Bendigo Bank - Corporate Strategic Plan for Entrepreneurship - Example

Running Head: Corporate Strategic Plan for Entrepreneurship Name Course Lecturer Date Table of Contents Table of Contents 1 Introduction 1 Results and direction 3 Service Delivery 3 Human Resources 4 The Organization of the Strategic Plan 4 Vision for Bendigo bank 7 Strengths 9 Threats 10 Strategic Action Plan Focus by Year 11 The potential of Bendigo Bank of becoming an International Company 12 Human Resources 13 Leadership and Management Style 13 Environmental Sustainability 14 Entrepreneurs in developing markets 14 Risk Management 15 Global intelligence 15 Global Opportunity 15 Global Corruption 16 Exit strategies 16 References 17 Introduction This is the corporate strategic plan for Bendigo bank for entrepreneurship. It gives the bank an excellent way for development. This plan is developed with wide participation of the company. The plan reflects on the mission, vision, core operating values and other operating systems fundamental to the company’s approach to its work. There were several meetings which set the stage for the work of drawing up the plan during which the company's strategic course was explained. The staffs lend their support in coordinating the planning course and provided essential support and scrutiny to complete this plan. On the other hand, the management aided the planning process using a version of the Drucker tool of assessment. An environmental scrutiny was conducted which included a review of the company's internal operating systems and responses from several stakeholders as well as an evaluation of demographic and market information affecting the company. The environmental scrutiny and company evaluation helped to assess both the challenges and opportunities it is likely to face over the next couple of years and set the framework for the choices reflected in this strategic plan. Executive summery History Bendigo Bank was established in 1858 in Australia. It helps customers, families and businesses achieve their financial goals and build successful communities. This is because successful community is a great place to conduct a successful business. Results and direction The strategic course and goals contained in this plan are the responses of the bank; it’s perception of what its customer’s value most about the company and current opportunities and shortcomings for offering high quality services. The period of this strategic plan will be five years in which the company will evaluate and deepen its approach to work. Concurrently, it will be in charge in working with a greater array of client resources and explore other areas actively in engaging customers more frequently. With a fresh point of view on its mission and bearing in mind what it does well, the market environment in which it operates, the bank will pursue the following strategic direction: 1. Deepen investments in the private sector. 2. Integrate economic stimulus programs and improvements within the bank. 3. Effectiveness and management of results initiatives in a professional manner. 4. Focus on the rural and agency banking 5. Efforts to increase efficiency in retail section of the business by opening up more branches, at the same time have optimization model design for distribution Service Delivery The bank will offer model services, either directly or through open banking through its agency banking. Human Resources To build up a stable, highly qualified and motivated labour force that actively delivers the company's mission, vision and its core values at all times. Resource Development To be a pacesetter company that attracts increased numbers of customers and higher levels of business to raise the level of earnings. Thriving implementation of this strategic plan will result in quality services delivery, more potential customers welcomed in the bank and actively involved in financial services provision and a broader array of resources in rural and agency banking. The ultimate result Bendigo bank aspires to achieve is far beyond high quality services and products for all businesses and customers in the market. The Organization of the Strategic Plan Strategic planning means looking at where the management wants the company to be in the next couple of years and determining what course of action to take in order to get there. Bendigo bank needs the right strategies, structure, plans and controls in place to optimize the return on its investments. Meaningful concepts and systematic framework for entrepreneurship is one step in having a corporate strategic plan. These concepts are: Competitive advantage, Competitive forces, Outsourcing opportunities, Sustainability, Core competencies and SWOT analysis (strengths, weaknesses, opportunities, and threats). Considering the access to capital, The market dynamics, Key relationships in the market, The market trends. It is also prudent to consider the sector in the industry in which the business is operating. Sustained profitability and growth of real economic value are the desired outcomes. Shareholder value is the key measure of the sustained profitability and the economic growth. How will the value of the company best be maximized should as well be considered. Considering how return and risk affects each other will maximize the profitability as (Ireland pg 49-63) asserts. First, it presents the most comprehensive compilation of the plan and its component parts. It is a documentation of the strategic planning process and the decisions reached. Second, it is a reference direct for strategic planning. At the commencement of each part there is a definition of the component parts. There are adequate descriptions with additional helpful information about how the bank can use the information in the plan. In future, the bank may choose to produce a summary version of the plan for sharing with its customers, shareholder partners and other stakeholders. Moreover, the company’s risk outline is outlined in its capital structure, the industry, services and products, and stage of development and the foundation of most strategies