Presentation is loading. Please wait.

Presentation is loading. Please wait.

Strategic Choices in Banking

Published byBertha Roberts Modified over 6 years ago

Similar presentations

Presentation on theme: "Strategic Choices in Banking"— Presentation transcript:

1 Strategic Choices in Banking
Year One – Chief Retail Officer Perspective Dr. Robert L. Underwood

2 Executive Banking School Roadmap
GROWING Capability Confidence Courage YEAR THREE Chief Executive Officer Perspective YEAR ONE Chief Retail Officer Perspective YEAR TWO Chief Financial Officer Perspective

3 Executive Banking School Roadmap
GROWING Capability Confidence Courage YEAR THREE Chief Executive Officer Perspective YEAR ONE Chief Retail Officer Perspective YEAR TWO Chief Financial Officer Perspective

4 Year One – Chief Retail Officer Perspective Retail Strategy Curriculum
Leadership Communication Leading the Retail Line of Business via a Balanced Scorecard Discovering Customer Segments & Consumer Behaviors Successfully Communicating & Advertising in Retail Banking Developing and Pricing Profitable Bank Products Modernizing & Optimizing Delivery to Meet Customer Requirements Facing Ethical Dilemmas in Banking Applying Concepts Learned to Today’s Market Chief Retail Officer Perspective

5 Year One – Chief Retail Officer Perspective Retail Strategy Curriculum
Leadership Communication Leading the Retail Line of Business via a Balanced Scorecard Discovering Customer Segments & Consumer Behaviors Successfully Communicating & Advertising in Retail Banking Developing and Pricing Profitable Bank Products Modernizing & Optimizing Delivery to Meet Customer Requirements Facing Ethical Dilemmas in Banking Applying Concepts Learned to Today’s Market Chief Retail Officer Perspective

6 This Session’s Critical Topics
What is Strategy? Strategic Positioning/The Delivery of Value Types of Value The Discipline of Market Leaders Most Commmon Strategy Mistakes Strategic Decisions in Banking Porter’s Five Forces Macroenvironmental Factors

7 What is Strategy?

8 What is Strategy? Our Approach Today Recognition of variance in experience/ understanding among CBA students Begin with a broad understanding of strategy and narrow it down to a focus on banking Consider industry trends/issues, discuss strategic options

9 Ken Favaro, Senior Partner, Booz & Allen
What is Strategy? Corporate vs. Strategic Five Ken Favaro, Senior Partner, Booz & Allen

10 Starbucks Mission Statement & Values
What is Strategy? Starbucks Mission Statement & Values MISSION: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. VALUES: Creating a culture of warmth and belonging, where everyone is welcome. Acting with courage, challenging the status quo and finding new ways to grow our company and each other. Being present, connecting with transparency, dignity and respect. Delivering our very best in all we do, holding ourselves accountable for results.

11 BMW Mission Statement & Mercedes Value Statements
What is Strategy? BMW Mission Statement & Mercedes Value Statements BMW Mission Statement “The BMW Group is the world's leading provider of premium products and premium services for individual mobility.” Six values that "drive" Mercedes-Benz USA The audacity to reject compromise The instinct to protect what matters The commitment to honor a legacy The vision to consider every detail The foresight to take responsibility The ingenuity to outperform expectations

12 Real Substance of Strategy
What is Strategy? Real Substance of Strategy Making deliberate and decisive choices regarding resource allocation Where to play (businesses, markets, industries)? Positioning (competition) within those markets & industries? Value proposition? Target market? Capabilities essential to deliver the value proposition?

13 Strategic Positioning/Delivery of Value

14 Strategic Positioning/Delivery of Value
“Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value. The essence of strategy is choosing what NOT to do.” Harvard Professor, Michael Porter

15 Peter Drucker on Marketing Strategy
Strategic Positioning/Delivery of Value Peter Drucker on Marketing Strategy “Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer’s point of view… Business success is not determined by the producer but by the consumer.” Peter Drucker

16 Marketing Strategy – All About Value Proposition
Strategic Positioning/Delivery of Value Marketing Strategy – All About Value Proposition Determining the needs and wants of target markets and delivering the desired satisfactions (value) more effectively and efficiently than competitors Distinctive competitive advantage

17 Types of Value

18 Superior Customer Service Dependability/Assurance Authenticity Status
Types of Value Types of Value Propositions – Strategic Competitive Positioning Low Price Price/Quality Ratio Superior Customer Service Dependability/Assurance Authenticity Status Self Concept Enhancement Superior Product Quality

19 Types of Value (continued)
Product/Service Innovation Availability/Choice Functional Performance Location Convenience Social Responsibility Timeliness

20 The Discipline of Market Leaders

21 "The Discipline of Market Leaders" by Treacy and Wiersema

22 Operational Excellence Amazon, UPS
The Discipline of Market Leaders "The Discipline of Market Leaders" by Treacy and Wiersema Operational Excellence Amazon, UPS Product Leadership Apple, BMW Customer Intimacy Nordstrom, Publix

23 Strategy and Value Delivery – Essential Capabilities
The Discipline of Market Leaders Strategy and Value Delivery – Essential Capabilities Costco Warby Parker

24 Common Strategy Mistakes

25 Confusing operational effectiveness with strategy
Common Strategy Mistakes Understanding Michael Porter: The Essential Guide to Competition & Strategy by Joan Margetta Competing to be the best, going down the same path as everybody else and thinking that somehow you can achieve better results Confusing operational effectiveness with strategy Failing to recognize the importance of the supply side as well as the demand side Overestimating strengths

26 Getting the definition of the business or the geographic scope wrong
Common Strategy Mistakes Understanding Michael Porter: The Essential Guide to Competition & Strategy by Joan Margetta Getting the definition of the business or the geographic scope wrong Not having a strategy at all

27 Strategic Decisions in Banking

28 Segue to Banking: Strategic Decisions
Strategic Decisions in Banking Segue to Banking: Strategic Decisions Financial products and services? Customer segmentation (Who do we target?) Demographic, Geographic Psychographic, Behavioral Product and service delivery? Brand communication?

