Metro Bank - Purposes, Meeting the Goals of Stakeholders, Responsibilities, and Strategies - Example

Business Environment ID number: Assignment : Table of Contents Task 1 3 1.1. Organisational Purposes of Business 3 1.1.1. Purpose of Metro Bank as an Organisation 3 1.1.2. Extent to Which Metro Bank Meets the Objectives of Different Stakeholders 4 1.1.3. Responsibilities of Metro Bank and Strategies Employed 9 Task 2 11 2.1 UK Economy and Nature of Business 11 2.2. Nature of the National Environment and Resource Allocation 12 2.2.1. Allocation of Resources 12 2.2.2. Fiscal and Monitory Policy in UK 14 2.2.3. Competition Policy 16 3. Summary 18 References 19 Task 1 1.1. Organisational Purposes of Business The organisational purpose of business is defined as the goals and objective of business. The purpose of an organisation differs in accordance to itstype. Additionally, the purpose also related with the aspect to which the organisation iscapable of meeting the demand of concerned stakeholders. In addition to this, the purpose of organisation also defines the responsibilities associated with an organisation as well as the probable strategies that are likely to be applied by the business (Lynch, 2007). The paper intends toanalyses the case of Metro Bank with respect the UK business environment. 1.1.1. Purpose of Metro Bank as an Organisation In the context of the resolution in the British banking sector, the establishment of Metro Bank in the UK economy has proved to bring significant changes and development in the banking as well as financial sectors. The UK’s new bank claims to adoptnew creative strategies that likely to fulfil the changing demands of the customers. It can be further analysed from the provided case study that Metro Bank is one of the highest street banks in the UK and thus expected to face increasing level of challenges in the concerned sector. The prior reason for facing the challenges is that Metro Bank follows the American style marketing in the UK that may not be sufficient to win the perception of British account holders.The Metro Bank has been originated from the concept of commerce banking in the US. Vernon Hill the founder of Metro Bank, aims at providing the best banking service and increase the financial inclusion in the economy (Metro Bank, 2014). Moreover, the concerned bank also emphasis over satisfying itscustomers by providing them best services. On the other hand, it alsoaims at investing in the concerned customers experiences that are likely to be beneficial as well as enables the banking sector to perform superior over its rival competitors. This in turn is also expected to be beneficial with respect to gaining the high share in overall market. Correspondingly, the main purpose of Metro Bank as an organisation focuses over providing enhanced service to its customers. In addition to this, the organisation also aims at providing convenient services to its customers with respect to applying and enhancing the concept of commercial banking in the economy.Besides, in order to fulfil the needs of customers, the concerned banking sector is opened for long hours and seven days a week. In addition to this, Metro Bank is also involved in providing unique financial services to the customers concerning theneeds of business.Metro Bank is based on retail business, which mainly focusesover the customers. It also aims at minimising the effects of rules associated with the traditional banking systemby offeringsimple as well as convenient services to the customers and therebyraise the expectations of the concerned customers. Therefore, in the context of Metro Bankbusiness, the main purpose of the bank is towards providingbetter services as well as connivance to satisfy the customers (Metro Bank, 2014). 1.1.2. Extent to Which Metro Bank Meets the Objectives of Different Stakeholders Fig: 1. Stakeholders of the Company Source: (Spirit of Enterprise, 2013) Fig: 2. Stakeholder Analysis Source: (T Morphy, 2015) Stakeholders are the members associated with the organisation and their absence as well as presence both is likely to have impact on the overall business activities. The stakeholders of an organisation are classified into two categories including both internal as well as external. Stakeholders play a vital role as well as interest in the organisation. Besides, employees, owners and higher authorities are internal shareholder. On the other hand, customer, suppliers, government, shareholders and society at large are external stakeholder to the organisation. The increase in competition in the banking sector has enabled Metro Bank to provide unique as well as enhanced services to its customers to earn superior competitive advantage in the market. It can be analysed from the aforesaid discussion that the main aim of the concerned bank is to provide better services to its customers through satisfyingtheir needs. In this regard, it is essential for Metro Bank to fulfil the needs of all the concerned stakeholders to maintain growth and success in the long run.From the providedcase study, gives a clear understanding that the customers are major concern for the banking sector. In this context, it can be further analysed form the provided case study that Metro Bank emphasis over providingadditional services to its customers to satisfy their increasing needs. Furthermore, it has beenevaluated that the customers also providednew alternative service to the customers for instance providing credit card within a short span of 15 minutes. Besides, with the advancement in technology the customers are likely to demand service at a faster rate. From the case study, it has beenanalysed that HSBC one of the competitors of Metro Bank, provides credit cardfacility to the customers in 60 minutes. Therefore, in this context it is likely that the customers would be more willing to take the service of Metro Bank. The customers are the major priority for the Metro Bank, thus the banking services are been designed in