Answer to Question #239697 in Management for suvi

Question

1.1 Explain the strategic management process that Standard Bank needs to follow to remain

competitive and to gain more market share.

Answer 1

Strategic management is a business culture that organizations develop in outdoing their competitors. It entails continuous evaluation, monitoring, planning, and analysis. It is a complex process covering formulating the overall vision of the organization for future and present objectives and goals.

To remain competitive in the market, Standard Bank needs to undergo business reorganization, channel optimization, procedural cost evaluation, evaluation of staff efficiency and productivity, and adaptation to technology and automation. Business realignment should focus on the bank moving to cost-effective areas and exit business lines with low margins. Even though costs and investment are on the rise in the short term, efficiency and long-term profits will occur in the future. Through channel optimization, the bank will realize how it relates to clients and develop a cost-effective strategy to standard bank customer base. Additionally, the bank should reduce procedural costs of each transaction or activities like account opening cost or cost of a transaction. The reason is to lower the ratio of cost-to-value and increase bank efficiency. Staff efficiency and productivity can receive a boost through automation. This will be attained by using decision models and rules that are automated and embracing technology to reduce employee time in serving clients.