Standard Chartered Bank For Global Initiatives Vision

Standard Chartered Bank and The Banking Industry

Discuss about the Standard Chartered Bank for Global Initiatives Vision.

The Standard Chartered Bank is a commercial bank that offers different services including loans, credits cards, savings and current accounts, equity solutions and insurance policies to meet different customers’ demands. The bank was formed in 1969 through a merger of two individual banks, the Chartered Bank of Australia, India and China, and the Standard Bank which was based in South Africa. The two banks had capitalized on the expansion of trade between Africa, Asia, and Europe

The rise of the banking industry came after the globalization and modernization of the world’s economy. This processes had a significant impact on financial based institutions. The financial and banking reforms are part of the significant changes in the economy as the banking industry hold a fundamental role in the global economy. In today’s world of finance and money, the banking sector in any country plays a crucial role in the economy as it plays a significant role in grooming and the general growth of any country’s economy. Banks play a part in all forms of activities from mobilization to distribution of public finance. They also have a role in the purchase of vehicles to providing financial assistance to businesses projects and individuals (Lubatkin, & Chatterjee, 1994).

The task of the banking sector in the prosperity, success, and development of a country can’t be neglected. They play a crucial role of being the key resource and reserves of the capital funds. These capital funds are the ones essential for investments, and they contribute to the growth of the economy in a large measurable extent to a country. The financial institution also plays a vital role in the enhancement of investment to any nation. They play a primary role in the starting and expansion of businesses of all level and fields be it small or a large business venture. Through banks, day-to-day operations a smooth running and development of economic activities have been realized, and this has a direct impact on the generation of wealth by increasing production. The most important financial intermediaries are the commercial banks which by a significant percentage helps curb the rate of unemployment by providing moral, advisory and financial support to people encouraging them to embrace entrepreneurship and create jobs for themselves and others in the country in which they are located. In different countries, the government is working with commercial banks through central banks and the ministry of finance, identifying growth potentials of various sectors of the economy and making them liable for providing them with the startup capital like in the agricultural sector (Porter, 1996).

The Vision Statement, Mission Statement And Statement Of Values

Standard Chartered Bank vision statement focuses on making the organization a world-class service share Centre for the Standard Chartered Group. The company also has some costs in its operations. These include courage in that the corporation takes a measured risk and is on the forefront for what is right. It is also responsive through the delivery of a timely and relevant solution for their customers. Creativity is also a value adopted at Standard Chartered Bank where it has encouraged innovativeness and adaptability thus continuously improving the quality of service they offer to their customers. The company has also focused of trustworthiness whereby to aim at being honest, open and reliable to their clients (Ackland, 2012).

These fundamental values, mission, and vision of the organization are relevant to the Standard Chartered Bank in providing access to finance. To ensure economic growth and decrease in the unemployed to employment ratio, Standard Chartered Bank is focused on providing financial support to its customers (Mostafiz, 2014). They do so by working hand in hand with the concerned players to create a supportive environment and regulatory framework that avails modern financial services to thousands and millions of people. The company also provide credit facilities mainly focused on supporting microfinance projects. Through the signing of loan and cooperation agreement with the various government and individual projects, the firm has made it possible for such project to be realized thus enhancing peoples’ lives. (Bank, 1993).

Potential improvement in the vision, mission, and values of the bank is noted in the various areas. First is the diversification of the services in which the company can focus on new opportunities and services in the industry. These services may include mobile banking in which their customers can receive business transaction to their phone.  The company also can create a new payment service through which payments can be made. For example, in can provide pay bill numbers to some major institutions like shopping malls. (Ackland, 2012).

Standard Chartered Bank has several objectives from which is it operated at. These are

Through expanding their services all over the world, Standard Chartered Bank aims at increasing the numbers of corporate accounts each year. They plan on taking their banking services to areas in which they had not an earlier set baseThe hope to do so by creating awareness of their services through the social media like television and radio informing potential investors of their banking services. They also are opening up banking offices in these areas and the remote ones to make them even more accessible by those who didn’t access their business services earlier. Through this measure, the company hopes to increase their volume of sales through the provision of their activities services (Bank, 1993).

The Objectives Of Standard Chartered Bank

The bank has an aim of increasing the total number of loans and the value of these loan through the making of partnerships with individual organizations of firms and the government. Through this partnerships, the company will be able to give out credit and act as a primary source of capital while establishing new projects aimed at reducing the unemployment ratio. Projects in the agricultural sector in Africa, China, Europe and Australia can be started, and the bank provides the start-up capital, and the project will surely prosper as the company continuously assess and take part in advisory committee of the management of the project. It is through the identification of projects and forming partner with the various institution that the bank will realize an increase in the value of commercial loans offered (Banerji, Mahtani, Sealy, & Vinnicombe, 2010).

The company objective each year is to increase the number of deposits made by account holders. This can be achieved mainly by increasing their operation activities to cover areas in the market that were not considered and to venture into new regions and areas that the bank services have not yet taken root (Peng, 2001).  They also aim at increasing interests earned on every person who holds a savings account. This will attract more account holders to deposit with the bank and take advantage of the benefits their money will earn. The company also aims at increasing consumer deposit accounts in areas where the bank is prominent by creating awareness through social media of the different and diverse services the bank offers (Collins, & Porras, 1991).