accordance to theirneed and requirements. Metro Bank recruits dedicated as well as efficient managers for handling its customerin efficient manner. Moreover, manages also emphasis over understand the needs and requirements of existing as well as potential customers. However, implementation of digital technology in the banking sector has enabled the recording of the customer’sinformation in form of computer screen credit rating. In this regard, it can be further analysed from the case study that Metro Bank facilitates the development of relation between bank and customers with highly efficient managers as an intermediaries. Analysis of provided case study also reveals that introduction of internet banking system has been widely accepted by the customers as well as other stakeholders. This in turn has raised the importance hiring the IT services with the aim of serving the customers in a better manner. It can be further analysed from the case study that OFT estimates that investment in the IT department involves almost two third of the start-up cost involved in the banking sector. Therefore, it can be evaluated from this fact that Metro Bank investment in the concerned department is likely to influence the expected return of the customers on the overall banking investments. In order to solve the issue concerning to create IT barriers, Metro Bank has outsourced the service to Temenos for highly emphasising on other core activities. Additionally, the concerned bank has rents IT department system that is likely to be beneficial in minimising the overall cost incurred as well as effective in reducing the risks involved in the business. Partnership with Temenos also likely to be beneficial for both bank as well as IT service provider through working in more coordinated manner. Moreover, this in turn enables Metro Bank to provide more updated services to its customers. However, Metro Bank also claims the fact that the UK banking sector requires significant changes for this reason the government authority should realise the need of simple saving and loans business that isdifferent from casino activities. Metro Bank values the experience of the employees working in theorganisation, asemployees as well as well as customer’sexperiences at the banking sector are proved most valuable source for providingenhanced and quick services. The employee of the concerned bank is been selected on the basis of certain criteria, so that they are able to solve the issues faced by the customers effectively. Additionally, the employees of Metro Bank are provided better working conditions as well as further innovative technique areimplemented to enhance the quality of work. The employees of bank are also provided regular training on the basis of the recognition of customers’ needs and demand to enhance theirskills with respect to core banking activities. Moreover, new employees of Metro Bank are provided with intensive inductive training programme that has been developed with the aim of incorporating superior working culture and enhance their level ofcompetency skills. It has been further evaluated that quality assurance in the banks is also associated with compensation as well as recognition over the existing employees. To maintain loyalty among the employees, Metro bank tends to offers better compensation package to its employees. The employees Metro Bank arealso provided with incentive bonuses over theoverall profit. In addition to this, “customer-centric model” has also been developed in accordance to the core banking system (Temenos Headquarters SA, 2011). This in turn enabled the customers to view all the details andproved to be helpful for the employees in order todeal with the customer’s issues. Furthermore, the system also facilitates the storage of data and information with respect to the existing customers that in turn has reduces the work pressure in terms of searching required customer information during the time of requirement. Notably, it has alsobeen analysed from the casestudy that Metro Bank not only emphasis over meetingthe perception of customers, but also fulfil the changing requirements of the existing customers. Nevertheless, services provided by Metro Bank are completely based on the needs of customers and it is likely that it would act as an important channel for providingadvanced banking services to the customers in the near future (Temenos Headquarters SA, 2011). 1.1.3. Responsibilities of Metro Bank and Strategies Employed Metro Bank aims over providing enhanced service to its customers on the basis of theirneeds and requirements. Additionally, bank also provides various ranges of products that are simple and easy to understand by the concerned customers. Metro Bank services are available 362 days a year and employees highly engaged with the responsibility ofresolving the issues of the customers with respect to thebanking products and services. In the context of corporate governance, bank believes in fulfilling the responsibility with respect to everyone belonging to the industry. Metro Bank also tends towards maintainingproper work culture that islikely to have positive impact on the customers. The set oflaws and regulations are maintained accordingly as well as responsibility of the members has been allocated with respect to theirpositions. Moreover, the members of the bank are responsible to provide quality service to its customers (Metrobank, 2012). It can be further analysed from the case study that Metro Bank appointedlocal managerswho will be responsible to directly interacting with the customers to resolve issues that they likely to face. This in turn also enables the mangers to take feedback from the customersand therebyproviding them appropriate products and services. Theemployees of Metro Bank always ensure that the services are providedto customers based on their convenience to improve theiroverall level of satisfaction. The banking industry in the UK is based on oligopoly market that in turn defines