BUSINESS

ASSIGNMENT FRONT SHEET

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Certification: I certify that the whole of this work is the result of my individual effort and that all quotations from books, periodicals etc. have been acknowledged.

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Programme : Masters MBA Year/Level : Stage 1Academic Year : 2010/11 Semester : 1Module title : Marketing Management Assignment no. : 2Module code: BUS724 Word guide: 1500Percentage Weighting of this assignment for the module: 50%Issue date : October 2010 Return date : Lecturer : B Jones/ Alexis McLean Second marker :

Notes for students :

1. Hard copy of assignment should be stapled in the top left corner and submitted to the Business School.2. Electronic copy of assignment should be submitted through the Turnitin software. 3. Students should ensure that they comply with Glyndwr University’s plagiarism policy.4. Students should make correct use of the Harvard referencing method.

Learning Outcomes Tested in this Assignment :

1 Demonstrate a critical understanding for the main ideas, characteristics of contemporary marketing and apply these principals in the context of practical management problems

2 Demonstrate critical understanding of how an organisation’s overall resources can be directed to meeting requirements in the light of changing business and organisational environments

Overall Comment :

Mark (%)

Glyndwr School of Business Feedback on Assignment

Student Number/ Name

Academic Year: 2010/11

Programme Title MBA Level Stage 1 / Taught

Module Code BUS724 Module Title Marketing Management

Assignment Title/Number:

2Indicative Mark /

Grade:

Would students please note that achievement of the learning outcomes for this assessment is demonstrated against the assessment criteria shown below (which are not necessarily weighted equally). Your assignment is marked as a whole and your grade is more than a summation of your performance as rated below. All marks/grades remain indicative until they have been considered and confirmed by the Assessment Board

Assessment CriteriaUnder 40%

40-49% 50-59% 60-69% 70%+

1

Demonstrates ability to critically analyse international marketing strategies in relation to standardisation and

adaptation- (for question-1 only) (40%)

2

Demonstrates understanding of relevant aspects of services marketing (special characteristics of services

markets and services marketing mix) – (for question -2 only) (40%)

3Ability to interpret the business issues with the help of relevant theories (50%)

5Ability to construct coherent arguments fully supported with referencing throughout (10%)

Name of Tutor Date

Strengths of this assignment are:

Suggestions to improve this assignment are:

Grading & Marking Criteria80 + Outstanding work of exceptional merit which is original in content or approach allowing a

novel perspective, going beyond what is available in the literature.70 – 79 Work which is clearly articulated and well substantiated, based on extensive reading, and

demonstrates an authoritative grasp of the concepts, methodology and content appropriate to the subject and to the assessed task. There is clear evidence of originality and insight and an ability to sustain an argument, to think analytically and/or critically and to synthesise material effectively.

60 – 69 Work which demonstrates a very good level of understanding of the concepts, methodology and content appropriate to the subject and which draws on a wide range of properly referenced sources. There is clear evidence of critical judgement in selecting, ordering and analysing content. The work demonstrates some ability to synthesise material and to construct responses which reveal insight and may offer some occasional originality.

50 – 59 Work derived from a solid basis of reading and which demonstrates a grasp of relevant material and key concepts and an ability to structure and organise arguments. The performance may be rather routine but the work will be accurate, clearly written and include some critical analysis and a modest degree of original insight. There will be no serious omissions or irrelevancies.

40 - 49 Competent and suitably organised work which demonstrates a reasonable level of understanding with minimal analysis and interpretation. It covers the basic subject matter adequately but is too descriptive and insufficiently analytical. There may be some misunderstanding of key concepts and limitations in the ability to select relevant material so that the work may be flawed by some omissions and irrelevancies. There will be some evidence of appropriate reading but it may be too narrowly focussed.

30 - 39 Work lacks evidence of knowledge relevant to the topic and/or significantly misuses terminology. There is either no evidence of literature being consulted or irrelevant to the assignment set. Inaccurate or inappropriate choice of theory. Unsubstantiated/invalid conclusions based on anecdote and generalisation only, or no conclusions at all. Lacks critical thought, analysis and reference to theory.

0 - 29 Insufficient level of understanding and knowledge base unacceptably weak. No evidence of logical structure and poorly presented. Referencing is unsystematic or absent.