29 Strategic Decisions in Banking
Strategic Differentiation: A Magnified Challenge for the Banking Industry “In a 2012 study by global brand consultant, Clear, financial brands ranked as some of the lowest when rated along statements such as ‘a brand I feel attracted to’ and ‘a brand that matters to me.’ The data also confirmed what we all intuitively know about banking brands: they are virtually identical in consumers’ eyes. Every bank in the study was seen as being highly ‘organized’, ‘serious’ and ‘sensible.’ It’s rare to find a bank that stands for much else.” Simon Clough, Clear

30 Strategic Decisions in Banking
Strategic Differentiation: A Magnified Challenge for the Banking Industry “…the brutal truth is that most banks lack strategic capital – the combination of brand, innovation, culture and unique ways of doing business that will ensure future relevancy.” Jim Burson , BAI.org (July 2014)

31 Porter’s Five Forces

32 Applied to the Banking Industry
Porter’s Five Forces Applied to the Banking Industry

33 Macroenvironmental Factors

34 Current Factors Impacting the Banking Industry
Macroenvironmental Factors Current Factors Impacting the Banking Industry

35 Questions?

36 Year One – Chief Retail Officer Perspective Retail Strategy Curriculum
Leadership Communication Leading the Retail Line of Business via a Balanced Scorecard Discovering Customer Segments & Consumer Behaviors Successfully Communicating & Advertising in Retail Banking Developing and Pricing Profitable Bank Products Modernizing & Optimizing Delivery to Meet Customer Requirements Facing Ethical Dilemmas in Banking Applying Concepts Learned to Today’s Market Chief Retail Officer Perspective

37 Executive Banking School Roadmap
GROWING Capability Confidence Courage YEAR THREE Chief Executive Officer Perspective YEAR ONE Chief Retail Officer Perspective YEAR TWO Chief Financial Officer Perspective

Download ppt "Strategic Choices in Banking"

Similar presentations

PART 04.

PART 04.
Principles of Marketing

Principles of Marketing
Creating Competitive Advantage

Creating Competitive Advantage
Learning Goals Learn how to understand competitors as well as customers via competitor analysis. Understand the fundamentals of competitive marketing strategies.

Learning Goals Learn how to understand competitors as well as customers via competitor analysis. Understand the fundamentals of competitive marketing strategies.
Objectives Learn how to understand competitors as well as customers via competitor analysis. Learn the fundamentals of competitive marketing strategies.

Objectives Learn how to understand competitors as well as customers via competitor analysis. Learn the fundamentals of competitive marketing strategies.
Strategic Planning Goals Build Commitment Challenge the organization Improve overall organizational performance Create opportunities for managers and board.

Strategic Planning Goals Build Commitment Challenge the organization Improve overall organizational performance Create opportunities for managers and board.
Total Quality, Competitive Advantage, and Strategic Management

Total Quality, Competitive Advantage, and Strategic Management
 Business Level Strategies are the course of action adopted by an organization for each of its businesses separately, to serve identified customer groups.

 Business Level Strategies are the course of action adopted by an organization for each of its businesses separately, to serve identified customer groups.
Marketing Management BUS-309

Marketing Management BUS-309
Strategic Planning in the Banking Industry Dr. Robert L. Underwood Associate Professor Department of Business & Accounting Furman University July 20, 2015.

Strategic Planning in the Banking Industry Dr. Robert L. Underwood Associate Professor Department of Business & Accounting Furman University July 20, 2015.
Strategic Planning and the Marketing Management Process.

Strategic Planning and the Marketing Management Process.
Copyright © 2011 The McGraw-Hill Companies All Rights ReservedMcGraw-Hill/Irwin Chapter 1 Strategic Planning and the Marketing Management Process.

Copyright © 2011 The McGraw-Hill Companies All Rights ReservedMcGraw-Hill/Irwin Chapter 1 Strategic Planning and the Marketing Management Process.
2.1 Perspectives of Competitive Advantage Managing Strategically – formulating and implementing strategies that allow an organization to develop and maintain.

2.1 Perspectives of Competitive Advantage Managing Strategically – formulating and implementing strategies that allow an organization to develop and maintain.
Chapter 18- slide 1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eighteen Creating Competitive Advantage.

Chapter 18- slide 1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eighteen Creating Competitive Advantage.
Creating Competitive Advantage

Creating Competitive Advantage
Marketing Strategy MKT 460

Marketing Strategy MKT 460
MARKETING MANAGEMENT 12 th edition 2 Developing Marketing Strategies and Plans KotlerKeller.

MARKETING MANAGEMENT 12 th edition 2 Developing Marketing Strategies and Plans KotlerKeller.
Chapter 18- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eighteen Creating Competitive Advantage.

Chapter 18- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eighteen Creating Competitive Advantage.
STRATEGIC MANAGEMENT ACCOUNTING The Balanced Scoreboard Companies must mobilize and deploy intangible assets to create and sustain competitive advantage.

STRATEGIC MANAGEMENT ACCOUNTING The Balanced Scoreboard Companies must mobilize and deploy intangible assets to create and sustain competitive advantage.
Strategic Planning and the Marketing Management Process © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Marketing Management,

Strategic Planning and the Marketing Management Process © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Marketing Management,

Similar presentations

Ads by Google