Strategic Management and Anglo Irish Bank

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Contents:

1. Assessment of External environment........................................... 02 PESTEL Analysis
Porter’s Five Forces
2. Review of Existing Plan.................................................................. 03 Competences and Resources
3. Strategic Options............................................................................. 03 Stakeholder Analysis
Governance Chain
Corporate Responsibility
4. Development of Strategic Plan....................................................... 06 Nature of Purpose
5. Examination of Core Values.......................................................... 07 Mission and Objectives
6. Development and Implication of Plan........................................... 08 Implication of strategic Plan
Strategic Control
7. References------------------------------------------------------------------- 09 8. Bibliography.................................................................................... 10

Anglo Irish Bank’s Environment:
PESTEL Analysis:
Political and legal factors are running side by side as most of elements are common. Anglo Irish Bank is an authorized and licensed by Irish Financial Services Regulatory Authority under the Central Bank Act 1971. Like any other organization within a country it has to follow all the rules and regulation set out by the Irish government. After it’s nationalization in early 2009, there was a large influence of government on its strategy but it did not last longer as it has been bailout by the EU and now for sure the EU will sketch out new rules for Anglo Irish Bank (AIBC). The economic activity is closely related to the strategy of bank. Economic activity such as interest rate, exchange rate, wage rate, and rate of inflation play a big role towards the success of business. The economy of Republic of Ireland does not allow the AIBC to take more risk. Stretching the period of high liquidity and low risk premium and inflation rate in Ireland were relative to the run of AIBC crisis. Anglo Irish Bank serves the community as being a member of Businesses in the Community (BITC) which ensures involvement of companies in different initiatives for the betterment of the society. Moreover, AIBC also support different charities, college and universities and it is also working for a programme named ‘leaving poverty through learning’. AIBC has an Energy Policy and it has appointed an Energy Manager with responsibility for promoting and managing the importance of practising energy efficiency to minimise costs and impact on the environment. Porter’s Five Forces:

In a major study, Porter (1990) while commenting about business competitiveness points to five forces to assess the attractiveness of business which is new entrants, buyers and suppliers bargaining power, substitutes, and rivalry among business.

The nationalized AIBC is providing services of business and commercial banking, wealth management and treasury division in countries like Ireland, Austria, Switzerland, UK, and USA. Its brand name reduces the chances of new entrants in industry which may affect its market value except the fear in internet banking, because of its low cost. Bank rivalry is an important factor especially when the AIBC is in crisis. Non-availability of any legal alternative reduces the fear of Substitute products for Bank industry, Banks supplier and buyers are actually same and interest rate may be the only aspect of bank profitability they are the bargaining power.

Review of Existing Plan:

The Financial Institution Group (FIG), operating the Debt Investor Relation programme for Anglo Irish Bank, has relationship with 350 valued international counterparts. FIG can promote the Anglo Irish Bank name and its credit banking business worldwide. The existing debt investors and seeking of potentially more new investors would certainly help the bank to boom again and achieve its targets. Yet another resource is the remaining...
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