interdependence of other firms, banks as well as customers. The event of financial crisis has resulted to reduce the trust of the customers on banking sector that in turn led Metro Bank implementation of new strategies based on the customer requirements. Apparently, one of the most effective strategies that wereimplemented by Metro Bank was to deliver on the spot credit cards for the customers to ensure fast service. Additionally, implementation of internet banking facilities has been another strategy applied by Metro Banking in order to provide improved services to theircustomers. The bank engaged in simple loan and saving business as compared to other banks that is likely enables banks to provide immediate services to theircustomers. It has been further evaluated from the case study that barrier to entry is very strong in the UK banking sector, despite Metro Banks is likely to face competition from other banks. The strategies being adopted by other banks are to be analysed to identify the weakness of the concerned organisation with respect to fulfilling the responsibilities towards the customers as well as the employees. The development of advanced processes and system in the banking sector is keyrisk for the growth and development of Metro Bank in long run. This in turn has also ledto changes in the customers’requirement of products and services. Therefore, application of IT service and software by the bank are likely to beneficial to fulfil the responsibility of providing superior quality services to the customers. In addition to this, the strategic of Metro Bank are also likely to be satisfying the customers by implementing the strategy of new product or service launch. The adoption of digital technology strategy by the bank is also beneficial to fulfil the responsibility towards the customers as it ensures quick reviewingcustomer data and information (Temenos Headquarters SA, 2011). In addition, the employees of the organisation are also provided sound work environment that in turn ensures them to providequality service to the customers. The application of information technology is likely to be beneficial to employees as itensures recording ofrelevant data and information regarding the customers and further assistedinfulfilling their respective responsibilities. Task 2 2.1 UK Economy and Nature of Business The economic system of UK has evolved through various phases and has emerged to be a new set of economic advantages for meeting the complex needs of changes that are evidenced within the economy at present. The UK economy system that is prevalent within the nation is identified to be influencedboth the progressive development and the greater level of changes within the social domain. However, chances of flexibility are identified to be low within the social system and are noted to help in developing the overall effectiveness of the financial system that is prevalent within the country. The nature of business within the economy is greatly influenced by the existing economic system and flexibility imposed within the economy. To meet with the diverse needs of the management of the economic system prevailing within the country, UK government has taken certain punitive measures to develop the transparency and increase the effectiveness of the policies that are associated with business progression (Schneider & Enste, 2000). Thus, to ensure a successful and strategic integration of business operations within the national boundary the nations has imposed certain techniques as well as attributes that help in developing the effectiveness of the system. This will further help in developing the overall credibility associated with the economic progression and enhance the effectiveness that isassociated with the progressive integration of business management. The UK government system has imposed certain policies and competitive domain that help to encourage the business entities as well as have created certain amount of blockages within the business operations (Shmelev, 2010). The following sections will provide a detailed elaboration over the economic system that is prevailing within the nation. With a detailed elaboration on the diverse strategies adopted by the economy to develop overall system that is associated with conducting business within the nation this paper intends to explain the existing system that focuses towards developing regulatory mechanism for the banks. 2.2. Nature of the National Environment and Resource Allocation 2.2.1. Allocation of Resources The traditional economic system in which the economy is based on the social customs associated with the particular economy. On the others hand, market economy depends on the buying behaviour of the customers as well as the government policies. In case of mixed economy the both the government as well as individual business works together for the overall growth of the economy. In this context, the UK economy is a socialist economy and is moving towards capitalism. This in turn signifies the fact that the economy is increasingly involved in spending more in the industrial sectors. The economic system provides free flow of trade and commerce within the national boundary and enhances the transparency level associated with the needs of progression within the business. These types of economic system are noted to be having a diverse impact on the social system (Duguid, 2005). With the limited level of government involvement companies gets wider scope of operation and develops the diverse attribute of performances. Furthermore, as the economic system follows a free flow of operations as well as resources that in turn help in developing the competences and maintaining an effective system of progression. In addition, minimal level of government interventions provides the different entities associated with the operations of business with chance to decide the own peripherals and develop the business (Broadbent & et. al., 2012). This approach of free trade options