GOING EAST

Case Study

PMGT 728- International Project Management and Professional Responsibility

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 Agenda
1. Events that led to the developing of the project. Timeline

2. PESTEL analysis of the Western Europe countries.

3. Description of the industry and market of the project

4. Analysis of the strategic used by Raiffeisen.

5. Definition of the project and project’s localization.

6. Raiffeisen’s organizational structure and human resources systems

7. Case Study task.

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Timeline

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 PESTEL Analysis in 1986
Political Technological
The Eastern-Europe countries were ruled by The development of computers and hardware
communist regimes, financed and dominated was booming. The Eastern countries copied the
by the Soviet Union. Western designs due to the embargo from the
western economies to the Comecon.

Economic
Environmental *The economy was based in the exportation of
The environment wasn’t an important topic in soft goods to the Soviet Union in exchange of
the Eastern countries. No special regulations energy, oil, machinery, raw materials and
were created to protect the environment. The benefits.
Chernobyl explosion took place in this year *The countries had a stable growth economy
*Growth rates of labor productivity

Social
Legal
The traditional concept of family was
applied. High levels of industrialization in There were not regulations to protect workers
the capitals. High standards of living. or minorities. The government had complete
power to create, eliminate and change the law.

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 PESTEL Analysis in 1991
Political Technological
The Eastern countries migrated to a The open economy brought access to
democratic system. They declared the Western technologies.
independency and began the
integration to the rest of Europe.

Environmental Economic
There is a growing concern about the The economy was opened to the
pollution and the damaged caused by world. Western inversions and private
the communist era. Laws to protect capitalist business were invited to
the environment started to be created. invest.

Legal
Social
The Eastern countries were added to
Most of the countries experienced
European Union. From now on, the
lower standards of living, due to the
eastern countries had to adopt the
removal of the government subsidies.
regulations imposed by the EU.

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 Industry and Market
Banking Industry
Raiffeisen is considered one of the pioneers and leaders in the Eastern
European and a foreign bank with the biggest sales network in the
region, having around 12.7 million customers.

Corporate
Customers

Market
Private
customers

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 Strategic Analysis

Alignment with Political and

Economical Changes
International Vision.
New economies. Wholesale Banking
Treasury, Investment Banking, Foreign Business.
New Businesses.
04 03 02 01

Expansion and Acquisitions

Joint-Ventures
Central Bank Level
Market Exploration
Market Fast Expansion

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Raiffeisen Going East
The Austrian bank Raiffeisen International, a member of the RBZ
group, with a market capitalization of 16 billion euros in 2006, is
among the top 100 banks in the world.

Raiffeisen In 1991: The In 1999: The

In 1986: Raiffeisen Change in the
International was organization started organization’s
became a member portfolio of
established as a its way to expand its strategic focus was
of an international international
spin off of the RZB market to Central redefined and the
company that projects, by the
group,taking and Eastern Europe, second growth pillar
established the first acquisition of a
advantage of the in order to become a shifted from large
foreign bank in foreign bank , the
economic growth in leader in these corporations to small
Eastern Europe, in PriorBank of
the regions of CEE, regions as a foreign and medium sized
Hungary. Belarus.
SEE and CIS. bank. enterprises.

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Where did the project was developed?
Easy to change
colors, photos The move east started in
and Text.
Hungary

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Raiffeisen Organizational Structure

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Raiffeisen Organizational Structure

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 Human Resources Systems
Human Resource System
A Strong cultural mix : to value
The main
tasks of our HRM function are: rather than judge.
– recruitment;
– employee support and development;
34 RZB Group currently has over 66,600
employees from many different nationalities, an
– development and implementation of Group-wide HR standards sees itself as a multicultural group. We make a
reality of equal opportunities in our organization
cultivate staff mobility in our banking network
Training and development and advocate diversity in society.
… “development” means not just helping employees to rise
up the hierarchy, but also ensuring that they grow 4.1
personally and professionally.

• The Young Professional Potentials (YPP) provides

support for highly motivated employees aged 25–30.
• The Basic Leadership Programme and the Groupwide
Management Development Programme prepare

•
employees for future management roles.
Performance management: their personal goals are 85%
expected to contribute to fulfilling our corporate
objectives.

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Task
Apply the extended strategic management cycle to
Raiffeisen International’s Go East initiative.

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Source: Based on Kaplan and Norton (1996)
Raiffeisen’s Strategic Management Cycle

01 02
COMMUNICATING AND
03 05
TRANSLATE THE ALIGNING
VISION AND VISION BUSINESS PLANNING FEEDBACK AND
Objectives and measures LEARNING
that can be clearly
The management communicated to all units Developing an
cycle begins with and employees operational plan that Provides the organization
articulating the lays out the actions with an opportunity to
company’s strategy. Creating a Project Portfolio that will accomplish its verify its strategies
Management which attempts strategic objectives.
to align the projects under its
Raiffeisen’s top umbrella, in order meet the By the using of the Redefining the strategy: In
management set out goals of the organization. management processes 1999 Raiffeisen focused in
the strategic objective: This office is in charge to of project portfolio approaching to small and
to expand into Central create clear methodologies management, Raiffeisen medium enterprises, as
and Eastern Europe in and processes that the team aligned organizational well as private customers.
order to become the members must follow to strategy with resource Changes were made in the
ensure all the employees allocation and strategy portfolio of international
market leader in these
have clear understanding execution in the form of
regions as a foreign projects by acquiring
about the organization’s programs and projects.
bank. several foreign banks.
goals. 14
 References
Crane, K. (1986). The Soviet Economic Dilemma of Eastern Europe. London: SAGE.

Elgar, Edward (1994). Handbook of the History of European Banks. European Association for Banking History.

Köster, K. (2013). International project management. Santa Monica: RAND.

Norton, R. S. K. D. P. (2014, August 1). Mastering the Management System. Retrieved from
https://hbr.org/2008/01/mastering-the-management-system

Raiffesen International AG.

https://www.rbinternational.com/eBusiness/01_template1/829189266947841370-829188968716049154_829601505693631049_12484657615
99933003-1248465761599933003-NA-2-EN.html

Raiffesen Internation AG. Corporate Responsibility Report 2008.

https://www.rbinternational.com/eBusiness/services/resources/media/829189266947841370-829188968716049154_923778918747875269_9
23779208926603950-1258428092125387225-1-2-EN.pdf

Roy, S. (2007, May 1). Herbert Stepic: a rare breed of banker. Retrieved from
https://www.euromoney.com/article/b13227tpf2nqcm/herbert-stepic-a-rare-breed-of-banker

Toshkov, D. D. (2009). Between politics and administration compliance with Eu law in Central and Eastern Europe. S.l.: s.n.

Turnock, D. (2002). Environmental problems and policies in East Central Europe: A changing agenda. Geojournal, 485–486.

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Question?

Thank you

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