank in the United States. The success of Wells Fargo lies within its remarkable strategy and competent management, which have allowed the bank to grow and diversify in ways that their competitors could only dream. The bank went through several changes, with over 1500 mergers and acquisitions. The most important merger was with Northwest Corporation, a merger, which is at the foundation of Wells Fargo as it operates today. It is clear that the underlying reason of the merger was management’s ability to identify the strengths and weaknesses of their respective banks, while foreseeing the complementary benefit their respective skill-sets could provide. Indeed, the merger brought together two halves and through the effects of synergy, it surpassed the potential of the separate halves. The story of Wells Fargo is full of similar cases in which the ability of strategic thinking and competent management laid the groundwork for what is now one of the most respectable banks in the US. This paper will analyse key strategic factors and competencies, which have resulted in the success of the bank. It will examine the bank through an analysis of their business environment, strategic capabilities and sources of sustainable corporate advantage. The analysis will be conducted using well-known management models ranging from PESTEL to Porter...
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...1. Introduction to the Organization The banking sector remains always the most dominant sector of the financial sector. Hatton National Bank PLC (HNB) is Sri Lanka’s second largest private sector bank in terms of assets (behind Commercial Bank of Ceylon) and is the fourth largest amongst all banks (after accounting for the two state banks, Bank of Ceylon and Peoples’ Bank). HNB accounts for 10% of banking system assets. HNB provides a broad range of banking products and services in the areas of; Corporate Banking, Small and Medium Size Enterprise Banking, Trade Finance, Retail and Consumer Banking, Asset Leasing, Loan Syndication and Project Finance. HNB has an AA- credit rating from Fitch Ratings Lanka Limited, Sri Lanka’s main rating agency. HNB has been acknowledged globally by The Asian Banker as the Best Retail Bank in Sri Lanka for Six consecutive years for its performance from the year 2007 to 2012. The HNB umbrella of today has two local subsidiaries - HNB Assurance and Acuity Partners. HNB have been established for more than 120 years. Their ethos are so simple for its survival even in turbulent times. HNB remain firm in their belief that they must continue to be banking partner in the lives of the Sri Lankan people. HNB has put in place an effective Risk Management System with clearly stated procedures, utilizing various committees that constitutes senior management personnel with requisite expertise/experience. 1. Identifying Retail Banking Sector...
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... Since the growth of information technology there has been a change in the banking industry from branch banks and paper to net working and digitized banking services. The ways of communicating information and knowledge through computers has truly changed the way we think, work and live. A good example is through Information Systems, which can be defined as any method of communication knowledge from one person to another and/or from one source to another. It works by providing the best possible information to its users while also taking into account that different users with their own specific tasks may need their information presented in different ways. Improving the ways users retrieve, identify and respond to information. In contrast to a data system, that simply provides raw data to the user. Competitive advantage in the digital economy is even more important now than ever before, as for some businesses the impact of the digital economy is groundbreaking. The fast changing technologies, markets and the appearance of new business models have introduced major changes in industry structure shifting the nature of competition while keeping the core business but not the core business of most firms , not changing the, instead information systems simply offer tools that can increase the company’s success through the traditional sources of competitive advantages - be it reduced expenses, enhanced customer service, or superior management skills. This report studies...
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...Michael (00000011339) CLASS: M6 DATE OF SUBMISSION : 26 March 2015 Bank Mandiri was formed on 2 October 1998, as a part of the Government of Indonesia’s bank restructuring program. In July 1999, four state-owned banks-Bank Bumi Daya, Bank Dagang Negara, Bank Exim and Bapindo-were amalgamated into Bank Mandiri. The history of these four banks can be traced back over 150 years, and together they encapsulate the development of the Indonesian banking sector. Today, Bank Mandiri continues this tradition of more than 150 years of delivering outstanding banking and financial services that was developed by the four legacy banks, all of which played an integral role in the development of the Indonesian economy over many generations. Bank Mandiri is currently at an advanced stage of the implementation of its 2010-2014 transformation program as part of which the Bank is working toward revitalizing its vision “To be the most admired and progressive Financial Institution in Indonesia”. To achieve this vision, the focus of Bank Mandiri’s business transformation in 2010 will focus on 3 (three) business areas, namely: Wholesale transactions, Retail deposits & payments, and Retail financing. These three focus areas are supported by the strengthened organization and the infrastructure improvements (branches, IT, operations, risk management) so as to provide integrated service solutions. In addition, the Bank is also supported by skilled human resources, constantly updated technology...
