Strategic issue in financial services
I chose these three arterial because of risk management, customer satisfaction and brand value can reflect the organization’s overall quality. Risk management is a process of calculating and estimate a certain risky environment and to minimize the risk.
It represents the overall operating situation of the bank, whether can take on risk (Power, 2008). Customer satisfaction, which can be defined as the whole business activities of enterprises give priority to with customer satisfaction (Anderson,1994). Customer satisfaction determines the future of the company. Brand value is a core of brand management.
It is the most important part, and is also basic symbol of brand different from competing brands, brand assets mainly reflects on the core value of brand.
(Duncan, 1997). BAA Group is one of the largest banks in Spain. BAA is a customer-centric global retail financial group founded in 1857. It has occupied Latin American markets. Abs’s business has included more than ten countries and where the pursuit of further development all over the world.
BAA is operating business which includes retail, common, and agency bank; Investment Banks; Asset Management; Insurance, and the network banking.
Fun,2009) Risk management The BAA Group’s risk management is aimed to protect solvency. Help customer to define its strategy with respect to risk, assume and facilitate of the development of its business. The BAA board will monitor a set of financial and non-financial risks on a regular basis which may affect the success of Group Abs’s business activities. According to the data provided by BAA website in 2013, generally speaking, the bank will have more than 45% of the risk ratio.
( agoraphobia. Com, N. D. ). Customer satisfaction BAA banks customer satisfaction is excellent; their aim is providing the best revises to the clients.
BAA continuously improve and develop the global strategy.
And collect all customers’ idea then try to fugue out the weaknesses, and increase service quality which included productions and sales. BAA can fully meet customer demand, complete customers’ requirements in a high quality services in any condition. At the same time, according to the survey stated, by 2013, the company received complaints never less than 20%. (agoraphobia. Com, N.
D. ). Brand value: the brand of BAA is a promise that makes stakeholders to have an experience of Working towards a better future for people (Rolland,2011).
The BAA brand has four values: customer eccentricity, simplicity, reliability and globosity. This brand had been strengthened, the popularity of BAA is obvious, BAA with team spirit and improve them to make customers have a better cognition, using commercial products to obtain customer loyalty.
During 2013, brand management in BAA has become a high valued of expects. In the whole world, BAA brand awareness is up to 70%. (BAA brand, 2013). Suntanned Group was established in 1857, the headquarters is located in northern Spain’s Suntanned. On the website about the Suntanned Group,
Suntanned by 76 businessmen linked to regional economy and to the Spanish colonial trade with the America, the 1 55-year old Suntanned climbed all the century is become a leading world bank.
Suntanned is currently the main financial group in Spain, its country of origin, and in Latin America. It also holds a significant position in the United Kingdom. Suntanned holds a unique position in the international banking sector, which allows it to increase its profits year after year, generating value for its shareholders, clients, and all of society. (Suntanned introduction website).
Risk management: by the banks own experience, from the inside to outside for protecting the interests of customers.
The bank is also usually trade-off between benefits and costs to reduce risk. (Pastor, 2013). There are a lot of business is risky, including risk investment, high loan and so on, according to the data in annual report, the bank will have more than 40%of the risk ratio. (annual report about Suntanned, 2013). Customer satisfaction: Suntanned have a promise to customer “helping communities prosper through providing simple, personal, and fair banking for household and business is at the heart of our strategy (suntanned.
M, 2013). Improving the service we offer at Suntanned is essential for us to implement this strategy and we have been working hard to deliver a great customer experience. According to the survey showed, Suntanned group has been the rate of complaints from 35% in 2012 to 22% in 2013. Suntanned get through the efforts of leader, personally to the scene to understand the customer’s feeling, reading letters from the customers, answering phone calls and handle customer complaints. Thus, Suntanned group is very effective to improve the customer satisfaction.
Brand value: Suntanned wows that the Suntanned brand is the group’s essence, a first-rate strategy asset. Suntanned is unique and single brand, its red logo and trademark are very shown corporate symbols clearly. As the survey stated that Suntanned brand awareness is 83%.
(Gala, 2011) Standard Chartered Group in London and Hong Kong stock exchange respectively ranked the FETES 100 index before 25 companies (in terms of market capitalization). Group headquartered in London, Standard Chartered Group in some of the world’s most dynamic market has been operated more than 150 years in Asia, Africa and the Middle East market leadership position.
Standard chartered bank is committed to leading the international market, to provide customers with excellent service. Standard chartered bank, more than 90% of operating income and profits from Asia, Africa and the Middle East market, the revenue by offering corporate banking and personal banking services. Group has more than 1750 branches in more than 70 countries.
Group business is growing rapidly in market, which has created a good employment opportunities for local. (Bank, S. C. 2003). Risk management: The management of risk lies at the heart of standard chartered group’s business.
Effective risk management can make banks profits increase. Standard Chartered group can estimate number to prioritize risk far as possible, make loss can cause of the biggest and most likely happened priority, while the relative risk lower things and post-processing. Thus, he bank will have more than 30% of the risk. (standard. Com, 2013).
Customer satisfaction: Standard Chartered Group also takes care about customers’ feedback, and aimed to improve own services. They do a survey every month.
The tracking has taken placed to all complaints by customer segment, for ensuring that they can improve services. According to the result of the customer complaints about 30 %. (standard.
Com , 2013). Brand value: standard chartered stated that ‘by doing things on the right way, we can support our customers and clients while having a position impact on the wider economy. The brand promise they can services all of the customer and better to others’ (Standard. Com, 2013). Brand assets have mainly embodied in the core value of the brand, or the core value of brand and brand essence.
