The report is based on analyzing the business of VTB Group Company in Russia and the effect of the international business across borders as well. It is essential to understand the nature of the business and the operation of such business in other parts of the world as well.
The main aim of the business is to analyze and review the international competitive strategy of the company along with issues related to the control of the respective company in Russia. Proper analysis has to be done as to understand the competitive strategies that can help the respective company to enter the other countries or regions. The main purpose of the report is to management of different human resources across borders as well as identifying the key issues that are threats for the respective company. The opportunities has to be ascertained as well as this will help in identifying the future opportunities of the respective company across the border.
The structure of the report includes the overview of the respective company along with design of the present organizational structure of the company as well. It will include the strategies that are essential for them to enter the other regions or countries as well.
Overview of VTB Group
VTB Group is global provider for different kinds of financial services that generally comprises of more than 20 financial constitutions and credit institutions that are operating in all the required areas of financial markets (“VTB – World without barriers”, 2017). The respective company’s network that is global in nature is unique in the entire financial market of Russia. It helps in facilitating the promotion of other Russian organizations to engage into the financial markets. The majority of the shareholders of VTB Bank are Russian government and it has more than 60% voting rights as well.
The current operating position of VTB Bank is in Russia presently and they are operating in other countries as well that includes Armenia, United Kingdom. VTB Bank is operating as the parent company in other countries such as Germany as well as France. VTB is having subsidiaries along with affiliated banks in the other part of the countries that includes Angola as well as Georgia. VTB Capital has its branches in Dubai as well as Singapore that is making them work more effectively and planning to start their operations in other countries as well. According to the reports of 2015, VTB Bank is 14 million individuals along with corporate clients are using the banking services of VTB and it is increasing effectively as well (Cavusgil et al., 2014).
Review of the competitive strategy
VTB Bank deals with the investment, retail banking along with corporate sectors in the competitive market.VTB deals with different kinds of threats along with opportunities from their competitor in the entire industry. The main competitor of VTB Bank is Morgan Stanley along with Renaissance Capital (Sakas, Vlachos & Nasiopoulos, 2014). There are different kind of threats available to VTB Bank that has to be analyzed by them in order to understand the weaknesses and strengths of the company as well.
Figure 1: SWOT Analysis
(Source: Brewster et al., 2016)
Organizational structure
Figure 2: Organizational structure
(Source: Created by author)
From the diagram, it can be analyzed that the present structure of the organization helps in understanding that hierarchical structure is followed in VTB Bank. Under the Board of Management, there are sub departments such as administrative, risk management along with strategy making committee. Similarly, under supervisory department there is internal audit, card centre as well as F & A department wherein all the functions of the management are taken care by them. The executive department takes care of the responsibilities that help in understanding the issues that needs to properly taken care by VTB bank officials.
There are different kinds of control issues faced by VTB Bank that are listed as follows:
These are the different kinds of business control issues that are faced by VTB Bank that are unavoidable in nature and it can be reduced with proper implementation of strategies that can make reduce the risk in the future. Proper precautions have to be taken by the officials as to avoid such risks in the near future (Armstrong & Taylor, 2014).
Appropriate and proper strategy will be a source for competitive advantage of VTB Bank that includes different approaches and moves to enter into the different markets successfully. VTB Bank has adopted multinational corporation strategy, as it is a successful business model that has separate laws followed by them as well (Sparrow, Brewster & Chung, 2016).
Multinational Corporation helps VTB Bank in analyzing the risk of failure involved in the business and solving as well as reducing it with proper application of strategies both in parent and host country. International firm is another entry strategy used by VTB Bank as this helps them in starting their operations in other foreign countries as well easily without investing much capital and it will provide marketing effort as well (Storey, 2014).
Supply chain management
The main approach of VTB Bank helps in creating impact on the production, suppliers and customers of the bank (Gamble & Thompson, 2014). Effective and proper supply chain management is essential for VTB Bank that can support the strategy objectives such as growth and globalization along with turnaround in the financial situations of the company.
Proper operational control is essential to be done by the companies as to understand the procedures of the organization are in proper place in the organization or some changes are required in order to analyze such changes (Knowles, Holton III & Swanson, 2014).
VTB Bank has to adopt some operational control operations, as this will help in analyzing the strategies that needs to be adopted by them as to control such issues in the bank. Operational control is required in VTB banks to understand the sound and safe operating system (Bondarenko, 2014).