even enables the organisations providing services within the current business with enormous flow of resources in the economy. Identifiably, this strategic gesture also helps the entities to develop the business within the complex global scenario enabling the business entities to operate in a very effective manner. To meet with the needs of the diverse business domain organisations are noted to be operating in a very sustainable manner for ensuring projected growth and development. The economic system being centrally planned and the business operations are noted to be operating with a huge amount of deviations and are controlled by the economic system (Broadbent &et. al., 2012). This is even noted that organisations that are operating within a centrally planned economic system are noted to be having a huge impact on overall global system and is identified to be effectively meeting with the needs of resources allocation. The resources allocated within an organisation are largely controlled by effective management. The effective management of the different resources are identified to be enhancing the effectiveness that is associated with the system and helps in developing the overall management associated with the same. Allocation of resources that is identifiable amid in the system was broadly identified to have distributed among the business operations that are being undertaken within the nations (Broadbent & et. al., 2012). This successfully helps in developing the overall attributes that is associated with the system and helps in enhancing the status of the entities. Rather this strategic integration even helps in developing the overall system and enhances the effectiveness to meet with the complex and changing needs. Moreover, equal distribution of resources amid the sectors helps in developing the overall attributes and increases the effectiveness of the organisations by distributing the instances of risk associated with business. This prevents from having a huge impact on one social constraint or on a single economic region (Broadbent &et. al., 2012). The economicprogression could even be identified to provideastrategic edge within the social system and help in developing the overall effectiveness increasing the efficiency that is associated with the system. The economic development that is identifiable could be noted to assist in developing the diverse system and enhancing the ability of organisations to meet with the needs of the system (Broadbent &et. al., 2012). 2.2.2. Fiscal and Monitory Policy in UK The UK fiscal and monitory policies have been identified to be having certain amount of loopholes in the initial phases. This strategic development of the system was identified to be having a huge amount of impact on the social constraints and was noted to be imposing a huge amount of imposition on the banks. This was even identified that the overall system creating an enormous amount of stress on the social domain and is noted to be increasing a greater amount of impact on the economic development of the nation (King, 1994). Fiscal policies are designed are designed by the government in order to reduce the negative implication in the economy including the effects of inflation. Moreover, the fiscal policy considerable assist the government to raise the aggregate demand with making necessary changes in the tax rate and other spending. Correspondingly, with the notion to reduce the rate of inflation to a sustainable rate the UK government largely induced a greater amount of dependency over the banks and increased the effectiveness of the economic system to meet the needs of reducing the rate of inflation. This relaxed state of operations made the system vulnerable and opened up the situations to a larger amount of risk of insurrection in the economy (Bank for International Settlements, 2012). On the other hand, the monetary policies are designed in order to control the overall monetary supply in the economy by the necessary monitory authority of the nation. Moreover, such policies are been taken to reduce the negative impact of inflation, stabilising the price fluctuation and controlling the supply of money. This strategic integration of the monitory policy within the UK was identified to be having a larger amount of influence on the existing system of operations. However, post the LIBOR scandal situation prevailing within the economic system were identified to be having a greater amount of impact on overall social development and make it vulnerable for the system. With the effective integration of the diverse relationship and the vulnerability that were persistent within the economic system led to create huge amount of impact on the social development (Bank for International Settlements, 2012). This could be identifiable from the scenario that the existing oligopoly system of the banks needed to be altered into monopoly structures. The Metro Bank is even going to generate the diverse strategic progression and increase the effectiveness of the system (Bank for International Settlements, 2012). Correspondingly, with effective need of management and strategic integration of the system the bank has been integrating the needs of projection and increasing effectiveness with the diverse management of progression. The enhancement of different approaches it could be identified that overall management of banks are identified to be creating its competitive advantage through the elegant maintenance of needs and effective integration of advanced technologies that would act as an effective domain for maintaining the complexities perceiving in social system (Bank for International Settlements, 2012). Identifiably, different sustainable development within the information technology banks are integrating the same to meet with needs of progression that is identified to be increase the effectiveness of the system and enhancing overall operational needs associated. This strategic integration could be noted to assist in