Standard chartered group brand awareness is 80%. (standard. Com, 2013). Risk management Customer satisfaction Brand value Total mark BAA 45% 31 . 7% suntanned 27% 29.
67% standard chartered 26. 67% (the lower the risk, is the better signal; the lower the claims, makes the better; brand is unknown ,and which is the better one) The above form has clearly shows that the leader group is Standard Chartered, and the laggard group is BAA group. (b). Using Nations Matrix analyze the corporate strategy by leader organization that is Standard Chartered Group.
Nations Matrix is as two basic predicted and market oriented, distinguish the four products, market combinations and the corresponding marketing strategy, is one of the most widely used marketing analysis tools. Watts, 1998).
Market Penetration: market penetration tragedy refers to the market expand gradually expand strategy, the strategy of standard chartered group can expand the scale of production, increase product function, develop new markets. Its core strategy is embodied in two aspects: infiltration and objectives by using existing products open up new markets and provide new products to the existing market penetration.
Market penetration strategy is a classic competitive strategy. Standard chartered group have three competitive strategy that including strengthen cost control, and cake the enterprise overall lowest operating cost in an industry strategy. The group also have unique product than other enterprise, the group provides personal and commercial banking services and has global banking business experiences, and have a deep understanding and the understanding of regional markets, to provide customers with innovative products; standard chartered also centralize the resource to form the professional advantages.
Watts, 1998). Market Development: existing products to develop new markets, enterprises must find same product in different market demand for consumer customers, including product positioning and racketing methods tend to change, but do not have to change the product itself of core technologies. Standard chartered bank for VII customers and common customer launched two major financial brands. For all the customers, the standard chartered bank for their different demands to provide professional financial services. The group also help people teach financial plan.
The group also implement priority banking in the world, test-drive finance is introduced in most countries, this makes the bank cognition in many places, and more and more people pay attention to standard chartered (Andersen, 2002).
Product Development: Launch new product for existing customers, take product extension strategy, using the existing customer relationship to improve customer awareness. Using in expand the depth and breadth of existing products, launched a new generation or related products to existing customers, improve the standard chartered group in the consumer share.
Standard chartered ensure different customer can use different product and services. Product development mainly that the group can be better. Including the content of the many ways to attract customers, the most basic is to better products, better services, appropriate price, to reasonable network construction site. In the brand promotion of standard chartered bank, these aspects are unified requirement, also requires cooperation with each other.
(Andersen, 2002) Diversification: standard chartered provide new products and new markets.
Due to sometimes enterprise’s staff cannot use professional knowledge, thus that can use diversification. Customers can choose the market demand, product, technology, geographic scope and other variables in a defined service market. In terms of services, staffs of standard chartered bank irked in the global unified investigation, demand for customers when choosing financial bank and thinking mode has a certain understanding. (Reed, R.
, 2002). Such as some customer think bank financial products innovation better more, some customers are think should pay more attention to human nature and humiliation.
So, standard chartered group all know more in each aspect, cooperate in various aspects are also done. In terms of promotion, how should the group need to do is to “show’ go out in public, it also need to cooperate to do. In addition to these, in the whole product innovation, the organization also need to make some breakthrough unceasingly, and cooperate with development of different countries, the group also consider how to finance personnel and partners both do.
Therefore, In attracting customers in addition to the promotion activity, the group De more on products and services.
This is also a way of diversification. (Reed, R. , 2002) Consolidation: on the basis of the existing market and products, in order to consolidate market share, for the purpose of the product differentiation strategy to strengthen customer loyalty. At the same time, when the overall market share fell, downsizing and reduce department become inevitable.
In fact, according, in attracting customers, one of the group fundamental points is the quality of services, in an appropriate channels shows the most customers. Based on this concept, no matter what the shark first the type brand, and attract customers to come over.
Without to new rodents, but also efforts to consolidate the market. Make standard chartered bank more and more better. (Webster, 2001).
(c). Evaluate the corporate strategy by the leader organization that is standard chartered group. Every enterprise has its own different strategy, the same to standard chartered group. As a financial enterprise, standard chartered ann. pay close attention to the first key areas is through the financial behavior, support the real economy, and promote the sustainable economic development.
The organization is committed to all types of customer services, with innovative products and services, as well as its extensive global network advantages, actively support the development of all enterprises. (Caves,2010). Small and medium-sized enterprises is standard chartered bank in the market the main driver of Job creation and economic growth. Standard chartered attaches great importance to the local small and medium-sized enterprise growth. Caves,2010).
The second key areas are that if remove the characteristics of standard chartered bank as financial enterprises, their own responsibilities for basic also include?
Such as providing employment, support the sustainable development of the employees, create the ideal work environment for employees; Such as saving energy, promote efficiency; Such as driving the development of employment and upstream and downstream suppliers and so on. The third key areas is on the outside of the enterprise, to provide public service for the society. (Caves,2010). Standard chartered also encourage employees to participate n volunteer activities, and give each employee a year three days of volunteer service day paid leave, for the community to provide public service.
What kind of enterprise strategy has advantages and disadvantages? Pay attention to talent, value diversity, and team spirit is the advantage of standard chartered, and standard chartered characteristic of corporate culture. In contact surface, standard chartered asked by people, the department for the guest, the guest to department stores, for each of our employees have different requirement, for each employee’s special need we will try o meet.
Try our best to help employees to achieve personal development, should be concerned about helping employees, inspire staff how to play better, is ubiquitous in today’s liquidity ratio high talent hunting market environment, if a business can give the positions of every one that provides a continuous release their potential development space, this kind of cultural cohesion, for the development of the enterprise, is undoubtedly the most powerful. (Honestly, 2013). In conclusion, BAA Group, Suntanned Group and Standard Chartered Group are very famous bank.