Question

2). a). You have been recently appointed as a CEO of a distressed Bankand you are to produce a 5-Year Strategic Plan to position the Bank as a market leader. Discuss the process of producing a strategic plan for the Bank for next 5 years as a sustainable Bank Leader.
The following are your KPIs from your Board of Directors:
Return on Equity (ROE) of more than 25%
Market share of Assets & Deposits of more than 12% (Current market leader is 12.1%)
Cost income ratio of 50%
Credit loss ratio of <2%
Outline your vision, shared values, environmental and SWOT Analysis, strategic issues, strategic objectives and clear action plans that will position Bank as sustainable market leader by 2023 .

Answer 1

Vision: To be a dominant player in banking and other financial services in country.

Values: The success of the company will be found in integrity, customer service, ethical values and compliance.

Strategic objective: ROE Should be targeted more then 28%, Market share of assets and deposits of more then 15%,Credit Ratio of 1% or even less.

Goal: Becoming market leader by 2023

SWOT Analysis:

Strength: Internal Talent,

Weakness: lack of confidence since we have very less market share.

Opportunity: filling the service gap where competitors have failed.

Threats: customer base of competitors. Learning from competitors.

Action Plan:

1. The company basically need to motivate their staff first. Since the market share of company is very low, the staff might have been demotivated, hence a fresh start is required. Hence some motivation training is required
2. The staff should me made well aware of the environment of industry and comparison with peer group, it can be done through circulating the data via emails or conferences.
3. Staff should be given well training in regards of work and should be well versed with technology.
4. For a new start, it is very necessary to provide proper service to customers and retain the old customers.
5. Later to increase the business, various contests can be lunched at branch level and national level, which will help to drive more and more business.
6. Proper incentivising and appreciation is also necessary. Hence the employee should be recognised for his great work. Some welfare activities should also be taken for staff.