What Are the Pros and Cons of Hsbc’s “Managing for Growth” Strategy?

The company likewise has already employed various strategies in order to maintain the high growth rate of the company. However these strategies is soon to reach its capacity to ensure growth. Based on the case as well, what seems to be lacking in the strategies that the company employed before is marketing, control of costs, and

Advantages of Programs being randomly assigned to locations- It would have given those location whom were really struggling a chance to be profitable and improve morale. In addition, you cannot measure a Managers effectiveness if you don’t have them

forces employees to focus even more on their self-interest. Now when presented with work, they

Given the Commonwealth Bank Group’s franchise position, the organisation aims to capture the opportunity to generate growth domestically and outside of Australia by identifying and meeting more of the needs of its customers.

The Scanlon plan created problems within the company and questions had to be formulated and put into place to be addressed before any major decisions could be made. Although the Scanlon plan was a good plan, it was not a “one size” fits all plan. Changes needed to be made and what type of changes had to be addressed. Some of the other difficulties facing the company was, no

It was a strategy to centralize the management which resulted in ignorance of local factors of the global market. As a result they lost a huge market share and suffered to remain in the competition.

CEO Johnson’s strategy was poor also. He did not do a test market and see how all of the drastic changes would go over. He just dove head first in with what he wanted to do, and failed. Not having a

RBC’s strategy of pleasing everyone, by fitting in with their needs or expectations is not sustainable over the long-run. Sustainable competitive advantage happens once a firm has awestruck a strong market niche in which a differentiated set of products and services serve a select client sector grater. RBC’s strategy of serving all niches cannot be successful in the long-run. RBC is providing a range of products or services in one place by leveraging its acquisitions to become a totally integrated financial

While it was foreseen that the company would initially take financial setbacks because of the reorganization, it was not believed that the financial risks would be drastic. However, the impending report that Mr. Elesser has to present to the board will detail a net income that will be nearly 26 million dollars in the red for 2004 (see exhibit 2)3. The blunt force restructuring met resistance on numerous fronts. First of all, the various components of the company did not operate under the same uniformed leadership objectives. Each division was set up to look out for their own interests and markets. When the restructuring plan that focused on a more centralized management process, many of the things that worked for one division did not necessarily work for other divisions of the company. This left some divisions at a severe disadvantage. Another obstacle that worked against the restructuring was the employee unions in which the company had to deal. The unions were not on board with the various downsizing and restructuring methods. In addition, the company had to deal with a couple of different unions which posed a problem with negotiating tactics. Benefit costs were also a significant investment that did not hold up well under the auspice of restructuring.

CIBC has focused its core business on retail and business banking, wealth management, and whole sale banking. They have shown a proven track record of providing there customers with financial services and advice through a group upwards of 1100 branches worldwide. Strategies CIBC has portrayed is to continually find new ways to enhance the experience of the client and to stimulate safe revenue growth. CIBC has put emphases on creating deep meaningful relationships with all clients, constantly trying new ways to improve service and sales prospects and to create relationships with new clients while retaining existing clients for a long period of time (CIBC).

Discuss the strategies that Mountain Bank should implement to achieve a competitive advantage in the marketplace.

Weaknesses: Negative Image, low credibility, poor management decision, to big of a organization to make noticeable mistakes

“We aim to become a super regional bank. This involves growing our presence in the Asia pacific region and sourcing 25-30% of earnings from our Asia Pacific Europe and America division by 2017, while also being very focused on growth in our core domestic businesses in Australia and New Zealand.”

HSBC is one of the Largest Banking and Financial Services organisations in the world, shares in HSBC holdings plc are held by over 220,000 share holders in 121 countries. HSBC provides a comprehensive range of financial services to more than 100 million customers through four customers an global businesses: Personal Financial Services; Commercial banking: Global banking and Markets: private banking.

This strategy allowed them to reach economies of scale in their new company partly by their shared activities. This is what gave their strategy real value. They wanted room to improve the companies. They did not attempt to take over the biggest companies, like many corporations have done. They typically aimed for companies in a segmented market, allowing them to consolidate the market. This gave this strategy the rarity for a competitive advantage. Their strategy has become costly to imitate because of their history and success with implementing their DBS in their corporate strategies.