Answer to Question #230935 in Management for Cody

Question

Explain the strategic management process that Standard Bank needs to follow to remain 

competitive and to gain more market share?

Answer 1

a) Strategic management entails the continuous planning, monitoring, analysis, and evaluation of all requirements that a business must meet in order to achieve its goals and objectives. Changes in the business climate will need firms to reevaluate their success methods on a regular basis. The strategic management process assists businesses in assessing their current condition, developing plans, implementing them, and evaluating the effectiveness of their management methods. Strategic management strategies are divided into five categories, each of which can be implemented differently depending on the circumstances. On-premise and mobile platforms both benefit from strategic management. So, how does a bank go about achieving such goals? Budget cuts that are applied uniformly are doomed to fail. These savings are usually more than necessary in places that are already productive, and they are insufficient in the most inefficient areas. The most effective efficiency programs take a more analytical approach that takes into account the unique circumstances that each line of business and support function faces. The six critical areas on which today's industry leaders are concentrating their efforts are listed below.

1) Reorganization of the business. Business realignment is based on the idea of exiting low-margin business lines and moving into areas that are naturally more cost-effective and boost bank profitability. Leading banks have a disciplined approach to strategic planning, determining the minimal resource commitment required to compete in a given line of business and discovering chances to set themselves apart from competitors.

2) Optimization of the channel. The purpose of channel optimization is to evaluate the many ways in which clients engage with a bank in order to come up with a cost-effective combination that is tailored to each bank's unique customer base. Given the frequently changing nature of client channel preferences, this optimization process necessitates banks closing, consolidating, selling, and buying branches quite aggressively as they change their geographic presence. 

3) The price of the procedure. The possibility to reduce process costs is sometimes overlooked in banks, in part because it necessitates a more manufacturing-oriented approach to business processes. The purpose is to increase the bank's efficiency ratio by lowering the unit cost-to-value ratio of each activity or transaction, such as opening an account, preparing a loan document package, or managing a certain type of transaction. 

4) Employee productivity. Automation solutions can help boost staff efficiency in addition to lowering process costs, allowing banks to manage more transactions and higher levels of activity with the same number of employees. 

5) Automation and technology. The overall objective is threefold: a) have self-service applications that allow customers to make transactions or obtain information without requiring employee effort; b) use technology to reduce the time employees spend looking for information; and c) use automated business rules and decision models to move work through processes more quickly and efficiently.

6) Relationships with vendors.

7) Creating a culture that prioritizes efficiency