Selection of Strategic Options and Their Impact on Organizational Perspective Abc Bank Plc

Topics: Bank, Financial services, Private banking Pages: 9 (2634 words) Published: July 25, 2013
Selection of Strategic options and their impact on Organizational Perspective ABC Bank PLC

Table of Contents
2.1 Analysis of the external environment2
2.1.1 Political2
2.1.2 Environmental3
2.1.3 Socio cultural4
2.1.4 Technological4
2.1.5 Economic Factors5
2.1.6 Legal6
2.2 Analysis of the internal environment of ABC bank6
2.2.1 Strengths of ABC Bank7
2.2.2 Weaknesses of ABC Bank7
2.2.3 Opportunities of ABC Bank8
2.2. 4 Threats of ABC Bank8
3.Recommendations to be considered when setting Strategies in ABC bank 9
4 .Conclusion 10

1. Introduction
This paper explains the revolution experiencing in the banking industry in Sri Lanka in today’s context and how the ABC bank has led to a constant series of changes including attempting to adjust ABC bank’s internal organisation to suit the ever-changing external environment. This report thoroughly analyses the Sri Lankan banking Industry and included extracts from the research of competitive banks strategies into the process of strategic formulation and the translation of marketing and planning concepts to meet the needs of the both the corporate and retail consumers in Srilakan financial market.

There are 24 licensed commercial banks, 9 licensed specialised banks and 47 licensed financial companies targeting the same market segments and providing similar types of services. Most of the commercial banks in Sri Lanka are creating competitive strategies to lead the race in today’s financial market. There for to be successful in business these commercial banks need to periodically review and evaluate their strategic options in organisation’s point of view by way of periodic organising and operating structure to determine whether they have best positioned to take the advantage of market prospects.

This report addresses the major issues influencing the development of a competitive strategy for ABC bank and how the strategic formulation could be adopted in both the short run and long run. The report reveals the areas that ABC bank should be looked in to increase the profit margins and new niche market segments that the bank should aim to introduce innovative financial products. . The current Sri Lankan financial environment requires not only a more rapid adjustment to change but need at address the world economic trends as well. Therefore ABC bank should change the organisation norms and culture where managers act as agents of change. 2. Method

The revolution experienced in the Sri Lankan financial industry over the years has led to a stable series of challenges and changes with banks attempting to adjust their internal organisation to suit the changing nature of external environment. There for it is essential to analyse the external and internal elements which affect the ABS bank’s sustainability in the financial industry and draw the bank strategy in a manner to address both the internal and external environments.

2.1 Analysis of the external environment
The following macroeconomic PESTLE (Political, Economical, Sociological, Technological, Legal and Environmental) factors will out help the ABC bank to build a firm strategy to thrive their business in Sri Lanka.

2.1.1 Political
* Government regulations
* CBSL regulations
* Restrictions on foreign direct investments
* Exchange control regulations
* Budget recommendations

ABC bank has a major impact on its long term and short term strategies due to the prevailing political influence by the government. Earlier ABC bank was fully owned by few private stake holders where as now the government has appointed 2officials to the ABC banks board of directors. Therefore all the strategies adopted by the bank and future strategies/ business plans may be influenced by the top people in the bank due to initiating hidden...
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