Entrepreneurial Opportunity - Savings and Credit Cooperative Society - Case Study Example

Entrepreneurial opportunity Student’s name Institution Entrepreneurial opportunity In the business world, an entrepreneurial opportunity can be defined as personal or group aspirations based on social and economic conditions believed to be favorable for the creation of a new product or service, either in an existing or new markets. In most cases, opportunities arise as a result of problems that exists within a business or an organization and needs to be solved (Santos, 2012). In the process of solving the problems, an entrepreneur opportunity can be identified, which can then be utilized to create a new product or service hence bringing value to the organization. This paper identifies the problems that the organization am working for faces towards service delivery and that need to be addressed so as to create an entrepreneurial opportunity. Also, a value proposition based on the 6-stage thinking framework will be developed. Overview of the company My company is a financial institution that deals with offering retail banking products such as savings, deposits, and loans to customers. The company began its operations in 1993 as a Savings and Credit Cooperative Society (SACCO) and was later changed to a commercial bank. It is one of the progressive banks within the region and has several branches located in various regions across the country. It offers a full range of various products in banking, investing, asset management, insurance as well as other risk and financial management products and services. It is highly rated for its convenience and customer experience and caters for the financial needs of all individual and business customers. Our vision is based on a global leader in banking and enable our customers to realize their dreams and aspirations. The company’s mission is to provide innovative financial products to customer so as to enable their progress and transform their lives. Its core values are integrity, teamwork, excellence, innovation and sound governance (Renko, Shrader& Simon, 2012). Problem statement In the banking and financial services industry, competition is one the increase and this continues to be the major problem that faces our company. In the market, new banks, SACCOs and micro-finance institutions are being approved and this means that competition for customers increase. To ensure that we do not lose customers to competitors, it is necessary to come up with new products and specifications that will enable customers to solve their financial problems, hence transforming their lives. Customer needs are changing and they are more focused convenience and customer service (Harvey, 2016). The company needs to customize their products so as to increase their effectiveness and convenience. For example, mobile banking is one of the current trends in banking and helps improve convenience as one can access his or account while still at home. Customers continue to complain of long queues and congested banks, a problem that can be solved through connecting all customers on mobile banking so as to help minimize congestion in the banking halls. Also, this will help create new opportunities as the company will receive interests from customers who transact on their accounts using mobile banking. Connecting customers on mobile banking will also help attract new customers hence increasing revenues and customer numbers (Harvey, 2016). Another challenge that faces the bank is the issue of consumer expectations which are changing and this puts a lot of pressure on banks and other financial institutions as most of them are not delivering the level of services that customers demand, especially at a time when technological advancements are on the increase (Santos, 2012). This may be termed as a challenge or problem to the bank, but it can still be identified and solved so as to create a new entrepreneurial opportunity. For instance, electronic banking is one of the best solutions to this as customers can be connected to internet banking where they can access their accounts and other financial products via the internet using their mobile phones, laptops and desktops while still at the comfort of their homes (Harvey, 2016).Another problem that faces the bank today is the issue of cyber security whereby the introduction of technology in banking, for instance mobile banking and ATM cards has led to susceptibility to what is termed as money laundering. Money laundering may occur in the form of card skimming, electronic money transfer etc. Our bank can should be always careful and should have the necessary procedures and regulations such as anti-money laundering regulations aimed at minimizing the number of cases of money laundering. Also, KYC (know you customer) policies should be highly enhanced so as to help identify unlawful business practices and help combat money laundering in the bank (Harvey, 2016). Solution proposed based on the 6-stage thinking framework Value proposition can be defined as a promise or benefit that need to be delivered to the customer. Customers usually attach value to products and services being delivered and it is the responsibility