Business Decision Making

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BUSINESS DECISION MAKING

Short evaluation of a major decision made in an organization in the banking industry (Maybank Malaysia) that has caused a strong impact on the organisation's performance including the decision making process, the models and the impact on the organisation's performance.

BY AHMADRAWI (MALAYSIA)

The writer can be contacted at :
scholars.assist@gmail.com

BY AHMADRAWI (MALAYSIA)

The writer can be contacted at :
scholars.assist@gmail.com

INTRODUCTION

Decision making is a critical process practised at management level. All organizations involved in decision making in order to survive in their business, to expand their business empire or to overcome problems that occurred in the business activities. The main purpose of an organization decision-making process is to achieve its organizational goals, either in the long or short run. Before making a right decision, the organization must also take into consideration all the possibilities as well as risks that may arise when such decision is made. Various aspects such as human resource, financial and legal aspects should be considered before any decision making is concluded. A failure to calculate any risks can derail the organization from its prime objectives. This paper will evaluatE on the decision making process, the models chosen as well as the impact on the performance of one of the most established financial institutions in Malaysia, Maybank.

DISCUSSION

In the Malaysian banking sector, Maybank is a prominent financial institution and stands as the Best Domestic Private Banking entity from Asiamoney Annual Private Banking Poll 2010 as well as winning the Euromoney Award for the Malaysia Best Private Banking Services Overall. Apart from that Maybank also received numerous awards and recognitions for its efficiency in customer affair and corporate relation. Maybank also have financial services subsidiaries created under its wings such as Aseambankers Malaysia Berhad, Mayban Trustees Bhd, Maybank Securities Sdn. Bhd, Maybank General Assurance Bhd, Maybank Islamic Berhad which make Maybank group as one of the most successful financial firms operating in Malaysia. Today, it operates more than 450 branches and more than 2,500 ATM machines nationwide. It was in mid 1980's when Maybank penetrated the international market by opening its branches in both Singapore and Indonesia. Since then, its expansion has reached Southeast Asian, Europe and other parts of the world.

A remarkable Maybank's tagline is that, “We focus on capturing growth opportunities in high growth while taking a proactive and conservative approach to capital management by continuing to establish our presence in high growth markets ” (Maybank, 2011). Obviously, decision making process is at the core of Maybank's business growth and expansion activities. One of the most significant decisions made by Maybank was the buying over of PT Bank Internasional Indonesia (BII) in year 2008. Sidhu (March 27, 2008) reported in the Star that the buying of BII has increased the Maybank's growth prospects in Indonesia. For Maybank itself, the decision making process can be traced back to the year 2004 when it decided to join the bid for PT Bank Permata as a way of business penetration into Indonesian's financial market. Though Maybank was unsuccessful in 2004 bid, the acquisition of BII in 2008 proves that Maybank is keen to share its financial expertise at international level.

BII is one of the largest bank in Indonesia and as of September 30, 2010, the bank is worth RM19.1 billion in customer deposits and RM25 billion in assets. It is listed in Bursa Efek Indonesia (Jakarta Stock Exchange) and operate an extensive Indonesia-wide financial network with 303 branch including five Islamic banking branch and 893 ATM machines.BII is also active in the SME, merchant banking and wealth management to high net worth individuals and organizations.It Also...
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