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...Analysis of Prime Bank overall performance from strategical point of view Letter of Transmittal Date: 15-04-2013 To Leo V Dewri, Lecturer Department of Business Administration, East West University Aftab Nagor, Jahirul Islam Avenue, Dhaka 1212. Subject: Submission of a term paper on “Analysis of Prime Bank overall performance from strategical point of view”. Dear Sir, We, the students of Strategic Management (MGT-480), would like to present a term paper on “Analysis of Prime Bank overall performance from strategical point of view”. To complete this term paper we have gathered some information as we find. According to your valuable advice we did study on internet, read some article published on performance evaluation from strategical point of view. The remaining data we got from the different websites (WDI) etc. We really have learned a lot and gained valuable experience while preparing this term paper. If you need any further clarification for any part of this term paper, we are always ready to provide any kinds of information regarding this term paper. Yours Sincerely, On behalf of the group- _____________________________ Md. Naeem Mia ID: 2009-2-10-153 Department of Business Administration East West University Acknowledgement In the beginning, we want to give many thanks to the Almighty to help us complete this term paper on the Analysis of Prime Bank overall performance...
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...Mountain Bank: Achieving a Competitive Advantage in the Marketplace Mountain Bank is involved in several sectors within the banking industry. These are consumer lending, real estate and mortgage banking, corporate banking and retail banking. Retail banking in consumer lending has been the largest area of the bank’s business, yet not the most profitable. Mountain Bank could gain more stable accounts and profits through real estate and mortgage and corporate banking. In order to increase its business into these areas, Mountain Bank must develop and implement strategies that will give the business a competitive advantage within the market. Two strategies that the organization can use are the competitive business and human resource strategies. Competitive Business Strategy A competitive strategy “focuses on different ways to provide goods and services to meet customer needs” (Brown & Stewart, 2009, p. 40). Mountain Bank should incorporate the differentiation strategy in order to attract more real estate and corporate clients. The company should strive to set itself apart from other banks through its utilization of optimal customer service by its bank tellers. “Recent studies have found that bank tellers are critical to the success of Mountain Bank. In fact, one study found that customer’s experiences with tellers is the single most important driver of customer satisfaction” (Brown & Stewart, p. 69). Customers will be more inclined to expand their business with...
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...term project. (1 point) A sustainability analysis is similar to a five forces analysis because they are focus on creating competitive advantage. The sustainability analysis is to analyze and find a way to compete with competitors and deal with potential entrants, in order to maintain profits in the long run. The analysis includes the company’s resources and isolating mechanism that help the company to sustain its advantages. The five forces analysis also analyze 5 factors, like supplier power, buyer power, competitors, new entrants, and substitutes and complements, which affect to the company profits. The company can use both analysis to build competitive advantage and maintain its position, market share, and profit margin in the industry. 2. (a) How do economies of scale affect sustainability? (b) Economies of scope? (2 points: 1 point each) When economic of scales happens it definitely affects sustainability because the resources and isolating mechanism changes. For some companies might be easier to scale to large quantities of production and the competitive advantage could change for the one able to do it. Economies of scope will also change the sustainability because producing two products because it is the same cost to produce one of them can change how companies limit competitors and one of those two products could become an advantage for some or the other way around 3. Kellogg’s and General Mills have their market dominance for over a century. Sprint...