in company's assessment of return and risk rationale for prioritizing and allocating its resources. In this corporate strategic plan, the conventional accounting has been used to measure its performance. This is because it reflects true economic performance and lead to good strategic choices in the end. Return on invested capital is a good measure of economic performance as well as (Kuratko pg 60-71) states. This strategic plan has three basic areas that will guide in its execution, the method to go in implementing it, the resources available to aid its implementation and measurements of the results. This is followed by the company alignment, that is, the design required to deliver these initiatives. This includes the elements of structure, people, leadership and culture of the company. Finally the indicators of performance to goal attainment are set out clearly to show the achievement of the strategic plan. It has clearly defined and provided the milestone to assess the progress. All this are in line with the agreement on a complete set of clear, consistent, coordinated, medium and long term decisions and coherent about the banks method of competition and scope. They are also linked and aligned to budgets, incentives and measurements of the financial results. This strategic plan is simple as strategic plans are not supposed to be difficult in order to be understood by everybody. It is also intuitive and have centered on the major themes by being straightforward in working with major trend, avoiding head-on competition with the other competitors, new approach to old ways, cost and revenue advantage, key connections and capital constrains hence are understood by everybody in the company. The strategies have been developed carefully in well planned choices with effects like the course of revenue and development, product and market extension, cost reduction efforts and other associated resource allocation decisions being taken in to account. The closer in opportunities have as well been considered, they are very important in exploring new markets. When the new opportunities arise the management company should jump on it but must not forget the current short term issues that keep the company running in the interim. This bold strategic move is really a set of good closer in choices that will evolve together over time as the plan is implemented. This should motivate Bendigo bank to adopt these strategies. Vision for Bendigo bank To have a greater acceptance and full inclusion by all stakeholders, Bendigo bank must improved services and support delivery and offer more prevalent technology that will add to their quality for their customers and shareholders inclusively. At the same time, population growth and higher incidences of multiple financial failures will make banking remain extensive and varied. While significant strides will have been made in customers’ acceptance of its products and services, there will be an on- going push for community inclusion and participation. Finally, shareholders will control more of the resources and decisions about who provides them with help and support. They will have many options from which to choose. The bank brings together all kinds of capital and services for its customers, to support full long-term customer inclusion and participation. The Bendigo bank plays a key leadership role in enlightening businesspersons and the public. The bank therefore encourages and supports individuals, organizations and companies with banking issues to fulfill their financial needs. It has a robust and innovative revenue earning resources from private sources including individuals businesses and corporations. This will make it to support fully businesses which require injection of capital by ay of disbursing loans and mortgages. The banks mission Achieving full financial banking services and customized products The bank introduces a new sharper mission statement in this strategic plan. This statement reflects two dimensions that define the purposes of the organization and its intended contributions to improving the customer’s financial management who are served through its efforts. These proportions are: Achieving means ensuring that individuals and corporations with financial needs have the right combination of services and opportunity to reach their financial potential. Full participation will mean the opportunity for the company to actively participate with its workers and other valued relationships in creating financial products custom made for its. The following core operating values will influence the culture and public image of Bendigo bank as an effective customer oriented bank serving a wide variety of individuals and corporations. Caring approach, display compassionate support and apprehension for its customers Openness, by giving solutions that meet the needs and preferences of customers through direct service and products Show of respect, honour the choice of customers while encouraging them to take control over their own finances and help to shape them on what is important to each customer. Offering of individualized support, to understand that customer needs vary significantly and change over time; to seek to understand the individual customer and co-create the right supports for each customer’s fulfillment. Diversity, to understand that people comes from different part of all races, ethnicities and religions; will seek to assist as many people as our financial resources support. Integrity and Accountability –the highest level of integrity in administrative and service delivery; tie these activities directly to our mission, and maintain and report our records accurately. Possession of skills, the company aims for excellent, high quality, approaches that people with banking and financial needs count on to be there. Financial sustainability, the Bendigo bank believes its work as financial provider and service provider will be needed for many years into the future. Therefore, it will strive to deliver on its mission with thoughtful strategic choices that ensure it has sufficient financial