developing the overall standard of banks and are strategically enhance effective facility for meeting the complexities needs of services within the current operational domain (Bank for International Settlements, 2012). This could be strategically identified to have a huge impact on the social domain with the integration of IT supports for meeting the needs of social development and identifying to provide diverse edge of competitive advantage. This strategic integration has also been noted to be creating an adversity within the system and ideveloping the overall attributes that is identifiable within the complex domain (Bank for International Settlements, 2012). Metro Bank has been identified to be operating within the complex global scenario for maintaining the effective domain and has been successfully integrating the technical development for meeting with the needs of management of the social system. 2.2.3. Competition Policy It has been identified that the banks has been facing severe amount of competition within the dynamic global environment and need to meet the needs of managing the changing needs of consumers. The increase in competition in the business sectors is likely to increase pressure in terms of sale and profitability. Therefore, the competition policy is formulated by the government of particular nation with the aim of minimising the pressure on business. Additionally, the prior reason behind introduction of competition policy is to eradicate negative impact of competition and boost the efficient functioning of market. With the integration of diverse and complex business domain, banks need to increase the acceptance and enhance the prominence within the global edge. This integration within the social system has been identified to be changing banking effectiveness and have been increases the challenges for banks to meet with the complex business needs (Bank for International Settlements, 2012). The banks have been developing their competitive edge within the global domain and within the competitive UK market by successful incorporation of diverse integration of information technology to maintaining the advancement and dynamic needs of the consumers. Moreover, banks also successfully integrating the diverse technical advancement in order to develop the overall credibility of services and meeting the changing needs of the consumers. Strategically, this complex needs are noted to assist in developing the attributes that are associated with the system and developing the overall needs of service providence (Tyler, 2015). The UK government has induced stricter policies in the banking sector for raising the effectiveness of the system and increased a greater sense of regulation for the people who have been developing the prominence across the global arena. Moreover, this strategic integration has also enhanced the increased level of monitoring by the banks and has identified boost the overall effectiveness that is associated with the level of service providence (Alexander, 2004). The diverse decisions that have been initiated within the official market rates increases the prominence within the global edge and enhanced the level of prominence within the strategic integration of diverse policies. This could be identified to be illustrating a complex domain within the globe and helps in illustrating the complex domain that are associated with strategic progression within the system. However, for Metro Bank changing interest rates and other regulatory measures which has been taken up by the UK Financial Regulatory System has been creating a greater level of influence on its overall system of operation. Nevertheless, with the diverse mode of operations and enhancing the financial transactions Metro Bank is likely to have greater influence over the effectiveness of the system (Alexander, 2004). 3. Summary The overall attributes that has been available from the monitory policies of UK has been identified to enhance the overall system of the financial transactions taken place within the nation. This could be identified altering the overall needs of the business and maintaining the financial transparency that is prominent within the system. Bedsides, this assist in improving the diverse needs that are associated with the maintenance of banks and its dynamic financial products, the metro bank have been developing is prominence within the UK market and integrating diversified needs for increasing the overall system of operations. The economic system and the financial policies that are evident within the social system likely to lift the social system and enhancing the transparency associated with the operations of financial sectors at large. References Alexander, K., 2004. Corporate Governance and Banking Regulation. Working Paper 17, pp. 1-51. Bank for International Settlements, 2012. Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies. Monetary and Economic Department, pp. 1-65. Broadbent, B. & et. al., 2012. Productivity and the Allocation of Resources. Durham Business School. [Online] Available at: http://www.bankofengland.co.uk/publications/Documents/speeches/2012/speech599.pdf [Accessed June 02, 2015]. Duguid, M., 2005. Microeconomics, the UK Economy and the International Economy. Learning and Teaching Scotland, pp. 1-206. King, M., 1994. Monetary Policy in the UK. Fiscal Studies Vol. 15, No. 3, pp. 109−128. Lynch, R., 2007. Corporate Strategy. Pearson Education India. 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Case Study Metro Bank. Breaking the Mould but Breaking the Malaise? [Online] Available at: https://www.temenos.com/documents/mi/cs/cs-metro-breaking%20the%20mould.pdf [Accessed June 02, 2015]. T Morphy, 2015. Stakeholder Analysis. How to analyse Stakeholders. [Online] Available at: http://stakeholdermap.com/stakeholder-analysis.html [Accessed June 02, 2015]. Tyler, G., 2015. Financial Services: Contribution to the UK Economy. Economic Policy and Statistics Section, pp. 1-7. Read More