We are MSc Global Supply Chain Management Students at Brunel University, updating the blog for the purpose of group discussions in Operations and Project Management (MG5579) module.
Thursday 17 January 2013
Question a.
A. Critically discuss the bank's operations strategy as a potential cause of the challenges they are facing?
In order to solve the problem of inefficient transaction services, the bank chose a new operation strategy to install new global system. However, without the proper evaluation of local transaction activities (for example: the proportion of local and global business are taken in local market) and sufficient training to its staff (how to take advantage of newest system to provide efficient services), the new system does not fit the reality, which causes more paper work and longer waiting time. These factors enhance the degree of customer dissatisfaction and in long run will lose more business both in local and global.
In sum, the overall direction of upgrading the information system is right except for the approach to operate it on the proper way.
As the global development, the business evolved and clients expanded, this bank was facing the Global-local dilemma. In the current operation, this bank was deployed a global system to adopt the global integration solution. However, the result was unsatisfactory due to the new system did not reflect the realities of local markets. The reason of failure is they did not understand the customer requirements from different region. Acquisition and strategy alliance will help the bank to gain the position in global market in operation stage.
According to the case given, it seems that the banks are upgrading its products and services slowly with less responds to the external environmental changes. Whether it’s local or global today information systems are the key factor where it creates developments in all sort of business activities. Gupta (1998) explains that developing technology has created an opportunity to access information very quickly to many firms which made financial markets to be more integrated by allowing scale, scope, volume and volatility of transactions to be grown. Apparently these developments have helped banks to reduce the operating costs while increasing the opportunity to differentiate themselves from the competitors.
There are few strategies that a bank may adapt to be competitive such as “Cost leadership” where they focuses on reduce cost through increasingly utilize the new technologies to be more efficient. “Service flexibility” which diversify service options available for their customers, “Service Quality” which refers to minimum mistakes or no mistakes and quick response to the services (Ex. providing Loans) and “Product and Service flexibility” which refers to availability of branches and services , customer relationships.
Although a bank may follow certain strategy, none can survive wholly following a one strategy. If a bank only focuses on cost leadership and adapt high end of technologies to achieve maximum efficiency it may lose the customer relationships with its local branch which is rather important for the growth of the business. Therefore it is important to understand and differentiate various strategies and adapt suitable strategic practices along with the changes of the external environment.
In order to solve the problem of inefficient transaction services, the bank chose a new operation strategy to install new global system. However, without the proper evaluation of local transaction activities (for example: the proportion of local and global business are taken in local market) and sufficient training to its staff (how to take advantage of newest system to provide efficient services), the new system does not fit the reality, which causes more paper work and longer waiting time. These factors enhance the degree of customer dissatisfaction and in long run will lose more business both in local and global.
ReplyDeleteIn sum, the overall direction of upgrading the information system is right except for the approach to operate it on the proper way.
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ReplyDeleteAs the global development, the business evolved and clients expanded, this bank was facing the Global-local dilemma. In the current operation, this bank was deployed a global system to adopt the global integration solution. However, the result was unsatisfactory due to the new system did not reflect the realities of local markets. The reason of failure is they did not understand the customer requirements from different region. Acquisition and strategy alliance will help the bank to gain the position in global market in operation stage.
ReplyDeleteAccording to the case given, it seems that the banks are upgrading its products and services slowly with less responds to the external environmental changes. Whether it’s local or global today information systems are the key factor where it creates developments in all sort of business activities. Gupta (1998) explains that developing technology has created an opportunity to access information very quickly to many firms which made financial markets to be more integrated by allowing scale, scope, volume and volatility of transactions to be grown. Apparently these developments have helped banks to reduce the operating costs while increasing the opportunity to differentiate themselves from the competitors.
ReplyDeleteThere are few strategies that a bank may adapt to be competitive such as
“Cost leadership” where they focuses on reduce cost through increasingly utilize the new technologies to be more efficient. “Service flexibility” which diversify service options available for their customers, “Service Quality” which refers to minimum mistakes or no mistakes and quick response to the services (Ex. providing Loans) and “Product and Service flexibility” which refers to availability of branches and services , customer relationships.
Although a bank may follow certain strategy, none can survive wholly following a one strategy. If a bank only focuses on cost leadership and adapt high end of technologies to achieve maximum efficiency it may lose the customer relationships with its local branch which is rather important for the growth of the business. Therefore it is important to understand and differentiate various strategies and adapt suitable strategic practices along with the changes of the external environment.