resources. The following is a brief summary of opportunities, threats, strengths and weaknesses highlighted. They represent a small portion of the complete environmental scan attached to this strategic plan. Strengths The banks major strength is involvement of latest technologies to support its core banking operations. Other key strengths include the banks demonstrated ability to provide high quality, necessary services, which provide solution to customers in their financial needs. Members of staff will continue to be committed, and the services and programs offered will be monitored for quality. When there will be a challenge, the bank will meet it through innovation of its products. The bank has an excellent reputation and is looked to by other financial providers as a leader. Weaknesses Some suppose that the banks major growth has led to Challenges to human resources, Complexity in supervision, Insufficient structures for coordination among the departments, Inconsistent clerical and administrative support There is a perceived need for better management practices and Use of technology Issues with the employment plan were highlighted, Tracking of operations, Matching people to jobs, Training, and Finding more opportunities Opportunities The opportunities considered most important included: Opportunities around the globe for the bank are on the rise as the management is keenly focusing on global expansion in next few years. Bendigo bank has a number of financial expertises to counter the emerging industrial and economic growth in Australia. It is enabled social media which has increased its awareness and better reach to its customers. The bank has good opportunities in up country and small cities areas as the industrial growth is taking very rapidly. Rural and agency banking are huge opportunities to advantage of. Threats Bendigo bank faces stiff competition in new market developments from both public and private banking institutions. Competition provided by the international banks in Australia is so intense. The international banks like the Barclays bank the standard chartered bank and others provide stiff competition. The bank has to focus on improving the customer satisfaction in order to sustain the loyal customers. Recent scams and fraudulent activities of bank have gained mistrust from customers and investors alike. Strategic Action Plan Focus by Year This is a precision of the anticipated major focus of actions by goal in addition to the on-going operations for Bendigo bank in each year of the strategic plan. Year Action 1 – Shift from planning to implementation of the strategic plans Setting up new administration as well as reorganizing the staff Coming up with new special positions for the implementation of plans Evaluating and updating departmental plans to align with the strategic plans Developing company resources according to the strategic plans 2 - Focus on delivery of services Setting up of new directorial team to oversee its implementation of services plans Strengthening of the integration program by the program directors Hiring of more employees to reinforce training and placement Development of market wide interest by opening up to the external market Customer support reorganization for increased capacity to meet their needs accordingly Updating the staff training programs Management to set up some best practices for the Bendigo bank. 3 - Continuation of the services delivery focus Formalization of the professional systems for staff growth Expansion of the internship programs Setting up of customer access support specialist positions by the directorial team Meeting the banks customers through events organized by the bank itself Implementation of new staff committee structure to align with the plans Commencement of the employee service plan implementation 4 - Focus on goals of the bank Development of expanded action plans by the directorial team Maintaining the developments and stabilizing all new activities Setting initiatives to for expanding the markets Offering of employment services while attracting and expanding the number of customers Continue to focus on staff development including the management and supervisory programs 5 - Taking a broad look at the lessons learned in terms of success and the challenges implementing the new activities and initiatives Correction of the mistakes made in the implementation of the strategic plan Planning for another strategic plan. The potential of Bendigo Bank of becoming an International Company Since the establishment of Bendigo Bank in 1858 in Australia, it has created a huge customer base through efficient services provision in the country. Through its competent human resource capacity the bank has become a leader in financial service provision especially in identifying customer needs and customer inclusion in affairs of the bank. The bank receives absolute support from all its stakeholders and a competitive Board of Directors, which enhances its growth and sustainability. The Corporate Strategic Plan is intended to lead the bank to greater achievements upon full implementation. Guided by its mission for realizing full financial banking services and products for all, Bendigo Bank beliefs it has the potential of going international. There are various issues which the bank has been able to handle for instance Human resources, leadership and management, environmental sustainability, management of risk among others making is potential for international operations. Human Resources One of the reasons why Bendigo Bank has been able to remain competitive and prosper in the dynamic financial services industry is because of its competent and dynamic pool of human resources. The bank is optimistic that its human resources can adapt to different working environments when well supported. Operating in international markets requires a better understanding and adapting to various cultural orientations (Rowden, 2001, p.261). The managers of Bendigo bank have travelled globally and this places the bank in a better position to operate internationally. They therefore, have