Strategic management of banking industry

1. Presented by:
Mujtaba Taj
Strategic Management

2. Strategic Groups
It is the cluster of firms in industry with similar competitive
approaches and market positions.
We need to identify industry, firm and characteristics and this can
be done by
Strategic group mapping.
Firms in same strategic group have two or more characteristics in
common. For example number of product offered, distribution
channel and profit rate, degree of services offered, deposit, number
of employees and branches.

3. Strategic Groups
Characteristics for strategic group are total deposit, number of branches,
number of employees and number of ATMs all over Pakistan.
FAYSAL BANK
BANK ALFALAH LIMITED
SONERI BANK
ASKARI BANK
STANDARD CHARTERED
BANK OF PUNJAB

4. Market Segmentation of MCB Bank
 Retail banking (Current & savings accounts, mortgages, personal
loans, credit cards)
 Wholesale banking (Solution provided by the merchant banks to
the large scale business organizations and the government
agencies or institutions…)
 Wealth Management (financial planning and specialized financial
services, including personal retail banking services, estate
planning, legal and tax advice, and
investment management services. The goal of wealth
management is to sustain and grow long-term wealth)

5. Strategic Customer
Strategic customer of MCB Bank are ….
CSD
Lucky Cement
Dalda foods
Pepsi
NFL
Engro foods
PSO etc.

6. Critical Success Factor
 Free cash deposit anywhere and sweep
account facility to corporate clients.
 Smart business account (SBA account)
 Cyber security ( not hacked even a single
time )

7. Threshold Capabilities
 Current Account
 Saving Account
 Term Deposit Account
 Auto Leasing

8. Unique Resources
 Smart business account(SBA) by
maintaining 5000 balance to avail free
deposit,withdrawl,banker cheques and
cheque book.
 Cyber security

9. Core Competencies
 Succession Planning
 Recruitment Methodology
 Customer centricity
 Innovation

10. Competitive Advantages
 Service Quality
 Cyber Security
 Timely remittances

11. Value Chain
Primary activities
The primary value chain activities of MCB BANK Limited
are directly involved in producing and selling the product
to targeted customers.
Secondary activities: It include Procurement,
Human Resource management, Technological
Development and Infrastructure .

12. Value Chain
Bank Infrastructure
Risk Management
Technological Development
Human Resources
Inbound Logistics
Fund raising
Operations
The products or
services offered
w.r.t target
markets
Marketing
Method of
distribution,adversting
and target market
Associated
services to the
product and after
sales

13. SWOT of MCB Bank
Strengths
 Professional, dedicated and well- trained
manpower.
 Efficiency is maintained at the highest level
 Latest technology to carry out their banking
activities

14. Weakness
 The employee turnover appears to be
on higher side.
 Although highly networked, the number
of branches is limited.
 Stringent policies in terms of recovering
the debts and loans, and credit
payments

15. Opportunities
 To face stiff competition, MCB can innovate
new products and services and achieve high
customer satisfaction.
 With full computerization, they can offer cost-
effective services like ATMs, Electronic Fund
Transfer, etc.
 Rural Financing and loan to smaller
enterprises could increase the market share

16. Threats
 Ever changing SBP policies
 Customer dissatisfaction
 Highly competitive environment

17. Elements of Organizational Culture
Symbols:
It is the logo or signature or the style statement of a
company.
Rituals :
 These are precise practices an organization follows as
a habit.
 Celebrations, performances, and activities that foster
and reinforce teamwork and a sense of inclusion.
 These can include annual parties, sales meetings,
organizational retreats, or any other group activities

18. Beliefs
We take personal responsibility for our role as
leaders in the pursuit of excellence. We are a
performance driven, result oriented organization
where merit is the only criterion for reward.

19. Values
The idea over which the company is based
OR
The thought of the firm is considered as its value.
Example organization mission statement.

20. MCB banking Paradigm
Reinvent the
Customer Bank
Experience
Re-architect the
Core Banking
Infrastructure

21. Focus on the customer
The Customer Bank Experience
Customer
• The customer chooses the
channel
Empower the
• Do we still need an RM?
Engage the
customer
• Deliver relevant services
• Present an optimal user
experience

22. ANY QUESTION?

23. THANKS