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...SANTANDER (D) - TRANSFORMATION AND GROWTH IN THE UK BY NAME: IREDIA OSAGIE MODULE: SERVICES STRATEGY TABLE OF CONTENT 1. Abstract 2. Introduction to Strategy 3. Industry and Market in which Santander competes 4. Structure and dynamics of the market in which Santander competes 5.1 The threat of entry 5.2 Bargaining power of Supplier 5.3 Bargaining Power of Buyers 5.4 Threat of Substitutes 5.5 Rivalry among existing competitors 5. Critical success factors for competing in the industry 6. Its resources, competences, capabilities and how Santander differentiates itself from competitors 7. Its sources of competitive advantage 8. The major Macro/Micro environmental strategic marketing issues facing Santander, its view as an opportunity or threat, time frame for which each issue will be most relevant and the level of priority to be assigned to them 9.6 Political issues 9.7 Environmental issues 9.8 Social issues 9.9 Technological issues 9. To what extent can Santander’s strategy be described as being marketing oriented, what other strategic orientations could be considered 10. Other strategic orientation that could be considered 11. Strategy evaluation methods utilised 12. Similarities and differences of the different schools in analysing Santander 13. Appropriate strategy...
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...leading to the emergence of very large banks and financial institutions. The key driving force for the merger activity is the severe competition among firms of the same industry which puts focus on economies of scales, cost efficiency, and profitability. In certain countries, weak banks were forcefully merged to avoid the problem of financial distress arising out of bad loans and eroding of capital fund. An example is UT Bank absorbing BPI Bank in Ghana These and many other factors made the stakeholders to bring in a dynamic leader like Marian Jones who could confront the emerging global changes in the banking industry With the liberalization and privatization processes in Ojakrom, the banking industry took a different turn with a fast changing several banking deregulations underway and increasing competition in the market, Marian Jones perceive that to fit into the current changes, there has to be a massive organizational change and to move ICICI from a development bank mode to that of a market-driven financial conglomerate. One of the first thing to do to ensure success in the new found direction of ICICI was to confront the high incident rate of employee turnover to the extend that it could destabilize the operations of the bank. Marian Jones wondered how to manage the manpower. She also wondered if technology was a solution to handle some of these problems and would it also help in the company’s growth plans. 1 Which competitive strategies are most appropriate for ICICI...
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...applications information technology and optimize their beneficial effects. Other than that, the information system have as more than a set of technology that support efficient business operations, work group and enterprise collaboration, or effective business decision making. Information system technology can change the way business compete. Furthermore, information system application it’s also provide effective support of a company’s strategy for gaining competitive advantage. The information system also involve using information technology to develop products, services and capabilities that gives a company strategy to improve and to enter the market place. The information technology to help an organization gain competitive advantage. Besides that, the outsourcing also have to take care. These because, outsourcing this work will help shall cut cost and focus on systems that improves the competitive advantages. For the knowledge, information system cannot alone cannot provide enduring business advantages. To have a good system, the system must originally intended to be strategic frequently become tools for survival. Information technology take on life of its own and does not serve management and shareholder interest very well. To get the best result of system. The information technology have to...
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...Commonwealth Bank of Australia Table of Contents Executive summary ……………………………………………………………………………….2 1. Part A……………………………………………………………………………………...3 a. Introduction………………………………………………………………………..3 b. Mission…………………………………………………………………………….3 c. Current value strategies……………………………………………………………3 i. Creating Value for Its People……………………………………………...4 ii. Legal Responsibilities……………………………………………………..4 d. Market definition of the firm……………………………………………………...4 2. Part B……………………………………………………………………………………...5 a. Situational Analysis……………………………………………………………….5 b. Internal Analysis…………………………………………………………………..5 i. Resources………………………………………………………………….5 ii. Capabilities………………………………………………………………..7 iii. Core Competencies………………………………………………………..8 iv. Competitive Advantage…………………………………………………...9 c. Strengths and Weaknesses……………………………………………………….10 d. Internal Opportunities……………………………………………………………11 3. Part C…………………………………………………………………………………….11 a. Situational Analysis with regard to Information and Communication Technology………………………………………………………………………11 4. Conclusion……………………………………………………………………………….12 References………………………………………………………………………………………..14 Executive Summary This is a marketing strategic report, which is divided into three parts. Part A describes about the mission, current value strategies and the market definition of the...
