please asUsing the information in the case study as well as by conducting additional research, analyse the remote/macro environment of Capitec. Banking on success: Gerrie FourieAt the start of 2018, Capitec Bank and its CEO Gerrie Fourie were riding high on a wave of success.In 17 years of existence, the South African bank had racked up a trove of accolades, being namedthe best bank in the world by international banking advisory group Lafferty two years in a row andplaced in the top 100 companies in the world by The Sunday Times. Capitec's outspokencommitment to customer satisfaction and its simplification of clients' banking experience appearedto place the bank in an unshakable position. But then, without warning, the company was thrust tothe brink of disaster. That January, the bank came under a vicious attack by a shadowy short-sellingfirm known as Viceroy, which released a report accusing Capitec of "reckless lending" in an apparentattempt to turn a profit on its own sales of Capitec shares. Capitec's share value plummeted by 25%a savage blow to a company that had so carefully cultivated the public's trust. Fortunately, it wasthat trust that shielded Capitec from the assault when a corps of credible allies rallied to the bank'sdefense. The South African Reserve Bank denounced Viceroy's report as "reckless" and "not actingin the public interest nor in the interest of financial stability in South Africa"."I think it was a significant achievement for us to go through an attack by a short-seller and then tomake certain that the confidence from clients, media, analysts and investors was still there, and tobe supported by the Reserve Bank and the Treasury," says Gerrie, who describes this experience asone of the "most trying" during his tenure at Capitec's helm. Capitec's nimble escape from the jawsof a malicious predator has made the company stronger, launching a period of growth, expansionand innovation that has carried the company to new heights. "We've really taken off in the last couple of months," Gerrie says. "We acquired more than a millionclients, so I think that is a big tribute to the brand and the client service that we offer."In the year up to February 2019, Capitec boasted a client base growth of 15%, up to a total of 11.4million clients, with 127,000 newcomers per month, plus 19% growth in earnings per share. "If youlook at South Africa, where the economy is really under pressure, I think to be able to grow at 19%is an incredible achievement," Gerrie says. Today, Capitec faces more predictable challenges, suchas competition from upstart entrants into the banking market, particularly those with a focus ondigital banking. To stay ahead of the pack, the company has deployed a strategy that combines thebank's longstanding values with modern insights. "With new entrants coming into the market, weneed a combination of a very strong digital component - a digital banking platform where you canwork with the client - as well as a very strong branch infrastructure and the ability to communicatewith our clients to help them bank better," Gerrie explains. "We're still opening branches while inSouth Africa, in general, they're closing." Every decision that goes into the design of Capitec'sbranches, many of which serve remote, rural communities, is guided by the bank's slogan: 'Simplicityis the ultimate sophistication'. Banking with Capitec is further simplified the fact that the bankoffers only a single personal banking product to all its customers, regardless of their income - theGlobal One account - which includes a flat and affordable fee structure for a variety of transactions."A great focus for us has been removing the friction from the client's life. We are constantly on thelookout for areas of friction, so we can make it easier and more affordable for them," Gerrie says.Ensuring that a staff of 14,000 people are all committed to eliminating friction and serving the needsof each particular client has been no small feat, but Gerrie says Capitec's success in this departmenthas been facilitated by his recent decision to formally define the company's culture. "We operatedfor 18 years before we actually defined our culture, but when we started reflecting on it, we realisedthat it's not about results such as driving the share price. Instead, it's all about delivering on theclient's needs," he says. Gerrie cultivates this culture through a leadership philosophy he calls"understanding the why". "Most theories about leadership are needlessly complicated. Ultimately,to keep people inspired, all you have to do is make sure they understand the reason behind whatthey're doing. The moment a team member understands why - what is expected of them when itmust be done, and how it fits into the functioning of a large organisation - they will do it withpassion," Gerrie says. "Passion comes from the understanding that you're really making adifference." For Gerrie, fine-tuning systems and improving people's experiences is a never-endingproject.