the skills to understand and become accustomed to different cultures and to compete favorably in the international market. Leadership and Management Style Bendigo Bank has built its reputation based of quality leadership and management of affairs of the bank in Australia for a considerably long time. The Chief Executive Officer encourages his managers to exercise good leadership skill and management style when dealing with all the stakeholders. As a result, the managers apply more of participatory leadership style and encourage customer inclusion in matters that affect them (Gunnigle et al, 2007, p.8). The relationship between management and staff is healthy and employees are motivated to achieve the objectives of the bank. With such leadership and management drive, the bank can do well when if grows to international level. Environmental Sustainability The bank is has been recognized in the country for its ability to maintain the qualities valued in the physical environment. In order to prevent environmental damage, the management of Bendigo Bank has developed full sustainability program that is aimed at preventing threats to the environment from happening and reversing the damage done. Environmental sustainability is not only a domestic issue, but has also global relevance. The bank gives donations and contributions to community environmental groups to conduct practical projects such as re-vegetation, and builds support for government policies related to environment conservation. This qualifies the bank to go international since the issue of environmental sustainability is highly recommended globally (Sutton, 2004, p.4). Entrepreneurs in developing markets Most of the staff at Bendigo Bank has proven entrepreneurial skills demonstrated in the development of new products that are aligned to the needs of different customers in various markets. Through intensive market research, the product development team is able to identify the existing gaps in the market and design appropriate products to fill the gap. These entrepreneurial skills can be helpful in the international markets due to extreme competition. Risk Management Investing in foreign market is normally a risky venture that requires proper assessment and management by the bank. Although some risk factors like political, economic and legal may be beyond control by the bank, the bank can comfortably manage the financial requirements. The bank has built good reputation with major financial institutions in Australia that can offer financial support in case of financial difficulties. Global intelligence As noted earlier, most managers at the bank are sent on international missions and therefore understand how financial services are conducted on international markets. This is an advantage to the bank since it can use the mangers’ knowledge in international affairs to extend its services to international markets. Global intelligence is very important when dealing with international markets since there are a lot of differences between countries that has to be harmonized to be able to survive globally. Global Opportunity Apart from having global knowledge, Bendigo Bank’s global opportunities are on the rise, increasing management desire for global expansion. Several products and services offered by the bank are as well demanded on international markets. Some of these products and services are not adequately met by the financial institutions in respective countries leaving their customers with much to be provided. This is an issue the bank and key stakeholders are discussing and plans to make a move in the near future. Global Corruption Bendigo Bank is a corruption free financial institution and this is known to all the staff members. One of their key values is integrity and all Bendigo fraternity is guided by this core value. The Bank has respect for quality services to its customers and provides opportunity to all members of public irrespective of social, economic and political affiliations. As a result, the bank attracts many sponsors who are interested in seeing the bank grow to prosperity. Also the bank been not been reported in global corruption, and its dealings with international bodies are conducted in a transparent manner. Global Law and Finance The bank has over the past years focused on adhering to the international law and finance requirements since it has the dream of going international. A part from the corporate codes of conducts that represents the bank, the bank has got interest in codes of conduct generated externally by international companies so as to promote harmonious relationship with such companies (Jackson, 2013, p.2). To be able to function internationally, the bank has adequate financial base which is a basic requirement to be met for any multinational. Exit strategies Since Bendigo Bank is not sure of the market certainty in various markets, it has established a well coordinated monitoring team in all its activities and always recommend exit in case it fails to achieve the intended objectives in particular markets. This is in consideration of the fact that there is high rate of failure in international dealings where the same technique of monitoring market conditions. References Gunnigle, Patrick, et al "Managing HR in multinational companies in Ireland: autonomy, coordination and control." (2007). Jackson, James K. "Codes of Conduct for Multinational Corporations: An Overview" (2013). Rowden, Robert W "Research Note: How a small business enters the international market." Thunderbird International Business Review 43.2 (2001): 257-268. Sutton, P "A perspective on environmental sustainability" Paper on the Victorian Commissioner for Environmental Sustainability (2004). Kuratko, D Duane I, and Jeffrey S Hornsby "Improving firm performance through entrepreneurial actions: Acordia's corporate entrepreneurship strategy" The Academy of Management Executive 15.4 (2001): 60-71. Ireland, R Duane, et al "Integrating entrepreneurship and strategic management actions to create firm wealth" The Academy of Management Executive 15.1 (2001): 49-63. Read More