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...1: CASE STUDY 1 TOPIC: A CASE STUDY TO SHOW EQUITY BANK LIMITED COMPETITIVE STRATEGIES This assignment is submitted as partial fulfilment for the award of Master of Business Administration of Africa Nazarene University MONTH: February, 2016 LECTURER: DR. ISAIAH IMAITA A CASE STUDY TO SHOW COMPETITIVE STRATEGIES OF EQUITY BANK LIMITED This case study shows the products development strategies adopted by Equity Bank Limited (EBL) so as to have a competitive advantage over the other players in the banking sector. Primary data was collected through an in-depth interview with the senior management of Equity Bank Limited –Embu Branch using an interview guide, while secondary data was obtained from the National Bank library as well as other studies carried out in the banking sector e.g. Wandate, (2012), Gatome (2012), Njagi, L. & Kombo, H. (2014), Githagui, (2014), Mutua, (2013). Banking Industry in Kenya Competition among commercial banks in Kenya is quite stiff and most players have attained competitive advantages through product and service differentiation in terms of cost and customer experiences Banks have also invested heavily in technological products, processes and institutional changes. Banks have invested in training programmes and employee empowerment practices. Commercial banks in Kenya are in very stiff competition and have almost uniformly adopted competitive strategies ranging from superior products and services, technological...
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..."smarter, fairer and more human way of doing money" which contrasts to the traditional banking model [Zopa Website]. In this essay I plan to discuss the uniqueness of Zopa and their business model in relation to existing financial institutions. Following this I will analyse Zopa's competitive advantage and then discuss Zopa's main competitors and how they could create barriers to entry for late entrants. 1) Begin your essay by discussing how Zopa is different from existing financial institutions. Table 1 Due to the combined impact of the financial crisis causing access to credit to tighten, the increasing multi financial service products available, and the competitive rates, Zopa's members count has been able to grow to 140,000 in 2007. Table 1 can help provide a better understanding of how Zopa is operationally different to other financial institutions. Firstly, Zopa, unlike their rival larger financial institutions, only carries one product through personal loans. In contrast is RBS's seventy different services across a range of deposit accounts with over 14 million personal customers [Kupp et al. 2006]. In Chart 1 below we can see how the product portfolio of the Traditional High Street Banks are a lot larger than of Zopas. Having said this, Zopa has been able to provide outstanding lending and borrowing rates; their lending returns are 6.75% AER compared to Halifax's 4.75% AER (Exhibit I). The diversity of products of their rivals allow them to make many...
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...1. Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. Changes are occurring in all organizations. Mountain Bank is no exception. Mountain Bank has a strong presence in retail banking and limited presence in the consumer lending, real estate and mortgage banking, and corporate banking lines. It is recognized that corporate banking is profitable. Since Mountain Bank has such a small presence in the corporate banking market, it has to position itself to communicate this business line to a new audience. To achieve a competitive advantage in the marketplace, Mountain Bank should implement the differentiation strategy. Mountain Bank will set itself apart from its competitors by offering a unique twist to its services. It may offer an added benefit to its customers who are already receiving the basic services. The employees at Mountain Bank hold the key to achieving the competitive edge. Mountain Bank’s employees would hold an advantage over their competitors as they tend to be cordial and highly skilled which makes customers feel trusting. A personal greeting such as “Good morning, Mr./Mrs. Jones” from the bank employees when customers enter for services would be a tremendous plus for the bank. Along with that greeting, employees would make the customers aware of the availability of the new services that the bank now offers and they are not yet taking advantage of. 2. Describe the types of practices a human...
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...Mountain Bank Yasmin Elbasal Dr. Jama Rand Strategic Human Resource Management January 22, 2012 1-Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace. . “A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices” (tutor2u.net) Mountain bank should pay attention to its weakness areas. It has a stable and competitive position in retail banking unlike, the consumer lending, real estate and mortgage banking, and corporate banking lines where it has very weak position in the market. Mountain bank needs to implement differentiation strategy in order to achieve competitive advantage in the market place. When an organization is operating where there are many other organizations offering the same services or products it , therefore it must look for being different and unique by offering new creative products as well as high quality customer service that satisfies different desires and needs . This strategy would recommend the bank to charge premium prices, that would be considered extra charges or higher prices to differentiate their product and give the customer the impression of quality and uniqueness. Customers should see mountain bank as a different bank. Employees should be encouraged to share their ideas and suggestions, as well as tellers who are in direct contact...
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