Question

please asUsing the information in the case study as well as by conducting additional research, analyse the remote/macro environment of Capitec. Banking on success: Gerrie FourieAt the start of 2018, Capitec Bank and its CEO Gerrie Fourie were riding high on a wave of success.In 17 years of existence, the South African bank had racked up a trove of accolades, being namedthe best bank in the world by international banking advisory group Lafferty two years in a row andplaced in the top 100 companies in the world by The Sunday Times. Capitec's outspokencommitment to customer satisfaction and its simplification of clients' banking experience appearedto place the bank in an unshakable position. But then, without warning, the company was thrust tothe brink of disaster. That January, the bank came under a vicious attack by a shadowy short-sellingfirm known as Viceroy, which released a report accusing Capitec of &#34;reckless lending&#34; in an apparentattempt to turn a profit on its own sales of Capitec shares. Capitec's share value plummeted by 25%a savage blow to a company that had so carefully cultivated the public's trust. Fortunately, it wasthat trust that shielded Capitec from the assault when a corps of credible allies rallied to the bank'sdefense. The South African Reserve Bank denounced Viceroy's report as &#34;reckless&#34; and &#34;not actingin the public interest nor in the interest of financial stability in South Africa&#34;.&#34;I think it was a significant achievement for us to go through an attack by a short-seller and then tomake certain that the confidence from clients, media, analysts and investors was still there, and tobe supported by the Reserve Bank and the Treasury,&#34; says Gerrie, who describes this experience asone of the &#34;most trying&#34; during his tenure at Capitec's helm. Capitec's nimble escape from the jawsof a malicious predator has made the company stronger, launching a period of growth, expansionand innovation that has carried the company to new heights. &#34;We've really taken off in the last couple of months,&#34; Gerrie says. &#34;We acquired more than a millionclients, so I think that is a big tribute to the brand and the client service that we offer.&#34;In the year up to February 2019, Capitec boasted a client base growth of 15%, up to a total of 11.4million clients, with 127,000 newcomers per month, plus 19% growth in earnings per share. &#34;If youlook at South Africa, where the economy is really under pressure, I think to be able to grow at 19%is an incredible achievement,&#34; Gerrie says. Today, Capitec faces more predictable challenges, suchas competition from upstart entrants into the banking market, particularly those with a focus ondigital banking. To stay ahead of the pack, the company has deployed a strategy that combines thebank's longstanding values with modern insights. &#34;With new entrants coming into the market, weneed a combination of a very strong digital component - a digital banking platform where you canwork with the client - as well as a very strong branch infrastructure and the ability to communicatewith our clients to help them bank better,&#34; Gerrie explains. &#34;We're still opening branches while inSouth Africa, in general, they're closing.&#34; Every decision that goes into the design of Capitec'sbranches, many of which serve remote, rural communities, is guided by the bank's slogan: 'Simplicityis the ultimate sophistication'. Banking with Capitec is further simplified the fact that the bankoffers only a single personal banking product to all its customers, regardless of their income - theGlobal One account - which includes a flat and affordable fee structure for a variety of transactions.&#34;A great focus for us has been removing the friction from the client's life. We are constantly on thelookout for areas of friction, so we can make it easier and more affordable for them,&#34; Gerrie says.Ensuring that a staff of 14,000 people are all committed to eliminating friction and serving the needsof each particular client has been no small feat, but Gerrie says Capitec's success in this departmenthas been facilitated by his recent decision to formally define the company's culture. &#34;We operatedfor 18 years before we actually defined our culture, but when we started reflecting on it, we realisedthat it's not about results such as driving the share price. Instead, it's all about delivering on theclient's needs,&#34; he says. Gerrie cultivates this culture through a leadership philosophy he calls&#34;understanding the why&#34;. &#34;Most theories about leadership are needlessly complicated. Ultimately,to keep people inspired, all you have to do is make sure they understand the reason behind whatthey're doing. The moment a team member understands why - what is expected of them when itmust be done, and how it fits into the functioning of a large organisation - they will do it withpassion,&#34; Gerrie says. &#34;Passion comes from the understanding that you're really making adifference.&#34; For Gerrie, fine-tuning systems and improving people's experiences is a never-endingproject.

Accepted Answer

The case of Capitec Bank highlights the company's journey through a challenging period and its…