Management of human resources is essential to be done by the organization, as this will help them in maintaining two key components namely managing risks and people in banks. VTB Bank has implemented human resource management process in such a way that it helps in implementing planning as well as analyzing the performance of the organization as well (Wagner III & Hollenbeck, 2014).
Issues
Therefore, it can be inferred that there can be different kinds of risks that are involved in the management of VTB bank or any other financial institutions as well. However, proper strategies have to be utilized in order to analyze the issues or the threats that can influence the business of the bank and this will help them in analyzing the strengths of the business as well. The respective bank needs to stay ahead of the different trends and changes in the operations of the bank, as this will help VTB Bank to be ahead in the competition process in the future as well.
Conclusion
Therefore, it can be concluded that the operating position of the company is strong in all countries including of Russia. The existing structure of the organization of VTB Bank helps in managing the human resource management properly. VTB Bank has the operations in different parts of the world and it is trying to expand the operations in other parts of the world as well. There are different kinds of threats or issues that are faced by VTB bank but such issues can be resolved with proper implementation of strategies such as to take the competition in a positive way, as this will help them in growth of the company as well. The entry strategies namely licensing and franchising strategy helped VTB Bank in understanding the advantages of using strategies, as this will help them in introducing their business in other countries as well. Lastly, supply chain management has to be properly analyzed, as this will help them in making proper growth and globalization as well.
Therefore, it can be recommended that VTB Bank needs to adopt strategies related to the controlling of operations in the business, as this will help in analyzing the issues related to supply chain management. VTB Bank has to identify the risks that can influence their operations in the respective countries and proper management is required to increase their operations in other countries as well. VTB bank needs to analyze the opportunities in such a manner that it will generate growth and globalization in the entire economy as well.
The other recommendations suggested are regarding the operating position of the bank in other countries as well as this will help in proper implementation of supply chain management. The threats or the issues faced by the company has to be taken positively by VTB Bank, as this will help them in gaining competitive advantage in the competitive market and turn those threats into their opportunities as well.
The SWOT analysis conducted helped in analyzing the competitive advantage of VTB Bank in the entire industry. Proper competitive advantage has to be analyzed in such a manner that it will help VTB Bank in spreading their operations in other parts of the world by analyzing the threats and turning the threats into opportunities and weaknesses into strengths that will enhance their capacity to increase the sales in the entire market as well.
Lastly, the control issues has to be resolved in such a manner that it will provide the VTB Bank in resolving such issues and with the help of functional expertise it will help the respective company to conduct operations in various countries as well.
References
Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Beamish, P. W., & Lupton, N. C. (2016). Cooperative strategies in international business and management: Reflections on the past 50 years and future directions. Journal of World Business, 51(1), 163-175.
Bondarenko, V. D. (2014). Banking capital in Russia: Sufficiency, adequacy of market value evaluation. Mediterranean Journal of Social Sciences, 5(24), 432.
Brannen, M. Y., Piekkari, R., & Tietze, S. (2014). The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource management. Kogan Page Publishers.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
Fainshmidt, S., White, G. O., & Cangioni, C. (2014). Legal distance, cognitive distance, and conflict resolution in international business intellectual property disputes. Journal of International Management, 20(2), 188-200.
Gamble, J. E., & Thompson Jr, A. A. (2014). Essentials of strategic management. Irwin Mcgraw-Hill.
Knowles, M. S., Holton III, E. F., & Swanson, R. A. (2014). The adult learner: The definitive classic in adult education and human resource development. Routledge.
Nyberg, A. J., Moliterno, T. P., Hale Jr, D., & Lepak, D. P. (2014). Resource-based perspectives on unit-level human capital: A review and integration. Journal of Management, 40(1), 316-346.
Poulis, K., Poulis, E., & Plakoyiannaki, E. (2013). The role of context in case study selection: An international business perspective. International Business Review, 22(1), 304-314.
Sakas, D., Vlachos, D., & Nasiopoulos, D. (2014). Modelling strategic management for the development of competitive advantage, based on technology. Journal of Systems and Information Technology, 16(3), 187-209.
Snell, S. A., Morris, S., & Bohlander, G. W. (2015). Managing human resources. Nelson Education.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge.
VTB – World without barriers. (2017). Vtb.com.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download