Strategic Management of Jamuna Bank Ltd.
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- 2. INSTRUCTED BY LECTURER, IUBAT Presented By IUBAT – Friends Cafe 2 Rabeya Akter Pinky 16104008 Nazmun Nahar Rumi 16104007 MD. Saidur Rahman Said 16204006 MD. Yanus Miah 13304033 MGT 504 - Strategic Management
- 3. Strategic Management of 3 1. Company Overview 2. Core values 3. Company vision/mission analysis 4. Environment analysis 5. Selection of strategies 6. Implement strategies: Management issues 7. Implement strategies: Marketing 8. Recommendation
- 4. Jamuna Bank Ltd. 4 Jamuna Bank Limited (JBL) is a private commercial bank of Bangladesh established on 3rd June 2001. The Bank started its operation by a group of successful local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking who constantly focuses on understanding and anticipating customers' needs.
- 5. CORE VALUES Customer Focus Integrity Quality Teamwork Respect for the individual Harmony Fairness Commitment Respectable Citizenship Business Ethics Unique Culture 5
- 7. Step 1: Develop Vision & Mission Statement7 VISION STATEMENT To become a leading banking institution and to play a significant role in the development of the country. MISSION STATEMENT The Bank is committed to satisfy diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional workforce.
- 8. Step 2: Environment Analysis: External Environment 8 •The company has been able to adhere to the policies given by government to make sure that the company will be able to conduct business operations successfully and effectively. 1. Political Aspects •Being the one of the largest and competitive industry in terms of banking and finance, Jamuna Bank Ltd., is said to have a stable and successful economic stability. 2. Economic Aspect •JAMUNA BANK LTD. tries harder to make sure that each society is given equal chances to take advantage of the resources given by the organization. 3. Social Aspect •JAMUNA BANK LTD. adopts different IT/IS systems and used internet to reach their customer all over the world and to know the latest trends in the global business. 4. Technological Aspect
- 9. 9 Industry Environment: Porters Five Forces Model: 1. Bargaining power of Customer: Buyer information availability (HIGH) Buyer price sensitivity (HIGH) Availability of existing substitutes products (HIGH) 2. Bargaining power of Supplier Bank capital supplier (Low) Credit Card supplier (Medium) Internal Environment
- 10. 10 3. Threats of new entrants Many financial even non-financial organizations can easily entry to bank industry; they can also integrate with other organizations. The switching cost of this behavior become smaller than before and the advantage is larger than before also. 4. Threats of substitute product Real-time money transfer, real-time payment, currency exchange and insurance, they through Internet provide a high quality but low service charge service. Customer will due to convenience, low cost and high efficiency change the service to other organization. 5. The intensity of competitive rivalry Competition between banks become violent and the maturity of financial market in the country is very high, so the competitiveness force bank to find other profit continuously. Internal Environment
- 11. Competitive advantage 11 • Jamuna Bank Ltd. has already created a brand image in the customers mind and that makes them different among others. Differentiation and sustaining the brand image • Since their inception, they believe to ensure the quality services over there. It made them quality leader in Banking industry. Quality leadership • JBL plays in the market with a many numbers of branches therefore the brand value and service quality of JBL allow JBL to run flourishing business so far. In terms of expansion of branches and area coverage • JBL net is one of the unique features of JBL where customers can get real- time account information by using it anytime and anywhere. In terms of products and services
- 12. Step 3: Establish Long-term objectives To establish relationship banking and improve service through development of strategies marketing plan To remain one of the best banks in Bangladesh in terms of profitability and assets quality To maintain adequate control systems and transparency in procedure. To develop and retain a quality work force through an effective Human Resources Management Systems To ensure an adequate rate of return on investment To keep risk position at an acceptable range To maintain adequate liquidity to meet maturing obligation and commitments To ensure optimum utilization of all available resources To introduced fully automated systems through integration of information technology 12
- 13. Step 4: Generate, Evaluate and Select Strategies Manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund. Strive for customer satisfaction through quality control and delivery of timely service Review and update policies, procedures and practices to enhance the ability to extend better service to customers. Train and develop all employees and provide them adequate resources so that customers’ needs can be reasonably addressed. Diversify portfolio both in the retail and wholesale market. Promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion. Cultivate a working environment that fosters positive motivation for improved performance. Identify customer's credit and other banking related needs and monitor their perception towards our performance in meeting those requirements. Increase direct contact with customers in order to cultivate a closer relationship between the bank and the customer. 13
- 14. Step 5: Implement Strategies- Management Issues 14 To achieve constant growth in business JBL is persuading a “managing for growth” strategy. Their “strategic human resource management” strategy involves developing comprehensive values among their employees. The “strategic management” initiative was launched to ensure competitive advantage from each business unit. The intensity of strategy formulation is primarily focused on Private Banking, Personal Financial Services, Commercial Banking and Corporate and Investment Banking.
- 15. Step 6: Implement Strategies- Marketing Strategy 15 Marketing Communication mix of Jamuna Bank Ltd In the TV news, Jamuna Bank sponsors for reminding the customers. They acts on a variety of promotional elements to progress their products and services through intermediaries directly to the customers. They think that Personal Selling is effective in creating brand image, conveying information, creating awareness and can generate a behavioral response. In the newspapers, Jamuna Bank gives ads for their social marketing activities. Like, AIDS, Drug Addiction, to help poor children, to save the ACID victim etc.
- 16. 16 Development of Promotion Strategy of Jamuna Bank Ltd. Setting communication objectives. Deciding the role of each of the components that make up the promotion program. Determining the promotion budget. Selecting the strategy for each promotion component. Integrating and implementing the promotion component strategies. Evaluating the effectiveness of the integrated promotion strategies. Marketing Strategy
- 17. 17 Promotional activities of Jamuna Bank Ltd. through CSR Healthcare service. Scholarship program for brilliant poor student. Education Promotion Scheme (Interest free loan). Helping people affected by natural calamities. Helping people in slum areas. Donation to educational institutions to setup computer lab. By doing these kinds of program, Jamuna Bank remind people to come and join with them. Marketing Strategy
- 18. Recommendations 18 They are more concerned with corporate customer group. In addition to that, they can also give some special service and facilities to other customer groups as well. They should put special attention to reduce the coordination gap between front and back office. Many banks are earning revenue from the loan sector and they have number of loan categories (like- any purpose load is providing by Prime Bank). JBL can also introduce different types of loan facilities for their customers. They can plan further move to gain competitive advantage over the rivals . For example- lowering or changing interest rates in their services, improving features, implementing innovations in the service etc. Successful advertising involves products or services positively known by that section of the public most likely to purchase them. Therefore, Jamuna Bank should perform more advertisement.
- 19. Conclusion 19 It goes without saying that JBL has got a simplified and slow expansion strategy in Dhaka as well as in Bangladesh. The main reason behind such strategy is to ensure quality service to the customers and to maintain their brand image. The overall expansion strategy has been improved since its commencement and it is growing day by day. So we can understand the presence of JBL is Bangladesh would be long term orientated and they would serve the Bangladeshi people more extensively.
- 20. Do you have any question ? 20 Thank you for your kind attention