Business environment is really dynamic and it is influential to the strategic selling and corporate scheme of all the organisations operating in the concern universe. It is important for organisations to invent selling schemes and corporate schemes after analysing the external environment efficaciously and expeditiously. Any error or ignorance in analysis of external environment can do the organisation to confront terrible effects. ( Porter, What is Strategy, 1996 )
Organizations ever seek to derive a sustainable competitory advantage in the market topographic point by planing effectual and efficient selling and corporate schemes. Efficient and effectual selling schemes enable the organisation to work their nucleus competences and capablenesss to derive short-run and long-run selling topographic point success. Efficient marketing scheme of an organisation is ever integrated with the corporate scheme of the organisation. Corporate scheme is the larger image of the organisation while strategic selling is at the Strategic Business Units ( SBUs ) degrees of the organisation. ( Porter, The five competitory forces that shape scheme, 2008 )
In this paper, the writer is assumed to be working for an organisation which is a banking corporation runing in UK. It is assumed that the organisation is “ Standard Chartered Bank ” that is reexamining its selling scheme and wants to follow a more “ consumer oriented ” selling scheme. The writer is the member of a squad of operational directors who are playing a cardinal function in inventing a new selling scheme of Standard Chartered that is the oldest bank of UK ( 150 Old ages ) . The instance of Standard Charted will be studied to understand the strategic selling constructs and to invent an effectual scheme. The Paper is divided in three chief parts. The first portion highlights the usage of marketing techniques to determine growing chances in a market and study on the impact for the organisation of current alterations in the selling environment including other functional countries of a selling scheme. The 2nd portion includes an analysis to place the current strengths and failings in a selling scheme. The 3rd portion analyzes that the organisation could react to the alterations and cardinal emerging subjects in a selling scheme. It besides plans how to utilize selling scheme options in a market and make appropriate strategic selling aims for a market.
Growth and current selling scheme of the organisation
In order to analyze and determine the growing chances for Standard Chartered Bank UK, the most effectual manner is to analyze the external environmental factors. The most effectual tool for analyzing the external environmental factors is political, economic, political and societal ( PEST ) analysis that discusses the most influential factors for the selling scheme of an organisation. The Pest Analysis for UK banking industry can assist the operational directors ‘ squad to determine growing chances in the UK industry and it is as follows:
If we rationally analyse the political conditions of United Kingdom so the political status in the external macro environment are:
The UK economic system is an unfastened economic system which allows and appreciates foreign/local direct investings. The UK comprises the market based / free market economic system with less governmental control and intercessions. The authorities plays its function as a facilitator instead than influencer in the concern industries and markets.
UK authorities supports and appreciates competition among different organisations to better their efficiency and to do wider choice/lower monetary values available to consumers. In this manner, the authorities supports both the organisations and rivals.
There is a political stableness in the state which provides chances for foreign direct investings. ( The National Archives, 2010 )
Standard Chartered has actively undergone growing through enlargement in other parts of the Europe for crushing the competition. It is an effectual and efficient scheme to turn under stable political conditions of United Kingdom.
Economy is enduring from a recession due to planetary fiscal crisis. It is a menace for the fiscal sector because standard chartered is runing in this sector.
Unemployment has increased.
Dickering power and disposable income of consumers has decreased due to rising prices and unemployment. It is menace for consumer banking.
Production degree has decreased and the authorities is sing revising its revenue enhancement policies due to economic recession. This is a menace for Wholesale banking sector
But, economic system has started retrieving now bit by bit.
Standard Chartered is confronting some troubles due to the economic and fiscal recession in UK. ( BBC News, 2010 )
Consumer ‘s focal point is now switching towards standardized goods and services are low monetary values. Consumers are now more focussed towards nest eggs instead than disbursement. It is an chance for standard chartered bank.
Consumers are more rational and sophisticated now. Banking services are needed to be really direct and personal.
Brand loyal clients are now going trade name whippers due to low disposable incomes.
The demographics of UK has changed dramatically with the increased figure of younger coevals and presence of different cultural groups such as Asiatic, and Americans across the universe which have low incomes and low buying powers. There is an chance for standard chartered bank to establish products/services targeted towards childs with low incomes and low nest eggs. ( Walayat, Britains Population Growth and Ageing Demographics Impact on UK House Prices, 2010 )
The authorities supports viing engineerings in the UK and appreciates invention and technological developments.
High Research support for technological development is being made UK authorities in different sectors.
To back up unfastened economic system to increase competition for supplying better services to consumers, the authorities plays the function at a accelerator in technological developments throughout the Europe.