Additional Comments from Second Marker or External (if required)

Glyndŵr University

Going international in banking: standardisation or adaptation?

Since the fall of communism in 1989, the Polish banking sector has seen huge changes. Before 1989, the sector was very tightly regulated and all the major banks were state-owned, serving different geographic and other niches with little or no overt competition between them. The levels of service were low and customers did not expect much more than basic products such as current accounts or savings accounts. Many individuals even did not have any bank accounts. They mainly received and made payments in cash and investment opportunities were very limited.

After 1989 that began to change. Under economic reform programmes, the sector was deregulated and opened up to domestic competition, mergers and foreign investment. Many foreign banks saw Poland as an attractive market with a lot of potential and began to invest. Thus by the end of 2000, Western banks had taken over seven out of the 10 major Polish banks, or at least had major shareholdings in them, and had come to dominate approximately 70% of all bank assets of the Polish market.

Internationalising banks need to make crucial decisions about their marketing strategies. They have to decide whether it is better to adapt their strategies to the polish market environment, whether a standardised strategy appears more likely to succeed, or whether elements of their strategies require a certain degree of adaptation while others could be standardised. Banks come to contrary conclusions but nevertheless operate very successfully. This case study therefore, looks at two specific foreign banks and the rationale behind their initial entry to the Polish market in terms of marketing decisions.

The American bank St. Lawrence Bank started from scratch but opted for a two-step entry strategy when it first entered the Polish market. The first step was to offer services for corporate clients and the second step was to target private clients. The first step was undertaken in 1991 when the first multinational companies came to Poland and St. Lawrence Bank felt that it would have to follow its customers. At that time, St. Lawrence Bank saw no potential for establishing a retail banking business. By 1997, the situation had changed due to Poland’s rapid economic growth, and the emergence of more affluent and increasingly demanding private customer segments. In 1997 St. Lawrence Bank thus launched its first retail product, namely the credit card, and has expanded its product range gradually since then.

St. Lawrence Bank has a notable sense of standardisation and strives to utilise its experiences drawn from other markets. With the help of dedicated product portfolio for different world regions, the American bank offers fairly standardised products around the world. St. Lawrence Bank is also striving for a consistent image across markets. For this purpose, the bank uses the same brand name, the same font and the same logo across the world. The overall promotion concepts are designed centrally before they are adapted to the local markets, acknowledging, for example, local socio-cultural peculiarities such as the

importance of the Catholic Church in Poland. St. Lawrence Bank employs the national branches of the same advertising agency worldwide. This enables it to benefit from the parent agency’s familiarity with St. Lawrence Bank’s promotion strategy and the national branch’s expertise on the national markets. The relatively small size of St. Lawrence Bank’s Polish operation forced the bank to adapt its distribution strategy, however. It also employs agents who distribute its products in Poland. The reason for this is that Poland is a comparatively under-banked and geographically large and diverse market which is difficult and expensive to cover with a comprehensive branch network. Worldwide, St. Lawrence Bank does not compete on price but on service. Prices are calculated using very similar models in all markets, although the price decisions are made locally since inflation, competition, interest rates and other macroeconomic factors differ across countries. Standardised profit margins only apply to multinational corporate clients.

Standardisation is considered a part of the corporate culture. This clearly impacts on the way of thinking and is even reflected by slightly minor aspects, such as the use of the English language or written communication. However, St. Lawrence Bank acknowledges the need for some degree of adaptation. Different approaches for different world regions have therefore been developed. For example, St. Lawrence Bank leaves it to local management to decide which retail product to introduce at what time. St. Lawrence Bank seeks economies of scale by means of standardisation, but cost reductions are not considered a main objective of the bank’s standardisation strategy.1

Questions:

1. Critically examine the views of the St. Lawrence Bank on the advantages and disadvantages of standardisation and adaptation.

2. How do you think generally that the international marketing of financial services products might differ from the international marketing of fast moving consumer goods (FMCG) such as toiletries and cold drinks

Please note that all questions carry equal marks.

1 Adapted from Principles of Marketing, 3rd edition by Brassington and Pettitt (the name of the bank involved has been disguised)