of the company to ensure that the best value is delivered to the customer. Value proposition can apply to the whole of the organization or part of it as well as to customer accounts and products as well (Ormrod, 2010). The 6-stage thinking framework is a framework that was developed in by psychologist Lawrence Kohlberg whereby he proposed the structure and development of moral reasoning and thinking comprises of a sequence of six stages which are grouped into three levels: pre-conventional, conventional as well as post-conventional. The framework is described as follows: Stage 1: Avoidance of punishment The nature of moral thinking in this step is that people make decisions that favor them, without regarding the needs and feelings of others. Rules set by powerful individuals are obeyed while those which one may not likely be caught are disobeyed (Santos, 2012). Stage 2: Exchange of favors This stage asserts that people only recognize that other people still have needs only after their own needs have been met. Stage3: Good girl/boy In this stage, people make decisions on the basis of what actions please others especially on individuals with high status in the society such as teachers among others. People are more concerned on creating and maintaining relationships through trust, being loyal as well as sharing and that other people’s perspectives should be taken into consideration when making decisions (Ormrod, 2010). Stage 4: Law and Order People look upon the society so as to be guided on what is right or wrong. They are aware that rules are very crucial for keeping the society up and running and that it is their duty to obey the rules. However, they also perceive that since the needs of the society change, the rules should as well change so as to be ensure consistency with the changing needs (Ormrod, 2010). Stage 5: Social contract People value the power of rules as they represent agreements among individuals on appropriate behaviors. Rules are perceived as mechanisms that can help protect the rights of people as well as maintain the general social order in the society. Also, people recognize the fact that rules are flexible and can change at any time as they no longer serve the best interests of the society (Ormrod, 2010). Stage 6: Universal ethical principle This is last stage of logical thinking and one which many may people do not reach it. In this stage, people only adhere to a few universal principles such as equality, respect for human dignity, and justice (Ormrod, 2010). Mini Case: Solution proposed to the problems identified As indicated above, there are 6 major stages of moral and ethical reasoning and thinking as identified by psychologist Lawrence Kohlberg. From the problem statement, this model can be used to propose a solution to the problems identified and ensure maximum value proposition (Renko, Shrader& Simon, 2012). In stage 1, people make decisions that favor them, so the first thing that our company should do is to ensure that members of staff are well compensated and have competitive benefits, and in so doing, they will offer excellent customer service to customers and help retain them. In stage 2, reasoning is based on satisfying the needs of others. For example, a member of staff will work towards meeting the needs of co-workers as well as the needs of customers (Harvey, 2016). In stage 3, People are more concerned on creating and maintaining relationships through trust, being loyal as well as sharing and that other people’s perspectives should be taken into consideration when making decisions. For example, customers want effectiveness and convenience and it is the responsibility of the company to ensure that majority are connected on mobile banking and taught on how to operate it so as to protect them from inconveniences of over-crowding in the bank. Stage 4 is all about ethics, and there are rules in the society as well as regulations by governing bodies that should form the basis of ethical decision making. For instance, account details for customers should always be kept confidential (Harvey, 2016). In stage 5, decision makers or the top board should try to alter and modify certain rules that govern operations, as some of them are too primitive. However, this should be done carefully so as to ensure that everything complies with internal rule and regulations. In the last stage, people only adhere to a few universal principles such as equality, respect for human dignity, and justice. The company should ensure that the customer is treated with the respect they deserve so as to help improve their loyalty to the bank. References Harvey, D. (2016). Digital transformation in banks: The trials, opportunities and a guide to what is important. Journal of Digital Banking, 1(2), 136-145. Ormrod, T.M, (2010). Kohlberg's Three Levels and Six Stages of Moral Reasoning. Available from http://www.education.com/reference/article/kohlbergs-moral-reasoning/ Renko, M., Shrader, R. C., & Simon, M. (2012). Perception of entrepreneurial opportunity: a general framework. Management Decision, 50(7), 1233-1251. Santos, F. M. (2012). A positive theory of social entrepreneurship. Journal of business ethics, 111(3), 335-351. Read More