Standard Chartered has invested to a great extent in advanced engineering to better its banking operations. ( DTI, 2003 )
Interpretations of the above environmental factors to determine growing chances for Standard Chartered and its current scheme
Economic conditions and competition is a menace for the banking corporations of UK. But, Standard Chartered is concentrating expeditiously on different sorts of banking services such as consumer banking, sweeping banking, retail banking and corporate banking which clearly reveals efficient portfolio direction of Standard Chartered bank. Standard Chartered bank is prosecuting a distinction scheme relative to rivals by offering different merchandises and services to clients and it is really following assortment based positioning which was described by Michael Porter ( 1996, What is Strategy ) to distinguish and to vie with the rivals. ( Standard Chartered Official Website, 2008 )
Peoples now need nest eggs because of the economic recession. Besides the authorities disbursement in engineering has increased. Peoples are more focussed on standard goods and services at low monetary values and market has now become disconnected and saturated. Therefore, Standard Chartered is offering standard goods and services to clients by accessing them efficaciously and expeditiously. Standard Chartered has employed high terminal engineering to incorporate its banking operations and relationship selling such as online banking, ATMs, and besides it has employed latest engineering in subdivision banking. It is trying to make clients with standard services at low monetary values with entree based placement as defined by Michael Porter ( 1996, What is Strategy ) and it is making it by making clients online, personally and through societal media selling. It is besides of import to observe that engineering and information has now become a competitory advantage for organisations. The same is the secret for Standard Chartered sustainable competitory advantage in the market place that is engineering and information. It is the effectual and expeditiously scheme by Standard Chartered to make clients innovatively and expeditiously by doing effectual usage of technological conditions to work societal conditions of UK.
But, there is besides a menace for Standard Chartered in using distinction scheme because the societal, economic and technological conditions extremely appreciates a cost advantage instead than a distinction advantage in UK because of the low disposable incomes of consumers and low buying power. Cost advantage may let criterion chartered to offer banking services to clients at comparatively low monetary values to aim more clients than rivals.
How to turn?
Standard Chartered must use a cost advantage alternatively of distinction advantage because competitory advantages are now imitable, clients have low disposable incomes, economic recession and low buying power and it is the clip to see a incursion pricing scheme to capture every bit much market portion as Standard Chartered can to crush the competition. Therefore, capturing market portion is the growing chance available for Standard Chartered. Besides, it is a “ client oriented ” selling scheme.
The state of affairs analysis or the SWOT analysis is an effectual tool for measuring the internal strengths and failings of Standard Chartered Bank to place the strengths and failings of selling scheme.
Standard Chartered is one of the oldest banking of UK. It has the first mover advantage in the banking industry of UK.
It has the international exposure and it has entree to international resources. It is able to derive location advantage by spread outing to a new geographical part. It is besides able to derive ownership advantage due to foreign direct investing support and free market economic system of UK.
Standard Chartered has sustained a assortment based and entree based placement which is hard for rivals to copy.
The bank has the skilled human capital
The bank has made technological investings and it is the engineering leader in banking sector.
Standard Chartered has failed to prolong a cost advantage. The PEST analysis extremely entreaties a cost advantage in the banking sector instead than holding a distinction advantage.
The current PEST analysis reveals that banking sector market can be succeeded if Standard Chartered additions a cost advantage alternatively of distinction advantage such as economic recession, low dickering power of clients, low disposable incomes and market impregnation etc.
The Standard Chartered can put in the development economic systems and can reap its major capital investing from UK to derive location and ownership advantage.
Low entry and issue barriers of Market
Rivals are efficient in imitation of competitory advantages
Customer edification and reason
Low disposable income of clients
Competitive force per unit areas
Recommendation and Suggestion for Standard Chartered
Introducing a new construct for Standard Chartered – “ Value ”
The basic intent of corporate scheme of an organisation is to maximise stockholders ‘ value and same is the instance of Standard Chartered UK. The most effectual manner to maximise stockholders ‘ value is to increase client value which will do increased gross revenues, profitableness and market portion. Customer value at this clip in UK is “ money ” . Therefore, value can be described as “ Value is the worth in pecuniary footings of the societal, economic, proficient and service benefits in exchange for the monetary value paid for the Standard Chartered Services ” . The monetary value of these banking services of Standard Chartered should be comparatively less than the viing merchandises and it should salvage for money for clients relative to rivals in footings of investing returns and involvements. It is possible merely if Standard Chartered focuses on cut downing overall costs at the organisational degree and supply concatenation degree. Supplier side is of import because dickering power of providers is low and standard chartered can negociate more with providers to convey its overall costs and in return provide services to its clients at low monetary value which will decidedly salvage money for them. It is besides attractive as clients have low buying power and low disposable incomes.
Positioning of Standard Chartered must be changed to “ be ” alternatively of distinction. Positioning can be defined as what clients perceive as advantages and disadvantages of our merchandises and services. The coveted placement for the trade name would be “ value ” as it provides value to clients by salvaging their money and increased worth in footings of economic, societal, proficient and service benefits relative to rivals.
It can be concluded from the above strategic selling scheme of Standard Chartered that environmental factors are extremely influential to the internal concern operations and selling scheme of an organisation. A successful effort to urge a new scheme for Standard Chartered Bank was recommended in this paper.