The company has an objective of reducing the rate of unemployment in the country that it is based in through creation of opportunities by providing the necessary informational opportunities regarding available project in the society. The Bank also aims at providing career training on projects and opportunities of which they feel that their total potential has not been realized, and entry into the project industry would increase the country’s economy as well as improve the economic standards of the people who will engage in the project

Standard Chartered Bank has an objective of increasing its popularity among people. In every nation that the company has an administrative branch, the company is aimed at selling even more of their services through billboards and pamphlets where it gives a memorable image, very conspicuous and appealing to the eye having a summarized information of all banking services the company offers. Also through advertisement in the social media group. For example, in the television and radios, they plan to run their ads in between news breaks and sports broadcasting because it is at these time that they will have the largest number of viewer. The company also hopes to realize the objective through carrying out promotional campaigns in the communities (Lubatkin, & Chatterjee, 1994).

The bank to attain their realized financial goals has to improve on their customer’s services. The company should create more “help Desks” where a new customer can be directed to the procedures and the requirements to open a bank account and even get a loan. The company should employ experienced customer care service. This service will help guide the customers through the registration and acquisition of a loan or even during deposit of cash (De Wit, & Meyer, 2010).

The procedure for obtaining a loan in the bank take a whole lot of time than expected. The company should find a means by which processing and acquisition of financial loans takes a shorter time for the entrepreneur to use a market gap he/she wants to invest in (MUMO, 2012).

Internal analysis

SWOT analysis is a tool used to analyze the internal environment of business.

Being among the oldest banking industry in the world, it has a good international exposure and access to global resources. The bank can gain location advantage while locating to a new region. The bank also gains ownership advantage due to a direct foreign investment support and a free market economy. It has also managed a variety based and a superior positioning in the access station which is almost impossible for competing banks to imitate. The bank also has made full technological advancements in the banking sector (Porter, M. E. (1985).

The bank has by far failed to cope up with the cost advantage. The external environment favors cost advantage in the banking industry which the bank has failed to offer (Singh, & Kohli, 2006).

The study of the external environment reveals that the banking sector market is advantageous if a cost advantage is taken other than differentiation advantage. The bank also has an opportunity in developing countries with emerging economies and can realize profits from them (Banerji, Mahtani, Sealy, & Vinnicombe, 2010).

The banks face stiff competition as the banking industry is currently saturated. There is an economic recession globally having an effect of reduced disposable income to their customers. Competitors are developing efficient imitation techniques of competitive advantage (Porter, 1979).

The outer analysis of Standard Chartered Bank can be studied using the PESTLE analysis.

Countries of the world in which the company has set up an administrative unit and has commissioned the selling of its services are an open economy. The company, therefore, enjoys the freedom to exercise its business activities as the government in those areas have an open economy and thus have an appreciation of local and foreign investments. The bank enjoys a market-based or the free market economy with minimal government interventions and controls.The government in these countries also allows healthy competition with an aim of improving the quality of banking services. This has made Standard Chartered Bank to undergo expansion through growth in various parts of the world with an example being Europe where the bank has grown and beat the competition (Sadri, & Lees, 2001).

In recent years the economy has been suffering from a recession due to a global financial crisis. This has been a big blow to the bank as the level of unemployment has been on the rise globally. It is having a severe negative effect on the disposable income and the bargaining power of their customers as a result of unemployment and inflation. This has had an impact on the production levels and different governments are forced to revise their taxing policies as a result of economic recession (Collins, & Porras, 1991).

As a consequence of the economic crisis in various countries, the consumer focus and preference is now shifting to buying of standardized goods and services that are of low prices. They are now more focused on saving rather than spending. This has created an opportunity in the bank as more saving accounts are opened each day. The demand of the brand loyal consumers is shifting to low quality brands due to low incomes. This has presented an opportunity for the bank to come up with services targeting the low-income earners (Torres, & Augusto, 2016).

The government supports competition in technological advancements and innovations. The bank has invested heavily in technology while carrying out its operations to increase efficiency and quality of service offered (Banerji, Mahtani, Sealy, & Vinnicombe, 2010).

The sole purpose of policy in an organization is to improve the shareholder’s worth. This is mainly achieved by increasing the customer value which will have a direct relation to an increase in sales, market share and profitability. The client’s value is money and can be described as the worth in monetary status of the economic, service, social and technical benefits in exchange for the price paid for the services offered by Standard Chartered Bank. Prices of this services in the bank should be reasonably lower than that of rival firms and should have a reasonable save in customers’ money when related to the keep he/she would have made if they went to a rival company regarding interests and investment returns (Olsen, & Haslett, 2002). The bank can negotiate with suppliers to bring the overall costs down and consequently provide services to their customers at a lower reasonable price. This will attract more clients with minimal disposable income and little purchasing power. This will have an impact on the vision, mission and objectives of the organization as it will offer more loans, credits cards, savings and current accounts, equity solutions and insurance policies to meet different customers’ demands. This will be in line with the bank’s vision of providing a world-class service share Center for it will be extending its services to an even larger group who will be willing to work with them and not the rival banking firms (Johnson, Scholes, & Whittington, 2008).

Conclusion:

It can be concluded that Standard Chartered Bank has a competitive advantage that promotes the bank’s harvest strategy. To expand their business operations, the bank must find new markets in Africa, Asia and middle East so as to grow more efficiently because of the growing economy and the catch up efforts made by some nations (Olsen, & Haslett, 2002).  Considering the inner and external environment factors that are highly influential to any business, the bank has an advantage in the banking industry when you compare it to other banks (Johnson, Scholes, & Whittington, 2008). The bank should take into consideration this advantage they have and increase and expand both geographically, economically and increase and improve on the services they offer for a better profits realization.

References

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